Articles by: Bruce Reichstein

May 4, 2020

Sexual Harassment As A Violation Of The Fair Housing Act

The month of April is Fair Housing Month in America, and while at the time of this writing that month has just ended there are efforts made around the clock to raise awareness of Fair Housing laws. HUD has issued a press release about one of those ongoing efforts; a joint-agency fight to stop sexual harassment in the housing process. The U.S. Attorney General and the HUD Secretary have partnered to remind landlords and renters that sexual harassment at any stage of the housing process is illegal and a violation of federal Fair Housing Act regulations. “The Fair Housing Act embodies the spirit of this great Nation where everyone is entitled to equal opportunity and respect,” said the HUD Secretary, who was quoted in the press release. He adds, “No | more...

FHA One Time Close Construction Loan Option

April 30, 2020

The FHA One-Time Close Mortgage Option

By Bruce Reichstein

Borrowers looking at their FHA home loan options don’t have to feel limited to purchasing an existing construction property; there is a way to apply for an FHA mortgage that lets you have a home built to suit from the ground up. These FHA new construction home loans are referred to as Construction-To-Permanent mortgages or, more recently, FHA One-Time Close construction loans. One-Time Close construction loans are good for borrowers who want a home that is just right, and are not in a hurry to get into their new home. The trade-off for having just the right property built for you is the time it will take from planning to move-in. The process will take more time, but it is definitely worth it to those who choose this type of | more...

April 28, 2020

HUD Updates Coronavirus Home Loan Guidelines For Loan Closing

By Bruce Reichstein

The FHA and HUD have issued guidelines for mortgage loan closing procedures that may be affected by coronavirus lockdown measures, quarantine, and other issues related to the COVID-19 pandemic. Many home buyers were caught by surprise by coronavirus issues and there are many home loans that are affected. The Department of Housing and Urban Development issued initial policies in March, 2020, but updated them in mid-April to include provisions in several areas designed to help facilitate FHA home loans during the outbreak. FHA Loan Rules On Title insurance The FHA and HUD issued guidance on loan servicing issues designed to address situations in counties where recording offices are not operational during the national emergency. The FHA/HUD official site answers the following question related to such scenarios: “Will FHA accept title | more...

April 23, 2020

FHA Loan Down Payments: What You Need To Know Today

By Bruce Reichstein

When the time is right to explore your FHA home loan options, there are some things you need to know about down payments that can help you better prepare for the loan process. FHA home loans have strict rules about the source of your down payment funds and you will be required to document those sources no matter where your down payment money is sourced from. Here are the basic rules for FHA down payments: A down payment is required 100% of the time for new purchase FHA loans; Your down payment amount may be affected by your credit scores; You will be required to pay a minimum of 3.5% if your credit score meets FHA and lender standards; all others will be required to pay a minimum 10% down. | more...

April 20, 2020

HUD Housing Discrimination Policy During COVID-19

By Bruce Reichstein

The FHA and HUD celebrate Fair Housing Month during April each year, and in the year 2020, coronavirus pandemic concerns raise some Fair Housing issues to new importance. The Department of Housing and Urban Development has issued official policy on housing discrimination related to COVID-19. The agency issued a press release, reminding tenants, landlords, house hunters, and all others involved in the housing industry, “…viruses do not target specific racial or ethnic groups. Be aware that the Fair Housing Act and other federal laws prohibit the eviction, turning away or harassment of a person in housing because they are profiled, on the basis of race, national origin or other protected class, to be associated with COVID-19.” That is a very important issue to consider. Not everyone is able to shelter | more...

April 16, 2020

HUD Issues More Guidance For COVID-19 Mortgage Relief

By Bruce Reichstein

The Department of Housing and Urban Development has issued guidance clarifying certain aspects of the coronavirus mortgage relief options; there are instructions for multi-family loans as well as for single-family FHA mortgages. Why are the multi-family rules good for the single-family borrower to understand? Borrowers with multi-family FHA loans who need of COVID-19 mortgage relief have similar requirements to those for single-family borrowers. If you know the approach your lender takes for FHA loans, you can make more fully informed choices about your loan including when to apply for economic relief and what options to choose. Borrowers have the option to request six months of loan forbearance or as much as a full year, depending on circumstances. Should you take the full year? Cut off the relief as soon as | more...

the importance of credit for home loan approval

April 14, 2020

Common Questions About COVID-19 Mortgage Relief For FHA Borrowers

By Bruce Reichstein

If you have an FHA mortgage and are worried about your ability to make mortgage payments during the economic shutdown over the coronavirus. What should you do? The FHA has some advice for you on taking advantage of the mortgage relief options provided by the FHA and HUD during the coronavirus pandemic. The FHA official site advises FHA borrowers to do three things if you are able: Continue to make your monthly mortgage payments if you are able to do so; If you are unable to make your mortgage payment, contact your mortgage servicer and discuss your situation with a loss mitigation specialist. Contact a HUD-approved housing counseling agency (you can get a referral by calling 1-800 CALL FHA). Have you lost your job? Have you been laid off, furloughed | more...

April 10, 2020

Protect Your FHA Home Loan From Foreclosure

By Bruce Reichstein

The federal government has offered a variety of economic stimulus programs to help those affected by COVID-19 and the coronavirus emergency. FHA, VA, and USDA lenders have been given updated instructions to help borrowers avoid loan default and foreclosure. Those instructions include a temporary foreclosure moratorium and options to help borrowers stay in their homes through loan modification and loan forbearance. Such alterations to the mortgage are designed to help borrowers avoid falling behind or falling farther behind on their mortgages. But what happens after these measures? FHA has announced something known as the COVID-19 National Emergency Partial Claim, described by an FHA/HUD press release as “an option to be used by servicers” once the COVID-19 FHA loan forbearance period concludes. Borrowers who have trouble paying their mortgages during COVID-19 | more...

April 8, 2020

Celebrating Fair Housing Month

By Bruce Reichstein

The month of April is Fair Housing Month, and even during COVID-19 woes and coronavirus outbreak containment efforts continue, the FHA and HUD are working to raise awareness of Fair Housing Act laws, your rights, and responsibilities. Sexual Harassment As A Violation Of Fair Housing Laws Fair Housing month is a campaign to raise awareness of the Fair Housing Act. The 2020 theme of the outreach is “Call HUD: Because Sexual Harassment in Housing is Illegal.” Where sexual harassment goes, HUD policy is very specific. “While any form of discrimination stains the very fabric of our nation, HUD is especially focused on protecting the right of individuals to feel safe and secure in their homes, free from sexual harassment or unwanted sexual advances,” according to a HUD press release on | more...

April 7, 2020

Protect Your Credit Score During The Coronavirus Outbreak

By Bruce Reichstein

The economic effects of the coronavirus / COVID-19 are being felt in every sector of the American economy, including the real estate market and the housing industry. With trillions of dollars in economic stimulus promised, but in various stages of delivery (or non-delivery as the case may be), Americans are still facing economic pain that may not have a short-term fix. In spite of that uncertainty, one thing remains clear. Consumer credit scores are going to have a lot more weight in the credit approval decision process in the days following the peak of the coronavirus emergency in America. It’s going to take time to begin a full move toward recovering from the crisis, but those who take steps now (and later) to protect their credit will fare better than | more...