- (a) Monetary investment. At closing, HECM for Purchase borrowers shall provide a monetary investment that will be applied to satisfy the difference between the principal limit and the sale price for the property, plus any HECM loan-related fees that are not financed into the loan, minus the amount of the earnest deposit.
(b) Funding sources. To satisfy the required monetary investment, borrowers may use:
- (1) Cash on hand;
- (2) Cash from the sale or liquidation of the borrower's assets;
- (3) HECM mortgage proceeds; or
- (4) Other approved funding sources as determined by the Commissioner through notice.
(c) Interested party contributions.
(1) The following interested party contributions are permissible:
- (i) Fees required to be paid by a seller under state or local law;
- (ii) Fees customarily paid by a seller in the subject property locality; and
- (iii) The purchase of the Home Warranty policy by the seller.
- (2) The Commissioner may define additional permissible interested party contributions and impose requirements for permissible interested party contributions through a notice in the Federal Register.