Articles Tagged With: FHA 203k Mortgage

November 11, 2011

FHA Loans and Fair Housing Rules: Settlement Reached in Maternity Discrimination Case

FHA loans, like VA and conventional home loan programs, are subject to the Fair Housing Act, RESPA and other federal laws which work together to prevent discrimination in the housing market. One of the rules established by these laws concerns discrimination against home loan applicants based on their family status. That includes discrimination against FHA loan applicants based on pregnancy, single parenthood, the number of children in a given family, and other factors. Such discrimination is prohibited by federal law. The Department of Housing and Urban Development issued a press release on November 3, 2011, stating that it “has reached an agreement with Luxury Mortgage Corporation (LMC), a mortgage lender based in Stamford, Connecticut, settling accusations that the lender discriminated against a woman by denying her mortgage loan because she | more...

October 31, 2011

FHA Rehab Loans

By Joe Wallace

The FHA 203(k) Rehab loan allows buyers and current home owners to “finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.” The 203(k) can help raise the value of a property or simply make the home more comfortable for those who aren’t interested in selling. Many people think of the 203(k) only when considering large projects, but did you know there’s a smaller version of the 203(k) allowed by the FHA? According to the HUD official site, “For less extensive repairs/improvements” borrowers are encouraged to apply for a Streamlined 203(k). According to the rules of an FHA 203(K), the property must be at least one year old–the 203(k) isn’t meant for | more...

October 21, 2011

Getting Ready For An FHA Home Loan

By Joe Wallace

Buying a home is a big decision. There are many factors to consider when trying to prepare for the commitment of home ownership, and an FHA loan applicant can learn a great deal by examining an FHA loan application and using an FHA mortgage calculator to learn what kind of financial details come into play. FHA loan pre-qualifying questions at sites like FHA.com (a private company, not a government website) ask some very important starter questions you can use to begin your research. For example, do you know how much you’re willing to spend on the home? Many borrowers at the beginning of the research process have a hard time judging what prices are fair for homes in their area and which ones might need some negotiation. Anyone who feels | more...

October 7, 2011

Buying a Fixer-Upper With an FHA Loan

By Joe Wallace

The FHA fixer-upper loan, technically called an FHA 203(k) mortgage, is for those who want to purchase property which is in need of repair. The borrower purchases the property with the understanding that it must be renovated or repaired by the purchaser (with funds from the loan) as part of the loan agreement. Borrowers apply for this type of home loan in a different manner than for new purchase loans where the property must be in acceptable condition–the loans known as FHA 203(b) mortgages. For the fixer-upper or 203(k) loan, the borrower applies for a loan and agrees to make a down payment for at least 3.5% of the purchase price and repair costs of the property. According to FHA loan rules, the buyer finds the right home and gets | more...

September 6, 2011

How To Buy A HUD Home

By Joe Wallace

A HUD home, also known as a HUD REO property, is described by the FHA as “a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.” HUD homes are good deals because they are offered at a discount and are sold as-is. That means there is no insurance on the property and borrowers are strongly encouraged to get a home inspection prior to committing to the sale. In some cases a HUD home may not require repairs, but in others these homes make great fixer-upper projects. Best of all, according to the FHA official site, “Anyone can purchase a HUD Home as long | more...

September 1, 2011

FHA Announces Help for New York and North Carolina Storm Victims

By Joe Wallace

With Hurricane Irene now a memory, the job of cleaning up and recovering still challenges many communities. President Obama has declared parts of New York and North Carolina as federal disaster areas, and the FHA has announced help for those in those areas. We’ve run quite a number of these announcements in 2011, and regular readers likely notice a pattern; FHA assistance for federal disaster areas includes FHA loan foreclosure moratoriums, forbearance and other assistance, it also includes FHA loan help in the form of the FHA 203(k) rehab loan. The FHA 203(k) is one of the most important types of help FHA/HUD offers to those in the disaster areas because it offers a long-term solution in addition to assistance with short-term issues. Storm victims need temporary shelter, food, clothing | more...

August 29, 2011

FHA Loan Resources For Those Affected By Recent Hurricanes and Other Natural Disasters

By Joe Wallace

2011 has brought one of the worst summers on record for homeowners–hurricanes, floods, and other disasters have given FHA borrowers plenty to worry about when it comes to their property. The FHA has a lot of resources that can help. Borrowers who need assistance in the wake of disasters can find a wealth of information, application forms and counseling online. In federally-declared disaster areas such as the 2011 sites in Kentucky, New Hampshire, Wyoming and many others, the FHA has issued foreclosure moratoriums and other actions designed to help borrowers in need of mortgage relief. Call 1-888-297-8685 to find out what options may be available to you in your location. The FHA offers rehab loans for those affected by disasters. The FHA 203(k) rehabilitation loan is available from FHA-approved lenders | more...

August 17, 2011

FHA 203(k) Loan Questions and Answers

By Joe Wallace

The FHA 203(k) Rehabilitation loan is defined by the FHA as a way to put the purchase and rehab costs of a property into a single loan. “Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. The FHA 203(k) is often used to rehab properties, but it can also be used to help families affected by natural disasters in federally-declared disaster areas. The 203(k) comes in both new purchase and streamline refinance versions, and there are rules concerning borrower eligibility and acceptable property types. For example, the FHA requires rehab construction to comply with HUD minimum property standards plus all local codes. The | more...

August 17, 2011

HUD Offers New Help For Storm Victims in Alabama and Missouri

By Joe Wallace

2011 has proven to be a stormy year for people all across America. It seems that every month, FHA and HUD press releases announce a new set of states receiving FHA/HUD assistance in the wake of storms, floods, and other natural disasters. Such assistance usually includes forbearance on FHA loans, a moratorium on foreclosures, and FHA loan assistance for repairing or rebuilding houses affected in federally declared disaster areas. But now there’s a new type of help–something the Department of Housing and Urban Development describes as “unprecedented” in a recent press release. HUD now offers “assistance to families affected by this spring

August 4, 2011

FHA Loan Options for HUD Homes

By Joe Wallace

A HUD home is defined by the FHA as “a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage.” When a home owner with an FHA mortgage loses the property because of loan default and foreclosure proceedings, the Department of Housing and Urban Development takes ownership and puts the house back on the market. According to the official site, HUD homes are sold as-is and have no warranty. There are two basic types of HUD homes available. One is considered “insurable” which means they meet the FHA’s minimum property requirements and would theoretically be eligible to be purchased with an FHA home loan. The other type is classified as “uninsurable” which means the property does not live up to FHA MPRs. | more...