Articles in Category: HUD Regulations

January 10, 2015

FHA Clarifies Mortgage Insurance Premium Cuts

When the FHA announced mortgage insurance premium cuts in the annual, mortgage insurance premium (MIP), there was a preliminary announcement on Thursday January 8th, with details promised to follow. Now the FHA has issued a Mortgagee Letter announcing specifics of those MIP cuts. FHA Mortgagee Letter 2015-01 states, “This Mortgagee Letter (ML) communicates revised annual MIP rates for FHA Title II forward mortgages and provides opportunity for cancellation of existing case numbers in order to utilize the MIP rates contained in the ML.” The new rules are effected for FHA loan case numbers assigned on or after January 26 2015. According to the mortgagee letter, the new FHA policy “reduces the rate for annual MIP for all Title II forward mortgages, with terms greater than 15 years, except; –single family forward streamline | more...

January 7, 2015

FHA Mortgage Rate Trends In Early 2015: Decisively Lower

By Joe Wallace

Mortgage rates in general moved within a narrow range of numbers in 2014, and with the anticipation of the new year, many hoped to see rates take a turn for the better and move below what seemed to be the floor in 2014 for rates. And now in the early days of the new year that seems to be happening. Best execution mortgage loan rates–which are not available to all borrowers or from all lenders–have dipped into the mid three percent range going down to an impressive 3.625% for the most qualified borrowers. That’s the rate for 30-year fixed rate conventional mortgage loans, best execution. That rate is offered to borrowers depending on FICO scores, loan repayment history and other financial qualifications. But what about FHA mortgage loan rates? Are | more...

January 7, 2015

FHA Loan Rules: FICO Scores

By Joe Wallace

Many FHA loan applicants want to know what the FHA loan minimum FICO score requirements are, but did you know that FHA loan standards are only part of the equation? The lender will also have minimum FICO scores as a requirement–these minimums may match the FHA standards or exceed it. In many cases a borrower will find the lender has more stringent standards than the FHA. What are the FHA minimum FICO score requirements? The rules for FICO scores on FHA new purchase home loans and refinance of those loans can be found in HUD 4155.1, which gives instructions to lenders on how to process FHA loans. That table above is reprinted from HUD 4155.1, and as you can see, FICO scores of 580 and above are technically eligible for | more...

January 6, 2015

FHA MIP Refunds Part Two: Exceptions

By Joe Wallace

In a recent post, we discussed a reader question about FHA Mortgage Insurance Premiums and the refunds that may be due some FHA borrowers at loan payoff time. The reader asked, “I like to know why FHA MIP don’t send any refund after pay off of my FHA loan pay off 4 months ago.” We replied that FHA borrowers, “may or may not be eligible for a mortgage insurance premiun refund depending on circumstances, but assuming the reader is eligible for a refund, consider the advice found on the FHA official site at www.FHA.gov:” “If you do not receive a check or an application within 45 days after you have paid off your loan, check with your mortgage company to confirm that they have sent HUD a request to terminate the | more...

January 5, 2015

FHA Loan Mortgage Insurance Refunds: A Reader Question

By Joe Wallace

A reader asks, “I like to know why FHA MIP don’t send any refund after pay off of my FHA loan pay off 4 months ago.” FHA borrowers may or may not be eligible for a mortgage insurance premium refund depending on circumstances, but assuming the reader is eligible for a refund, consider the advice found on the FHA official site at www.FHA.gov: “If you do not receive a check or an application within 45 days after you have paid off your loan, check with your mortgage company to confirm that they have sent HUD a request to terminate the mortgage insurance on your loan. If they confirm that the correct termination information was sent, contact HUD. If you do not receive a refund or any other documentation from HUD | more...

January 5, 2015

FHA Loan Reader Questions: Zero Down Payment Home Loans

By Joe Wallace

A reader asks, “I am wanting to know the best way for me to purchase a house with no down payment. Many years ago had a home through an FHA loan, due to divorce we resolved the case. I found a home I would like to have in the country posey road, 5 acres, nice home all new flooring, simple but a very nice home.” “Can you tell me how to go about getting a loan with no down payment and how I can see if you can consider the home I want meets your requirements etc. I’m on Medicare/disabled with an income.” HUD 4155.1 Chapter Five Section B directly addresses this reader question, assuming the question is about FHA loans in general. We can’t speak to non-FHA mortgage loans, | more...

January 3, 2015

FHA Home Loans and The Fair Housing Act

By Joe Wallace

We have written a great deal in this space about FHA home loans and how they are affected by the Fair Housing Act, which governs fair lending practices connected with home loans (among many other things). The Fair Housing Act governs all housing transactions in the United States and violations of this federal law are, when reported, investigated and prosecuted accordingly. How does the Fair Housing Act work? According to the FHA and HUD official site, “Federal law prohibits housing discrimination based on your race, color, national origin, religion, sex, familial status, or disability.” What doe these terms mean? Race discrimination can be fairly obvious, but questions of sex, family status or disability are often harder to define. An applicant cannot, for example, be denied a home loan or a | more...

January 1, 2015

Happy New Year 2015!

By Joe Wallace

Happy New Year 2015! We hope your holiday season has been safe and fun. We pause from our usual posts about FHA home loans and answering reader questions about them to enjoy the holiday. Our regular posting schedule resumes on Friday. Thanks for reading and have a great holiday.

December 30, 2014

FHA Sets New Foreclosure Sales Policy

By Joe Wallace

The FHA and HUD have updated policies related to the sales of foreclosed homes for “all defaulted FHA insured mortgages” with sales scheduled on or after 1 February 2015. According to Mortgagee Letter 2014-24, Increasing Use of FHA’s Claims Without Conveyance of Title (CWCOT) Procedures, the following guidelines will apply to those home sold after the date mentioned above: “Unless otherwise required by statute or jurisdiction, mortgagees are to use the Commissioner’s Adjusted Fair Market Value (CAFMV) for all foreclosure sales and Post-Foreclosure Sales Efforts associated with defaulted FHA insured mortgages when all of the following criteria are met: A.The FHA mortgage insurance is still active for the FHA Case Number; B. The FHA-insured loan is not subject to indemnification. (Note: Items A and B may be verified by checking Neighborhood Watch); C. | more...

December 24, 2014

Happy Holidays!

By Joe Wallace

From all of us here, have a safe and happy holiday! We pause from our usual posts about FHA loans, answering reader questions, and FHA news to celebrate the season. Our regularly scheduled posts will return on Friday. Thanks for reading and we hope your holiday time is filled with joy. –The Staff at FHANewsBlog.com