ARM 8.111.409. CASH ADVANCES

(1) The board may disburse a portion of the loan amount as a cash advance at closing for any one or more of the following purposes: (a) satisfaction of any liens on the property; (b) necessary repairs to the property; (c) actual loan closing costs, including but not limited to appraisals, title policies, recording of documents, and other closing costs; and (d) other items to assist the borrower to continue residing in the property, including but not limited to, medical expenses, transportation expenses (including automobile purchase and loan payoff), payoff of credit card debt, and supportive and specialized care services. (2) To receive a cash advance at closing, the borrower must submit a request in writing on forms supplied by the board. (3) A cash advance for any of the purposes specified in (1) must be approved by board staff along with approval of other RAM loans that do not have a cash advance at closing: (a) in an amount not to exceed $10,000 by board staff along with other loan approvals; and (b) in an amount greater than $10,000 by the board’s homeownership program manager. (4) A cash advance may be disbursed either to the borrower or to third parties as directed by the borrower and approved by the board. All cash advances disbursed at closing shall be added to the initial loan balance.