(1) the functions performed include the Governmental Entity’s secondary financing program, and
(2) the secondary financing legal documents (e.g., Note and deed of trust) name the Governmental Entity as the Mortgagee.
(2) the secondary financing legal documents (e.g., Note and deed of trust) name the Governmental Entity as the Mortgagee.
Governmental Entities that have nonprofits close the secondary financing in the name of the nonprofit must verify that the nonprofit is both FHA-approved and on the HUD Nonprofit Roster.
For additional guidance and clarification on the provision of down payment assistance through secondary financing please refer to HUD’s Interpretive Rule, Docket No. FR-5679-N-01, at https://www.hud.gov/sites/documents/5679N01FHAMINCAINVESINTER.PDF
The HUD Nonprofit Roster is available at https://entp.hud.gov/idapp/html/f17npdata.cfm
For additional information see Handbook 4000.1 II.A.4.d.iii(J)(1)(b); II.A.5.c.iii(J)(1)(b); I.B.4.a.ii; and I.B.4.a.iii(B) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh