source:
  type: guide
  id: hud-4000-1-iii-e-section-222-mortgages
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — e. Section
    222 Mortgages (03/31/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — e. Section
    222 Mortgages (03/31/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-e-section-222-mortgages-full
  canonical_id: hud-4000-1-iii-e-section-222-mortgages-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — e. Section
    222 Mortgages (03/31/2022)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — e. Section
      222 Mortgages (03/31/2022)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'e. Section 222 Mortgages (03/31/2022) Authority for Mortgages
      insured under Section 222 of the National Housing Act was repealed on July 30,
      2008. The following policies apply for existing Section 222 Mortgages, for which
      Mortgage Insurance Premiums (MIP) are paid by the servicemember-Borrower’s branch
      of the military service until the servicemember’s eligibility is terminated.
      i. Requirements for Section 222 Mortgages (A) Military Branch Responsibility
      The military branch is responsible for payment of MIP on a Section 222 Mortgage
      when the Borrower is: • a certified servicemember at the time of application;
      and • the owner of the Property at the time of FHA endorsement. (B) Establishing
      Eligibility The servicemember-Borrower must submit the original and two copies
      of a written certification of a servicemember’s eligibility, issued by the servicemember’s
      commanding or personnel officer, with their application for mortgage insurance
      under Section 222. The respective service branch determines benefits eligibility.
      ii. Sale of a Property Covered by a Section 222 Mortgage When a servicemember-Borrower
      sells the mortgaged Property, the Mortgagee must complete a Mortgage Record
      Change in FHAC. (A) Sale of Mortgaged Property to Another Eligible Servicemember
      If a mortgaged Property is sold to another eligible servicemember who assumes
      the Section 222 Mortgage, the Mortgagee must request from the assumptor written
      certification from their service branch of their eligibility for a Section 222
      Mortgage. If the Mortgagee fails to provide this certification to HUD when requesting
      insurance, HUD will hold the Mortgagee, and not the service branch, responsible
      for payment of MIP. The Mortgagee should continue to collect premiums from the
      servicemember- Borrower and pay the premiums to FHA. (B) Collection of MIP from
      Servicemember Assumptor When a mortgaged Property is sold to another eligible
      servicemember who will assume the Section 222 Mortgage, the Mortgagee must continue
      to collect premiums from the assumptor until advised by FHA that the service
      branch will be responsible for future premiums. III. SERVICING AND LOSS MITIGATION
      A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products
      - Section 222 Mortgages (03/31/2022) Handbook 4000.1 1354 Last Revised: 11/26/2025
      If the Mortgagee has been paying the MIP as a result of prior termination of
      the service branch’s responsibility for payment of premiums, the Mortgagee must
      continue to collect premiums from the servicemember-Borrower and pay the premiums
      to FHA. iii. Mortgage Insurance Premium Payments upon Notice of Termination
      Under Section 222, HUD does not require the Mortgagee to collect MIP from the
      Borrower or to remit premiums to FHA until advised by FHA that the service branch
      will no longer pay the premiums. When FHA is notified that the mortgaged Property
      has been sold or that the servicemember has been discharged, retired, or has
      died, FHA will: • request confirmation from the service branch of the termination
      of MIP; and • notify the Mortgagee to begin collecting MIP from the servicemember-Borrower.
      iv. Continued Payment of Mortgage Insurance Premium by Service Branch When Servicemember
      Dies on Active Duty The service branch is responsible for determining continued
      eligibility of servicemember- Borrowers. If a servicemember-Borrower dies while
      on Active Duty and is survived by a spouse, the service branch will be responsible
      for the following: • continuing to pay MIP on the Mortgage until two years after
      the servicemember’s death or until the spouse disposes of the Property, whichever
      occurs first; • notifying FHA when eligibility terminates; and • paying MIP
      until confirmation of the termination is received by the FHA Comptroller. FHA
      will notify the Mortgagee of its responsibility for payment of the MIP. v. Loss
      Mitigation for Section 222 Mortgages The Mortgagee must evaluate all applicable
      Loss Mitigation Options for Section 222 Mortgages. III. SERVICING AND LOSS MITIGATION
      A. Title II Insured Housing Programs Forward Mortgages'
  judgment: false
