Articles Tagged With: HUD

May 2, 2017

HUD Extends 203(h) Disaster Relief For Louisiana Flood Victims

The Department of Housing and Urban Development has announced an extension of certain disaster relief help for those in certain federal disaster areas in Louisiana. According to a mortgagee letter published on the HUD/FHA official site, HUD announces, “the additional period of eligibility” for Section 203(h) mortgages, which comes as an extension of “Federal Assistance for victims of the March 13, 2016 and August 14, 2016 Presidentially-Declared Major Disaster Areas of Louisiana”. According to the HUD official site, the 203(h) program period of eligibility “is extended for case numbers assigned on or before September 8, 2017” for the following Presidentially-Declared Major Disaster Areas: -Louisiana Severe Storms and Flooding (DR-4263) declared on March 13, 2016; and -Louisiana Severe Storms and Flooding (DR-4277) declared on August 14, 2016. Normally, such assistance is | more...

April 18, 2017

FHA Loans And The 100 Mile Rule: A Reader Question

By Bruce Reichstein

A reader asked us a question about FHA loans and “the 100 mile rule”. “I am currently looking to purchase a home with FHA financing 5 miles from my current home in California. The current home I own is secured with a conventional loan. I would like to rent this home out and buy a larger home and finance it FHA because I dont have very much saved up for a larger down payment. Does the 100 mile rule apply to me?” The reader is asking in response to a post we made earlier this year about military FHA borrowers and occupancy rules for FHA loans. This quote from that original post, referencing FHA loan rules in HUD 4000.1, seems to be the issue of most concern for the reader: | more...

April 17, 2017

April Is National Fair Housing Month

By Joe Wallace

National Fair Housing Month is a bit more than half over, but it’s an important time to raise awareness of Fair Housing laws, how they affect mortgage loan applicants, and how such laws affect renters as well as borrowers. Do you know about your Fair Housing Act rights under the law? The FHA/HUD official site reminds its’ readers, “The Fair Housing Act protects people from discrimination when they are renting, buying, or securing financing for any housing. The prohibitions specifically cover discrimination because of race, color, national origin, religion, sex, disability and the presence of children”. You read that correctly-as a renter, a buyer, or an applicant, your rights include equal consideration regardless of the presence or absence of any of the factors listed above. Fair Housing laws do have | more...

April 11, 2017

Maximum Loan Amounts For FHA Loans

By Joe Wallace

What are the FHA loan rules for maximum loan amounts? The rules for loan amounts are found in the FHA single family home loan rule book, HUD 4000.1 has answers, starting with this from page 155: “A Mortgage that is to be insured by FHA cannot exceed the Nationwide Mortgage Limits, the nationwide area mortgage limit, or the maximum Loan-to-Value (LTV) ratio. The maximum LTV ratios vary depending upon the type of Borrower, type of transaction (purchase or refinance), program type, and stage of construction.” Borrowers sometimes wonder if they can apply for a home loan for more than the purchase price of the home. The answer to such questions depends greatly on what the extra money is to be used for. For forward mortgages and refinance loans alike, FHA | 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...

April 4, 2017

Mortgage Loan Interest Rate Trends: Sharply Lower

By Joe Wallace

Since our last report, mortgage loan interest rates have fallen sharply. Market watchers give at least some of the credit for this to bond market activity, and following a recent persistent upward trend any improvement is a welcome step in the right direction. From Wednesday on, there are a variety of scheduled economic data releases and other events that could (and historically, have) be influential in the continued downward trend. Of course, these scheduled events could also have the opposite effect on mortgage loan rates, so industry professionals will likely be paying individual attention to each of these until week’s end. 30-year fixed rate conventional mortgage loan interest rates were reported at a best execution 4.125%, down from last week’s 4.25%. The big changes are in FHA mortgage loan rates | 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 29, 2017

Cosigners and Co-Borrowers On FHA Loans

By Joe Wallace

In our previous blog post we discussed an FHA loan reader question about co-borrowers and their status. What is the basic difference between a cosigner and a co-borrower and how does an FHA loan work in such cases? FHA loan rules in HUD 4000.1 differentiate between a cosigner and co-borrower; the cosigner, while liable for the loan, does not have any ownership in the property. The co-borrower has both financial responsibility and ownership. Both cosigners and co-borrowers must have a legal primary residence in the United States or be U.S. citizens. Borrowers, co-borrowers, and cosigners all must provide basic information to the lender including Social Security numbers. Co-borrowers and cosigners are subject to the rules of HUD 4000.1 that restrict who can participate in an FHA loan transaction: “A party | more...

March 20, 2017

Fair Housing Act Settlement With Alpine Bank & Trust

By Joe Wallace

The Department of Housing and Urban Development (HUD) has announced a settlement in a Fair Housing case involving an Illinois lender. According to a press release at the HUD official site, a recent settlement with Alpine Bank & Trust settles allegations that, “the Northern Illinois-based lender discriminated against African American and Hispanic mortgage applicants.” According to the press release, HOPE Fair Housing Center located in Wheaton, Illinois, “filed a complaint with HUD claiming the lender’s business service areas excluded majority African-American and Hispanic neighborhoods”. Fair Housing Act regulations make it illegal for any person or company to discriminate against applicants for non-financial reasons such as race, religion, national origin, family status, gender identity, etc. According to the HUD official site, “HOPE Fair Housing Center alleged the bank’s lack of a | more...

February 14, 2017

HUD Announces Relief For Louisiana Tornado Victims

By Joe Wallace

Federal relief is available for those affected by tornadoes in Louisiana. On Monday, February 13th 2017, the U.S. Department of Housing and Urban Development (HUD) announced it will “speed federal disaster assistance to the State of Louisiana and provide support to homeowners and low-income renters forced from their homes due to severe storms, tornadoes, and straight-line winds” according to a press release on the FHA/HUD official site. There has been a federal disaster declaration for Livingston and Orleans parishes. “The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county” according to HUD.gov. What types of assistance are available? Foreclosure relief, rehab loans, rehab refinance loans, and other options. There may also be assistance from FEMA available to affected home owners. According | more...