Articles Tagged With: FHA Updates

June 8, 2015

Things To Do Before Applying For Your FHA Home Loan

If you are in the planning stages of your home buying journey, there are some important milestones you should plan for–things that are crucial to think about before you start filling out your home loan application. One milestone is deciding how much home you can afford to buy. This seems like an obvious move for many reasons, but the amount of your down payment is one factor you shouldn’t overlook when using a home loan calculator or other tools to figure out how much you can spend. When you add up the numbers and arrive at a target home loan amount that’s appropriate to your income level and ability to afford (based on both the amount of the projected mortgage payments AND that amount added in with your current financial | more...

May 29, 2015

FHA Mortgage Loan Interest Rate Trends: Slightly Better

By Joe Wallace

Since the three-day weekend that made this a short trading week, the overall trend in mortgage loan interest rates at the time of this writing has been “hold steady” or slightly lower–but not much. The month of May has seen basically what amounts to a new and higher range in mortgage loan rates overall–though still loan in comparison to previous years–and we’re seeing 30-year fixed rate conventional mortgage rates hovering at or near the 4.0% mark, best execution. Friday’s trends brought the 30-year fixed conventional mortgage loan rates in some best execution instances below 4.0%. Remember, “best execution” means rates offered extremely well-qualified borrowers. Your experience with these rates may vary. FHA mortgage rates have found a comfort zone of 3.75%, not as good as the previously held 3.5% (or | more...

May 22, 2015

FHA Loan Rules, Bankruptcy, and Short Sales

By Joe Wallace

A reader asks, “My bankruptcy was discharged in August of 2012. We did not reaffirm the mortgage either. One year later I short sales the house (August of 2013 it was sold). The short sale is not on my credit report nor are any missed payments. I was in the process of a mortgage modification when I filed bankruptcy. The firm that I used (which was later investigated by the FTC for mortgage fraud) promised they could take 100,000 off my loan (apparently some things are too good to be true). This under the advice of multiple lawyers I filed bankruptcy.” “I worked w a previous lender who put me threw du (or bu- the underwriting test used by fha). I passed that but he later took the approval back | more...

May 20, 2015

HUD Settlement In Pennsylvania Housing Discrimination Case

By Joe Wallace

The FHA/HUD official site has announced an important housing discrimination settlement between HUD and a housing authority in Pennsylvania. According to HUDNo. 15-055, “The U.S. Department of Housing and Urban Development (HUD) announced today a Conciliation Agreement with the Housing Authority of the City of Hazleton, Pennsylvania, settling allegations the housing authority discriminated against Hispanic households.” The agreement, the HUD press release states, resolves claims that the Hazleton, Pennsylvania housing authority, “violated the housing rights of Spanish-speaking applicants and tenants by requiring them to supply interpreters in order to communicate with housing authority staff and by denying them limited English proficiency services.” This, the press release states, is a violation of the Fair Housing Act. “When housing authorities accept HUD funding they are obligated to make their programs and services | more...

May 15, 2015

FHA Appraisals: A Reader Question

By Joe Wallace

A reader sent us a lengthy question recently about FHA appraisals. While won’t reprint the entire message here for the sake of brevity, we’ve kept the most relevant portions: “We are considering a HECM loan. The appraiser came out and we were not impressed. Prior to leaving, he told my husband and I that there was a couple of small things we needed to do before being able to close the loan(some peeling paint and a 1988 Cadillac inherited from my dad that was under our carport that we did not have licensed). Then we get a copy of the appraisal and under improvements he marked NO where it asks if there are any physical conditions that affect the livability, soundness, or structural integrity of the property. However, under reconciliation, | more...

April 29, 2015

FHA Updates HECM Loan Due And Payable Policies

By Joe Wallace

The FHA and HUD have announced more changes to the FHA Home Equity Conversion Mortgage (HECM) loan program. A recent FHA Mortgagee Letter, “Home Equity Conversion Mortgage (HECM) Due and Payable Policies”, and affects all FHA HECM loans that become due and payable on or after July 1, 2015. The updates affect a variety of areas including: –a requirement for mortgagees to provide HUD notice of a HECMs Due and Payable status;–a requirement for mortgagees to provide HUD notice of the initiation of foreclosure;–obtaining required appraisals;–sales of properties securing defaulted or performing HECM loans;–extensions available when marketing a HECM for sale and/or participating in Hardest Hit Funds programs;–curtailment of debenture interest for missed deadlines This mortgagee letter announces FHA’s position on when HECM loans (with case numbers issued before August | more...

April 28, 2015

FHA Loan Program Changes To Help Prevent Foreclosure

By Joe Wallace

On Friday, April 24 2015, the FHA and HUD issued a press release detailing “significant changes” to the Distressed Asset Stabilization Program or DASP. According to HUDNo 15-048, “In an effort to better serve homeowners looking to avoid foreclosure, loan servicers will now be required to delay foreclosure for a year and to evaluate all borrowers for the Home Affordable Modification Program (HAMP) or a similar loss mitigation program.” “HUD is making additional improvements to the Neighborhood Stabilization Outcome (NSO) sales portion of DASP which are aimed at increasing non-profit participation. Updates include giving non-profits a first look at vacant properties, allowing purchasers to re-sell notes to non-profits, and offering a non-profit only pool.” That is a major alteration from the old standard, which permitted lenders to foreclose on a | more...

April 24, 2015

FHA Refinance Loans For Investment Property? A Reader Question

By Joe Wallace

A reader asks, “I have rental property with a mortgage balance of $26000. The property shows a current value of $98900. I would like to refinance but seem to have a problem getting it refinanced? What would you advise me to do in order to utilize my equity to finance another investment.” The scope of this blog is FHA single-family home loans, and we answer questions about FHA loans with that scope in mind. Non-FHA loan related questions that deal with general finance topics may or may not be outside our range of topics. The reader question above may have been submitted under a mistaken assumption that the FHA single family home loan program might include refinance loans (which it does) for investment properties or other non owner-occupied residences (which | more...

April 16, 2015

FHA Mortgage Rate Trends–Mostly Improving Since 9 April

By Joe Wallace

On April 9, 2015, mortgage rates moved higher than they had been all month–not saying much since the month was only nine days old, to be sure. But since that time, rates have improved. There have been some ups and downs (yesterday mortgage rates experienced some weakness depending on the lender, but overall in the last four business days we’ve seen improvements.) but overall we’re still seeing rates holding at or near levels we reported last time. 30-year fixed rate conventional mortgages have been, at the time of this writing, at or near 3.625% (best execution), but in a range that tops out at 3.75% (again, best execution and depending on the lender). FHA mortgage loan rates are holding in a comfort zone between 3.25% and 3.5% best execution. Until | more...

April 15, 2015

Revised FHA Loan Housing Counseling Rules Now In Effect

By Joe Wallace

In our last post, we discussed the HUD press release announcing funding for housing counseling services across the country. Earlier this month, new FHA loan rules took effect which affect a lender’s responsibility to inform borrowers of housing counseling services. The services affected by the new FHA loan rules are intended for those who are at risk of foreclosure on FHA mortgages. According to FHA Mortgagee Letter 2015-04, lenders are required to: “…provide delinquent borrowers with a notice describing the availability of housing counseling offered by HUD-approved housing counseling agencies and by the mortgagee. Mortgagees are currently required to prepare such a notice that provides the information required by FHA.” The lender is required to Mortgagees give affected borrowers all the information included in an FHA/HUD publication titled, “Notification to | more...