Articles Published in: July 2012

July 9, 2012

FHA Loan Reader Question: Condo Approval

A reader asks, “I own one of the eight units in a condominium building. Where can I find the procedures to qualify the building for FHA approval ? Several of the owners want to sell their units and having FHA financing available for the potential buyers would be a great help.” In 2009, FHA loan rules for condo approval were changed. According to FHA Mortgagee Letter 2009-19, the the Housing and Economic Recovery Act (HERA) of 2008 fave the FHA the ability to modify approval procedures for condo projects: “FHA will now allow lenders to determine project eligibility, review project documentation, and certify to compliance of Section 203(b) of the NHA and 24 CFR 203 of HUD

July 6, 2012

FHA Announces Disaster Relief For Tropical Storm Debbie Victims

By Joe Wallace

A press release found on the FHA official site announces federal disaster assistance for victims of Tropical Storm Debbie in the state of Florida. According to HUDNo.12-110, President Obama has issued disaster declarations in several counties including Baker, Bradford, Clay, Columbia, Franklin, Hernando, Highlands, Pasco, Pinellas, Suwannee, and Wakulla. The President

July 5, 2012

FHA 203(b) Home Loans: How Do They Work?

By Joe Wallace

If you’re a first time home buyer interested in getting an FHA loan, there are several options you can choose from when you’re ready to commit to buying a home. Home loan experts recommend preparing for any new home purchase at least a year in advance so you have time to save money for the costs of the loan you need to pay up front, examine your credit score, and reduce any unnecessary open lines of credit. Once you’re ready to start house hunting, you have options that include getting pre-qualified for an FHA loan amount, or finding a suitable home and applying for the loan once you’ve made your choice. FHA loans work because participating lenders offer mortgage loans to qualified borrowers. The FHA itself does not lend the | more...

July 4, 2012

FHA Appraisal Expiration Dates: Questions and Answers

By Joe Wallace

When buying a home with an FHA guaranteed mortgage loan, one of the most important steps in the process is the appraisal. An FHA appraiser reviews the home to make sure it lives up to minimum property requirements and assigns a fair market value to the property. There are many common questions about FHA appraisals; here are some of them along with the answers. How Long Is An FHA Appraisal Valid? Buyers who purchased property prior to January 1, 2010 may have experienced a different set of standards, but currently, FHA appraisals are considered valid for 120 days. After that time they expire. According to FHA.gov, “Effective for all case numbers assigned on or after January 1, 2010 the validity period for all appraisals on existing, proposed, and under construction | more...

July 4, 2012

FHA Loan Questions: What are the Rules for a Non-Occupying Co-Borrower?

By Joe Wallace

FHA loans require the primary borrower to certify he or she will live on the property, using it as the “primary residence”. But FHA loans allow the option for a non-occupying co-borrower–someone who will be financially obligated on the loan but does not live on the property. FHA loan rules, as spelled out in HUD 4155.1 Chapter Two Section B, say of these types of FHA loan transactions: “When there are two or more borrowers, but one or more will not occupy the property as his/her principal residence, the maximum mortgage is limited to 75% loan-to-value (LTV). However, maximum financing, as described in HUD 4155.1 2.A.2, is available for

July 3, 2012

FHA Loans and Fair Housing Act Enforcement

By Joe Wallace

All lenders, including those who participate in the FHA loan program, are required to comply with Fair Housing Act laws. But in some cases the first line of defense against discrimination is with the borrower who files a complaint after receiving discriminatory treatment in violation of the Fair Housing Act. Fair Housing laws prohibits housing discrimination based on race, color, religion, national origin, sex, disability, or familial status. Borrowers who feel they’ve been discriminated against at any stage of the home buying process should report their complaints as instructed on the FHA official site, which says: “Email or contact us at (800)669-9777 and for the hearing impaired, please call TTY (800)927-9275″. Did you know there is support for such complaints in a variety of languages? Borrowers can find help in | more...

July 2, 2012

FHA Loan Assistance For Colorado Wildfire Victims

By Joe Wallace

The FHA has announced federal assistance for victims of Colorado wildfires living in two federally declared disaster areas. According to a HUD press release, HUDno.12-108, President Obama issued a disaster declaration for El Paso and Larimer Counties. “The President