Archive for October 3rd, 2007
3.10.07 » New HUD Rule Bans Seller Funded Down Payments for FHA Loans
Things just got more difficult for first time home buyers…although I have to admit I am not sorry to see this go by the wayside. It was confusing to buyers, sellers and REALTORS(R). The practical application of this program and this rule in particular has proven difficult.
FHA commissioner Brian Montgomery announced a change in HUD rules that will no longer allow borrowers who pay for their down payments with funds from the seller to obtain an FHA insured loan for that transaction.
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