Please be advised that HUD is honoring ALL contracts from Lenders with Down Payment Assistance from Home Downpayment Gift Foundation.
Friday, May 5th, the IRS issued a ruling that will have an impact on the down payment assistance industry. What the future impact will ultimately be is currently unknown. What we do know is that HUD is standing by the guidelines put forth in the HUD Handbook and Mortgagee Letter 00-08 regarding down-payment assistance. In cases where a down-payment is gifted from a charitable organization, as long as a charity remains exempt under IRS section 501(c)(3), the mortgage is eligible for FHA insurance.
HDGF is currently recognized as exempt from federal income tax under Internal
Revenue Code Section 501(c)(3) and it meets HUD requirements for a "charitable
organization" (HUD Handbook 4155, Rev. 4, Section 2-10).
We have been informed by HUD officials that HUD will continue to honor all contracts
from lenders with down payment assistance as long as the charity is in good
standing with the IRS and is recognized as exempt under section 501(c)(3)
We appreciate your continued support and loyalty, now more than ever.