Articles Tagged With: FHA Loan Rules

October 5, 2021

Refinancing With An FHA Loan

Refinancing a mortgage can have pros and cons–knowing them both can help you make a more informed choice about the type of refinance option you choose. There are cash-out refinance loans, no-cash out, and for those with existing FHA mortgages, an FHA Streamline Refinance option that usually requires some type of benefit for the borrower. The pros and cons of a Streamline Refinance are fairly simple. In the “pro” column, you get something that benefits you in the form of a lower monthly payment or lower interest rate. Or you get out of an adjustable rate mortgage into a fixed-rate loan. In the “cons” column, the biggest drawback is–depending on the term of your new loan compared to the term of your original mortgage–a renewed loan term. If you had | more...

September 30, 2021

Before You Apply For An FHA Mortgage

By Joe Wallace

One of the biggest worries about buying a home? Having good enough credit to qualify. Do you know what it takes to raise your credit scores? Do you know what it takes to do so without paying a third party to do things on your behalf? Improving your credit scores ahead of an FHA mortgage loan application requires time, which is why financial advisors say it’s best to start early when planning and saving for your loan. Raising your credit scores means changing some basic habits associated with your payments, and getting into new habits can be an adjustment. But that is not the reason why it takes time to repair your credit. There are three basic issues you should be concerned with if you want to raise your score. | more...

September 22, 2021

Buying A Home: Your Down Payment

By Bruce Reichstein

What are the rules for FHA loan down payments? Some first-time homebuyers looking for a first home don’t realize you can’t just make the down payment by providing a check to your lender. There are strict rules about down payments–they must come from approved sources, they must be accompanied by any supporting documentation showing where the money comes from, etc. You, the borrower, are allowed to apply for a home loan and make a down payment on the house you make an offer on, but when you make that down payment you must document the sourcing of the money. As in, where did it come from? A cashed-in investment? That’s permitted under FHA loan rules. Did your down payment money come from a pink slip loan or a credit card | more...

September 20, 2021

HUD Announces Fair Housing Discrimination Case In Missouri

By Joe Wallace

If you have ever experienced discrimination while looking for a place to rent or buy as your primary residence, the Department of Housing and Urban Development wants to hear from you. Know your Fair Housing rights–you might not know when you’ll need to use them. The U.S. Department of Housing and Urban Development announced it is bringing charges of housing discrimination against conservators of the Felder Peter King Estate of Ward Protectee, the Estate, and the owners and property manager of duplex and triplex apartments in St. Charles, Missouri. The charges involve alleged housing discrimination “for allegedly refusing to rent an apartment to a prospective tenant because he has two children” Fair Housing Act laws do not permit landlords to deny applicants housing on the basis of family status including | more...

September 14, 2021

What’s In Your Mortgage?

By Joe Wallace

If you are new to the home buying process and are still house hunting, chances are good you might not be thinking about the ups and downs of your monthly mortgage payment. Some find it difficult to wade through home loan paperwork–there is a lot of print and fine print to digest in the best of times. What should you expect from your monthly mortgage bill and what do you do if you find errors or other issues on your monthly statements long after the loan has closed? The Consumer Financial Protection Bureau or CFPB advises consumers to carefully review their monthly mortgage statement. You will want to review the following sections for accuracy each month and to make sure there are no surprises: Customer service contact information the lender/servicer | more...

September 10, 2021

Your FHA Mortgage And Natural Disasters In 2021

By Bruce Reichstein

In the early days of the month of September, the FHA and HUD have made a number of announcements regarding disaster relief for portions of the country that have experienced fires, floods, and hurricanes. The agencies have, from the start of September to September 10, 2021, issued no fewer than seven announcements related to disaster relief. The first of those, dated September 1, 2021, includes the following related to disaster relief measures for those who are in presidentially declared federal disaster areas: Foreclosure relief – There is an automatic 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages beginning on the date of the major disaster declaration; Call the FHA Resource Center at 1-800-304-9320 for assistance FHA Rehab Loans — FHA Section 203(h) Rehabilitation Loans for disaster victims | more...

September 7, 2021

HUD Charges Florida Condo Owner’s Association With Fair Housing Act Violations

By Joe Wallace

There are many different forms of housing discrimination and such violations of federal law can happen at any stage of the housing process. That means you can find examples of violations of the Fair Housing Act in many other places besides the rental application process, the home loan application process, or even the refinance loan system. Did you know that housing discrimination cases are also found in areas such as the decisions of homeowner’s associations? That’s an area that doesn’t get discussed much in home loan circles, but violations of the Fair Housing Act have disastrous effects for those who seek housing. One good example of this is found in a September 2021 press release at the Department of Housing and Urban Development’s official site announcing charges against a condo | more...

August 25, 2021

Home Loan Advice From TransUnion

By Joe Wallace

Credit issues are among the biggest worries for many FHA loan applicants. Are you concerned that you aren’t fully prepared for a home loan application? If you tackle home loan issues early enough, you can get much closer to home loan approval. We regularly encourage readers to check their credit scores, read and monitor their credit reports, and be extra-vigilant about checking those credit reports all the way until the loan closes. One of the reasons why we do that? Your lender will not check your credit ONCE during the home loan process–your credit may be reviewed multiple times. And that is one very good reason to keep checking your credit reports, too. And while we’re talking about credit reports, why not take some advice from the very agencies responsible | more...

August 16, 2021

Rent Or Buy?

By Bruce Reichstein

Are you tired of paying rent, answering to landlords, and trying to maintain your living space while trying to be mindful of thin walls, sensitive neighbors, or other concerns associated with living in an apartment complex or other rental situations? One way to get closer to a decision is to use a rent vs. buy calculator or to run your own numbers using similar data. You’ll need a typical home price for the local area to calculate a mortgage payment (using principal, interest, property taxes and any applicable homeowners association fees) and compare it to how much you pay in rent, renter’s insurance, etc. You can use a rent vs. buy calculator to give yourself a good idea of how the basic numbers compare. But there are a few variables | more...

August 13, 2021

HUD and FHFA Announce Historic Partnership

By Joe Wallace

The Department of Housing and Urban Development has announced a major partnership with the Federal Housing Finance Agency (FHFA) to further the cause of fair housing and the enforcement of the federal law known as the Fair Housing Act. The FHFA is an important agency–it serves as the “primary regulator” for federal home loan banks. According to HUD.gov, FHFA has “broad statutory authority to supervise the regulated entities, including authority to monitor and gather information and conduct supervisory examinations, and enforce compliance with applicable law.” FHFA is responsible for oversight of: Fannie Mae Freddie Mac Federal Home Loan Banks The two agencies have agreed to a Memorandum of Understanding which has both HUD and FHFA working to “enhance” the enforcement of Fair Housing Act laws. This is intended to help | more...