Articles Published in: 2020

September 29, 2020

Gathering Your Home Loan Documents And Preparing For The Application

Are you interested in applying for an FHA home loan this year or in early 2021? If so, it’s handy to make a checklist of the items you will need to have ready to submit to your participating FHA lender. What do you need to complete submit your FHA mortgage loan application? The lender will need a variety of information from you including documentation related to your job, your credit, and your lender will also ask you for tax records. Some balk at being asked to provide federal tax return information, but this is a requirement of doing business with your lender for a major investment. What do you need to apply for an FHA home loan? Proof of employment Proof of income Tax records (be ready to submit two | more...

September 24, 2020

Is Your Credit Report Hurting Your Chances At Loan Approval?

By Joe Wallace

American consumers are entitled by law to a free credit report from each of the three credit reporting agencies. This is a valuable resource all potential home loan applicants should take advantage of as early as possible in the home loan planning stages. However, this is only a first step into a larger world. Credit monitoring is, in the age of hackers and rampant identity theft, a necessity for borrowers who want to make certain their credit will be enough to justify home loan approval. And credit monitoring is not the sort of thing you want to start late in the game–you’ll want to give yourself plenty of time to review your credit and work on it during the planning stages. How long should that planning be? Your home loan | more...

September 23, 2020

Getting Ready For An FHA Home Loan Refinance

By Joe Wallace

Are you interested in a lower mortgage payment or interest rate on your home loan? Are you looking to convert the equity you’ve built up in your home into cash? There are plenty of reasons to consider refinancing–do you need out of an adjustable-rate mortgage (ARM) and into a fixed-rate loan? All of these options are open to financially qualified borrowers who apply for an FHA refinance loan and you do NOT have to be a first-time homebuyer or first-time homeowner to be approved for an FHA refinance loan. Many of the same steps you took for your original home loan application are applicable when you begin planning to refinance your mortgage; you should pull your credit reports are early as possible in the planning stages. Many consumers find it | more...

September 21, 2020

Time Is Running Out On Exterior-Only FHA Appraisals

By Bruce Reichstein

In August 2020, the FHA and HUD issued an extension of their temporary exterior-only appraisal guidelines for borrowers applying for FHA mortgages and refinance loans. This measure, and others similar to it, came after the President declared a national emergency with respect to the coronavirus pandemic and, according to the FHA/HUD official site, “initiated actions to stem the threat to public health and the American economy.” On March 27, 2020, HUD published Mortgagee Letter 2020-05, authorizing “flexibilities to the re-verification of employment and Acceptable Appraisal Reporting Forms and Protocols by allowing exceptions for Exterior-Only and Desktop Appraisal inspections in certain transactions”. The original measures were issued in March of 2020 to allow FHA appraisers to perform their work on FHA mortgages without having to put themselves at risk of COVID-19 | more...

September 18, 2020

FHA And HUD Announce Mortgage Loan Disaster Relief For Borrowers In Oregon

By Joe Wallace

The FHA and HUD have announced disaster relief for home owners with FHA mortgages in the recently-declared federal disaster areas there. Wildfires have destroyed massive amounts of property in the state of Orgeon and other areas in the western part of the United States; affected states have been reviewed for federal disaster declarations as a result. The U.S. Department of Housing and Urban Development has announced disaster relief for FHA borrowers for the following Oregon counties. Clackamas Douglas Jackson Klamath, Lane Lincoln Linn Marion The federal disaster declaration means HUD can offer foreclosure relief to FHA borrowers. That relief starts with foreclosure relief in the form of a 90-day moratorium on foreclosure actions on affected borrowers, and there is also help with FHA loans to repair or replace homes damaged | more...

Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

September 17, 2020

Does FHA Offer Adjustable Rate Mortgages?

By Bruce Reichstein

Does FHA offer adjustable rate mortgages? When you shop around for a participating FHA lender, be sure to ask about this type of FHA loan, sometimes known as an FHA ARM. Not all participating lenders may offer an FHA adjustable rate mortgage, but for those working with a lender that does, it is important to know some basics about the mortgage and how FHA loan rules govern the adjustments in the interest rates. Borrowers who apply for an FHA ARM loan must sign a disclosure statement that outlines the terms and conditions of the mortgage. The rules that govern FHA ARM loans are found in HUD 4000.1, and those rules begin with a definition of what the FHA considers to be an ARM loan. “An Adjustable Rate Mortgage (ARM) refers | more...

September 16, 2020

New FHA Home Loan Guidelines Announced

By Joe Wallace

The FHA and HUD have written permanent new COVID-19-related loan approval guidelines for those who need to apply for an FHA mortgage but come to the home loan application process with a previous mortgage forbearance. Ever since the coronavirus emergency came to the United States, the FHA and HUD have offered borrowers mortgage relief, and now that relief and measures similar to it won’t be a liability for those who need to apply for a new FHA mortgage. Other forms of coronavirus relief have been temporary but not this time. The new rules announced by the FHA are announced as a permanent modification to FHA loan rules that instruct the lender on how to approve new mortgage loan applications for borrowers who have applied for home loan forbearance in the | more...

September 15, 2020

Is A Property Eligible for an FHA Mortgage Loan If It Has Asbestos?

By Bruce Reichstein

Borrowers interested in purchasing older properties using an FHA insured mortgage could face several challenges depending on the nature of the property. For example, some buildings insulated or otherwise constructed with asbestos products could pose a health hazard. FHA rules include minimum property requirements for safety, which address situations like these. Is a property eligible for an FHA loan if it has asbestos in it?

September 14, 2020

FHA Refinance Loan Tips

By Joe Wallace

During the COVID-19 pandemic, many borrowers took advantage of foreclosure moratoriums and other financial relief measures to save their homes from going into mortgage default. Other borrowers may choose to explore their refinancing options to get a lower interest rate or other advantages that can help them financially over the long term. If you are thinking about a refinance loan, there are some tips you should know that can help you make the most informed choice about refinancing. Remember that there are many different options if you want to refinance a home loan. Cash-out refinancing is one option, borrowers can also select no cash-out versions and a borrower with an existing FHA mortgage may find a benefit using something called the FHA Streamline Refinance, which has no FHA-required appraisal or | more...

September 10, 2020

FHA Appraisal Rules: What You Should Know

By Bruce Reichstein

The FHA appraisal process is a requirement. You can’t purchase a home with an FHA mortgage unless there has been an appraisal on the property to determine the fair market value of the home and to ensure the property meets FHA minimum standards. Today’s appraisal standards for FHA home loans do NOT include stepping out onto the roof or physically entering difficult-to-access spaces, which is why you should never purchase a home without arranging a home inspection. The appraisal requirements for your home purchase can be found in HUD 4000.1. These requirements apply to proposed construction, new construction, and existing construction properties. According to HUD 4000.1, “The Mortgagee must evaluate the appraisal and any supporting documentation to determine if the Property complies with HUDs Property Acceptability Criteria. Existing and New | more...