If a borrower pays fees outside of closing can they be included as part of the required investment?

The Mortgagee may only consider assets derived from acceptable sources in accordance with the requirements outlined in Handbook 4000.1.
Closing costs, prepaid items and other fees may not be applied towards the Borrower’s
Minimum Investment Requirement (MRI).
For additional information see Handbook 4000.1  II.A.4.d.i. and II.A.5.c.i. available at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-01825