| FHA Loan Programs |
Can State agencies and Nonprofits use
FHA loans?
FHA loans?
Nonprofit organizations and state and local government
agencies are permitted to purchase properties with FHA-
insured mortgages, subject to the conditions listed
below. These government and nonprofit organizations
are eligible for the same percentage of financing available
on owner-occupied principal residences. Nonprofit
gencies may only obtain FHA-insured fixed rate
mortgages, and only an existing FHA-insured mortgage is
eligible for refinancing and may never result in equity
withdrawal.
A. Nonprofit Organizations. Nonprofit organizations that
intend to sell or lease the property to low- or moderate-
income individuals (generally defined as income not
exceeding 115 percent of the applicable median
income) may obtain FHA-insured financing on rental
property. The appropriate HOC is responsible for
determining the nonprofit agency's eligibility to
participate in FHA programs; the DE lender is responsible
for determining the agency’s financial capacity for
repayment. Lenders also must verify that the agency is
approved as a participating nonprofit agency as of the
date of underwriting. Lenders can verify nonprofit
approval status by visiting the HUD Website at
www.hud.gov
agencies are permitted to purchase properties with FHA-
insured mortgages, subject to the conditions listed
below. These government and nonprofit organizations
are eligible for the same percentage of financing available
on owner-occupied principal residences. Nonprofit
gencies may only obtain FHA-insured fixed rate
mortgages, and only an existing FHA-insured mortgage is
eligible for refinancing and may never result in equity
withdrawal.
A. Nonprofit Organizations. Nonprofit organizations that
intend to sell or lease the property to low- or moderate-
income individuals (generally defined as income not
exceeding 115 percent of the applicable median
income) may obtain FHA-insured financing on rental
property. The appropriate HOC is responsible for
determining the nonprofit agency's eligibility to
participate in FHA programs; the DE lender is responsible
for determining the agency’s financial capacity for
repayment. Lenders also must verify that the agency is
approved as a participating nonprofit agency as of the
date of underwriting. Lenders can verify nonprofit
approval status by visiting the HUD Website at
www.hud.gov
