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.
Funding sources. To satisfy the required monetary investment, borrowers may use:
Cash on hand;
Cash from the sale or liquidation of the borrower's assets;
HECM mortgage proceeds; or
Other approved funding sources as determined by the Commissioner through notice.
Interested party contributions. (1) The following interested party contributions are permissible:
Fees required to be paid by a seller under state or local law;
Fees customarily paid by a seller in the subject property locality; and
The purchase of the Home Warranty policy by the seller.
The Commissioner may define additional permissible interested party contributions and impose requirements for permissible interested party contributions through a notice in the Federal Register.
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