$8,000 Tax Credit

The new FHA Mortgagee Letter is out.  “Notice to All Nonprofits Approved by FHA to Provide Secondary Financing:

When a mortgagor receives secondary financing from a HUD-approved nonprofit in conjunction with an FHA first mortgage, the Lender on the FHA First Mortgage is required to enter information about the second lien into an FHA system called FHA Connection. Specifically, the Lender is required to enter into FHA Connection the legal name of the nonprofit, the IRS EIN number of the nonprofit, and the amount of the second lien. FHA requires that every HUD approved nonprofit making a second mortgage in conjunction with an FHA mortgage provide to the lender on the FHA first mortgage the following information:

1. The nonprofit agency’s IRS EIN number

2. The name of the nonprofit agency as it appears on their IRS Letter of Determination of exemption from taxation

3. The amount of the second mortgage

For more information on secondary financing in conjunction with an FHA first mortgage please visit: http://www.hud.gov/offices/hsg/sfh/np/sfhdap01.cfm

Here is a list of the Approved Non-Profits http://www.hud.gov/offices/hsg/sfh/np/np_atl.pdf