source:
  type: guide
  id: hud-4000-1-iii-g-homeownership-and-opportunity-for-people-everywhere-for-home
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Homeownership
    and Opportunity for People Everywhere for Homeowners (09/26/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Homeownership
    and Opportunity for People Everywhere for Homeowners (09/26/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-g-homeownership-and-opportunity-for-people-everywhere-for-home-full
  canonical_id: hud-4000-1-iii-g-homeownership-and-opportunity-for-people-everywhere-for-home-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — g. Homeownership
    and Opportunity for People Everywhere for Homeowners (09/26/2022)
  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 — g. Homeownership
      and Opportunity for People Everywhere for Homeowners (09/26/2022)
    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: 'g. Homeownership and Opportunity for People Everywhere for Homeowners
      (09/26/2022) The Housing and Economic Recovery Act of 2008 amends the National
      Housing Act to authorize the temporary Homeownership and Opportunity for People
      Everywhere (HOPE) for Homeowners Program (also referred to as the H4H Program).
      Under the program, a Borrower facing difficulty paying their Mortgage was eligible
      to refinance into an affordable FHA-insured Mortgage. The H4H Program was effective
      for endorsements on or after October 1, 2008, through September 30, 2011. i.
      HUD Contact Mortgagees should contact HUD’s Servicing Contractor for questions
      related to servicing or satisfaction of H4H Exit Premium Mortgages (EPM). ii.
      Annual Premium The Mortgagee must collect the annual premium at 0.75 percent
      of the Base Loan Amount. The Mortgagee must follow standard FHA guidelines for
      the cancellation of the annual premium. iii. Voluntary Termination of Mortgage
      Insurance The Borrower and Mortgagee may mutually request termination of mortgage
      insurance. The Borrower will not receive a refund of any Upfront Mortgage Insurance
      Premium (UFMIP) received by HUD and will remain obligated for the exit premium
      and appreciation Mortgages. iv. Sale and Payoff Upon sale or other disposition
      of the Property securing an H4H Mortgage, the Borrower must satisfy HUD’s equity
      interest, if not already satisfied through refinance. HUD is entitled to its
      respective percentage of the initial equity amount as stated in the EPM, even
      if there are no net proceeds or if net proceeds are negative. Upon receipt of
      a payoff request, HUD’s Servicing Contractor will calculate the payoff amount
      for its equity interest and issue a payoff demand to the Closing Agent. v. Refinancing
      HUD will permit the refinancing of an H4H Mortgage subject to the requirements
      established in this section. In the event of any refinance of the H4H Mortgage,
      the Borrower must pay to HUD its full equity interest as stated in the EPM.
      III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward
      Mortgages 3. Programs and Products - Homeownership and Opportunity for People
      Everywhere for Homeowners (09/26/2022) Handbook 4000.1 1359 Last Revised: 11/26/2025
      HUD will permit the refinancing into another conventional loan product no earlier
      than 12 months from the date of closing on the H4H Mortgage. The Borrower may
      refinance if: • the refinance results in a 30-year amortizing fixed rate Mortgage
      with a Principal and Interest (P&I) payment that is lower than the P&I payment
      due on the existing H4H Mortgage; • the proceeds from the refinance are sufficient
      to pay off the percent of initial equity due to HUD; and • the cash received
      by or on behalf of the Borrower is limited to the Borrower’s applicable percentage
      of initial equity created by the H4H Mortgage, as stated in the EPM, any earned
      equity the Borrower has accrued, and any appreciation. vi. Default and Loss
      Mitigation The Mortgagee may utilize HUD’s Loss Mitigation Program for H4H Mortgages,
      subject to the following special considerations. (A) Loan Modifications HUD
      will subordinate the EPM to the modification of an H4H Mortgage completed in
      accordance with HUD’s Loss Mitigation Program. (B) Partial Claim For a Partial
      Claim Note, HUD does not require subordination of the EPM. (C) Pre-Foreclosure
      Sale The Mortgagee must include the total dollar amount of the EPM in the total
      debt calculation for the negative equity ratio calculations. (D) Deed-in-Lieu
      HUD will accept a DIL subject to the EPM lien. vii. Exit Premium (A) Definition
      Initial equity is the lesser of: • the appraised value at the time of the H4H
      loan origination less the original principal balance on the H4H Mortgage; or
      • the outstanding amount due under all existing Mortgages less the original
      principal balance on the H4H Mortgage. III. SERVICING AND LOSS MITIGATION A.
      Title II Insured Housing Programs Forward Mortgages 3. Programs and Products
      - Homeownership and Opportunity for People Everywhere for Homeowners (09/26/2022)
      Handbook 4000.1 1360 Last Revised: 11/26/2025 (B) Standard In the event of refinance,
      sale, or other disposition, HUD is entitled to receive the following percentage
      of initial equity: Year % of equity to be paid to FHA During Year 1 100% of
      equity During Year 2 90% of equity During Year 3 80% of equity During Year 4
      70% of equity During Year 5 60% of equity After Year 5 50% of equity III. SERVICING
      AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages'
  judgment: false
