Washington Report

Advocacy Updates from Washington D.C.

FHA Down Payment Assistance Changes Rescinded

As of August 14, 2019, the U.S. Department of Housing and Urban Development (HUD) has officially rescinded guidance related to clarifying documentation requirements for government entities that provide down payment assistance to Federal Housing Administration (FHA) borrowers, including requiring entities to prove the property in question was within the jurisdiction where the government entity has authority to provide assistance. Following the release of the guidance, affected entities filed an injunction against HUD. HUD suspended the guidance while the legal challenges made their way through the courts. With the rescission of the original guidance, contained in Mortgagee Letter 19-06,  policy guidance for FHA's down-payment assistance program continues to be found in its Single Family Housing Policy Handbook 4000.1 Section II.A.4.d.ii.
Mortgagee Letter 2019-12 Rescinding Guidance on Down-payment Assistance