Articles Published in: September 2014

September 5, 2014

Property Taxes and Reverse Mortgages: A Reader Question

A reader got in touch with us recently with a lengthy question about reverse mortgages. We won’t reprint the entire message, but here are the relevant parts: “The Reverse Mortgage Company….(Lender name deleted) changed to (Lender name deleted) told us in Feb 2014 they would pay our property taxes for 2013 because we were struggling. As of today and 35 calls later they still have not paid them.Today for the first time I heard the words ‘redemption period’ She assured me we would be notified AGAIN as soon as they are paid and we can make arrangements to pay it back.” “We are close to the end of the year and id not paid by Dec. we are in trouble with our local tax bureau. I don’t understand what is | more...

September 4, 2014

FHA Loan Rules: Verification Of Employment

By Joe Wallace

When you apply for an FHA mortgage, your lender will need a variety of documentation from you about your income, assets, debts and employment. In fact, employment verification is one of the major steps in the FHA loan approval process. But how does your lender verify you are working with a current employer? According to the rules printed in HUD 4155.1, the lender will require a current pay statement and a written Verification of Employment (VOE). Not all FHA loan applicants may be able to furnish a written VOE, so the FHA loan rule book lists some acceptable alternatives. Chapter One, Section B states: “As an alternative to obtaining a written VOE, the lender may obtain the borrower’s • original pay stub(s) covering the most recent 30-day period, and • | more...

September 2, 2014

FHA Loans: Appraisals Versus Inspections

By Joe Wallace

A reader got in touch recently with the following: “I recently purchased a home with foundation issues. It was not required of me to get a home inspection buy the realtor. However it was required of me to get an appraisal by the realtor.” “It is unfortunate for me that I could not be there during the time of the appraisal, the real estate agent was there . It is also unfortunate for me that I did not survey the garage where the damages exist. Is it proper for a licensed real estate agent to sell property without disclosing foundation issues? I also got an FHA Loan to purchase this property.” It is true that FHA appraisals are required, and home inspections are not. However, no borrower should purchase a | more...

September 1, 2014

Happy Labor Day!

By Joe Wallace

Happy Labor Day! Banks and the markets that affect FHA mortgage rates are closed today. We pause from our usual posts about FHA home loans and answering reader questions to enjoy the holiday. Our regular post schedule resumes tomorrow, Tuesday September 2, 2014. Thanks for reading!