Articles Published in: January 2021

January 29, 2021

Foreclosure Relief Advice From The FDIC

The Federal Deposit Insurance Corporation or FDIC is the federal agency that is responsible for insuring public confidence in the American financial system. The agency issues advice and warnings to consumers (among many other things) to help them avoid scams and fraud associated with lending and banking. HUD recently announced extended foreclosure relief for borrowers affected by the global coronavirus pandemic. It’s a sad fact, but true, anytime home owners need mortgage relief the scammers begin coming out of the woodwork. And that has definitely been true in the past year with COVID-19-related scams, fraud, identity theft, etc. It is true that the lowest of the low prey upon families in need during times of national crisis, but you can avoid getting scammed. Follow the FDIC’s advice on how to | more...

January 28, 2021

Low FHA Mortgage Rates In 2021

By Joe Wallace

January of 2021 brought some anticipation about what might happen with home loan interest rates. Would conditions become less volatile and more stable? Would rates start to rise along with investor certainty in the markets that influence mortgage rates? Does fear and uncertainty persist in the new year? Some professional market watchers wrote (in the early days of January 2021) that mortgage rates got started this year minus volatility (at least early)…FHA loan rates on 30-year fixed-rate mortgages are reported in January 2021 below the three percent range–so far, fairly “typical” of what people have come to expect during the pandemic. At the time of this writing, you’ll find FHA mortgage loan interest rates are reported at 2.25% for “best execution” loans which have ideal conditions including a well-qualified borrower. | more...

January 26, 2021

FHA Loans And DACA

By Joe Wallace

The FHA and HUD have made a major announcement; FHA home loans are now available for those who are not U.S. citizens but who are living in the country under the protection of a program called Deferred Action on Childhood Arrivals (DACA). In 2012, President Barack Obama issued an executive order that basically replaced DACA legislation which had failed to pass in Congress. President Donald Trump attempted to overturn DACA protections but was rebuffed by the Supreme Court. Now, those living in the USA and protected under DACA laws have the ability to apply for an FHA home loan–something that wasn’t permitted in the past. Effective January 19, 2021, the FHA, “…is permitting individuals classified under the “Deferred Action for Childhood Arrivals” program (DACA) with the U.S. Citizenship & Immigration | more...

January 25, 2021

HUD Announces Extension Of FHA Loan Foreclosure / Eviction Moratorium

By Bruce Reichstein

A press release at the official site for the Department of Housing and Urban Development announces that the Biden Administration has “requested the U.S. Department of Housing and Urban Development and other Federal Agencies” extend the current COVID-related foreclosure and eviction moratorium for single family mortgages insured by the Federal Housing Administration. This request also affects loans guaranteed by the Office of Native American Programs’ Section 184 and 184A loan guarantee programs. At press time, and according to the press release, the moratorium is extended through March 31, 2021. The press release on the HUD official site states that this extension is, “one of the first Administration actions” that addresses the need for “meaningful support” to homeowners struggling with financial difficulty during the pandemic. “As President Biden promised, his new | more...

January 22, 2021

Do You Need To Refinance Your Home Loan?

By Joe Wallace

2021 may be a very good time for some home owners to consider their refinance options. At the time of this writing, FHA mortgage loan interest rates are reported at a best-execution (ideal qualifications assumed) 2.34% by multiple sources, and FHA loan limits are higher in 2021 too making this a very good year to consider an FHA loan (even if it’s not a refi). Should you refinance with an FHA mortgage? You can refinance an existing FHA loan or a non-FHA mortgage; do you want a more competitive interest rate? Perhaps you want to get out of an adjustable-rate loan and into a lower mortgage rate than a conventional loan? Here are some scenarios you should think about when considering the options. Refinancing To Get A Better Interest Rate | more...

January 21, 2021

Why You Should Consider A Limited 203(k) Rehab Loan

By Bruce Reichstein

Do you want to buy or refinance a fixer-upper home? The FHA 203(k) Rehabilitation loan and the FHA 203(k) Rehabilitation Refinance loan can help if you would rather buy a fixer-upper or renovate an existing home you’re living in as your primary residence. You don’t have to buy a property to use the FHA 203(k) rehab loan; you can use it to refinance your current home and get money to accomplish FHA and lender-approved improvements or other projects associated with remodeling or renovation. That said, not every borrower needs to fully refinance a home to repair or improve it. Are you thinking of smaller projects that don’t require a huge sum of money? The Limited 203(k) Rehab loan lets you accomplish smaller projects without committing to a full refinance or | more...

January 20, 2021

FHA Loan Interest Rates: January 2021

By Joe Wallace

The previous year was historic in many ways and the performance of home loan mortgage rates was no exception. They moved decisively below the three percent range and stayed there, moving higher occasionally but stubbornly resisting certain norms however temporarily. In 2021, people who write about mortgage loan interest rates note that while not directly tied to the performance of U.S.Treasuries, mortgage rates do trend together with Treasuries (typically speaking). In the opening month of the new year mortgage rates have not moved directly in tandem with the ups and downs of Treasuries, but that a correction of sorts has been predicted even before New Year’s Eve. That correction is coming–it’s safe to assume higher rates are in the future. What we don’t know is how long it will take | more...

January 19, 2021

Home Loans And Your Credit Score: The Cost Of Your Mortgage

By Joe Wallace

Did you know that credit scores affect more than the simple approval or denial of your mortgage? Your overall costs for the mortgage over the long term will depend in part on your FICO scores, as we’ll explore below. FICO Scores And Your Down Payment You have not one, but TWO FICO score standards to meet when you want to apply for a large loan such as a mortgage. The first standard is from the FHA itself (these are the FHA minimum requirements for the Single Family home loan program) and the second is your lender’s standards. Naturally these will vary from lender to lender. And your lender’s standards may or may not be higher than the FHA minimum. FHA FICO score minimums begin at 580 or better for maximum | more...

January 18, 2021

Celebrating Martin Luther King, Jr. Day

By Bruce Reichstein

Happy Martin Luther King, Jr. Day 2021! Banks and markets are closed today to observe the holiday and we too feel it’s very important to remember this important day. America owes a great deal to Dr. Martin Luther King, Jr. and we are proud to observe this day dedicated to him and his accomplishments. Today, we pause our regular coverage of FHA news and FHA loan topics to observe the holiday. We resume our usual schedule of posts tomorrow. Thanks for reading!

FHA Construction Loan Rule Changes In 2021

January 15, 2021

FHA And HUD Update Construction Loan Rules

By Bruce Reichstein

If you are in the market for a home but would prefer to have a house built to your specifications instead of buying another person’s dream home, the One-Time Close mortgage can help you build instead of buy. This type of loan has an FHA equivalent with low down payment requirements (3.5% in typical cases) and there’s also a VA home loan option for those with qualifying military service. The FHA and HUD recently updated its rulebook for FHA Construction loans; there are revised definitions of properties that qualify for construction loans as well as new inspection rules. Back in 2020, the FHA and HUD announced some pending changes to the FHA Single-Family Home Loan Lender’s Handbook, HUD 4000.1 due to policy alterations in 2018 and 2019. Those alterations required | more...