Articles Tagged With: FHA Home Loans

October 27, 2014

FHA Minimum Property Requirements: Acceptable Wells

A reader asks, “I just inspected a home with a buried point well. Public water is not available. This type of well is common and legal in th area. Is this an acceptable well for FHA guidelines. No survey was provided so it is impossible for me to determine well location and distance from the septic.” FHA loan rules in this area tend to defer to the local authority. The FHA does not have detailed rules for wells that would cover all situations. The key to the acceptability of wells in connection with an FHA appraisal depends greatly on whether the wells are acceptable to the local authority. It’s impossible to determine the nature of an individual well mentioned in a reader question, but in general borrowers should know that | more...

October 21, 2014

FHA Mortgage Rates and Recent Trends

By Joe Wallace

Is now the right time to refinance your FHA or conventional home loan? Is now the best time to look into a new purchase FHA mortgage? Recent FHA loan rate trends do seem to point that way with rates having fallen into 16-month lows recently. Mortgage rates, as we reported last week, took a big move lower pushing FHA mortgage loan interest rates down from the previously long-held 3.75% range down to 3.5% (best execution). That means borrowers who have outstanding financial qualifications may find rates at or near these numbers available, while borrowers who may not necessarily qualify for the very best rates may also find lower-than-usual FHA rates while this trend lasts. Monday’s FHA interest rate trends had the recent move to 3.5% (a “best execution” rate available | more...

October 1, 2014

FHA Single-Family Home Loan Occupancy Rules

By Joe Wallace

FHA loan rules for single family home loans include an occupancy requirement. This requirement is designed to encourage single-family borrowers and exclude investors from using single-family FHA mortgage loans to purchase investment property. Why? The intent of the single-family home loan program is to help eligible borrowers get into affordable housing using a low-cost, lower-than-conventional loan interest rate. These rates are not intended to help investors buy property for non-occupying rental or outright sale. What are the FHA loan rules for occupancy? The full explanation of the rules can be found in HUD 4155.1 Chapter Four Section B, which starts off by defining what a “principal residence” is. A home purchased with a VA mortgage is required to be used as the principal residence, so it’s good to know what | more...

September 12, 2014

FHA Condo Loan Questions

By Joe Wallace

A reader asks, “I live in a condominium of 275 homes. We are getting complaints from mortgage companies that we are not FHA approved. We meet all legal guidelines that are required just not for FHA approval.” “We were told by someone that FHA has just recently stopped approving condos for mortgages, is this true? Also what is the percentage of FHA approved condos in Pennsylvania and what is the percentage of FHA approved condos in the entire United States. We have been told it was 10-20 percent. Also what are guidelines that a HOA must meet to be approved for FHA if it were to be considered. Thank you for your help in advance.” We have seen no guidance from the FHA stating that condos would no longer be | more...

September 11, 2014

FHA Loan Myths: Refinancing With Your Existing Lender

By Joe Wallace

So you have a home loan–a conventional mortgage, VA loan or even an existing FHA loan–and you want to refinance. Some borrowers go right for their existing lender to apply, even if the interest rate or terms & conditions aren’t as advantageous as those offered elsewhere. Are you REQUIRED to use your existing lender for a refinance loan? No. Borrowers are free to refinance an existing home loan with another financial institution. This is true even of an existing FHA mortgage that you might be paying on–if you wish to refinance, you can search for another participating FHA lender who can work with you and your circumstances. The key to getting a better deal on your interest rate and terms is to comparison shop between your existing lender and any | more...

August 20, 2014

FHA Loan Appraisal Requirements: A Reader Question

By Joe Wallace

A reader asks, “We are looking at purchasing a home that was built in 1871 almost everything has been replaced but the owner can not find the well. They have an idea of where it is but not sure.” “They just put in a UV Water system and replaced the septic tank, but I am concerned that we will not get approval with an FHA loan. Any advice or suggestions would be greatly appreciated. I have already contacted our county property surveyor and health inspector and there is no information with the county on the property because in NY only new properties get surveyed.” Questions like this are very difficult to answer for one simple reason–FHA minimum property standards aren’t the only rules at work when it comes to appraisals. | more...

August 5, 2014

FHA Loan Minimum Property Requirements For Mobile Homes: A Reader Question

By Joe Wallace

A reader asks, “I am applying for refinance on my double wide home and have had an appraisal done and have made all upgrades they have requested. Now they are asking me to have an engineer to come out to inspect the footings that were put in and have a certified engineer sign off on them. I have looked at the requirements and do not see where this is required.” “Can you give me any advice on this? The footings (pillars) were put in according to the manufactures specifications and were inspected at the time of the installation of the double wide.” What FHA loan applicants need to know in situations like these is that FHA minimum property requirements are not necessarily the only rules that apply. The answer to | more...

What you should know about FHA 203(h) Loans For Disaster Victims

August 1, 2014

Types of FHA Home Loans

By Joe Wallace

There are a wide variety of options when it comes to the FHA loan program. Did you know you can buy or refinance a home using an FHA mortgage? You don’t have to have an existing FHA mortgage in order to refinance into an FHA mortgage, and for qualifying borrowers aged 62 or older the Home Equity Conversion Mortgage loan offered under the FHA loan program can also be an option. For new purchase FHA home loans, borrowers have the option under the FHA single-family loan program to purchase a suburban home, a townhome, condo, duplex or other home classified as real property (no houseboats or motor homes). FHA loans for new purchases require a minimum 3.5% down payment. This is non-negotiable, though borrowers are free to make a larger | more...

July 28, 2014

FHA Streamline Refinancing Loans and Delinquent FHA Mortgages

By Joe Wallace

In our last blog post we examined FHA loan rules for skipped payments and delinquent mortgages with regard to an FHA refinance loan. HUD 4155.1 Chapter Three addresses these issues in general, stating the FHA requirement that, “The borrower must be current on the loan being refinanced for the month due prior to the month in which he/she closes the refinancing, and for the month in which he/she closes.” But what does the FHA loan rulebook specifically say about delinquent payments on mortgages to be refinanced with an FHA Streamline Refinance loan? HUD 4155.1 Chapter Six Section C states, “A delinquent mortgage is not eligible for streamline refinancing until the loan is brought current.” That means that skipped payments are not allowed, and the delinquency issue must be addressed as | more...

July 9, 2014

FHA Reverse Mortgage Loan Rules For Occupancy: A Reader Question

By Joe Wallace

A reader asks, “My mother-in-law is sole owner of her home. she remarried and acquired a reverse mortgage. She is getting a divorce. unfortunately, she was force out of her house because of his violence. My question is how long can he live in the house if she is not there?” This situation calls for a lawyer–the laws of the reader’s state would definitely apply here. However, there is a very important FHA loan rule on HECM loans that borrowers need to be aware of and that definitely applies in this circumstance. FHA HECM loans require occupancy. A borrower who no longer occupies the home that secures an FHA HECM loan can and at some point definitely could have the entire loan declared due in full because failure to maintain | more...