Articles Published in: February 2015

February 17, 2015

FHA Loan Questions: Student Loans, Delinquency, and Credit Reports

A reader asks, “I co signed a student loan in 2004 and the student loan went delinquent on February 2008. When will it come off my credit report? And will I be able to apply for a fha loan after it comes off?” To get the answer about when a student loan delinquency might come off a credit report, the reader will need to contact the credit reporting agencies to see what standards may apply. There are three major credit reporting agencies and a potential borrower would need to contact all three. The agencies are Equifax, Experian, and TransUnion. If the borrower’s credit rating is sufficient, and the derogatory credit information no longer shows up on the credit report, it’s entirely possible that the borrower might be able to successfully | more...

February 16, 2015

Happy Presidents Day!

By Joe Wallace

Today is Presidents Day, which means that many banks are closed, plus the stock market and many schools. Today we pause from our reporting on FHA home loan news, answering reader questions and giving advice on FHA loans to observe the holiday. Our regularly scheduled posts return tomorrow after the holiday. Thank you for reading! -The FHANewsBlog.com staff.

February 14, 2015

FHA/HUD Update Housing Counseling Requirements

By Joe Wallace

The FHA and HUD have issued a Mortgagee Letter updating housing counseling requirements for borrowers who may face delinquency on an FHA home loan. According to FHA Mortgagee Letter 2015-4, ‘Revised Notification to Homeowners of Availability of Housing Counseling Services”, there is updated content and, “a model template for the notice of the availability of HUD-approved housing counseling.” “The ‘Notification to Homeowners of Availability of Housing Counseling Services’ provides a description of the potential services and benefits of housing counseling to delinquent borrowers.” According to the mortgagee letter, lenders must provide delinquent borrowers, “with a notice describing the availability of housing counseling offered by HUD-approved housing counseling agencies and by the mortgagee.” According to the FHA official site, lenders are “currently required to prepare such a notice that provides the | more...

February 13, 2015

FHA Loans For Properties Served By Cisterns: A Reader Question

By Joe Wallace

A reader asks, “How do we get a fha loan for homes on cisterns, They are common for our area 81082. Can they be certified and inspected and to what standard? and by who?” This reader question comes in response in the comments section to an earlier post we wrote titled, FHA Loan Reader Questions: Cisterns which includes the following information: “FHA loan rules state that a cistern–basically a water tank using the classic definition of the word–is unacceptable. However, in certain cases a waiver may be applied for in situations the FHA defines as those where cistern use is common.” “Such waivers are not automatic and a borrower in need of such a waiver should call the FHA at 1-800 CALL FHA to learn how to apply, or discuss | more...

February 13, 2015

FHA Loan Questions: Late Payments

By Joe Wallace

A reader asks, “As a co-borrower on a home for my daughter-in-law, I was never notified by the mortgage company that loan was late. DIL told that as long as she was in repayment, they would not report late. What do I do?” FHA loan rules can’t address all circumstances, and there are some areas involving an FHA loan that depend strictly on the arrangements made between the borrowers and the lender. When it comes to co-borrowing, any occupying or non-occupying co-borrower who needs to be kept in the loop with regard to the status of the mortgage (payments made, payments missed, etc) may need to make prior arrangements with the lender. This may be crucial when it comes to late or missed payments–how is the co-borrower to know the | more...

February 12, 2015

Fair Housing: FHA Equal Access Rules Updated

By Joe Wallace

Recently we posted about the FHA/HUD announcement regarding the updates to Equal Access rules. Among the changes announced recently by the FHA and HUD are the following updates: “A determination of eligibility for housing that is assisted by HUD or subject to a mortgage insured by the Federal Housing Administration shall be made in accordance with the eligibility requirements provided for such program by HUD, and such housing shall be made available without regard to actual or perceived sexual orientation, gender identity, or marital status”. Additionally the FHA and HUD clarified: “No owner or administrator of HUD-assisted or HUD-insured housing, approved lender in an FHA mortgage insurance program, or any other recipient or sub-recipient of HUD funds may inquire about the sexual orientation or gender identity of an applicant for, | more...

February 12, 2015

FHA Mortgage Loan Interest Rate Trends: Moving Higher

By Joe Wallace

FHA mortgage rates have been trending higher this week, with pressure on rates bringing 30-year fixed rate conventional mortgages up slightly higher every day in February so far. Bond markets and overseas economic news about the European Central Bank have contributed to those rates moving higher, but all the while, FHA mortgage loan rates have remained in a best-execution comfort zone of 3.25%. But that changed on Tuesday after significant upward pressure that changed conventional rates finally pushed FHA mortgage loan rates higher–now found at the time of this writing in a range between 3.25% and 3.5% for the most qualified FHA loan applicants. Best execution rates are not available to all borrowers or from all lenders. Your FICO scores, loan repayment history and other factors will determine your access | more...

February 12, 2015

FHA Loan Minimum Property Requirements: Tripping Hazards On The Property

By Joe Wallace

A reader asks, “What are regulations on trip hazards? I have a listing where the tree roots lifted up the driveway quite a bit. The tree has been removed, but roots and buckled blacktop drive still there.” FHA minimum property requirements don’t cover each and every situation where corrections might need to be made to the property in order for it to meet standards–in many cases the FHA minimum requirement includes a general rule that may be reinforced by state and/or local building code. According to the FHA/HUD official site, “HUD requires that each property insured with an FHA mortgage meet one of the nationally recognized building codes or a State or local building code based on a nationally recognized building code. In areas where such State or local codes | more...

February 11, 2015

FHA Loan Reader Questions: Buying A Home “Under False Pretenses”?

By Joe Wallace

A reader asks, “I was trying to get answers on what to do if you have brought an house under false pretenses… There’s alot of issues with the house that wasn’t disclosed in the property disclosure form.” FHA home loans require an appraisal as a condition of loan approval. The appraisal establishes the fair market value of the home, but it also insures the home for sale meets FHA minimum property requirements. However, passing the FHA appraisal process is not a stamp of approval from the FHA nor is it a guarantee that a home is free from defects. Borrowers are strongly encouraged by the FHA and by real estate experts to pay for a home inspection prior to committing to the sale of a property. The home inspection, when | more...

February 11, 2015

FHA/HUD Update “Equal Access” Rules

By Joe Wallace

The FHA and HUD have issued a new mortgagee letter updating the FHA/HUD policy of equal access for all FHA/HUD programs. FHA Mortgagee Letter 2015-05, “Notice of Program Eligibility for HUD Insured Housing Programs for All People Regardless of Sexual Orientation, Gender Identity or Marital Status as Required by HUD’s Equal Access Rule” contains some very important updates since the original equal access guidelines were published back in 2012. According to the Mortgagee Letter, “On February 3, 2012, HUD published a final rule entitled Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity (77 FR5662) (“Equal Access Rule or “rule”). The final rule ensures that housing across HUD programs are open to all eligible individuals regardless of actual or perceived sexual orientation, gender identity, or | more...