§ 206.44. Monetary investment for HECM for Purchase program.
171 words·~1 min read·
/us/cfr/t24/s§ 206.44·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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.
Connections5 cite this
Cited by 5 sections · top 2
Citation graph
cites case law
§ 206.44
Monetary investment for HECM for Purchase program.
Fed. Reg.×5
Cites 0Cited by 5 across 1 source