Articles Tagged With: FHA Loan News

March 19, 2015

FHA Loan Credit Requirements For Non-Occupying Co-Borrowers

A reader asks, “Hi i am trying to get a mortgage but have good credit but low income. I was wondering if someone could help me be a non-occupying borrower with bad credit but excellent income a job help, basically use his income not his credit.” FHA loan rules are very specific about non-occupying co-borrowers. This is because there are many different types of circumstances where a borrower may have an occupying non-borrower, or an occupying co-borrower, or in the case of this reader question, a non-occupying co-borrower. Each of these circumstances is viewed slightly differently for several reasons, and there are circumstances that may apply to one type of borrower that don’t apply to another. For example, a spouse who occupies the home but does not borrow; this situation | more...

March 18, 2015

FHA Mortgage Rate Trends: Large One-Day Drop In Best Execution Rates

By Joe Wallace

On Wednesday mortgage loan rates in general saw a significant drop in the wake of a highly anticipated Fed announcement, which included words some have taken to mean there will be no interest rate increase in the month of April. Some sources are labeling today’s downward move as “the best day of 2015” based on that drop; 30-year fixed rate conventional loan best execution rates are for some extremely well-qualified borrowers coming in at 3.75%, best execution. Borrowers who “floated” into the Fed announcement today were, by all accounts, given a good payoff. That said, those who floated are now being encouraged by many industry professionals to lock, as there is no guarantee that today’s sharp improvement in best execution rates will continue tomorrow or the next day. The lenders | more...

March 13, 2015

Are You Ready For An FHA Loan Application?

By Joe Wallace

Are you ready for an FHA home loan application? If you’ve been considering your options, it’s a very good idea to create a list of to-do items in the preparation time leading up to your application. The first thing to do is to make sure you’re ready for your loan by checking your credit reports and FICO scores. Your repayment history and FICO score play a big part in whether you get approved or denied for the loan. Hand in hand with those factors is the amount of debt you have getting paid every month versus how much income you have. Reducing the amount of debt–especially credit cards and related types of debt–can help your application’s chances. Some borrowers don’t think about saving up for their home loan beyond making | more...

March 11, 2015

FHA Mortgage Rate Trends: Improving

By Joe Wallace

Last Friday, a strong jobs report put a lot of pressure on mortgage loan rates in general, pushing 30-year fixed rate conventional loan interest rates out of the three percent zone and into 4.0% best execution territory. That’s a large step higher for rates that have managed to hang on to the mid to upper three percent range (best execution) for quite some time. FHA mortgage loan rates, which can be slow to follow the changes in conventional loan rate moves depending on circumstances, also pushed into higher territory, hitting 3.75% for the first time in a long while. This move higher is still better than some rates we’ve seen hit in the last two years but in recent memory this is as close to the 4.0% range as FHA | more...

March 7, 2015

FHA Loan Rules: Employment Verification

By Joe Wallace

When you want to apply for an FHA home loan, the lender will give you forms to complete that include requests for information on your past and current employment. Employment history is an important part of the FHA loan application review process and the lender is required to verify your employment by contacting your place of work. But what do FHA loan rules specifically require? HUD 4155.1 has the guidelines for lenders. Chapter One Section B of HUD 4155.1 instructs your lender: “The lender is required to verify the applicant’s employment history for the previous two years. However, direct verification is not required if all of the following conditions are met: • the current employer confirms a two-year employment history (this may include a pay stub indicating a hiring date) | more...

March 2, 2015

FHA Loans, Missed Payments, and Your Mortgage

By Joe Wallace

FHA borrowers who get in trouble on their FHA mortgages are urged to be proactive about their situation in order to avoid defaulting on the FHA loan and risking foreclosure. The FHA has help available starting with advice for borrowers in this situation–you can find this advice on the FHA official site at http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure . But the FHA has also issued guidance to lenders and loan officers telling financial institutions what the government expects the lender to do in cases where the borrower becomes delinquent on the FHA mortgage loan. Case in point, the recent FHA mortgagee letter titled, “Revised Notification to Homeowners of Availability of Housing Counseling Services”. According to this mortgagee letter, dated February 4 2015, “Mortgagees must provide delinquent borrowers with a notice describing the availability of housing | more...

February 28, 2015

FHA Loans and Co-Signers: A Reader Question

By Joe Wallace

A reader asks, “My husband and I are trying to assume this fha loan. My debt to income ratio is too high. My mother in law will gladly co sign for us.” “My husband will not be on the loan, just me. Is it possible for my mother in law to co sign with just me on the loan? I’ve called (LENDER NAME DELETED) (whom own the loan) I have gotten two different answers. One lady said yes and now the other today is saying no. I’m waiting on (LENDER NAME DELETED) to call back. I thought as long as it was blood, marriage, or law related they could “ Co-signers and non-occupying co-borrowers are permitted on FHA loans. Depending on the circumstances a non-occupying co-borrower or co-signer situation may | more...

February 26, 2015

FHA Mortgage Rate News: Improvements As Rates Recover

By Joe Wallace

FHA mortgage loan rates had been pushed earlier out of a comfort zone that, best execution, had them at or near 3.25% depending on the lender. After February 14, it seems that mortgage rates in general had entered a time of upward pressure, and FHA loans moved out of their long-held comfort zone and into range of best execution rates between 3.25% and 3.5%. In the last couple of days, mortgage rates have taken a stronger move for the better, with 30-year fixed rate mortgages creeping back from the best execution cliff of 4.0%–rates didn’t actually climb quite that high for 30-year conventional fixed loans, but they approached 3.875% bests execution, which is as close to the 4.0% zone as we’ve seen in some time. But with mortgage rates in | more...

February 24, 2015

FHA/HUD Issues More Guidance On Equal Access Rules

By Joe Wallace

We’ve seen a number of headlines recently on the FHA and HUD’s position on Equal Access laws. Now there is additional guidance coming on the heels of what’s already been released. On Monday, February 23 2015 the FHA and HUD issued a new press release announcing further clarification of its Equal Access rules which prohibit discrimination based on sexual identity, gender identity and related factors. According to HUDNo.15-023, “The U.S. Department of Housing and Urban Development (HUD) issued guidance to better serve LGBT Americans seeking to obtain a home loan and transgender individuals seeking access to homeless shelters. These two sets of guidance will help clarify the Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Rule (Equal Access Rule), which was published in 2012. | more...

February 12, 2015

FHA Mortgage Loan Interest Rate Trends: Moving Higher

By Joe Wallace

FHA mortgage rates have been trending higher this week, with pressure on rates bringing 30-year fixed rate conventional mortgages up slightly higher every day in February so far. Bond markets and overseas economic news about the European Central Bank have contributed to those rates moving higher, but all the while, FHA mortgage loan rates have remained in a best-execution comfort zone of 3.25%. But that changed on Tuesday after significant upward pressure that changed conventional rates finally pushed FHA mortgage loan rates higher–now found at the time of this writing in a range between 3.25% and 3.5% for the most qualified FHA loan applicants. Best execution rates are not available to all borrowers or from all lenders. Your FICO scores, loan repayment history and other factors will determine your access | more...