Articles Tagged With: FHA Appraisals

December 7, 2011

What is an FHA 203(n) Mortgage Loan?

As we’ve written in other blog posts, the most well-known FHA home loan is called the FHA 203(b). This is the mortgage loan product most FHA borrowers who are first time house hunters will apply for to purchase a home. But there are many other types of FHA home loans, including something known as the FHA 203(n). This is also known as a Single Family Cooperative Mortgage and according to the FHA, is designed to insure loans “for persons buying a unit in a cooperative housing project. The loan is made by a lending institution, such as a mortgage company, bank, or savings and loan association, and is insured by HUD’s Federal Housing Administration (FHA).” As with other FHA loans, the purpose of the FHA 203(n) Single Family Cooperative Mortgage | more...

December 7, 2011

Can an Energy Efficient Mortgage Loan Be Used With an FHA 203(k) Loan?

By Joe Wallace

The most common FHA insured home loan is called the FHA 203(b). This is the loan most people considering a first time home purchase will apply for when they look into the FHA loan program. Another type of FHA loan is the 203(k), which according to the FHA official site, “enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage

November 30, 2011

FHA Loan Loan Limits and Non-Occupying Co-Borrowers

By Joe Wallace

If you’re buying a single-family home with an FHA insured mortgage, FHA loan rules require you to certify the property will be your primary residence. But FHA loans do permit a loan with co-borrowers who do not plan to occupy the property. Chapter Three of FHA Handbook 4155.1 states, “A non-occupying borrower transaction involves two or more borrowers where one or more of the borrower(s) will not occupy the property as his/her primary residence.” This in mind, borrowers should know that there is a different FHA maximum mortgage permitted for a non-occupying borrower transaction in many circumstances. “When there are two or more borrowers, but one or more will not occupy the property as his/her principal residence, the maximum mortgage is limited to 75% loan-to-value (LTV).” However, the rules do | more...

November 29, 2011

FHA Help Available For Those At Risk of Foreclosure

By Joe Wallace

The FHA encourages borrowers worried about going into default or foreclosure on their FHA mortgages to seek help as soon as possible. The earlier a borrower acts, the better chance he or she has of saving the home and preventing damage to credit and other issues. One of the most important thing a borrower can do is to get Foreclosure Avoidance Counseling as early as possible The FHA and the Department of Housing and Urban Development offer help in this area; the FHA official site says, “HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or | more...

November 29, 2011

FHA/HUD Disaster Relief for New Mexico Storm Victims

By Joe Wallace

Believe it or not, 2011 storm relief is still needed this late in the year–though the relief announced by the Department of Housing and Urban Development is for weather-related problems in New Mexico that happened during the month of August, not for natural disaster issues in the current month. According to the press release HUD No. 11-276, “U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to the State of New Mexico and provide support to homeowners and low-income renters forced from their homes following flooding in August.” Some readers will likely wonder why the assistance is only now being announced. According the press release, areas of New Mexico have recently been named as Federal Disaster Areas, allowing the FHA and HUD to | more...

November 18, 2011

FHA Home Loans: Is There a Minimum Square Footage Requirement?

By Joe Wallace

Some of the most frequently asked questions about FHA home loans involve the FHA’s minimum property requirements–the standards homes must be built or modified to in order to meet FHA approval. FHA minimum property requirements address basic issues such as safety–the property can’t be located near a high voltage easement, for example. But FHA minimum property requirements also address habitability concerns. All mechanical systems on the property must be in working order and be at the proper capacity to serve the home they are installed in. The FHA rules do not permit heating or central air conditioning systems that are too small to properly heat or cool the home, and electrical systems must be powerful enough to serve the entire building adequately. Areas of standing water in the basement are | more...

November 16, 2011

FHA Financial Report: 440,000 Families Helped Through FHA Refinancing Loans

By Joe Wallace

In a troubled economy, it’s easy to see why an FHA refinancing loan would be widely used–who doesn’t want to lower their monthly mortgage payments? Even in the best of times, a lower monthly commitment is attractive; when money is tight refinancing is on the minds of homeowners across the U.S. On Tuesday, November 15, 2011, the FHA and HUD released a financial report to Congress which included some figures that might surprise you. In 2011, the FHA “Served more than 1.2 million households and insured $218 billion in single-family mortgages, bringing the active single family portfolio to more than $1 trillion” according to an FHA press release. The press release, HUD No. 11-270, also noted that the FHA “…enabled more than 585,000 families to become homeowners for the first | more...

November 14, 2011

FHA Streamline Refinancing Loans and Credit Qualifying Requirements

By Joe Wallace

Home loan refinancing is among of the most popular types of loans in a troubled economy. When the six o’clock news has regular gloomy updates, it’s not surprising that people turn to refinancing loans to lower their payments and improve the bottom line. FHA Streamline Refinancing Loans can help do just that–this type of refinancing is appealing because in many cases no additional credit check is required by the FHA (though the lender may require one anyway). In some cases, the lender does not have the option to process the FHA refinancing loan with no credit check–certain situations can “trigger” the credit check requirement. Those include any change in the mortgage term that results “in an increase in the mortgage payment of more than 20%” according to the FHA rules, | more...

November 11, 2011

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

By Joe Wallace

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...

November 3, 2011

FHA Loans and the Foreclosure Process

By Joe Wallace

Foreclosure is the worst-case scenario for home owners, but many don’t understand how the process works or at what point the FHA borrower may be in danger of losing his or her home. If you don’t understand how the foreclosure process works, but fear you may be nearing default or worse on your FHA mortgage, it’s definitely time to get educated about foreclosure and get in touch with your lender. FHA guidelines encourage borrowers to work closely with both the lender and the FHA to avoid loan default. What is the FHA timeline when it comes to missed payments and foreclosure proceedings? Many don’t understand how this works. Borrowers who miss a single payment face a serious issue, but there is still time to work out the problem and avoid | more...