§206.44. Monetary investment for HECM for Purchase program.
24 C.F.R. § 206.44
Monetary investment. At closing, HECM for Purchase borrowers shall provide a monetary investment that will be applied to satisfy the difference between the principal limit and the sale price for the property, plus any HECM loan-related fees that are not financed into the loan, minus the amount of the earnest deposit.
Funding sources. To satisfy the required monetary investment, borrowers may use:
Cash on hand;
Cash from the sale or liquidation of the borrower's assets;
HECM mortgage proceeds; or
Other approved funding sources as determined by the Commissioner through notice.
Interested party contributions.
The following interested party contributions are permissible—
Fees required to be paid by a seller under state or local law;
Fees customarily paid by a seller in the subject property locality; and
The purchase of the Home Warranty policy by the seller.
The Commissioner may define additional permissible interested party contributions and impose requirements for permissible interested party contributions through a notice in the Federal Register.
Notes, amendments, and revision history
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.