24 C.F.R. § 203.19 Mortgagor's minimum investment.
Title 24 - Housing and Urban Development
(a) At the time the mortgage is insured, the mortgagor shall have paid in cash or its equivalent the following minimum amount: (1) In all cases (except those involving a veteran meeting the requirements of §203.18(b) or a disaster victim meeting the requirements of §203.18(e)), the minimum investment shall be at least 3 percent of the Commissioner's estimate of the cost of acquisition (excluding the amount of any one-time mortgage insurance premium payable in accordance with §203.280) or such other larger amount as the Commissioner may determine. (2) In a case involving a veteran meeting the requirements of §203.18(a)(3) or a disaster victim meeting the requirements of §203.18(e), the minimum investment shall be $200 which may include settlement costs, initial payments for taxes, hazard insurance premiums, mortgage insurance premiums, and other prepaid expenses as approved by the Commissioner. (b) A mortgagor who is 60 years of age or older, as of the date the mortgage is accepted for insurance, or whose mortgage meets the requirements of and is to be insured pursuant to §203.18(d), or who is purchasing a single-family home under a low income housing demonstration project which is being assisted by the Secretary of Housing and Urban Development pursuant to section 207 of the Housing Act of 1961 or who is purchasing a housing unit in connection with a homeownership program under the Homeownership and Opportunity Through HOPE Act, may obtain a loan to meet the payment required by paragraph (a) of this section and to pay settlement costs. Such loan shall be from a corporation or person satisfactory to the Commissioner. The settlement costs paid with the loan may include initial payments for taxes, hazard insurance premium, mortgage insurance premium, and other prepaid expenses, as determined by the Commissioner. As security for the loan, the mortgagor may give a note or other evidence of indebtedness bearing interest at a rate not in excess of that permitted in the insured mortgage. The aggregate amount of the insured mortgage and the loan referred to in this section shall not exceed an amount equal to the Commissioner's estimate of the appraised value of the property, plus an amount equal to the initial payments for taxes, hazard insurance premium, mortgage insurance premium, and other prepaid expenses, as determined by the Commissioner. [36 FR 24508, Dec. 22, 1971, as amended at 48 FR 44067, Sept. 27, 1983; 50 FR 40195, Oct. 2, 1985; 53 FR 8880, Mar. 18, 1988; 56 FR 4477, Feb. 4, 1991; 61 FR 36263, July 9, 1996]
Title 24: Housing and Urban Development
PART 203—SINGLE FAMILY MORTGAGE INSURANCE
Subpart A—Eligibility Requirements and Underwriting Procedures
Eligible Mortgages
§ 203.19 Mortgagor's minimum investment.
