Are set asides for property charges (i.e., tax and insurance) allowed?
9. If the lender suspects the senior has become involved in a property flipping scam, who should be contacted? If a lender suspects a senior has become a victim to a property flipping scam, the Processing and Underwriting Division of the local HOC should be contacted. Complaints may be reported to HUD’s Inspector General Hotline at: HUD Office of Inspector General Hotline, GFI 451 7th Street, SW Washington, DC 20410 Toll free: 1-800-347-3735 TDD: (202) 708-2451 10. Are gifts an acceptable source of funding? No. Prospective mortgagors may only use their own money or money obtained from the sale of assets. FHA prohibits the use of loan discount points, interest rate buy downs, closing cost assistance, builder incentives, gifts or personal property given by the seller or any other party. 11. What would be an “allowable FHA funding source” for gap financing of the equity portion? A withdrawal from the mortgagor’s savings or retirement account would be an acceptable funding source. 12. Can
