Articles Tagged With: FHA Loans

April 3, 2017

Mortgage Rate Trends: Mostly Unchanged?

The most current mortgage rate trends put us in a curious place at the moment-there are small changes, there is movement in rates, but our sources say much depends on the lender (both conventional and non-conventional) and how that particular financial institution is reacting to the current rate environment. As we’ll explore in a moment, FHA mortgage rates are in a range that is fairly atypical, at least in terms of the size of that range. Conventional rates are solidly in the bottom four percent zone, but there are factors this week that have the potential to influence that. Specifically, there are scheduled economic data releases this week including today’s (Monday) morning release of construction spending an a national manufacturing index. There’s a scheduled ADP employment report due out mid-week, | more...

FHA Loans And Natural Disasters: What You Should Know

March 31, 2017

FHA Appraisal Rules: When Corrections Are Required

By Joe Wallace

The FHA appraisal process is a typical part of purchasing a home. The appraisal establishes the fair market value of the property and also insures the home meets minimum FHA loan standards. These standards are know as MPS and MPRs-Minimum Property Standards and Minimum Property Requirements, respectively. While the FHA appraisal is not designed to catch any/all problems with a home, it is a tool for the lender to use to determine whether the property is acceptable or not. Whether you’re applying for a fixed rate mortgage or adjustable rate loan, purchasing a condo, town home, or manufactured home, each transaction is subject to the FHA appraisal process. What happens if the appraiser reviews the property only to find issues that do not meet FHA minimum standards? The answer is | more...

Can I get an FHA home loan if I owe back taxes?

March 30, 2017

Hazard Insurance For FHA Loans

By Joe Wallace

A reader got in touch recently with a question about hazard insurance and FHA mortgages. “We’re fixing to close on a home and they’re telling us that we have to have a shed that is on the lot covered with flood insurance. Is this correct and how much coverage do you have to have on a shed if you’re in a flood zone?” We get a large number of “Is this correct?” type questions. Some ask because they don’t realize that FHA loan rules aren’t the only ones that must be followed in a mortgage loan transaction. If the requirement is made by the lender, that lender’s standards would apply as long as the standards are in accordance with FHA loan guidelines, state law, and federal law. So the “Is | more...

March 30, 2017

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Since our last mortgage rate report, the overall trend has been downward in the short-term. Over the past several business days we have seen rates see-saw back and forth within a certain range, but at the time of this writing, rates are lower than when we reported on them last. 30-year fixed rate mortgages are at 4.25%, best execution. That’s in the middle of the range we last reported, with 4.375% at the upper end and 4.125% at the lower end. FHA loans are finally seeing a mortgage rate range falling back into the sub-four percent range; depending on the lender FHA mortgage rate numbers are reported between 3.75% and 4.25% best execution. Remember, “best execution” refers to rates offered to extremely well-qualified borrowers with outstanding FICO scores and other | more...

March 29, 2017

FHA Loans With A Non-Occupying Co-Borrower

By Bruce Reichstein

How does having a non-occupying co-borrower affect your FHA mortgage? What happens if one of the borrowers decides they want a change in their status as occupying or non-occupying? A reader asked us a question along these lines recently in the comments section: “I just purchased my home in November 2016 with my husband’s uncle as a co-borrower (not living in the property). Now he is getting a divorce and his soon-to-be ex-wife wants the househe basically just helped me qualify of put the down payment to purchase and pay the mortgage on my ownhe even signed hes rights to the title the day we signed for the property is I was told. I could put in that paper after about 6 months of having the property but now I | more...

March 28, 2017

FHA Refinance Loans For Lower Interest Rate Or Fixed Rates

By Joe Wallace

FHA refinance loans are an option for borrowers with existing FHA mortgages. But there are also options for non-FHA borrowers to refinance into FHA loans and get the benefits of having a lower interest rate or other options that come with FHA mortgages. Refinancing a home loan can have a variety of benefits depending on the financial needs and goals of the home owner. There are many reasons to refinance including the desire to get into a lower interest rate, to get out of an adjustable rate mortgage, and sometimes even to fund repairs and upgrades to the property. What does it mean to refinance a home loan? The answer depends on the type of transaction you need and the reasons you wish to refinance. For those who are looking | more...

March 27, 2017

FHA Loans and Co-Signers: A Reader Question

By Joe Wallace

A reader asked us a question about FHA loans and co-signers recently. “If I cosigned for a friend and he refinanced to get everything put in his name and me taken off, am I eligible for an FHA loan for my own home?” FHA mortgage loan requirements refer to co-signer arrangements and “contingent liabilities”. HUD 4000.1 says: “A Contingent Liability refers to a liability that may result in the obligation to repay only when a specific event occurs. For example, a contingent liability exists when an individual can be held responsible for the repayment of a debt if another legally obligated party defaults on the payment. Contingent liabilities may include Cosigner liabilities and liabilities resulting from a mortgage assumption without release of liability.” If the reader’s circumstances meet that definition | more...

March 24, 2017

FHA Loans For Non-Standard Properties

By Joe Wallace

In a recent blog post we discussed FHA loan requirements for properties that had non-residential zoning or other non-standard features that could make it subject to local zoning laws or other ordinances. But what about properties that may be zoned residential, have all the usual characteristics of a residential property or typical home, but are still considered non-standard? FHA mortgage loan rules in HUD 4000.1 address such conditions. On page 498, in the section where appraisal rules are located, there is a section titled Non-Standard House Styles, which includes the following: Non-Standard House Style refers to unique Properties in the market area, including log houses, earth sheltered housing, dome houses, houses with lower than normal ceiling heights, and other houses that in the Appraisers professional opinion, are unique. Note that | more...

March 23, 2017

FHA Loans After A Deed-In-Lieu

By Joe Wallace

How long does a borrower have to wait to apply for a new FHA mortgage following a deed-in-lieu? A reader asks us a question along those lines this week: “We went Chapter 13 about 8 years ago and paid the CH 13 off through the repayment plan. We also relinquished our home with a DIL of foreclosure. The house sat on the market for 7 years and finally sold last July. Three different banks have told us that we are not eligible yet to buy another home because we have to wait 2-3 years (depending on who we asked) after the home was transferred out of our name to the new owner. Please help!! How many years do we have to wait? Is it 2 or 3? Thank you!” FHA | more...

March 22, 2017

Refinancing Your FHA Mortgage

By Joe Wallace

There are many reasons why people refinance a home loan. Some do it to lower their interest rates, others may wish to cash in on the equity built up in the home over time. Still others might want to do upgrades or repairs to the home but don’t want to pay all the costs out-of-pocket. The reasons you refinance may vary, and for that reason there are a variety of choices when it comes time to consider an FHA refinance loan. Lower Interest Rates The FHA streamline refinance option lets borrowers apply for a loan using their original loan application data. There is no FHA requirement for a new credit check or appraisal. (Your lender may require one or both.) FHA streamline refinance loans must result in a tangible benefit | more...