Articles Tagged With: HUD

April 23, 2015

FHA Loan Rule Questions: Chapter 7 Bankruptcy

A reader asks, “I had a Chapter 7 Bankruptcy discharged on 09/16/13. My home was not included in the BK. I have owned the home for 3 years and have never missed or been late on a payment. We are considering selling our current home and purchasing another one closer to where my wife and I work.” “We have over $100,000 in equity in our current home. We have a combined income of $240,000 a year. We have reestablished our credit and have scores in the high 600′s. We currently have an FHA loan. What is the waiting period to qualify for another FHA loan after CH. 7 BK discharge? I have heard 2 years. Is there any way to reduce this time?” The FHA has a Frequently Asked Questions | more...

When Is An FHA Loan Better Than A Conventional Loan?

April 20, 2015

FHA Home Loan Rules On Fair Housing

By Joe Wallace

April is Fair Housing Month, and the FHA/HUD official site has a variety of resources for borrowers who want to know more about Fair Housing Act laws, and how such laws pertain to both borrowers and lenders. The FHA and HUD are quite serious about equal access to housing, but what do FHA home loan rules say about Fair Housing rules and how are participating FHA lenders expected to comply with those rules? HUD 4155.2 Chapter One, Section B has some important guidelines: “HUD is responsible for enforcing the Fair Housing Act. The Fair Housing Act, contained in 42 U.S.C. 3605, prohibits discrimination in residential real estate-related transactions, such as • making or purchasing loans or providing other financial assistance, and • the terms and conditions for making available loans | more...

April 3, 2015

April Is Fair Housing Month

By Joe Wallace

April is Fair Housing Month. The FHA and HUD have made announcements every year at this time to raise public awareness of fair housing laws such as the Fair Housing Act and FHA/HUD policy for equal housing access for all regardless of gender, race, national origin, belief, sexual orientation, disability, family status, etc. “Every American deserves a fair chance to secure safe and stable housing,” said HUD Secretary Julián Castro, who was quoted in a new mortgagee letter published by the FHA/HUD. “At the core of everything we do to improve housing opportunities is a firm belief that no family should ever be denied the opportunity to own or rent a home because of what they look like, where they come from, how they get around, how they speak, who | more...

March 10, 2015

Buying A Home With An FHA Loan? Advice And Assistance From The FHA/HUD

By Joe Wallace

If you are considering the purchase of a home using an FHA loan offered by a participating FHA lender, you don’t have to start the planning process in the dark. The FHA official site, www.FHA.gov, has a page of resources and advice you can use long before you start house hunting that can help you be a much better prepared FHA borrower. Not sure how much home you can afford before you start your journey to find the right property? The FHA Home Economics PDF is a very good place to start your research. You can also check out the FHA’s helpful list of housing programs broken down by state–there may be resources in your home state for first time home buyers, or buying assistance programs near you. Explore the list | more...

February 20, 2015

FHA Equal Access Loan Rules Updated

By Joe Wallace

In recent weeks, we’ve reported on the FHA and HUD’s update to Equal Access guidelines as listed in FHA Mortgagee Letter 2015-05. One important area of that mortgagee letter we haven’t written about yet is the FHA and HUD’s authority for changing its Equal Access rules. To review, ML 2015-05 was issued to update its rules for Equal Access for all regardless of sexual orientation or gender identity. According to the mortgagee letter: “On February 3, 2012, HUD published a final rule entitled Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity (77 FR 5662) (“Equal Access Rule or “rule”). The final rule ensures that housing across HUD programs are open to all eligible individuals regardless of actual or perceived sexual orientation, gender identity, or | more...

February 14, 2015

FHA/HUD Update Housing Counseling Requirements

By Joe Wallace

The FHA and HUD have issued a Mortgagee Letter updating housing counseling requirements for borrowers who may face delinquency on an FHA home loan. According to FHA Mortgagee Letter 2015-4, ‘Revised Notification to Homeowners of Availability of Housing Counseling Services”, there is updated content and, “a model template for the notice of the availability of HUD-approved housing counseling.” “The ‘Notification to Homeowners of Availability of Housing Counseling Services’ provides a description of the potential services and benefits of housing counseling to delinquent borrowers.” According to the mortgagee letter, lenders must provide delinquent borrowers, “with a notice describing the availability of housing counseling offered by HUD-approved housing counseling agencies and by the mortgagee.” According to the FHA official site, lenders are “currently required to prepare such a notice that provides the | more...

January 8, 2015

FHA Mortgage Loan Closing Costs: Prepaid Items, Per Diem Interest

By Joe Wallace

In our last post, we answered a reader question about FHA loan closing costs. This type of question is important for borrowers to ask as the answers can help you save and prepare for the costs of getting a home loan. There are several items a borrower may be required to pay at or before the loan closes in order to finalize the transaction. Some of these items include pre-paid expenses such as per diem interest, and discount points (when the borrower chooses to pay these points). Pre-paid expenses are defined in HUD 4155.1 Chapter Five as follows: “Prepaid items are collected at closing to cover  accrued and unaccrued hazard insurance premiums  mortgage insurance premiums  taxes  per diem interest, and  other similar fees and charges.” | more...

December 10, 2014

HUD Announces Changes To Making Home Affordable Program

By Joe Wallace

If you go to www.FHA.gov and look under the Press Releases section, you’ll find a recent update to the HUD Making Home Affordable program–an update that could mean thousands of dollars for some who take part in that HUD program. Some borrowers who got into trouble with their mortgages during the housing market crisis were able to take advantage of the Making Home Affordable program; the most recent update is good news for those who have been successful in it. According to a recent HUD press release, HUDNo.14-150: “WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today announced enhancements to programs under Making Home Affordable (MHA) to better assist struggling homeowners and communities still recovering from the effects of the | more...

November 28, 2014

Fair Housing Act Violations: A Case in Puerto Rico

By Joe Wallace

A press release on the FHA/HUD official site reveals that a Puerto Rico condo association discriminated against a person with disabilities in violation of federal fair housing laws. According to HUDNo.14-142, “The U.S. Department of Housing and Urban Development (HUD) announced today it has ordered Castillo Condominium Association, in San Juan, Puerto Rico, to pay $20,000 in damages plus a $16,000 civil penalty after finding that the association violated the Fair Housing Act when it refused to allow a resident with disabilities to keep his emotional support animal.” Support animals and/or service animals have a different status than what might be considered an “ordinary pet”. According to the FHA/HUD official site, “The Fair Housing Act makes it unlawful to refuse to make reasonable accommodations in policies or practices when such | more...

October 29, 2014

FHA Loan Rules and Seller Costs: A Reader Question

By Joe Wallace

A reader asks, “What costs will a seller incur if a buyer is using an FHA loan to purchase?” That is a difficult question to answer for a variety of reasons–state real estate law, lender requirements and FHA loan rules all have a say in the closing costs of a FHA home loan. There’s no itemized list of seller costs listed in the FHA loan rulebook, HUD 4155.1, but the FHA does make a list of certain costs and/or seller contributions to the sale that are and are not permitted. For example, the borrower is not to be charged for pest/termite inspections. The borrower can’t pay for the lender’s legal counsel, and the FHA has a set of regulations that dictate how much the seller can contribute toward the sale | more...