Articles in Category: HUD Regulations

February 6, 2015

FHA Loan Forbearance: A Reader Question

A reader asks, “Got fha loan for our home on Dec 2011. We have been doing fine until early 2014, we got a little behind. We have never let any payment be more than 30 days late, but we had some late payments to our bank on this loan. My wife is out of work after this month. Do we have any forbearance options?” In situations like these it’s extremely important to being talking with the lender right away. FHA loans do have forbearance options for qualified borrowers, but many of a borrower’s options are most plentiful before the mortgage becomes delinquent. Working with your lender at the first sign of trouble with the mortgage loan is a very important move towards foreclosure avoidance. According to the FHA official site: | more...

February 5, 2015

FHA Loan Case Numbers: A Reader Question

By Joe Wallace

A reader asks, “How can I as a consumer find out if my FHA case number has been issued without asking lender? It does not do me any good to call lender I talk to a different person everyday. I keep getting told it has not been issued.” “I put in application on January 6th, 2015. I know they probable had to cancel my old case # because I had an appraisal done on the 12th. This is a refinance and I have been in this house for over 10 years. How long is it taking FHA to issue the new case numbers? I realize they are delays since the reduction went into place but it has been 6 days. Is there a number I can call to see if | more...

February 4, 2015

FHA Loan Rules On Giving Personal Property To The Buyer

By Joe Wallace

Sometimes when a borrower purchases a home, the seller will offer to to throw in some types of personal property as part of the deal. Knowing that the FHA has strict rules on something known as “inducements to purchase”, does the FHA allow or deny sellers to offer personal property to sweeten the real estate deal? An inducement to purchase is when the seller offers to pay certain expenses on behalf of the borrower that exceed six percent of the sales price or appraised value (whichever one is lower). But offering property isn’t the same as paying in the eyes of some–does that mean the property is exempt from inducements to purchase regulations? The answer to this question can be found in HUD 4155.1, Chapter Two, Section A. That part | more...

January 28, 2015

Chapter 13 Bankruptcy and FHA Refinance Loans: A Reader Question

By Joe Wallace

A reader asks, “Is It possible to refinance while in chapter 13 for a lower rate. We Don’t qualify for the government HARP program.” FHA loan rules for getting new loans when it comes to bankruptcy allow the lender to exercise some discretion depending on circumstances, but depending on the type of bankruptcy a borrower may also need the court’s permission to apply. Borrowers in Chapter 13 bankruptcy have some options according to HUD 4155.1 Chapter Four Section C which states: “A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that –one year of the pay-out period under the bankruptcy has elapsed –the borrower’s payment performance has been satisfactory and all required payments have been made on time, and –the | more...

January 27, 2015

FHA Loans, Seasoning Requirements and Legal Assistance: A Reader Question

By Joe Wallace

A reader asks, “Have a question on issue of a legal settlement made on property ,, money to settle suit was borrowed on a promossory note and given to attorneys… few months later owner gave a lien to individual in case of untimely death , deed clearly states that it was NOT a home equity loan and title company agrees that the property is not subject to home equity rules etc,, A reverse mortgage lender tells me that it has to be seasoned as a home equity loan which kills the loan My attorney has shown lender that money borrowed from individual went to settlement funds and small attorney fee and was not an equity loan! There was no HUD or closing,, the lender gave me a clear deed! Surly there is | more...

January 26, 2015

FHA Housing Counseling: A Reader Question

By Joe Wallace

A reader asks, “I would like to know if you recommend a first time home buyer class in Denver?” We don’t have the resources to recommend a specific agency or class as a function of this blog, but the FHA itself does have plenty of resources to help home buyer, including a referral service that can put potential FHA borrowers in touch with an FHA/HUD approved housing counselor in the borrower’s local area. To request this referral, call the FHA at their toll-free number: 1-800 CALL FHA and request a referral to a housing counselor for pre-purchase counseling. Borrowers can also search the FHA website for information on state or local programs at the State Info page on the FHA official site. The page for Colorado, for example, includes a variety | more...

January 17, 2015

FHA Mortgage Rate Trends: 20-Month Lows This Week

By Joe Wallace

Mortgage loan rates this week were described by some sources at “near 20-month lows”. This week mortgage loan rates, best execution, benefitted from some volatility that can and often does bring a correction to push the rates back into more realistic territory. 30-year fixed rate conventional mortgage loan best execution rates approached 3.5% for some extremely well qualified borrowers applying with lenders offering that possibility. However, on Friday a slight correction did come, bringing the best execution rate back up into 3.625% territory. That rate is a best execution rate and is not available to all borrowers or from all lenders. Your FICO scores and loan repayment history will affect your ability to access that rate. Even so, borrowers who were offered higher rates than the best execution numbers still | more...

January 14, 2015

FHA Mortgage Rate Trends: Rates Moving To 2013 Lows

By Joe Wallace

Mortgage loan rates have in general hit some amazing lows in the earliest days of 2015. At the time of this writing mortgage loan rates dipped to lows some sources report not available since May 2013. For some extremely well-qualified borrowers, mortgage loan best-execution rates have actually dipped to at or near 3.5% for 30-year fixed rate conventional mortgage loans. That’s a rate not available to all borrowers or from all lenders–access to best execution rates depends on the applicant’s FICO scores and other financial qualification. But suffice it to say that home loan rates are looking very competitive in 2015 thus far. Many borrowers who can’t access the 3.5% best execution rate may be able to get quoted 3.625% (again, based on extremely well-qualified borrowers with excellent FICO scores | more...

January 12, 2015

FHA Loans, Short, Sales, and Missed Payments: A Reader Question

By Joe Wallace

A reader asks, “If we do a short sale and are current on our mortgage, can we still get an FHA loan if we had any other late payments during the year? It is confusing because in one section it says “current on mortgage and other installment loans” and in all other places it just says “current on Mortgage.” FHA loan rules make it clear that lender discretion is an important factor in situations like these. In general, FHA loan rules say that a lender may permit a borrower with a short sale to apply for a new FHA loan without a waiting period IF the borrower was current on the previous mortgage loan at the time of the short sale. That said, lender standards still apply when it comes | more...

January 12, 2015

FHA Loan Application Requirements: A Reader Question

By Joe Wallace

A reader asks, “My husband and I are trying to pay off debt and raise our credit scores to buy a home. Is there a program to help with a down payment? What are the steps needed to get approved for fha loan?” The FHA itself does not provide a downpayment assistance program, but one may be available at a state or local agency. The FHA does have a list of state information that can help you learn what home buyer/home ownership resources might be available near you. You can look up this list at http://portal.hud.gov/hudportal/HUD?src=/states. Steps to an FHA home loan include planning and preparation–you should research the housing market where you want to purchase the home, examine homes for sale you want to purchase and other steps, but one | more...