Important HUD Ruling On FHA Down Payment Assistance
October 10th, 2007 Categories: FHA
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Important HUD ruling on FHA Down Payment Assistance:
• On October 1, 2007 HUD published a final regulation that establishes that a prohibited source of down payment assistance is a payment that consists, in whole or in part, 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.
• This regulation is effective October 31, 2007. Therefore, in order for a homebuyer to use down payment assistance derived from a seller the homebuyer must have entered into a contract of sale (including any amendments to the purchase price) that was signed by the homebuyer on or before October 30, 2007. However, in accordance with a settlement agreement resolving previous litigation between the Nehemiah Progressive Housing Development Corporation (Nehemiah) and HUD, this regulation will not apply to the Nehemiah down payment assistance program until April 1, 2008. Therefore, in order for a homebuyer to use down payment assistance derived from a seller under the Nehemiah program, the homebuyer must have entered into a contract of sale (including any amendments to the purchase price) that was signed by the homebuyer on or before March 31, 2008.
Please contact your TB&W Sales Representative should you have any questions.
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Saw your comment on RCG Rob, re: DOJ/NAR and thought I’d stop by. Very nicely Tomatoized place you have here! Added to the feed reader!
Hi Jay,
I hope you enjoyed your visit.
It is my concept and a little tweaking from the art crowd of the tomato.
There is more design to come. There will be right brain and left brain categories. The side bars will shift from one to the other.
I insist on having fun.