FHA Reaffirms Support for Downpayment Assistance Programs

Filed in Housing Finance by on July 21, 2015 0 Comments

Ed Golding, principal deputy assistant secretary for housing and head of the FHA, yesterday issued a statement reaffirming FHA’s support of downpayment assistance programs, such as those run by state housing finance agencies.

The announcement comes following the recent release of a HUD audit that found irregularities by a financial institution that used FHA-insured loans with downpayment assistance gifts.

“These programs help creditworthy families buy their first homes in communities across the country – responsibly expanding access to credit,”  Golding said. “The intent of our rules regarding downpayment assistance is clear and allows HFAs the discretion necessary to fund these programs appropriately. HUD is taking active steps to completely resolve the issues raised in the audit and to provide proper clarity and guidance to the market.”

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