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Articles Tagged With: Single Family Handbook 4000.1

June 12, 2012

Bank Of America Settles Maternity Discrimination Claim

By Joe Wallace

A recent press release found at the official site for FHA/HUD announces, “Bank fund will compensate women denied loans because they were pregnant or on maternity leave”. According to the HUD press release 12-095, “The U.S. Department of Housing and Urban Development (HUD) announced today that Bank of America has agreed to pay up to $161,180 to settle allegations that one of the bank’s San Jose, California branches refused to refinance the mortgage of an Irvine woman because she was on maternity leave. HUD reached the agreement with Bank of America to resolve a Fair Housing Act complaint that had been filed by the Fair Housing Council of Orange County (FHCOC).” Those applying for any kind of home loan–including FHA guaranteed mortgages–may not be discriminated against due to pregnancy, family | more...

 

May 29, 2012

Up Front Mortgage Insurance Payments For FHA Home Loans

By Joe Wallace

A reader asks, “Can I roll my upfront MIP on to my loan above the county loan limits? The limit in San Diego is $697500, can I roll the upfront MIP on to the loan or do I have to pay cash?” Up front mortgage insurance payments, or UFMIP, have clearly defined rules as spelled out in HUD 4155.2. According to the rules, “The UFMIP remittance period begins on the date of loan settlement or the date of disbursement of the mortgage proceeds, whichever is later. UFMIP must be paid to FHA in a lump sum within 10 calendar days after the loan is closed.” That lump sum can be paid in cash or rolled into the loan amount, but the borrower cannot split the two options and pay a | more...

 

May 25, 2012

FHA Rules For Streamline Refinancing With or Without a Credit Check

By Joe Wallace

FHA Streamline Refinancing loans–which are issued for those with existing FHA mortgages–are available in two ways. One is a non-credit qualifying streamline loan which is available to qualified borrowers, the other is the “with credit check” or “credit qualifying” streamline refinance. When is a borrower eligible for a no-credit check FHA streamline loan? Part of the answer requires a look at the FHA definition of the streamline loan. According to the FHA official site, “Streamline refinances are designed to lower the monthly principal and interest payments on a current FHA-insured mortgage, and must involve no cash back to the borrower, except for minor adjustments at closing that are not to exceed $500.” The FHA permits streamline refinancing loans with no credit check with the borrower has owned the property for | 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 4, 2012

FHA Loan Forbearance For Unemployed Home Owners

By Joe Wallace

At the FHA official site, there is a page titled Avoiding Foreclosure. This page has a list of special programs and information on helping FHA borrowers avoid loan default and foreclosure. One such program is aimed at homeowners with qualifying FHA guaranteed mortgages who have lost their jobs. The program known as the FHA Special Forbearance Program was announced in July, 2011 and requires lenders to “extend the forbearance period for unemployed homeowners to 12 months. The changes to FHA

 

May 3, 2012

What is an FHA Streamline 203(k) Mortgage?

By Joe Wallace

There are many options with FHA home loans, including something called the FHA Streamline 203(k), which the FHA official site describes as follows: “The ‘Streamline’ (K) Limited Repair Program permits homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.” This is good news for borrowers who know their FHA appraisal requires certain improvements or corrections–it’s an option to consider if there’s a sticking point in negotiating such changes with the seller. Additionally, “…like the regular Section 203(k) program, Streamlined (k) is available: To augment an FHA Energy Efficient Mortgage (EEM), To insure the | 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 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...