Articles Tagged With: FHA Loan Requirements

September 14, 2015

HUD 4000.1 Becomes Effective Today

Today, Monday September 14, 2015, the new FHA Single Family Home Loan Policy Handbook takes effect. It’s called HUD 4000.1 and is now the reference for all FHA single family home loans. Up to now, certain parts of the handbook have been in effect, while other portions were printed but not effective until today’s launch date. A variety of policies have been superseded by the new guidebook, while others have been reproduced and ported over. The new Single Family Policy Handbook is broken down into five basic sections, and there is an FHA/HUD FAQ preview page that answers the most common questions about the new guide, certain changes, and restatements of existing policy. You can find that FAQ page at http://portal.hud.gov/hudportal/documents/huddoc?id=SFH_FAQ_Preview.pdf. It previews a variety of questions and their answers. | more...

Can I buy a manufactured home with an FHA loan?

September 11, 2015

Power Of Attorney Rules Under HUD 4000.1

By Joe Wallace

We’ve written a lot in recent days about the changes coming to FHA single family loan rules. Come September 14, 2015, a new HUD policy handbook on FHA single-family home loans goes into effect, incorporating updates, revisions and re-statements of existing policy. Under HUD 4000.1, there are a set of rules about the use of power of attorney in order to advance an FHA home loan. In our last blog post we discussed using electronic signatures and some basic power of attorney information. FHA loans can be made using a power of attorney under specific circumstances and according to certain procedures. What are those procedures? According to the rules in HUD 4000.1 (again, which become the official policy as of September 14 2015 unless otherwise stated in the new handbook) | more...

September 11, 2015

Signature Requirements For FHA Home Loans Under HUD 4000.1

By Joe Wallace

On September 14, 2015, the new HUD policy handbook on FHA single-family home loans goes into effect. There are plenty of changes, revisions and other statements of policy. Borrowers should know that certain changes have already gone into effect as of March, others won’t be effective until September 14. Once the handbook is launched officially, lenders will use it to refer to when in need of FHA loan policy or clarification of that policy. Consider one important issue for certain FHA loan applicants including military members and incapacitated borrowers–the use electronic signatures and/or of a Power Of Attorney in order to advance the FHA loan application. In HUD 4000.1, Chapter Two, Section A has a section titled, “Policy on Use of Electronic Signatures” which includes the following definition: “An Electronic | more...

September 9, 2015

Energy Efficient Mortgages And Updated FHA/HUD Rules

By Joe Wallace

In a recent blog post we discussed the pending release of HUD 4000.1, which is the new FHA single family home loan policy handbook. Among the changes and updates to take effect on September 14, 2015 when the handbook is launched, there are some guidelines about FHA Energy Efficient Mortgages (EEM) and the financing of non-EEM energy efficient upgrades/improvements. One area we didn’t cover in our last blog post about the EEM issue is the dollar amount limit for these upgrades. How much does the FHA allow the borrower to finance for such improvements? According to the FHA official site, which has a FAQ section on the most common questions about new rules and updates that will be part of HUD 4000.1, we learn the following about the dollar amount | more...

What happens to my FHA loan in a natural disaster?

September 8, 2015

What Can Hurt My Chances For FHA Loan Approval?

By Joe Wallace

There has been a lot written about how FHA home loans work, and what it takes to get approved for an FHA mortgage. Knowing what the lender expects from your loan application is one thing, but knowing what could hurt your chances for loan approval can be just as important. FICO scores are obviously one of the main initial concerns for the lender–you may find lenders who want FICO scores of 620 or higher. But those credit ratings aren’t the only thing that affects that first impression factor. Coming to the FHA loan process with any late payments on your credit history in the last 12 months is not recommended–anything less than a solid record of on-time payment on all financial obligations for the previous 12 months can hurt your | more...

September 4, 2015

FHA Loan Rules For Lenders: HUD 4000.1

By Joe Wallace

We’ve been reporting on a series of rule updates, amendments, and modifications to FHA single-family home loan policy scheduled to take effect on September 14, 2015. The new FHA Single Family Housing Handbook, also known as HUD 4000.1, contains all the rules and requirements for the FHA single family home loan program. The FHA/HUD official site has a Frequently Asked Questions list that addresses questions about a variety of aspects related to HUD 4000.1. Some of those questions involve FHA policy that pertains to borrowers, some pertain strictly to the lender. For example, lenders may wonder what the FHA policy is with regard to becoming or remaining a participating FHA lender. The FAQ section addresses that specific issue with a list of guidelines that include the following under a section | 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 2, 2015

FHA Mortgage Loan Interest Rate Trends: Slightly Higher

By Joe Wallace

Mortgage rates have ranged from unchanged to slightly higher this week, depending on the lender. There is a great deal of volatility present and part of the unchanged-to-slightly-higher activity we’ve seen this week is due to a possible rate hike by the Fed as early as September. Our sources report no clear indication as to whether September is the month when interest rates finally do get a hike by the Fed, but a jobs report due out on Friday could be a strong indicator as to which way the Fed might go in the coming month. Or it may not, depending on the contents of that report. “Wait and see” is the going advice seems to include the word “lock” a great deal when it comes to deciding whether to | more...

September 2, 2015

Some Frequently Asked Questions About The New FHA Loan Rules In HUD 4000.1

By Joe Wallace

On September 14, 2015, a new FHA single-family home loan policy handbook takes effect. It’s known as HUD 4000.1 and has several updates, changes and revisions that will take effect on the 14th. There have been some frequently asked questions about some of the details found in the new handbook–the FHA and HUD have published some answers to those questions in anticipation of the launch date for the new rule book. Here are some of those examples as printed on the FHA/HUD official site–one of the top questions? Whether referral fees will be permitted for the origination of FHA single family mortgage loans. The answer: “The lender, or any of the lenders employees, must not pay or receive, or permit any other party involved in an FHA-insured mortgage transaction to | more...

September 1, 2015

FHA Appraisal Questions: Peeling Paint And Paint Chipping

By Joe Wallace

FHA appraisals can be tricky to understand, depending on the outcome. For example, we get asked several times a year why an FHA appraiser required corrections on cracked or peeling paint on surfaces in a given home. The question is usually associated with the seeming cosmetic nature of these corrections. “Why,” the readers will ask, “is this a must-fix when it’s just some paint peeling off a windowsill or door frame?” The answer in this particular case has a lot to do with lead abatement. Depending on the age of the home, lead paint may or may not be present. The FHA appraisal process requires mandatory correction of peeling paint in order to reduce potential or actual lead hazards. It’s true that this could, in certain cases, be perceived as | more...