Articles Tagged With: FHA Loan Rules

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 A variety of policies have been superseded by the new guidebook, while others have been reproduced and ported over.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 10, 2015

Need Help Preparing For An FHA Mortgage Loan? HUD Resources By State

By Joe Wallace

We give out a lot of advice about the planning stages of your FHA home loan. Did you know it’s best to begin planning at least a year ahead of time for a new home loan? Doing so gives you time to save up or continue to save for a down payment, related fees and expenses, pull your credit reports and other tasks that should happen long before you are ready to fill out your application. One area we strongly encourage buyers to examine is housing counseling. Pre-purchase housing counseling can help new FHA loan applicants navigate the entire process more confidently and better prepared. But where can a potential FHA borrower turn to get this housing counseling? The best thing to do is to contact the FHA directly for | more...

September 10, 2015

New FHA Single Family Loan Policy Handbook HUD 4000.1: Superseded Policies

By Joe Wallace

At the time of this writing there are five days until the launch of the new FHA Single Family Home Loan policy book, HUD 4000.1. We have written about certain policies and procedures that will take effect on September 14, 2015, the official launch date for HUD 4000.1. But there are some changes to FHA loan rules that coincide with the launch of the new handbook that are important to know–some FHA mortgagee letters have been superseded in their entirety. The FHA/HUD official site has a comprehensive list of those mortgagee letters, which includes the following chart: As you can see, there is a range of mortgagee letters that will be replaced, from 1994 all the way up to the year 2014. Not ALL mortgagee letters in that year/date range | more...

September 9, 2015

HUD 4000.1 Frequently Asked Questions: EEM

By Joe Wallace

On September 14, 2015, the new FHA Single Family Home Loan policy handbook goes into effect. There are changes to existing policy, clarifications of existing policy, and other useful information for lenders and borrowers alike. We’re examining some frequently asked questions about FHA loan rules–the answers to which will be official FHA policy when the new handbook launches on the 14th. One area that has a variety of questions concerns the FHA’s Energy Efficient Mortgage (EEM) program. Can a borrower finance energy efficient repairs without taking out an FHA EEM? What are the borrower’s options as described in HUD 4000.1? According to the FHA/HUD official site: “The borrower can finance the cost of eligible energy-related weatherization improvements in conjunction with: –Section 203(b) purchase or no cash-out refinance –Section 203(h) Mortgage | 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...

When Is An FHA Loan Better Than A Conventional Loan?

September 3, 2015

FHA Refinance Loans: When Is A New Appraisal and/or Credit Check Required?

By Joe Wallace

Borrowers who want to refinance may wonder which FHA refinance loans offer no credit check or new appraisal. Are such loans possible? The answer may depend on your lender and other factors, but let’s see what options are open: For starters, non-FHA loans refinanced under the FHA single family home loan program will always require a new appraisal and credit check. This is because the only refinance option for non-FHA mortgages (aside from reverse mortgages offered under the FHA program, which also require new appraisals and credit documentation) is the cash-out refinance option or the no-cash-out equivalent. Which leaves only FHA-to-FHA Interest Rate Reduction Refinance loans (IRRRLs) with a possible option to apply with no credit check or appraisal. But there’s a caveat with these loans–the FHA loan program does | 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

FHA Loan Questions: Late Payments Prior To Loan Application Time

By Joe Wallace

We get plenty of credit-related questions about FHA home loans and refinance loans in our comments section. One recent question that came in has to do with late payments on financial obligations prior to filling out an FHA mortgage application. The reader mentioned having late payments in the last year in addition to having a credit score in the mid-500s. “Can this affect my chances for FHA loan approval?” is the most common of questions, and naturally the answer is dependent on circumstances. In general, FHA loan applications are best turned in when the borrower has a solid 12 months of on-time payments for all financial obligations. Borrowers with otherwise outstanding credit and/or “compensating factors” may find a lender more forgiving if there is an issue with credit history, but | more...