Articles Tagged With: FHA and HUD

July 29, 2020

HUD Announces Extended COVID-19 Guidelines For Self-Employment Income Approval

The FHA and HUD have announced an extension to some of its’s temporary coronavirus measures created to help participating lenders approve FHA home loans. This announcement was made in a group message containing other guidelines with changes via a “multisubject mortgagee letter” by HUD in the last week of July 2020. “COVID-19 Multisubject: Updated Temporary Guidance for Verification of Self-Employment; Rental Income; 203(k) Rehabilitation Escrow Account” is a HUD mortgagee letter with updates that affect FHA loan rules for applicants trying to qualify for an FHA mortgage with self-employment income. There are other updates for those who want to purchase a home using rental income to qualify–we’ll explore that information in a future blog post. The measures announced in the FHA mortgagee letter are not permanent; it’s part of a | more...

July 27, 2020

One Time Close Mortgage Loans: The Base Home Sales Price

By Bruce Reichstein

There are home loans for borrowers–even first-time home buyers–to allow the construction of a home from the ground up. They are called One-Time Close construction loans and are available from participating FHA, VA, and USDA lenders. One Time close loans, also known as single-close construction loans, feature one loan for both the construction of the home and the purchase of that home. When you apply for a construction loan, one area you’ll soon learn about is something called the base home sales price. This is essentially the base cost of the project using the contractor’s standard designs and features–you choose the design and features and those choices generate a base price. Choosing Features, Materials, Design How do these choices affect cost? Consider the design itself. What is the cost of | more...

July 21, 2020

HUD Announces Agreement In California Fair Housing Act Case

By Bruce Reichstein

The federal law known as the Fair Housing Act protects consumers at all levels of the housing process. Buyers, renters, house hunters, all are protected against illegal discrimination thanks to the provisions of the Fair Housing Act that require only financial qualifications to be used when approving housing, providing accessibility for disabled tenants, etc. But sometimes there are violations of these laws and when those violations are brought to the attention of the authorities, an investigation may lead to changes in the way housing issues are handled by a particular agency, landlord, etc. The latest of these actions includes a Department of Housing and Urban Development’s announcement of an agreement in a Fair Housing Act case in Sacramento, California. The Sacramento Housing And Redevelopment Agency (SHRA) was accused of Fair | more...

FHA One-Time Close Construction Mortgage Basics

July 19, 2020

FHA One-Time Close Construction Loan Rules

By Bruce Reichstein

What do borrowers need to know about FHA One-Time Close construction loans? There are two very important areas to keep in mind. One involves the lender’s specific requirements to qualify for this single-close construction loan, and the other involves FHA loan rules. The two are not always identical and this is something to be aware of when going into the loan application process. FHA One-Time Close mortgages are different than existing construction loans because the home must be designed, built, and paid for from the ground up and there are varying time frames under which this will be done. Purchasing an existing construction home means getting to move in much more quickly, but the trade-off is that you are purchasing someone else’s home rather than having one built especially for | more...

July 15, 2020

Common Questions About FHA Home Loan Interest Rates And More

By Joe Wallace

FHA home loan interest rates remain at historic lows in July 2020; FHA and other government-backed mortgages feature rates below the three percent range at press time. Some borrowers see all-time loan interest rate headlines and want to know how they can access such low rates. What do you need to know about home loan interest rates? To start, you should be aware that your credit scores play a part in determining the interest rate you may be offered by a participating FHA lender. How Important Is My Credit Score? For determining your mortgage loan interest rate? Very important. That’s one reason why there is so much advice on line about preparing your credit ahead of a mortgage loan application. Whether you want to buy, build, rehab, or refinance, start | more...

July 13, 2020

FHA and HUD Announce More Enhancements To COVID-19 Mortgage Relief

By Joe Wallace

The COVID-19 situation in America means dealing with an ever-changing environment created by coronavirus and its’ containment measures. Economic impact of the virus outbreak has forced millions of home owners to seek economic relief including mortgage loan forbearance. The First Round Of HUD Relief The FHA and HUD created an initial round of FHA mortgage loan forbearance for those experiencing a loss of income and/or having trouble making mortgage payments as a result of the pandemic. But the first announcement was followed by updates and refinements. And now there are further updates that can help borrowers keep their homes after an initial round of COVID-19 loan forbearance. FHA Mortgagee Letter 2020-22 announces improvements and the establishment of foreclosure avoidance possibilities the FHA is calling “Home Retention And Disposition options” including: | more...

July 7, 2020

How FHA Home Loan Limits Are Set

By Joe Wallace

How does your lender know how much home loan to approve you for when you want to buy a home? Part of that process is learning the official FHA home loan limit in the housing market where you want to buy or build your home. The Federal Housing Administration sets FHA loan limits each year. There is a maximum FHA loan amount that is established in accordance with the National Housing Act. Five Things You Need To Know About FHA Loan Limits Five things you’ll need to remember about FHA purchase loan limits for suburban homes, condo units, having a house built for you on your own lot, etc. are: FHA mortgage loan limits vary by county; Loan limits may be exceeded if you are applying for an FHA Jumbo | more...

July 2, 2020

HUD Announces Fair Housing Grant Awards

By Bruce Reichstein

A person or family looking for a home to buy with an FHA mortgage doesn’t go into the process expecting to be treated to a violation of federal law through discriminatory practices that violate the Fair Housing Act. But many people do encounter such discrimination; the official site of the National Low Income Housing Coalition notes that in 2017 alone 2,249 Fair Housing cases were settled, with more than 400 cases involving a guilty plea from the defendant. Fair Housing Act violations prevent those in need of housing from finding reasonable, affordable homes–discrimination in the housing process is a violation of federal law but unfortunately, there are many who still experience such discrimination whether as a future renter or homeowner. Did you know that Fair Housing laws protect you at | more...

June 29, 2020

HUD Brings Fair Housing Act Charges Against Atlanta Landlords

By Joe Wallace

Have you experienced housing discrimination at any stage in the housing process? Violations of the Fair Housing Act can occur at any stage of your journey to find a new rental home or purchase including home loans, refinance loans, home buying, etc. If you have experienced ANY kind of discrimination while looking for a house or apartment, file a complaint of discrimination with the HUD Office of Fair Housing and Equal Opportunity at (800) 669-9777. You can also file a Fair Housing Act complaint online by visiting How to File a Complaint at the HUD official site. Why? Because Fair Housing violations continue to be an issue in the United States of America, and often the only thing that prevents those who discriminated against YOU to keep violating the law | more...

June 19, 2020

FHA And HUD Announce Extended Foreclosure Relief

By Joe Wallace

Are you a homeowner with an FHA loan worried about your mortgage during the coronavirus pandemic? If so, you aren’t alone. Coronavirus outbreak containment policies–lockdowns, quarantines, and other necessary measures, have brought with them economic hardship from many Americans; loss of income creates and questions about future earnings can result in late and missed mortgage payments, increasing the risk of foreclosure. But during the pandemic, federal relief measures were drafted to help–and the FHA/HUD is no exception, requiring participating lenders to delay initiating or continuing foreclosures during the crisis. Now, the Department of Housing and Urban Development and the Federal Housing Administration have issued an extension (actually the second extension since the crisis began) of the foreclosure moratorium announced in March. The Old Deadline Wasn’t Sufficient The HUD official site | more...