Can fees paid by a borrower outside of closing be included as part of the Minimum Required Investment?

Closing costs, prepaid items and other fees may not be applied towards the Borrower’s Minimum Required Investment (MRI).  The Mortgagee is not permitted to use closing costs to help the Borrower meet the MRI.
For additional information see Handbook 4000.1  II.A.4.d.i; II.A.5.c.i. & II.A.6.a.x 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-04673