Articles in Category: HUD Regulations

March 21, 2011

FHA Updates Recommendations For Homes With Problem Drywall

The FHA has issued a press release that addresses fixing “problem drywall” in homes including those purchased or intended to be purchased with FHA mortgage loans. In May 2010, the U.S. Consumer Product Safety Commission press release, “CPSC Identifies Manufacturers of Problem Drywall Made in China” identified a group of manufacturers, “whose drywall emitted high levels of hydrogen sulfide in testing conducted for the agency by Lawrence Berkeley National Laboratory (LBNL). There is a strong association between hydrogen sulfide and metal corrosion” according to the press release. That corrosion had the potential to damage the electrical system in homes built with drywall made by the manufacturers named in the release. Could the value of, or the quality of life in, those homes be affected by the problem drywall? The FHA | more...

March 18, 2011

FHA Loans and Home Inspections

By Joe Wallace

Once an FHA appraisal has been completed and a borrower is informed

March 16, 2011

FHA 203(k) Rehab Mortgages

By Joe Wallace

It’s true that those dedicated to purchasing and improving a fixer-upper home face a challenging road when it comes to getting the money to do the job properly. A loan applicant trying to get a conventional loan may face requirements that the improvements be done and paid for before the money for those repairs will be issued–not an ideal situation for those trying to balance budgets, pay the mortgage on time and improve their property. An FHA loan could be the answer. The 203(k) loan program provides qualified borrowers with an FHA insured loan to those using the property to be improved as the primary residence. (It’s not for investment properties or rental units.) As with other FHA mortgage loans, there is a 3.5% minimum down payment. But 203(k) mortgages | more...

March 11, 2011

FHA Advice: Don’t Pay For Foreclosure Avoidance Counseling

By Joe Wallace

There are many ads on television by private companies offering debt counseling services. But when it comes specifically to foreclosure avoidance, did you know you do not have to pay for counseling services? According to the FHA official site, “Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks

March 10, 2011

How Does the FHA Protect Borrowers From Loan Fraud?

By Bruce Reichstein

The FHA issues warnings to consumers about predatory lending, but many people don’t know what predatory lending practices are until there’s a string of headlines about one specific type of activity. Protecting yourself against fraud and unethical practices in the real estate business is much easier when you know what to look for. It’s not that the real estate business is rife with dirty tricks–it likely suffers from the same amount of fraud as any other major industry–but the stakes are obviously much higher when it comes to buying a home. That’s why the FHA has requirements in place to protect the borrower. Look at the types of fraud sometimes found in the marketplace and compare the FHA rules to those governing other types of loans and you’ll see a | more...

March 7, 2011

FHA Appraisal Fee Facts

By Joe Wallace

The FHA loan process includes an appraisal of the property to be purchased. This appraisal is performed by an FHA approved professional and the loan cannot move forward without it. The appraisal is a critical part of the process for two reasons–it establishes that the property meets the FHA minimum property requirements and establishes a fair market value for the property. Once the fair market value is known, the FHA loan amount can be approved, provided the borrower has meet all FHA requirements for creditworthiness and other factors. FHA Appraisal Fact–The Borrower Pays For The Appraisal The FHA allows the lender to charge the borrower for the FHA appraisal. This is a standard part of the loan process. There are many reasons why this cost must be handled by the | more...

February 17, 2011

The FHA Borrower’s Rights Under RESPA Part 2

By Joe Wallace

In our last post we discussed FHA loans and the list of RESPA Borrower's Rights--a collection of rights FHA loan applicants need to know before applying for an FHA mortgage loan. The ten areas covered under RESPA Borrower's Rights include informed borrower requirements such as full disclosure of all non-refundable loan fees and other charges, disclosure as to the final cost of the loan and other important details.

February 17, 2011

FHA Borrower’s Rights Under RESPA

By Joe Wallace

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.

February 16, 2011

The FHA and Fair Lending Laws

By Bruce Reichstein

The FHA official site has much to say about fair lending laws. Over the years the FHA loan program has seen its share of regulatory changes designed to give fair and equal access to all qualified borrowers regardless of race, color, national origin, religion, sex, family status or disability.

February 1, 2011

FHA Extends Anti-Flipping Waiver

By Joe Wallace

In a move designed to help stabilize the U.S. housing market, the FHA has announced an extension of it's anti-flipping waiver, which temporarily allows the FHA to insure loans for properties owned by the seller for 90 days or less, through the end of 2011.