Articles Tagged With: FHA Mortgage

August 31, 2021

The Final Month Of The COVID-19 FHA Foreclosure Eviction Moratorium

September 1, 2021 marks the start of a countdown–the final days of the FHA foreclosure eviction moratorium issued to help FHA borrowers avoid loan default and foreclosure during the economic hardship of the global COVID-19 pandemic. There were two FHA-wide orders during the pandemic. One was a prohibition on foreclosures on homes securing an FHA mortgage, and the other was a moratorium on foreclosure-related eviction for those with FHA mortgages who were in the foreclosure process when the pandemic hit. The moratorium on FHA foreclosures ended in July 2021, but the foreclosure eviction ban was extended until the end of September 2021. On July 30, 2021, the FHA and HUD issued an announcement stating as such, which included the following: “Foreclosure-related evictions of persons from properties that were secured by | more...

August 27, 2021

Mistakes First-Time Homebuyers Make

By Joe Wallace

If you are a first-time homebuyer, there are some pitfalls and mistakes you should definitely try to avoid as you enter into the process of planning, saving, and applying for a loan to purchase a new home. What kinds of mistakes do we mean? There is the usual Home Loans 101 type advice you read in every single finance blog ever written–don’t be careless with your credit, don’t apply for new credit while you are trying to apply for a home loan, and don’t start house hunting in earnest without home loan preapproval. But what about some of the less-obvious mistakes first-time homebuyers make? The ones you won’t find in some other online home loan blogs or advice centers? First-time homebuyers sometimes overlook critical expenses in the planning and saving | more...

August 26, 2021

FHA Refi Loan Rules You Need To Know

By Joe Wallace

Thinking about refinancing your home loan? With an FHA mortgage, you can refinance a conventional, VA or another non-FHA mortgage as well as an existing FHA home loan. Refinancing is great for many reasons but for some borrowers specifically want a refi loan to get a more affordable mortgage with lower payments or a lower interest rate. Some must refinance to catch up on a mortgage after missing payments; some may need to consider a refinance option in order to prevent their home from going into default and foreclosure in such cases. So for our purposes here, we are not discussing FHA cash-out refinancing options as these loans have rules specifying how much equity is needed in the home to cash out and some borrowers may have to wait longer | more...

August 24, 2021

What One Credit Reporting Agency Says To Do About Your Credit Scores

By Joe Wallace

Your credit report and credit score are important factors in home loan approval. So what advice do the credit reporting agencies like Equifax, Experian, and TransUnion say you should do when planning to apply for a home loan? Knowing what credit score advice these three agencies offer is important–it’s good to think like a lender when applying for a large line of credit, and it is even better to think like the credit reporting agency in terms of what to do to prepare your credit ahead of your loan. What does Experian say about getting your credit ready for a home loan? Their official site reminds consumers that credit scores are a very important aspect of home loan approval. But those scores do NOT tell the entire story. Experian reminds | more...

August 23, 2021

FHA Home Loans: Why You Need To Review Your Credit Report Now

By Bruce Reichstein

Why is it so important to review your credit report long before you apply for a mortgage? One important reason–the one you read in almost every article with advice on this topic–is to start reviewing your credit early in case you have to dispute an item on your report. But what happens in the event you find errors, outdated information, or evidence of identity theft? In the 21st century the likelihood of having any–or even all–of these in your credit report is elevated due to hackers, accidental breaches of personal data, or even mistaken identity. So what should a potential borrower do if they discover trouble with their credit reports? The first thing to do is to remember you’ll need to check all three credit reporting agencies to determine if | more...

August 20, 2021

Buying Your First Home

By Joe Wallace

What kinds of questions should you ask before you make an offer to buy your first home? There are many areas to think about when getting ready to make a big financial commitment like a mortgage. Is Your Financial House In Order? Can you realistically afford the home you are buying? The answer to this question goes further than whether you have enough money after your other monthly expenses to pay your mortgage. For example, having the ability to save for your upfront expenses (down payment and closing costs) is important. But what happens AFTER those fees and expenses are taken care of? It is a good idea to include saving some cash reserves above and beyond your cash to close–having some extra funds to help out in case times | more...

August 19, 2021

Time Is Running Out On The HUD Foreclosure Eviction Moratorium

By Joe Wallace

The end of the HUD foreclosure moratorium was announced earlier this year–the end date of the moratorium is listed as July 31, 2021. That date is firm, at least according to the most recent FHA Mortgagee Letter published on this issue, which mentions, “foreclosures of FHA-insured mortgages may be initiated or resumed upon the expiration of the foreclosure moratorium in accordance with FHA requirements.” The July 31st deadline is, at this time, not expected to be extended further. However, there is also a moratorium on foreclosure-related evictions for FHA borrowers who are in default on their mortgages. That eviction moratorium has been extended until September. HUD instructions to participating FHA lenders is clear. The Mortgagee Letter on the FHA/HUD official sites includes these guidelines: “A Mortgagee must not initiate or | more...

August 17, 2021

Before You Apply For Your Mortgage Loan

By Joe Wallace

If you are concerned about your ability to qualify for a mortgage, before you get pre-qualified or pre-approved, it’s a good idea to add a few steps to your home loan prep checklist. These steps should be in addition to the usual things you need to do before you apply for the loan, seal pre-approval, approach a seller, or even start working with a real estate agent. One of those things is very important–you need to not only know the contents of your credit report (a Home Loans 101 type piece of advice) but also monitor your credit through the entire planning and purchase process of your home loan. Knowing your credit score is vital for a mortgage borrower and home buyer, but what happens if your credit report begins | more...

August 16, 2021

Rent Or Buy?

By Bruce Reichstein

Are you tired of paying rent, answering to landlords, and trying to maintain your living space while trying to be mindful of thin walls, sensitive neighbors, or other concerns associated with living in an apartment complex or other rental situations? One way to get closer to a decision is to use a rent vs. buy calculator or to run your own numbers using similar data. You’ll need a typical home price for the local area to calculate a mortgage payment (using principal, interest, property taxes and any applicable homeowners association fees) and compare it to how much you pay in rent, renter’s insurance, etc. You can use a rent vs. buy calculator to give yourself a good idea of how the basic numbers compare. But there are a few variables | more...

August 13, 2021

HUD and FHFA Announce Historic Partnership

By Joe Wallace

The Department of Housing and Urban Development has announced a major partnership with the Federal Housing Finance Agency (FHFA) to further the cause of fair housing and the enforcement of the federal law known as the Fair Housing Act. The FHFA is an important agency–it serves as the “primary regulator” for federal home loan banks. According to HUD.gov, FHFA has “broad statutory authority to supervise the regulated entities, including authority to monitor and gather information and conduct supervisory examinations, and enforce compliance with applicable law.” FHFA is responsible for oversight of: Fannie Mae Freddie Mac Federal Home Loan Banks The two agencies have agreed to a Memorandum of Understanding which has both HUD and FHFA working to “enhance” the enforcement of Fair Housing Act laws. This is intended to help | more...