Articles Published in: 2017

November 20, 2017

HUD To Provide $5 Billion For Hurricane Harvey Recovery In Texas

The Department of Housing and Urban Development (HUD) has announced a multi-billion dollar pledge to help Texas recover from Hurricane Harvey. According to a press release on the HUD official site, the funds will “support the repair of damaged homes, businesses and critical infrastructure in the State.” According to the press release, the funds are possible via the Continuing Appropriations Act, 2018 and the Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2017. This “appropriated $7.4 billion in CDBG-DR funding for major disasters declared in calendar year 2017. To distribute these funds, the Act requires HUD to direct the funds to the areas most impacted by qualifying disasters.” The press release adds that HUD will announce additional grants “to other jurisdictions as more data become available on the unmet needs | more...

November 17, 2017

How Much Is My FHA Home Loan Down Payment?

By Bruce Reichstein

What is my FHA home loan down payment? It’s an important question to ask as early as possible in the home loan planning process. You will need to save up for an FHA loan down payment and there are a few variables that will factor in when it comes time to calculate that down payment. Do you know what they are? FHA Home Loan Down Payments Are Not A Fixed Amount The dollar amount of the required FHA loan down payment is not standardized for all home loans. Borrowers should know that the down payment is calculated based on several factors including the adjusted value of the property, credit scores, and lender standards. FHA Home Loan Down Payments Have A Minimum Requirement The lowest down payment a borrower is legally | more...

November 17, 2017

HUD Charges Kansas Property Owners With Fair Housing Violations

By Joe Wallace

The Department of Housing and Urban Development (HUD) is charging a Kansas landlord with Fair Housing Act violations after allegations of sexual harassment. According to a press release on the HUD official site, the agency “announced today it is charging the owner and landlord of several rental properties in Wichita, Kansas, and his wife, who co-owned one of the properties, with housing discrimination after the landlord allegedly sexually harassed two female tenants at his properties. HUD’s charge further alleges that he also made discriminatory statements based on one of the women’s race”. The Fair Housing Act prohibits a wide range of discriminatory practices in housing including sexual harassment. According to the HUD official site, it is a violation of Fair Housing laws to “discriminate against individuals on the basis of | more...

November 16, 2017

Do FHA Loan Requirements Change Each Year?

By Bruce Reichstein

Do FHA loan requirements change each year? This area can be a bit confusing because some aspects of the FHA loan program have changed in recent years, and some things are updated on a yearly basis. But the basic structure of the FHA loan program including FICO score minimums, appraisal rules, and occupancy requirements? These do not change from year to year. Do FHA Loan Rules Are In HUD 4000.1 Change Annually? HUD 4000.1 is the FHA Single Family Home Loan Handbook. It contains all the basic rules and requirements for FHA home loans. It lists the FICO score requirements, loan repayment history rules, debt-to-income ratio guidelines and other issues that affect FHA loan approval. These requirements do not change from year to year, but are subject to revision based | more...

November 16, 2017

What Should I Know About FHA Loan Requirements?

By Joe Wallace

What should I know about FHA loan requirements? The first thing to keep in mind is that no single factor determines your ability to borrow. Your FICO score is an important part of the loan approval process, but it’s not the only thing you will need to pay attention to in the 12 months leading up to your loan application. FHA Loan Approval Requirements FHA loan standards include a review of your FICO scores to determine whether you are eligible for maximum financing with a 3.5% minimum down payment. Those with FICO scores at 580 or higher are technically eligible for maximum financing. However, this is the FHA loan program minimum standard and your lender may have higher FICO score requirements. FICO scores affect your down payment, interest rate offerings, | more...

November 15, 2017

Do The Same FHA Loan Requirements Apply To All Borrowers? Part Two

By Bruce Reichstein

Do the same FHA loan requirements apply to all borrowers? We have been examining that question in recent posts. FHA home loan rules were written to accommodate a variety of circumstances. There’s no true “one size fits all” home loan, so there are different regulations for different situations. The basic standards apply to all, but there are situational factors where some rules apply to certain borrowers that won’t apply to others. But what does this mean? FHA FICO Score Requirements Borrowers with qualifying FICO scores are eligible for maximum financing, which would include a minimum 3.5% down payment based on the adjusted value of the property. But the rules change for those who do not have FICO scores that meet the minimum requirement. Those with FICO scores below 580 will | more...

November 15, 2017

Do The Same FHA Loan Requirements Apply to All Borrowers?

By Joe Wallace

Do the same FHA loan requirements apply to all borrowers? This is a complex question, and the answer depends greatly on whether credit issues are being discussed or whether general requirements for loan approval outside FICO scores are the topic. What’s the difference? Basically, FHA loan rules apply for all borrowers when it comes to the basic minimum requirements, standards, and verification processes for a certain type of mortgage. If you apply for a new purchase mortgage, those basic requirements will affect your transaction. But the basic requirements for an FHA reverse mortgage are not the same as those for a new purchase loan and so there are different standards for that type of loan including an age requirement. FHA reverse mortgages are only for qualified borrowers age 62 or | more...

November 14, 2017

Do First Time Home Buyers Have Different FHA Loan Requirements? Part Two

By Bruce Reichstein

Do first time home buyers have different FHA loan requirements than those who have owned a home before? The short answer is no-FHA mortgages do not have different terms or requirements for different types of borrowers. First time home buyers may find that an individual lender or financial institution offers incentives for first time buyers, but these programs are not mandated or regulated by the FHA. The FHA loan FICO score minimum requirements, appraisal rules, regulations governing verification of down payment funds and other requirements are identical no matter who is applying. That is not to say that FICO scores and other financial qualifications don’t change how an FHA mortgage loan is handled-in that area borrowers will find different requirements depending on whether the borrower is deemed a good credit | more...

November 14, 2017

Do First Time Home Buyers Have Different FHA Loan Requirements?

By Joe Wallace

Do first time home buyers have different FHA loan requirements? This question is tricky because it’s easy to forget that there are FHA loan requirements but lender standards, state law, and other factors will also have a say in how your home loan is handled. What follows is a discussion about FHA loan program requirements-you may find that your chosen participating lender has additional rules and procedures which also must be followed. FHA Home Loans Are Not Just For First-Time Home Buyers The FHA home loan program is not specifically designed for one type of borrower. That means that borrowers across a diverse range of home owning experience, income brackets, and careers may be eligible for an FHA mortgage, refinance loan, or reverse mortgage. The fact that you have owned | more...

November 13, 2017

Does FHA Have A Disaster Loan Program?

By Bruce Reichstein

Does FHA have a disaster loan program? The short answer is yes, and it is quite different than a standard FHA forward mortgage. The FHA 203(h) loan is available as a new purchase mortgage or a refinance loan. In this case “new purchase” may lead some to believe you are only allowed to buy a new home with an FHA 203(h), but the reality is that you can use the 203(h) to rehab an existing damaged home, or purchase a replacement home. FHA 203(h) Disaster Loans: Unique Requirements FHA 203(h) disaster loans are only approved for those who are in federally-declared disaster areas. You cannot be approved for an FHA 203K(h) mortgage if you are not in a one of the official presidentially-declared federal disaster areas. You can check the | more...