Articles Tagged With: FHA Loan Requirements

Can I buy a manufactured home with an FHA loan?

May 8, 2015

FHA Loans With Co-Signers: A Reader Question

A reader asks, “when can a co-signer be released from the mortgage note when the borrower can show capacity to pay, can the co-signer get out within 6 mo or 12 months showing borrower has the income to pay mortgage?” The problem with answering questions like this is fairly simple–we don’t know the language of the purchase contract. Much depends on what is contained in the purchase agreement and depending on whether or not the reader has already signed legally binding paperwork in connection with the FHA mortgage loan–that makes a big difference in the answer to the question. For example, could a borrower and co-signer who have not legally committed to the sale negotiate with the lender to have such “ability to pay” language included in the mortgage loan | more...

May 8, 2015

FHA Refinance Loans And FHA Case Numbers: A Reader Question

By Joe Wallace

A reader asks, “I bought my home in 2009. Its a FHA mortgage. I do not qualify to refinance because paperwork and case number were assigned after may 1 2009. I need to know what I can do to refinance with a FHA mortgage I need to Lower my payments, smaller interest rate shorten time on contract I feel like im stuck. There has to be a way to get this done.” It’s not clear why this reader believes an FHA home loan isn’t eligible to be refinanced because of the date of the case number–qualified borrowers are free to apply for FHA refinancing for their home loans regardless of the date of the case number, provided a minimum of six months and six mortgage payments have been made. That’s | more...

May 7, 2015

FHA Loans And The Credit Review

By Joe Wallace

We get many questions about FHA loan applications–questions that involve credit, FICO scores, FHA loan standards, and more. Many borrowers aren’t sure about whether they have FICO scores high enough to qualify for an FHA mortgage, and others may wonder if having a history of late or missed payments could hurt their chances at an FHA home loan. In general, borrowers are encouraged to wait to apply for an FHA mortgage until they have 12 full months of on-time payments on all financial obligations. This brings a potential home loan borrower closer to FHA loan approval; anything less can put your loan application in danger. Why? It’s good to know the FHA stance on these issues, and the FHA loan rulebook does spell out the reason why such a premium | more...

May 4, 2015

FHA Loan Rules For Re-Selling: A Reader Question

By Joe Wallace

A reader asks, “I purchased a manufactured home 10 months ago. I tried to sell it to a buyer whose lender told her that I as a seller have to won the home for at least a year before a buyer to use FHA for their loan. Is this a fact?” FHA loan rules do place a partial restriction on how the buyer can sell his or her property that has been purchased with an FHA mortgage loan. This restriction, known as the FHA’s “anti-flipping rule” requires borrowers to wait a minimum of 90 days before selling the property. FHA mortgagee letter 2014-06 spells out these rules, which were amended for a time with a waiver to the anti-flipping rule, but since those days are over a review of the | more...

May 1, 2015

FHA Loans For First-Time Home Buyers

By Joe Wallace

A reader asks, “I have a condo that was FHA approved when I bought it 10 years ago, they decide to not continue to participate any more about 5 years ago, all I was able to do was refinance at a lower rate thru streamlining with no money out. I had filed bankruptcy a little over 2 years before I bought it with a FHA loan at 5.5.” “I got my credit score up and have a rate under 4% now by refinancing it thru streamline which the balance can be assumed by someone if they qualify but would have to find the balance else where, what I want to know is that I want to sell my condo and buy a house possibly thru FHA can I buy it | more...

April 30, 2015

“Second” FHA Appraisals: A Reader Question

By Joe Wallace

A reader asks, “I am in the process of selling my home. There was an appraisal done and it came in low. We negotiated with the buyers on that appraisal. Now I am learning they got another appraisal that was higher so they could get a higher loan amount for closing costs but will not provide the appraisal to us.” “By the way, this is FHA and apparently the lender never filed the first appraisal with the FHA. Additionally, the lender has now changed their story stating they paid for the first appraisal and that the buyer paid for the 2nd appraisal and therefore they dont have to give it to us for re-negotiations. This cant be legal? And surely I have recourse? We are set to close tomorrow, and | more...

April 27, 2015

FHA Loan Appraisals and Lender Standards: A Reader Question

By Joe Wallace

A reader asks, “I have a client that is FHA approved, and has had their appraisal done but can not locate the well. Well and septic have been tested and municipality has signed off on both stating they were ok with the way they are.” “My clients lender says no way, must meet the 50′ set back, other lenders say we can do it as long as you have the letter from the township My buyers dont want to start over as they are set to close on the house they are selling in 2 weeks. How can one bank say something different from another while following FHA guidelines?” There are several unanswered questions to go along with this reader question–are the lenders interpreting local or state building code or | more...

April 24, 2015

FHA Home Loans and Tax Lien Repayment Plans: A Reader Question

By Joe Wallace

A reader asks, “I have a payment plan on a tax lien from 2009 which I have been paying on time for a few years. Other than that, my credit is perfect. I am wondering if this would be okay for an FHA loan. I have records from IRS showing that this is being paid and can present them as well.” This is an important question. FHA loan rules do not permit borrowers who are delinquent on federal debts to apply for an FHA home loan until that delinquency has been addressed. But what about situations like the reader question, where there is no delinquency, but the federal debt still exists? FHA loan rules that govern the tax lien issue can be found in HUD 4155.1, Chapter Four, Section A. | more...

April 23, 2015

FHA Loan Income Rules: A Reader Question

By Joe Wallace

A reader asks, “Where I can find the income limits on FHA loans, if customer is buying for the first time?” This reader question implies two misconceptions about FHA home loans. The first is that there is a preference, advantage, or other special treatment given to first time FHA loan applicants or first-time home buyers. This is not true insofar as the FHA single-family home loan program itself is concerned. It’s true that there may be state or local programs in the borrower’s zip area that might be available to help first time home buyers. It may also be true that some financial institutions offer first time home buyer programs. But the FHA loan process itself shows no preference, gives no special benefits to a borrower who has never applied | more...

April 22, 2015

FHA Loans For Mixed Use Properties: A Reader Question

By Joe Wallace

Many of our reader questions posted in the comments section here come from loan applicants and home buyers, sometimes even sellers, all wanting to know more about certain aspects of the FHA loan process. But one recent question comes from a lender, who asks: “Customer had bankruptcy chapter 7- discharged 1-2012. Wants to but a home that has a convience store attached to it. Can I do the loan with 5% down and count the income from the store?” FHA loan rules for mixed-use property appraisals address this issue. HUD 4150.2 Chapter Three states: “A qualified property must be predominantly residential in use and appearance. Any nonresidential use of the property must be subordinate to its residential use, character and appearance. A property, any portion of which is designed or | more...