Articles Tagged With: FHA Home Loans

August 11, 2015

FHA Mortgage Rate Trends: Starting Out Higher

In our last report we mentioned that Friday saw a rally for mortgage rates; the following Monday, August 10, served to wipe out those gains. In spite of that move higher, many lenders are offering best execution rates for 30-year fixed rate conventional mortgages (at the time of this writing) between 3.875% and 4.0%. We’ve had many days of improvement with minor adjustments here and there and a variety of sources report the rate activity we’re currently seeing could be deemed fairly typical. Overseas headlines about the Greek debt crisis have lost their influence on rate activity at home, it seems, but the China stock market woes could easily become an influence again if breaking news that influences investor behavior occurs. FHA mortgage loan interest rates are holding steady in | more...

August 7, 2015

FHA Loan Fees Which Are Not Considered Closing Costs

By Joe Wallace

There are a variety of fees and expenses associated with FHA home loans; typical costs that the borrower should be saving up for during the planning stages of a new home loan. The FHA requires a minimum 3.5% down payment, for example, and that down payment is considered separate from the borrower’s closing costs. And then there are expenses which are not considered part of the down payment OR closing costs. The FHA loan rules found in HUD 4155.2 at the time of this writing explain these costs. Discount points (a prepaid amount designed to lower the interest interest rate) are included in such expenses–not a down payment, not a closing cost. Chapter Six of HUD 4155.2 describes discount points as follows: “Discount points charged by the lender on a | more...

July 3, 2015

FHA Home Loans: Pre-Purchase Counseling, HECM Loan Counseling

By Joe Wallace

We often write posts that encourage borrowers to examine their pre-purchase counseling options before starting on the journey to apply for an FHA mortgage loan. We also write posts for eligible Home Equity Conversion Mortgage (HECM) loan applicants discussing HECM loan counseling. Some borrowers might wonder what the difference is between the two. There are some obvious differences. HECM loans are a type of refinancing loan for eligible borrowers aged 62 and older that requires no monthly payments and comes due when the borrower dies or sells the home. FHA single family home “purchase loans” are for borrowers looking to buy a home with an FHA guaranteed mortgage. So up front, many of the concerns a borrower has with a new purchase loan differ greatly than those for any refinance | more...

July 2, 2015

Mortgage Loan Closing: How Difficult Is It?

By Joe Wallace

Every home loan is different. When you apply for an FHA mortgage, you may experience a variety of circumstances along the way that can affect how simple or difficult it is to get to your closing date. Borrowers who prepare ahead of time, who get pre-purchase counseling, and learn from the mistakes of their fellow house-hunters can make the entire process simpler and easier to deal with. That’s one reason why the FHA has a list of resources on its official site (www.fha.gov) aimed at advising new borrowers, but the FHA and HUD are not the only government agencies that offer such assistance. The Consumer Financial Protection Bureau (CFPB) also has a wealth of resources aimed at helping consumers in general, but they also have a special section for house | more...

June 22, 2015

FHA Loans For Houseboats and RVs?

By Joe Wallace

One very common question about FHA loans involves the type of properties eligible for a single-family loan. FHA loan rules state that certain types of properties cannot be considered eligible for an FHA loan, including condo-hotels, time shares, and seasonal homes. One of the sticking points for these properties when it comes to the FHA loan rulebook is that there is either intermittent occupancy (due to the nature of a condo-hotel, for example) or occasional occupancy intended for the home to be purchased with the FHA loan. Unfortunately, in these cases the FHA loan occupancy requirement is often what bars the loan–you are required to be an owner-occupier of the property you buy with an FHA single-family mortgage loan. But what about properties where the borrower does intend to live | more...

June 18, 2015

FHA Loans For LGBT Borrowers: Equal Access Guaranteed

By Joe Wallace

During the month of June, the FHA/HUD official site has posted several things about Fair Housing rules that pertain to members of the LGBT community. Did you know that FHA and HUD rules require equal access for all financially qualified applicants and that you cannot be discriminated against in the housing process for non-financial reasons, including identifying as LGBT? And that’s not limited to FHA loans or refinance loans. According to the HUDdle blog at HUD.gov,” In 2010, HUD formally adopted the principle that gender identity discrimination is sex discrimination under the Fair Housing Act. This means that when HUD receives a fair housing complaint that alleges discrimination because someone does not conform to gender stereotypes, HUD now begins a formal investigation under the Fair Housing Act.” Since issuing this | more...

June 6, 2015

FHA Mortgage Interest Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan interest rates have been trending higher as of late, partially due to overseas economic headlines such as the Quantitative Easing situation with the European Central Bank, but also because of local economic data–case in point, the much-anticipated jobs report that came out on Friday. The Employment Situation Report showed positive data, which can and often does have a negative effect on mortgage loan interest rates. This may seem like a contradiction in the eyes of those not used to watching the markets, but a good thing to keep in mind about mortgage loan interest rates is that when there is bad economic news, mortgage loan rates can and often do improve. When there is positive news the opposite can and often does apply. Investor reaction to Friday’s economic | more...

May 21, 2015

FHA Refinance Loans, Appraisals, and Refunds

By Joe Wallace

A reader asks, “I closed a cash out refinance in December 2014. The term was a fifteen year at 4.75%. I received a flyer from my lender in February that offered a 3.25% rate. I decided to inquire about a thirty year term as circumstances had changed significantly after the first of the year with my wifes job. The lender sent me a GFE and we locked in the rate. After a short while I was told I had to pay for another appraisal and basically resubmit all of the paperwork that I had previously sent to the lender. As of three months later I still have no refinance and am out of pocket over $500.” “Is this legal to open two FHA cases within two months and why was | more...

May 1, 2015

Co-Borrowers and Foreclosure: A Reader Question

By Joe Wallace

A reader asks, “My father purchased a home approx.13 years ago. He became ill in the beginning of 2013 and died the end of 2013. I was the co borrower of the home. I tried to do everything in my power to keep the home but did not receive any help. The help that was available was only for those who had a spouse. The house foreclosed in Sept 2014. I have been without a place to live since then because of the foreclosure being on my credit report. This is the worse I have ever dealt with.” “I have been employed for nearly 19 years. I work hard everyday and now living with my mother because I couldnt save my fathers home after his death. I live in Nashville,TN. | more...

April 30, 2015

Recent Changes to FHA HECM Due And Payable Rules

By Joe Wallace

Recently the FHA and HUD announced further changes to the FHA Home Equity Conversion Mortgage or HECM loan program. There have been a number of alterations and adjustments to the FHA HECM loan program in the last year or so, and the new changes further clarify the rules for certain aspects of the HECM program. In this case many of the rule changes have to do with the procedures for declaring a HECM loan due and payable. According to FHA Mortgagee Letter 2015-10, “For HECMs that are due and payable, the Due Date is the date when: –the mortgagee notifies the Secretary that the mortgage became due and payable without HUDs approval; or–the Secretary approves the mortgagees request to call the mortgage due and payable. For HECMs with a Case | more...