Articles Tagged With: FHA Loan Rules

July 2, 2015

Mortgage Loan Closing: How Difficult Is It?

Every home loan is different. When you apply for an FHA mortgage, you may experience a variety of circumstances along the way that can affect how simple or difficult it is to get to your closing date. Borrowers who prepare ahead of time, who get pre-purchase counseling, and learn from the mistakes of their fellow house-hunters can make the entire process simpler and easier to deal with. That’s one reason why the FHA has a list of resources on its official site (www.fha.gov) aimed at advising new borrowers, but the FHA and HUD are not the only government agencies that offer such assistance. The Consumer Financial Protection Bureau (CFPB) also has a wealth of resources aimed at helping consumers in general, but they also have a special section for house | more...

July 2, 2015

FHA Appraisals: Vapor Barrier Issues

By Joe Wallace

A recent reader question that arrived in our comments section involves an FHA appraisal that required a vapor barrier on all exposed dirt. The reader complained that the FHA appraiser didn’t explain how to correct the issue and asked us to define how it can be done. One objection to the FHA appraisal in this case was that the reader was under the impression that the FHA had removed the vapor barrier requirement from its list of minimum property requirements. While we aren’t experts on vapor barriers or how they are to be carried out, we can address the issue of being required to carry out a correction or repair that is not specifically required by FHA minimum property standards. It’s very important to know that FHA minimums are not | more...

July 1, 2015

FHA Loan Reader Questions: “Is This True?”

By Joe Wallace

One very common type of FHA loan question we get in the comments section here involves situations where the applicant was told by a lender or another party that “X, Y, or Z is required to get FHA loan approval”. The question we get from readers in these cases is simply, “Is this true?” Answering such questions is tricky because the answer depends on whether the lender is speaking about the policies of a particular financial institution or the policies of the FHA loan program itself. Borrowers should remember that FHA loan rules spell out a set of requirements, minimum standards, and policies for the FHA loan program in general, but those things are not the only rules that will govern an FHA home loan or refinance loan transaction. Did | more...

July 1, 2015

FHA Refinance Loans: House Prices On The Rise

By Joe Wallace

House prices are on the rise and could even be approaching highs not seen since 2006 according to some financial reports. According to the Black Knight Financial Services Home Price Index, prices are well under 10% away from their 2006 peaks. According to the Black Knight official site, “The Black Knight HPI combines the companys extensive property and loan-level databases to produce a repeat sales analysis of home prices as of their transaction dates every month for each of more than 18,500 U.S. ZIP codes. The Black Knight HPI represents the price of non-distressed sales by taking into account price discounts for REO and short sales.” According to the report, Texas, Tennessee, Colorado, and New York all hit new house price peaks in April 2015, and Washington leads the U.S. | more...

June 29, 2015

FHA Loans: An Overview of the Process

By Joe Wallace

One of the most common questions about FHA loans involves the basic processes of the loan. What ARE the steps towards getting an FHA mortgage? Assuming that we’re discussing what happens once you have found a suitable home, as opposed to the planning stages for a loan (budgeting, researching, etc) the FHA loan rules in HUD 4155.2 actually have a list of steps that happen at each stage of the loan application process. These steps are found in Chapter One, Section A of HUD 4155.2. The process begins with the borrower getting in touch with the participating FHA lender and the lender determining if the borrower’s loan needs are eligible for FHA mortgage loan insurance. Step Two is described as, “The borrower, along with the lenders representative, completes the loan | more...

June 29, 2015

FHA & HUD On The Recent Supreme Court Fair Housing Decision

By Joe Wallace

There has rightfully been a great deal of attention on last Friday’s ruling by the Supreme Court on marriage equality. But last week’s Supreme Court actions also included other important decisions, one of which affects those seeking a place to live and the right to do so under the Fair Housing Act. On Thursday, June 25 2015, the FHA and HUD official site was updated to include a press statement from HUD about the court’s decision in a Texas housing discrimination case: “Today, the U.S. Supreme Court reaffirmed an important legal principle in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc. The Justices found that the Fair Housing Act not only prohibits intentional acts of discrimination, but also housing practices that have an unjustified discriminatory | more...

June 26, 2015

FHA Loan Occupancy Rules

By Bruce Reichstein

Some borrowers get in touch with us with questions about FHA loan occupancy rules. One of the most common questions about FHA loan occupancy requirements involves those who must travel for business, or who find themselves having to relocate to another state because of job issues. Are borrowers who spend less time at home than a typical home owner considered in violation of FHA mortgage loan occupancy rules? For example, the homeowner who now works and lives in another state but commutes home for the weekend? FHA loan rules require a borrower to take ownership of the home at closing time and use the home as the primary residence for at least one year after the closing date. The borrower can’t vacate the home and rent it out during this | more...

June 26, 2015

FHA Streamline Refinance Loans: Appraisal Required?

By Joe Wallace

When you examine your streamline refinance options, it’s easy to get confused over the difference between lender requirements and FHA refinance loan standards. FHA Streamline Refinance Loans are intended for borrowers with existing FHA mortgages and can be done on any type of existing FHA loan–fixed rate, adjustable rate, graduated payment mortgage, etc. Some borrowers want to know if there is a new credit check or appraisal required. There is no short answer to this because while FHA loan rules do not demand a new appraisal, the lender may require one. The credit check issue also depends on a variety of circumstances including the type of refinance transaction (fixed rate to adjustable rate, for example) and how long the borrower has owned the property. FHA loan rule spell out some | more...

June 25, 2015

FHA Mortgage Rate Trends: Sideways

By Joe Wallace

After small-but-steady improvement recently, rates opened the week with a jump higher that wiped out the previous improvements, and by Wednesday mortgage loan rates have been wavering back and forth, more or less holding the same position when all is said and done. 30-year fixed rate conventional mortgages are up for 4.125% best execution, and we’re still seeing FHA mortgage loan rates holding a best execution comfort zone of 3.75%. As we always point out, best execution rates are offered to those applicants with the most ideal financial qualifications. Your own experience will depend greatly on FICO scores, your credit history and other factors. FHA mortgage loan rates can vary more among participating lenders than their 30-year fixed rate conventional counterparts. FHA rates have been in the 3.75% best execution | more...

June 25, 2015

FHA Home Loan Rules and Lender Requirements

By Joe Wallace

We get lots of questions about the specifics of FHA home loans. Some of those questions involve areas that may not be covered specifically by FHA loan rules. Among the questions we got recently, there were some about the loan rules that cover a borrower’s employment status. “I got laid off from my contractor job and rehired elsewhere. The lender is asking for another paystub from the current employer in order to move forward with the loan. Is this true?” FHA loan rules may or may not have a say in such cases, but when the lender informs the borrower that X, Y, or Z might be required in order to move forward with the loan, your loan officer may be referring to the lender’s standards and not necessarily FHA | more...