Articles Tagged With: FHA Energy Efficient Mortgage

April 16, 2013

Coldwell Banker Settles In HUD Housing Discrimination Claim

A press release on the FHA/HUD official site announced the recent settlement of a housing discrimination claim involving Coldwell Banker. According to HUDNo.13-051B, ” The U.S. Department of Housing and Urban Development (HUD) announced today a $90,000 Conciliation Agreement with Coldwell Banker Residential Brokerage and the seller of a home in Worcester, Massachusetts, settling allegations they violated the Fair Housing Act by preventing the sale of a house to be used as a group home for persons with disabilities.” Fair Housing Act laws forbid discrimination in both rental procedures and property sales–including discriminatory standards or requirements based on disability. In this particular case, the requirements included a housing covenant that prevented the property from being used as a group home for disabled persons. “HUD is committed to promoting housing opportunities | more...

April 4, 2013

FHA Loan Refinance Credit Rules: A Reader Question

By Joe Wallace

A reader asks, “I am trying to refinance my FHA loan with my current lender. I was refused they said, because my credit score is too low. I thought this did not matter? I thought the FHA STREAMLINE was intended for situations like ours.” “I have never been late or missed a payment in 4.5 years. My husband is doing well now and we are trying to get back to normal. Does the credit score count against you or not on the FHA streamline? And do the banks have a right to refuse the streamline if you are eligible?” There are several factors that must be considered when looking at a question like this. It’s true that FHA Streamline loans have no FHA requirement for credit underwriting which would include | more...

March 29, 2013

Can I Apply For An FHA Loan On Good Friday?

By Joe Wallace

Good Friday is a common day off for many people. The Friday before the Easter weekend has many vendors, businesses and even the stock market takes a day off on this day. But if you’re looking for an FHA mortgage, you might be surprised to learn that you can talk to a lender, get prequalified and fill out FHA loan paperwork depending on the company–Good Friday is NOT a federal holiday so many financial institutions are open today. Because the markets which affect FHA loan mortgage rates are closed on Good Friday, the rates published on Thursday are likely the ones you will have access to today unless the lender reprices or issues a revised rate sheet on Friday. Of course, for those who wish to prequalify online, there’s no | more...

March 20, 2013

FHA Loan Questions: Building Codes and Minimum Property Standards

By Joe Wallace

A reader asks, “My mom is trying to sell her house and when it was built it was on septic. When my parents bought the house in 1988, the neighborhood had been subsidized and city sewer was installed but not to their house that was already there prior to subsidizing.” “Now to get it on city sewer is gonna cost 13,000 dollars that she doesn’t have. A potential buyer has put a bid on the house and is applying for an FHA insured loan and they are saying it HAS to be hooked to city sewer. Is this correct or does her existing system which is up to codes and works appropriately acceptable?” The answer to this question may well depend on state or local building codes. In these cases | more...

March 6, 2013

FHA HECM Deadline Approaching

By Joe Wallace

Earlier this year, the FHA and HUD issued new guidelines regarding the FHA Home Equity Conversion Mortgage Loan program also known as HECM. Important changes are coming to this home loan program which is designed for those age 62 or older. According to FHA Mortgagee Letter 2013-01, the changes are effective for all HECM fixed-rate case numbers assigned on or after April 1, 2013. What are these changes and why are they occurring? According to the mortgagee letter, “To help sustain the HECM program as a viable financial resource for aging homeowners and to strengthen the Mutual Mortgage Insurance Fund, the HECM Saver will be the only initial MIP option available to mortgagors who seek the predictability of a fixed interest rate mortgage and lower upfront closing costs”. This means | more...

March 1, 2013

Sound Advice From the FHA on Buying A Home With an FHA Mortgage

By Joe Wallace

If you’re thinking about buying a home with an FHA guaranteed mortgage, now is a very good time to explore your options. Mortgage loan rates may have risen slightly from their “all-time lows” of the past 12 months, rates are still very good, and the housing market recovery makes purchasing a home more attractive than ever. What kind of advice does the FHA official site offer to house hunters thinking about that first FHA home loan application? There first thing to ask is whether you are ready to commit to buying a home now, or if you need to take some additional preparation time. How do you know if you’re ready to commit? According to the FHA, “You can find out by asking yourself some questions: – Do I have | more...

February 18, 2013

FHA Loan Questions: When Do The New FHA Mortgage Insurance Premiums Take Effect?

By Joe Wallace

A recent FHA press release announced changes to the FHA mortgage insurance policy, including higher MIP and other changes. According to the FHA official site. “FHA will increase its annual mortgage insurance premium (MIP) for most new mortgages by 10 basis points or by 0.10 percent. FHA will increase premiums on jumbo mortgages ($625,500 or larger) by 5 basis points or 0.05 percent, to the maximum authorized annual mortgage insurance premium. These premium increases exclude certain streamline refinance transactions. FHA will also require most FHA borrowers to continue paying annual premiums for the life of their mortgage loan.” Those are significant changes to the FHA loan program, but who is affected by these changes and when do they take effect? Some borrowers who already have FHA home loans are concerned | more...

February 14, 2013

FHA Proposes Down Payment Changes For Larger FHA Loans

By Joe Wallace

The FHA is considering changes to the maximum LTV and down payment rules for certain FHA mortgages (described by the FHA as those “in excess of $625,500”) according to the FHA official site. According to HUDNo.13-010, “FHA will announce a proposed increased down payment requirement for mortgages with original principal balances above $625,500. The minimum down payment for these mortgages will increase from 3.5 to 5 percent.” “This change, coupled with the statutory maximum premiums charged for these loans, will help protect FHA and further facilitate its efforts to encourage higher levels of private market participation in the housing finance market.” In a statement published in the Federal Register Volume 78, Number 25, you’ll find some supplemental information including the following: “…the maximum LTV will be limited to 95 percent | more...

February 7, 2013

FHA Loan Reader Questions: FHA Loans After a Foreclosure

By Joe Wallace

A reader asks, “I had a bankruptcy discharged in 2009. My mortgage was part of this bankruptcy however the bank did not foreclose until 2012. I am employed and have an average credit score of 678. Would I qualify for a FHA loan on a new property?” This is a tricky question because it includes both a bankruptcy AND a foreclosure. In such cases it’s best to contact the FHA directly for advice. Does the borrower’s two situations–bankruptcy and foreclosure–have any special consideration? There are different possibilities depending on the type of bankruptcy (not mentioned in the reader question), but let’s examine the FHA rules for the borrower’s more recent foreclosure issue. Can a borrower apply for an FHA mortgage in 2013 if there was a foreclosure action in 2012? | more...

February 6, 2013

FHA Loans After Foreclosure

By Joe Wallace

We get many reader questions in the comments section asking about how long a borrower must wait in order to be eligible for a new FHA home loan following foreclosure. We’ve answered this question many times quoting the rules and regulations found in the FHA loan rulebook, HUD 4155.1. Now the Federal Housing Commissioner, Carol Galante, has issued some guidance on the subject. While her words are directed toward “stakeholders” and not necessarily consumers in particular, she has an important message that borrowers need to be aware of when considering applying for an FHA loan in the wake of foreclosure proceedings. Galante says, “Recently, we have seen a proliferation of web-based and print advertising regarding the sup- posed ease of obtaining an FHA-insured loan following a foreclosure. Often, this advertising | more...