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Articles Tagged With: FHA Requirements

May 18, 2012

HUD Studies Reveal Important Benefits Associated With Housing Counseling

By Joe Wallace

A press release from the Department of Housing and Urban Development says FHA/HUD approved housing counseling offers significant benefits “for families who purchase their first homes and those struggling to prevent foreclosure”. Those benefits were the focus of two HUD research projects. According to HUDNo.12-085, ” HUD found housing counseling significantly improved the likelihood homeowners remained in their homes” . That finding comes from two housing counseling research projects, one that involved pre-purchase counseling and one focusing on foreclosure avoidance counseling by HUD-approved agencies. “Both the pre-purchase counseling and foreclosure counseling studies enrolled clients in the fall of 2009 and early 2010. HUD found that 35 percent of participants became homeowners within 18 months of pre-purchase counseling and only one of those buyers subsequently fell behind in their mortgage payments.” | more...

 

May 16, 2012

FHA Loan Reader Questions: Loan Approval For Self Employed Borrowers

By Joe Wallace

A reader asks, “Is it true that FHA will not approve a loan if you have only been self-employed at your current business for 1 1/2 years? Applied for an FHA loan, was self-employed in a retail business for 5 years, sold my interest in the business and opened another retail business. My newest business has been open 1 1/2 years. Can I still get financed (credit score and debt to income ratio is excellent)?” The FHA loan rules are clear about minimum employment times in general–there are no minimum requirements for the amount of time spent on any one job. According to HUD 4155.1, Chapter , Section D; “To be eligible for a mortgage, FHA does not require a minimum length of time that a borrower must have held | more...

 

May 2, 2012

FHA Appraisals: Who Is Responsible For Appraisal Quality?

By Joe Wallace

One question about FHA home loans doesn’t usually come up unless someone in the FHA loan process is dissatisfied with the appraisal, but it’s a question asked often enough to be included in the FHA/HUD list of the most frequently asked questions: Who is responsible for the quality of an FHA appraisal? According to the FHA FAQ, “The lender is held responsible, equally with the appraiser, for the integrity, accuracy and thoroughness of an appraisal submitted to FHA for mortgage insurance purposes. FHA may pursue appropriate enforcement actions against both or either party for violations.” In Mortgagee Letter 2009-41, The FHA also says, “FHA requires that all appraisers performing appraisals of properties that will be security for FHA-insured financing be knowledgeable of FHA appraisal reporting requirements…” and, “Appraisals performed for | more...

 

May 1, 2012

FHA Loans For Disaster Victims

By Joe Wallace

Every spring and summer, we report on local communities that become eligible for federal disaster relief, including FHA loans, FHA foreclosure relief and other types of assistance for those who have had homes damaged by natural disasters. One of the most recent examples was our blog post on the relief efforts for those affected by storms in Hawaii, and unfortunately that likely won’t be the only such post we’ll have to make in coming months as tornado season and hurricane season for 2012 approach. What does the FHA offer those affected by natural disasters? There are many programs, but one of the most widely used is the FHA’s Mortgage Insurance for Disaster Victims, also known as a Section 203(h) loan. According to the FHA, “This program helps victims in presidentially | more...

 

April 30, 2012

FHA Loans: How Can I Estimate My Monthly Mortgage Payment?

By Joe Wallace

One commonly asked question about FHA home loans involves the process of determining how much a borrower could pay on a monthly basis on the FHA guaranteed loan. For this purpose, the FHA official site refers potential borrowers to a loan calculator provided by GinnieMae.gov, which is designed to help borrowers get a general idea of what the costs might be per month based on user-provided details including the sale price of the home, the housing market that home is in, etc. Specifically, the loan calculator asks for the sale price of the property, the state and county where that property is, the term of the loan plus interest rate, and the amount of down payment. Once these fields are filled in, the GinnieMae.gov calculator returns the results with plenty | more...

 

April 27, 2012

FHA Loans: The Road To Refinance

By Joe Wallace

The official White House You Tube channel posted a video on April 18th, 2012, detailing the President’s plan for refinancing for borrowers. According to the YouTube post, “Brian Deese, Deputy Director of the National Economic Council, explains how President Obama’s plan would make it much easier for millions of American homeowners to refinance their mortgage and save hundreds of dollars every month.” This plan has been proposed, but has not been passed by Congress. As described in the video (see below at the end of this blog post), there are many advantages to refinancing, and the Obama plan would, if passed, offer more options for borrowers who need lower monthly payments and lower interest rates. But in the meantime, many FHA borrowers need refinancing and can’t afford to wait to | more...

 

April 23, 2012

FHA Loan Rules Vs. Lender Rules

By Joe Wallace

There’s a common theme among many of our most frequently asked questions about FHA guaranteed home loans; “Why do the FHA rules say one thing, while my lender says another?” In many cases this question has to do with FHA rules covering appraisals, minimum property requirements, or even the minimum waiting period required after foreclosure before the borrower can try applying for a new FHA home loan. For example, the FHA loan rules about streamline refinancing loans state that an appraisal may not be required under the right circumstances. From the FHA official site: ” Streamline refinances can be insured with or without an appraisal. When an appraisal is completed FHA does not require the repairs (except for lead based paint repairs) to be completed, however the lender may require | more...

 

April 20, 2012

FHA/HUD Assistance For Hawaii Storm Victims

By Joe Wallace

The FHA and HUD have announced disaster assistance for victims of recent storms in Hawaii. According to a press release issued by the Department of Housing and Urban Development, the department will “speed federal disaster assistance to the State of Hawaii and provide support to homeowners and low-income renters forced from their homes following severe storms, flooding and landslides” during the month of March. The announcement comes after a presidential disaster declaration for Hawaii’s Kauai County. According to the press release, “The President

 

April 16, 2012

FHA Reverse Mortgages, Scams, and Required HECM Loan Counseling

By Joe Wallace

There’s a special type of FHA home loan called the Reverse Mortgage, also known as a Home Equity Conversion Mortgage or FHA HECM loan for short. From the FHA official site, “If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may participate in FHA’s Home Equity Conversion Mortgage (HECM) program.”