September 17, 2012
FHA Makes Revisions To Condo Project Approval Process
The Federal Housing Administration has issued revised condo approval guidelines applicable for
Articles Tagged With: FHA Loan Limits
September 6, 2012
Seller Concessions Limit on FHA Loans: A Reader Question
A reader asks, “Has the percentage of incentives a seller can offer a buyer with an FHA loan changed yet from 6% to 3%?
August 31, 2012
FHA Loan Reader Question: Am I Eligible For an FHA Loan?
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 28, 2012
FHA Loan Reader Questions: FHA Loan Processing Times
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 10, 2012
FHA Loans, Delinquencies and Federal Debt
What can make a borrower ineligible for an FHA guaranteed home loan? Many things–a credit score that is too low, a lack of verifiable income or employment, and according to HUD 4155.1 Chapter Four Section A, delinquent federal debts. Instructions to the lender in HUD 4155.1 state, “If, after checking public records, credit information or CAIVRS, a borrower is found to be presently delinquent on any Federal debt or has had a lien (including taxes) placed against his/her property for a debt owed to the Federal government, he/she is not eligible for an FHA mortgage until –the delinquent account is brought current, paid, or otherwise satisfied, or –a satisfactory repayment plan is established between the borrower and the Federal agency owed, which is verified in writing. Tax liens may remain | more...
August 1, 2012
FHA Loan Prequalification: Does It Expire?
A reader asked recently whether pre-qualification for an FHA home loan has an expiration date. The answer to that question depends greatly on the lender’s policies for pre-qualifying, but there’s a related issue that some borrowers may confuse with pre-qualification–interest rate lock-ins. Pre-qualifying is when an FHA loan applicant applies in advance for an FHA loan amount. The lender will tentatively approve an FHA loan amount based on the borrower’s application data and credit worthiness, but the real FHA home loan isn’t finalized until an offer is made, the appraisal has been accomplished and all the other usual procedures are finished. Pre-qualification is a way for the lender to know approximately how much loan he or she can afford and house hunt accordingly. The interest rate lock-in period is different | more...
July 19, 2012
A Second Chance For Some FHA Borrowers? HUD Accepting Applications to Purchase Troubled Neighborhoods
The FHA and HUD have issued a press release about the Distressed Asset Stabilization Program, which is described as “an expansion of an FHA disposition program that sells pools of defaulted mortgages headed for foreclosure and provides the opportunity for the purchaser and borrower to avoid a costly foreclosure.” HUDNo.12-116 says “Qualified entities interested in purchasing pools of severely distressed loans formerly insured by the Federal Housing Administration (FHA) can now submit applications for the Distressed Asset Stabilization Program“, stating that around 3,500 loans will be sold in four areas among the communities hardest hit by the foreclosure crisis. Those areas are Chicago, Illinois, Newark, New Jersey, Phoneix, Arizona and Tampa, Florida. This stabilization program is part of the Obama Administration’s efforts to stimulate “public/private partnerships to stabilize neighborhoods and | more...
July 13, 2012
HUD Charges Minnesota Condo Association and Management Company With Fair Housing Act Violations
In spite of federal laws, conventional, VA, and FHA loan applicants sometimes experience discrimination when house hunting. While the most obvious types of discrimination involve bias against race, religion, sexual orientation, or national origin, there’s another type of discrimination that’s just as illegal and unfair–discrimination based on family status. According to a press release issued by the Department of Housing and Urban Development, a Minnesota condominium association and its management company, Gassen Company, Inc., have been charged by HUD with violating the Fair Housing Act, “by discriminating against families with children under the age of 18”. The press release says, “According to HUD
June 13, 2012
Reader Question: FHA Loan Credit Requirements
A reader asks: “The FHA approves people with poor credit. I see on the website that FHA is getting home loans, can you tell me what are your credit guide lines?” FHA loan rules establish minimum credit requirements for loan approval, but borrowers should know that it’s a mistake to assume an FHA guaranteed mortgage is a “bad credit home loan” or similar products. Banks that participate in the FHA loan program have their own credit requirements–they are not forced to issue home loans to borrowers that don’t meet the financial institution’s minimum credit score requirements for home loans even if the borrower technically meets the FHA minimum credit score cutoff. That’s one reason why borrowers are encouraged to contact the FHA directly (1-800-CALL FHA) to learn about and arrange | more...
June 6, 2012
FHA Loans and Government Assistance Payments–Do They Count As Verifiable Income?
One frequently asked questions about FHA home loans involves government benefits and/or government assistance payments. Can these income sources be used for the purpose of getting an FHA guaranteed home loan? Under the right circumstances, the answer is yes. It’s not automatic–the lender must verify the source of the income and also determine how long that income will last. According to HUD 4155.1 Chapter 4 Section E, “Income received from government assistance programs is acceptable for qualifying, as long as the paying agency provides documentation indicating that the income is expected to continue for at least three years.” Borrowers aren’t simply out of luck if that income will not last for three years; it can’t be used as income, but it can be considered in other ways according to the | more...