Sellers have probably abused their right to provide down-payment assistance through nonprofit groups, but regulators should establish caps and more stringent eligibility requirements on FHA loans rather than ban the practice outright, an industry group maintains. In a letter to the Department of Housing and Urban Development, The Mortgage Bankers Association said seller-funded down-payment assistance on loans insured by the Federal Housing Administration has "provided an important tool for low-income, minority and first-time home buyers," and should be reformed, rather than scrapped. HUD has proposed tightening the rules governing down-payment assistance on FHA insured loans, in part because of concerns that allowing sellers and others who profit from a home's sale to participate in circular financing arrangements artificially inflates home prices. Of particular concern are charitable organizations that sellers often use to circumvent FHA restrictions on seller-funded down payments....
by Andrew Wetzel | on Mar 22, 2017
by Gill South | 12 hours
by Brad Inman | 2 days
by Brad Inman | on Mar 21, 2017
by Andrea V. Brambila | 22 hours