Industry NewsMortgage

Clock ticking again on seller-funded down payments

HUD taking comments on FHA rule change until Aug. 15
Published on Jun 17, 2008

Get Inman via Facebook Messenger
Our top headlines delivered once a day.
by CareyBot

Federal regulators on Monday renewed their efforts to ban seller-funded down-payment assistance on FHA-guaranteed loans, publishing a proposed rule and reopening the public comment period on the plan until Aug. 15.

The Department of Housing and Urban Development says allowing sellers or others with a financial stake in the sale of a home to fund down payments inflates home prices and triples the chance that a home will end up in foreclosure.

Comments