Articles in Category: FHA Lenders

October 23, 2014

This Week’s FHA Mortgage Rate Trends

This time last week, we reported mortgage rates headed for lower territory thanks to a variety of factors including market volatility. This week, the difference was definitely noticeable, with rates holding steady or edging slightly higher, but still maintaining at-or-below 4% rates for 30-year fixed rate conventional loans (best execution). FHA rates held steady at 3.5% best execution. While FHA mortgage rates have managed to stay at 3.5% this week, how long that could number may persist? Next week is poised to be an important one for rates in the short term. Why? There are a number of reasons why conditions might lead interest rates upward, but one of the most anticipated things scheduled for next week is the Fed announcement–a regular occurrence that can and often does push rates depending on | more...

October 23, 2014

FHA Loan Interest Rates: The Rate Lock

By Joe Wallace

We write weekly, sometimes more frequently, about the state of FHA loan interest rates. We discuss trends, terminology, and the possible future of those rates. But some potential FHA borrowers are confused by terms like “locking” and “floating”. What does it mean to get an interest rate lock on an FHA mortgage loan? Let’s start by examining the basic rules of negotiating FHA rates on the loan. According to the FHA loan rulebook, HUD 4155.1, the lender and borrower are expected to come to an agreement on interest rates on the loan–the FHA does not set the rates. “Under all currently active FHA single family mortgage insurance programs, the borrower and the lender negotiate the interest rate and any discount points.” That’s found in the opening chapter of HUD 4155.1. | more...

October 16, 2014

FHA Mortgage Loan Interest Rate Trends For October 13-17 2014

By Joe Wallace

If you are interested in an FHA home loan this week or have been keeping an eye on FHA mortgage loan rates, you know this has been a particularly good time for mortgage rates. For a large part of the year we have seen the best execution rates for FHA home loans persisting at around 3.75%, down from an earlier long-held best execution rate average at or just above 4%, depending on the lender. Volatile market conditions this week contributed to downward movement for interest rates–FHA mortgage rates have fallen from their long-held 3.75% comfort zone and fell into a range of rates between 3.375% and 3.5% best execution. Some borrowers may get confused over the reports of “best execution” rates–what does this term mean? “Best execution” mortgage loan rates are those | more...

What you should know about FHA 203(h) Loans For Disaster Victims

October 14, 2014

FHA Loans and “Reasonable Commuting Distance”: A Reader Question

By Joe Wallace

A reader asks, “What is the maximum commuting distance allowed for a FHA financed primary residence?” This question doesn’t have a set answer, since the FHA does not spell out an exact mileage amount or specific driving time that would meet or exceed the notion of “reasonable commuting distance”. Let’s examine what the FHA loan rulebook, HUD 4155.1 Chapter Four Section B has to say about reasonable commuting distances. The information below is presented in the context of advising the lender on what is appropriate if an FHA borrower wishes to apply for a second FHA loan for the purpose of getting another home. This is generally not allowed, but exceptions can are are granted for increases of family size or a job relocation. From HUD 4155.1 Chapter Four: “A | more...

October 10, 2014

FHA Mortgage Loan Rate Trends For The Week Ending October 10 2014

By Joe Wallace

When it comes to FHA mortgage loan rates–or mortgage rates in general for that matter–last month the rate trends seemed to be centered around small, persistent upward pressure on mortgage rates. In the earliest days of October we seem to be moving back into an improvement trend, and if rate behavior on Wednesday and Thursday offer any clues, it’s possible that the positive momentum could bring benefits into the start of the new week. 30-year fixed rate conventional mortgages are moving into 4.0% territory (best execution) and while best execution numbers haven’t changed for FHA mortgage loans yet, borrowers may find that depending on the lender more competitive closing costs could apply. It’s important to shop around for the best interest rate you can, and rates do tend to vary | more...

October 3, 2014

FHA Mortgage Rate Loan Trends For The Week Ending Friday October 3 2014

By Joe Wallace

For entire year to date, September was one of only a handful of months that had consistently upward movement in mortgage loan interest rates. Many house hunters and investors welcomed the end of September after some steady upward pressure on rates that finally started slacking off toward month’s end. FHA mortgage rates at the end of the month have seen small improvements but this week marked a push back to the summer’s lows. FHA mortgage rate trends were up and down the week ending October 3, 2014; rates pushed slightly higher on the last day of the month, but the first day in October brought with it more improvement in rates that had started off small in the second half of September. The first day of October helped erase most, if | more...

September 26, 2014

FHA Mortgage Rate News For The Week of September 22 2014

By Joe Wallace

September has been a rough month for FHA mortgage loan rates–there’s been an upward trend fueled at least in part by the recent Fed policy statement, which many anticipated as a possible indicator of where rates might be headed (predicting investor reaction to an announcement that indicated a stronger or weaker economy). But this week, we saw rates moving lower–the best execution numbers haven’t really changed, but the downward trend is a welcome one. In many cases borrowers will see the lower moves reflected in closing costs rather than in actual lower interest rates, but if the downward movement continues we may well see FHA rates shift out of their current range of numbers and back into the lower best execution rate of 3.75%. The downward trend we saw this | more...

September 22, 2014

Fair Housing Act Violations: A Reader Question

By Joe Wallace

A reader asks, “I am trying to sell my manufactured home and the land it sets on to a couple that are not married from California, the lienholder refuses to do this because they are not married, isn’t this a violation of Federal Law?” The Fair Housing Act makes it illegal to discriminate against a house hunter–a buyer or renter–based on family status. That includes being married, not married, a single parent, etc. The Department of Housing and Urban Development official site (which is also home to the FHA official site) states the following basic information on the Fair Housing Act: “The Fair Housing Act covers most housing. In some circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family housing sold or rented without the use | more...

September 18, 2014

FHA Mortgage Rate News For The Week of September 15 2014

By Joe Wallace

We’ve seen recent trends in FHA mortgage loan rates towards higher numbers, but this Wednesday was a much anticipated day for the rates as investors and market watchers waited to hear the Fed made a policy announcement. The announcement did put upward pressure on rates, but we’ve seen some important movement in them already– September 12 was the day when best execution rates for FHA mortgage loans were pushed out of the previous single number comfort zone of 3.75% and back into a range of rates between 3.75% and 4.0, best execution. This is the first time in many weeks, if not months, that we’ve seen rates for FHA mortgages (best execution) move back into the 4% zone. On Wednesday, September 17, the range of FHA loan rates persisted, thanks | more...

September 5, 2014

FHA Mortgage Rate Trends For The Week of September 2, 2014

By Joe Wallace

FHA mortgage rates can move higher or lower in any give day or week for many reasons. Those reasons can include overseas headlines (financial or political in many cases) that affect investor behavior in the USA. That was one of the factors this week when it came to rising FHA rates–there was market volatility based on the Russia/Ukraine situation, and we also saw domestic economic data that some market watchers predicted would end up competing with Russia/Ukraine developments as an influence on mortgage rates. Monday was a day off for the markets, so when the three day holiday weekend ended, Tuesday’s rate activity included upward movement in small increments that didn’t change average “best execution” rates for FHA home loans. If you were investigating rates this week, it’s true you | more...