​​ CHFA eNews: Home Finance
chfa enews - home finance 
September 11, 2015

hud general counsel confirms governmental entities’ dpa funding does not violate f​ha 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 HUD website​.

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.

CHFA Home Finance
303.297.7376 or 888.320.3688 Denver
970.241.2341 or 800.877.8450 Western Slope