Timely news, information and advice concentrating on FHA, VA and USDA residential mortgage lending.

Vimeo Channel YouTube Channel

Articles Tagged With: FHA Loan Application

September 14, 2012

FHA Loan Reader Question: FHA Loan Approval

By Joe Wallace

A reader asks, “How long does it take a lender to let you know if you qualify for the FHA loan?” The answer to this question varies greatly depending on the lender. There are many factors that can play a part in the processing time for an FHA mortgage including the lender’s backlog of work waiting to be processed and other issues. But there is an FHA loan rule that states the lender does have a time limit to take action on your loan application. There is a 30 day time limit–the lender must act on your application within 30 days and inform you of that action. That’s not necessarily a mandate to have your loan approved in 30 days, and there are caveats to the 30 day rule which | more...

 

September 10, 2012

FHA Loan Reader Questions: Is A Physician Statement Required as Proof of Income for Disability Compensation?

By Joe Wallace

A reader asks, “I have been approved for an FHA home loan or so my loan officer told me. She said everything was good I had been approved, a closing date was selected and ten minutes later I get a text message from my loan officer that the underwriter requires one more document.” “I am on Social Security Disability, proof of all income was provided, but now the underwriter wants a letter from my doctor guaranteeing that my medical condition will not change for the next 3 years! No doctor can guarantee my health or anyone else’s, can the lender suddenly deny my loan? My doctor would look at me like I had totally lost my mind. Please help me with this.” Situations like this happen more often than you | more...

 

September 5, 2012

FHA Loans and Homeowner’s Association Policies

By Joe Wallace

A recent press release issued by the FHA/HUD announced charges against a Florida homeowner’s association for policies the press release claims are in violation of the Fair Housing Act. According to HUDNo.12-145, “The U.S. Department of Housing and Urban Development (HUD) announced…that it is charging a Gibsonton, FL, homeowners association and its Tampa-based former management company with violating the Fair Housing Act by subjecting a family to different rental terms and conditions because they have six children.” The charges allege, according to the press release, “that Townhomes of Kings LakeHomeowners Association (HOA), Inc., and Vanguard Management Group, Inc., violated the Fair Housing Act by telling the family that they had too many people living in their rental townhouse and threatening to evict them if they didn’t reduce the number of | more...

 

September 4, 2012

FHA Announces Assistance For Louisiana Hurricane Isaac Victims

By Joe Wallace

Hurricane Isaac brought with it plenty of flooding and storm damage; the FHA and HUD have announced federal disaster assistance for affected areas in Louisiana. 35 parishes were affected by Isaac, and HUD Secretary Shaun Donovan has announced FHA/HUD relief efforts for “homeowners and low-income renters forced from their homes” due to the hurricane. According to a press release at FHA.gov, “President Obama issued a disaster declaration for Acadia, Allen, Ascension, Assumption, Avoyelles, Cameron, East Baton Rouge, East Feliciana, Franklin, Iberia, Iberville, Jefferson, Jefferson Davis, Lafourche, Livingston, Morehouse, Natchitoches, Orleans, Ouachita, Plaquemines, Pointe Coupee, Rapides, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, and West Baton Rouge Parishes. The President

 

August 31, 2012

FHA Loan Reader Question: Am I Eligible For an FHA Loan?

By Joe Wallace

A reader asks, “Me and my husband lost our home due to a house fire. We are currently in a Chapter 13 bankruptcy and have been since January of this year. Is there any way we can buy a new home in this situation? We both have jobs also.” FHA loan rules specifically address the circumstances a borrower who has a Chapter 13 on his or her record can get an FHA home loan. According to HUD 4155.1 Chapter Four Section C; “A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that

 

August 29, 2012

FHA Loan Appraisals: Can I Get A Refund?

By Joe Wallace

When a buyer looking for a home to purchase with an FHA mortgage finds a home, before the loan can be approved there must be an FHA appraisal. This appraisal will determine the FHA loan amount which is based on the fair market value of the home, not the asking price set by the seller. In situations where the appraisal comes back with a fair market value lower than the asking price of the property, some buyers struggle with a decision to walk away from the loan. In some cases it’s best to walk away, in others it may be a good idea to re-negotiate the sale price. But some borrowers still walk away from the property, not liking the terms or the price. The first question many of these | more...

 

August 28, 2012

FHA Loan Reader Questions: FHA Loan Processing Times

By Joe Wallace

A reader asks, “Once an offer has been made on a home. How long should it take a lender who has pre-qualified but not pre-approved a loan to close on the home?” This type of FHA loan question is best answered by the lender; it’s impossible to predict what factors could affect a home loan once the process is set in motion. The financial institution’s work load, the amount of time it takes the appraisal report to be completed and sent back and other factors all depend greatly on the housing market. It’s also important to point out that pre-qualification is not a guarantee of FHA home loan approval; if a borrower did not fully disclose information on the application form that comes to light at another time, that could | more...

 

August 22, 2012

What Does My Lender Need To Process My FHA Loan Application?

By Joe Wallace

FHA loan rules specify a list of required documents and paperwork needed to process an FHA home loan properly. In addition to your application data, the lender needs a list of things in order to perform the “mortgage credit analysis”. Not all of these documents are supplied by the applicant, but some of the lender-generated paperwork requires the borrower’s permission in writing, such as the approval to pull credit reports from the three major credit reporting agencies Equifax, TransUnion, and Experian. The list of required documentation also includes “evidence of a Social Security number” which is usually your Social Security card or other documents the lender may accept as proof of your number. The lender must complete a verification of employment, which means following up on the data you provided | more...