Articles in Category: FHA Loan Types

September 15, 2016

Mortgage Rate Trends: Higher

Since our last report on mortgage loan interest rate trends, we’ve seen upward pressure on home loan rates. This week is full of scheduled economic data releases that have potential to add to this depending on investor reaction to the contents of those releases. So far we’re seeing a short-term upward trend consistently through the week. What happens from here remains to be seen, but market watchers are using the word “volatility” quite a bit in recent days. 30-year fixed rate conventional mortgage loan interest rates have moved out of their previous range between 3.375% and 3.5% and are now, best execution, solidly at or near 3.5%. FHA mortgage loan interest rates are still, best execution, in a range between 3.0% and 3.25%. This has been the “comfort zone” for | more...

September 14, 2016

FHA 203(k) Rehab Loan Options

By Joe Wallace

The FHA has a program that allows borrowers to apply for a mortgage loan in order to improve a property. The FHA 203(k) rehab loan is intended for borrowers who want to buy or refinance property and repair them, but not all borrowers have big rehab projects or work that requires a huge sum of money. What are the FHA 203(k) options for borrowers? There are two different types of 203(k) loans-the typical version is available, but there is also a “limited” 203(k) for projects that require a smaller amount of funds. The FHA official site describes the limited 203(k) as follows: “FHA’s Limited 203(k) program permits homebuyers and homeowners to finance up to $35,000 into their mortgage to repair, improve, or upgrade their home. Homebuyers and homeowners can quickly | more...

September 12, 2016

Mortgage Loan Interest Rate Trends: 60-Day Highs

By Joe Wallace

Mortgage rates turned up sharply on Friday after a press conference by the European Central Bank (ECB). There is speculation among market watchers that Friday could be the beginnings of an upward trend in rates, but the talk at the time of this writing is just that-speculation. However, even though past performance does not guarantee future results (especially where markets are concerned) it may be wise to consider the advice of the market watcher for now-we simply can’t predict which way markets might swing next in a post-Brexit climate that includes both the Fed and ECB talking about the future of monetary policy with regards to interest rates, etc. While it’s true that best execution rates for 30-year fixed rate conventional mortgages look the same on paper at the time | more...

September 8, 2016

Mortgage Rate Trends: Moving Lower Ahead Of European Central Bank Press Conference

By Joe Wallace

Press conferences are not directly tied to mortgage loan rates, but depending on the contents of a particular press opportunity investor reaction to such things can and often does affect mortgage loan rates. Over the summer, the European Central Bank (ECB) has had an influence on rates due to a variety of factors (and Brexit cannot be ignored in that respect), so with a press conference Thursday morning for ECB officials, it’s entirely possible that we could see investors react to the contents of that. Or not. At the time of this writing the press conference hasn’t happened yet-it is scheduled for 7:30 AM Central Daylight Time. While that doesn’t sound terribly helpful, it is basically a fact of life with respect to mortgage loan rates. Sometimes these scheduled events | more...

When Is An FHA Loan Better Than A Conventional Loan?

September 7, 2016

FHA Loans After Foreclosure

By Joe Wallace

There are many foreclosure avoidance programs available for consumers struggling to make their mortgage payments; the Obama mortgage, the FHA HAMP program, mortgage loan modifications offered by the lender apart from government programs, etc. But in some cases foreclosure might be unavoidable. The borrower in these circumstances may wonder how long it could take to recover from such a “negative economic event” and become a home owner once more. FHA loan rules specifically address this issue in HUD 4000.1. Page 247 of HUD 4000.1 refers to situations that involve foreclosure or a deed-in-lieu of foreclosure. We learn: “A Borrower is generally not eligible for a new FHA-insured Mortgage if the Borrower had a foreclosure or a DIL of foreclosure in the three-year period prior to the date of case number | more...

September 6, 2016

Mortgage Loan Interest Rate Trends: Slightly Higher After Friday Jobs Report

By Joe Wallace

Ahead of the holiday weekend, all eyes were on Friday’s employment stats, which can and have acted as a spoiler for mortgage loan interest rates in the past depending on investor reaction to the contents of such reports. Market watchers reported weaker-than-expected numbers in that report, and ahead of a holiday weekend we saw some lenders keeping rates the same, while others had slightly higher numbers to close out the week. 30-year fixed rate conventional mortgages were reported at or near a best execution range between 3.375% and 3.5%. Friday’s increases with some lenders were likely reflected in closing costs rather than actual higher rates. FHA mortgage loan rates continue holding fast in their best execution range between 3.0% and 3.5%. The numbers we’ve been seeing are reported by industry | more...

September 5, 2016

Happy Labor Day 2016!

By Joe Wallace

Happy Labor Day 2016! Our regularly scheduled blog posts and answers to reader questions will return tomorrow. Thanks for reading!

September 2, 2016

Foreclosure Avoidance on FHA Mortgages: The Trial Payment Plan

By Joe Wallace

The FHA recently announced changes to its policies designed to help those who purchased homes with FHA mortgages and have since fallen into financial trouble to avoid foreclosure. There are many government programs to help borrowers keep their homes in hard times including the Obama mortgage, and the FHA Home Affordable Modification Program or HAMP. If you have fallen behind on your mortgage payments on an FHA mortgage, the information here will be of special interest to you. Those who are under consideration for HAMP may learn they have to complete a trial payment plan before the HAMP modification can be finalized and approved. But what does this trial payment plan (also referred to as TPP) entail? The FHA announced modifications to the HAMP program this summer, and in FHA | more...

September 1, 2016

FHA Home Loans: General Rules

By Joe Wallace

FHA home loans are unique compared to conventional loans due to the lower down payment and more forgiving credit requirements. There are some basic rules governing FHA mortgage loans you should know about going into the process; keeping these in mind will save time and help you better prepare for the loan. One of the key issues for FHA mortgages is the location of the home. According to HUD 4000.1, “The Property must be located within the U.S., Puerto Rico, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or American Samoa.” That’s a very basic requirement, but FHA loan rules do get more specific from there. A property must be situated in a reasonable owner-friendly location. For example: “The Mortgagee must determine if a Property is located | more...

August 31, 2016

Mortgage Loan Interest Rate Trends: Slightly Higher For Some

By Joe Wallace

Monday saw mortgage loan interest rates taking back a bit of ground from Friday’s move higher; Tuesday saw some lenders keeping things unchanged while others moved a bit higher. There are some question marks around scheduled economic data releases on Wednesday and Friday, which could resolve as upward pressure on rates depending on investor reaction to Wednesday’s Pending Home Sales report and a national employment report also due on Weds. These reports in and of themselves don’t “do” anything to mortgage loan rates, it’s the behavior of the investors in the wake of those reports that creates the changes in rates we see depending on how those reports go. Friday is another day of employment data with the Employment Situation report-something that has moved rates in the past due to | more...