Articles in Category: FHA Lenders

December 30, 2014

FHA Sets New Foreclosure Sales Policy

The FHA and HUD have updated policies related to the sales of foreclosed homes for “all defaulted FHA insured mortgages” with sales scheduled on or after 1 February 2015. According to Mortgagee Letter 2014-24, Increasing Use of FHA’s Claims Without Conveyance of Title (CWCOT) Procedures, the following guidelines will apply to those home sold after the date mentioned above: “Unless otherwise required by statute or jurisdiction, mortgagees are to use the Commissioner’s Adjusted Fair Market Value (CAFMV) for all foreclosure sales and Post-Foreclosure Sales Efforts associated with defaulted FHA insured mortgages when all of the following criteria are met: A.The FHA mortgage insurance is still active for the FHA Case Number; B. The FHA-insured loan is not subject to indemnification. (Note: Items A and B may be verified by checking Neighborhood Watch); C. | more...

December 24, 2014

Happy Holidays!

By Joe Wallace

From all of us here, have a safe and happy holiday! We pause from our usual posts about FHA loans, answering reader questions, and FHA news to celebrate the season. Our regularly scheduled posts will return on Friday. Thanks for reading and we hope your holiday time is filled with joy. –The Staff at FHANewsBlog.com

December 22, 2014

FHA Announces 2015 FHA Home Loan Guaranty Limits

By Joe Wallace

The FHA and HUD have announced the loan guaranty limits for 2015. FHA Mortgagee Letter 2014-25, which announces 2015 limits and policy for single-family “forward loans” for new purchases, FHA Streamline loans, and Home Equity Conversion Mortgages (HECMs). According to the mortgagee letter, “The minimum FHA national loan limit ‘floor’ is at 65 percent of the national conforming loan limit (which is $417,000 for a one unit property for the period January 1, 2015 through December 31, 2015). The floor applies to those areas where 115 percent of the median home price is less than 65 percent of the national conforming loan limit.” The FHA defines a high-cost area where the typical FHA loan guaranty rate may be different as follows: “Any area where the loan limit exceeds the floor is a high cost | more...

December 18, 2014

FHA “Personal Loans”? A Reader Question

By Joe Wallace

A reader asks, “My credit scores a 654 i have a car loan at 22000 where i pay 328 a month and have a debt collector who i’ve already paid but still shows on my credit report. Is there any way I can get a 5000 dollar loan?” It sounds like this reader is asking whether the FHA loan program permits a borrower to apply for a personal loan guaranteed by the FHA. Or perhaps the reader is asking if it’s possible to apply for an FHA home loan for an amount far smaller than it would take to purchase a home. In either case, the answer is no. FHA loan rules do not permit the FHA single family home loan program to be used as a personal loan–FHA guaranteed | more...

December 12, 2014

FHA Appraisal Appeals: A Reader Question

By Joe Wallace

A reader asks, “A buyer for my property secured an FHA approval and had a FHA appraisal performed. The appraisal was well below the contract price, so much so that it was below the County’s tax assessed value. Better comps and explanations were provided for the market area, but the appraiser would not amend the appraisal.” “The buyer went to another lender to but was told the previous FHA appraisal was valid for 6 months and a new appraisal could not be requested. Is this true, even if the circumstances were clearly presented?” In some limited cases an FHA appraisal may be appealed, but this would be handled on a case-by-case basis and would be at the FHA’s discretion. FHA loan rules do not permit borrowers to appeal an appraisal | more...

December 10, 2014

FHA Loan Interest Rate Trends

By Joe Wallace

Plunging oil prices—plus stock market reaction to those lower oil prices–are among the factors over the last five trading days that have affected FHA mortgage rates. FHA loan interest rates have fallen to year-long lows, best-execution. There are other factors that can and do contribute to lower rates from day to day. One factor that could affect FHA loan rates this week is tomorrow’s 30-year Treasury auction. Borrowers who have not yet committed to an FHA mortgage rate lock should keep an eye on the news about that auction tomorrow to see how it may affect the current interest rate trend. At the time if this writing, 30-year fixed rate conventional mortgage loan rates are in a range that tops out, best execution, at four percent. The bottom end of that best | more...

December 8, 2014

FHA Loan FICO Score Mininums and Late Payments: A Reader Question

By Joe Wallace

A reader asks, “We were living in Florida when the housing market crashed. I was in school and my husband was working. 2 mos after starting school my husband lost his job so we had no other option then to file bankruptcy and we tried 9 times to get our mortgage modified with [lender name deleted] and they NEVER helped us! after eight mos of trying to get a modification, we were served foreclosure papers. Our Bankruptcy was discharged July 2010 and our Foreclosure was Dec 2010…” “My credit score is 593 and my husbands is 585. There have been a couple CC payments that have been late but other than that we managed to pay everything on time, including our rent. Will we be able to qualify for Loan…Please | more...

December 5, 2014

FHA Loan Requirements For Credit Checks, Documentation

By Joe Wallace

FHA loan rules require your loan officer to perform credit and employment checks, examine the source of down payment funds, and verify your income. In order to accomplish this, the FHA requires the lender to get documentation from the source; the borrower cannot provide the lender with credit reports, for example, and must contact your employer directly for verification of your income and work history. The rules governing these procedures are found in HUD 4155.1 Chapter One, Section B. which includes permission for the lender to ask the borrower for “blanket authorization” as described below: “The lender may ask the borrower to sign a general authorization form that gives the lender blanket authority to verify information needed to process the mortgage loan application, such as •past and present employment records | more...

November 27, 2014

Happy Thanksgiving!

By Joe Wallace

Happy Thanksgiving 2014! We pause today from our usual routine of answering reader questions and giving advice about FHA home loans to celebrate the holiday. Have a happy and safe Turkey Day! Our regularly scheduled posts return tomorrow.

November 26, 2014

FHA Mortgage Loan Interest Rate Trends

By Joe Wallace

FHA home loan interest rate trends this week include a fairly steady drop in mortgage rates, pushing conventional loans into sub-four percent territory in some cases and FHA mortgage rates down into a previously held comfort zone. Last week, 30-year fixed rate conventional mortgage loan rates were at a best execution average of 4.0 or higher, but the downward movement this week sent those best execution numbers to an at-or-sub-four percent range. There’s greater variation among conventional lenders this week and not all the improvements are offered by all financial institutions. What’s more, when it comes to FHA mortgage loan rates, at times we don’t see those rates changing as quickly as their conventional counterparts. But this week, FHA rates managed to react in the borrower’s favor. We are now | more...