Good Afternoon!
FHA down payment update. This is important updated news!
Effective October 31, 2007, HUD will prohibit the use or downpayment assistance programs that, in whole or in part, consists of funds provided by any of the following parties before, during, or after closing of the property sale: the seller, or any other person or entity that financially benefits from the transaction; or any third party or entity that is reimbursed directly or indirectly by the seller, or any other person or entity that financially benefits from the transaction. All down payment seller assisted programs except for Nehemiah apply to this ruling.
Additional notice on effective date: The effective date of this rule is October 31, 2007 . Therefore, in order for the HomeBuyer to use a gift that was derived from the seller, the HomeBuyer must have entered into a contract of sale (including any amendments to purchase price and said contract must be fully executed, i.e. offer and acceptance before that date.
Due to a settlement agreement entered into between the Nehemiah Progressive Housing Development Corporation and HUD in April 1998, resolving litigation between the two parties, the Nehemiah Program will be permitted until March 31, 2008.
Jeff Tumbarello
Union Savings Bank
jtumbarello@usavingsbank.com
614 849 2214
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