HUD Prepares for Loss of Downpayment Assistance Nonprofit Groups in FHA
June 1, 2006
As fallout from an Internal Revenue Service crack-down on downpayment assistance programs continues, the Department of Housing and Urban Development this week released guidelines for determining whether aid from a program that loses or gives up its federal tax-exempt status can be used in FHA mortgage lending. In Mortgagee Letter 2006-13, HUD said if the homebuyer enters a contract of sale on, or before, the date the IRS officially announces that the charitable organization’s…