AmeriDream filed its lawsuit in the U.S. District Court for the District of Columbia. Nehemiah filed its suit on Sunday at the U.S. District Court for the Eastern District of California. The suits called the rule “arbitrary,” “capricious” and contrary to the FHA’s mission of insuring mortgages for those who can’t get conventional loans.

The suits are an attempt to overturn an agency decision that bans seller-financed down-payment assistance to some low- and moderate-income home buyers. Both are seeking a tempory injunction to the rule going into affect for Ameridream and other non-profits on October 31st. Nehemiah has 6 month to comply to the rule.

HUD claims it will fight all suits. “We will vigorously defend any lawsuit,” HUD General Counsel Robert Couch said through a spokesman.

This should be a good fight.