Articles Tagged With: FHA Counseling

December 9, 2011

FHA Home Loan Resources By State

Did you know that the FHA and HUD offer by-state listings of FHA-related news, programs, home loan resources and other information? While FHA home loans are available nationwide, there are many state and local programs designed to help home owners, FHA borrowers, veterans and others affected by such programs. For example, on the Alabama page at http://portal.hud.gov/hudportal/HUD?src=/states/alabama there is a press release detailing a Department of Housing and Urban Development grant to the State of Alabama to the tune of $120 thousand to fight housing discrimination and uphold fair housing initiatives. On the North Dakota page there are stories of the latest initiatives on the state and local level to assist low-income families. These state page on the FHA official site also contain valuable links to information for foreclosure avoidance, | more...

December 8, 2011

FHA Loan Foreclosure Avoidance Options

By Joe Wallace

According to HUD.gov, there are a variety of options for borrowers to consider when trying to avoid FHA loan default or foreclosure. The options are not guaranteed for all borrowers–you may be required to qualify for each program depending on your circumstances, whether or not you are current on the FHA home loan and other factors. It’s very important to consider these options before you have missed any payments or are in ongoing financial trouble on the loan–doing so keeps you eligible for the most advantageous terms and options. FHA Borrowers who want to modify or refinance their loans for lower payments should consider one or more of the following options: Home Affordable Modification Program: This program, also known as HAMP, lowers the borrower’s monthly mortgage payment to 31 percent | more...

October 26, 2011

How Long Does It Take To Process an FHA Loan Application?

By Joe Wallace

A frequently asked question about FHA home loans concerns the length of time it takes to learn whether the loan application has been approved or not. This is a part of the FHA loan process that can be stressful for some borrowers, especially those who have never applied before and don’t know what to expect. The simple answer is that FHA requirements include a rule that the lender must take action on your application and let you know about that action no later than 30 days after the application has been completed and turned in. FHA rules emphasize the application must be complete for this rule to take effect. But what does that mean? Some borrowers mistakenly think submitting partial information on credit data, employment history or other information might | more...

September 26, 2011

How Can I Get a FHA Housing Counselor for an FHA Loan?

By Joe Wallace

Home buying can be an intimidating process, especially for first-time house hunters. That’s one reason why the FHA has a network of housing counselors and an assistance hotline available; if you’re looking for an FHA home loan and need help getting started, that assistance is definitely available. At the FHA official site, you’ll read the following; “Want advice on buying a home, renting, default, foreclosure avoidance, credit issues or reverse mortgages? HUD sponsors housing counseling agencies throughout the country to provide free or low cost advice.” When you call the FHA at (800) 569-4287, you’ll get access to a phone-based search system that can refer you to a housing counseling agency near you. You can also search for a housing counseling agency near you online at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm by using the | more...

September 5, 2011

HUD Announces $10 Million Dollar Initiative To Fight Mortgage Scams

By Joe Wallace

In recent months there have been many headlines about con artists targeting FHA and conventional borrowers in trouble on their home loans. A recent press release from the Department of Housing and Urban Development announced a new program to fight scammers. HUD has pledged more than $10 million in housing counseling grants for HUD-approved agencies. “The funding announced today is specifically earmarked to provide counseling assistance relating to mortgage modification, avoiding potential mortgage scams, and assisting victims of scams,” according to Department of Housing and Urban Development Secretary Shaun Donovan. “It is crucial that we support these agencies in helping struggling families do whatever is possible to avoid foreclosure without being victimized by so called mortgage ‘rescue’ companies.” The grand money will be awarded to 139 local housing counseling agencies | more...

August 11, 2011

FHA Housing Counseling

By Joe Wallace

It’s easy to get overwhelmed by the details, facts and figures connected to buying a new home. If you’re new to the FHA home loan application process, there are plenty of unique requirements for FHA home loans not found in conventional mortgages–the protections offered to the buyer and lender alike require some additional learning as you go through the process for the first time. That’s why the FHA offers help to mortgage loan applicants in the form of HUD-sponsored housing counseling. There are a variety of agencies across the U.S. offering HUD-sponsored counseling services on buying a new home, credit issues related to applying for an FHA mortgage, even foreclosure avoidance and FHA reverse mortgage loan information. Some housing counseling services are free, while others come as low-cost packages. FHA | more...

July 15, 2011

Verifiable Income Rules For FHA Borrowers Between Jobs

By Joe Wallace

FHA loan applications require the borrower to submit information on past and current employment including gross income, how long the job has lasted, and other details. This data is not accepted at face value by the lender; the FHA requires the loan officer to verify sources of income to make sure they are legitimate and acceptable.

July 11, 2011

More Information on the FHA Loss Mitigation Program for Unemployed Borrowers

By Joe Wallace

The FHA offers help for those in trouble on their FHA mortgages in the form of the Loss Mitigation Program. The FHA recently sent out additional guidance aimed to specifically help homeowners who struggle to pay on their FHA loans during period of unemployment. The FHA’s “Unemployment Special Forbearance” was temporarily amended and clarified to further help prevent unemployed homeowners from going into default and foreclosure. “In Mortgagee Letter 2000-05, FHA provided mortgagees with additional guidance concerning the Loss Mitigation Program that all mortgagees must follow, when applicable, to reduce FHA insurance losses in those circumstances, as determined by the mortgagee, where delinquent mortgagors might be able to find an alternative to foreclosure.” Previous changes to the program as described in past FHA Mortgagee Letters permitted FHA lenders to “offer | more...

May 16, 2011

FHA Loans: Can a Parent and Child Apply for an FHA Mortgage Together?

By Joe Wallace

There are many situations where a parent and child may wish to apply for an FHA insured home loan together. One of those is where a parent co-borrows on an FHA loan for the child in college, purchasing what some in the real estate industry call a “kiddie condo”. In such cases, the parent co-borrows on the loan but does not occupy the property. In most cases an FHA loan with a non-occupying co-borrower would be limited to 75% of the loan-to-value ratio, rather than the maximum loan amount. But FHA rules say when it comes to family members, the rules are different. A parent and child can take out an FHA home loan and get the maximum amount of FHA financing available (as long as the borrowers otherwise qualify). | more...

April 5, 2011

FHA Home Loan Flood Insurance Rules

By Joe Wallace

In March 2011, FHA rules changed for properties located in special flood zones or near coastal areas. In the past, the FHA had “strongly encouraged” mortgagees to get a flood zone determination independent of any appraisal; now FHA rules make flood zone determination a requirement for properties. FHA Mortgagee Letter 2010-43 says “FHA now requires that all Mortgagees obtain a flood zone determination on all properties instead of strongly encouraging such action.” FHA adds, “lenders are now “required to obtain life-of-loan a flood zone determination services, certification independent of any assessment made by the appraiser…” Flood zone determination can affect a property’s eligibility for an FHA loan, depending on the circumstances. For example, you may be able to apply for an FHA insured mortgage on a home in a special | more...