Articles Tagged With: FHA Appraisals

April 25, 2012

FHA Loans: Shopping For Your Home

The FHA and Department of Housing and Urban Development offer plenty of programs to help potential FHA borrowers learn about the process of finding a suitable property, understand the FHA loan application process, and much more. The FHA offers housing counseling referrals, links to FHA loan calculators, and provides a list of home buying programs offered in each state. But what about resources for those who haven’t gotten to the planning stages for an actual FHA home loan? What does the FHA offer to people who simply want to do research about FHA mortgage loans, buying a home, and becoming a home owner? There are a wide variety of resources available, but the FHA and HUD have offered some newer ones designed for people on the go, who want to | more...

April 24, 2012

FHA Loan Reader Questions: Appraisal Requirements For Peeling Paint

By Joe Wallace

A reader asks, “If the buyer of a home built before 1978 is using an FHA mortgage to purchase, can I assume the appraisal is required to include a note if any chipping or peeling paint was observed both inside and outside of the home? Is there any written verbiage that states what the Appraisal shall include as required by Federal/HUD rules?” FHA loan rules governing appraisals do include rules governing chipping and peeling paint on properties built prior to 1978. According to FHA loan rules found on the FHA official site,

April 23, 2012

FHA Loan Rules Vs. Lender Rules

By Joe Wallace

There’s a common theme among many of our most frequently asked questions about FHA guaranteed home loans; “Why do the FHA rules say one thing, while my lender says another?” In many cases this question has to do with FHA rules covering appraisals, minimum property requirements, or even the minimum waiting period required after foreclosure before the borrower can try applying for a new FHA home loan. For example, the FHA loan rules about streamline refinancing loans state that an appraisal may not be required under the right circumstances. From the FHA official site: ” Streamline refinances can be insured with or without an appraisal. When an appraisal is completed FHA does not require the repairs (except for lead based paint repairs) to be completed, however the lender may require | more...

April 20, 2012

FHA/HUD Assistance For Hawaii Storm Victims

By Joe Wallace

The FHA and HUD have announced disaster assistance for victims of recent storms in Hawaii. According to a press release issued by the Department of Housing and Urban Development, the department will “speed federal disaster assistance to the State of Hawaii and provide support to homeowners and low-income renters forced from their homes following severe storms, flooding and landslides” during the month of March. The announcement comes after a presidential disaster declaration for Hawaii’s Kauai County. According to the press release, “The President

April 19, 2012

FHA Energy Efficient Home Loans

By Joe Wallace

The official FHA/HUD blog, The HUDdle, published a recent collection of links to housing news that included a radio report from the Boise, Idaho Public Radio station KBSX about a scientific study on the advantages of adding energy efficient improvements to buildings. The study, conducted by

April 12, 2012

FHA Loan Credit Score Requirements

By Joe Wallace

The FHA recently published “The Facts on FHA” on the official blog of the Department of Housing and Urban Development. One of the highlights of that post included a list of actions FHA and HUD have taken since 2009–more steps “to eliminate unnecessary credit risk and assure strong premium revenue flows than any Administration in FHA history” according to acting Federal Housing Administration Commissioner and Assistant Secretary for Housing, Carol Galante. One of the changes made by the FHA in recent times is an update to the required combination of FICO score requirements and down payments. According to Galante, “New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score | more...

April 11, 2012

FHA Loan Questions: Mortgage Insurance Payments

By Joe Wallace

A reader asks, “I am refinancing my home with FHA. I am financing $54,540.00 and the appraisal (by FHA) is $180,000.00. Since I have almost $125,000.00 in equity why are they making me purchase FHA mortgage insurance at $50.00 a month? How long will I have to pay this on a 30 year loan at 4.25%?” Mortgage insurance, also known as MIP, is required by the FHA because it protects the government and the lender against a loss should the borrower default on his or her FHA loan. FHA requirements include mortgage insurance for borrowers making a down payment of less than 20 percent. Mortgage insurance is also required on refinance loans and is included in various rules governing FHA refinancing loans such as the following: “The lender must determine | more...

April 11, 2012

FHA Loan Reader Question: Septic Systems

By Joe Wallace

A reader asks, “I am looking to buy a home in the middle of a suburban neighborhood that is the only house in the area (that we know of) that is on septic. Everyone else is on city sewer.” “Now if the FHA comes out with an appraiser to inspect the home/property, will they require that the home be hooked up to city? Or will they inspect the septic systems to make sure it’s in proper working condition? And will it pass if it is? And will they allow it to stay on septic?” Questions like this have a two-part answer. Part one is that local building codes and ordinances have much to do with the FHA appraiser’s decision. The home must live up to local code in order to | more...

April 10, 2012

FHA Loan Reader Question: Seller Contributions

By Joe Wallace

A reader asks, “My question: if the purchase price of a home I want to buy is 290,000 the maximum sellers concession can only be a maximum of 6% of the agreed price? Can it be more than 6% if the home values at a greater than 290k ?”

April 4, 2012

The State of The FHA Loan Program

By Joe Wallace

Carol Galante is Acting Federal Housing Administration (FHA) Commissioner and Assistant Secretary for Housing. In that capacity she recently wrote a blog post on the official FHA/HUD blog titled, “The Facts On FHA” which included her take on several myths currently in circulation about FHA loans, the health of the FHA program and other topics. Galante writes, “The health of the FHA and management of its business have been frequent topics of discussion in the media and among our stakeholders in recent months.