Back in May of 2006, the IRS adopted a position that non-profit programs should not participate in down payment assistance programs.  Then in May of this year, HUD proposed a rule that, basically, would end all down payment assistance gift programs.   However, this week the judge awarded an injunction which will prohibit HUD from facilitating the final rule until either the later of February 29th or a decision in this case against HUD is made.  This means that DPA programs can still be used in purchasing contracts if done on or before February 28th or the date that the case against HUD is settled.  We do lots of FHA loans and often have borrowers who need assistance with the 3% required down payment so we are very happy to hear this!