Articles Tagged With: HUD

February 8, 2017

HUD Charges Oklahoma Landlords With Fair Housing Act Violations

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 26, 2017

FHA Loan Rules For Gift Funds

By Joe Wallace

FHA loan rules in HUD 4000.1 have specific guidelines where gift funds to the borrower are concerned. Gift funds are commonly used for home loan expenses including down payments, but when the borrower accepts gift funds for the purpose of making that down payment, the funds must meet FHA acceptability standards. What does this mean? FHA loan rules are very precise when it comes to the source of money used for a down payment. A borrower cannot use proceeds from a non-collateralized loan such as a payday loan or credit card cash advance to make a down payment, and if gift funds are used the money must come to the borrower with no obligations. HUD 4000.1 has the guidelines for these gifts, which includes the following definition: “Gifts refer to | more...

January 25, 2017

Appraisal Questions: Bricks

By Joe Wallace

A reader asked a question about the FHA appraisal process in our comments section recently; “I am currently selling my house. The buyer is getting a FHA loan.” “The appraiser asked us to repair any broken brick on the outside of the house. My husband scraped off the parts of the bricks falling apart and filled each hole with mortar and painted it as close to the brick as he could. Will this be an acceptable fix according to the appraiser?” When an FHA appraiser requires corrections as a condition of loan approval, borrowers will likely have to pay for an additional compliance inspection, which allows the appraiser to verify that the corrections were made to the satisfaction of FHA minimum standards. Whether or not a certain correction or repair | more...

January 23, 2017

Mortgage Loan Interest Rate Trends: Higher

By Joe Wallace

Mortgage loan interest rate trends have been up and down within a certain range in the new year, but uncertainty over the new administration in Washington D.C. has investors skittish. Since our last report we’ve seen mortgage loan rates push higher, with some lenders hitting 4.375% territory (best execution). For 30-year fixed rate conventional mortgages, our sources say that means that at the time of this writing, there’s a best execution range that starts at or near 4.125% (a smaller number of lenders offering this) and ending with Friday’s at-or-near 4.375% for other lenders. FHA mortgage rates are at the time of this writing still holding at a best execution 3.75%, but that’s likely to change soon if the upward trend remains. As always, the rates you see listed here | more...

January 18, 2017

Mortgage Rate Trends: Going Lower Again

By Joe Wallace

Since our last report, the mortgage rate trend has swung back to improvements, taking back loses incurred last week and dropping hints that things could be settling into a new range. It’s still early days yet, but industry professionals are talking about these gains in association with weaker stock market performance, talk of European economic issues, and bond market activity. If the current trend persists, we might see rates (best execution) at or near current levels, giving those inclined to float a better picture of where things could go if upward pressure resumes. If you haven’t made a mortgage rate lock commitment with your loan officer, at present it might be easier to set your cut-off; if you decide to “float” until rates improve or cut your losses and lock | more...

January 5, 2017

Fair Housing Complaints: A Reader Question

By Joe Wallace

The Fair Housing Act is a federal law designed to prevent discrimination in all phases of the housing process, whether buying or renting. A reader got in touch with us recently in the comments section to complain about a fair housing issue. “My Mom lives in low income housing and has been discriminated against due to her disability, HPHA not wanting to accommodate her by installing her AC or allowing her to install it herself due to her asthma and breathing problems doctor orders/note saying that she needs this to help with her disabilityshe is being wrongfully evicted, now homeless and is a victim of discrimination and violence against women act Due to HPHA and their property manager…” While there’s no specific question mentioned in this comment aside from, “can | more...

December 21, 2016

FHA Anti-Flipping Rules

By Joe Wallace

In general, FHA requirements and regulations discourage the practice of flipping, which is defined as buying a home (distressed or otherwise) and quickly reselling it at an inflated price. According to the FHA loan single-family rule book, “The eligibility of a Property for a Mortgage insured by FHA is determined by the time that has elapsed between the date the seller has acquired title to the Property and the date of execution of the sales contract that will result in the FHA-insured Mortgage.” HUD 4000.1 defines the sellers date of acquisition as, “the date the seller acquired legal ownership of that Property. FHA defines the resale date as the date of execution of the sales contract by all parties intending to finance the Property with an FHA-insured Mortgage”. Homes sold | more...

December 20, 2016

Fair Housing Case Settlement In Nevada

By Joe Wallace

As the FHA/HUD official site says, “Disability is the most common basis of complaint filed with HUD and its partner agencies. Last year alone, HUD considered more than 4,500 disability-related complaints or nearly 55 percent of all fair housing complaints.” That is one reason why we report Fair Housing cases here-these complaints are not limited to rental markets, and even if they were, such discrimination affects a potential borrower’s house hunting prospects. If you are forced to relocate because of job or family issues and need to purchase a home while renting in the meantime, your entire experience may be affected negatively by housing discrimination. And sometimes the only way to stop continued illegal practices is for the injured party to file a report and have the matter investigated by | more...

November 16, 2016

FHA Reverse Mortgage Counseling

By Joe Wallace

We addressed FHA reverse mortgages in a recent blog post, discussing several aspects of these home equity conversion mortgages. One thing that makes the FHA reverse mortgage program unique from FHA refinance loan options is that these types of loans (also known as FHA HECM loans) are only for qualified borrowers age 62 or older who own or almost own their homes outright. The FHA official site describes HECM loans as follows: “If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may participate in FHA’s Home Equity Conversion Mortgage (HECM) program. The HECM is FHA’s reverse mortgage program that enables you to withdraw a portion of your home’s equity. You | more...

November 14, 2016

HUD Announces Fair Housing Act Charges, Settlements

By Joe Wallace

The Department of Housing and Urban Development has announced a new Fair Housing Act case in Florida, and settlements of similar cases in two other states. According to a press release at the HUD official site, ” The U.S. Department of Housing and Urban Development (HUD) announced today that it is charging landlords in South Florida with discrimination against tenants with disabilities. Meanwhile, HUD is announcing separate agreements with landlords in Nevada and Massachusetts resolving similar charges.” According to the press release HUDNo.16-169, “HUD charged the owner of Hillcrest East Building No. 22, a multifamily development in Hollywood, Florida; the properties management company, Rhodes Management; and a previous president of the homeowners association with housing discrimination for failing to make reasonable accommodations, publishing discriminatory notices and statements, and attempting to | more...