Articles Published in: June 2016

June 6, 2016

Questions And Answers About FHA Refinance Loans

Refinancing a home loan can be just as big a decision as the original purchase of the home itself. It’s always a good idea to take extra time to plan, budget, and save up for any major loan, and a refinance loan is no exception. If you are considering your options for a home loan refinance, there are likely a number of questions you need answered as you prepare for the new loan. Here is a list of some common questions about FHA refinance loans that can help you get ready for your application. What refinance loan options are available from the FHA? FHA refinance loan options include cash-out and non-cash out refinancing. You can also apply for an FHA Streamline Refinance loan which uses your original application data in | more...

June 6, 2016

Mortgage Rate Trends: Lower After Jobs Report

By Joe Wallace

Ever since the Fed began discussing the possibility of another interest rate hike, we’ve seen upward pressure on mortgage loan interest rates. 30-year fixed rate conventional mortgage loan interest rates had fallen as low as 3.5% for some of the most competitive lenders (best execution) prior to that Fed talk, but once the upward movement began it wasn’t long before conventional rates began hitting 3.75% territory. During all this time, FHA mortgage loan rates held steady in a best execution range between 3.25% and 3.5%. As we frequently mention, FHA mortgage loan interest rates can and do vary more among participating lenders, so it pays to shop around. The FHA best execution range of rates mentioned here persisted even when conventional rates were going back and forth between a range | more...

June 3, 2016

FHA Loan Questions and Answers

By Joe Wallace

Tired of renting and looking to purchase a home of your own? There are many questions many first time home buyers or first time FHA loan applicants have. Here is a list of some of the most frequently asked questions about FHA mortgages. Is There An Income Limit For FHA Loans? No. FHA mortgages are not designed specifically for one type of financial situation or another. You cannot “earn too much” with the FHA single family home loan program. All wage earners are encouraged to explore their FHA loan options. Is There A First-Time Home Buyer Advantage Or Preference With FHA Mortgages? While an individual lender may offer certain perks for first-time home buyers, the FHA single family home loan program itself does not have a first time home buyer | more...

June 3, 2016

June Is National Home Ownership Month

By Joe Wallace

HUD announced National Home Ownership Month this week, and the entire month of June will include special efforts to raise awareness of how “homeownership enhances lives and contributes to thriving communities we call home” according to a HUD press release. ‘Dare to Own the Dream’ is the theme of this year’s campaign, “reinforcing the long-held belief that owning a home remains one of the cornerstones of the American Dream”. According to the press release, a lot of things have changed in the eight years of the Obama administration. “…the nations housing market was in free-fall, unemployment was rising and many families were left feeling trapped and anxious about their mortgages. He immediately took action to address these issues and to protect the middle class. The steps he took helped millions | more...

June 2, 2016

FHA 203h Loans For Disaster Victims

By Joe Wallace

Did you know the FHA offers a type of home loan specifically for those recovering from a disaster? The FHA 203h loan is described in HUD 4000.1 (the FHA loan rulebook for Single Family Mortgage loans and refinance loans) as follows: “Section 203(h) of the National Housing Act authorizes FHA to insure Mortgages to victims of a Presidentially-Declared Major Disaster Area (PDMDA) for the purchase or reconstruction of a Single Family Property. Mortgages to be insured under Section 203(h) must be processed and underwritten in accordance with the regulations and requirements applicable to the 203(b) program.” Borrowers must have a minimum FICO score of 500 to qualify under FHA loan guidelines, and lender standards may also apply. The FHA 203h loan rules include the following for eligibility. “The previous residence | more...

June 2, 2016

HUD Announces Housing Counseling Committee

By Joe Wallace

In many of our blog posts, we encourage borrowers to contact the FHA/HUD directly to seek a referral to a local, HUD-approved housing counselor. Pre-purchase counseling can be a very important part of the home loan application process, especially for borrowers who are new to the mortgage loan process. In some cases, as with FHA reverse mortgages/HECM loans, counseling is required as a condition of loan approval. Borrowers can contact the FHA/HUD directly to request housing counseling by calling 1-800 CALL FHA. And now, thanks to action by HUD in compliance with the Dodd-Frank Act of 2010, a new committee is looking into ways to expand and improve housing counseling. According to a press release at the HUD official site, on Wednesday June 1, 2016, “this advisory panel will help | more...

June 1, 2016

For FHA Borrowers Affected By Recent Floods

By Joe Wallace

If you have been affected by recent flooding in Texas, Mississippi, or elsewhere, there is important information from the FHA and other agencies you should know about that can help in the recovery following a natural disaster. Fair Housing Act laws are an often-overlooked aspect of disaster recovery. Did you know there is a complete section of the FHA official site that discusses Fair Housing Act law, intended to help inform survivors of a natural disaster? According to the FHA/HUD official site, “The aftermath of a disaster can be a time of loss and transition for individuals and communities. Housing discrimination is always illegal. Know your rights and respect the rights of others…” Home owners affected by floods or other natural disasters are often in need of rental housing while | more...

June 1, 2016

Mortgage Rate Trends: Holding For Now

By Joe Wallace

The two days before the holiday weekend, mortgage loan rates held steady or changed very little, depending on the lender. On Tuesday, the first business day of the week, we saw rates basically doing the same thing at the end of the day after some ups and downs; at the time of this writing best execution rates are where they have been, more or less, for about a week now. That means 30-year fixed rate conventional mortgages are at or near 3.75% best execution. The actual best execution number may vary depending on the lender, the time of day, etc. FHA mortgages are still in a best execution range between 3.25% and 3.5%. FHA rates tend to take longer to change than their conventional counterparts, but a dramatic move higher | more...