On April 18, 2019, HUD issued Mortgagee Letter 19-06, setting forth new documentation requirements for down payment assistance to borrowers provided by government entities for FHA insured mortgage loans. These new requirements are effective for case numbers assigned on or after April 18, 2019.

On December 5, 2012, HUD published an Interpretive Rule in the Federal Register (77 F.R.72219) to explain how HUD interprets the borrower’s minimum down payment requirements when these funds are being provided by governmental entities – i.e., Federal, State, local governments and their agencies or instrumentalities. Mortgagee Letter 2019-06 (ML 19-06) clarifies documentation requirements for FHA-approved mortgagees regarding the provision of down payment assistance by governmental entities by providing clarification of documentation requirements to demonstrate compliance.


Full Memorandum