Articles Tagged With: FHA Loan News

June 2, 2016

HUD Announces Housing Counseling Committee

In many of our blog posts, we encourage borrowers to contact the FHA/HUD directly to seek a referral to a local, HUD-approved housing counselor. Pre-purchase counseling can be a very important part of the home loan application process, especially for borrowers who are new to the mortgage loan process. In some cases, as with FHA reverse mortgages/HECM loans, counseling is required as a condition of loan approval. Borrowers can contact the FHA/HUD directly to request housing counseling by calling 1-800 CALL FHA. And now, thanks to action by HUD in compliance with the Dodd-Frank Act of 2010, a new committee is looking into ways to expand and improve housing counseling. According to a press release at the HUD official site, on Wednesday June 1, 2016, “this advisory panel will help | more...

May 26, 2016

FHA Refinance Loans: What You Should Know Before Applying

By Joe Wallace

Not all refinance loans are created equal, and not all FHA refinance loans have the same terms and conditions. Did you know that FHA refinance loans will, depending on the participating lender, allow you to refinance an adjustable rate mortgage (ARM) into a fixed rate but also may permit you to go from one adjustable rate mortgage to a new ARM loan? Qualified borrowers have a variety of refinance options open to them when it comes to rates, loan term, and related concerns. There are many things to consider when refinancing with an FHA mortgage. For example, you do not have to use your existing lender to refinance. You may shop around for a new lender to refinance your mortgage loan with. You are also not required to have an | more...

May 19, 2016

FHA Proposes New Rule To Strengthen Reverse Mortgage Program

By Joe Wallace

The FHA has announced a new proposed rule intended to strengthen the Home Equity Conversion Mortgage (HECM) loan program. According to the FHA official site, the proposal would “codify several significant changes to FHAs Home Equity Conversion Mortgage program that were previously issued under the authority granted to HUD in the Housing and Economic Recovery Act of 2008 and the Reverse Mortgage Stabilization Act of 2013, and to make additional regulatory changes”. A press release at FHA.com states the new rule would, once approved, “make certain FHA-insured reverse mortgages remain a viable and sustainable resource for senior homeowners hoping to remain in their homes and age in place.” The agency has spent the last two years working on reforms intended to improve the FHA HECM program. “We’ve gone to great | more...

May 11, 2016

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Mortgage loan interest rates have improved this week, hitting new lows that put conventional mortgages into a new range of rates (best execution) that are now, on paper at least, overlapping the current best execution FHA mortgage rate range. This development has encouraged some industry professionals to begin speculating as to whether the new lows are the “floor” of the improvements or whether new lows could be reached (however short-term they may be). Time will tell whether that speculation has any merit, but rates could easily be pushed in the opposite direction depending on circumstances. 30-year fixed rate conventional mortgages are at the time of this writing in a best-execution range between 3.5% and 3.625%. That range is close to the FHA mortgage loan best execution range, which at the | more...

What you should know about FHA 203(h) Loans For Disaster Victims

May 5, 2016

HUD Launches Healthy Homes App

By Joe Wallace

If you have been looking for a new home to purchase with an FHA mortgage, or if you have recently purchased a home, you may be interested in the latest app from the Department of Housing and Urban Development. The Healthy Homes app was created to raise awareness of healthy homes issues including mold, asbestos, pest control, carbon monoxide, and more. According to a press release on the HUD official site, “…this Healthy Homes app offers a convenient tool for users to learn about common health and safety risks in the home. The app provides extensive content in clear, simple language so that users can quickly understand the potential hazards throughout a home. The app also helps residents who live in condominiums, single- family detached homes, townhouses, or in apartment | more...

May 5, 2016

FHA Loans and FICO Scores: Fact and Fiction

By Joe Wallace

Some potential FHA borrowers have questions about FHA loan credit score requirements. It’s easy to hear part of story when it comes to other people qualifying for an FHA mortgage and assume you’ve gotten all the facts, but the reality is that FHA loan rules and credit score requirements aren’t the whole picture. Lender standards also have a say in loan approval. That is why FHA loan rules, which specify a FICO score starting at 580 (for maximum financing), don’t have the final say. Lender standards also apply, and those standards (provided they are applied in accordance with federal law) will also factor into the application process. An FHA loan fact: FICO scores below 500 are not permitted. An FHA loan fiction: Anyone with a FICO score in the mid | more...

May 4, 2016

HUD brings Fair Housing Charges Against New York Co-Op

By Joe Wallace

The month of April may have been Fair Housing Month, but the work of the Department of Housing and Urban Development continues in the cause of ending housing discrimination. One of the latest press releases from HUD involves an investigation of alleged housing discrimination in New York. According to a press release on the HUD official site, “The U.S. Department of Housing and Urban Development (HUD) announced today that it is charging a White Plains, New York, co-op with housing discrimination for refusing to grant an exception to its policies that would allow a person with disabilities to buy a unit there. HUDs Office of Regional Counsel for New England, which has jurisdiction over the case, issued the Charge of Discrimination on April 26”. Such discrimination is not permitted under | more...

April 26, 2016

Mortgage Loan Interest Rate Trends: Higher Ahead of Fed Statement

By Joe Wallace

Last week on Friday, rates moved higher. The week ended with 30-year fixed rate mortgages in a higher range between 3.625% and 3.75%, and FHA rates in their own new range between 3.25% and 3.5%. On Monday, things stayed more or less the same, though market watchers say it could be a difficult week due to a variety of factors including the Fed Statement due to be released on Wednesday. (The Fed meets on Tuesday, but releases a statement the following day.) That statement has great potential to move rates. According to a report by Marketwatch.com, the Fed is expected to keep the option for a June interest rate hike on the table. In the past any talk of rate hikes is enough to bring knee-jerk reactions by investors over | more...

April 21, 2016

Mortgage Loan Interest Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan rates were on the rise on Wednesday. There have been scheduled economic data releases this week as well as a meeting of the European Central Bank (ECB), but market watchers point to bond activity as an important current factor for this week’s move higher. The ECB factor could still make a difference this week so it’s not safe to ignore overseas economic headlines when trying to make a lock or float decision in the short term. 30-year fixed rate conventional mortgages are between 3.625% and 3.75%, best execution. FHA mortgage loan rates are still in 3.25% territory but it’s not certain how long that best-execution rate will persist in an upward rate trend. Much could depend on how sharply rates move from here. As always, best execution rates | more...

April 19, 2016

HUD Files Discrimination Charges Against Kansas Landlord

By Joe Wallace

Fair Housing laws don’t just protect home loan applicants. They also protect renters and house/home hunters in the process of trying to find a place to live. You may not think that a housing discrimination case against a renter or potential renter has much to do with FHA loans, but consider the large number of people every year who must relocate due to employment or education needs and it’s clear that even for those who haven’t committed to an FHA mortgage yet, fair housing issues can affect your journey to a new place to live. That’s one reason why we report on cases like the recent HUD charges brought against a Kansas landlord. According to a press release on the FHA/HUD official site, ” U.S. Department of Housing and Urban | more...