Regulation & law · 05/12/2012

HUD Clarifies FHA Insurance Eligibility for State and Local Government Programs

The U.S. Department of Housing and Urban Development (HUD) has issued an interpretive rule to clarify the scope of a provision in the National Housing Act that prohibits certain sources of funds for minimum cash investment in single-family mortgages insured by the Federal Housing Administration (FHA). The rule confirms that FHA insurance remains available for use with state and local government programs that provide funds for the minimum cash investment.