Articles Tagged With: FHA Updates

May 30, 2019

FHA Loan Rules: Adding Repairs To The Sale Price Of The Home

FHA loan rules for new purchase home loans include regulations on how the cost of repairs can be added to the sale price of the home to be purchased with an FHA mortgage. Th rules for this are found in HUD 4155.1, Chapter 2 Section Five, which states: “Repairs and improvements may be added to the sales price before calculating the mortgage amount when the • repairs and improvements are required by the appraiser as essential for property eligibility, and paid by the borrower, and • sales contract or addendum identifies the borrower as responsible for payment, and completion of the repairs.” FHA loan rules in this section state that, “Only repairs and improvements required by the appraiser may be included.” How does this all work? Chapter Five has a | more...

June 1, 2017

HUD Announces Settlement In California Fair Housing Case

By Joe Wallace

The Department of Housing and Urban Development has announced a settlement in a California Fair Housing Act discrimination case. According to the FHA/HUD official site, HUD “reached an agreement with the owner and manager of a California apartment complex, resolving allegations they discriminated against tenants because of their national origin and familial status. Two related complaints filed with HUD alleged that the manager of the Four Palms Apartments in Mountain View, California, made discriminatory statements about Latino residents and prohibited their children from playing outside”. Such discrimination is not permitted under federal Fair Housing Act laws. “A family’s right to enjoy their home shouldn’t depend on where they are from or whether they have children,” said Bryan Greene, HUD’s General Deputy Assistant Secretary for Fair Housing and Equal Opportunity, who | more...

May 4, 2017

Mortgage Loan Interest Rate Trends: Up And Down

By Joe Wallace

In our last report we noted that mortgage loan interest rate numbers could be influenced by the substance of the most recent Fed announcement, or more specifically investor reaction to those details. Rates did try to creep lower ahead of Wednesday’s Fed event, and Wednesday morning it seemed like rates were trying to move lower still. But the Fed came and went, rates began to move higher, and according to our sources at the end of the day on Wednesday we were right back to where things were at before the pre-Fed downward movement. Which is to say that rates have been moving up and down within a certain range without any real major, breaking news-type dramatic shifts. 30-year fixed rate mortgage loan interest rate numbers are in a best | more...

April 5, 2017

April Is Fair Housing Month

By Joe Wallace

April is Fair Housing Month, and a press release from the Department of Housing and Urban Development (HUD) reminds us that 2017 is the 49th anniversary of the Fair Housing Act. We report on these issues here in addition to our usual FHA home loan topics because all borrowers, house hunters, and apartment seekers are protected from being denied housing on a discriminatory basis, but many don’t know or fully understand their rights under federal Fair Housing Act laws. And, as HUD explains, the availability of housing is an important factor in areas far beyond the immediate need of shelter and security. According to a press release at the HUD official site, “This year marks the 49th anniversary of the Fair Housing Act, landmark legislation that became law on April | more...

March 30, 2017

Mortgage Rate Trends: Moving Lower

By Joe Wallace

Since our last mortgage rate report, the overall trend has been downward in the short-term. Over the past several business days we have seen rates see-saw back and forth within a certain range, but at the time of this writing, rates are lower than when we reported on them last. 30-year fixed rate mortgages are at 4.25%, best execution. That’s in the middle of the range we last reported, with 4.375% at the upper end and 4.125% at the lower end. FHA loans are finally seeing a mortgage rate range falling back into the sub-four percent range; depending on the lender FHA mortgage rate numbers are reported between 3.75% and 4.25% best execution. Remember, “best execution” refers to rates offered to extremely well-qualified borrowers with outstanding FICO scores and other | more...

March 21, 2017

Mortgage Rates Lower Post-Fed

By Joe Wallace

Since our last report, the Fed hiked interest rates. That comes as no surprise as it was widely expected to happen, and mortgage loan rates began rising ahead of that announcement as the industry began to anticipate the move. Once the Fed announcement happened, many sources point out that when rates began to fall again, it was due in part to adjustments following that anticipation. There is no single reason why mortgage loan interest rates rise and fall-any number of factors may combine to influence investors in the markets that directly affect these rates. But in the short term, single causes can and often do exert greater influences. Now that the Fed announcement has come and gone, what’s the state of mortgage rates in the short term? In general, they | more...

February 8, 2017

HUD Charges Oklahoma Landlords With Fair Housing Act Violations

By Joe Wallace

Fair Housing Act laws help protect house hunters no matter what phase of the process they might be at, and it also offers protections for those seeking rental housing. Violations of Fair Housing laws can hinder those hoping to buy with FHA loans, conventional loans or other mortgages at some point, even if they aren’t actively looking to purchase at the moment. That’s why we report on Fair Housing cases from time to time-current and future loan applicants should know their rights and what to do if they encounter unfair treatment along the way. HUD recently announced on its official site that it is bringing charges against Oklahoma landlords for violations of Fair housing law. According to a press release on the HUD site that, “…it is charging the landlords | more...

January 30, 2017

HUD Announces Agreement In Fair Housing Cases

By Joe Wallace

HUD has announced agreements with insurance companies in Ohio and Florida following an investigation into violations of Fair Housing Act regulations. We occasionally devote space to these issues because even in situations where the violations involve rental housing or other non-FHA loan transactions, they can affect borrowers seeking to apply for FHA loans. Some borrowers need rental housing to use in the planning stages of a mortgage before they can purchase a home, others may find themselves forced to house hunt due to job relocations, etc. Fair Housing laws protect Americans at all stages of the process of finding a home regardless of renting or buying. This most recent announcement of Fair Housing action from HUD states, “The U.S. Department of Housing and Urban Development (HUD) announced agreements with two | more...

How much can I borrow with an FHA refinance loan?

January 20, 2017

FHA Updates PACE Policy

By Joe Wallace

A new mortgagee letter updates FHA loan policy on properties bought with FHA loans that are “encumbered with a Property Assessed Clean Energy obligation”. Mortgagee Letter 2017-06 updates PACE policy starting with a reminder; “The terms and conditions of a PACE obligation may vary by state, local government, and PACE program. Generally, a PACE obligation is secured and collected in the same manner as a special assessment is treated by the local government; funds obligated are not paid directly by the Borrower to the party providing the PACE financing.” When the sale happens (including foreclosure sales), if a property has “outstanding PACE financing” the obligation will, according to the mortgagee letter, “continue with the property causing the new homeowner to be responsible for the payments on the outstanding PACE amount. | more...

January 11, 2017

FHA MIP Rates For 2017: Revised

By Joe Wallace

The FHA/HUD official site has announced changes to the FHA MIP fee structure for 2017. According to the latest FHA mortgagee letter, “FHA continuously strives to achieve the appropriate balance between meeting the housing needs of the borrowers that FHA’s mortgage insurance programs were created to serve, and also the requirement of minimizing the level of risk to the Mutual Mortgage Insurance Fund undertaken relative to the insurance of those mortgages.” “FHA has determined that the appropriate balance of its statutory operational goals now requires a reduction of the rate of annual MIP charged pursuant to Section 203(c)(2)(B) of the National Housing Act (NHA). As provided in this ML, the total annual MIP charged pursuant to NHA sections 203(c)(2)(B) and (C) for most Title II Single Family forward mortgages has | more...