Articles Published in: December 2021

December 31, 2021

Things To Consider: FHA Loans In 2022

What do you need to know about home loans in 2022? There are a few things to keep in mind that may affect your planning and choices about a new mortgage or refi loan. Here are some issues to think about going into the new year: FHA Loan Limits Are Higher In 2022 FHA loan limits go up in most markets, but there are some areas where the limits may not necessarily change. Keep in mind that there are high-cost markets AND low-cost housing markets. \Depending on where you are house hunting the limits may be different than what you are used to–it’s a great idea to check the limits ahead of time to get an idea of what to expect. Interest Rates May Rise In 2022 With the Fed | more...

December 30, 2021

Qualifying For An FHA Loan Or Refinance Loan

By Joe Wallace

FHA home loans and refinance loans feature similar requirements in terms of FICO scores, credit history, and responsible credit use. When you want to refinance a home loan, it’s smart to treat the process exactly the same as you did when you applied for your first mortgage where applicable. But not all borrowers have the luxury of taking a year or more to plan and save for the loan. Some must act quickly because their homes have been damaged or destroyed in a natural disaster, or they have a job-related relocation or some other issue that requires a faster approach to the loan. Some borrowers need a new purchase loan; a job relocation or an increase in family size may warrant buying a larger home. Knowing the FHA loan policy | more...

December 29, 2021

HUD Announces Settlement In California Fair Housing Case

By Joe Wallace

The FHA and HUD have announced a voluntary settlement agreement in a Fair Housing Act complaint in California. A press release on the HUD official site announces a Conciliation/Voluntary Compliance Agreement with National Community Renaissance, National Community Renaissance of California, Desert Meadows Housing Partners, Victorville Housing Partners, and Cathedral Family Housing Partners, management agents, and owners of four HUD-subsidized apartment complexes in Southern California. The agreement is meant to close the book on complaints that the property managers “refused to rent to or provide adequate language services for applicants with limited English proficiency (LEP)” according to the HUD official site. The Fair Housing Act makes it illegal for housing providers to discriminate because of national origin at any stage in the housing process. Furthermore, the Civil Rights Act contains additional | more...

December 28, 2021

Don’t Get Scammed When Refinancing Your FHA Mortgage

By Joe Wallace

Are you considering an FHA Cash-Out Refinance loan in 2022? What about your options under the FHA Streamline Refinance program or the Home Equity Conversion Mortgage option for qualifying borrowers aged 62 or older? Each of the refinance loan options above could be used as a tool by scammers to try to fool you into paying money to someone other than your lender. All it takes is a “spoofed” e-mail that looks like it came from a legitimate source or a text message from a number you don’t recognize and some people are on the hook. Others know to look for the signs of a scam and avoid trouble by spotting the signs. How many unsolicited e-mails, junk mail, and robocalls do you get each month associated with some kind | more...

December 27, 2021

FHA Refinance Loan Options In 2022: FHA Cash-Out Refi

By Joe Wallace

How prepared are you to apply for an FHA Cash-Out Refinance loan? Some borrowers don’t realize that some FHA refinance options require more preparation than others. FHA Cash-Out loans have an FHA-required credit check and appraisal; saving for these expenses and your closing costs is a smart idea to maximize your borrowing power and keep your monthly payments lower. Financing your allowable closing costs may hike your mortgage payments; smart borrowers try to decide in advance how high the payment can go before it is too high. What does it take to qualify for an FHA Cash-Out Refinance and get your application approved? Aside from the basics like FICO scores and your record of on-time payments, you will need to have lived in the home as your primary residence for | more...

December 23, 2021

FHA Loan Applications In 2022

By Joe Wallace

Are you one of the many house hunters planning on filling out FHA loan applications for 2022? Are you ready to apply? Here are some tips to help you determine how close you might be to the application stage of a new FHA mortgage. Credit Reports Do you know the contents of your credit reports? Do you know your FICO scores? If not, you’ll need some additional time before applying for your home loan to review your credit, see what the lender may see, and determine whether your credit history is free of errors or evidence of identity theft. If your credit report shows erroneous information or if you suspect identity theft based on questionable entries on your report, you will need additional time prior to your FHA loan application | more...

December 22, 2021

FHA And HUD Announce Disaster Relief For Alabama Counties

By Joe Wallace

The Department of Housing and Urban Development has announced the availability of federal disaster relief in certain counties in Alabama affected by storms and flooding in October of 2021. A presidential major disaster declaration was placed into effect for the counties of Jefferson and Shelby. An FHA/HUD press release published at HUD.gov adds that there is also federal funding available from the Federal Emergency Management Agency or FEMA offered on a cost-sharing basis for hazard mitigation measures statewide, but this is not part of the relief offered directly to homeowners. What is available for them? HUD offers “immediate foreclosure relief” for FHA mortgages in the form of a 90-day moratorium “on foreclosures of Federal Housing Administration (FHA)-insured home mortgages commenced on the date of the Presidential major disaster declaration, and | more...

December 21, 2021

FHA Home Loan Approval Issues You Should Know

By Joe Wallace

If you are planning to buy a home with an FHA mortgage but aren’t sure whether you will be approved for the loan, you might find some help with our list if important FHA loan issues to consider as you plan and save for your mortgage. How Much Time You’ve Spent Working Your participating lender will review your employment history. Basically, they want to see how much time you have in your current capacity as a full-time employee earning salary, commission, or a combination of those. If you are self-employed, how long have you been working in that capacity? That will be an important factor for the lender. Your loan officer must review the last two years of your work history. Does that require you to have two years of | more...

December 20, 2021

FHA Home Loans: Questions To Ask

By Joe Wallace

If you are getting your finances in order and making plans to apply for an FHA home loan, there are some important questions you can ask your lender ahead of time to make your path to homeownership a smoother one. Some people, even when applying as new house hunters, have done enough research ahead of time to ask some of the right questions. But there are some home loan questions with answers that mean a lot more when combined with other information. What do we mean by this? It does not matter if you are looking for an FHA condo loan, a new construction loan, mobile home mortgage, etc. You will definitely want to ask the lenders you compare about interest rates and how much your loan will cost. The | more...

December 17, 2021

When Is An FHA Loan Assumable?

By Bruce Reichstein

When is an FHA loan assumable? Let’s start by examining what the FHA single-family home loan handbook, HUD 4000.1, defines as a loan assumption. “Assumption refers to the transfer of an existing mortgage obligation from an existing Borrower to the assuming Borrower.” An FHA loan assumption is generally possible-for most FHA loans closed today, the lender’s participation and approval will be required in order to carry out a loan assumption transaction. There are also occupancy requirements which may apply depending on what year the original mortgage was closed in. From HUD 4000.1: “If the original Mortgage was closed on or after December 15, 1989, the assuming Borrower must intend to occupy the Property as a Principal Residence or HUD-approved Secondary Residence. If the original Mortgage was closed prior to December | more...