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Articles Tagged With: FHA Appraisals

October 5, 2012

FHA Loan Reader Questions: Modular Homes

By Joe Wallace

Paragraph A reader asks, “Can a modular home on a full foundation be considered for an FHA loan?” A reader asks, “Can a modular home on a full foundation be considered for an FHA loan?” In general the FHA offers two types of home loans for manufactured housing. Here’s a quote from a frequently asked questions list on the FHA official site at FHA.gov: “How about manufactured housing and mobile homes? Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.” FHA loan rules do have provisions for modular homes (which are also considered factory-built houses); | more...

 

October 2, 2012

FHA Loans: Credit References

By Joe Wallace

It would be easy to assume that a borrower with little credit history, or non-traditional credit history, is not eligible for an FHA guaranteed mortgage. But this isn’t necessarily true–the FHA has a set of requirements for those with little credit history or non-traditional credit. In typical FHA loan cases, the borrower would submit credit card information, plus details on any student loans, car payments, rent, or other financial obligations. Borrowers who have alternative credit references can still apply and be considered for an FHA mortgage, thanks to a set of requirements for credit references that might be considered non-traditional. Borrowers should not give up on pursuing an FHA home loan just because they don’t have typical credit–as you’ll read below, there is much more that can be used on | more...

 

September 27, 2012

FHA Issues Guidance To Lenders On Hazard Insurance Payments Following Hurricane Isaac

By Joe Wallace

The FHA has issued a reminder to lenders to “quickly release hazard insurance payments” to affected borrowers trying to recover from Hurricane Isaac. According to an FHA press release, HUDNo.12-156, the FHA wants to “reinforce its existing policy requiring lenders to release insurance payouts to homeowners eager to rebuild their damaged homes following disaster.” The release states, “In the past, the U.S. Department of Housing and Urban Development (HUD) noticed some lenders would instead use these insurance funds to pay off the outstanding mortgage balance, leaving many homeowners without the resources they need to rebuild their homes.” Carol Galante, FHA

 

September 26, 2012

FHA Loan Rules: Occupancy Requirements

By Joe Wallace

A reader asks, “I purchased a home in 2006 with an FHA loan. At the time, I remember a stipulation that I was required to reside in the house, for three years (I believe), which I did.” “I have since moved and rented out the property, and just received a letter from my mortgage company that they had received word that my mailing address had changed, and that per the terms of my FHA loan, I was required to occupy the house until the mortgage was paid off, and that I may be facing tax penalties.” “They have asked me to sign a form verifying that I still occupy the house and will do so until the mortgage is paid in full. Are there any types of first time homeowners | more...

 

September 24, 2012

FHA Condo Project Approval Guidelines Change: Homeowners Association Rules

By Joe Wallace

We’ve reported many new changes to the FHA condo approval process that allows a condominium project to be considered for an FHA loan for individual units. Condo projects must be FHA approved before a borrower can apply for an FHA guaranteed mortgage on a unit in that condo project; that means a project’s compliance with FHA loan rules is very important. For example, a condo project may not be approved for an FHA mortgage loan if there are restrictions on the borrower’s ability to freely sell the property. The FHA has gone back and forth on an issue related to “the right of first refusal” which limits a borrower’s ability to sell. Condo loan applicants have reported problems with the right of first refusal clause, getting turned down for FHA | more...

 

September 20, 2012

FHA Loans After Foreclosure: A Reader Question

By Joe Wallace

A reader asks, “I filed for bankruptcy over 3 years ago. My home was included because I did not sign a reaffirmation agreement. However the bank did not require me to move out because I was not in arrears with the mortgage and never missed a payment.” “About 18 months ago I was forced to move to be closer to my job due to vision problems. My doctor told me to not drive. I had to move out of the blue and the bank foreclosed a year ago. I was told that foreclosures was necessary to get my name off property but I was not legally responsible for the debt due to bankruptcy. Will the foreclosures prevent me from qualifying for an FHA home loan?” This is a complex situation | more...

 

September 19, 2012

FHA Condo Loan Rules: Pre-Sale Requirements

By Joe Wallace

The FHA recently updated its condo project approval rules to include changes in pre-sale requirements. FHA loan rules permit loans on condo units as long as the condo project is FHA approved. Part of the process of getting condo approval includes meeting FHA guidelines on critical areas such as pre-sale requirements. The new FHA loan rules for pre-sales are now updated. According to FHA Mortgagee Letter 2012-18, “The requirements of Section 3.4 of the Guide are replaced by the following updated policy guidance.” That guidance includes: “At least 30 percent of the total units must be sold prior to endorsement of a mortgage on any unit.

 

September 19, 2012

FHA Loan Rule Changes For Condominium Project Approval: Investor Ownership Guidelines

By Joe Wallace

The FHA and HUD recently updated condo project approval guidelines in the Mortgagee Letter 2012-18. The mortgagee letter states, “It was determined that certain policy adjustments were needed to address current housing market conditions”. The letter adds, “This ML is effective for all condominium project approvals,recertifications, annexations or reconsiderations submitted for review as of the date of this directive unless otherwise specified in a particular information block. This approval process will apply until August 31, 2014, unless further extended by FHA.” Part of the revised guidelines for condo project approval? Investor ownership rules. Under the section title, “Investor Ownership Section 2.1.4” you’ll find the following: “The requirements of Section 2.1.4, Investor Ownership are replaced by the following updated policy guidance. A unit that is occupied as a principal residence is | more...

 

September 13, 2012

FHA Loan Reader Questions: Credit Scores

By Joe Wallace

A reader asks, “I don’t have an FHA loan and can’t get a loan. I’m on a fixed income and need HUD assistance due to hurricane Issac damage. Who can I get assistance from? My credit is poor but I can pay mortgage. I am a single parent and don’t know where to turn. We need a home desperately! The one we are in now is not healthy and