---
kind: "section"
citation: "24 C.F.R. § 206.32"
title: "24"
number: "206.32"
heading: "No outstanding unpaid obligations."
url: "https://uscodex.org/cfr/24/206.32"
---

# §206.32. No outstanding unpaid obligations.


In order for a mortgage to be eligible under this part, a borrower must establish to the satisfaction of the mortgagee that after the initial payment of loan proceeds under [§ 206.25(a)](/cfr/24/206.25.md?p=a), there will be no outstanding or unpaid obligations incurred by the borrower in connection with the mortgage transaction, except for mortgage servicing charges permitted under [§ 206.207(b)](/cfr/24/206.207.md?p=b) and any future Repair Set Aside established pursuant to [§ 206.19(f)(1)](/cfr/24/206.19.md?p=f-1); and the initial disbursement will not be used for any payment to or on behalf of an estate planning service firm.


## Notes

### Authority

Authority: 12 U.S.C. 1715b, 1715z-20; 42 U.S.C. 3535(d)

### Source

Source: 82 FR 7117, Jan. 19, 2017, unless otherwise noted.