CDBG Entitlement FAQ
Q

What does "acquire guarantees of mortgage financing but not guaranteeing the mortgage itself" mean in the CDBG program?

Date Published: March 2019

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A

This means if the private lender selected by the homebuyer offers a guarantee of the mortgage financing (as may occur with a Federal Housing Administration (FHA) mortgage), the grantee may purchase the guarantee to ensure repayment in case of default by the homebuyer. This section allows the purchase of mortgage insurance by the household but not the direct issuance of mortgage insurance by the grantee.


Tags: CDBG Entitlement Program Homebuyer Assistance

FAQ ID:

3595