hud general counsel confirms governmental entities’ dpa funding does not violate fha requirements
CHFA previously shared with you
a statement from the Desk of Ed Golding reaffirming FHA’s support for down payment assistance programs such as CHFA’s. We are now pleased to share that Helen Kanovsky, HUD General Counsel, has provided a legal opinion concerning the manner in which an HFA funds its down payment assistance. That legal opinion states that current FHA guidance has not “placed restrictions on how a governmental entity may fund its DPA programs. . . . [T]he use of funds derived from the sale of mortgages with higher than market interest rates does not constitute premium pricing as defined by FHA, nor does it violate any other requirement placed on DPA provided by governmental entities.” The Legal Memorandum can be viewed in full on the
We are grateful that this clarification reaffirms FHA’s support for government down payment assistance like CHFA’s, and look forward to your continued partnership in offering this assistance to qualified Colorado homebuyers.