Articles Tagged With: FHA Loan News

September 9, 2015

HUD 4000.1 Frequently Asked Questions: EEM

On September 14, 2015, the new FHA Single Family Home Loan policy handbook goes into effect. There are changes to existing policy, clarifications of existing policy, and other useful information for lenders and borrowers alike. We’re examining some frequently asked questions about FHA loan rules–the answers to which will be official FHA policy when the new handbook launches on the 14th. One area that has a variety of questions concerns the FHA’s Energy Efficient Mortgage (EEM) program. Can a borrower finance energy efficient repairs without taking out an FHA EEM? What are the borrower’s options as described in HUD 4000.1? According to the FHA/HUD official site: “The borrower can finance the cost of eligible energy-related weatherization improvements in conjunction with: –Section 203(b) purchase or no cash-out refinance –Section 203(h) Mortgage | more...

September 8, 2015

HUD 4000.1 Single Family Home Loan Rules: Frequently Asked Questions

By Joe Wallace

A new policy guide for FHA single-family home loans goes into effect on September 14, 2015. It’s called HUD 4000.1 and will have all the FHA home loan policy guidance contained within it, with some new revisions, updates, and other material borrowers and lenders should know about. In order to help ease the transition to the new rules (where applicable) the FHA and HUD official site includes a Frequently Asked Questions (FAQ) section about the new rules. Some of those questions are specifically for the lender, others include guidelines that affect borrowers and lenders alike. Some of the “new” material in HUD 4000.1 is a restatement or re-emphasis of existing policy, other portions may be slightly modified or changed in more substantial ways, depending. Here’s one portion of the FAQ | more...

September 5, 2015

FHA Mortgage Loan Interest Rate Trends: Moving Lower

By Joe Wallace

It was a volatile week for mortgage loan rates in general. Many were looking to Friday as a big day for potential rate movement thanks to an anticipated jobs report. But when the Employment Situation report was released, it didn’t do much to rates as investors didn’t react to the data in ways that could have pushed the rates significantly higher or lower. And so we saw rates inching back down on Friday, with 30-year fixed rate conventional mortgages hovering between 4.0% and 3.875%, best execution. Rates had been closer to 4.0% for much of the week until Friday, though some lenders may have offered the low end of the current range depending on borrower qualifications. In all this week’s volatility and upward movement, FHA mortgage loan rates are still | more...

September 3, 2015

Common Questions About Policies In The New Single Family Housing Handbook, HUD 4000.1

By Joe Wallace

The FHA will launch the new FHA Single Family Home Loan Handbook, HUD 4000.1, on September 14th. There will be certain updates, changes, alterations and revisions of some FHA loan policy in the handbook, and the FHA/HUD have anticipated some frequently asked questions about existing or new policies contained in that handbook. In the days leading up to the launch, we’re covering some of those FAQ topics here. Some may apply to borrowers, some apply to lenders, and there are a variety of topics that may be relevant to both. One frequently asked question topic of concern to lenders is the question of how much, if any, work associated with an FHA loan can be contracted out to third parties. FHA loan rules that take effect on September 14, 2015 | more...

September 1, 2015

FHA Loan Rules: Changes Coming

By Joe Wallace

On September 14, 2015, a new FHA Single Family Home Loan rule book will become the official collection of rules and regulations for all FHA single family mortgage loans. Known as HUD Handbook 4000.1, this volume has been getting a variety of updates since it was made available online in May of 2015. There are a collection of changes, additions, and clarifications to FHA single family home loan policies including quality control, compliance, oversight, how to do business with the FHA and much more. At the time of this writing, some changes/updates have not been finished yet, such as the instructions on electronic delivery of FHA appraisals. There is currently an FHA Frequently Asked Questions .PDFthat addresses some of the changes that will go into effect on September 14, 2015 | more...

August 28, 2015

FHA Announces New Guidelines For Energy Efficient Upgrades

By Joe Wallace

The FHA has issued a press release announcing new guidelines for FHA borrowers who want to add energy-efficient upgrades to their homes. According to HUDNo.15-112, the announcement comes as part of the White House National Clean Energy Summit. The Obama Administration and FHA have new guidelines, “supporting borrowers seeking to make energy efficient improvements to their homes. In todays announcement, FHA expressed the intent to allow borrowers to use Single Family FHA financing for properties with existing Property Assessed Clean Energy (PACE) loans that meet certain conditions” according to the press release. These new tools will help homeowners make smart choices for their pocketbooks and for the environment, said HUD Secretary Julin Castro, quoted in the press release. Castro adds, HUD and the Obama Administration are proud to invest in | more...

August 27, 2015

FHA Mortgage Loan Interest Rate Trends: Creeping Higher

By Joe Wallace

You may have noticed we’ve been posting more this week on mortgage loan interest rate trends: overseas economic headlines from China and elsewhere have contributed to a volatile market environment that can definitely affect mortgage loan interest rates, so we’re posting more as the situation warrants. Mid-week, mortgage rates began creeping higher, but this time influenced by bond market activity–our sources point to a weak five-year Treasury auction that began putting upward pressure on mortgage loan rates in the afternoon on Wednesday, resulting in a range of best execution rates for 30-year fixed rate conventional mortgages between the previously reported 3.875% and 4.0%. Yes,we’re getting back into that old, familiar 4.0% zone, at least in the short term. FHA mortgage loan rates have not, best execution, budged from the 3.75% | more...

August 26, 2015

Choices To Consider For Your New FHA Home Loan

By Joe Wallace

Are you considering an FHA home loan? You’ve got plenty of options open to you, but sometimes it’s good to review those options to make sure you aren’t missing any potential avenues for savings or better opportunities. The choice of lenders is the first thing many borrowers think of when they consider their FHA loan options. It’s perfectly reasonable to consider using the bank you currently have to work with on an FHA loan, provided that company is a participating FHA lender. But what if your lender doesn’t offer FHA loans, or restricts their offerings to areas you aren’t currently interested in? Some borrowers want to finance condo loans, manufactured housing or mobile homes, etc. Does your lender offer loans for these purchases? Shopping around for a new lender is | more...

August 26, 2015

FHA Mortgage Rate Trends: Slightly Higher After Rough Stock Market Tuesday

By Joe Wallace

Mortgage loan rates weathered the stock market storm on Monday, but Tuesday’s market activity brought slightly higher rates. It’s been a tough time for those watching market activity hoping for a mortgage loan interest rate rally, but numbers are still sub-four percent (best execution) and we even saw reports of some lenders offering 30-year fixed rate conventional best execution rates as low as the FHA comfort zone rate (3.75%) on Monday. But rates edged higher on Tuesday, putting things more solidly into the previously reported 30-year fixed rate conventional mortgage loan rate of 3.875%-which is still prevalent at the time of this writing. Wednesday’s activity, at the time of this writing, hasn’t even emerged solidly, but it’s definitely going to be an interesting ride to the end of the week. | more...

August 22, 2015

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Mortgage rates closed out the week by moving lower–some sources are labeling the current rates as the lowest in over three months. Rates edged higher ahead of the release of Fed meeting minutes, but every day after that (for three days in a row) there has been some form of improvement. That three-day improvement helped bring 30-year fixed rate conventional mortgage loans back into a range of rates with 4.0% at the upper end of the range and 3.875% at the bottom end, best execution. FHA mortgage loan rates, best execution, haven’t shifted out of the 3.75% comfort zone, but chances are good that if the improvement continues we’ll see FHA rates follow suit and move into a range of numbers with 3.75% at the high end. Again, that’s assuming | more...