---
kind: "section"
citation: "24 C.F.R. § 206.44"
title: "24"
number: "206.44"
heading: "Monetary investment for HECM for Purchase program."
url: "https://uscodex.org/cfr/24/206.44"
---

# §206.44. Monetary investment for HECM for Purchase program.

- (a) **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.
- (b) **Funding sources.** To satisfy the required monetary investment, borrowers may use:
  - (1) Cash on hand;
  - (2) Cash from the sale or liquidation of the borrower's assets;
  - (3) HECM mortgage proceeds; or
  - (4) **Other approved funding sources as determined by the Commissioner through notice.**
- (c) **Interested party contributions.**
  - (1) **The following interested party contributions are permissible—**
    - (i) Fees required to be paid by a seller under state or local law;
    - (ii) Fees customarily paid by a seller in the subject property locality; and
    - (iii) **The purchase of the Home Warranty policy by the seller.**
  - (2) 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

### 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.