May 7, 2012
FHA home loans include loans for condos, but since condominiums have unique arrangements that can be much different than a traditional suburban home, there are additional rules that govern FHA condo loans. Here’s a list of commonly asked questions about FHA condo loans, and the answers to those questions. Is FHA condo project approval required for an FHA condo loan? Yes.
May 4, 2012
At the FHA official site, there is a page titled Avoiding Foreclosure. This page has a list of special programs and information on helping FHA borrowers avoid loan default and foreclosure. One such program is aimed at homeowners with qualifying FHA guaranteed mortgages who have lost their jobs. The program known as the FHA Special Forbearance Program was announced in July, 2011 and requires lenders to “extend the forbearance period for unemployed homeowners to 12 months. The changes to FHA
May 3, 2012
There are many options with FHA home loans, including something called the FHA Streamline 203(k), which the FHA official site describes as follows: “The ‘Streamline’ (K) Limited Repair Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.” This is good news for borrowers who know their FHA appraisal requires certain improvements or corrections–it’s an option to consider if there’s a sticking point in negotiating such changes with the seller. Additionally, “…like the regular Section 203(k) program, Streamlined (k) is available: To augment an FHA Energy Efficient Mortgage (EEM), To insure the | more...
May 2, 2012
One question about FHA home loans doesn’t usually come up unless someone in the FHA loan process is dissatisfied with the appraisal, but it’s a question asked often enough to be included in the FHA/HUD list of the most frequently asked questions: Who is responsible for the quality of an FHA appraisal? According to the FHA FAQ, “The lender is held responsible, equally with the appraiser, for the integrity, accuracy and thoroughness of an appraisal submitted to FHA for mortgage insurance purposes. FHA may pursue appropriate enforcement actions against both or either party for violations.” In Mortgagee Letter 2009-41, The FHA also says, “FHA requires that all appraisers performing appraisals of properties that will be security for FHA-insured financing be knowledgeable of FHA appraisal reporting requirements…” and, “Appraisals performed for | more...
May 2, 2012
A reader asks, “My loan is 635,000 and my home is appraised at 795,000.
May 1, 2012
Every spring and summer, we report on local communities that become eligible for federal disaster relief, including FHA loans, FHA foreclosure relief and other types of assistance for those who have had homes damaged by natural disasters. One of the most recent examples was our blog post on the relief efforts for those affected by storms in Hawaii, and unfortunately that likely won’t be the only such post we’ll have to make in coming months as tornado season and hurricane season for 2012 approach. What does the FHA offer those affected by natural disasters? There are many programs, but one of the most widely used is the FHA’s Mortgage Insurance for Disaster Victims, also known as a Section 203(h) loan. According to the FHA, “This program helps victims in presidentially | more...