Articles in Category: FHA Lenders

March 27, 2017

FHA Loans and Co-Signers: A Reader Question

A reader asked us a question about FHA loans and co-signers recently. “If I cosigned for a friend and he refinanced to get everything put in his name and me taken off, am I eligible for an FHA loan for my own home?” FHA mortgage loan requirements refer to co-signer arrangements and “contingent liabilities”. HUD 4000.1 says: “A Contingent Liability refers to a liability that may result in the obligation to repay only when a specific event occurs. For example, a contingent liability exists when an individual can be held responsible for the repayment of a debt if another legally obligated party defaults on the payment. Contingent liabilities may include Cosigner liabilities and liabilities resulting from a mortgage assumption without release of liability.” If the reader’s circumstances meet that definition | more...

February 20, 2017

Happy Presidents Day 2017!

By Joe Wallace

Happy Presidents Day! Markets and banks are closed in observance of the holiday, and we pause our usual posts on FHA loan issues and reader questions about FHA mortgages as well. Our regular posting schedule returns on Tuesday. Have a safe and happy holiday and thank you for reading!

FHA One-Time Close Construction Loans In 2019

February 15, 2017

Switching Lenders: The FHA Loan Rules in 2017

By Joe Wallace

Home loans sometimes feature complications. A borrower may decide to cancel the transaction altogether, have a change of mind on certain details of the mortgage, or in some cases switching lenders may be required. What are the FHA loan rules for switching lenders? Borrowers should know that the FHA loan rule book, HUD 4000.1, has some specific instructions in this area. Borrowers can expect the loan rules to function in some very specific ways should this be needed. According to HUD 4000.1: “The original Mortgagee must assign the case number to the new Mortgagee using the Case Transfer function in FHAC immediately upon the Borrowers request” (emphasis ours). The case number mentioned here refers to the FHA-assigned number required to move forward with the mortgage. Having an FHA case number | more...

February 14, 2017

HUD Announces Relief For Louisiana Tornado Victims

By Joe Wallace

Federal relief is available for those affected by tornadoes in Louisiana. On Monday, February 13th 2017, the U.S. Department of Housing and Urban Development (HUD) announced it will “speed federal disaster assistance to the State of Louisiana and provide support to homeowners and low-income renters forced from their homes due to severe storms, tornadoes, and straight-line winds” according to a press release on the FHA/HUD official site. There has been a federal disaster declaration for Livingston and Orleans parishes. “The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county” according to HUD.gov. What types of assistance are available? Foreclosure relief, rehab loans, rehab refinance loans, and other options. There may also be assistance from FEMA available to affected home owners. According | more...

December 26, 2016

Happy Holidays!

By Joe Wallace

Happy Holidays 2016! The Monday AFTER December 25 might seem to be a strange time to make that statement, but today is the observed holiday since Christmas came over the weekend this year. Many banks are closed, the markets that affect mortgage rates aren’t operating to day, and we too observe the extended holiday weekend. We’ll resume our usual posting schedule on Tuesday including an updated look at mortgage rate trends. Thank you for reading!

December 23, 2016

FHA Loan Limits in 2017 Corrected

By Joe Wallace

FHA loan limits for 2017 were posted on the FHA/HUD official site recently, but the Federal Housing Administration has updated the original post with a correction. According to an FHA mortgagee letter, “Mortgagee Letter 16-20 set Federal Housing Administration forward mortgage limits for calendar year 2017, but indicated incorrect ceiling limits for Alaska, Hawaii, Guam, and the Virgin Islands, which are special exception areas which allow for higher construction costs.” That’s according to Mortgagee Letter 2016-25, which adds the “the correct forward mortgage limit ceiling for those special exception areas”. The Mortgagee Letter is quick to add that there are NO CHANGES for FHA loan limits, including those in the special exception areas. According to the new mortgagee letter: “While ML 16-20 referenced incorrect ceiling limits for the special exception | more...

October 12, 2016

HUD Announces Relief Measures Following Hurricane Matthew

By Joe Wallace

The Department of Housing and Urban Development has announced relief measures following Hurricane Matthew. According to the HUD official site, “U.S. Housing and Urban Development Secretary Julian Castro today announced HUD will speed federal disaster assistance to the States of North Carolina, Florida, and Georgia and provide support to homeowners and low-income renters forced from their homes due to Hurricane Matthew.” The HUD press release announcing this relief also ran a list of areas President Obama issued a disaster declaration for-the following counties have been declared federal disaster areas: North Carolina: Beaufort, Bladen, Columbus, Cumberland, Edgecombe, Hoke, Lenoir, Nash, Pitt, and Robeson. Florida: Brevard, Duval, Flagler, Indian River, Nassau, St. Johns, St. Lucie and Volusia. Georgia: Bryan, Camden, Chatham, Glynn, Liberty, and McIntosh. According to the press release, HUDNo.16-155, “The | more...

September 26, 2016

Divorce and FHA Loans: A Reader Question

By Joe Wallace

A reader asks, “I am trying to qualify for an FHA Loan. I have been apart from my husband for over 13 yrs but not legally divorced. I am currently applying for an FHA Loan and DO NOT want him to be a part of anything Im doing and have FINALLY filed for divorce. House buying is a short sale and I need a fast approval.” “My divorce will take 3 months, I dont have the time! Do I qualify for any type of exception considering we have been apart for 13 years and the IRS has accepted me as an Innocent Spouse Relief and Separation of Liability and Equitable Relief?” This is a difficult question to answer for one important reason: state law is a determining factor in circumstances | more...

September 22, 2016

HUD Announces Final Rule For Equal Access

By Joe Wallace

The Department of Housing and Urban Development (HUD) has announced a new final rule that promises important protections for all Americans seeking housing, regardless of their sexual orientation or gender identity. According to a press release on the HUD official site, the new final rule is known as, “Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity“. The press release says the final rule affects everything from FHA mortgage loan programs to housing services and benefits. “Following what had previously been a practice encouraged by HUD, providers that operate single-sex projects using funds awarded through the Departments Office of Community Planning and Development (CPD) will now be required to provide all individuals, including transgender individuals and other individuals who do not identify with the sex | more...

September 7, 2016

FHA Loan Rules For Residency: A Reader Question

By Joe Wallace

One not-so-commonly asked questions about FHA loans is still an important issue to address. Here’s a recent reader question on a borrower’s ability to be approved for an FHA mortgage without being a U.S. citizen: “Ive just moved to the US from the UK on a K-1 Fiance Visa. Ive been here around 5 months. Just received my work authorization card through the mail, waiting for my social security number now. Ive been working voluntarily since I arrived…would we qualify for an FHA Mortgage Loan? Ive contacted two lenders who have told us that we might be entitled to a loan but they’re unsure.” The short answer to this questions is that technically speaking, non-U.S. citizens are eligible for FHA home loans unless they are in the United States illegally. | more...