Articles Published in: 2021

August 20, 2021

Buying Your First Home

What kinds of questions should you ask before you make an offer to buy your first home? There are many areas to think about when getting ready to make a big financial commitment like a mortgage. Is Your Financial House In Order? Can you realistically afford the home you are buying? The answer to this question goes further than whether you have enough money after your other monthly expenses to pay your mortgage. For example, having the ability to save for your upfront expenses (down payment and closing costs) is important. But what happens AFTER those fees and expenses are taken care of? It is a good idea to include saving some cash reserves above and beyond your cash to close–having some extra funds to help out in case times | more...

August 19, 2021

Time Is Running Out On The HUD Foreclosure Eviction Moratorium

By Joe Wallace

The end of the HUD foreclosure moratorium was announced earlier this year–the end date of the moratorium is listed as July 31, 2021. That date is firm, at least according to the most recent FHA Mortgagee Letter published on this issue, which mentions, “foreclosures of FHA-insured mortgages may be initiated or resumed upon the expiration of the foreclosure moratorium in accordance with FHA requirements.” The July 31st deadline is, at this time, not expected to be extended further. However, there is also a moratorium on foreclosure-related evictions for FHA borrowers who are in default on their mortgages. That eviction moratorium has been extended until September. HUD instructions to participating FHA lenders is clear. The Mortgagee Letter on the FHA/HUD official sites includes these guidelines: “A Mortgagee must not initiate or | more...

August 17, 2021

Before You Apply For Your Mortgage Loan

By Joe Wallace

If you are concerned about your ability to qualify for a mortgage, before you get pre-qualified or pre-approved, it’s a good idea to add a few steps to your home loan prep checklist. These steps should be in addition to the usual things you need to do before you apply for the loan, seal pre-approval, approach a seller, or even start working with a real estate agent. One of those things is very important–you need to not only know the contents of your credit report (a Home Loans 101 type piece of advice) but also monitor your credit through the entire planning and purchase process of your home loan. Knowing your credit score is vital for a mortgage borrower and home buyer, but what happens if your credit report begins | more...

August 16, 2021

Rent Or Buy?

By Bruce Reichstein

Are you tired of paying rent, answering to landlords, and trying to maintain your living space while trying to be mindful of thin walls, sensitive neighbors, or other concerns associated with living in an apartment complex or other rental situations? One way to get closer to a decision is to use a rent vs. buy calculator or to run your own numbers using similar data. You’ll need a typical home price for the local area to calculate a mortgage payment (using principal, interest, property taxes and any applicable homeowners association fees) and compare it to how much you pay in rent, renter’s insurance, etc. You can use a rent vs. buy calculator to give yourself a good idea of how the basic numbers compare. But there are a few variables | more...

August 13, 2021

HUD and FHFA Announce Historic Partnership

By Joe Wallace

The Department of Housing and Urban Development has announced a major partnership with the Federal Housing Finance Agency (FHFA) to further the cause of fair housing and the enforcement of the federal law known as the Fair Housing Act. The FHFA is an important agency–it serves as the “primary regulator” for federal home loan banks. According to HUD.gov, FHFA has “broad statutory authority to supervise the regulated entities, including authority to monitor and gather information and conduct supervisory examinations, and enforce compliance with applicable law.” FHFA is responsible for oversight of: Fannie Mae Freddie Mac Federal Home Loan Banks The two agencies have agreed to a Memorandum of Understanding which has both HUD and FHFA working to “enhance” the enforcement of Fair Housing Act laws. This is intended to help | more...

August 12, 2021

What To Do When Morgage Rates Are Rising

By Joe Wallace

What do you need to know when mortgage rates start to climb? That depends greatly on whether you are interested in buying, refinancing, or even building a home from the ground up. Why? Because there are situational concerns that may affect your decision-making depending on what kind of home loan you need. Mortgage rates go higher for a variety of reasons. Borrowers should know that typically, what’s good for the economy can mean upward pressure on mortgage rates. Conversely, bad news for the economy can mean good news for mortgage loan interest rates. So what’s a borrower to do? If you seek an FHA refinance loan to get out of an adjustable-rate mortgage, your course of action might be as simple as comparing the rates your lender could offer you | more...

August 11, 2021

Questions To Ask About Your Credit Report

By Joe Wallace

Do you dread the idea of looking at your credit report? Some people delay looking at theirs because they are afraid of what they might see, or afraid they won’t be able to understand what they are reading in their own report. Fortunately, there are some questions you should ask about your credit report that can give you a good start in the right direction–these questions will help you better understand what’s in your report and what a lender looks for when they review yours. When you get your copy of your credit report from Experian, TransUnion, or Equifax, be sure to review the report once “cold”, and then review it again with the following questions: Credit Report Accuracy: Open Accounts? Are the accounts listed in your credit report open? | more...

August 9, 2021

Do You Need Help Saving Your FHA Mortgage?

By Joe Wallace

Do you worry about your ability to make payments on your FHA home loan? You are not alone, and the FHA and HUD want to help. There have been many foreclosure prevention measures taken by lenders and the FHA/HUD alike including a COVID-19 related foreclosure moratorium, loan modification options for qualifying applicants and much more. In early 2021, the FHA and HUD announced “loss mitigation options” to help those recovering financially from the pandemic; these included a COVID-19 Advance Loan Modification offered to “…eligible delinquent Borrowers who can achieve a 25 percent reduction to the Principal and Interest (P&I) portion of the Borrower’s monthly mortgage payment through a 30-year rate and term loan modification” according to HUD.gov The FHA and HUD continue evaluating how the pandemic has affected the agency’s | more...

August 5, 2021

FHA Home Loans: Mistakes To Avoid When It’s Time To Close

By Bruce Reichstein

As you get closer to the day when you sign the paperwork, pay your closing costs, and take possession of your new home, there are some important mistakes to avoid. Do you know what they are? FHA home loan closing day is an important milestone; make sure you know what to expect leading up to the big day. Don’t Move The Same Day You Close Closing dates can change, circumstances may require a new closing date. If you hired movers or rented a truck on the same day that you are supposed to close the deal, you may be disappointed. Don’t Be In A Hurry Take the time to carefully read all documents you are required to sign, don’t skip the home inspection, and don’t give in to any kind | more...

August 4, 2021

HUD Announces Extension To Foreclosure And Eviction Moratorium

By Joe Wallace

The FHA and HUD are extending a moratorium on foreclosure-related evictions in a last-minute bid to protect FHA borrowers from losing their homes after the expiration of a previous eviction and foreclosure moratorium. The HUD official site states that on July 30, 2021, FHA foreclosure and eviction procedures will still be on hold; the agency is extending its moratorium on foreclosures and evictions until September 30, 2021. The previous deadline was at one time “set in stone” and HUD had previously announced there would be no further extensions. But public outcry over the expiration of a rental eviction moratorium gave the Biden administration pause; soon there were extensions on the foreclosure and eviction moratorium for those who bought homes with government-backed programs like FHA single-family home loans. In a press | more...