In September 2003, HUD examined sources of downpayment funds for FHA-insured single family mortgages. Over 8,000 underwriting case binders were retrieved for this study. Information found on the HUD-1 and Mortgage Credit Analysis Worksheet forms in the binders were used to verify data previously collected by HUD from the originating mortgagees.

The scope of study, methods used, and findings regarding sources of downpayment funds and the amount of seller contributions toward settlement costs are all discussed in this contract report. Read the report, Audit of Loans with Downpayment Assistance (PDF) , (MS-Word).