What HUD/FHA programs require approval for non-profits to participate?
There are three types of approval that can be obtained by a non-profit organization. They are: 1) Approval to purchase HUD Homes at a discount. HUD/FHA allows non-profit organization to bid on and purchase HUD Homes at a discount. This allows the non-profit to pass on this savings, providing affordable housing opportunities for low-income or first time homebuyers. 2) Approval to finance FHA-insured mortgages at the same terms and conditions as an owner-occupant. This allows non-profits to purchase properties with lower down payment requirements, allowing them to fully leverage their funds. 3) Approval to provide secondary financing to borrowers originating FHA-insured mortgages. This allows organizations to provide closing cost or down payment assistance to borrowers in accordance with FHA guidelines. Gifts do not require approval by the HOC.
