October 14, 2019
Today we pause from our posts about FHA home loans, FHA refinance loans, and related topics, to enjoy the three day weekend some observe as Indigenous Peoples’ Day, traditionally observed in the United States as Columbus Day. We’ll return to our usual posting schedule tomorrow (Tuesday October 14, 2019) but in the meantime, if you too are celebrating a three-day weekend, have a safe and pleasant one and thank you for reading!
October 1, 2019
The U.S. Department of Housing and Urban Development has announced charges of violation of the Fair Housing Act against a landlord in Hamburg, New York. The landlord, named in the HUD complaint as Thomas Frawley, is charged with “refusing to rent to and making discriminatory statements about families with children” according to a press release at the FHA/HUD official site. Fair Housing Act laws make it illegal to discriminate against those seeking housing (rental or purchase) because of family status including having children below the age of 18 years old. There are certain exceptions for age-restricted housing; the HUD official site reminds, “Housing may exclude children only if it meets the Fair Housing Act’s exemption” for certain types of housing meant only for older tenants. The charges in this case | more...
September 17, 2019
The Department of Housing and Urban Development has announced charges against companies in New York, Pennsylvania and Georgia for alleged violations of the Fair Housing Act. We report about Fair Housing cases in this space to remind house hunters of their Fair Housing Act rights, but it’s not as common to report on a case that spans multiple companies and states the way this case does. HUD’s charge involves accusations of housing discrimination associated with the design and construction “of a 40-unit North 8 Condominium development in Brooklyn, New York, in accordance with the accessibility requirements of the Fair Housing Act”. Those named in the HUD Fair Housing Act charges include Toll Brothers, Inc.; Toll Land XIII Limited Partner; Lendlease (US) Construction LMB, Inc; Greenberg Farrow Architecture, Inc.; and 51 | more...
September 6, 2019
The Department of Housing and Urban Development has issued recommendations to the President for housing reform, including attention on down payment assistance programs and cash-out refinancing. According to a press release issued on the HUD official site, this is NOT the same housing finance reform plan, which was developed by the U.S. Treasury Department. There are major differences between the two in some respects including the HUD language discussing the need to focus on “the core mission” of the FHA where home loans are concerned. It’s the view of the Treasury Department (as stated in the plan) that any changes to the core of what has traditionally been considered an FHA loan program could be detrimental. The Treasury Department plan states, “…any proposal to fundamentally change the housing finance system | more...
August 30, 2019
The FHA and HUD have announced expanded disaster relief measures for those in federally declared major disaster areas. The changes (see below) must be implemented no later than November 30, 2019 but may be used by lenders right away. The FHA and HUD advise these changes will be reflected in a pending update of the FHA Single-Family Loan Handbook, HUD 4000.1. On Thursday, August 29, 2019, the Federal Housing Administration announced in a press release that the agency is, “expanding its foreclosure prevention options to allow borrowers in Presidentially Declared Major Disaster Areas (PDMDAs) with delinquent FHA-insured mortgages to bring their mortgages current without increasing their interest rates or principal and interest payments.” This is an expansion/enhancement of a temporary measure announced in 2018; Mortgagee Letter 2018-01 “temporarily amended” FHA/HUD | more...
August 27, 2019
There are some issues that can affect FHA home loan approval but don’t automatically mean the loan will be denied. Borrowers should be aware of the rules in the FHA single-family home loan handbook, HUD 4000.1 that tell a lender when more attention is needed for a specific loan application. For example, did you know there are two basic types of home loan approval processes? One is a more automated process that happens when the lender uses the Automated Underwriting System (AUS) to review the loan. AUS can be used for borrowers that don’t have certain complications with the loan; borrowers that do have certain issues with their application may find the lender is required to “downgrade” to a “manual” underwriting process that requires more scrutiny on the borrower’s financial | more...
August 15, 2019
The Federal Housing Administration has announced changes to its’ condo approval policies that could make it easier for house hunters to find and purchase condo units with an FHA mortgage. The changes are intended to increase lender flexibility and to adapt to changing conditions in the housing market. The FHA and HUD issued a press release on the new rules which states that the new rules …“will allow certain individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved.” Under the old rules, a condo project had to be on the FHA approved list or added to it. As of October 15, 2019, the new FHA policies will, according to the FHA official site, include the following changes to FHA condo | more...
August 14, 2019
Q: What Kind Of Home Can I Buy With An FHA Mortgage? A: You can purchase a single-family home with as many as four living units. FHA home loans can be used to buy condos, mobile homes, town houses, mixed-use properties that are primarily residential (the borrower must live in the property), and manufactured homes. Q: Is Private Mortgage Insurance Required For FHA Mortgages? A: Private mortgage insurance is not required, but FHA borrowers will be required to pay a Mortgage Insurance Premium and an Up-Front Mortgage Insurance Premium (UFMIP) as a part of the mortgage. The UFMIP is paid up front or financed in its’ entirety into the loan amount. The mortgage insurance premium each month is part of the borrower’s monthly payment. Q: Can I Buy A Home | more...
August 6, 2019
The Department of Housing and Urban Development has issued a mortgagee letter announcing a major change to the FHA Cash-Out Refinance Loan program. Effective September 1, 2019, the loan-to-value ratio for FHA cash-out loans is reduced from 85% to 80%. All FHA cash-out refi loans with FHA case numbers issued on or after 1 September 2019 will have the lower LTV. This has the effect of reducing the amount of cash back to the borrower on the transaction. The HUD press release states that the reduction is intended to protect against weaknesses in the housing market, and cash-out refinance loan defaults. The FHA has experienced an overall increase in cash-out loans as high as 250 percent according to HUD. In light of that statistic and other data, the FHA concluded | more...
August 2, 2019
There are five good uses for an FHA home loan you should know about, especially if you are a first-time home buyer with no experience in applying for mortgage loans. The right kind of loan awaits you, but first it’s important to determine what the right loan for you might be based on your financial needs and goals. 5. Buy An Existing Home With An FHA Mortgage You can use an FHA mortgage to buy existing construction houses as long as they meet FHA minimum standards and local building code, are primarily residential in nature, and you plan to occupy the property as your home. These homes can be condo units, mobile homes, town homes, multi-unit properties (as many as four living units), or manufactured homes. 4. Buy A Fixer-Upper | more...