HUD 92915 Hope for Homeowners Consumer Disclosure and Certificatio

HOPE for Homeowners Consumer Disclosure and Certification Form
FHA’s HOPE for Homeowners Program:

U.S. Department of Housing and
Urban Development
Office of Housing
Federal Housing Commissioner
OMB Approval No. -----(Exp. -------)

Understanding of Key Loan Restrictions

Loans made under the FHA’s HOPE for Homeowners Program have some special
restrictions. If you refinance your home through this program:
1) You must share equity and future appreciation as described below.
2) You cannot take out a second mortgage, home equity loan, or home equity line of
credit for the first five years you have your new loan, except under certain circumstances
for emergency repairs.
3) You will pay an upfront mortgage insurance premium of 3% and a 1.5% annual
mortgage insurance premium on the current principal balance of the new mortgage. The
annual premium will be included in your monthly payments.
If you refinance your home through this program you will not owe any payments, fees,
penalties or other debt on your existing mortgage(s).
Equity and Appreciation Sharing Requirements
 You agree to share both the initial equity created at the beginning of this mortgage and any
future appreciation in the value of your home with FHA. Initial equity is the difference
between the appraised value of the home at the time of the new FHA loan, or the total debt
secured by your home if that is less, and the original balance on your FHA mortgage.
Appreciation is the growth, if any, in the appraised value of the home between the time you
take out the FHA mortgage and the time you sell your home.
 You will share the newly created equity with FHA, if you sell or refinance your home, as
follows:
During year 1
During year 2
During year 3
During year 4
During year 5
After year 5

100% of the initial equity is paid to FHA
90% of the initial equity is paid to FHA
80% of the initial equity is paid to FHA
70% of the initial equity is paid to FHA
60% of the initial equity is paid to FHA
50% of the initial equity is paid to FHA

 When you sell your home, you will also share with FHA one half (50%) of any appreciation
created since the time you took out this loan.
 For an example of how this works, see the “Example of How Equity and Appreciation Are
Shared.”
I/we certify that we have read the above restrictions. If I/we are offered and accept a loan under
the FHA’s HOPE for Homeowners Program, I/we understand that I/we will be agreeing to be
bound by these restrictions on the new loan for as long as we hold that loan.
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FHA’s HOPE for Homeowners Program:

U.S. Department of Housing and
Urban Development
Office of Housing
Federal Housing Commissioner
OMB Approval No. -----(Exp. -------)

Certifications for Application

To apply for a loan under the HOPE for Homeowners Program, you must certify that the
following statements are true. There are serious penalties if you provide false information.
I/we certify that:
 I/we have not intentionally defaulted on my/our mortgage or any other debt. (“Intentionally
defaulted” means I/we had readily available funds, at the time payment on the mortgage or
other debt was due, that could have paid the mortgage or other debt without undue hardship.)
 I/we have not been convicted of fraud under federal or state law in the past 10 years. I/we
agree that FHA may perform routine background checks, including automated searches of
federal, state and county data bases, to confirm that I/we have not been convicted of fraud.
 I/we have not knowingly, or willfully and with actual knowledge, furnished material false
information for the purpose of obtaining my/our existing mortgage(s).
I/we understand that:
 If I/we misrepresent anything in this statement or any other documentation I/we provide for
Program eligibility, and I/we refinance through this program, I/we will be liable to repay the
Federal Housing Administration any direct financial benefit I/we gain from the reduction of
debt on the existing mortgage(s).
 If I/we make any willful false statement in this certification or any other documentation I/we
provide for Program eligibility, I/we may be punished with fines or imprisonment of up to 5
years, or both, under section 1001 of title 18, United States Code, and I/we also may be
subject to civil and/or administrative penalties and sanctions.
Signature & Date
X_______________________________

___________________

X_______________________________

___________________

The information collection requirements contained in this document have been submitted to the Office of
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and are pending
an OMB control number. In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a
person is not required to respond to, a collection of information unless the collection displays a currently valid OMB
control number.

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HOPE for Homeowners
Example of How Equity and Appreciation Are Shared
This is an example of how the unique equity and appreciation sharing elements of this program work.
Keep in mind that this is only one example, and your actual experience will depend on many things,
including how much your home increases or decreases in value. Additional examples and details about
how the equity and appreciation in your home is calculated can be found at www.hud.gov.

1. Let’s say you have no equity in your home and
your home has an appraised value at the time you
receive your FHA mortgage of…………………...
2. And your new FHA mortgage is 90% of this,
or……......................................................................
3. This means the initial equity is the difference
between 1 and 2, or………………………………..

$200,000.
$180,000.
$20,000.

In this example, you and the FHA share this $20,000 when you sell your home or refinance your loan.
Here’s how that $20,000 would be split:
If you sell or refinance:

During Year 1
During Year 2
During Year 3
During Year 4
During Year 5
After Year 5

FHA receives 100%, or
FHA receives 90%, or
FHA receives 80%, or
FHA receives 70%, or
FHA receives 60%, or
FHA receives 50%, or

$20,000
$18,000
$16,000
$14,000
$12,000
$10,000

You receive 0%, or
You receive 10%, or
You receive 20%, or
You receive 30%, or
You receive 40%, or
You receive 50%, or

$0
$2,000
$4,000
$6,000
$8,000
$10,000

In addition to this equity sharing, you will have to share any future home price appreciation with the
FHA. This means that, if your home has gone up in value between the time you receive your FHA
mortgage and the time of your home sale (or other disposition), you will share the amount of this increase
with the FHA (less closing costs and a portion of any improvements you have made). This is a 50/50 split
that does not change over time. For example if 1:

1. The value of your home when you take out this
loan is…………………………………………….
2. After some years, you decide to sell. Now the
home is worth……………………………………
3. That means the appreciation is the difference
between 1 and 2, or………………………………

$200,000
$250,000
$50,000

In this example, you would keep half of this, or $25,000. The FHA would also receive half, which is also
$25,000.
Again, keep in mind that this is just one example, and your actual experience will vary depending on
factors such as: How much your home is worth when you get a new HOPE for Homeowners loan, how
long you stay in your home, and how much your home is worth when you sell.

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These examples assume that there are no closing costs when you sell your home and that you have made no
improvements to your home.

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