Articles Tagged With: HUD

September 22, 2016

HUD Announces Final Rule For Equal Access

The Department of Housing and Urban Development (HUD) has announced a new final rule that promises important protections for all Americans seeking housing, regardless of their sexual orientation or gender identity. According to a press release on the HUD official site, the new final rule is known as, “Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity“. The press release says the final rule affects everything from FHA mortgage loan programs to housing services and benefits. “Following what had previously been a practice encouraged by HUD, providers that operate single-sex projects using funds awarded through the Departments Office of Community Planning and Development (CPD) will now be required to provide all individuals, including transgender individuals and other individuals who do not identify with the sex | more...

September 16, 2016

HUD Announces Fair Housing Protections For Borrowers With Limited English Proficiency

By Joe Wallace

It’s known as “LEP” or “limited English proficiency, and has been an issue that directly affects legally binding agreements including home loans for as long as there have been such arrangements made in the United States. But now, LEP is being addressed directly through guidance from the Department of Housing and Urban Development, as described in a recent press release on the HUD official site. “The U.S. Department of Housing and Urban Development (HUD) today issued ‘Limited English Proficiency’ (LEP) guidance that addresses how the Fair Housing Act would apply to claims of housing discrimination brought by people because they do not speak, read, or write English proficiently. More than 25 million people in the United States do not communicate proficiently in English.” The Fair Housing Act makes it illegal | more...

September 14, 2016

HUD To Publish New Final Rule And Fair Housing Act Guidance

By Joe Wallace

The Department of Housing and Urban Development is set to publish a new final rule that, among other things, extends Fair Housing protections to victims of domestic violence and sexual harassment. According to a press release on the HUD official site, the agency is “formalizing legal standards under the Fair Housing Act for sexual and other forms of harassment in housing. In addition, HUD is issuing Fair Housing Act guidance on local nuisance ordinances that may lead to housing discrimination against survivors of domestic violence and other persons in need of emergency services.” These are important protections for those seeking FHA home loans (or any other type of mortgage) but also for renters, house hunters, etc. According to the press release, “HUDs final Harassment Rule is titled Quid Pro Quo | more...

September 12, 2016

Mortgage Loan Interest Rate Trends: 60-Day Highs

By Joe Wallace

Mortgage rates turned up sharply on Friday after a press conference by the European Central Bank (ECB). There is speculation among market watchers that Friday could be the beginnings of an upward trend in rates, but the talk at the time of this writing is just that-speculation. However, even though past performance does not guarantee future results (especially where markets are concerned) it may be wise to consider the advice of the market watcher for now-we simply can’t predict which way markets might swing next in a post-Brexit climate that includes both the Fed and ECB talking about the future of monetary policy with regards to interest rates, etc. While it’s true that best execution rates for 30-year fixed rate conventional mortgages look the same on paper at the time | more...

August 31, 2016

FHA Loan Debt To Income Ratio Rules: Student Loans

By Joe Wallace

When the lender is adding up an FHA loan applicant’s income and monthly financial obligations for the purpose of calculating debt ratios, there are some debts that can be more complicated than others. Student loans, for example, can be tricky because a borrower may have student loan debt that is in “deferred” status, while others may be paying on their loans at the time of the loan application or soon thereafter. Here’s a recent reader question on the subject: “I cannot find anything that talks about NON deferred student loans. I have a client with a $63 payment on their credit report ($25,000 student loan balance). The loan is NOT in deferment, he pays $63 per month. The u/w is telling me I must use the greater of 1% of | more...

August 26, 2016

FHA Loan Rules: Post-Bankruptcy

By Joe Wallace

There are many questions about FHA loans and bankruptcy. Here’s an example of the kinds of questions we answer on a regular basis about becoming eligible once more for an FHA mortgage in the wake of a bankruptcy discharge: “My credit score is low and I will be discharged from bankruptcy coming this November. What can I do to raise my credit score and qualify for a FHA loan?” It’s very important for borrowers in this situation to know that FHA loan rules in HUD 4000.1 require a minimum waiting time (also known as a ‘seasoning period’) before a borrower can apply for an FHA mortgage. This waiting time begins at the time the bankruptcy is discharged, not from when it was initially filed. The waiting time depends on the | more...

FHA Loans And Natural Disasters: What You Should Know

August 23, 2016

FHA Loan Questions: Identity Of Interest

By Joe Wallace

A reader asks, “I am intending on purchasing a home from my boyfriend’s father. He bought the home for 70k and he is willing to sell it to me for 75k. We are in no way related. Is our relationship an identity of interest?” The “identity of interest” issue arises when a family member wants to sell a property to another family member who is using an FHA mortgage to buy the home. An identity of interest transaction can also be between two people who are business associates. HUD 4000.1 defines an identity of interest transaction as follows: “An Identity-of-Interest Transaction is a sale between parties with an existing Business Relationship or between Family Members. Business Relationship refers to an association between individuals or companies entered into for commercial purposes.” | more...

August 18, 2016

HUD Announces Federal Relief For Louisiana Flood Victims

By Joe Wallace

The Department of Housing and Urban Development has announced federal assistance for victims of recent flooding in Louisiana. According to HUDNo.16-122, “HUD 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 and flooding.” Earlier, the press release states, the President, “issued a disaster declaration for Acadia, Ascension, Avoyelles, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Point Coupee, St. Landry, St. Martin, St. Tammany, Vermilion, Washington and West Feliciana” as well as East Baton Rouge, Livingston, St. Helena and Tangipahoaparishes. One of the benefits of this act is that victims of the flooding have access to foreclosure relief and other help. Families who may have been forced from their homes need to know | more...

August 16, 2016

FHA Loan Rules: Rental Income

By Joe Wallace

When purchasing a home with an FHA single-family loan, a prospective borrower may want to know whether rental income from the property to be purchased with an FHA mortgage can be counted in the borrower’s debt-to-income ratio. FHA loan rules do permit this under specific circumstances, and borrowers should know that FHA loan occupancy rules apply. Borrowers are required to occupy the home as their primary residence, but for those purchasing property with more than one unit, the rental issue is a factor many consider. The rules for rental income are found in HUD 4000.1 and include the following: “The Mortgagee may consider Rental Income from existing and prospective tenants if documented in accordance with the following requirements. Rental Income from the subject Property may be considered Effective Income when | more...

August 9, 2016

HUD Announces Settlement In Housing Discrimination Case Against Richmond, Virginia

By Joe Wallace

The Department of Housing and Urban Development has announced a settlement in a housing discrimination case brought against the city of Richmond, Virginia. According to a August 4, 2016 press release on the HUD official site, “The U.S. Department of Housing and Urban Development (HUD) announced today that it has approved an agreement with the City of Richmond, Virginia, settling 14 complaints of housing discrimination filed against the City by Hispanic residents. The complaints alleged that the City of Richmond selectively enforced its code requirements against residents of the Citys mobile home parks, who are predominantly Hispanic.” The Fair Housing Act makes it illegal to discriminate against people on the basis of their national origin. That includes discriminatory or selective enforcement of housing regulations or other issues related to enforcement. | more...