Regulations last checked for updates: Oct 17, 2024

Title 24 - Housing and Urban Development last revised: Sep 16, 2024
§ 206.32 - No outstanding unpaid obligations.

In order for a mortgage to be eligible under this part, a borrower must establish to the satisfaction of the mortgagee that after the initial payment of loan proceeds under § 206.25(a), there will be no outstanding or unpaid obligations incurred by the borrower in connection with the mortgage transaction, except for mortgage servicing charges permitted under § 206.207(b) and any future Repair Set Aside established pursuant to § 206.19(f)(1); and the initial disbursement will not be used for any payment to or on behalf of an estate planning service firm.

source: 82 FR 7117, Jan. 19, 2017, unless otherwise noted.
cite as: 24 CFR 206.32