Articles in Category: HUD Regulations

January 28, 2011

New FHA Proposal Tightens Anti-Discrimination Regulations

The FHA and HUD have strict rules prohibiting discriminatory practices when it comes to FHA home loans, but new rules proposed by the Department of Housing and Urban Development would provide much more guidance to lenders and sellers. HUD Secretary Shaun Donovan announced a proposal that would codify equal access to housing rights for all FHA applicants regardless of orientation or gender identity. At a time when "Don't Ask, Don't Tell" regulations have been repealed for U.S. military members, the announcement by HUD is part of a larger movement to insure equal access for a segment of the American public long under-represented by previous incarnations of the nation's equal access laws.

January 26, 2011

FHA Loans and Foreclosure: a Timeline

By Bruce Reichstein

With home foreclosures still in the news even several years after the housing crisis of 2008, we've written a fair amount on topics related to foreclosure on FHA home loans. Default and foreclosure are often preventable if the buyer takes action early; in some cases a simple bit of additional information is the only thing a borrower needs to take action that can save the home. Missing one FHA mortgage loan payment isn't good, but it is not the end of the world if the buyer contacts the loan officer and the FHA to discuss next steps. But what happens when the buyer misses the a second payment? The FHA says when the second payment in a row is missed, the bank will definitely reach out to the homeowner, but | more...

January 24, 2011

FHA Loans, Foreclosure, and the Redemption Period

By Joe Wallace

When an FHA borrower gets in trouble on an FHA mortgage loan, there is a specific set of steps that take place. From the time the first FHA loan payment is missed to the cut-off date to avoid foreclosure after multiple payments have been missed, there are places along the way where foreclosure could be avoided in many cases. But some borrowers wind up in foreclosure regardless, and the loss of the home can be devastating. But is there a second chance for a borrower to get their home back once it goes into foreclosure proceedings? According to the FHA, in some cases the answer is yes thanks to something known as the redemption period. Redemption is a transaction where the original owner of the foreclosed home is allowed to | more...

January 24, 2011

FHA Loans and Foreclosure: Are You In Danger?

By Bruce Reichstein

The FHA has many programs to help home buyers find and purchase a home. But FHA help doesn't end there--the government has a vested interest in helping people keep their homes even in times of financial difficulty. When borrowers get into trouble with their FHA mortgage loans, the first line of defense is to address money problems as early as possible. That's why the FHA offers their toll-free number (1-800-569-4287) to put home owners in touch with a housing counselor.

January 21, 2011

FHA Fair Lending Standards

By Joe Wallace

One of the main advantages of an FHA insured loan is the commitment to fairness in lending. The FHA has strict requirements for its lenders when it comes to best practices, and in addition to the laws passed by the federal government to insure fairness in lending, the FHA works with the HUD Office of Fair Housing and Equal Opportunity to investigate complaints about unfair or discriminatory lending practices.

January 20, 2011

FHA Loans and Non-Residential Use

By Bruce Reichstein

An FHA insured home loan for a single family property has rules that govern the use of the home when it comes to what the FHA defines as "non-residential" purposes. FHA requirements say appraisers must evaluate a property on a square footage basis for homes that have a portion of that footage dedicated to business use. FHA rules say that any home, condo or multi-unit property must use no more than 25% of the square footage for business or non-residential use.

January 17, 2011

FHA Warns of Deceptive Home Improvement Schemes

By Bruce Reichstein

The FHA and HUD issue loans to homeowners who want to initiate home improvement projects. Some FHA insured loans require the borrower to complete the work, submit a list of costs and get reimbursed for the amount of the improvements or upgrades. Others may allow energy-efficient upgrades or improvements as part of a construction loan or other FHA mortgage loan product. One of the home improvement programs is known as Title I, a program that allows "light" or "moderate" property rehab.

January 17, 2011

FHA Loans and Predatory Lending–Ask an Agent

By Bruce Reichstein

When a first time home buyer wants to apply for an FHA home loan, they have a lot of learning to do about the whole process. The marketplace is full of reputable lenders, but as with any industry there are some individuals and even whole companies with business practices designed to take advantage of the lack of knowledge a newcomer might have. That's one reason the FHA offers a collection of resources for house hunters which includes plenty of advice on how to avoid predatory lending.

January 14, 2011

FHA Appraisal Facts

By Bruce Reichstein

The appraisal process is one of the most important aspects of the FHA loan process. Once the buyer has applied for an FHA guaranteed loan and has established that he or she is a good credit risk, the next phase of the process--finding a suitable home and making an offer--is directly affected by the appraisal system. The rules say an FHA-approved appraiser must view the property to establish the fair market value of the home. But there are a number of issues that the buyer should know about--things that affect the process that have nothing to do with the appraisal itself.

January 10, 2011

What is an FHA Tracer?

By Joe Wallace

There are two possible definitions of the term, "FHA Tracer". The most common one is a third-party company that contacts home owners with an offer to help track down a possible refund from the FHA for mortgage insurance premiums. These companies charge finder's fees and ask for payment in exchange for their services. The other definition of the phrase FHA tracer is connected to the FHA itself. While the FHA doesn't use the term "tracer" in connection with its activities, there is an ongoing effort to identity homeowners the FHA owes a refund to.