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A HUD VIEWPOINT-SINS OF THE NON PROFITS
First of all and most important, I am not a spokesperson for Hud and my opinions are just that, my opinions.
For those who may not be familar with the non profit downpayment assistance programs one of the most important or the most important point is that the assistance is a gift.
From the outside it appears to be a lot of fancy dancing to make this seller's concession, ops we're not allowed to call it that, appear to solely be a gift from the non profit organization involved. The gift comes from the non profit organization's general pool and not from the seller. But, big BUT! if the seller does not make the appropriate contibution to the non profit there will not be any gift forthcoming from the non profit. Excuse me I meant a contribution exquivelent to the gift amount, plus a predetermined administration fee for the non profit. And once again, by some miracle, there is no tie between the two. Heh, heh.
As a gift it sits outside the FHA guideline of a maximum of 6% that the seller is allowed as a sales concession toward the buyers cost. Also as a gift it is considered by guideline to be ... more

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