Articles Tagged With: HUD

July 7, 2015

Mortgage Loan Interest Rate Trends: Decisively Lower

We’ve been watching as mortgage loan interest rates overall have moved higher this summer; the upward trend brought 30-year fixed rate conventional mortgage loan rates back into the low four percent zone, best execution. The FHA mortgage loan interest rates followed suit, but only very late in the trend–we recently watched as FHA mortgage loan rates broke out of the previously long-held 3.75% comfort zone and into a range of best execution rates with 3.75% at the low end and 4.0% at the high end. Greek economic headlines have been responsible for at least some of the volatility in recent weeks, and in light of Sunday’s referendum voting No in regard to a set of changes proposed by its creditors in the Eurozone, the fact that Monday’s rate behavior took | more...

June 29, 2015

FHA & HUD On The Recent Supreme Court Fair Housing Decision

By Joe Wallace

There has rightfully been a great deal of attention on last Friday’s ruling by the Supreme Court on marriage equality. But last week’s Supreme Court actions also included other important decisions, one of which affects those seeking a place to live and the right to do so under the Fair Housing Act. On Thursday, June 25 2015, the FHA and HUD official site was updated to include a press statement from HUD about the court’s decision in a Texas housing discrimination case: “Today, the U.S. Supreme Court reaffirmed an important legal principle in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc. The Justices found that the Fair Housing Act not only prohibits intentional acts of discrimination, but also housing practices that have an unjustified discriminatory | more...

June 23, 2015

FHA Loans For Eligible Properties

By Joe Wallace

Recently we posted about two types of property you cannot purchase using an FHA home loan: houseboats and recreational vehicles. The reasons you cannot get an FHA-guaranteed home loan for these things is because they cannot be affixed to a permanent foundation. So what kinds of property can you purchase–or refinance–with an FHA loan? Many would assume that a typical suburban home is allowed, and that is true. But so are condo units in FHA-approved condominium projects, manufactured homes, and many other types of property you might not find in a typical neighborhood in the ‘burbs. FHA loan rules currently found in HUD 4155.2 at the time of this writing spell out the list of properties a lender may offer FHA loans for. They include the following guidelines to the | more...

June 16, 2015

FHA Mortgage Loan Interest Rate Trends: Holding Steady Ahead Of Fed Announcement

By Joe Wallace

Mortgage loan interest rates are holding steady ahead of an important and much anticipated announcement by the Fed on Wednesday. The Fed does not set mortgage loan interest rates, but as we have seen in the past with the Fed’s handing of Quantitative Easing (QE) that Fed announcements can and do cause a reaction in the markets that directly affect mortgage loan rates. So Wednesday will definitely be a day to watch. At the time of this writing, we’re seeing some sources report best execution rates for 30-year fixed rate conventional mortgage loans at 4.125%, though others offer a best execution range with 4.25% at the top and 4.125% at the bottom. If the Fed were to announce a rate hike on Wednesday, that could bring higher mortgage loan rates | more...

June 12, 2015

HUD Secretary Castro on LGBT Month

By Joe Wallace

On the FHA/HUD official site, there’s a blog post by HUD Secretary Julian Castro, which announces that June is Lesbian, Gay, Bisexual, and Transgender Month, described by Castro as, “a time to recognize the lasting contributions that these Americans have made to our nation, and to honor the progress thats been achieved in securing equal opportunity for all.” He adds, “Right now, were in the midst of a period of transformative change. In recent years, barriers that once blocked too many of our fellow Americans from living and loving freely have come tumbling down. In 2013, the Supreme Court struck down the Defense of Marriage Act, helping ensure that all couples are treated fairly under the law. Same-sex couples are now able to get married in 37 states. And earlier | more...

June 10, 2015

HUD Settlement In North Miami Beach Condo Housing Discrimination Case

By Joe Wallace

Housing discrimination is a violation of federal law. Sometimes that discrimination happens at the time a borrower applies for a home loan, other times it happens when the house hunter is looking for a home. But what about situations where a borrower has applied for a home loan, FHA or otherwise, closes the deal and moves in, only to find discrimination waiting for them once they are legally occupying the property? Such a case recently made headlines in North Miami Beach. The HUD official site has announced a settlement in a housing discrimination case in Florida. According to the HUDNo. 15-069, “The U.S. Department of Housing and Urban Development announced today an agreement with a North Miami Beach condominium association settling allegations its board president harassed and made discriminatory remarks | more...

June 8, 2015

FHA Appraisals and Loan Approval

By Joe Wallace

When you are ready to commit to buying a home with an FHA mortgage, one of the big steps toward making that happen is the appraisal process. Borrowers sometimes confuse FHA appraisals with a home inspection, but the appraisal is not a complete, top-to-bottom review of the home. A property may be appraised and approved for the loan, but still contain issues unknown to the borrower. That is why a home inspection is so important. How does the appraisal process work? An assigned FHA approved appraiser comes to the home and personally walks through it, noting any obvious defects in workmanship, code compliance issues, and other things that could require attention as a condition of FHA loan approval. Sometimes there are no issues and the home “passes” the FHA appraisal | more...

May 29, 2015

FHA HECM Loans With Set-Aside Accounts For Property Taxes

By Joe Wallace

The FHA and HUD have been making a number of revisions to the FHA Home Equity Conversion Mortgage program (FHA HECM) including changing the nature of payouts based on the type of HECM loan (adjustable rate or fixed rate) and many other alterations. One of the most recent changes is how the FHA expects participating lenders to deal with unpaid property taxes on an FHA HECM, which technically can result in the loan being declared due and payable. Some lenders and borrowers go into a HECM loan with an arrangement to have a set-aside account created specifically for the purpose of paying property taxes to avoid problems later down the line. But what happens if a HECM borrower lets that set-aside account lapse? When the property taxes begin to go | more...

When Is An FHA Loan Better Than A Conventional Loan?

May 19, 2015

FHA Loans, Foreclosure, and Credit Reports: A Reader Question

By Joe Wallace

A reader asks, “Suntrust Mortgage foreclosed on me in 2010. I had asked for a loan modification and they closed anyway. I had an equity line and I just found out that was placed on my credit report. I found out that my home sold for more than the 1st loan but they never paid the 2nd line of credit, both being with suntrust. when I call suntrust, all they say is any information given will be used to collect a debt. I do not owe that amount on my credit report and they will not do anything about it.” “I am one of the 2,200 in north Carolina that was foreclosed on improperly. I will be retiring from a local government office soon and cannot get a loan due | more...

April 24, 2015

FHA Home Loans and Tax Lien Repayment Plans: A Reader Question

By Joe Wallace

A reader asks, “I have a payment plan on a tax lien from 2009 which I have been paying on time for a few years. Other than that, my credit is perfect. I am wondering if this would be okay for an FHA loan. I have records from IRS showing that this is being paid and can present them as well.” This is an important question. FHA loan rules do not permit borrowers who are delinquent on federal debts to apply for an FHA home loan until that delinquency has been addressed. But what about situations like the reader question, where there is no delinquency, but the federal debt still exists? FHA loan rules that govern the tax lien issue can be found in HUD 4155.1, Chapter Four, Section A. | more...