Articles Tagged With: FHA Short Refinance

May 11, 2011

Is There A Penalty For Pre-Paying On An FHA Home Loan?

It’s common knowledge that you should read a loan contract carefully, but when applying for a mortgage loan, many first time home buyers struggle to understand some of the fine print. It’s important to ask questions about any portion of an FHA or conventional loan agreement you don’t understand. For example, some buyers don’t fully grasp the implications of the penalties for “early payment” in a mortgage loan contract. Did you know some conventional loans can charge fees for early payoff of a home loan? FHA loan regulations don

May 3, 2011

FHA Loans, Appraisals and Refinancing

By Joe Wallace

FHA loan applicants who find a suitable home and want to buy it must wait out the required FHA appraisal process before a loan can be approved. The FHA appraiser’s job is to make sure the home meets minimum property requirements and to assign the fair market value. The fair market value establishes a baseline for the FHA loan amount and is a very important part of the process. That appraisal has an expiration date. According to FHA rules, ” Effective for all case numbers assigned on or after January 1, 2010 the validity period for all appraisals on existing, proposed, and under construction properties, including HUD REO appraisals that have an effective date of on or after April 1, 2010, will be 120 days.” That doesn’t give the borrower | more...

March 25, 2011

FHA Refinance Loans–Can I Include Closing Costs Into a Streamline Loan?

By Joe Wallace

FHA Mortgagee Letter 2011-11 issued several changes and policy clarifications to refinancing loans. FHA borrowers with existing mortgages should be aware of these changes as they can affect a borrower’s planning when it’s time to consider refinancing a home with streamline or cash-out FHA loan products. One of the changes, scheduled to take effect in mid-April 2011, alters the way closing costs, pre-paid items, discounts and other items are paid for during some types of FHA refinancing. According to the new FHA guidelines, “The mortgagee may not add closing costs, discount items, prepaid items, or other financing costs to the new loan balance.” This applies to borrowers who seek “Non-Credit Qualifying Streamline Refinances” like an FHA Streamline loan. The policy also states, “As a means of controlling risk to FHA

February 25, 2011

FHA Streamline Refinancing Rules

By Joe Wallace

There have been several changes to the rules affecting FHA refinancing loans. Subordinate liens, the waiting period borrowers must go through before applying for an FHA refinancing loan, and other important areas have all been affected by new rules designed to protect the FHA loan program and tighten control in certain areas of the refinancing process. For example, borrowers are now required to be current on their mortgage the month prior to and for the month of the closing date.

February 25, 2011

Changes to FHA Refinancing Rules

By Joe Wallace

In our last blog post we discussed some changes to FHA refinancing loan rules. Effective immediately, the FHA requires all borrowers seeking streamline refinancing to make at least six mortgage payments on the property. There must also be a minimum of

February 1, 2011

FHA Extends Anti-Flipping Waiver

By Joe Wallace

In a move designed to help stabilize the U.S. housing market, the FHA has announced an extension of it's anti-flipping waiver, which temporarily allows the FHA to insure loans for properties owned by the seller for 90 days or less, through the end of 2011.

January 26, 2011

FHA Loans and Foreclosure: a Timeline

By Bruce Reichstein

With home foreclosures still in the news even several years after the housing crisis of 2008, we've written a fair amount on topics related to foreclosure on FHA home loans. Default and foreclosure are often preventable if the buyer takes action early; in some cases a simple bit of additional information is the only thing a borrower needs to take action that can save the home. Missing one FHA mortgage loan payment isn't good, but it is not the end of the world if the buyer contacts the loan officer and the FHA to discuss next steps. But what happens when the buyer misses the a second payment? The FHA says when the second payment in a row is missed, the bank will definitely reach out to the homeowner, but | more...

January 24, 2011

FHA Loans and Foreclosure: Are You In Danger?

By Bruce Reichstein

The FHA has many programs to help home buyers find and purchase a home. But FHA help doesn't end there--the government has a vested interest in helping people keep their homes even in times of financial difficulty. When borrowers get into trouble with their FHA mortgage loans, the first line of defense is to address money problems as early as possible. That's why the FHA offers their toll-free number (1-800-569-4287) to put home owners in touch with a housing counselor.

December 20, 2010

How Much Do I Have To Make To Qualify For an FHA Home Loan?

By Joe Wallace

How much do I need to make to qualify for an FHA mortgage? That is among the most popular questions about FHA home loans. According to the FHA, there is NO minimum income requirement to apply. That said, the FHA does require a three-year employment record showing steady income during that time. Note that the requirements don't say you must have held the same job for three years, only that the income has been reliable. The fact is, in order to qualify for an FHA home loan, there is no one single determining factor that gets you approved or declined; the FHA examines a combination of factors to determine an applicant's overall credit worthiness and ability to pay the FHA mortgage on time every month.

December 15, 2010

What is an Illegal Referral Fee on an FHA Loan?

By Joe Wallace

The FHA requires those who do business with it to follow guidelines and regulations that protect both buyer and lender from unscrupulous practices. But FHA rules aren't all. Congress passed the Real Estate Settlement Procedures Act to prevent the practice of kickbacks and unethical referrals. According to the FHA official site, "RESPA was enacted because Congress felt that consumers needed protection from '... unnecessarily high settlement charges caused by certain abusive practices that have developed"...in some areas of the country."