seller paid down payment assistance: HUD has new mortgagee letters out we all need to know about
- 04/02/11 10:59 AM
Prohibition of Seller-Funded Downpayment Assistance Programs
Mortgagees are reminded that the use of downpayment assistance programs where the funds for the homebuyer’s required investment in the property are provided by the seller or any other person or entity that financially benefits from the sale of the home, or any third party or entity that is reimbursed directly or indirectly by the seller or any party that financially benefits from the transactions, is PROHIBITED under section 2113 of the Housing and Economic Recovery Act (HERA) of 2008. Mortgagees are advised to exercise due diligence in the underwriting of FHA-insured loans using … (3 comments)
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Prohibition of Seller-Funded Downpayment Assistance Programs
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