February 17, 2011
The FHA official site has a section called RESPA Borrower's Rights which informs borrowers of a list of things they should be aware of when shopping for an FHA mortgage loan. There are ten areas addressed by the Borrower's Rights section--some are common knowledge, while others imply obligations the lender has to the borrower to fulfill parts of RESPA law that pertain to full disclosure requirements.
January 28, 2011
The FHA and HUD have strict rules prohibiting discriminatory practices when it comes to FHA home loans, but new rules proposed by the Department of Housing and Urban Development would provide much more guidance to lenders and sellers. HUD Secretary Shaun Donovan announced a proposal that would codify equal access to housing rights for all FHA applicants regardless of orientation or gender identity. At a time when "Don't Ask, Don't Tell" regulations have been repealed for U.S. military members, the announcement by HUD is part of a larger movement to insure equal access for a segment of the American public long under-represented by previous incarnations of the nation's equal access laws.
January 24, 2011
When an FHA borrower gets in trouble on an FHA mortgage loan, there is a specific set of steps that take place. From the time the first FHA loan payment is missed to the cut-off date to avoid foreclosure after multiple payments have been missed, there are places along the way where foreclosure could be avoided in many cases. But some borrowers wind up in foreclosure regardless, and the loss of the home can be devastating. But is there a second chance for a borrower to get their home back once it goes into foreclosure proceedings? According to the FHA, in some cases the answer is yes thanks to something known as the redemption period. Redemption is a transaction where the original owner of the foreclosed home is allowed to | more...
January 24, 2011
The FHA has many programs to help home buyers find and purchase a home. But FHA help doesn't end there--the government has a vested interest in helping people keep their homes even in times of financial difficulty. When borrowers get into trouble with their FHA mortgage loans, the first line of defense is to address money problems as early as possible. That's why the FHA offers their toll-free number (1-800-569-4287) to put home owners in touch with a housing counselor.
January 21, 2011
One of the main advantages of an FHA insured loan is the commitment to fairness in lending. The FHA has strict requirements for its lenders when it comes to best practices, and in addition to the laws passed by the federal government to insure fairness in lending, the FHA works with the HUD Office of Fair Housing and Equal Opportunity to investigate complaints about unfair or discriminatory lending practices.
January 17, 2011
The FHA and HUD issue loans to homeowners who want to initiate home improvement projects. Some FHA insured loans require the borrower to complete the work, submit a list of costs and get reimbursed for the amount of the improvements or upgrades. Others may allow energy-efficient upgrades or improvements as part of a construction loan or other FHA mortgage loan product. One of the home improvement programs is known as Title I, a program that allows "light" or "moderate" property rehab.
January 17, 2011
When a first time home buyer wants to apply for an FHA home loan, they have a lot of learning to do about the whole process. The marketplace is full of reputable lenders, but as with any industry there are some individuals and even whole companies with business practices designed to take advantage of the lack of knowledge a newcomer might have. That's one reason the FHA offers a collection of resources for house hunters which includes plenty of advice on how to avoid predatory lending.
January 10, 2011
There are two possible definitions of the term, "FHA Tracer". The most common one is a third-party company that contacts home owners with an offer to help track down a possible refund from the FHA for mortgage insurance premiums. These companies charge finder's fees and ask for payment in exchange for their services. The other definition of the phrase FHA tracer is connected to the FHA itself. While the FHA doesn't use the term "tracer" in connection with its activities, there is an ongoing effort to identity homeowners the FHA owes a refund to.
December 16, 2010
One of the things a first time home buyer notices about the FHA loan process is the abundance of rules and regulations designed to protect the borrower from unscrupulous lending practices. Some of those rules are to prevent a buyer from getting cheated or enter into a predatory lending arrangement. But other FHA requirements are in place to make a level playing field for all applicants; all qualified FHA loan applicants must have access to the same industry-standard terms, conditions and quality.
December 15, 2010
The FHA requires those who do business with it to follow guidelines and regulations that protect both buyer and lender from unscrupulous practices. But FHA rules aren't all. Congress passed the Real Estate Settlement Procedures Act to prevent the practice of kickbacks and unethical referrals. According to the FHA official site, "RESPA was enacted because Congress felt that consumers needed protection from '... unnecessarily high settlement charges caused by certain abusive practices that have developed"...in some areas of the country."