Articles Tagged With: FHA Mortgage Loans

February 12, 2015

FHA Loan Minimum Property Requirements: Tripping Hazards On The Property

A reader asks, “What are regulations on trip hazards? I have a listing where the tree roots lifted up the driveway quite a bit. The tree has been removed, but roots and buckled blacktop drive still there.” FHA minimum property requirements don’t cover each and every situation where corrections might need to be made to the property in order for it to meet standards–in many cases the FHA minimum requirement includes a general rule that may be reinforced by state and/or local building code. According to the FHA/HUD official site, “HUD requires that each property insured with an FHA mortgage meet one of the nationally recognized building codes or a State or local building code based on a nationally recognized building code. In areas where such State or local codes | more...

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

February 10, 2015

FHA Loan Questions: Minimum Income Requirements

By Joe Wallace

A reader asks, “Hello just want to know how much do my annual gross amount have to be to get approved for a FHA loan?” Two of the most common myths about FHA home loans are that the FHA is only for first-time homebuyers and that FHA loans have a minimum income or maximum income requirement. None of those things are true. The FHA does not have a minimum dollar amount the borrower must earn in order to qualify, and there is no income ceiling or limit for FHA loans. FHA loans are not specifically for disadvantaged people, nor are they specifically for first time home buyers. However, it’s important for all potential FHA borrowers to know that your lender will determine whether or not you can afford the new | more...

February 9, 2015

FHA Loans and Wage Garnishment: A Reader Question

By Joe Wallace

A reader asks, “if I have state taxes being taken out of my check as a garnishment will that disqualify me for FHA loan?” FHA loan rules found in HUD 4155.1 Chapter Four address delinquent federal taxes in association with an FHA loan, but not state taxes specifically. However, we can get an idea of the FHA’s position on this issue by reading what it has to say about a borrower who may be delinquent on federal taxes: From Chapter Four of HUD 4155.1: “If, after checking public records, credit information or CAIVRS, a borrower is found to be presently delinquent on any Federal debt or has had a lien (including taxes) placed against his/her property for a debt owed to the Federal government, he/she is not eligible for an | more...

February 4, 2015

FHA Loan Reader Questions: Help With an Existing FHA Mortgage

By Joe Wallace

We get many questions about FHA home loans. Some of them come in the form of detailed queries about specifics of a certain FHA loan program, others come as more general questions about the nature or scope of FHA home loans. Here’s one of the more generalized questions that came in recently. A reader asks: “What about help with a current FHA loan? Remodification?” It’s not clear what the reader is getting at with this question, but assuming the reader wants assistance with an existing FHA loan in order to get into a lower monthly payment, the good news is that there is definitely assistance available in the form of FHA Streamline Refinancing. FHA Streamline refinance loans are for borrowers with existing FHA mortgages who want a lower interest rate, | more...

January 23, 2015

FHA Mortgage Rate Trends

By Joe Wallace

Mortgage rates this week were mixed and there has been some volatility that had potential to move the numbers higher–Thursday, for example, was a big day with a quantitative easing program announced by the European Central Bank. That had big potential to move rates depending on investor reaction to that announcement, but on Thursday mortgage loan rates in general held steady. This issue still has the power to affect mortgage loan rates in the U.S. depending on conditions and is a factor worth paying attention to. In general, 30-year fixed rate conventional mortgages are still considered low, even though the best execution rates have moved away from the 3.5% territory we saw earlier for the most qualified borrowers and back into a range that tops out, best execution, at 3.75% | more...

January 16, 2015

FHA Loans In Community Property States: A Reader Question

By Joe Wallace

A reader asks, “Husband and wife are seperated for the moment. No plans to divorce for a while. Husband wants to purchase a home in Georgia. The wife will also purchase at some time in the future. Do they have to be divorced before the husband can purchase a home?” There are too many missing details to give even a general answer on this one–do the married couple currently own a home and have a mortgage? If so, who is taking ownership of the property and financial responsibility for the loan? Those are important factors in any home loan application–the amount of current debt, the amount of current income, and how much of that income is taken up by the current debt. A borrower with too much debt and not | more...

January 5, 2015

FHA Loan Reader Questions: Zero Down Payment Home Loans

By Joe Wallace

A reader asks, “I am wanting to know the best way for me to purchase a house with no down payment. Many years ago had a home through an FHA loan, due to divorce we resolved the case. I found a home I would like to have in the country posey road, 5 acres, nice home all new flooring, simple but a very nice home.” “Can you tell me how to go about getting a loan with no down payment and how I can see if you can consider the home I want meets your requirements etc. I’m on Medicare/disabled with an income.” HUD 4155.1 Chapter Five Section B directly addresses this reader question, assuming the question is about FHA loans in general. We can’t speak to non-FHA mortgage loans, | more...

December 26, 2014

FHA Loan Reader Questions: Principal Reduction

By Joe Wallace

A reader asks, “I am owner/occupant of a 4 unit residential apartment Bldg which I built 37 years ago. it was successful until wacancies took over after the crash, I have funded the payments with my cash flow but it is now getting lower and lower and need my 6% reduced to the 3% rates with help i a small principal reduction.” This falls far outside the FHA single-family home loan program. The reader doesn’t indicate in the question whether the original loan was an FHA-guaranteed mortgage or not, but in any case, a borrower who seeks a principal reduction needs to work with the lender to see if this is possible. A refinance loan option may be possible depending on the circumstances and the lender, but again, this is | more...

December 10, 2014

FHA Loan Interest Rate Trends

By Joe Wallace

Plunging oil prices—plus stock market reaction to those lower oil prices–are among the factors over the last five trading days that have affected FHA mortgage rates. FHA loan interest rates have fallen to year-long lows, best-execution. There are other factors that can and do contribute to lower rates from day to day. One factor that could affect FHA loan rates this week is tomorrow’s 30-year Treasury auction. Borrowers who have not yet committed to an FHA mortgage rate lock should keep an eye on the news about that auction tomorrow to see how it may affect the current interest rate trend. At the time if this writing, 30-year fixed rate conventional mortgage loan rates are in a range that tops out, best execution, at four percent. The bottom end of that best | more...

November 28, 2014

Fair Housing Act Violations: A Case in Puerto Rico

By Joe Wallace

A press release on the FHA/HUD official site reveals that a Puerto Rico condo association discriminated against a person with disabilities in violation of federal fair housing laws. According to HUDNo.14-142, “The U.S. Department of Housing and Urban Development (HUD) announced today it has ordered Castillo Condominium Association, in San Juan, Puerto Rico, to pay $20,000 in damages plus a $16,000 civil penalty after finding that the association violated the Fair Housing Act when it refused to allow a resident with disabilities to keep his emotional support animal.” Support animals and/or service animals have a different status than what might be considered an “ordinary pet”. According to the FHA/HUD official site, “The Fair Housing Act makes it unlawful to refuse to make reasonable accommodations in policies or practices when such | more...