Articles in Category: FHA Lenders

March 4, 2015

FHA Loan Approval or Rejection: The Notification Rules

When a borrower applies for an FHA home loan for the first time, it’s normal to wonder how long it might take and how the borrower might be contacted when the decision has been made. When it comes to the length of time to process the loan, there is no set answer–it can depend a great deal on the lender’s workload, how easy or difficult it is to track down a borrower’s credit information, etc. But once a decision has been made, FHA loan rules in HUD 4155.1 tell the lender how to proceed. Once the decision has been reached, FHA loan rules state, “The lender is responsible for notifying the borrower of the approval, either in writing or verbally, immediately after receipt of the underwriter’s decision.” That is found | more...

February 5, 2015

FHA Loan Case Numbers: A Reader Question

By Joe Wallace

A reader asks, “How can I as a consumer find out if my FHA case number has been issued without asking lender? It does not do me any good to call lender I talk to a different person everyday. I keep getting told it has not been issued.” “I put in application on January 6th, 2015. I know they probable had to cancel my old case # because I had an appraisal done on the 12th. This is a refinance and I have been in this house for over 10 years. How long is it taking FHA to issue the new case numbers? I realize they are delays since the reduction went into place but it has been 6 days. Is there a number I can call to see if | more...

January 26, 2015

FHA Housing Counseling: A Reader Question

By Joe Wallace

A reader asks, “I would like to know if you recommend a first time home buyer class in Denver?” We don’t have the resources to recommend a specific agency or class as a function of this blog, but the FHA itself does have plenty of resources to help home buyer, including a referral service that can put potential FHA borrowers in touch with an FHA/HUD approved housing counselor in the borrower’s local area. To request this referral, call the FHA at their toll-free number: 1-800 CALL FHA and request a referral to a housing counselor for pre-purchase counseling. Borrowers can also search the FHA website for information on state or local programs at the State Info page on the FHA official site. The page for Colorado, for example, includes a variety | more...

January 17, 2015

FHA Mortgage Rate Trends: 20-Month Lows This Week

By Joe Wallace

Mortgage loan rates this week were described by some sources at “near 20-month lows”. This week mortgage loan rates, best execution, benefitted from some volatility that can and often does bring a correction to push the rates back into more realistic territory. 30-year fixed rate conventional mortgage loan best execution rates approached 3.5% for some extremely well qualified borrowers applying with lenders offering that possibility. However, on Friday a slight correction did come, bringing the best execution rate back up into 3.625% territory. That rate is a best execution rate and is not available to all borrowers or from all lenders. Your FICO scores and loan repayment history will affect your ability to access that rate. Even so, borrowers who were offered higher rates than the best execution numbers still | more...

January 14, 2015

FHA Mortgage Rate Trends: Rates Moving To 2013 Lows

By Joe Wallace

Mortgage loan rates have in general hit some amazing lows in the earliest days of 2015. At the time of this writing mortgage loan rates dipped to lows some sources report not available since May 2013. For some extremely well-qualified borrowers, mortgage loan best-execution rates have actually dipped to at or near 3.5% for 30-year fixed rate conventional mortgage loans. That’s a rate not available to all borrowers or from all lenders–access to best execution rates depends on the applicant’s FICO scores and other financial qualification. But suffice it to say that home loan rates are looking very competitive in 2015 thus far. Many borrowers who can’t access the 3.5% best execution rate may be able to get quoted 3.625% (again, based on extremely well-qualified borrowers with excellent FICO scores | more...

January 12, 2015

FHA Loan Application Requirements: A Reader Question

By Joe Wallace

A reader asks, “My husband and I are trying to pay off debt and raise our credit scores to buy a home. Is there a program to help with a down payment? What are the steps needed to get approved for fha loan?” The FHA itself does not provide a downpayment assistance program, but one may be available at a state or local agency. The FHA does have a list of state information that can help you learn what home buyer/home ownership resources might be available near you. You can look up this list at http://portal.hud.gov/hudportal/HUD?src=/states. Steps to an FHA home loan include planning and preparation–you should research the housing market where you want to purchase the home, examine homes for sale you want to purchase and other steps, but one | more...

January 7, 2015

FHA Mortgage Rate Trends In Early 2015: Decisively Lower

By Joe Wallace

Mortgage rates in general moved within a narrow range of numbers in 2014, and with the anticipation of the new year, many hoped to see rates take a turn for the better and move below what seemed to be the floor in 2014 for rates. And now in the early days of the new year that seems to be happening. Best execution mortgage loan rates–which are not available to all borrowers or from all lenders–have dipped into the mid three percent range going down to an impressive 3.625% for the most qualified borrowers. That’s the rate for 30-year fixed rate conventional mortgage loans, best execution. That rate is offered to borrowers depending on FICO scores, loan repayment history and other financial qualifications. But what about FHA mortgage loan rates? Are | more...

January 7, 2015

FHA Loan Rules: FICO Scores

By Joe Wallace

Many FHA loan applicants want to know what the FHA loan minimum FICO score requirements are, but did you know that FHA loan standards are only part of the equation? The lender will also have minimum FICO scores as a requirement–these minimums may match the FHA standards or exceed it. In many cases a borrower will find the lender has more stringent standards than the FHA. What are the FHA minimum FICO score requirements? The rules for FICO scores on FHA new purchase home loans and refinance of those loans can be found in HUD 4155.1, which gives instructions to lenders on how to process FHA loans. That table above is reprinted from HUD 4155.1, and as you can see, FICO scores of 580 and above are technically eligible for | more...

January 5, 2015

FHA Loan Mortgage Insurance Refunds: A Reader Question

By Joe Wallace

A reader asks, “I like to know why FHA MIP don’t send any refund after pay off of my FHA loan pay off 4 months ago.” FHA borrowers may or may not be eligible for a mortgage insurance premium refund depending on circumstances, but assuming the reader is eligible for a refund, consider the advice found on the FHA official site at www.FHA.gov: “If you do not receive a check or an application within 45 days after you have paid off your loan, check with your mortgage company to confirm that they have sent HUD a request to terminate the mortgage insurance on your loan. If they confirm that the correct termination information was sent, contact HUD. If you do not receive a refund or any other documentation from HUD | more...

January 1, 2015

Happy New Year 2015!

By Joe Wallace

Happy New Year 2015! We hope your holiday season has been safe and fun. We pause from our usual posts about FHA home loans and answering reader questions about them to enjoy the holiday. Our regular posting schedule resumes on Friday. Thanks for reading and have a great holiday.