Articles Published in: March 2011

March 3, 2011

Should I Pay For FHA Loan Counseling?

If you have an FHA loan and are trying to avoid foreclosure, the FHA recommends contacting the agency to be put in touch with a counselor that can help. The same goes for first-time home buyers; the FHA can put newcomers to the FHA insured mortgage loan process in touch with a local counselor who will guide them through credit prep, the loan process itself and what to do once a suitable home is found. There is even counseling help available for seniors, and for people facing homelessness. The FHA advertises these services on its official site, saying “Want advice on buying a home, renting, default, foreclosure avoidance, credit issues or reverse mortgages? HUD sponsors housing counseling agencies…search online for a

March 2, 2011

What Is an FHA 203(h) Mortgage?

By Joe Wallace

The FHA has a wide variety of home loan products, but it’s easy to assume that an FHA loan is just for people searching for their first home, trying to refinance, or looking to purchase another home after having sold their previous one. Did you know the FHA also provides home loans for victims of major disasters? An FHA mortgage program called Section 203(h) allows qualified lenders to offer FHA loans to those who lost their property in a major disaster and are in the process of buying a new home or rebuilding the old one. To qualify for this loan, FHA borrowers must meet credit and eligibility requirements typical for any FHA loan program but there are additional qualifiers. According to the FHA, “Individuals are eligible for this program | more...

March 1, 2011

Changes to FHA Cash Out Refinancing Requirements

By Bruce Reichstein

Many changes to FHA refinancing programs were announced in FHA Mortgagee Letter 2011-11, including alterations to the rules for FHA cash-out refinancing loans. FHA mortgagee letters, which are intended for approved borrowers and FHA lenders alike, routinely update rules and regulations when changes are made–these announcements are an important resource for FHA borrowers and it’s definitely a good idea to keep up with them if you’re interested in getting a new FHA loan or refinancing an existing one. In previous blog posts, we’ve discussed the changes FHA Mortgagee Letter 2011-11 announced as “effective immediately”, including an important clarification on the requirement for borrowers to be current on their FHA mortgages when applying for any kind of FHA refinancing. According to the FHA, “Mortgagors must be current on the mortgage being