Articles Tagged With: FHA Loan News

February 12, 2015

FHA Loan Minimum Property Requirements: Tripping Hazards On The Property

A reader asks, “What are regulations on trip hazards? I have a listing where the tree roots lifted up the driveway quite a bit. The tree has been removed, but roots and buckled blacktop drive still there.” FHA minimum property requirements don’t cover each and every situation where corrections might need to be made to the property in order for it to meet standards–in many cases the FHA minimum requirement includes a general rule that may be reinforced by state and/or local building code. According to the FHA/HUD official site, “HUD requires that each property insured with an FHA mortgage meet one of the nationally recognized building codes or a State or local building code based on a nationally recognized building code. In areas where such State or local codes | more...

February 11, 2015

FHA Loan Reader Questions: Buying A Home “Under False Pretenses”?

By Joe Wallace

A reader asks, “I was trying to get answers on what to do if you have brought an house under false pretenses… There’s alot of issues with the house that wasn’t disclosed in the property disclosure form.” FHA home loans require an appraisal as a condition of loan approval. The appraisal establishes the fair market value of the home, but it also insures the home for sale meets FHA minimum property requirements. However, passing the FHA appraisal process is not a stamp of approval from the FHA nor is it a guarantee that a home is free from defects. Borrowers are strongly encouraged by the FHA and by real estate experts to pay for a home inspection prior to committing to the sale of a property. The home inspection, when | more...

February 6, 2015

FHA Loan Forbearance: A Reader Question

By Joe Wallace

A reader asks, “Got fha loan for our home on Dec 2011. We have been doing fine until early 2014, we got a little behind. We have never let any payment be more than 30 days late, but we had some late payments to our bank on this loan. My wife is out of work after this month. Do we have any forbearance options?” In situations like these it’s extremely important to being talking with the lender right away. FHA loans do have forbearance options for qualified borrowers, but many of a borrower’s options are most plentiful before the mortgage becomes delinquent. Working with your lender at the first sign of trouble with the mortgage loan is a very important move towards foreclosure avoidance. According to the FHA official site: | more...

February 4, 2015

FHA Mortgage Rate Trends

By Joe Wallace

FHA mortgage loan interest rates have been holding at best execution levels of 3.25% for quite some time, and that’s despite ups and downs for 30-year fixed rate conventional mortgages. Late last week we saw rates for 30-year fixed rate conventional mortgages head, best executionwise, close to 3.5% for the most qualified borrowers. Overseas financial developments have helped keep rates as low as they’ve been–it’s a good idea to pay attention to the situation in Greece and news of the European Central Bank. These are factors that can affect rates in the short term depending on investor reaction to breaking news. On Monday of this week, those rates held steady more or less in spite of some lenders repricing higher, and on Tuesday it looked like the reversal of a | more...

January 29, 2015

FHA Refinance Loans: Another Chapter 13 Question

By Joe Wallace

We have gotten a large volume of reader questions about refinancing a home while in Chapter 13 bankruptcy. Here’s the latest: “We have current mortgage, never behind on payment. We like to refinance our home mortgage, but we are discharge from Chapter 13 before couple months! How long we have to wait and are we are qualified? Thank you in advance!” Let’s examine what the FHA official site has to say about FHA loans and bankruptcy. It’s important to note that all situations vary including the rules at one financial institution compared to another. Some lenders may be willing to work with certain borrowers in circumstances that others would not–just because the FHA loan rulebook has provisions for borrowers to apply for loans while the applicant is dealing with a bankruptcy or the discharge | more...

January 29, 2015

Lower MIP On FHA Loans: A Reader Question

By Joe Wallace

A reader asks, “What’s the lead time on case cancellation requests? With new case number requests?” The reader is asking about FHA loan case number cancellation requests made possible for a limited time to help qualified FHA borrowers take advantage of the new, lower annual Mortgage Insurance Premiums announced earlier this month by the FHA and HUD. We wrote about this in a blog post titled, FHA Mortgage Premium Cuts Begin Today. That article includes the following information: “On Thursday, January 8, 2014, the FHA and HUD issued a press release announcing a cut to the FHA’s required annual mortgage insurance premiums, also known as MIP. According to the press release, “As the nation’s housing market continues to improve, U.S. Housing and Urban Development Secretary Julián Castro today announced the | more...

January 27, 2015

FHA MIP Cuts: Who Is Affected? A Reader Question

By Joe Wallace

A reader asks, “I am a homeowner with a FHA loan. I bought the house last year, I wanted to know if this will also benefit me or is just for you new perspective home owners? Thanks…” This reader question is in reference to the FHA mortgage insurance premium cut that took effect on Monday January 26, 2015. According to an FHA press release, “the Federal Housing Administration (FHA) will reduce the annual premiums new borrowers will pay by half of a percent. This action is projected to save more than two million FHA homeowners an average of $900 annually and spur 250,000 new homebuyers to purchase their first home over the next three years.” We wrote about this recently when the cuts took effect. But who is affected by | more...

January 26, 2015

FHA Mortgage Insurance Premium Cuts Begin Today

By Joe Wallace

On Thursday, January 8, 2014, the FHA and HUD issued a press release announcing a cut to the FHA’s required annual mortgage insurance premiums, also known as MIP. According to the press release, “As the nation’s housing market continues to improve, U.S. Housing and Urban Development Secretary Julián Castro today announced the Federal Housing Administration (FHA) will reduce the annual premiums new borrowers will pay by half of a percent. This action is projected to save more than two million FHA homeowners an average of $900 annually and spur 250,000 new homebuyers to purchase their first home over the next three years.” As President Barack Obama pointed out in one speech, the amount saved thanks to the FHA’s MIP cut could be used, in some cases, to make a mortgage | more...

January 23, 2015

FHA Mortgage Rate Trends

By Joe Wallace

Mortgage rates this week were mixed and there has been some volatility that had potential to move the numbers higher–Thursday, for example, was a big day with a quantitative easing program announced by the European Central Bank. That had big potential to move rates depending on investor reaction to that announcement, but on Thursday mortgage loan rates in general held steady. This issue still has the power to affect mortgage loan rates in the U.S. depending on conditions and is a factor worth paying attention to. In general, 30-year fixed rate conventional mortgages are still considered low, even though the best execution rates have moved away from the 3.5% territory we saw earlier for the most qualified borrowers and back into a range that tops out, best execution, at 3.75% | more...

January 22, 2015

FHA Loans Following Chapter 13 Bankruptcy: A Reader Question

By Joe Wallace

A reader asks, “i filed ch 13 in 2012 and my case has been discharged as of Dec 2014. do i have to wait 2 years from that discharge date or the filing date to qualify for FHA?” FHA loan rules for applying for a new home loan in the wake of a bankruptcy state that there is a minimum seasoning period or waiting period required after the discharge of the bankruptcy. For Chapter 13 bankruptcy, the FHA official site (www.fha.gov) has a Frequently Asked Questions page about applying for a new FHA loan post-bankruptcy, which states the following: “A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA mortgage provided the lender documents that one year of the payout period under the bankruptcy has elapsed and | more...