Current through September 30, 2024
Section 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:(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.