Articles Tagged With: FHA Mortgage Loans

October 15, 2015

FHA Loans, Early Payoff, And Prohibited Fees: HUD 4000.1

With the publication of HUD 4000.1, existing FHA loan rules have been restated, updated, modified, or reprinted. In some cases nothing has changed, in other cases there have been major or minor alterations to the language, terms or conditions of these FHA loan rules. We’re examining many sections of the new rulebook and discussing common issues that may be affected by those changes, even if in some cases the rules haven’t changed. Knowing what’s in HUD 4000.1 as opposed to the old FHA single family home loan rules found in HUD 4155.1 and 4155.2 is important as HUD 4000.1 is THE definitive source for the program now. One big question some borrowers have about FHA loans is what happens if an early payoff is chosen. Can the lender penalize or | more...

October 14, 2015

Mortgage Rate Trends: Moving Lower To Start The Week

By Joe Wallace

Monday was a holiday, so no new mortgage rate information was published, but on Tuesday after the three-day weekend (for banks, federal offices and some businesses) mortgage loan rates began moving lower. The recovery, such as it was, wasn’t enough to push rates into a new best execution range or rates–borrowers in some cases may notice the difference in closing costs rather than an actual change in the rate. 30-year fixed rate conventional mortgages were reported at, best execution, 3.875% depending on the lender. Some more competitive lenders may be offering rates below that number at the time of this writing, but much depends on the borrower’s financial qualifications and other factors. FHA mortgage loan rates are holding at a best-execution 3.5%, though it’s too early to say whether this | more...

October 2, 2015

FHA Loan Rules In HUD 4000.1: Deferred Liabilities And Student Loans

By Joe Wallace

We recently got a reader question in the comments section about FHA loan rules covering deferred payments on student loans. In the past we’ve reported that FHA loan rules state certain types of student loan deferments (as explained in the old HUD 4155.1) did not have to be counted in the borrower’s debt-to-income ratio. HUD 4000.1 is the new FHA Single Family Home Loan policy handbook and has plenty of updated information, modifications to rules, and restatements of current policy and supersedes HUD 4155.1. Here’s the reader’s questions about student loans: “I was told by my realtor recently, that my student loan debt, although its deferred for three more years under teacher forgiveness, that the lender she is working with will have to count student loan debt in my DTI, | more...

September 28, 2015

FHA HECM Loans and Death Of The Primary Borrower

By Joe Wallace

We get many questions about FHA HECM loan rules. Some of those questions have to do with the legal rights and/or obligations associated with HECM loans for primary borrowers and what happens to the non-borrowing occupant if the borrower dies (in terms of ownership and occupancy of the property). Here’s a recent question that showed up in the comments section: “Several years ago my father and I took out a Reverse Mortgage on our home. He had to be the primary borrower because of his age and I was and still am not 62. I am a co-owner of the house and my name is on the deed. I had to go through the counseling and I had to sign all papers that he signed. My question is when something | more...

September 18, 2015

HUD Announces 2015 Relief For Victims Of Hurricane Sandy

By Joe Wallace

You read that correctly–the Department of Housing and Urban Development has announced further relief for victims of Hurricane Sandy. It’s been quite some time since we ran any Sandy-related news, but a recent decision by HUD gives these home owners some much-needed assistance. Many FHA borrowers were affected by that hurricane, and according to a press release issued by the FHA/HUD official site, “The U.S. Department of Housing and Urban Development today decided that HUD will not force thousands of New York and New Jersey homeowners to repay federal disaster recovery funds following a decision by the Federal Emergency Management Agency (FEMA) to increase flood insurance claim payments to families it initially underpaid following Hurricane Sandy.” According to HUDNo.15-144, federal law gives the Department of Housing and Urban Development the | more...

September 7, 2015

Happy Labor Day 2015!

By Joe Wallace

Happy Labor Day! We pause from our usual posts about FHA home loans to observe the holiday. Markets are closed today and reopen tomorrow, and our coverage of FHA loan news and mortgage rate news will resume on Tuesday. Have a safe and fun holiday!

September 4, 2015

Selling The Home You Purchased With An FHA Mortgage

By Joe Wallace

We get many questions about appraisals, valuation and related issues. Many of the questions that come to us in the comments section come from home buyers, but a few come from those who want to sell the house they purchased with an FHA mortgage loan. One recent question in that area came from a reader who wanted to know what the best way to repair cracks in a basement wall might be, and whether or not the home should be put up for sale before the repair process was completed. The only way we can respond to questions like that is to say that it’s outside the scope of what we write about on this blog, but those looking for answers to questions in cases like these won’t be satisfied | more...

August 26, 2015

FHA Mortgage Rate Trends: Slightly Higher After Rough Stock Market Tuesday

By Joe Wallace

Mortgage loan rates weathered the stock market storm on Monday, but Tuesday’s market activity brought slightly higher rates. It’s been a tough time for those watching market activity hoping for a mortgage loan interest rate rally, but numbers are still sub-four percent (best execution) and we even saw reports of some lenders offering 30-year fixed rate conventional best execution rates as low as the FHA comfort zone rate (3.75%) on Monday. But rates edged higher on Tuesday, putting things more solidly into the previously reported 30-year fixed rate conventional mortgage loan rate of 3.875%-which is still prevalent at the time of this writing. Wednesday’s activity, at the time of this writing, hasn’t even emerged solidly, but it’s definitely going to be an interesting ride to the end of the week. | more...

August 24, 2015

FHA Loans And Non-Purchasing Spouses

By Joe Wallace

There are a lot of questions asked about FHA loans and how spouses can buy together. Can the FICO scores of one spouse make up for the lower scores of the other borrower? Can one spouse’s income offset the lower income of the other? How does state law factor into FHA loan applications when spouses apply? All valid questions. But what about circumstances where one spouse is not borrowing? Does an FHA loan require action on the part of a non-borrowing spouse? The answer can be influenced by state law, lender standards, and FHA loan regulations. At the time of this writing, FHA loan rules that govern non-purchasing spouses can be found in HUD 4155.1 Chapter Four, Section A. There we learn the following: “If required by state law in | more...

August 20, 2015

FHA Loan FICO Score Requirements: Your Mileage May Vary

By Joe Wallace

One of the most common questions about FHA home loans centers around FICO scores. Many borrowers wonder why their FICO scores may or may not be good enough to get FHA loan approval. FHA loan rules have minimum FICO scores defined in HUD 4155.1, but the confusion comes when a borrower who knows these minimums gets told their scores aren’t high enough for maximum financing or loan approval, depending on circumstances. The reason for this is simple: FHA loan minimums aren’t necessarily the lender’s minimum standards for FICO scores. The lender is free to require higher FICO minimums as long as that requirement is enforced in compliance with federal law. The minimum FHA FICO score requirement of 580 or better for maximum financing isn’t always what the lender will require–your | more...