Articles Tagged With: FHA Loan

January 9, 2017

Mortgage Rate Trends: Lower Overall

Since our last report we’ve seen a mortgage rate recovery of sorts, but it is still too early to label it on overall short-term downward trend. Last week rates moved lower in short-term ways that give some market watchers reason to use the term “correction” in their reports, but Friday’s Employment Situation Report did cause a bit of an upward turn for mortgage loan interest rates. The key to Friday’s move is that the changes weren’t terribly surprising to those paying close attention, and even with a modest readjustment, we’re still looking at numbers we haven’t really since since the election, as you’ll see below. 30-year fixed rate conventional mortgages moved as low as a best-execution 4.125%, but 4.25% is also available from some lenders, so we have a best | more...

January 6, 2017

Down Payment: FHA Loan Rules

By Joe Wallace

How much do you know about FHA loan down payment requirements? If you’re feeling in the dark about this as a new house hunter, don’t feel bad-we take plenty of reader questions in the comments section about FHA home loans, but from time to time we get them not just from home buyers or sellers, but also from loan officers and others in the industry. There was a reader question this week from an “industry person” about down payments and the FHA loan rules associated with them. We like to point out in times like these that we are not affiliated with the FHA, HUD, or any other government entity, but we do where and know how to find the answers to questions like the following: “What about two brothersone | more...

January 4, 2017

FHA Loan Co-Signers & Co-Borrowers

By Joe Wallace

A reader asked us a question this week in the comments section about FHA loan co-signer and/or co-borrower rules. “If there is more than one person on the loan application, does it matter what percentage each person owns?” There are a number of variables that need to be addressed to properly answer this question. For example, does the reader refer to a co-signer, or a co-borrower? Are the applicants legally married? If so, do they reside in a community property state? FHA loan co-signer rules in HUD 4000.1 don’t specify a percentage of ownership for co-signers. The rules simply state the co-signer is “liable for the debt”. FHA loan rules for eligibility of co-borrowers (occupying and non-occupying) don’t mention a percentage of ownership, either: “To be eligible, all occupying and | more...

December 29, 2016

Mortgage Loan Interest Rates: Lower

By Joe Wallace

Mortgage loan interest rates clawed back some of their losses on Wednesday, dropping down to 14-day lows and creeping back from the mid four-percent zone a bit. The gains came after bond market activity favorable to mortgage loan rates. Professional market watchers say we’re likely not to see any significant, decisive movement until well after the New Year’s Eve holiday, but the improvements on Wednesday are encouraging to some. There are plenty of factors that could still put upward pressure on mortgage rates including economic uncertainty related to the American political climate. “Wait and see” is the phrase most used when contemplating this as a spoiler on mortgage rates. Borrowers unsure of whether to lock in a mortgage rate commitment with a lender or not should discuss the current rate | more...

December 28, 2016

Buying HUD Homes With FHA Loans

By Joe Wallace

On the FHA/HUD official site, there is a section covering the purchase of HUD homes, including tips on which FHA home loan might be best for these transactions. According to the Department of Housing and Urban Development official site, “A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim”. These homes are offered for sale via HUD. Who is qualified to buy one of these properties? According to HUD.gov, “Anyone who has the required cash or can qualify for a loan (subject to certain restrictions) may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people | more...

December 27, 2016

Mortgage Rate Trends: Slightly Lower Ahead of Holidays

By Joe Wallace

Mortgage rate trends ahead of the extended weekend included some very minor improvements-welcome changes from the recent steady upward momentum we’ve seen post-election. But these changes aren’t enough to push best execution rates lower, it’s going to take either many days of sustained-but-small improvement or some more significant changes in the short term to revise rates lower. Borrowers affected by the recent incremental moves lower will likely see the changes reflected in closing costs. Just ahead of the holiday weekend, 30-year fixed rate conventional mortgages were reported in a best execution range between 4.25% and 4.5%. That’s quite a long spread, but it is important to keep in mind that the most competitive lenders (and a small number of them, too) are the ones at the lowest end of the | more...

December 21, 2016

FHA Anti-Flipping Rules

By Joe Wallace

In general, FHA requirements and regulations discourage the practice of flipping, which is defined as buying a home (distressed or otherwise) and quickly reselling it at an inflated price. According to the FHA loan single-family rule book, “The eligibility of a Property for a Mortgage insured by FHA is determined by the time that has elapsed between the date the seller has acquired title to the Property and the date of execution of the sales contract that will result in the FHA-insured Mortgage.” HUD 4000.1 defines the sellers date of acquisition as, “the date the seller acquired legal ownership of that Property. FHA defines the resale date as the date of execution of the sales contract by all parties intending to finance the Property with an FHA-insured Mortgage”. Homes sold | more...

December 21, 2016

FHA Short Refi Loans in 2017?

By Joe Wallace

HUD 4000.1 is the FHA single family home loan rule book. Whether you are purchasing a suburban home, a condo unit, or a mobile home with an FHA mortgage, the rules in HUD 4000.1 pertain to your FHA loan transaction. This set of rules also includes guidance on FHA refinancing loans including a program known as an FHA short refi loan, also called “Refinance of Borrowers in Negative Equity Positions Program”. This program, according to HUD 4000.1, “allows the Mortgagee to refinance a non FHA-insured Mortgage in which the Borrower is in a negative equity position”. That’s commonly known as being “underwater” on a home loan. An FHA short refi requires the lender to “write off at least 10 percent of the unpaid principal balance”. The borrower must be in | more...

December 20, 2016

Fair Housing Case Settlement In Nevada

By Joe Wallace

As the FHA/HUD official site says, “Disability is the most common basis of complaint filed with HUD and its partner agencies. Last year alone, HUD considered more than 4,500 disability-related complaints or nearly 55 percent of all fair housing complaints.” That is one reason why we report Fair Housing cases here-these complaints are not limited to rental markets, and even if they were, such discrimination affects a potential borrower’s house hunting prospects. If you are forced to relocate because of job or family issues and need to purchase a home while renting in the meantime, your entire experience may be affected negatively by housing discrimination. And sometimes the only way to stop continued illegal practices is for the injured party to file a report and have the matter investigated by | more...

December 19, 2016

FICO Scores And FHA Loans

By Joe Wallace

Your credit report and FICO scores are very important factors when it comes to getting an FHA loan approved. Do you know what your FICO score is and how it affects your home loan? The U.S. government’s consumer watchdog agency, the Consumer Financial Protection Bureau, has a definition of FICO scores on its’ official site, which includes the following: “A FICO score is a particular brand of credit score. A credit score is a number that is used to predict how likely you are to pay back a loan on time. Credit scores are used by companies to make decisions such as whether to offer you a mortgage or a credit card. They are also used to determine the interest rate you receive on a loan or credit card, and | more...