Articles Published in: November 2010

November 4, 2010

Exceptions to RESPA Good Faith Estimate Requirements for FHA Loans

The Real Estate Settlement Procedures Act or RESPA, requires buyers to be more fully informed as to the costs of an FHA loan including how much they must pay for closing costs, and how much is refundable vs. non-refundable if the buyer has a change of mind and backs out of the loan. These FHA requirements are designed to protect borrowers from "gotcha" charges, unexpected expenses and other problems; RESPA is also designed to help lenders and buyers work together knowing that all terms are understood and expected.

November 4, 2010

The FHA Energy Efficient Mortgage

By Joe Wallace

For FHA borrowers who live in areas with seasonally high utility bills, there is help from the FHA in the form of the FHA Energy-Efficient Mortgage or EEM. This is a program that started as an experiment in 1992 and expanded to a full-time national FHA loan option in 1995.

November 3, 2010

FHA Loans and the Borrower’s Rights

By Joe Wallace

First time home buyers often feel a bit lost in the sea of loan vocabulary, federal laws and credit requirements they have to deal with in order to buy their new home. If you want to buy a new home with an FHA loan, there are plenty of people willing to help. Unfortunately not all of them have the home buyer's best interests in mind. That's one of the reasons for the Real Estate Settlement Procedures Act or RESPA for short, which requires lenders to provide a standardized Good Faith Estimate -- a document that clearly lists the terms of the home loan and closing costs.

November 3, 2010

Maximum FHA Loan Amounts

By Joe Wallace

The first question an FHA borrower wants answered is often, "How much can I borrow with an FHA loan?" The answer depends on what kind of transaction the FHA loan applicant wants to make--there are different FHA loan limits depending on the type of borrower, the transaction, and the nature of the property itself.

November 2, 2010

Proposed FHA Loan Changes Would Increase Lender Scrutiny, Protect Customers

By Joe Wallace

In October 2010, the U.S. Department of Housing and Urban Development proposed tighter regulations that would require lenders to reimburse the Federal Housing Administration for claims on FHA home loans that don't meet FHA requirements. The proposed legislation is part of a move initiated at the start of 2010 to change FHA policy in order to protect the FHA loan program and hold banks more accountable for the FHA loans they approve.

November 1, 2010

What Does the FHA Look For in a Credit Report?

By Joe Wallace

When a buyer wants to purchase a home with an FHA guaranteed mortgage, FHA requirements include a credit report. The FHA needs to see credit information on all prospective borrowers to establish that the applicant has a good history of on-time bill payments; the FHA also needs to know the borrower's residence history and related information.

November 1, 2010

FHA Loan Features

By Joe Wallace

As the official site of the Department of Housing and Urban Development says, the FHA loan program has been running since 1934. This program is designed to help ordinary people get into affordable home loans with low down payment requirements, low closing costs and credit requirements that are more lenient than conventional loans.