What is the definition of "Corporate Advance"?

The definition depends on timing. Before due and payable approval is granted, corporate advances are taxes, hazard insurance premiums, ground rents and assessments (including HOA/condo fees) paid on the borrower’s behalf.  After due and payable approval has been granted, corporate advances include the items identified in 24 CFR 206.129(d)(2) that may be itemized on the claim.

https://www.govinfo.gov/content/pkg/CFR-2018-title24-vol2/pdf/CFR-2018-title24-vol2-sec206-129.pdf 

Any questions may be directed to the FHA Resource Center at Toll-Free (800) CALLFHA (225-5342) or by email to answers@hud.gov.  Persons with hearing or speech impairments may reach this number by calling the Federal Information Relay Service at (800) 877-8339.


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-03296