Articles Tagged With: FHA Home Loans

April 28, 2015

FHA Mortgage Rate Trends: Higher Ahead Of Fed Announcement

Mortgage loan rates shot up to highs we haven’t seen in around a month–Tuesday rates pushed higher ahead of two important economic data releases on Wednesday that have potential to push mortgage loan rates in one direction or the other depending on investor reaction to the contents of those releases. Wednesday morning sees the release of numbers from the first quarter Gross Domestic Product report (in the morning) and an announcement from the Fed (in the afternoon). The Fed event will be watched carefully as markets will react to any news that indicates whether or not the Fed intends to raise interest rates. That would have an effect, depending on how investors respond to the information, of pressuring rates higher or giving them a chance to recover from today’s move | more...

Can I buy a manufactured home with an FHA loan?

April 23, 2015

FHA Loan Income Rules: A Reader Question

By Joe Wallace

A reader asks, “Where I can find the income limits on FHA loans, if customer is buying for the first time?” This reader question implies two misconceptions about FHA home loans. The first is that there is a preference, advantage, or other special treatment given to first time FHA loan applicants or first-time home buyers. This is not true insofar as the FHA single-family home loan program itself is concerned. It’s true that there may be state or local programs in the borrower’s zip area that might be available to help first time home buyers. It may also be true that some financial institutions offer first time home buyer programs. But the FHA loan process itself shows no preference, gives no special benefits to a borrower who has never applied | more...

April 18, 2015

FHA Loan Rules For Income: Is There A Maximum Limit?

By Joe Wallace

A reader asks, “I was prequalified for an FHA loan and during escrow, my agent said I made too much money to be eligible for the loan. Does that make sense?” The simple answer to this question is no, the notion that a borrower makes too much money to qualify for an FHA mortgage loan does not make sense. But let’s examiner what official FHA and HUD documents say about the single-family FHA loan program: “If you are buying a home, refinancing a mortgage for a home you already own, or making home improvements, you may qualify for an FHA-insured mortgage. In fact, almost anyone who has a satisfactory credit record, enough cash to close the loan, and sufficient steady income to make monthly mortgage payments can be approved for | more...

April 14, 2015

FHA Home Loans, Mortgage Debt Cancellation, And Tax Time

By Joe Wallace

April 15th, the tax deadline, is very near, but many people choose to apply to get an extension so they can file their taxes later in the year. If you haven’t completed your taxes for 2014 and are considering an extension, there is some very helpful information about home loans, home loan debt and related issues that may affect those who have FHA home loans or refinance loans. One important issue many borrowers have had to face in recent years is the tax consequences from a home loan modification or similar alteration to a mortgage where part of the debt is forgiven, cancelled, or written off by the lender. What follows is not tax advice, we are simply quoting what’s printed on the IRS official site. If you have tax | more...

March 28, 2015

FHA Loans and Community Property Laws: A Reader Question

By Joe Wallace

A reader asks, “I have a previous property from my divorce showing as a foreclosure on my credit report. The property has actually been in litigation for the last three years and has not been forclosed. My current husband and I are trying to purchase a new home. Do you have any suggestions? Should I apply as a non purchasing spouse?” The course of action suggested in the reader question may be a good one, but there are some variables that can affect whether or not it is possible to do so. The first of these is whether or not the reader lives in a community property state where the laws dictate how shared financial responsibility in a legal marriage is handled. Community property laws may require the applicant(s) and | more...

March 18, 2015

FHA Mortgage Rate Trends: Large One-Day Drop In Best Execution Rates

By Joe Wallace

On Wednesday mortgage loan rates in general saw a significant drop in the wake of a highly anticipated Fed announcement, which included words some have taken to mean there will be no interest rate increase in the month of April. Some sources are labeling today’s downward move as “the best day of 2015” based on that drop; 30-year fixed rate conventional loan best execution rates are for some extremely well-qualified borrowers coming in at 3.75%, best execution. Borrowers who “floated” into the Fed announcement today were, by all accounts, given a good payoff. That said, those who floated are now being encouraged by many industry professionals to lock, as there is no guarantee that today’s sharp improvement in best execution rates will continue tomorrow or the next day. The lenders | more...

February 26, 2015

FHA Loan Rules For FICO Scores: A Reader Question

By Joe Wallace

A reader asks, “I have an existing FHA insured house in Dallas TX. Two years ago i moved to GA for Job an rented sonce. I am moving again to Houston TX And looking forward to buy a house. I am a professional Engineer and make a Decent salary. But unfortunately have 570 credit score. My wife has a score of 650 but she has no job. Please advise what is the best option to get approved” Let’s see what the FHA loan rulebook says about this situation. According to HUD 4155.1 Chapter Four Section A, all co-borrowers, co-signers and other parties named on the loan would have both income and credit histories examined by the lender: “When determining the creditworthiness of borrowers, coborrowers, or cosigners, the underwriter considers their | more...

February 12, 2015

FHA Loan Minimum Property Requirements: Tripping Hazards On The Property

By Joe Wallace

A reader asks, “What are regulations on trip hazards? I have a listing where the tree roots lifted up the driveway quite a bit. The tree has been removed, but roots and buckled blacktop drive still there.” FHA minimum property requirements don’t cover each and every situation where corrections might need to be made to the property in order for it to meet standards–in many cases the FHA minimum requirement includes a general rule that may be reinforced by state and/or local building code. According to the FHA/HUD official site, “HUD requires that each property insured with an FHA mortgage meet one of the nationally recognized building codes or a State or local building code based on a nationally recognized building code. In areas where such State or local codes | more...

February 7, 2015

FHA Loans and Identity Theft Issues: A Reader Question

By Joe Wallace

A reader asks, “We have applied for a FHA loan and until yesterday, had no idea that that someone had filed a tax return under my social security number back in 2012. I have submitted the proper forms to the IRS, and they have my accurate 2012 tax return on file. Because I submitted the tax return late, I have never been contacted by the IRS regarding this.” “It was not until I called to set up a payment program for the taxes that I owe, that it was brought to my attention. Is this a 100% deal breaker for the loan, if my account is under review for identity theft? Can the underwriters still get the tax information that they need or is all my information frozen? I am | more...

February 5, 2015

FHA Loan Rules For New Loans Following Chapter 7

By Joe Wallace

A reader asks, “In june 2015, i will have two years post bankruptcy, chapter 7. I want to purchase a home, first time buyer, credit score of 710, my question is, Am I able to start the process now, or should i wait the two full year mark? ( I was told this by a mortgage rep that fha requires two full years post bk) .” The FHA official site has a FAQ page about FHA loans after a Chapter 7 bankruptcy proceeding. It says: “A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA mortgage if at least two years have elapsed since the date of the discharge of the bankruptcy.” The reader’s comment about the two year waiting period is correct, based on the | more...