223(e) Declining Urban Areas

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Chapter 1
Appraisal & Property Requirements
Page 1-11

Purpose and General Information: HUD Handbook 4260.1 Miscellaneous Type Home Mortgage Insurance Section 223(a), (e), and (d), and HUD Handbook 4150.2  The purpose of section 223(e) is to permit the use of FHA mortgage insurance in older, declining urban areas where there is a need for affordable housing. For additional information on appraising and underwriting a 223(e) mortgage, see the references above. The ADP code for section 223(e) is 792.