Articles Published in: October 2015

October 2, 2015

Mortgage Rates: Lower Ahead Of Jobs Data

At the end of the business day on Thursday, mortgage loan rates had fallen again, making a fourth straight day this week of improvement ahead of today’s (Friday) jobs report. That report (the “Employment Situation Report”) has the potential to move rates in either direction depending on the contents of that report and investor reaction to it. Borrowers who have been floating up to this point–not making an interest rate lock decision/agreement with the lender–should know that while there’s always a risk associated with floating, the risk increases with scheduled economic data releases like this one. Best advice if you aren’t sure–ask your lender which way he or she thinks the wind is blowing, so to speak, with rates at the moment. The numbers are very good at this point | more...

October 1, 2015

HUD 4000.1 Appraisal Requirements: Safety Hazards

By Joe Wallace

With the publication of HUD 4000.1, the new FHA Single Family Home Loan policy handbook, we’ve been addressing certain rules and regulations found in the new rules to help borrowers and lenders alike understand official policy, updates, changes, and restatements of previous regulations as published by the FHA/HUD. FHA appraisals are also affected by the new handbook. One area that contains crucial information about the appraisal process is the section of FHA appraisal rules that govern safety/environmental hazards as might be found during the appraiser’s review of a property to be purchased with an FHA mortgage. In some cases, you may notice some additional features to this section, and revised language that gives more clarity or guidance for appraisers and lenders. From HUD 4000.1 Section II Part B: “The Appraiser | more...

October 1, 2015

FHA Loan Reader Questions: Occupancy

By Bruce Reichstein

One common question many potential borrowers have about FHA mortgage loans has to do with the FHA’s occupancy requirement. One reader asked us recently, “What is the definition of Occupancy defined by FHA? Does using the space as an office suffice?” FHA single family home loans are only for residential purposes. Borrowers are permitted to use a portion of the property they buy with an FHA loan for business purposes, but the non-residential use of the property cannot exceed 25% of the total floor space of the home. FHA loan occupancy requirements state that the borrower must intend to use the home as the primary residence for at least one year. That means the borrower must move in and take possession of the property within a reasonable amount of | more...

October 1, 2015

Mortgage Rate Trends: A Week Marked by Improvements So Far

By Joe Wallace

It’s been a week full of downward movement for mortgage loan rates; Wednesday at the end of the market day rates were being reported in lows we haven’t seen for months. 30-year fixed rate conventional loans are in a range (best execution) between 3.75% and 3.875% at the time of this writing. We haven’t seen conventional loan rates come near 3.75% for some time now and if the downward trend continues we could see this range persist or move closer to 3.75% for more extremely well qualified borrowers. FHA mortgage rates, which have long stayed in a 3.75% comfort zone, have finally broken out of that in favor of a range of best execution rates between 3.5% and 3.75%. Remember, FHA rates can vary more among participating lenders than their | more...