Articles Tagged With: FHA Home Loan

October 21, 2015

FHA Loans, HUD 4000.1, and HUD/FHA Mortgagee Letters

We’ve written a great deal lately about the new FHA Single Family Home Loan policy handbook, HUD 4000.1. Since this was launched, it became the comprehensive reference for FHA loan policy for single family mortgages, refinances, etc. The old FHA loan rulebooks including HUD 4155.1 and HUD 4155.2 are still discoverable on the Internet and on the FHA/HUD official site, but they are included there for reference only and should not be taken as current FHA single family loan policy. But even with that in mind, one FHA/HUD practice that was active under the era of the previous policies and handbooks still remains–the FHA and HUD are still updating single family home loan policy (and others as appropriate) with FHA Mortgagee Letters (ML). While the FHA/HUD did publish a list | more...

Can I buy a manufactured home with an FHA loan?

October 19, 2015

Fair Housing Laws: Support Animals And Discrimination

By Joe Wallace

On the FHA/HUD official site this week there was a press release announcing HUD charges against New York City landlords for alleged discriminatory housing practices involving tenants with support animals. According to the press release HUDNo. 15-129, “The U.S. Department of Housing and Urban Development (HUD) announced today that it is charging the owners and landlords of a high-rise complex in New York City with violating the Fair Housing Act by refusing to allow a resident with disabilities to have an emotional support animal. HUDs charge alleges that Friedman Residence, LLC (formerly called the Aurora), Common Ground Management Corporation, and The Actors Fund of America refused to accept that the resident required a dog to cope with the symptoms of his disability.” The HUD press release adds that Fair Housing | more...

October 7, 2015

Mortgage Rate Trends: Higher Since Friday

By Joe Wallace

Monday saw mortgage loan rates moving higher, wiping out some of the gains seen on Friday. Tuesday rates were unchanged to slightly higher, depending on the lender. 30-year fixed rate conventional loans are, at the time of this writing on Wednesday morning, in a best-execution range between 3.75% and 3.875%. Higher closing costs are where some borrowers may notice the biggest difference in rates between Friday and today. FHA mortgage rates are still being reported, best execution, at 3.5%, though if the upward trend continues it’s unclear how long until FHA mortgage rates break out of that single number and into a range of rates with 3.5% at the low end. Remember, “best execution” refers to an ideal situation. The rates listed here are offered to potential borrowers with outstanding | more...

October 1, 2015

HUD 4000.1 Appraisal Requirements: Safety Hazards

By Joe Wallace

With the publication of HUD 4000.1, the new FHA Single Family Home Loan policy handbook, we’ve been addressing certain rules and regulations found in the new rules to help borrowers and lenders alike understand official policy, updates, changes, and restatements of previous regulations as published by the FHA/HUD. FHA appraisals are also affected by the new handbook. One area that contains crucial information about the appraisal process is the section of FHA appraisal rules that govern safety/environmental hazards as might be found during the appraiser’s review of a property to be purchased with an FHA mortgage. In some cases, you may notice some additional features to this section, and revised language that gives more clarity or guidance for appraisers and lenders. From HUD 4000.1 Section II Part B: “The Appraiser | more...

September 24, 2015

FHA Refinance Loan Rules: HUD 4000.1

By Joe Wallace

The FHA Single Family Home Loan policy handbook, HUD 4000.1, contains a variety of changes, updates and other alterations to FHA loan policy. In many cases, FHA loan rules for new purchase loans and refinance loans may have stayed the same, in other cases there are slight (or more substantial) revisions to FHA policy. One set of frequently asked questions about this new handbook and revised policy centers around FHA refinance loans. For example, one section of the new handbook that governs refinance loan transactions discusses what policy FHA has when the borrower’s name is on the title of the property but not listed on the mortgage secured by that property. Does the borrower qualify for an FHA refinance loan in such cases? According to a Frequently Asked Questions list | more...

September 24, 2015

FHA Loan Income Requirements: A Commission Question

By Joe Wallace

We recently got a question regarding commission income and how it may be reviewed by the lender. More specifically, the question is about whether the nature of the reader’s income is truly “commission income” and how the lender might view that on the FHA loan application. The reader asks: “On my pay stub next to earnings it says commission, but this actually isnt true commission pay. We arent selling anything, we deliver to stores. Its just how my company decided to pay us. So my question is do I fall under this category of commission based salary, where I would need a year of income or would that not matter in my case?” Unfortunately, the answer to this question would come from the lender. The loan officer’s job is to | more...

September 23, 2015

HUD 4000.1 Questions: Occupancy

By Bruce Reichstein

With the publication of the new FHA Single Family Home Loan guidebook, HUD 4000.1, there have been some changes, updates, revisions and restatements of existing FHA loan policy. We’re examining the new rule book over time to discover what borrowers and lenders alike may need to know about FHA home loans under the new handbook. Occupancy is an important question/issue connected with FHA home loans. HUD 4000.1 states that there is a definite occupancy requirement for new purchase single-family home loans: “At least one borrower must occupy the property as their principal residence within 60 Days of signing the security instrument and intend to continue occupancy for at least one year.” There is also a requirement on non-occupying co-borrowers–they don’t have to live in the home but must meet the | more...

September 21, 2015

FHA Loan Appraisal Questions

By Joe Wallace

There are many readers who ask us appraisal-related questions in the comments section here; some are general questions, while others get quite specific. Here’s an example of one of the more specific FHA appraisal questions we’ve been asked recently: “If a bedroom has two windows with keyed burglar bars do both have to be replaced with quick release burglar bars?”. The FHA has recently issued HUD 4000.1, which is a comprehensive policy guidebook for FHA single family loans including references to FHA appraisal standards. Those references do include a mention of bars on windows: “The Appraiser must report when the Property has security bars on bedroom windows or doors.” Note that this reference says nothing about replacement or removal, however state or local building code might. So what all borrowers | more...

September 19, 2015

All About HUD 4000.1, The New Single Family Policy Handbook

By Joe Wallace

In the weeks leading up to the launch of the new FHA Single Family Home Loan policy handbook, HUD 4000.1, we’ve discussed some of the contents of the handbook in detail, but some may wonder what exactly HUD 4000.1 is and how it affects them. HUD 4000.1 consolidates and updates FHA loan policy for single-family into a single reference. It supersedes many prior FHA loan mortgagee letters, which are issued occasionally by the FHA/HUD to announce, revise, or clarify FHA loan policy. According to the FHA official site, HUD 4000.1, “The Federal Housing Administrations (FHA) Single Family Housing Policy Handbook (SF Handbook; HUD Handbook 4000.1) is a consolidated, consistent, and comprehensive source of FHA Single Family Housing policy.” What does that mean? According to the FHA/HUD, the new handbook has | more...

September 17, 2015

FHA Loan Credit Requirements Versus Lender Credit Requirements

By Joe Wallace

We get many questions about the difference between FHA loan minimum FICO score and credit requirements and the lender requirements for same. Here’s one of the latest examples: “Seems like there is a lot of contradiction between what is on the FHA site and what the FHA Reps. are answering the consumers the questions. Why have FHA guidelines if the lenders dont have to follow them and can overrule them with their own? I have a credit score of 580 and a one time 30 day late mortgage payment in the past 12 months…” There were other details in the reader question, but the information above was the most pertinent. And the answer to the first part of the question is fairly simple. FHA loan FICO score requirements and other | more...