Articles Tagged With: FHA Home Loans

July 25, 2016

FHA Loan Questions: Credit Scores and Down Payments

We get many questions about FHA loan standards for FICO scores and similar issues. Here’s one of the latest: “I am looking to purchase a mobile home for 25000. I have a 610 credit score and a stable job (been there for 8 years). I want to put down 40% of the loan. Do you think I would have any major issues even with a low credit score?” Questions like these are a good reminded that plenty of misconceptions about the home loan process exist. Unfortunately one of the prevailing misconceptions is that FICO scores are THE determining factor in home loan approval. That is not to dismiss the importance of FICO scores. Lender standards require a borrower to have a minimum FICO score (often between 620 and 640 depending | more...

June 21, 2016

Mortgage Rate Trends: Higher, Faster To Begin The Week

By Joe Wallace

Mortgage rates kicked off the week moving higher and faster than last Friday. The “Brexit” drama in Europe is partly to blame, as investor reaction to the economic uncertainty there influences mortgage rates here. For a while, bond market activity in that regard was favorable to mortgage loan interest rates, but now the wind seems to be shifting directions. The fact that investors don’t know what will happen with the Brexit (will Britain stay in the EU or depart?) and more importantly, don’t know what will happen economically as a result of whatever choice ends up being made is contributing to volatility and potential volatility between now and Brexit referendum time on Thursday. There are some market watchers who are now saying that recent lows are likely as low as | more...

June 9, 2016

HUD Announces Agreement In Housing Discrimination Case

By Joe Wallace

The Department of Housing and Urban Development have announced an agreement in a housing discrimination case involving First-Citizens Bank & Trust Company. According to a press release on the HUD official site, the case involved allegations that the bank “denied mortgage loans to African American, Latino and Asian American mortgage applicants at a disproportionately higher rate than white applicants. HUD’s investigation concerned retail loans originated by the banks predecessor, First Citizens Bank and Trust Co., in 2010 and 2011.” According to the HUD official site, Gustavo Velasquez, HUDs Assistant Secretary for Fair Housing and Equal Opportunity, commented on the settlement, saying, “This agreement aligns our shared goals of promoting fair housing and expanding access to credit for qualified working families. HUD will use its enforcement powers to ensure that everyone | more...

June 3, 2016

FHA Loan Questions and Answers

By Joe Wallace

Tired of renting and looking to purchase a home of your own? There are many questions many first time home buyers or first time FHA loan applicants have. Here is a list of some of the most frequently asked questions about FHA mortgages. Is There An Income Limit For FHA Loans? No. FHA mortgages are not designed specifically for one type of financial situation or another. You cannot “earn too much” with the FHA single family home loan program. All wage earners are encouraged to explore their FHA loan options. Is There A First-Time Home Buyer Advantage Or Preference With FHA Mortgages? While an individual lender may offer certain perks for first-time home buyers, the FHA single family home loan program itself does not have a first time home buyer | more...

May 23, 2016

FHA Appraisal Rules: Shared Wells

By Joe Wallace

From time to time we get asked very specific questions about the FHA appraisal process-some readers want to know about specific aspects of the appraisal and whether or not a certain condition is considered acceptable under FHA loan rules. As always, we like to remind everyone that FHA appraisal rules often are not the only ones that may apply for a given situation or with regard to a certain feature. In some cases FHA appraisal requirements don’t spell out a specific guideline but instead defer to the local or state building code. In other circumstances, FHA appraisal rules may be quite specific. One area where FHA appraisal rules are specific has to do with the nature of a property that is served by a shared well. HUD 4000.1 page 162 | more...

May 11, 2016

HUD Fair Housing Decision Upheld By Appeals Court

By Joe Wallace

An appeals court has upheld a HUD Fair Housing determination. According to the press release at HUD.gov (HUDNo.16-070), “The U.S. Department of Housing and Urban Development announced today that it has won an important Fair Housing Act victory in the United States Court of Appeals for the First Circuit.” According to the press release, the appeals court decision backs a “Final Order of the Secretary of HUD” following a trial before an administrative law judge, “that a condominium association discriminated against a resident with disabilities by refusing to allow him to keep an emotional support animal.” Federal Fair Housing laws prohibit discrimination against people with disabilities to include “no pet” rules that affect a home owner or renter’s ability to keep a support animal (that would include home owner or | more...

May 9, 2016

Mortgage Rate Trends: Moving Lower After Jobs Report

By Joe Wallace

Friday the much-anticipated Employment Situation Report had data that wasn’t as favorable as expected. That helped rates further recover some losses seen in late April, resulting in some market watchers to declare Friday’s gains as the “lowest in three years” (best execution) for some financial institutions. On Friday, 30-year fixed rate conventional mortgages were, best execution, in 3.625% territory. That’s down from a late-April range with 3.75% at the upper best execution end. FHA mortgage rates remain in a range between 3.25% and 3.5%. FHA rates tend to vary more among participating lenders, so it is a very good idea to shop around for the best rates. As always, best execution rates are not available to all borrowers or from all lenders. Your access to rates like these depends greatly | more...

May 5, 2016

FHA Loans and FICO Scores: Fact and Fiction

By Joe Wallace

Some potential FHA borrowers have questions about FHA loan credit score requirements. It’s easy to hear part of story when it comes to other people qualifying for an FHA mortgage and assume you’ve gotten all the facts, but the reality is that FHA loan rules and credit score requirements aren’t the whole picture. Lender standards also have a say in loan approval. That is why FHA loan rules, which specify a FICO score starting at 580 (for maximum financing), don’t have the final say. Lender standards also apply, and those standards (provided they are applied in accordance with federal law) will also factor into the application process. An FHA loan fact: FICO scores below 500 are not permitted. An FHA loan fiction: Anyone with a FICO score in the mid | more...

April 27, 2016

Mortgage Rate Trends: Holding For Now

By Joe Wallace

We’re writing more this week on mortgage loan interest rate trends due to the upward movement and the potential for this week’s economic data releases (and scheduled Fed statement) to influence those rates. After dropping to year-long (or greater) lows, rates moved higher, but not yet into the four percent range we’ve seen in the past. At the time of this writing (ahead of the Fed statement due out on Wednesday) 3o-year fixed rate mortgages were holding at a best execution 3.75%, though some holdouts may still be offering rates a bit lower for now. FHA mortgage rates are still in a range between 3.25% and 3.5% best execution. If the Fed statement has investors reacting in ways that put upward pressure on mortgage loan rates, we could see that | more...

April 25, 2016

HUD Announces Agreement in Fidelity Bank Discrimination Case

By Joe Wallace

The Department of Housing and Urban Development has announced a settlement in a case involving Fidelity Bank and allegations of Fair Housing Act violations. According to HUDNo.16-054, “The U.S. Department of Housing and Urban Development (HUD) announced today a $1 million agreement between the Fair Housing Project of North Carolina Legal Aid and North Carolina-based Fidelity Bank to resolve allegations the mortgage lender engaged in unfair lending practices against minority applicants”. Federal law makes it illegal to “make housing unavailable or to discriminate in the terms, conditions, or privileges of the sale of a dwelling because of race” according to the press release on the FHA/HUD official site. “The Fair Housing Act also makes it unlawful for any person or entity whose business includes residential real estate-related transactions to discriminate | more...