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Articles Tagged With: FHA Mortgage Loans

FHA Loan Appraisals and Lender Standards: A Reader Question

A reader asks, “I have a client that is FHA approved, and has had their appraisal done but can not locate the well. Well and septic have been tested and municipality has signed off on both stating they were ok with the way they are.” “My clients lender says no way, must meet the 50′ set back, other lenders say we can do it as long as you have the letter from the township My buyers dont want to start over as they are set to close on the house they are selling in 2 weeks. How can one bank say something different from another while following FHA guidelines?” There are several unanswered questions to go along with this reader question–are the lenders interpreting local or state building code or | more...

 

FHA Home Loans and Tax Lien Repayment Plans: A Reader Question

A reader asks, “I have a payment plan on a tax lien from 2009 which I have been paying on time for a few years. Other than that, my credit is perfect. I am wondering if this would be okay for an FHA loan. I have records from IRS showing that this is being paid and can present them as well.” This is an important question. FHA loan rules do not permit borrowers who are delinquent on federal debts to apply for an FHA home loan until that delinquency has been addressed. But what about situations like the reader question, where there is no delinquency, but the federal debt still exists? FHA loan rules that govern the tax lien issue can be found in HUD 4155.1, Chapter Four, Section A. | more...

 
When Is An FHA Loan Better Than A Conventional Loan?

FHA Home Loan Rules On Fair Housing

April is Fair Housing Month, and the FHA/HUD official site has a variety of resources for borrowers who want to know more about Fair Housing Act laws, and how such laws pertain to both borrowers and lenders. The FHA and HUD are quite serious about equal access to housing, but what do FHA home loan rules say about Fair Housing rules and how are participating FHA lenders expected to comply with those rules? HUD 4155.2 Chapter One, Section B has some important guidelines: “HUD is responsible for enforcing the Fair Housing Act. The Fair Housing Act, contained in 42 U.S.C. 3605, prohibits discrimination in residential real estate-related transactions, such as • making or purchasing loans or providing other financial assistance, and • the terms and conditions for making available loans | more...

 
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HUD Announces $36 Million In Housing Counseling Grants

Frequently we write about the availability of housing counseling for borrowers who want it. We’ve urged people to get this pre-purchase counseling by calling the FHA at their toll-free hotline (1-800 CALL FHA) to request a referral to a local HUD/FHA approved housing counselor or agency. The FHA/HUD official site has announced $36 million in housing counseling grants in a press release, a move designed to help homeowners make informed choices when house hunting and applying for the loan. It’s also meant to help borrowers anticipate problems that could lead to mortgage loan default or foreclosure. According to HUDNo. 15-041: “The U.S. Department of Housing and Urban Development (HUD) today awarded more than $36 million in grants to hundreds of national, regional and local organizations to help families and individuals | more...

 

FHA Home Loans, Mortgage Debt Cancellation, And Tax Time

April 15th, the tax deadline, is very near, but many people choose to apply to get an extension so they can file their taxes later in the year. If you haven’t completed your taxes for 2014 and are considering an extension, there is some very helpful information about home loans, home loan debt and related issues that may affect those who have FHA home loans or refinance loans. One important issue many borrowers have had to face in recent years is the tax consequences from a home loan modification or similar alteration to a mortgage where part of the debt is forgiven, cancelled, or written off by the lender. What follows is not tax advice, we are simply quoting what’s printed on the IRS official site. If you have tax | more...

 
What Is An FHA Loan Limit?

New Purchase FHA Mortgage Loans: Some Basics

If you are thinking about applying for an FHA mortgage instead of a conventional home loan, there are aspects of the FHA loan program you should know about before starting the house hunting process that will save you time. Knowing what types of homes you can purchase with an FHA loan, for example, will help you focus your efforts. FHA loan rules published in HUD 4155.2, the Lender’s Guide To The Single Family Mortgage Process, states: “FHA’s single family programs are limited to one- to four-family properties that are owner-occupied principal residences. FHA insures mortgages secured by • detached or semi-detached dwellings • manufactured housing • townhouses or row houses, or • individual units within FHA-approved condominium projects.” The FHA will not approve or guaranty mortgage loans that are secured | more...

 
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FHA Clarifies Rules For FHA HECM Loans

The FHA and HUD have clarified rules that govern how FHA Home Equity Conversion Mortgage Loans are handled with regard to “life expectancy set-asides” and calculation of property taxes as part of a borrower’s debt-to-income ratio. FHA Mortgagee Letter 2015-09, “establishes a monthly growth rate for Life Expectancy Set-Asides and clarifies a discrepancy between the HECM Financial Assessment and Property Charge Guide and the model HECM Financial Assessment Worksheet transmitted with Mortgagee Letter 2014-22.” What is a “life expectancy set-aside” and how does the new clarification affect it? According to the FHA, “The Life Expectancy Set-Aside (LESA) is used for the payment of property taxes, and hazard and flood insurance premiums, and will increase each month at a rate equal to one-twelfth of the sum of the mortgage interest rate | more...

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

FHA Loan Closing Costs

A reader asks, “Is the seller of a home to a buyer that is financing with a FHA loan required to pay the buyers closing costs?” FHA loan rules do not say the seller is required to pay closing costs on behalf of the borrower; in any case the seller’s contribution to the sale whether that is in the form of paying closing costs or other incentives is limited to six percent of the sales price of the property. Here’s a quote from the HUD booklet titled, “Shopping For Your Home Loan” which includes the following under Settlement Costs: “You can negotiate which settlement costs you will pay and which will be paid by the seller. The seller may contribute a lump sum amount or may agree to pay for | more...

 

FHA Loan Down Payment Rules: Sources Of The Down Payment

We often post about FHA loan preparation time, advising borrowers to give themselves at least 12 months before turning in an application for the FHA mortgage. Part of this is so the borrower can check credit reports, but also to insure that at least 12 months have gone by without the borrower missing any payments on financial obligations. Part of this advice also includes the notion that a borrower not apply for any new lines of credit for the 12 months leading up to the loan application for the FHA mortgage. There are several reasons for this, one of the most important being that new credit opens up the potential for a higher debt-to-income ratio. That higher ration can work against the borrower, especially in cases where the debt to | more...

 

Getting Started With FHA Loans: A Reader Question

A reader asks, “Im interested about information about FHA im a single mother also wanted to know if any help for military Mom my son is sergeant in the Marines im tired of living in apartment please help.” We get many comments/questions just like this and in every case our answer is the same–there is definitely help available from the FHA, and they do have programs designed to assist newcomers to the FHA loan process. The FHA official site is a great place to begin–consider what the FHA loan official site says about getting started with an FHA loan on the page titled, “Let FHA Help You”: “FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is | more...