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Families who have benefited from the Mi Casa Program

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Federal Register Docket

On January 12, 2001, HUD issued a withdrawal of a proposed rule that would have prohibited gifts from non-profit organizations being used for the mortgagor's investment in a mortgaged property if the organization received the funds for the gift either directly of indirectly from the seller. Number FR-4469-N-02, Volume 66, Number 9 (Page 2851-2852), Withdrawal of Proposed Rule

Mortgagee Letter 00-8

On March 03, 2000 FHA issued Mortgage Letter 00-8. This Mortgage Letter clarifies FHA's position with regard to Gifts by charitable organizations. Specifically, Mortgage Letter 00-8 states:

"Approval of Down Payment Assistance Programs in the Form of Gifts: There has been widespread confusion regarding the Department's role in approving down payment assistance programs in the form of gifts. FHA does not "approve" down payment assistance programs in the form of gifts administered by charitable organizations. Mortgage lenders are responsible for assuring that the gift to the homebuyer from the charitable organization meets the instructions described in HUD Handbook 4155.1, REV-4, Change 1 (e.g., no repayment implied, etc.). Thus, while FHA will continue to issue approval letters to nonprofit agencies for their participation as mortgagors, providers of secondary financing, and as purchasers of HUD Homes at a discount, such letters are not to be construed as approval of the nonprofit agency's down payment assistance gift programs. FHA will not issue approval letters for down payment assistance gift programs."

Santa Ana HOC

HUD's position is further clarified in the March 01, 2000, Santa Ana HOC Program Support Division DAP Clearing House Homepage:
"Please note: HUD does not approve 'gift' programs administered by charitable organizations and, thus, will not offer a formal approval of your program. Mortgage lenders are responsible for assuring that the gift to the homebuyer from the charitable organization meets the instructions described in HUD Handbook 4155.1REV-4, Change 1 (e.g. no repayment implied, etc.). Those charitable organizations that comply with existing regulations and policy guidelines are permitted to give cash gifts to eligible homebuyers and do not need prior FHA approval to do so."

This statement is further reiterated as of February 1, 2002, on HUD's Single family housing website:

http://www.hud.gov/offices/hsg/sfh/np/sfhdap01.cfm

Denver HOC

June 29, 2000 Denver HOC Non-Profit Listing Homepage:
"FHA does not currently 'approve' down payment gift programs administered by charitable organizations. Mortgage lenders are responsible for assuring that the gift to the homebuyer from the charitable organization meets the instructions described in HUD Handbook 4155.1 REV-4, Change 1 (e.g. no repayment implied, etc.). Since FHA does not review and approve these programs, it also does not post information regarding down payment gift programs on its various web sites.

RE: Federal Tax ID number requirements

"If the nonprofit agency is providing down payment 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. Failure to do this will result in the loan not being insured by FHA."

Mi Casa’s Federal Tax ID number is: 74-2321634