Articles in Category: HUD Regulations

November 11, 2010

Does the FHA Require an Escrow Account for FHA Mortgages?

In our last post, we discussed escrow accounts, which a lender may require to be set up in connection with an FHA loan in order to pay mortgage insurance, property taxes and other expenses with no fear of missed payments or penalties for late payments. When a lender sets up an escrow account in the buyer's name for these purposes, they often add the costs of the insurance and other payments into the mortgage, making one simple payment for the buyer. The extra money is placed into escrow and held until it is needed to pay the insurance, taxes or other items.

November 11, 2010

What is an Escrow Account and Why Do I Need One for an FHA Loan?

By Joe Wallace

If you're thinking of buying that first home, you've probably read plenty of real estate articles and brochures with a wealth of new vocabulary. One of these is "escrow". Until applying for an FHA home loan, many people have never needed an escrow account so it's no surprise that "What is an escrow account and why do I need one for an FHA mortgage?" is such a common question.

November 10, 2010

What is the Minimum Down Payment on an FHA Loan?

By Joe Wallace

How much is the minimum down payment on an FHA loan for a single family home? It's one of the big questions a buyer should ask when trying to plan a financial future that includes a down payment, closing costs, associated fees and other expenses. When buying a home with an FHA mortgage, some expenses may be included in the financing, but not the down payment.

November 4, 2010

Exceptions to RESPA Good Faith Estimate Requirements for FHA Loans

By Joe Wallace

The Real Estate Settlement Procedures Act or RESPA, requires buyers to be more fully informed as to the costs of an FHA loan including how much they must pay for closing costs, and how much is refundable vs. non-refundable if the buyer has a change of mind and backs out of the loan. These FHA requirements are designed to protect borrowers from "gotcha" charges, unexpected expenses and other problems; RESPA is also designed to help lenders and buyers work together knowing that all terms are understood and expected.

November 3, 2010

FHA Loans and the Borrower’s Rights

By Joe Wallace

First time home buyers often feel a bit lost in the sea of loan vocabulary, federal laws and credit requirements they have to deal with in order to buy their new home. If you want to buy a new home with an FHA loan, there are plenty of people willing to help. Unfortunately not all of them have the home buyer's best interests in mind. That's one of the reasons for the Real Estate Settlement Procedures Act or RESPA for short, which requires lenders to provide a standardized Good Faith Estimate -- a document that clearly lists the terms of the home loan and closing costs.

November 2, 2010

Proposed FHA Loan Changes Would Increase Lender Scrutiny, Protect Customers

By Joe Wallace

In October 2010, the U.S. Department of Housing and Urban Development proposed tighter regulations that would require lenders to reimburse the Federal Housing Administration for claims on FHA home loans that don't meet FHA requirements. The proposed legislation is part of a move initiated at the start of 2010 to change FHA policy in order to protect the FHA loan program and hold banks more accountable for the FHA loans they approve.

July 23, 2010

FHA Investigates Possible Violations of Fair Housing Act

By Bruce Reichstein

Recent reports in the media suggest some lenders may be illegally discriminating against FHA loan applicants for being pregnant or having short-term disabilities. The New York Times reports one example of such possible; reporter Tara Siegel Bernard writes one applicant

June 16, 2009

Using the 2009 First-Time Homebuyer Tax Credit

By Bruce Reichstein

First time home buyers purchasing a home with an FHA loan or going through a HUD-approved charitable agency can use their 2009 First Time Homebuyer's Tax Credit to make their downpayment. The Department of Housing and Urban Development recently announced this new first-time homebuyer perk, which helps millions of FHA borrowers reduce the financial stress of making that first home purchase.

June 12, 2009

2009 Tax Credit and FHA Loan Down Payments Update

By Bruce Reichstein

FHA borrowers were told they could use the loan as a down payment on their homes, but legal issues prevent banks from issuing down payment assistance on FHA mortgages. Since the initial May announcement, the rules have been revised so that such bridge loans are used within federal guidelines.

June 10, 2009

FHA Home Loan Numbers Increase in Spite of Housing Slump

By Bruce Reichstein

While indicators show conventional lending markets are still feeling the effects of the housing slump the FHA has taken a larger role in helping consumers get affordable home loans. Some of the most recent developments are making those on the fence about buying a new home in this economy give FHA loans a second look.