Articles in Category: FHA Guidelines

January 30, 2018

Who Can Legally Sign My FHA Home Loan Documents?

Who can legally sign my FHA home loan documents? That may seem like an obvious question to some, but there are circumstances where the borrower themselves may be unable to sign the paperwork to complete the loan transaction. What options do borrowers have in these situations when applying for an FHA mortgage, refinance loan, or reverse mortgage? FHA Loan Rules For Signatures: The Basics The rules covering a borrower’s legally binding signature on loan documents used to process FHA home loans can be found in HUD 4000.1, which begins by stating: “All Borrowers must sign and date the initial and final Fannie Mae Form 1003/Freddie Mac Form 65, Uniform Residential Loan Application (URLA). All Borrowers must sign and date page two of the initial form HUD-92900-A, HUD/VA Addendum to Uniform | more...

January 17, 2018

Who Can Apply For An FHA Mortgage? Part Two

By Joe Wallace

Who Can Apply For An FHA Mortgage? In our previous blog post we addressed some common misconceptions about FHA mortgages, but there is a long list of FHA home loan uses including refinancing, fixer-upper loans, and much more. Who can apply for an FHA home loan? You may find your own needs represented somewhere in this list of approved FHA loan uses. FHA Loans Are For Owner/Occupiers You can apply to buy a property up to four units, and act as a landlord to rent out the units you won’t be living in; FHA loans have an occupancy requirement so you cannot buy a home with an FHA mortgage unless at least one person obligated on the loan will live there as the primary residence. FHA Loans Are For U.S. | more...

January 17, 2018

Who Can Apply For An FHA Mortgage?

By Bruce Reichstein

Who can apply for an FHA mortgage? The answers may surprise you; there are misconceptions about FHA home loans that many have to this day, including who is eligible to apply and when. Do you know if you are eligible to apply for an FHA loan or refinance loan? FHA Home Loans Are For All Income Brackets There is no such thing as earning too much money to qualify for an FHA home loan. Some mistakenly believe that there is a maximum income for FHA home loans that excludes people who “earn too much”. This is not true. There is no maximum income limit for an FHA home loan. You will be required to furnish bank statements, pay stubs (electronic or otherwise), and tax documentation to establish your income, but | more...

January 16, 2018

What Is The Interest Rate For FHA Refinance Loans?

By Joe Wallace

What is the interest rate for FHA refinance loans? This is an important question since your interest rate will affect the overall cost of your refi loan over time, and it’s good to know how rates work before you apply for a new home loan. FHA mortgage loan and refinance loan interest rates have a variety of factors that affect how they are determined for your loan. There is no single determining factor that allows a lender to give a single rate to all applicants-your interest rate is determined based on application data, market forces, and other factors. Does The FHA Set Interest Rates On FHA Refinance Loans? The FHA and HUD do not set or regulate FHA mortgage loan and refinance loan interest rates, except to require that the | more...

January 11, 2018

Does The Age Of The Property Affect An FHA Home Loan?

By Bruce Reichstein

Does the age of the property affect an FHA mortgage loan transaction? Not all properties are brand new, and in cases where existing construction homes or other property types are being considered for an FHA home loan, age can and often is a factor. Why is this? It depends on the type of home you wish to buy. FHA Home Loans For Mobile Homes, Manufactured Homes FHA home loan rules for mobile homes and manufactured homes carry a requirement that the property be of a certain maximum age. According to HUD 4000.1, the lender is tasked with insuring that the mobile home was built on or after June 15, 1976, “as evidenced by an affixed HUD Certification Label in accordance with 24 CFR § 3280.11”. The rules in this section | more...

December 26, 2017

FHA Loan Rules: Appraisal Standards And Building Code

By Bruce Reichstein

Do you know the FHA loan rules for appraisal standards and compliance with building code? As a borrower, you may not need to know every single aspect of the FHA loan rules for appraisals, but understanding the basic concepts can help you make a more informed decision when it’s time to choose a home and a home loan. FHA Appraisal Rules: Some Basics The FHA appraisal is a tool for your lender to establish the fair market value of the property and to establish the adjusted value of the home for purposes of setting the loan amount. The appraisal is not a complete, in-depth, top-to-bottom inspection of the property and should never be used by the borrower as such. Only the optional, borrower-arranged and borrower-paid home inspection can do this. | more...

December 20, 2017

What FHA Appraisal Issues Should I Know About?

By Bruce Reichstein

What FHA appraisal issues should I know about? That’s a question that likely doesn’t get asked enough, but the answers can help you make a more informed choice when buying a home. FHA Appraisal Rules For The Living Unit The FHA loan handbook spells out several basic requirements for the living unit which include (but may not be limited to) the following guidelines-the lender is required to insure each home has the following: -a continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for all household uses; -sanitary facilities and a safe method of sewage disposal. Every living unit must have at least one bathroom, which must include, at a minimum, a water closet, lavatory, and a bathtub or shower; -adequate space for | more...

December 12, 2017

How FHA Maximum Mortgage Amounts Are Calculated

By Joe Wallace

Have you ever wondered how FHA maximum mortgage amounts are calculated? FHA loan rules in HUD 4000.1 explain how it works, starting with a borrower’s required minimum down payment and including what happens when certain add-ons to the loan are included. How much can you really borrow with an FHA mortgage? According to HUD 4000.1, the FHA loan handbook, “Mortgage limits are calculated based on the median house prices in accordance with the statute. FHA’s Single Family mortgage limits are set by Metropolitan Statistical Area and county and will be published periodically.” Those limits are published just before the start of the new year and take effect the first day of the new year. But the amount of your FHA home loan may include more than just the calculation mentioned | more...

November 30, 2017

What Are The FHA Appraisal Rules For Mobile Homes?

By Bruce Reichstein

What are the FHA appraisal rules for mobile homes? FHA mortgages are available for mobile, manufactured, and modular homes the same as for “stick built” housing such as a typical suburban home. What are the basic appraisal requirements for mobile homes? FHA loan rules for appraisals are found in HUD 4000.1, the FHA loan handbook. There we learn that mobile homes have some unique appraisal requirements. Like condo loans, there are extra rules due to the unique nature of mobile homes. FHA Mobile Home Minimum Size Requirement For example, in HUD 4000.1, we find no minimum square footage requirement for a stick-built home or a condo. But for mobile homes, FHA appraisal requirements include a minimum 400 square feet of floor space. Anything less does not meet the FHA loan | more...

November 22, 2017

What Are The Property Requirements For An FHA Home Loan?

By Joe Wallace

What are the property requirements for an FHA home loan? There are some basic minimum standards listed in HUD 4000.1 that can help future FHA loan applicants understand the basics, but it’s important to remember that local building code, health standards for water and sewage, and other regulations may also apply. General FHA Loan Requirements For Homes To Be Purchased With An FHA Mortgage HUD 4000.1 states that it is the lender’s responsibility to make sure “each living unit” has the following features as required in HUD 4000.1: -a continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for all household uses; -sanitary facilities and a safe method of sewage disposal. Every living unit must have at least one bathroom, which must include, | more...