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HUD's Opinion
On March 3, 2000 FHA issued Mortgagee Letter 00-8, titled "Nonprofit Agency Participation in Single Family FHA Activities".
This mortgagee letter clarifies to the lending community, FHA's position on the issue of downpayment assistance and Nonprofit organizations associated with FHA programs, including the 203(k) program, and secondary financing programs.
The letter also clarifies once and for all that FHA does not "approve" downpayment assistance programs in the form of gifts administered by charitable organizations.
Instead, lenders are expected to review the requirements of HUD Handbook 4155.1 (which is the HUD underwriting manual for FHA loans) to ensure that gift sources meet the instructions set forth in the handbook.
The Partners In Charity Program also known as PIC is in compliance with FHA guidelines, (including HUD handbook 4155.1).
The letter provides that "If the nonprofit agency is providing downpayment assistance in the form of a gift, lenders are to enter into the CHUMS system the Federal Tax Identification Number of the nonprofit agency in the field designated for a charitable organization's tax identification number.
For your records and information, PIC's Federal Tax ID# is 36-4378897.
If you'd like to view this letter in more detail, simply click here.
Partners In Charity is pleased to let you know that HUD has withdrawn a proposed ruling that was slated to eliminate down payment assistance programs.
This is truly a victory to the thousands of consumers who have directly benefited from down payment assistance programs in their quest for their dream of homeownership.
The U.S. Department of Housing and Urban Development (HUD) announced in a Federal Register comment on January 12, 2001, that attempts to impede down payment assistance programs would not occur.
Following this brief note you can view the exact release which can be found at
www.hudclips.org
under Federal Register Announcements.
We want you to know that Partners In Charity is the ONLY down payment assistance program that is following "best practices" by requiring home buyer education. "
While others have buckled under pressure from other down payment assistance programs by not requiring homebuyer education, Partners In Charity has not forgotten that ethical assistance means providing prospective giftees with the skills that they need to handle their new home and new mortgage.
This commitment to the consumer and to the lending community is the only responsible way to properly ensure that each of those parties are protected," stated Tammy Butler, CMB (Certified Mortgage Banker) who is the national marketing representative for the Partners In Charity program.
So thank you HUD and Mr. Apgar for allowing programs like Partners In Charity to exist.
It's through innovative programs, such as down payment assistance, that nonprofits such as Partners In Charity help more and more consumers realize their dream of homeownership.
  
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