Articles Tagged With: FHA Loan Rules

What you should know about FHA 203(h) Loans For Disaster Victims

December 19, 2014

FHA Loan Limits: A Reader Question

A reader asks, “I only want about 40,000. What kind of credit score would I need? Thanks so much.” In many cases borrowers will typically find that lenders require average credit scores of around 620 or so (or better), but no two lenders operate exactly the same–you may find higher or lower FICO score requirements depending on the lender, the type of home loan, etc. This reader question seems to imply that the borrower wants to get a loan for a specific amount, but it’s important to understand how FHA loan amounts are determined. The FHA loan amount is set based on the sale price or the property, or the appraised value–whichever is lower. The loan amount can also be affected by adding things to the loan such as an | more...

December 18, 2014

FHA “Personal Loans”? A Reader Question

By Joe Wallace

A reader asks, “My credit scores a 654 i have a car loan at 22000 where i pay 328 a month and have a debt collector who i’ve already paid but still shows on my credit report. Is there any way I can get a 5000 dollar loan?” It sounds like this reader is asking whether the FHA loan program permits a borrower to apply for a personal loan guaranteed by the FHA. Or perhaps the reader is asking if it’s possible to apply for an FHA home loan for an amount far smaller than it would take to purchase a home. In either case, the answer is no. FHA loan rules do not permit the FHA single family home loan program to be used as a personal loan–FHA guaranteed | more...

December 16, 2014

FHA Loan Income Requirements: A Reader Question

By Joe Wallace

A reader asks, “I would like to know how can I get a FHA Loan if my husband and me just make 40.000 a year. I went on bankruptcy in Oct 2011. Right now I have no debts, no car loans. I need an answer as soon as possible, we are living place to place, we paid rent on time,but living with more people is difficult. Also we have $10.000 for a downpayment.” FHA loan rules have no specific minimum income requirements for loan approval. FICO scores are used to approve the loan, as is your employment history and the likelihood of your current employment to continue. One of the most important things related to the borrower’s income isn’t the amount of that income, but rather how the income is | more...

December 15, 2014

FHA HECM Loan Changes: A Reader Question

By Joe Wallace

A reader asks, “I have been trying for a few years now to obtain a FHA reverse mortgage for my condo in Staten Island…We were told that “spot” reverse mortgages are no longer available. Since our condo association will not consider having our entire complex become an FHA approved complex..and it seems every other complex in Staten Island feels the same way, we cannot access our equity which we need to augment our retirement income. Do the recent changes in FHA policy offer us any hope?” The FHA changed the rules for HECM loans in 2014 to include sweeping alterations of the requirements–there are new rules for payments depending on the nature of the loan (fixed or adjustable rate HECM loans), mandatory financial obligations and mortgage insurance. However, the changes | more...

December 9, 2014

FHA Loan Credit Issues: A Reader Question On Disputed Accounts

By Joe Wallace

A reader asks, “I would like to know how to get an FHA loan, I had a Bankruptcy discharged in Aug. 2010. This is my problem I got a credit card to improve my credit score. I was paying faithfully, then another card company that I already had Two that company. I was paying faithfully on those accounts also.” “Well when the credit company took over that account I didn’t realize I now had 3 accounts with that bank. Another reason I didn’t know was, I moved and one statement was going to the old address. When the two statements came . So I would go onto the computer and pay my 2 accounts..My problem is on my credit report shows 30,60,30,60, 90 days late. What can I do to | more...

December 8, 2014

FHA Loan FICO Score Mininums and Late Payments: A Reader Question

By Joe Wallace

A reader asks, “We were living in Florida when the housing market crashed. I was in school and my husband was working. 2 mos after starting school my husband lost his job so we had no other option then to file bankruptcy and we tried 9 times to get our mortgage modified with [lender name deleted] and they NEVER helped us! after eight mos of trying to get a modification, we were served foreclosure papers. Our Bankruptcy was discharged July 2010 and our Foreclosure was Dec 2010…” “My credit score is 593 and my husbands is 585. There have been a couple CC payments that have been late but other than that we managed to pay everything on time, including our rent. Will we be able to qualify for Loan…Please | more...

December 4, 2014

FHA Mortgage Loan Rate Trends

By Joe Wallace

The Thanksgiving holiday interrupted several days worth of falling mortgage loan rates. We saw gains over six business days (holiday weekend falling in between some of those days) with best execution interest rates moving back into the high three percent zone for 30-year fixed rate conventional mortgage rates. FHA rates benefited as well,–FHA mortgage rates fell (best execution) to 3.25%, and while in many cases we see FHA loan interest rates having a hard time breaking out of a comfort zone at the same time conventional rates change, December 1st saw FHA mortgage loan rates drop from the previous business day’s best execution rate of 3.5%, but would eventually settle into a range of numbers. FHA mortgage loan rates moved into that range of best execution rates following some upward | more...

November 28, 2014

Fair Housing Act Violations: A Case in Puerto Rico

By Joe Wallace

A press release on the FHA/HUD official site reveals that a Puerto Rico condo association discriminated against a person with disabilities in violation of federal fair housing laws. According to HUDNo.14-142, “The U.S. Department of Housing and Urban Development (HUD) announced today it has ordered Castillo Condominium Association, in San Juan, Puerto Rico, to pay $20,000 in damages plus a $16,000 civil penalty after finding that the association violated the Fair Housing Act when it refused to allow a resident with disabilities to keep his emotional support animal.” Support animals and/or service animals have a different status than what might be considered an “ordinary pet”. According to the FHA/HUD official site, “The Fair Housing Act makes it unlawful to refuse to make reasonable accommodations in policies or practices when such | more...

November 26, 2014

Holiday Spending and FHA Loans: What To Consider

By Joe Wallace

This week, shoppers brace themselves–and their credit cards–for Black Friday and the official start of the holiday shopping season. If you are in the planning stages for an FHA home loan or a refinance loan, there may be some considerations to make when it comes to your holiday spending. At least where your credit cards are concerned. The holiday shopping season is probably the time of year when it’s most tempting to apply for a new credit card account or even multiple accounts. But opening new lines of credit when you’re just about to apply for a new home loan or refinance loan is a bad idea. Your debt-to-income ratio can suffer when new lines of credit are opened, and a lender may need to consider both the used and | more...

November 24, 2014

FHA Condo Approval Rules: A Reader Question

By Joe Wallace

A reader got in touch recently with a lengthy question, asking: “Our HOA board is considering revising our declaration dated 4/06/84. Our building was built in 1960 as an 11 story apartment building and transformed into a condo building in 1984. There are 50 units in the building– approximately 27 percent are rental properties. Our building has FHA certification. As units are sold, investors buy them as rental units.” “We would like to reverse this trend by revising our declaration to state that as units are sold, they are sold as owner occupied units. The revised declaration would provide that owners could obtain a temporary rental permit from the HOA board enabling the owner to rent two years within a five year period. Also new owners must occupy their unit | more...