Loading...

Down Payment Assistance Suspensions - FHA Loans

FHA published FHA ML 2019-06 on April 18, 2019, which clarifies documentation requirements for governmental entities providing down payment assistance to FHA borrowers in order to satisfy a portion or all the borrower’s Minimum Required Investment (MRI).

FHA ML 2019-06

FHA published FHA ML 2019-06 on April 18, 2019, which clarifies documentation requirements for governmental entities providing down payment assistance to FHA borrowers in order to satisfy a portion or all the borrower’s Minimum Required Investment (MRI).


As a result of FHA’s announcement, NewRez is temporarily suspending the origination and purchase of new FHA loans that include any down payment assistance from state or local government programs. This suspension applies to loans with case numbers issued on or after April 18, 2019. This includes first mortgage loans originated in conjunction with a bond agency or state housing agency, along with a standard FHA product utilizing down payment assistance funds for closing.


We are working with industry experts to assess the impact of FHA’s announcement on the ability to lend in these circumstances and will provide an update as soon as possible. As our partners [HFAs, etc.) adjust to compliance with the new regulations, we will add back the suspended programs.
Thank you for your cooperation in this matter.


Please reference FHA ML 2019-06 for specific details of the announcement.