Articles Tagged With: FHA Loans

August 13, 2021

HUD and FHFA Announce Historic Partnership

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...

June 30, 2021

The End Of National Homeownership Month

By Joe Wallace

The month of June is National Homeownership Month, and now that the month is over, the FHA and HUD are reminding potential FHA borrowers about government initiatives to encourage homeownership, prevent discrimination, and enable first-time homebuyers to consider purchasing a new house. The HUD official site announced at the end of June that there are more initiatives coming to improve free access to housing and further prosecute violations of the Fair Housing Act. According to a press release on HUD.gov, this process began in the first days of the Biden Administration with the newly-sworn-in President of the United States issuing a memorandum to the Department of Housing and Urban Development “to address discrimination in our housing market”. Since those earliest days, HUD has issued a proposed rule “on countering housing | more...

September 16, 2020

New FHA Home Loan Guidelines Announced

By Joe Wallace

The FHA and HUD have written permanent new COVID-19-related loan approval guidelines for those who need to apply for an FHA mortgage but come to the home loan application process with a previous mortgage forbearance. Ever since the coronavirus emergency came to the United States, the FHA and HUD have offered borrowers mortgage relief, and now that relief and measures similar to it won’t be a liability for those who need to apply for a new FHA mortgage. Other forms of coronavirus relief have been temporary but not this time. The new rules announced by the FHA are announced as a permanent modification to FHA loan rules that instruct the lender on how to approve new mortgage loan applications for borrowers who have applied for home loan forbearance in the | more...

September 15, 2020

Is A Property Eligible for an FHA Mortgage Loan If It Has Asbestos?

By Bruce Reichstein

Borrowers interested in purchasing older properties using an FHA insured mortgage could face several challenges depending on the nature of the property. For example, some buildings insulated or otherwise constructed with asbestos products could pose a health hazard. FHA rules include minimum property requirements for safety, which address situations like these. Is a property eligible for an FHA loan if it has asbestos in it?

May 30, 2019

FHA Loan Rules: Adding Repairs To The Sale Price Of The Home

By Joe Wallace

FHA loan rules for new purchase home loans include regulations on how the cost of repairs can be added to the sale price of the home to be purchased with an FHA mortgage. Th rules for this are found in HUD 4155.1, Chapter 2 Section Five, which states: “Repairs and improvements may be added to the sales price before calculating the mortgage amount when the • repairs and improvements are required by the appraiser as essential for property eligibility, and paid by the borrower, and • sales contract or addendum identifies the borrower as responsible for payment, and completion of the repairs.” FHA loan rules in this section state that, “Only repairs and improvements required by the appraiser may be included.” How does this all work? Chapter Five has a | more...

December 6, 2017

FHA Loan Rules For Income Verification: Part-Time Employment Income

By Joe Wallace

Is it possible to be approved for an FHA home loan using part-time employment income? There are indeed FHA loan rules for this type of income and instructions to the lender for how it is to be reviewed. HUD 4000.1, the FHA home loan handbook, states that all verifiable income must meet certain FHA minimum requirements including the ability to verify two years of employment (not necessarily with the same employer). One area some borrowers may be concerned with in this area is part-time income. Does the FHA allow a lender to verify and count as income the earnings from a part-time job? The rules for this are found on page 200 of HUD 4000.1, which begins by defining what the FHA considers part-time income: “Part-Time Employment refers to employment | more...

December 5, 2017

FHA Loans And Charge-Off Accounts

By Joe Wallace

Do you ever wonder about applying for an FHA Loan while having charge-off accounts in your credit history? Is it possible to get approved for an FHA home loan even though you have some negative credit information in your background? This is a question many ask, and the answer can be complicated depending on how old that negative credit data is, and whether or not it indicates an overall pattern of credit behavior. When you fill out an FHA loan application, your loan officer will need to examine your credit history, FICO scores, and other areas to determine your credit worthiness. Some borrowers come to the loan process with outstanding credit, others may have old issues or even currently disputed items on their credit reports that make them worry about | more...

December 4, 2017

FHA Home Loan Rules For Salary, Hourly, Part-Time Income

By Joe Wallace

Not every home loan applicant has the same type of employment, compensation, or schedule of compensation. That’s why FHA home loan rules in HUD 4000.1, the FHA single family home loan handbook, include different instructions to the lender for a diverse range of income sources. FHA Loan Rules For “Primary Income” HUD 4000.1 has sections for hourly income, salary, and part-time income. The section that includes these guidelines states that the lender is responsible for examining earnings from the home loan applicant’s “primary employment” and defines it as follows: “Primary Employment is the Borrowers principal employment, unless the income falls within a specific category identified below. Primary employment is generally full-time employment and may be either salaried or hourly.” “Current Pay” Versus “Projected Pay” According to HUD 4000.1, FHA loan | more...

November 24, 2017

Late or Missed Payments and FHA Loan Applications

By Joe Wallace

Is it possible to get an FHA loan application approved with late or missed payments on your credit report? It’s easy to get caught up in a struggle with common financial problems, and some of the simplest situations (late and missed payments on financial obligations) can have the biggest impact on a borrower’s credit rating or perceptions of creditworthiness. Having a handful “lates” and/or missed payments in your recent credit history might not affect your overall financial bottom line IF you’re not planning to seek new lines of credit. But if you are planning to apply for a home loan in the 12 months following late or missed payments, this situation becomes far more important. FHA loan applications, like other major lines of credit, are affected by anything that changes | more...

September 28, 2017

Can I Get a Single Family FHA Loan For A Multi-Unit Home?

By Joe Wallace

Can I get an FHA single family loan for a multi-unit home? Some borrowers get confused by the wording in the name of the FHA Single Family Home Loan program. It’s easy to assume that FHA single family mortgages are for one-bedroom houses, but that is definitely not the case. FHA loans are approved for homes that feature as many as four living units-a four unit property can definitely be financed with an FHA loan assuming the borrower is qualified to be approved for the mortgage. One-to-four unit properties purchased with FHA mortgages must be the primary residence of the borrower-you must agree to occupy the home purchased with an FHA mortgage loan usually within approximately two months after loan closing (unless the borrower makes other arrangements with the lender | more...