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Prevention of FHA down payment assistance overturned

Posted on November 1, 2007 by Ray Williams (NMLS #216267).

You may have seen an earlier post talking about how FHA down payment assistance was going to be eliminated by a new rule from HUD called the “final rule”. Well as it turns out HUD has had the rule overturned by a judge who ruled that the HUD “final rule” was built on very limited evidence to support the elimination of the down payment assistance. This is great news for those who are going to be buying a home in the future!

This is to notify you that FHA is not permitted to implement the downpayment assistance rule at this time. Judge Friedman of the United States District Court for the District of Columbia issued a ruling enjoining HUD from implementing the downpayment assistance rule, which was to go into effect today. This injunction is

applicable to everyone affected by the Rule. HUD will provide further guidance as appropriate.

To read the downpayment assistance rule (enjoined) in its entirety and for more information please visit: http://hudclips.org/sub_nonhud/cgi/pdf/4846a.pd

Ray

rwilliams@summit-mortgage.com

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