Articles Tagged With: FHA Loan Application

April 25, 2012

FHA Loans: Shopping For Your Home

The FHA and Department of Housing and Urban Development offer plenty of programs to help potential FHA borrowers learn about the process of finding a suitable property, understand the FHA loan application process, and much more. The FHA offers housing counseling referrals, links to FHA loan calculators, and provides a list of home buying programs offered in each state. But what about resources for those who haven’t gotten to the planning stages for an actual FHA home loan? What does the FHA offer to people who simply want to do research about FHA mortgage loans, buying a home, and becoming a home owner? There are a wide variety of resources available, but the FHA and HUD have offered some newer ones designed for people on the go, who want to | more...

April 20, 2012

FHA/HUD Assistance For Hawaii Storm Victims

By Joe Wallace

The FHA and HUD have announced disaster assistance for victims of recent storms in Hawaii. According to a press release issued by the Department of Housing and Urban Development, the department will “speed federal disaster assistance to the State of Hawaii and provide support to homeowners and low-income renters forced from their homes following severe storms, flooding and landslides” during the month of March. The announcement comes after a presidential disaster declaration for Hawaii’s Kauai County. According to the press release, “The President

April 18, 2012

Prison Time For Reverse Mortgage Scammers

By Joe Wallace

From time to time, we report news of housing scams that can affect FHA borrowers. It’s a way of raising the awareness that such scams exist, a reminder of the necessity of being careful in the loan process. The latest news from the FHA and HUD includes a report of three loan officers and a title agent who have been barred from doing business with the FHA/HUD following their convictions on fraud charges. The action was announced in a press release at HUD.gov, HUDNo.12-069: “The U.S. Department of Housing and Urban Development (HUD) today announced the indefinite debarment of three South Florida mortgage loan officers and a Pittsburgh title agent following their criminal convictions on charges they defrauded elderly borrowers, mortgage lenders and the Federal Housing Administration (FHA). Marcos Echevarria, | more...

April 17, 2012

FHA Loan Reader Question: Chapter 7 Bankruptcy and Foreclosure Actions

By Joe Wallace

A reader asks, “I filed Chapter 7 in 2010 and only 1 item was included. I filed due to divorce in 2007 and ex spouse did not pay house payments and he was evicted in 1/09 and home was padlocked and forgotten about by B of A. After so many letters and calls B of A finally foreclosed on padlocked property in 2011 THREE YEARS later. I have great credit score of over 700+and would like to buy. I have been renting for over 3 years. Is

April 11, 2012

FHA Loan Reader Question: Septic Systems

By Joe Wallace

A reader asks, “I am looking to buy a home in the middle of a suburban neighborhood that is the only house in the area (that we know of) that is on septic. Everyone else is on city sewer.” “Now if the FHA comes out with an appraiser to inspect the home/property, will they require that the home be hooked up to city? Or will they inspect the septic systems to make sure it’s in proper working condition? And will it pass if it is? And will they allow it to stay on septic?” Questions like this have a two-part answer. Part one is that local building codes and ordinances have much to do with the FHA appraiser’s decision. The home must live up to local code in order to | more...

April 10, 2012

FHA Loan Reader Question: Seller Contributions

By Joe Wallace

A reader asks, “My question: if the purchase price of a home I want to buy is 290,000 the maximum sellers concession can only be a maximum of 6% of the agreed price? Can it be more than 6% if the home values at a greater than 290k ?”

April 5, 2012

FHA Loan Reader Questions: Am I Being Discriminated Against?

By Joe Wallace

A reader asks, “My spouse and I recently found a home we like and applied for a FHA loan. I draw disability every month. I have provided the loan advisor with a letter from the Social Security office stating how much my monthly income is, why I became disabled, the date I became disabled, and the date in which I started drawing disability.” “The loan advisor keeps turning us down stating that I am not providing him with efficient information about my disability income. He keeps asking for forms stating that my disability is permanent or a date in which it may stop, prof that it is continuous, and he just sent an email stating, ‘Have you considered asking her primary care physician for a letter stating that her disability | more...

March 30, 2012

FHA Loans and Credit Reports

By Joe Wallace

One frequently asked question about FHA home loans involves the credit check. Many borrowers want to know what credit score the lender is looking for, (many lenders require a minimum score of 620) but many more also want to know what kind of credit reporting data the loan officer needs to approve or deny an FHA home loan application. There are many areas the lender must review as part of the FHA loan application. A typical credit check includes a review of all credit inquiries over the last three months–one reason why many lending experts recommend not applying for new credit cards or other lines of credit before or during a home loan application. The lender must also review credit information from the last seven years of the applicant’s credit | more...

March 8, 2012

FHA Home Loan Down Payment Rules–Payment Sources

By Joe Wallace

FHA new purchase home loan programs, where the borrower is buying a new or pre-owned home, require the borrower to make a minimum down payment of 3.5% of either the appraised value of the property or the asking price of the home, whichever is lower. FHA loan down payments are strictly regulated, and not just with the percentage required to put down as the minimum cash investment. Did you know the FHA also requires documentation on the source of the down payment money depending on circumstances? FHA rules state documentation is required when the borrower pays more than 2% of the sale price. It

March 7, 2012

FHA Loan Rules: Down Payments

By Joe Wallace

There are several government-backed home loan programs available for qualified borrowers. Some programs are for a specific set of people, such as the VA insured loan program for eligible veterans, while others like the FHA insured mortgage loan program are intended for any qualified borrower. There’s sometimes a bit of confusion between VA loan rules and FHA home loan regulations because the two programs are insured by the government, albeit by different agencies. VA home loans, for example, feature a no-money-down option that is sometimes mistaken for a feature of the FHA home loan program. Occasionally we get a reader question asking if the FHA loan program offers a similar no down payment FHA mortgage or if first-time FHA loan applicants are required to make a down payment. All FHA | more...