Articles in Category: HUD Regulations

November 14, 2016

HUD Announces Fair Housing Act Charges, Settlements

The Department of Housing and Urban Development has announced a new Fair Housing Act case in Florida, and settlements of similar cases in two other states. According to a press release at the HUD official site, ” The U.S. Department of Housing and Urban Development (HUD) announced today that it is charging landlords in South Florida with discrimination against tenants with disabilities. Meanwhile, HUD is announcing separate agreements with landlords in Nevada and Massachusetts resolving similar charges.” According to the press release HUDNo.16-169, “HUD charged the owner of Hillcrest East Building No. 22, a multifamily development in Hollywood, Florida; the properties management company, Rhodes Management; and a previous president of the homeowners association with housing discrimination for failing to make reasonable accommodations, publishing discriminatory notices and statements, and attempting to | more...

November 8, 2016

HUD Adds Relief For Hurricane Matthew Victims In Virginia

By Joe Wallace

Last month, we reported on a HUD press release announcing relief for victims of Hurricane Matthew. That relief was offered in four states; North and South Carolina, Florida, and Georgia. Now, HUD has announced the same kind of relief for those who live in Virginia and are dealing with the aftermath of Hurricane Matthew. According to the HUD press release, “The U.S. Department of Housing and Urban Development announced today it will speed federal disaster assistance to the Commonwealth of Virginia and provide support to homeowners and low-income renters forced from their homes due to Hurricane Matthew.” The release adds, “President Obama issued a disaster declaration for the cities of Chesapeake, Newport News, Norfolk, and Virginia Beach. The President’s declaration allows HUD to offer foreclosure relief and other assistance to | more...

November 7, 2016

HUD Announces Settlement In Illinois Fair Housing Case

By Joe Wallace

A press release on the HUD official site announces that the U.S. Department of Housing and Urban Development has reached an agreement between the East Chicago Housing Authority and a fair housing organization, “resolving multiple complaints of housing discrimination” according to the press release. Acting on behalf residents in the area, the Sargent Shriver National Center on Poverty Law alleged the East Chicago Housing Authority violated the Fair Housing Act, Title VI of the Civil Rights Act of 1964, and Section 504 of the Rehabilitation Act, “with respect to the relocation of residents at West Calumet Housing Complex due to soil surrounding the complex being contaminated with lead and arsenic.” The HUD press release states that, according to the complaint, “the housing authority engaged in discriminatory housing practices in its | more...

Buying A Fixer-Upper With An FHA 203(k) Rehab Loan

November 4, 2016

High Voltage Lines and FHA Loans

By Joe Wallace

A reader asked a question recently about high voltage transmission lines and the FHA loan rules that address them in relation to the property to be purchased with an FHA mortgage. “I am looking to find info regarding High Voltage Transmission Lines. I know that in 4150.2 that it clearly states that the dwelling or other improvements can not be within the fall zone. However I am not locating this info in more updated references. Can you help with me finding this info?” FHA loan rules were updated in HUD 4000.1, and have since replaced many older references. According to the FHA/HUD official site, “The Federal Housing Administrations (FHA) Single Family Housing Policy Handbook 4000.1 (SF Handbook) is a consolidated, consistent, and comprehensive source of FHA Single Family Housing policy”. | more...

November 2, 2016

HUD Brings Charges Against Ohio Housing Authority

By Joe Wallace

The Department of Housing and Urban Development is bringing charges against the Ohio Housing Authority for what it says are violations of the Fair Housing Act. At first glance, a Fair Housing Act case against a state or local housing authority might not seem to have much to do with FHA mortgage loans, but the fact is that fair housing issues affect people at all levels of the home loan process, whether planning or actually purchasing. The family or individual that needs to rent, utilize public housing, or take other steps to find or use housing before purchasing a home is entitled to the same rights as those currently purchasing. Violations of those rights can negatively affect a potential borrower’s ability to find an purchase a home, which is why | more...

November 2, 2016

Down Payment Rules: An FHA Loan Question

By Joe Wallace

A reader asks, “I’m buying a home for 160,000 and the seller is paying up to 4000 in closing costs and pre-paids (which the closing cost ended up only being 3,525 because the lender required me to pay for the appraisal outside of closing POC) I also put 500 earnest money down.” “They are telling me that I have to bring 5,100 to closing instead of 4,625 because they said that I have to bring a total of 3.5% (5600) and the 475 that I already prepaid can not go towards my total 3.5% down. I thought that because I put 500 earnest money deposit and paid for the appraisal outside of closing and the seller is paying for all my closing costs, that I would be able to use | more...

October 27, 2016

FHA Appraisal Rules: The Roof

By Joe Wallace

FHA appraisal rules cover a variety of aspects of the home. FHA appraisal requirements are found in HUD 40001., and include guidelines for electrical systems, plumbing, paint, and also requirements for the roof. FHA appraisers perform a review of the property to make sure it meets minimum standards, but the appraisal is NOT a home inspection, a guarantee that a home is defect-free, etc. Borrowers should never rely on the FHA appraisal as a stamp of approval or anything similar to a home inspection. Your appraisal fee does not cover this inspection, but the inspection is an investment that could save you thousands of dollars later on. When it comes to FHA appraisal rules for the roof, HUD 4000.1 begins on page 488, stating, “The Appraiser must notify the Mortgagee | more...

FHA Loans And Natural Disasters: What You Should Know

October 24, 2016

Mold Standards: An FHA Loan Question

By Joe Wallace

A reader asks, “Does the EPA or the FHA have the responsibility for setting the TLVs for mold spores in the air? What if the mold count is higher outside than inside?” The FHA does not set or regulate such health issues, deferring instead to federal, state, or local authority where applicable. According to the Environmental Protection Agency’s official site, we learn the following about mold as it relates to exposure in buildings (in general): “Is sampling for mold needed? In most cases, if visible mold growth is present, sampling is unnecessary. Since no EPA or other federal limits have been set for mold or mold spores, sampling cannot be used to check a building’s compliance with federal mold standards. Surface sampling may be useful to determine if an area | more...

October 18, 2016

Appraisals: FHA Loans and MPR Rules

By Joe Wallace

We get many questions about FHA appraisals, and there are some critical issues to keep in mind when considering this mandatory part of the FHA loan process. A home to be purchased with an FHA mortgage loan must pass an FHA appraisal, which is intended strictly to assess the fair market value of the home and insure the property meets FHA minimum standards. Note the use of the use of the word, “minimum”. Appraisals are NOT intended as INSPECTIONS of the property. A home that passes an FHA appraisal is not guaranteed to be free of problems, and the FHA makes it clear that borrowers should not accept the appraisal as any sort of stamp of FHA approval. In all cases, a borrower purchasing a home with an FHA mortgage | 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...