Articles Tagged With: FHA Loan News

August 8, 2024

Is There A Time Limit On FHA Loan Applications?

When FHA loan applicants work on getting a mortgage and closing the deal, sometimes things don’t always go as smoothly or as quickly as planned. In cases where there is a delay for some reason, do FHA loan rules include built-in time limits on how long a borrower and seller can go between loan approval and closing? While a casual glance at the FHA loan rules may not turn up a specific rule that says “FHA loans must be closed in X number of days,” there are several requirements that add up to the need to get an FHA loan accomplished in a timely manner. One is the length of your interest rate lock-in period. Once it expires, you and the lender may need to renegotiate the rate, so it’s | more...

August 11, 2023

FHA Loan Rules For Borrowers With Non-Traditional Credit

By Joe Wallace

FHA loans have flexible standards regarding the kinds of credit history a borrower brings to the loan application process. By that, we mean that applicants who have non-traditional or even insufficient credit history may be able to get a loan approved depending on the circumstances. Getting a loan with insufficient credit history is harder, but borrowers can call the FHA at 1-800 CALL FHA to get a referral to a local housing counselor who can provide advice. Applying For An FHA Loan With Non-Traditional Credit Borrowers with non-traditional credit or insufficient credit history may be asked to provide additional documentation and paperwork as part of this process. You could be required to furnish tax documents, utility bills, and/or any other recurring payment that could help establish credit history. FHA loan | more...

June 26, 2023

Is It Possible To Have Multiple FHA Loans?

By Joe Wallace

Many people want to know if they can apply for more than one FHA loan at a time. In some cases this is because the potential borrower wants to buy a home they don’t intend to use as their primary residence. In others, the issue might be that a larger home is needed due to a change in family size. Are these reasons for having more than one FHA loan valid under FHA loan rules? What FHA Loan Rules Say FHA loan rules for the single-family home loan program in the FHA Single-Family Handbook generally permit FHA loans only for owner-occupiers. The short answer to the question, “How many FHA loans can I have at the same time?” is ONE. The home must be occupied by at least one person | more...

June 25, 2019

HUD Brings Fair Housing Act Charges Against Minnesota Landlords

By Joe Wallace

Housing discrimination can affect potential borrowers and renters at any stage in the house-hunting or home seeking process. Discrimination in rental housing can negatively affect the attempt to find and buy a home in cases where the victim needs to rent a unit while still looking for a house to purchase with a mortgage loan. Housing discrimination of any kind whether in renting or buying is prohibited by federal law. The Department of Housing and Urban Development recently announced charges against Minneapolis landlords in a Fair Housing Act case involving a rental unit denied to tenants over reasonable accommodation issues. The HUD official site published a press release alleging that the owners “refused to allow a single mother to live with an assistance animal, a cat, for her oldest daughter, | more...

May 30, 2019

FHA Loan Rules: Adding Repairs To The Sale Price Of The Home

By Joe Wallace

FHA loan rules for new purchase home loans include regulations on how the cost of repairs can be added to the sale price of the home to be purchased with an FHA mortgage. Th rules for this are found in HUD 4155.1, Chapter 2 Section Five, which states: “Repairs and improvements may be added to the sales price before calculating the mortgage amount when the • repairs and improvements are required by the appraiser as essential for property eligibility, and paid by the borrower, and • sales contract or addendum identifies the borrower as responsible for payment, and completion of the repairs.” FHA loan rules in this section state that, “Only repairs and improvements required by the appraiser may be included.” How does this all work? Chapter Five has a | more...

February 11, 2019

How To Find The Right Mortgage

By Bruce Reichstein

First-time home buyers often aren’t sure what to look for when it comes to choosing the right mortgage loan. You can have a real estate agent help you with MLS listings to find the right type of home, you can compare participating FHA lenders to see which ones offer the best mortgage loan interest rates, and you can select from a variety of options with the mortgage itself. Choose The Right Mortgage Loan For Your Needs The family that needs to relocate to a new area for a job move does not have the same immediate needs as someone interested in buying a fixer-upper home with an rehabilitation loan. Your needs and financial goals will play an important part in the type of mortgage loan you choose. FHA Home Loans | more...

January 7, 2019

FHA Loans And The 2019 Government Shutdown

By Bruce Reichstein

At the time of this writing, the partial government shutdown continues and we are seeing more headlines about the services affected, including certain kinds of home loans. Specifically, home loan applicants seeking USDA mortgages are locked out of the process for the duration of the shutdown according to a variety of sources. Some potential USDA borrowers were caught in the middle of their transactions when the government shut down, and the media reports stories of those left more or less in limbo until the current situation is resolved. So what does this mean for FHA mortgage loans? FHA Mortgage Loans Are Still Available During The Government Shutdown Forward mortgages will continue to be serviced during the shutdown as previously reported here and elsewhere. But there are some important things you | more...

February 23, 2018

FHA Announces Foreclosure Avoidance Help For Federal Disaster Areas

By Joe Wallace

The FHA has announced extended foreclosure relief measures for those in qualifying federal disaster areas. According to a press release on the FHA official site, new guidance for participating FHA lenders will apply for those affected by a wide range of natural disasters including: Louisiana (Hurricane Harvey) DR-4345 Texas (Hurricane Harvey) DR-4332 Florida (Hurricane Irma) DR-4337 Georgia (Hurricane Irma) DR-4338 Puerto Rico (Hurricane Irma) DR-4336 South Carolina (Hurricane Irma) DR-4346 Virgin Islands (Hurricane Irma) DR-4335 Puerto Rico (Hurricane Maria) DR-4339 Virgin Islands (Hurricane Maria) DR-4340 California (Wildfires) DR-4344 or California (Wildfires, Flooding, Mud Flows, Debris Flows) FEMA-DR-4353 There is a lengthy description of some of the new program changes (which we will cover in another blog post) but one of the most important developments included in the FHA announcement has | more...

January 26, 2018

HUD Announces Major Review Of Manufactured Housing Rules

By Joe Wallace

The Department of Housing and Urban Development has issued a press release announcing a major review of manufactured housing rules. According to the HUD official site, the agency is in the public comment period prior to “a top-to-bottom review of its manufactured housing rules as part of a broader effort to identify regulations that may be ineffective, overly burdensome, or excessively costly given the critical need for affordable housing.” For the next 30 days, the agency says it will accept public comments “to identify existing or planned manufactured housing regulatory actions to assess their actual and potential compliance costs and whether those costs are justified against the backdrop of the nation’s shortage of affordable housing”. General changes in manufactured housing regulations may not seem to have anything to do with | more...

December 8, 2017

Higher FHA Loan Limits For 2018

By Bruce Reichstein

The FHA has announced FHA loan limits for 2018, and the new numbers mean good news for those looking to buy a home in the new year. The “national conforming loan limit” for 2018 is set at $453,100, up from last year’s limit of $424,100 (see below). The higher limit means more potential borrowing power for qualified FHA loan applicants. According to the announcement on the FHA official site, there are higher limits for 2018. The Federal Housing Administration calculates “forward mortgage limits based on the median house prices in accordance with the National Housing Act. FHA’s Single Family forward mortgage limits are set by Metropolitan Statistical Area (MSA) and county and are published periodically.” The FHA sets loan limits “at or between the low cost area and high cost | more...