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Non-profit
and government agencies can Subscribe to the Single
Family Housing email list. You will get frequent, training
and event announcements, mortgagee letters, Grant programs,
FHA mortgage limits and notices about your Single Family
Non-profit business.
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HUD
has long recognized the important role that downpayment assistance
through secondary financing plays in providing affordable housing
opportunities. There are three categories of DAP assistance providers:
1) Nonprofit and Nonprofit Instrumentality of Government DAPs:
Nonprofits and Nonprofit Instrumentalities of Government that provide
DAPs in the form of a lien in conjunction with an FHA first mortgage
lien, must be approved by HUD. HUD maintains a Roster
of those Nonprofits and Nonprofit Instrumentalities of Government
that have been approved. See Mortgagee Letter 02-01
for more information on the approval process. Also, see: Non
Profit Approval Information for Participation in Single Family Programs.
2)
Government Entity DAPs: No approval is required for Government
Entities that provide secondary financing in the form of a lien
in conjunction with an FHA first mortgage lien. HUD does not maintain
a list of Government Entity DAP providers. Mortgage lenders are
responsible for assuring that a Government Entity DAP meets all
appropriate FHA requirements, including those contained in Mortgagee
Letters 94-2,
02-22,
and HUD
Handbook 4155.1 Rev-5, Paragraph 1-13A.
3)
Gift Programs: FHA does not "approve" down payment assistance
programs in the form of gifts administered by charitable organizations
(i.e., nonprofits). Mortgage lenders are responsible for assuring
that the gift to the homebuyer from the charitable organization
meets the appropriate FHA requirements and the transfer of funds
is properly documented. See HUD
Handbook 4155.1 REV-5, CHG-1 Paragraph 2-10 (C) and Mortgagee
Letter 00-08,
for further information. Those charitable organizations that comply
with existing regulations and policy guidelines are permitted to
give cash gifts to eligible homebuyers and do not need prior FHA
approval to do so. Please see: Status
of IRS charitable organizations for more information.
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