Articles Tagged With: FHA

October 29, 2020

HUD Announces Changes To Exterior-Only Appraisal Guidelines For FHA Purchase Loans

When the FHA and HUD began adjusting policies to accommodate social distancing requirements meant to mitigate COVID-19, one of the measures it started was the use of desktop-only and exterior-only appraisals. This meant that an FHA appraiser conducting a home inspection was no longer required (temporarily) to step into the home to perform the appraisal. The appraisal could be accomplished in person from the exterior only (hence the name of the “exterior-only” appraisal) or by using a computer in a desktop-only type of review of the property. These measures were meant to be strictly temporary and had expiration dates when these modifications to FHA policy would expire. But later, the FHA and HUD decided to extend the deadlines in light of the fact that coronavirus emergency did not abate in | more...

October 21, 2020

FHA and HUD Announce New Automated Loan Processing System

By Joe Wallace

The Federal Housing Administration has announced a new automated underwriting system for use by participating lenders who process FHA Single-Family home loans. The new system allows lenders to electronically submit loan application data for single family forward mortgages directly to tbe FHA and, “receive mortgage insurance eligibility scoring decisions generated from FHA’s Total Mortgage Scorecard. “The launch of FHA’s first direct automated underwriting system is a huge milestone for the over one million borrowers on average who rely on FHA insurance annually,” according to Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade, who was quoted in an FHA press release. Wade adds, “We’re excited to deliver this enhanced automated underwriting capability specifically for FHA-insured lending because it will streamline processes for everyone, including consumers.” This new system has | more...

September 23, 2020

Getting Ready For An FHA Home Loan Refinance

By Joe Wallace

Are you interested in a lower mortgage payment or interest rate on your home loan? Are you looking to convert the equity you’ve built up in your home into cash? There are plenty of reasons to consider refinancing–do you need out of an adjustable-rate mortgage (ARM) and into a fixed-rate loan? All of these options are open to financially qualified borrowers who apply for an FHA refinance loan and you do NOT have to be a first-time homebuyer or first-time homeowner to be approved for an FHA refinance loan. Many of the same steps you took for your original home loan application are applicable when you begin planning to refinance your mortgage; you should pull your credit reports are early as possible in the planning stages. Many consumers find it | more...

September 16, 2020

New FHA Home Loan Guidelines Announced

By Joe Wallace

The FHA and HUD have written permanent new COVID-19-related loan approval guidelines for those who need to apply for an FHA mortgage but come to the home loan application process with a previous mortgage forbearance. Ever since the coronavirus emergency came to the United States, the FHA and HUD have offered borrowers mortgage relief, and now that relief and measures similar to it won’t be a liability for those who need to apply for a new FHA mortgage. Other forms of coronavirus relief have been temporary but not this time. The new rules announced by the FHA are announced as a permanent modification to FHA loan rules that instruct the lender on how to approve new mortgage loan applications for borrowers who have applied for home loan forbearance in the | more...

September 10, 2020

FHA Appraisal Rules: What You Should Know

By Bruce Reichstein

The FHA appraisal process is a requirement. You can’t purchase a home with an FHA mortgage unless there has been an appraisal on the property to determine the fair market value of the home and to ensure the property meets FHA minimum standards. Today’s appraisal standards for FHA home loans do NOT include stepping out onto the roof or physically entering difficult-to-access spaces, which is why you should never purchase a home without arranging a home inspection. The appraisal requirements for your home purchase can be found in HUD 4000.1. These requirements apply to proposed construction, new construction, and existing construction properties. According to HUD 4000.1, “The Mortgagee must evaluate the appraisal and any supporting documentation to determine if the Property complies with HUDs Property Acceptability Criteria. Existing and New | more...

September 9, 2020

FHA Home Loans: The Occupancy Rules (And More) You Need To Know

By Joe Wallace

Can you use an FHA home loan to buy investment property you plan to rent out to others? This is a question many wonder about, and the answer is tied to the FHA loan occupancy requirements for these mortgages. FHA loan rules for all single-family home loans are described in the lender’s handbook, commonly known as HUD 4000.1. FHA loan rules include a variety of instructions for the lender that direct the financial institution on how to process and approve FHA home loans. But FHA loan rules don’t just apply to lenders and other mortgage professionals, some regulations are also written for the borrower. Did you know that FHA single-family mortgage loans are intended for owner-occupiers only? The rules listed in HUD 4000.1 are clear–the borrower must take possession of | more...

August 31, 2020

HUD Extends COVID-19 Foreclosure Moratorium For A Third Time

By Bruce Reichstein

The FHA and HUD have announced a third extension of the coronavirus foreclosure and eviction moratorium announced earlier this year to help homeowners affected by the global COVID-19 pandemic outbreak. This extension is extended until the end of 2020 and is intended to help those with FHA mortgages “focus on financial recovery”. The original measures were passed as part of the Coronavirus Relief and Economic Security Act, also known as the CARES Act. According to a press release issued by the FHA and HUD, “This extension provides an additional four months of housing security to homeowners, as they will not fear losing their homes as they work to recover financially from the adverse impacts of the pandemic. “ HUD officials went on the record about this extension stating that, “…homeownership | more...

August 26, 2020

FHA Home Loan Advice For Disaster Victims

By Bruce Reichstein

At the time of this writing, multiple natural disasters are affecting homeowners from California to the Gulf Coast. This, in addition to COVID-19 concerns makes for a lot of hardship for those who have had to evacuate, and for those who have experienced damaged homes and lost property. The FHA and HUD have specific disaster-relief policies on the books that are intended to help those affected by natural disasters recover from them. FHA loan rules include limited foreclosure moratorium procedures for borrowers, and there is help in the form of FHA rehabilitation loans specifically for disaster victims. However, this relief is provided to those who reside in areas that have been declared as federal disaster areas. The President must make such a declaration (such as the one made in California | more...

August 25, 2020

HUD Approves Conciliation Agreements in Arkansas Fair Housing Discrimination Case

By Joe Wallace

Housing discrimination at any stage–buying, renting, financing, etc.–is a violation of federal law. The Fair Housing Act protects borrowers from being denied housing based on non-financial criteria including race, family status, sexual identity, etc. The Department of Housing and Urban Development has announced agreements in an Arkansas Fair Housing discrimination case. According to a press release issued by HUD, the agency has approved three Conciliation Agreements with the owners and property management company of Springdale Ridge Apartments in Springdale, Arkansas. HUD says these three agreements resolve complaints that the owners and management of Springdale Ridge Apartments “discriminated against several residents because of their national origin and retaliated against an employee living on site who sought to inform the residents of their fair housing rights” according to the HUD press release. | more...

August 10, 2020

FHA One-Time Close Loan Rules: Buying Land To Build On

By Joe Wallace

You can build a home on your own lot, even as a first-time home buyer. Thanks to the FHA single-family loan program, which includes a construction loan option, you can build a home instead of buying an existing construction house AND take advantage of low FHA loan down payment requirements. FHA loan rules require only a 3.5% down payment even for construction loans, making the option to build instead of buy within reach of many who are just now exploring their options for becoming a home owner. But when considering a construction loan it’s good to remember that you don’t have to own land already–not all construction loan borrowers own their own property and need to purchase the lot as part of the loan. Building Your Home With A Construction | more...