FHA Down Payment Assistance Changes Suspended

On July 23, 2019, the U.S. Department of Housing and Urban Development (HUD) announced, via Mortgagee Letter 19-10, the suspension of the effective date of Mortgage Letter 19-06 indefinitely.
Mortgagee Letter 19-06 had announced clarifying documentation requirements for government entities that provide down payment assistance to Federal Housing Administration (FHA) borrowers. The announcement of the indefinite suspension follows a ruling by a U.S. District Court in Utah judge granting a motion to delay the implementation of changes to the Federal Housing Administration’s down payment assistance rule as a debate over the new guidance continues in the courts.