Articles Published in: September 2017

Credit Scores For An FHA Home Loan: When Low Credit Is Not Bad Credit

September 6, 2017

HUD Announces Disaster Relief Priorities For Survivors of Hurricane Harvey

HUD has announced disaster relief priorities for survivors of Hurricane Harvey, and those priorities include long-term housing needs for those displaced by the disaster. According to a press release published on the HUD official site, the Department of Housing and Urban Development is the “lead federal coordinating agency for long-term disaster-related housing needs resulting from Hurricane Harvey. Federal partners are working closely with the Texas state-led housing task force, as well as other state, local, tribal and voluntary agencies, to meet the need for quality affordable rental homes.” Post-Harvey disaster recovery efforts are, as you can see from the quote above, far-reaching. Those who have been displaced may be eligible for FEMA assistance, and HUD urges all in hurricane affected areas to contact FEMA to determine what they may be | more...

Who can apply for FHA Reverse Mortgages?

September 5, 2017

What Happens To My FHA Appraisal If I Switch Lenders?

By Bruce Reichstein

What happens to my FHA appraisal if I switch lenders? It does happen-sometimes a borrower starts with one company but decides to switch lenders. There are many reasons why this could happen; a better set of terms and conditions offered elsewhere, a change of mind, etc. It is definitely possible to switch participating FHA lenders before the transaction reaches a certain point, but what if the appraisal has already happened? FHA loan rules found in HUD 4000.1 anticipate such issues, and addresses them starting on page 127, which begins by saying that the lender is required to transfer the appraisal to the new lender within five business days. In cases where a Borrower has switched Mortgagees, the first Mortgagee must, at the Borrower’s request, transfer the appraisal to the second | more...

September 5, 2017

Why Is Peeling Paint A Problem For The FHA Appraisal?

By Joe Wallace

Why is peeling paint an issue for the FHA appraisal? Isn’t this just a cosmetic issue? That’s a very common question in some housing markets-those buying homes with FHA mortgages should know why this can be an issue that requires correction as a condition of FHA home loan approval. The Age Of The Property Is An Important Factor FHA loan rules specify that properties that have peeling paint issues have specific actions required depending on the age of the home. According to HUD 4000.1, the FHA loan handbook, “If the Property was built before 1978, the seller must disclose any information known about lead-based paint and lead-based paint hazards before selling the house, in accordance with the HUD-EPA Lead Disclosure Rule (24 CFR 35, subpart A, and the identical 40 | more...

September 4, 2017

Happy Labor Day!

By Bruce Reichstein

Happy Labor Day 2017! Today we pause from our usual schedule of posting about FHA home loans, FHA/HUD news, and refinance loan advice to observe the holiday. We’ll be back with our regularly scheduled posts tomorrow. Thank you for reading, and have a safe holiday!

September 1, 2017

What Kind Of Home Can I Buy With An FHA Loan?

By Bruce Reichstein

What kind of home can I buy with an FHA loan? That is an important question-not everyone is looking for a typical suburban home. Some people are interested in farm homes, condos, town homes or duplexes, or manufactured housing. What does the FHA loan handbook, HUD 4000.1, have to say about what can be purchased with an FHA mortgage? FHA Single Family Loans For Owner/Occupiers FHA single-family loans are intended for owner-occupiers who intend to use the home as their primary residence. There are some exceptions to this (we will cover those in another blog post), but for most transactions, borrowers must own/occupy the home as their main address. FHA Single Family Loans For Multi-Unit Properties Buyers can purchase homes they intend to occupy even if those homes have more | more...