Articles Tagged With: FHA Loan News

March 14, 2016

Mortgage Loan Interest Rate Trends: Pushing Higher

Mortgage loan interest rates moved higher last week–every day except one (Tuesday) saw small moves that, over time, have pushed rates closer to 4.0% (for 30-year fixed rate conventional mortgages) best-execution. 30 year fixed-rate mortgages ended the week on Friday at a best execution range between 3.75% and 3.875%. In some cases the move higher is reflected in closing costs rather than an actual rate change. But if the upward trend persists we could see this range disappear in favor of 3.87% or a new range with 3.875% at the low end. FHA mortgage rates have remained in their best execution comfort zone range between 3.25% and 3.5% but it is likely not long before this range goes away. FHA rates do take their time catching up to the changes | more...

March 10, 2016

Mortgage Rate Trends: Lower, Then Higher

By Joe Wallace

Mortgage rates dropped a bit on Tuesday, but edged higher on Wednesday ahead of Thursday’s scheduled announcement by the European Central Bank (ECB) which has potential to move rates depending on the contents of that announcement and investor reaction to it. We’ve seen rates shift up and down in the last week or so (mostly up); industry professionals used phrases on Wednesday like “highest since January” but those professionals are often quick to point out that the movement we’ve seen lately is within a specific range. That range has been fairly narrow so the moves higher and lower should be viewed in context. There doesn’t seem to be much short term danger of breaking out of that range, but breaking news and things like the European Central Bank announcement have | more...

March 7, 2016

Mortgage Rate Trends: Higher On Friday

By Joe Wallace

Mortgage loan interest rates moved higher on Friday after the much-anticipated Employment Situation Report came out with numbers better than some expected. When it comes to economic data releases, information that indicates an improving economy can be bad for mortgage loan interest rates depending on investor reaction to that data. Sometimes the markets ignore such data in favor of other breaking news or developments, so scheduled economic data releases like the employment report don’t always or consistently affect mortgage loan rates. This time, the data did influence rates, and we saw 30-year fixed rate conventional mortgages move out of a previous range between 3.625% and 3.75% (best execution) and more solidly into the 3.75% zone. FHA mortgage loan interest rates stayed in their current best-execution comfort zone range between 3.25% | more...

March 2, 2016

Mortgage Loan Interest Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan interest rates were sideways to slightly higher to end last week, and on Monday things kicked off with rates pushing slightly lower. But on Tuesday rates took a turn upward, pushing some closing costs higher but also breaking conventional loans out of their previous single-number best execution rate and into a new range. 30-year fixed rate conventional mortgages were reported in a best-execution range between 3.625% and 3.75%. If the upward trend persists that range could disappear in favor of a more solid 3.75%, but for now your experience may vary more among conventional lenders depending on your financial qualifications. FHA mortgage loan interest rates are still holding in a best-execution range between 3.25% and 3.5%, though that range also could be affected by more upward movement this | more...

February 23, 2016

HUD Announces Additional Funding For Housing Counseling Grants

By Joe Wallace

There are many times when, in the course of answering reader questions or discussing issues related to FHA loan prep, that we advise people to contact the FHA directly to request a referral to a HUD approved housing counselor. Housing counseling can be an important help for people–especially first time home buyers–who aren’t sure whether they qualify for an FHA mortgage or how to get started preparing for one. HUD has announced additional funding for housing counseling. According to a press release issued Friday February 19, 2016, “The U.S. Department of Housing and Urban Development (HUD) today announced it is making $40 million in grants available to support hundreds of housing counseling organizations across the country that assist families, including those buying their first home, struggling to locate affordable rental | more...

February 19, 2016

Mortgage Rate Trends: Ending The Week With A Move Lower

By Joe Wallace

After three consecutive business days of rates edging higher (hitting 14-day highs at one point), Thursday and Friday saw them moving back down, recovering some of the losses earlier in the week. Some industry pros were anticipating a possible slight move higher today due to bond market activity, but at the end of the trading day that did not pan out. That puts 30-year fixed rate conventional mortgage rates at a best execution 3.625% (depending on the lender), with FHA mortgage rates remaining in a range between 3.25% and 3.5% best execution. FHA rates will vary among participating lenders so your experience may vary. Also, best execution rates as seen here aren’t available to all borrowers or from all lenders. Your FICO score and other financial qualifications play a large | more...

February 18, 2016

Mortgage Loan Interest Rate Trends: Moving Higher

By Joe Wallace

This week mortgage loan interest rates have been pushing higher but we still see rates at incredible lows. 30-year fixed rate conventional mortgages had fallen to 3.5%, and this week at the time of this writing they had nudged back up to 3.625% best execution. Depending on the lender you may find that best execution rate in a range between 3.625% and 3.75%. FHA best execution rates are currently in a range between 3.25% and 3.5%, depending on the lender. Naturally your experience may vary and best execution rates seen here are not available to all borrowers or from all lenders. Your FICO scores, loan repayment history and other financial qualifications always play a big role in your access to the rates seen here. Industry professionals say the current lows | more...

February 17, 2016

FHA Loan Questions: Can Social Security Income Be Used To Qualify For A Mortgage?

By Joe Wallace

We’ve gotten several questions recently in the comments section about FHA home loans and using Social Security income to qualify. Many of the questions basically ask the same thing–does the FHA permit Social Security income to be used? Can a borrower qualify for an FHA mortgage when Social Security is a major portion of the income? The answer to the question “Do I qualify?” depends on the borrower’s other financial qualifications and an additional factor we’ll explore in a moment. The general answer is that the FHA does NOT view Social Security income as a liability for loan approval, but that income must meet certain standards and requirements. HUD 4000.1 instructs the lender on how to consider Social Security income, which falls under a heading the FHA terms “Disability Benefits”. | more...

February 10, 2016

HUD Settles Connecticut Fair Housing Discrimination Case

By Joe Wallace

The Department and Housing and Urban Development and a group of Connecticut landlords have reached a settlement in a housing discrimination case. According to a HUD press release, “The U.S. Department of Housing and Urban Development (HUD) today announced an agreement with a group of Connecticut landlords to resolve allegations they discriminated against families with children. HUD reached the agreement with New Britain-based Green New Britain, LLC, and PBJ Management, and their on-site property manager for allegedly refusing to rent a two-bedroom apartment to a single mother and her two young children.” Violations of Fair Housing Act laws can affect the home buying process at every level. In this case, the victims were renters, but plenty of people seek rental housing while searching for a new home to purchase. The | more...

February 10, 2016

Mortgage Rate Trends: Moving Even Lower

By Joe Wallace

Normally we don’t post on a near-daily basis about mortgage rate trends, but this week is different as we’re seeing rates moving lower than they have been in quite some time, and it’s unclear how long this trend could last. So we’re paying more attention to this situation until things settle down…. Mortgage rates moved even lower on Tuesday, putting many conventional mortgage best execution rates into the mid-three percent range. At the time of this writing, our sources believe that this is a short-term shift due to economic forces, pending statements from the Fed, and market activity. How long the downward movement continues remains to be seen, but some market watchers point out that when the headlines about the Fed start coming out over the next two days, it | more...