Articles Published in: 2017

September 7, 2017

Do FHA Home Loan Limits Change?

Do FHA home loan limits change? Borrowers who want to know what the FHA loan limits for a given housing market might be have to contend with the possibility of changing limits depending on what time of year they are house hunting. How FHA Loan Limits Work The Federal Housing Administration calculates new purchase mortgage loan limits based on “the median house prices in accordance with the National Housing Act” according to the FHA official site. “FHA’s Single Family forward mortgage limits are set by Metropolitan Statistical Area (MSA) and county and are published periodically.” FHA publishes updated home loan limits for forward mortgages and reverse mortgages on a yearly basis. The FHA official site states, “FHA sets these limits at or between the low cost area and high cost | more...

September 6, 2017

Can Military Members Apply For FHA Mortgages?

By Joe Wallace

Can military members apply for FHA mortgages? There are plenty of reasons why a currently serving military member, retiree, or veteran might want to explore FHA mortgage loan options. One reason? Borrowers who have purchased property with a VA mortgage but want to buy a new primary residence might choose to explore FHA loan options rather than try to have VA loan eligibility renewed. A borrower may wish to save their VA options for later, and turn to FHA mortgages instead thanks to some similarities between both programs including Streamline Refinance loan options. What do FHA loan rules say about military members and their ability to use FHA loans instead of VA mortgage loan options? One issue with FHA loans is the occupancy requirement. Borrowers are required to occupy the | more...

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

By Bruce Reichstein

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...

August 31, 2017

Can I Get An FHA Home Loan If I Owe Back Taxes?

By Bruce Reichstein

Can I get an FHA home loan if I owe back taxes? The answer to this question depends on more than one factor, the most important being whether or not the borrower is delinquent on the taxes owed. In general, borrowers who come to the home loan process with delinquent accounts will find it difficult to get loan approval. Borrowers should expect to come to the FHA home loan process with a minimum of 12 months of on-time payments for all financial obligations. That said, disputed accounts and/or issues connected to identity theft may have different requirements (police reports, documentation of the issues, etc.) When it comes to taxes, FHA loan rules emphasize the requirement to be in a satisfactory payment arrangement with the creditor and a minimum period of | more...

August 30, 2017

What Are My FHA Refinance Options?

By Joe Wallace

What are my FHA refinance options? That question, fortunately, has many answers depending on whether you need to refinance an existing FHA mortgage or refinance a non-FHA loan. The options include cash-out and no-cash out refinancing for both FHA and non-FHA loans, plus rehab mortgage options and more. Cash-Out and No Cash-Out FHA Refinance Loans FHA refinancing is possible with cash-out or no cash-out loans no matter what kind of mortgage you currently have-FHA, conventional, VA, or other non-FHA mortgage. Borrowers do not have to stay with the original lender for these refinance loan transactions. You are free to shop for a new participating FHA lender to refinance. Cash-out and no cash-out refinance loans will require a new credit check and appraisal. FHA Streamline Refinancing This type of FHA refinance | more...

August 30, 2017

FHA Loans And Natural Disasters: What You Should Know

By Bruce Reichstein

FHA home loans can be affected by natural disasters such as Hurricane Harvey. Whether you have experienced damage to your property due to high winds, flooding, or other issues, once that damage has been done you will need to deal with your mortgage lender, your insurance company, and other agencies. Some borrowers may need financial relief in the form of loan forbearance, foreclosure avoidance or other measures. The FHA loan handbook, HUD 4000.1, has a section heading titled “Loss Mitigation” which is all about foreclosure avoidance and options borrowers may have to save their homes. Those options include what happens after a natural disaster, starting with a 90-day moratorium on foreclosures based on circumstances outlined below: “FHA-insured Mortgages secured by Properties located in Presidentially-Declared Major Disaster Areas (PDMDA) will be | more...