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Applying for Exemption/Misc. Determination: Sample Questions

Down Payment Assistance

Applications for exemption and miscellaneous determination requests are assigned to Exempt Organizations specialists for review. If additional information is necessary to make a determination, a specialist will contact the organization for the information. Here’s a list of questions that might be asked on this topic.

1. If the home builder or home seller pays a commission, donates to, or otherwise contributes to your organization, describe in detail what the revenue is used for. Your description should include whether the commission or donation is used to directly provide financial assistance to the homebuyer, whether it is used to defray administrative or other expenses, etc.  

2. If you have any relationships, contracts, or agreements with specific banks, construction firms, title companies, real estate companies or agents, or any other entity, in conducting this program, describe each relationship in detail. Your description should include a discussion of any fees paid to the companies or people, any fees received by your organization, and copies of any agreements or other documents you sign with these entities.

3. What is the typical amount (or percentage) of financial assistance that you provide to each homebuyer? How is this amount (or percentage) determined? Your description should include who makes the determination of the amount (or percentage) provided.  

4. Describe in detail how homebuyers are chosen to receive your assistance. Your description should include whether applicants have to meet certain income guidelines, copies of the application, and any other material used to solicit applicants.

5. Describe in detail any type of requirements you have for the home seller, including whether you know the identity of the home seller, or its status as a contributor to your organization, when evaluating an application for assistance. Your description should include any written guidelines and copies of any applications.

6. Explain the step-by-step process used to find the buyers, sellers, realtors, mortgagers and others involved in the home purchase process.  

7. Submit an explanation of your involvement in the process leading up to the sale, during the sale, and after the closing of the sale. Your description should include whether you require a home inspection to ensure that the house the homebuyer intends to buy will be habitable.  

8. Do you provide financial counseling seminars or other educational programs to help prepare potential homebuyers for the responsibility of home ownership? 

 
More information: 

See the complete list of Applying for Exemption/Miscellaneous Determination Sample Questions by topic.

Page Last Reviewed or Updated: 16-Dec-2014