source:
  type: guide
  id: hud-4000-1-iii-3-programs-and-products-homeownership-and-opportunity-for-peop
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — 3. Programs and Products - Homeownership
    and Opportunity for People Everywhere for Homeowners (09/26/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — 3. Programs and Products -
    Homeownership and Opportunity for People Everywhere for Homeowners (09/26/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-3-programs-and-products-homeownership-and-opportunity-for-peop-full
  canonical_id: hud-4000-1-iii-3-programs-and-products-homeownership-and-opportunity-for-peop-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III
  description: "Programs and Products - Homeownership and Opportunity for People Everywhere for Homeowners:\
    \ 3. Programs and Products - Homeownership and Opportunity for People Everywhere for Homeowners \n\
    \ \ng. Homeownership and Opportunity for People Everywhere for Homeowners \nThe Housing and Economic\
    \ Recovery Act of 2008 amends the National Housing Act to \nauthorize the temporary Homeownership\
    \ and Opportun…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — 3. Programs and Products -
      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: "3. Programs and Products - Homeownership and Opportunity for People Everywhere for\
      \ Homeowners \n \ng. Homeownership and Opportunity for People Everywhere for Homeowners \nThe Housing\
      \ and Economic Recovery Act of 2008 amends the National Housing Act to \nauthorize the temporary\
      \ Homeownership and Opportunity for People Everywhere (HOPE) \nfor Homeowners Program (also referred\
      \ to as the H4H Program). Under the program, a \nBorrower facing difficulty paying their Mortgage\
      \ was eligible to refinance into an affordable \nFHA-insured Mortgage. The H4H Program was effective\
      \ for endorsements on or after \nOctober 1, 2008, through September 30, 2011. \ni. HUD Contact \n\
      Mortgagees should contact HUD’s Servicing Contractor for questions related to servicing \nor satisfaction\
      \ of H4H Exit Premium Mortgages (EPM). \nii. Annual Premium \nThe Mortgagee must collect the annual\
      \ premium at 0.75 percent of the Base Loan \nAmount. The Mortgagee must follow standard FHA guidelines\
      \ for the cancellation of the \nannual premium. \niii. Voluntary Termination of Mortgage Insurance\
      \ \nThe Borrower and Mortgagee may mutually request termination of mortgage insurance. \nThe Borrower\
      \ will not receive a refund of any Upfront Mortgage Insurance Premium \n(UFMIP) received by HUD\
      \ and will remain obligated for the exit premium and \nappreciation Mortgages. \niv. Sale and Payoff\
      \ \nUpon sale or other disposition of the Property securing an H4H Mortgage, the Borrower \nmust\
      \ satisfy HUD’s equity interest, if not already satisfied through refinance. HUD is \nentitled to\
      \ its respective percentage of the initial equity amount as stated in the EPM, \neven if there are\
      \ no net proceeds or if net proceeds are negative. \nUpon receipt of a payoff request, HUD’s Servicing\
      \ Contractor will calculate the payoff \namount for its equity interest and issue a payoff demand\
      \ to the Closing Agent. \nv. Refinancing \nHUD will permit the refinancing of an H4H Mortgage subject\
      \ to the requirements \nestablished in this section. In the event of any refinance of the H4H Mortgage,\
      \ the \nBorrower must pay to HUD its full equity interest as stated in the EPM. \n\n3. Programs\
      \ and Products - Homeownership and Opportunity for People Everywhere for Homeowners \n \nHUD will\
      \ permit the refinancing into another conventional loan product no earlier than \n12 months from\
      \ the date of closing on the H4H Mortgage. The Borrower may refinance \nif: \n• the refinance results\
      \ in a 30-year amortizing fixed rate Mortgage with a Principal \nand Interest (P&I) payment that\
      \ is lower than the P&I payment due on the \nexisting H4H Mortgage; \n• the proceeds from the refinance\
      \ are sufficient to pay off the percent of initial \nequity due to HUD; and \n• the cash received\
      \ by or on behalf of the Borrower is limited to the Borrower’s \napplicable percentage of initial\
      \ equity created by the H4H Mortgage, as stated in \nthe EPM, any earned equity the Borrower has\
      \ accrued, and any appreciation. \nvi. Default and Loss Mitigation \nThe Mortgagee may utilize HUD’s\
      \ Loss Mitigation Program for H4H Mortgages, subject \nto the following special considerations.\
      \ \n(A) Loan Modifications \nHUD will subordinate the EPM to the modification of an H4H Mortgage\
      \ completed \nin accordance with HUD’s Loss Mitigation Program. \n(B) Partial Claim \nFor a Partial\
      \ Claim Note, HUD does not require subordination of the EPM. \n(C) Pre-Foreclosure Sale \nThe Mortgagee\
      \ must include the total dollar amount of the EPM in the total debt \ncalculation for the negative\
      \ equity ratio calculations. \n(D) Deed-in-Lieu \nHUD will accept a DIL subject to the EPM lien.\
      \ \nvii. Exit Premium \nInitial equity is the lesser of: \n• the appraised value at the time of\
      \ the H4H loan origination less the original \nprincipal balance on the H4H Mortgage; or \n• the\
      \ outstanding amount due under all existing Mortgages less the original \nprincipal balance on the\
      \ H4H Mortgage. \n\n3. Programs and Products - Homeownership and Opportunity for People Everywhere\
      \ for Homeowners \n \nIn the event of refinance, sale, or other disposition, HUD is entitled to\
      \ receive the \nfollowing percentage of initial equity: \nYear \n% of equity to be paid to FHA \n\
      During Year 1 \n100% of equity \nDuring Year 2 \n90% of equity \nDuring Year 3 \n80% of equity \n\
      During Year 4 \n70% of equity \nDuring Year 5 \n60% of equity \nAfter Year 5 \n50% of equity"
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
