Does HUD approve “gift programs” administered by charitable organizations?
HUD does not approve gift programs” administered by charitable organizations and, thus, will not offer a formal approval of your program. Mortgage lenders are responsible for assuring that the gift to the homebuyer from the charitable organization meets the instructions described in HUD Handbook 4155.1REV-4, Change 1 Change 1 (e.g., no repayment implied, etc. ). 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. Q: How can I learn more about secondary financing/down payment assistance programs. A: HUD has long recognized the important role that nonprofit agencies may play in providing affordable housing opportunities. HUD’s secondary financing webpage describes the approval process for secondary financing/downpayment assistance programs. Also see HUD mortgagee letter 1994-02.
HUD does not approve “gift programs” administered by charitable organizations and, thus, will not offer a formal approval of your program. Mortgage lenders are responsible for assuring that the gift to the homebuyer from the charitable organization meets the instructions described in HUD Handbook 4155.1REV-4, Change 1 Change 1 (e.g., no repayment implied, etc. ). 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. Q: How can I learn more about secondary financing/down payment assistance programs. A: HUD has long recognized the important role that nonprofit agencies may play in providing affordable housing opportunities. HUD’s secondary financing webpage describes the approval process for secondary financing/downpayment assistance programs. Also see HUD mortgagee letter 1994-02.
