Articles Tagged With: FHA Updates

August 28, 2015

FHA Announces New Guidelines For Energy Efficient Upgrades

The FHA has issued a press release announcing new guidelines for FHA borrowers who want to add energy-efficient upgrades to their homes. According to HUDNo.15-112, the announcement comes as part of the White House National Clean Energy Summit. The Obama Administration and FHA have new guidelines, “supporting borrowers seeking to make energy efficient improvements to their homes. In todays announcement, FHA expressed the intent to allow borrowers to use Single Family FHA financing for properties with existing Property Assessed Clean Energy (PACE) loans that meet certain conditions” according to the press release. These new tools will help homeowners make smart choices for their pocketbooks and for the environment, said HUD Secretary Julin Castro, quoted in the press release. Castro adds, HUD and the Obama Administration are proud to invest in | more...

August 26, 2015

FHA Mortgage Rate Trends: Slightly Higher After Rough Stock Market Tuesday

By Joe Wallace

Mortgage loan rates weathered the stock market storm on Monday, but Tuesday’s market activity brought slightly higher rates. It’s been a tough time for those watching market activity hoping for a mortgage loan interest rate rally, but numbers are still sub-four percent (best execution) and we even saw reports of some lenders offering 30-year fixed rate conventional best execution rates as low as the FHA comfort zone rate (3.75%) on Monday. But rates edged higher on Tuesday, putting things more solidly into the previously reported 30-year fixed rate conventional mortgage loan rate of 3.875%-which is still prevalent at the time of this writing. Wednesday’s activity, at the time of this writing, hasn’t even emerged solidly, but it’s definitely going to be an interesting ride to the end of the week. | more...

August 26, 2015

FHA Home Loans For Veterans

By Joe Wallace

There are many home loan options for veterans of the United States military, including the VA loan program. But some veterans choose the FHA home loan program instead–there are many reasons why some might choose FHA over a VA loan, and for those who are considering the option, there are some important things to remember about the FHA mortgage loan or refinance loan program. The first is that FHA home loans and refinance loans offer many similar features to VA loans. For example, veterans applying for an FHA mortgage have the option of getting an Energy Efficient Mortgage (EEM) option added to the loan, much in the same way as the VA loan program. An FHA EEM requires the lender and borrower to work together to determine the cost effectiveness | more...

August 21, 2015

FHA Mortgage Rate Trends: Lower After Fed Minutes Are Released

By Joe Wallace

Mortgage loan rates have been in a back-and-forth mode this week. One day they rise, altering closing costs for the most part rather than the actual best execution rate, the next day they fall, with the same result. On Wednesday all eyes were on the release of Fed minutes, which detail the meeting held last month. The details of that report sent investors into activity that benefits mortgage rates, and while the best execution numbers we reported in our last blog post haven’t changed, some borrowers may notice the alterations in the form of lower closing costs as previously mentioned. 30-year fixed rate conventional mortgages were reported at 4.0% best execution at mid-week, with some lenders coming in at sub-four percent best execution rates. Best execution rates are not available | more...

August 20, 2015

FHA Announces New Initiative To Help Expand Credit To Borrowers

By Joe Wallace

The FHA has announced a new initiative designed to help the agency review lending practices of participating lenders and expand credit to potential FHA borrowers. According to HUDNo.15-107,”The Federal Housing Administration today announced a new method for evaluating the lending practices of FHA-approved lenders and understanding the sorts of borrowers they are serving.” That new standard, known as the FHA Supplemental Performance Metric, is designed to enhance the FHA’s existing “compare ratio” and according to the press release, “offer more nuanced insight into a lenders specific performance while encouraging lenders to serve eligible underserved borrowers.” This, the press release says, will assist participating FHA lenders in reviewing the effects of their FHA lending, “at all ends of the credit spectrum in line with FHAs willingness to insure loans to eligible | more...

What happens to my FHA loan in a natural disaster?

August 14, 2015

FHA Loan Income Rules: Does Alimony/Child Support Count As Income?

By Joe Wallace

For any applicant trying to get an FHA loan to purchase a home, the debt-to-income ratio is very important. How much money you have coming in versus how much you have going out for monthly bills and other financial obligations is a very big part of the lender’s calculations to see whether a borrower can afford the new loan. One area that concerns some is whether alimony/child support is able to be used as part of the borrower’s potential income for those calculations. FHA loan rules currently available in HUD 4155.1 have plenty to say on how and why such income might be used. This type of income can indeed by used, as long as it meets FHA minimum requirements for “effective income” or “verifiable income”: “Alimony, child support, or | more...

August 11, 2015

HUD Mortgage Board Takes Action Against Two Lenders

By Joe Wallace

A press release on the FHA/HUD official site announces HUD action against two Texas-based lenders. HUDNo.15-102, published Monday August 10, 2015, states: “The U.S. Department of Housing and Urban Developments Mortgagee Review Board (MRB) today announced settlement agreements with two Texas mortgage lenders following allegations they engaged in a scheme to charge bogus fees to consumers, which improperly inflated mortgages for borrowers purchasing newly constructed manufactured housing.” 11 violations of FHA lending rules were alleged in the case. According to the press release, the HUD Mortgage Review Board claims, “American Home Free Mortgage, LLC (AHFM) of Prosper, Texas, artificially increased mortgage costs by an average of $12,000 per loan through illegitimate fees paid to a company owned and operated by its sales manager. In addition, HUD alleged that there were | more...

August 1, 2015

FHA Mortgage Loan Interest Rate Trends: 60-Day Lows

By Joe Wallace

Mortgage loan rates have been in a recovery mode of sorts over many days–tiny increments of rate improvements have brought closing costs down over time but the basic best execution rates we’ve been reporting on here haven’t changed–until Friday, when a weaker-than-expected jobs data report brought a more dramatic move lower for mortgage rates. The move was sharp enough to pull both conventional 30-year fixed rate mortgage loan interest rates and FHA loan interest rates out of their previously reported best execution range of rates and back into a single number on Friday. Conventional 30-year fixed rate mortgages are now reported at, best execution, 4.0% with some more aggressive lenders offering borrowers with the best FICO scores and credit histories rates in the high three percent range. FHA mortgage loan | more...

July 29, 2015

FHA Refinance Loan Options

By Joe Wallace

Looking for a refinance loan? Do you know what your options are as a homeowner when it comes to refinancing from a non-FHA loan to an FHA mortgage? Or are you in need of an FHA-to-FHA refinance? There are many options available, some of which may surprise you. Did you know there is one type of FHA refinancing which has no FHA-required credit check? Borrowers who are currently paying on adjustable rate mortgages should take a close look at FHA refinance loan options for a variety of reasons. Those who have non-FHA loans can refinance into fixed rate FHA loans, or refinance into another adjustable rate mortgage (ARM)–FHA loan rules permit both options for qualified borrowers. Non-FHA borrowers looking to refinance into an FHA mortgage will be required to get | more...

July 28, 2015

FHA and HUD Recognize A Year Of Opportunity

By Joe Wallace

The FHA and HUD are reminding borrowers about an important change made to the FHA single family home loan program in conjunction with a new HUD press release titled, “A Year of Progress: Delivering on the Promise of Opportunity”. The Department of Housing and Urban Development is approaching its fifth decade of service. The press release states, “As HUD approaches its 50th anniversary, Secretary Castro is laser focused on advancing policies that provide folks with access to quality housing, good schools, transportation and economic opportunity. We recognize housing as a platform for Americans who are striving to improve their lives and break the cycle of poverty for the next generation. As needs for our services have increased, HUD will continue to invest in initiatives that have demonstrated outcomes in helping | more...