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Nonprofit Organizations and Governmental Entities Program Guidelines
 

The following identifies rules, Single Family Housing Policy Handbook 4000.1 (SF Handbook) citations, and other policies for the Federal Housing Administration’s (FHA) three Single Family Nonprofit and Government Entity Programs: HUD Homes; FHA Mortgagor; and Secondary Financing. FHA requires prospective Nonprofit Organizations to obtain approval and be placed on the HUD Nonprofit Roster to participate in FHA’s Single Family Nonprofit Programs, as detailed in FHA’s SF Handbook.

HUD Homes Program 

HUD real-estate owned (REO) properties can be purchased by HUD-Approved Nonprofit Organizations and Governmental Entities at a discount and during the exclusive listing period.  Individual property files must be maintained detailing the purchase and sale of properties. Net development cost calculations apply for properties purchased at a discount for which a Land Use Restriction Addendum must be used. For additional information, please refer to:

  • Individual Property Files (includes net development costs and the Land Use Restriction Addendum): SF Handbook section I.B.4.c.iii
  • Disposition: SF Handbook section IV.B
FHA Mortgagor Program 

HUD-Approved Nonprofit Organizations and Governmental Entities may apply for the same FHA-insured financing as owner occupants. For additional information, please refer to:

  • Limit on 203(k) FHA-Insured Mortgages: SF Handbook section I.B.4.c.ii
  • Origination through Post-Closing/Endorsement: SF Handbook section II.A
Secondary Financing Program 

HUD Approved Nonprofit Organizations and Governmental Entities provide secondary financing assistance to homebuyers utilizing FHA insurance on a first mortgage when that assistance is secured with a second mortgage or lien. Secondary financing requirements must be met by HUD-Approved Nonprofit Organizations and Governmental Entities as well as by mortgagees. For additional information, please refer to:

  • Origination through Post-Closing/Endorsement: SF Handbook section II.A
  • Interpretive Rule, Federal Housing Administration: Prohibited Sources of Minimum Cash Investment under the National Housing Act: /sites/documents/5679N01FHAMinCaInvesInter.pdf
All Programs 
  • Removal from HUD Nonprofit Roster: SF Handbook section V.E.5.e.iii(B)
  • Consultant Services: SF Handbook section I.B.4.c.i
  • Free Assumability: 24 CFR 203.41
     



 

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