Find! FHA Experts

FHA Home Loan Information
Apply for a FHA Loan
FHA Mortgage Rates
What is an FHA Loan
FHA vs. Conventional
FHA loan limits
FHA Mortgage Insurance
Required Documentation
FHA Closing Costs
Purchase vs. Refinance
FHA Streamline Refinance
FHA Refinance Loan
FHA Cash Out Refinance
FHA Hybrid Arm's
Hope 4 Homeowners H4H
FHA Jumbo Loan Program
Reverse Mortgages
FHA Secure Program
203-K Rehab Loans
203-K Streamline Loans
Find a 203-k Consultant
FHA Kiddie Condo's
Officer next door
Teacher next door
MIP Refund explanation
FHA HUD homes
Home Buying Guides
Message Boards
Get the answers to all your 'bottom line' questions on our Mortgage Calculators Page.
Website Awards
Business Links
Link Exchange
FHA Mortgage Leads
About Us
Privacy Policy
Equal Housing Opportunity.
Equal Housing Opportunity Logo 
2692 Madison Rd. Suite N1 #249, Cincinnati, OH 45208 ---  Contact Us

Copyright © FHA Info 2001-2012
All Right Reserved


         FHA HOPE for Homeowners H4H           

Determining Eligibility Calculating the Maximum Mortgage
Consumer Protection & Disclosures Underwriting and Qualifying
Appraisals Documentation Requirements
Term & Rates of H4H Mortgages Prohibition Against Subordinate Financing
Mortgage Insurance Premiums Equity & Appreciation Sharing
  Extinguishment of Subordinate Liens

Equity and Appreciation Sharing


Shared Equity Mortgage

     As a condition of the H4H mortgage, the borrower must share with HUD a portion of the initial equity, which is defined as the difference between the appraised value at the time of H4H loan origination[1] and the original principal balance on the H4H mortgage.  The originating lender will prepare a Shared Equity note and mortgage (SEM). A dollar amount equaling the initial equity will be inserted in the SEM.  The SEM will be executed by the borrower and recorded with all other loan documents in second lien position

Example:  Appraised value is $200,000.  Maximum loan to value on a H4H mortgage is 90%, or $180,000.  The equity amount that would be stated in the SEM is $20,000.

Shared Appreciation  

As a condition of the H4H mortgage, the borrower must share with HUD 50 percent of any future property appreciation upon sale or disposition of the property.  Future appreciation is the difference between the gross proceeds from the sale or disposition of the property and the appraised value of the property at origination of the H4H mortgage, less allowable closing costs incurred in connection with the sale or disposition and a percentage of the value of any capital improvements to the home that increases the value of the property. 

The originating lender will prepare a Shared Appreciation note and mortgage (SAM) using the format attached as Exhibit E.  The SAM will be executed by the borrower and recorded in third lien position. The originating lender is responsible for ensuring that a SAM (and a SEM) complies with state law.


[1] The Act provides that, in the event of refinance, sale or other disposition, HUD receive the following percentage of initial equity:

   During Year 1            100% of equity is paid to FHA

During Year 2            90% of equity is paid to FHA

During Year 3            80% of equity is paid to FHA

During Year 4            70% of equity is paid to FHA

During Year 5            60% of equity is paid to FHA

After Year 5              50% of equity is paid to FHA




How to Qualify
Understanding fha loan credit guidelines
Credit Guidelines
fha loan income guidelinesIncome Guidelines
overcome credit problems to get approved for a fha loanOvercoming Credit Problems
FHA loan case studies

Case Studies

FHA loan underwriting

What are compensating factors ?

How much money do you need for a fha home loan

How much money do I need?

Where can you get Free down payment moneyWhere to get down payment money