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Homebuyers
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News From PIC HUD Mortgagee Letter 00-28 On August 7, 2000 HUD released Mortgagee Letter 00-28, which specifically addressed FHA borrowers using gift funds from all eligible sources. The Mortgage Letter revised the gift procedure by requiring the lender to verify the gift funds through a revised paper trail and a change in the required content of the gift letter itself, from private individual donors. It's important to note that this Mortgage Letter is NOT targeted at Non-Profit organizations. It is simply a revision of individual gift procedures directed at individual donors. However, Partners In Charity believes that compliance with the rules and regulations of HUD's new guidelines is prudent to maintaining a good relationship and demonstrating ethical responsibility to homeowners. Therefore, we are adjusting our gift letter to include the new language provided by HUD so that lenders and real estate professionals are assured of compliance with the FHA program. In addition, each gift is wired to the borrower at closing from a pre-existing pool of funds. This wire is the lender's and title company's paper trail and confirmation of where the funds came from. To view the entire Mortgagee Letter 00-28, click here. As always, Partners In Charity (PIC) is committed to providing you with the latest information to keep you informed of our ever-changing industry. For
Immediate Release Partners In Charity Is
Changing The Heart Of Real Estate East Dundee, IL., While raising their children the Bechtel family always dreamed that one day they would be able to watch their children play in their own backyard. For many years, this dream seemed like one that would never come true. They paid their rent each month, but with raising their children, there never seemed to be enough left over to save any money for a new home until……. Partners In Charity, a nonprofit organization whose primary mission is to give people a down payment for their own home made The Bechtel’s dream come true. Through the Partners In Charity grant program, they were able to move into her new home (with a backyard for the children, of course). “It truly changed our lives. We were first-time homebuyers and had almost given up. But thanks to Partners In Charity, we’ve moved into our own home.” Travis Bechtel, Fayetteville, PA Partners In Charity gives a down payment to a buyer who demonstrates their ability to responsibly pay their rent and their bills each month, anywhere in the country. Partners In Charity believes that anyone who is able to pay their rent each month, and show that type of responsibility should not be denied the American dream of homeownership. Partners In Charity refers the buyer to a licensed mortgage lender and licensed Realtor who will assist the buyer in finding the right home and the right financing package. Or, the buyer can chose to work with someone they already know. The mortgage lender then requests the gift of a down payment from Partners In Charity in the amount of 3%, 4% or 5% for the buyer. The gift is sent to the closing table to be used in finalizing the purchase of the client’s new home. And, the gift never needs to be repaid, ever. But the giving doesn’t stop there. With each down payment, Partners In Charity gives a gift back to a local charity. The real estate team selects a nonprofit charity in their community to receive the gift. So everyone wins! There are no special requirements for the program. The client DOESN”T have to be a first-time homebuyer. They DON’T have to fall within certain income limits. The gift NEVER needs to be paid back and the gift is ALLOWED on most mortgage financing programs such as FHA and conventional. “My involvement with
Partners In Charity was very easy. It
was a great feeling to help a buyer who thought owning a home wasn’t a
possibility for them”. Miguel Soto, Estevez-Monroe
Realty, San Antonio, Texas. While this may sound too
good to be true, the fact is that down payment grants have helped over 70,000
renters become homeowners. For
More Information Please Contact Us At: 1-800-705-8350 January, 2001 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. |
