March 31, 2011
If you’re new to the FHA loan process, there are many things to learn, and it’s easy to assume things about an FHA mortgage that might not be true. Did you know there are federal laws that require specific steps
March 28, 2011
In our last blog post, we addressed the question of FHA rules and
March 28, 2011
First time home buyers have many dilemmas and issues to deal with for
March 25, 2011
FHA Mortgagee Letter 2011-11 issued several changes and policy clarifications to refinancing loans. FHA borrowers with existing mortgages should be aware of these changes as they can affect a borrower’s planning when it’s time to consider refinancing a home with streamline or cash-out FHA loan products. One of the changes, scheduled to take effect in mid-April 2011, alters the way closing costs, pre-paid items, discounts and other items are paid for during some types of FHA refinancing. According to the new FHA guidelines, “The mortgagee may not add closing costs, discount items, prepaid items, or other financing costs to the new loan balance.” This applies to borrowers who seek “Non-Credit Qualifying Streamline Refinances” like an FHA Streamline loan. The policy also states, “As a means of controlling risk to FHA
March 25, 2011
There are many loan programs designed specifically to help first-time home buyers. Conventional loans may have special rates for first-timers, the VA offers a lower funding fee on its mortgage loans for first time home buyers, and the FHA is specifically dedicated to helping the first time house hunter make the right choices on a new home purchase. New house hunters might not know, for example, about the Affordable Housing Program or Homeownership Set-Aside Program, created to help low income and middle-income buyers with FHA-approved down payment assistance. There are also state and local programs for first time home buyers and low-income house hunters the FHA can help qualified borrowers apply for. But what does the FHA consider to be a “first time home buyer”? According to the rules, a | more...
March 24, 2011
In February 2011, the FHA released modifications and clarification for a number of policies related to FHA refinancing loans including FHA Streamline Refinance and Cash-Out Refinancing loans. Some of the changes were scheduled to take effect 60 days after the release of FHA Mortgagee Letter 2011-11, while others are listed as “effective immediately.” For example, effective immediately the FHA requirements for Streamline Refinancing were clarified to include instructions to the FHA loan officer regarding how long a borrower must wait from the time an FHA insured mortgage is issued and the application date for Streamline Refinancing. FHA Streamline loans, where no money is paid directly to the borrower, require at least six full months since the first payment due date on the original mortgage.
March 23, 2011
In an age of uncertainty in both the job and the housing markets, there are plenty of scams targeting homeowners fearful of losing their homes to FHA loan default and foreclosure. Anyone worried about defaulting on an FHA mortgage can be more vulnerable to a scam targeted to prey specifically on such fears; the FHA, HUD and the Federal Trade Commission issue regular warnings about mortgage scams. The best defense against companies and individuals who claim to offer relief, bailout programs or counseling–but don’t deliver–is knowing how such scams work. The FTC warns that con artists use a variety of tactics to find new victims. Some advertise on radio, television and websites; others conduct searches of public records to find names and addresses to send more personalized messages. Regardless of | more...
March 22, 2011
FHA home loans aren’t just available for traditional suburban houses; the FHA also insures loans for manufactured housing. Just as with FHA loans for traditional homes, the FHA insures or guarantees the loan rather than providing the loan itself. The FHA guaranty makes qualified borrowers more attractive to lenders willing to issue the loan. FHA Title I loans for manufactured homes can be used in one of three ways–to purchase the home itself, to purchase a lot for a home already owned or to be purchased, and the Title I loan can also be used to buy a manufactured home and lot in combination. The FHA has different loan terms depending on the nature of the Title I loan. Maximum loan amounts for the home only are just under $70 | more...
March 15, 2011
First time home buyers and experienced house hunters alike can learn a lot from FHA-approved housing counseling agencies. For newcomers, learning the ins and outs of FHA mortgages can help a borrower prepare, budget and save money for the loan process while getting an education on how to avoid predatory lending and real estate scams. For experienced buyers, housing counseling is still a good idea–especially if it’s been many years since the original home purchase. Many things about the FHA loan process have changed over the years and an update on old information can be extremely helpful. The federal government believes in FHA-approved and HUD-approved housing counseling. So much so that in late 2010 the Obama administration approved more than $70 million in housing counseling grants for 500 organizations across | more...
March 15, 2011
If you’ve never examined your FHA home loan options before, there is a