Articles Tagged With: FHA Mortgage Loans

September 21, 2017

Do I Need The Consent Of My Non-Borrowing Spouse To Get An FHA Mortgage?

Do I need the consent of my non-borrowing spouse to get an FHA mortgage? That’s an important question, and the answer varies depending on the laws of your state. The rules governing this issue are found in the FHA loan handbook, HUD 4000.1. The section answering this question is short, but the implications will vary, again, depending on state law. But why? FHA home loans and other major lines of credit are often affected by state laws, including what are known as “community property laws”. If you reside in a community property state, that means that state law dictates how the debts incurred in a legal marriage are viewed legally. In community property states, spouses share the financial responsibility for all debts incurred for the duration of the legal marriage. | more...

September 18, 2017

What Is A New One-Time Close Construction FHA Home Loan Compared To Existing Construction Loans?

By Bruce Reichstein

What is an FHA new construction loan compared to existing construction loans? Essentially the difference involves whether the home has been occupied or not since the time it was completed. FHA loan rules governing how such properties are classified can be found in HUD 4000.1, the FHA Loan Handbook. Existing Construction Existing construction loans are for structures that have been occupied at least once since the time they were completed. Such properties may be very new, others may be very old. “Existing Construction” loan procedures are less complex than for New Construction loans because the permits, escrows, inspections and other aspects of building a home have already been satisfied before the borrower comes along to buy the property. New Construction This type of property has never been occupied by an | more...

September 13, 2017

HUD Announces Disaster Relief For Puerto Rico

By Bruce Reichstein

In the wake of Hurricane Harvey and Hurricane Irma, the Department of Housing and Urban Development has made announcements about disaster relief as certain parts of the country become federally-declared disaster areas. The latest of these is a press release from HUD on relief efforts to Puerto Rico. According to a press release on the FHA/HUD official site, “HUD will speed federal disaster assistance to the Commonwealth of Puerto Rico and provide support to homeowners and low-income renters forced from their homes due to Hurricane Irma.” That assistance includes a 90-day moratorium on foreclosure action for FHA mortgages, the availability of FHA rehab loans for disaster victims, and more. According to HUD, these options can help those in the affected areas recover, rebuild, or purchase a new home to replace | more...

September 11, 2017

Can I Use A Power Of Attorney At FHA Loan Closing Time?

By Bruce Reichstein

Can I use a power of attorney when it comes time to close my FHA loan? That may not be a common question per se, but for those this issue affects, the answer can affect how the entire closing process is handled. There are many reasons why a power of attorney might be needed to close a legally binding financial transaction such as an FHA mortgage. A borrower may be called away for an urgent work or family need, military duty could prevent the borrower from being physically present, injury or illness, etc. FHA loan rules address the power of attorney issue in HUD 4000.1, which begins on page 345 by stating: “A Borrower may designate an attorney-in-fact to use a Power of Attorney (POA) to sign documents on their | more...

Refinancing a Second Home With An FHA Mortgage Loan

September 7, 2017

Can I Buy A Condo Unit With An FHA Mortgage?

By Bruce Reichstein

Can I buy a condo unit with an FHA mortgage? Some people have a misconception about FHA mortgages, thinking they are intended for a certain income bracket, a certain type of home, or that it is possible to earn “too much income” to qualify for an FHA loan. None of those things are true. You cannot earn too much money to qualify, and you can explore options to buy a variety of property types up to and including condominium units. Yes, FHA condo loans are possible, but they have some unique requirements (see the section on the FHA “condo project approval” list) and certain property types may be listed as condos even if they are “detached dwellings”. The requirements for these units, sometimes known as “site condos” vary slightly from | more...

September 6, 2017

Can Military Members Apply For FHA Mortgages?

By Joe Wallace

Can military members apply for FHA mortgages? There are plenty of reasons why a currently serving military member, retiree, or veteran might want to explore FHA mortgage loan options. One reason? Borrowers who have purchased property with a VA mortgage but want to buy a new primary residence might choose to explore FHA loan options rather than try to have VA loan eligibility renewed. A borrower may wish to save their VA options for later, and turn to FHA mortgages instead thanks to some similarities between both programs including Streamline Refinance loan options. What do FHA loan rules say about military members and their ability to use FHA loans instead of VA mortgage loan options? One issue with FHA loans is the occupancy requirement. Borrowers are required to occupy the | more...

September 1, 2017

What Kind Of Home Can I Buy With An FHA Loan?

By Bruce Reichstein

What kind of home can I buy with an FHA loan? That is an important question-not everyone is looking for a typical suburban home. Some people are interested in farm homes, condos, town homes or duplexes, or manufactured housing. What does the FHA loan handbook, HUD 4000.1, have to say about what can be purchased with an FHA mortgage? FHA Single Family Loans For Owner/Occupiers FHA single-family loans are intended for owner-occupiers who intend to use the home as their primary residence. There are some exceptions to this (we will cover those in another blog post), but for most transactions, borrowers must own/occupy the home as their main address. FHA Single Family Loans For Multi-Unit Properties Buyers can purchase homes they intend to occupy even if those homes have more | more...

August 24, 2017

Do Section 8 Housing Vouchers Count For FHA Loans?

By Bruce Reichstein

There are many different types of income that can be used to qualify for an FHA home loan. While there is no minimum or maximum income requirement to qualify for an FHA mortgage, the borrower’s debt-to-income ratio, stability and duration of income, and other factors will be scrutinized as part of the loan application process. Some income is simple to verify. Other types of income have have additional requirements. That is true of certain public assistance including Section 8 Housing Choice vouchers and income received from government-run public assistance programs. In these cases the duration of the payments will be an important factor. Using Section 8 Housing Choice Vouchers As Income The FHA loan handbook, HUD 4000.1, states on page 210 that a lender is responsible for verifying the nature | more...

August 24, 2017

Can I Get An FHA Loan After A Short Sale?

By Joe Wallace

Can I get an FHA loan after a short sale? This is a question we handle frequently, and the answer depends on circumstances as well as guidelines found in HUD 4000.1, the FHA loan handbook. HUD 4000.1 starts off by defining what it considers to be a “short sale”, also known as pre-foreclosure sales. According to the handbook, these terms refer to “the sales of real estate that generate proceeds that are less than the amount owed on the Property and the lien holders agree to release their liens and forgive the deficiency balance on the real estate.” So we see that a short sale is something that can affect your credit, and as we’ll see, the ability to purchase a home in the near future after the sale. FHA | more...

August 23, 2017

Can I Get An FHA Home Loan After Foreclosure?

By Bruce Reichstein

Can I get an FHA loan after foreclosure? This is a question that comes up quite often. The answer depends on a variety of factors including the date that the foreclosed property was transferred out of the borrower’s name. The FHA loan handbook, HUD 4000.1, states that the FHA minimum requirements for getting a new loan following a foreclosure include a waiting period. This period, often called a “seasoning period” or “seasoning requirement” is normally three years. From HUD 4000.1: “A Borrower is generally not eligible for a new FHA-insured Mortgage if the Borrower had a foreclosure or a Deed-In-Lieu of foreclosure in the three-year period prior to the date of case number assignment.” The next line in that section is a crucial one: “This three-year period begins on the | more...