Articles Tagged With: FHA Mortgage Loans

January 15, 2016

HUD Housing Report: Rising Equity, Fewer Homeowners “Underwater”

The Department of Housing and Urban Development (HUD) has issued a housing market report on its official site–“Measuring Progress in the Housing Market” examines the state of the market near the end of the old year and noted that equity is rising, while the number of homeowners still underwater in the wake of the Great Recession is going down. “As 2015 came to a close, we saw our housing market reach key milestones on the path to recovery homeowners equity rose again, the number of homeowners in negative equity continues to decline, and purchases of new homes increased. Its clear that we must continue to support programs that will allow more American families and homeowners to recover from the Great Recession.” HUD offers this report as a regular feature of | more...

January 4, 2016

Mortgage Loan Rate Trends: Closing Out 2015 Higher

By Joe Wallace

In the last week of 2015, we saw mortgage loan rates creeping higher, staying above the four percent mark for 30-year fixed rate mortgage loans. A holiday week can keep rate movements conservative, and two holiday weeks in a row can make things quite calm, but that quiet did not prevent the upward drift of rates. 30-year fixed rate conventional mortgages closed out 2015 in a best execution range between 4.125% and 4.25%. FHA mortgage rates, in spite of the upwards creep we’ve seen in the past two weeks, did not move from their best execution comfort zone of 3.75%. That best execution rate tends to vary more among participating lenders than with conventional loan equivalents, so your experience may depend on the lender. Additionally, best execution rates are not | more...

December 28, 2015

HUD Announces Settlement With Real Estate Agency Charged With Fair Housing Act Violations

By Joe Wallace

Often when a violation of the Fair Housing Act occurs, it’s up to the victim to report the incident in order for the situation to be fixed. Those who fail to report such violations may not only cheat themselves out of a fair deal, but also allow such violations to continue to occur. Consider a recent settlement by HUD, which recently approved a pair of “Conciliation Agreements” with Delap Realty, LLC, of Northampton, Massachusetts, resolving allegations mentioned in an FHA/HUD press release that, “…the company and its agents violated the Fair Housing Act by discouraging families with children from renting over concerns the units might contain lead-based paint hazards.” Under the Fair Housing Act, it is illegal to deny or limit housing because a family has children. It’s also not | more...

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

December 22, 2015

FHA Loans, Credit Issues, And Down Payment Assistance Programs

By Joe Wallace

A reader got in touch recently to ask about FHA loan credit requirements and down payment assistance programs. That question includes the following: “…My (FICO) score was about 500 for years till I finally am working with the Lexington Law Firm that I’m paying $99 a month that I have 3 negatives I still am owing but I see that now I have my score went up to 648 which is fair but I want to know about the loan.” “Will FHA approves me to get a loan to buy a house in PA. But I’m not quite sure about AmeriDream that if I still can apply to make a down payment for the house?” FHA home loan approval depends on a variety of factors, of which FICO scores are | more...

December 8, 2015

FHA Home Loans For Existing Properties: Weatherization

By Joe Wallace

Did you know that in certain cases, FHA single-family home loan rules in HUD 4000.1 permit the borrower to add funds to weatherize an existing construction home being purchased with an FHA mortgage? According to HUD 4000.1: “The weatherization product permits the Borrower to finance the cost of eligible energy-related weatherization improvements, in conjunction with a purchase or refinance.” This is separate from an FHA Energy Efficient Mortgage (EEM) though that can also be included in the loan for qualified borrowers. From HUD 4000.1: “Weatherization improvements may be financed in conjunction with the following: –Section 203(b) purchase transaction (or) no cash-out refinance transaction –Section 203(h) Mortgage Insurance for Disaster Victims –Energy Efficient Mortgages (EEM)” The loan rules for this type of FHA mortgage or refinance includes a list of eligible | more...

December 7, 2015

FHA Refinance Loans: A Checklist

By Joe Wallace

Are you thinking about refinancing your home loan? There are many things you will want to consider in the planning stages that can help speed you to the application stage of your new loan. Here are some basics you should consider when saving and planning to refinance: The Type of Refinancing You Need Are you searching for a Streamline Refinance for your existing FHA mortgage loan? Or so you need to refinance from a conventional or other non-FHA mortgage into an FHA home loan? Do you want cash out? Or do you just need lower payments? All these factors are important to consider when choosing the FHA loan product that is right for you. An FHA Streamline has different rules and requirements than an FHA Cash-Out Refinancing loan. Know the | more...

December 4, 2015

FHA Adds Additional Temporary Guidelines For Condos

By Joe Wallace

The FHA and HUD eased certain condo guidelines earlier this year, and have since added a second round of temporarily eased “approval provisions” for condo projects to be added to the FHA approved list for single family home loans. According to an FHA mortgagee letter, both rounds of these temporarily eased guidelines are designed to help more people get into FHA condo loans. According to Mortgagee Letter 2015-27, “It is anticipated that the issuance of these additional temporary provisions will increase the pool of condominium projects eligible for FHA approval, thus increasing affordable housing options for first-time and low to moderate income homebuyers. The requirements of this Mortgagee Letter are applicable to all Title II programs including the Home Equity Conversion Mortgage (HECM) insurance program, unless otherwise stated.” One area | more...

November 20, 2015

Agreement Reached In Michigan Housing Discrimination Case

By Joe Wallace

The FHA/HUD official site has issued a press release announcing an agreement in a Michigan housing discrimination case. According to HUDNo.15-147, a “concilliation agreement” has been reached between the government and Mortgage One, Inc., of Sterling Heights, Michigan, “resolving allegations of lending discrimination againstan applicant with disabilities.” According to the press release, HUD claimed Mortgage One and a loan officer, “required the mortgage applicant to provide intrusive and unnecessary documentation regarding his disabilities before approving his FHA-insured mortgage”. A persons qualifications to purchase a home should be the only criteria used to evaluate his or her loan application, not whether they are living with a disability, said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity, who was quoted in the press release. He adds, This agreement reaffirms | more...

November 19, 2015

FHA Loan Appraisal Standards: Environmental Concerns

By Joe Wallace

We’ve been reviewing appraisal standards and minimum property requirements as listed in the new HUD single family FHA loan rulebook, HUD 4000.1. One important section concerns environmental standards for any home purchased with an FHA mortgage. In general the lender is responsible for insuring that homes purchased with FHA loans are, “free of all known environmental and safety hazards and adverse conditions that may affect the health and safety of the occupants, the Propertys ability to serve as collateral, and the structural soundness of the improvements.” The lender cannot approve homes for FHA mortgages, for example, when power lines cross over certain water-based features of the home such as swimming pools. The existence of high pressure gas pipelines may also be a problem depending on the nature and location of | more...

November 19, 2015

Mortgage Rate Trends: Unchanged To Slightly Higher

By Joe Wallace

All eyes were on the Fed on Wednesday in anticipation of the release of Fed meeting minutes many hoped would give a bit more clarification to the possible December interest rate hike that’s been discussed. After the release of those minutes, mortgage rate behavior only changed a small amount, leaving best execution rates more or less where they have been in the last few days. Is a rate hike coming in December? That has not been confirmed (the Fed is definitely pointing towards the possibility), but many sources believe that interest rates for mortgage loans probably won’t take any steep plunges before that issue is cleared up. We’re likely staring at a tight range of rates until that happens. Some feel there is still potential for rates to move lower | more...