Articles Published in: August 2015

August 31, 2015

FHA Loan Rules: Divorce and Separations

We frequently handle reader questions in the comments section regarding FHA loan policies that affect borrowers going through a legal separation or divorce. In some cases, the questions have a lot to do with why a lender may require the spouse’s credit information or other details even though the couple is legally separated. One recent question addressed just that-the FHA loan applicant was being asked by the lender about spouse credit issues even though there was a legal judgment or ruling stating the couple was legally separated and not involved in joint credit or shared debt according to the terms of the legal agreement. Why would the lender, the reader wondered, still require the spouse’s financial or credit information? Unfortunately, there is no one specific answer to give. Some states | more...

August 31, 2015

FHA Loan Questions: Title Problems

By Joe Wallace

What follows should not be construed as legal advice. As a general rule, it’s a smart philosophy to seek legal advice for a lawyer and be wary of legal guidance from a non-lawyer. The best legal advice any non-lawyer can dispense is, “talk to a lawyer”. A reader got in touch recently with a question about FHA refinance loans. He asked about a situation where the bank’s title search uncovered a lien against the property from a third party. “…Title search showed that the property was also deeded to another person that had a lien on the property.” “We went to two trusted lawyers that advised us to file Bankruptcy because the other property owner was in trouble with the law and that the Title insurance we paid for was | more...

August 29, 2015

FHA Mortgage Loan Interest Rate Trends

By Joe Wallace

After three solid days of upward movement on interest rates for mortgage loans in general, Friday’s market activity was such that there was no general shift in rates either way–much of the differences seen in Friday’s interest rates would depend on the lender. According to our sources, some were slightly higher, others slightly lower. Some will notice higher or lower actual rates; others will notice the changes in the form of altered closing costs, depending on the lender. 30-year fixed-rate conventional mortgage loans remained in a best-execution range of rates between 3.875% ad 4.0% depending on the lender. FHA mortgage rates continued in their long-held best execution comfort zone of 3.75%. FHA rates tend to vary more among lenders than 30-year fixed rate conventional equivalents, so do some comparison shopping | more...

August 28, 2015

FHA Announces New Guidelines For Energy Efficient Upgrades

By Joe Wallace

The FHA has issued a press release announcing new guidelines for FHA borrowers who want to add energy-efficient upgrades to their homes. According to HUDNo.15-112, the announcement comes as part of the White House National Clean Energy Summit. The Obama Administration and FHA have new guidelines, “supporting borrowers seeking to make energy efficient improvements to their homes. In todays announcement, FHA expressed the intent to allow borrowers to use Single Family FHA financing for properties with existing Property Assessed Clean Energy (PACE) loans that meet certain conditions” according to the press release. These new tools will help homeowners make smart choices for their pocketbooks and for the environment, said HUD Secretary Julin Castro, quoted in the press release. Castro adds, HUD and the Obama Administration are proud to invest in | more...

Can I buy a manufactured home with an FHA loan?

August 28, 2015

FHA Loan Rules, Lender Standards, And Your FHA Loan Application

By Joe Wallace

Some of the most common questions we get asked in the comments section (where we field all our reader questions about FHA loans and refinance loans) involve what seem to be gray areas surrounding an FHA mortgage. For example, “Will a certain condition in the home make the property fail the FHA appraisal?” or, “How low can my FICO score be?” Some portions of the FHA loan process are dealt with specifically in FHA loan rules. For example, borrowers with FICO scores lower than 500 are not eligible for an FHA loan. Borrowers who are currently delinquent on Federal debts may have difficulty getting loan approval until the situation is resolved with payment or a payment plan. Certain types of conditions–homes located within a high pressure gas pipeline easement, for | more...

August 27, 2015

FHA Refinance Loan Choices

By Joe Wallace

When you’re thinking about refinancing an FHA mortgage loan, there are many options to consider. Should you stay with your original lender or does another lender have better terms and/or interest rates? Do you remain in your current adjustable rate mortgage or fixed-rate loan? Do you want cash back in the refinance loan transaction? All of these are important questions to ask. You don’t have to stay with the original lender you took out your first mortgage with; regardless of whether you have an existing FHA loan or a conventional mortgage or even an VA loan, refinancing into an FHA mortgage is definitely an option for you. Your original lender might be willing to offer you better terms since you’re already known at that financial institution, but it’s never safe | more...

August 27, 2015

FHA Mortgage Loan Interest Rate Trends: Creeping Higher

By Joe Wallace

You may have noticed we’ve been posting more this week on mortgage loan interest rate trends: overseas economic headlines from China and elsewhere have contributed to a volatile market environment that can definitely affect mortgage loan interest rates, so we’re posting more as the situation warrants. Mid-week, mortgage rates began creeping higher, but this time influenced by bond market activity–our sources point to a weak five-year Treasury auction that began putting upward pressure on mortgage loan rates in the afternoon on Wednesday, resulting in a range of best execution rates for 30-year fixed rate conventional mortgages between the previously reported 3.875% and 4.0%. Yes,we’re getting back into that old, familiar 4.0% zone, at least in the short term. FHA mortgage loan rates have not, best execution, budged from the 3.75% | more...

August 26, 2015

Choices To Consider For Your New FHA Home Loan

By Joe Wallace

Are you considering an FHA home loan? You’ve got plenty of options open to you, but sometimes it’s good to review those options to make sure you aren’t missing any potential avenues for savings or better opportunities. The choice of lenders is the first thing many borrowers think of when they consider their FHA loan options. It’s perfectly reasonable to consider using the bank you currently have to work with on an FHA loan, provided that company is a participating FHA lender. But what if your lender doesn’t offer FHA loans, or restricts their offerings to areas you aren’t currently interested in? Some borrowers want to finance condo loans, manufactured housing or mobile homes, etc. Does your lender offer loans for these purchases? Shopping around for a new lender is | more...

August 26, 2015

FHA Mortgage Rate Trends: Slightly Higher After Rough Stock Market Tuesday

By Joe Wallace

Mortgage loan rates weathered the stock market storm on Monday, but Tuesday’s market activity brought slightly higher rates. It’s been a tough time for those watching market activity hoping for a mortgage loan interest rate rally, but numbers are still sub-four percent (best execution) and we even saw reports of some lenders offering 30-year fixed rate conventional best execution rates as low as the FHA comfort zone rate (3.75%) on Monday. But rates edged higher on Tuesday, putting things more solidly into the previously reported 30-year fixed rate conventional mortgage loan rate of 3.875%-which is still prevalent at the time of this writing. Wednesday’s activity, at the time of this writing, hasn’t even emerged solidly, but it’s definitely going to be an interesting ride to the end of the week. | more...

August 26, 2015

FHA Home Loans For Veterans

By Joe Wallace

There are many home loan options for veterans of the United States military, including the VA loan program. But some veterans choose the FHA home loan program instead–there are many reasons why some might choose FHA over a VA loan, and for those who are considering the option, there are some important things to remember about the FHA mortgage loan or refinance loan program. The first is that FHA home loans and refinance loans offer many similar features to VA loans. For example, veterans applying for an FHA mortgage have the option of getting an Energy Efficient Mortgage (EEM) option added to the loan, much in the same way as the VA loan program. An FHA EEM requires the lender and borrower to work together to determine the cost effectiveness | more...