DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DOWN PAYMENT DOWN PAYMENT ASSISTANCE DOWN PAYMENT ASSISTANCE PROGRAMS FEDERAL HOUSING ADMINISTRATION FHA FHA LOAN FHA MORTGAGE HUD Down payment assistance
down payment grant
The Department of Housing and Urban Development announced this week that it is issuing new rules for down payment assistance on mortgages insured by the Federal Housing Administration. Click the headline for a full breakdown of which rules are changing and why.
The new rules are laid out in an FHA mortgagee letter titled “Downpayment Assistance and Operating in a Governmental Capacity.”
According to HUD, this “clarification” of the current documentation rules “should assist mortgagees in determining whether governmental entities providing gifts or secondary financing, or both, towards borrowers’ MRI are doing so consistent with FHA requirements.”
As the FHA states in its mortgagee letter, the current FHA handbook requires mortgagees to confirm that a “governmental entity is operating in its governmental capacity but, except for requiring a source of funds letter, does not specify the necessary documentation that demonstrates…
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