June 4, 2012
A reader asks, “I filed for my Chapter 7 bankruptcy in 8/09 & was discharged in 2/10 since to discharge…have worked on getting my scores higher which I have about a 650 now but my only concern is my previous house has yet to go into foreclosure so I guess what I
May 29, 2012
A reader asks, “There are two old debts from 2003 that I have not been able to verify on my credit report. The total of this is $520, the underwriter on the mortgage has been relentless about this debt. I will not pay for something that do not know what it is for. Does this affect my FHA loan?” Reader questions like these come in quite often. Some of them seem to be asking whether the FHA has a rule that gets around a lender’s insistence on a specific issue connected with the FHA loan; a requirement such as a minimum waiting period following a bankruptcy proceeding or the example cited in the reader’s question here. Do FHA loan rules trump the financial institution’s policies in such cases? Can the | more...
May 25, 2012
FHA Streamline Refinancing loans–which are issued for those with existing FHA mortgages–are available in two ways. One is a non-credit qualifying streamline loan which is available to qualified borrowers, the other is the “with credit check” or “credit qualifying” streamline refinance. When is a borrower eligible for a no-credit check FHA streamline loan? Part of the answer requires a look at the FHA definition of the streamline loan. According to the FHA official site, “Streamline refinances are designed to lower the monthly principal and interest payments on a current FHA-insured mortgage, and must involve no cash back to the borrower, except for minor adjustments at closing that are not to exceed $500.” The FHA permits streamline refinancing loans with no credit check with the borrower has owned the property for | more...
May 22, 2012
Recently we posted about an FHA/HUD study that showed important benefits associated with housing counseling. According to HUD press release HUDNo.12-085,
May 21, 2012
FHA home loans aren’t just for new purchase mortgage transactions, there are also different types of refinancing loans available. FHA streamline refinancing, so named because of the reduced amount of paperwork and procedures associated with underwriting the refinancing, is one such option. FHA streamline loans come in two basic types–no-credit-check refinancing and credit qualifying refinancing loans. Borrowers may or may not be eligible for the no-credit-check version of the FHA streamline loan, depending on the circumstances. For borrowers who are applying for a credit qualifying FHA streamline loan, the FHA has a set of rules to be aware of–when applying for credit qualifying streamline refinances, the lender is required to do the following: –View and verify the borrower
May 16, 2012
A reader asks, “Is it true that FHA will not approve a loan if you have only been self-employed at your current business for 1 1/2 years? Applied for an FHA loan, was self-employed in a retail business for 5 years, sold my interest in the business and opened another retail business. My newest business has been open 1 1/2 years. Can I still get financed (credit score and debt to income ratio is excellent)?” The FHA loan rules are clear about minimum employment times in general–there are no minimum requirements for the amount of time spent on any one job. According to HUD 4155.1, Chapter , Section D; “To be eligible for a mortgage, FHA does not require a minimum length of time that a borrower must have held | more...
April 17, 2012
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
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
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 2, 2012
A reader asks, “I thought that it was announced recently that FHA insurance premiums were being decreased not increased?” Effective June 11, 2012, FHA Up Front Mortgage Insurance Premiums (UFMIP) will decrease for certain types of FHA Streamline Refinance Loans. According to the FHA Mortgagee Letter 12-4, “For all SF Forward Streamline Refinance transactions that are