Articles Tagged With: HUD

October 28, 2011

Factors That Affect Your FHA Loan Amount

FHA loan applicants naturally want to know how much mortgage they are qualified to get–how much can an FHA borrower receive on an FHA insured home loan? The answer isn’t as simple as a fixed dollar amount. There are many things that factor in to the final FHA home loan amount and not all of them are connected to the sale price of the home. Your FHA loan amount is influenced by the current state of the housing market, the interest rate on the loan, the asking price on the property and the fair market value of the home. The first and most obvious factor that can affect an FHA home loan amount is the borrower’s qualifications. How much are you qualified to borrow based on your income and debt | more...

October 25, 2011

FHA Loans and Non-Purchasing Spouses

By Joe Wallace

One FHA loan frequently asked question relates to married FHA borrowers with non-purchasing or non-occupying spouses. When an FHA borrower applies for a loan and the spouse does not co-sign or co-borrower, are there situations where the spouse could be required to sign the loan? According to FHA loan rules, this issue depends greatly on state law. The FHA itself has no requirement for a non-borrowing spouse to sign, but states which require certain types of documentation for “valid and enforceable” loans could need a signature from the non-borrowing spouse. But what kind of signature? In these cases, the state law usually requires a signature to indicate the non-borrowing spouse’s status in connection with the loan. The non-borrower isn’t obligated by law to become financially responsible–just to state they are | more...

October 21, 2011

Getting Ready For An FHA Home Loan

By Joe Wallace

Buying a home is a big decision. There are many factors to consider when trying to prepare for the commitment of home ownership, and an FHA loan applicant can learn a great deal by examining an FHA loan application and using an FHA mortgage calculator to learn what kind of financial details come into play. FHA loan pre-qualifying questions at sites like FHA.com (a private company, not a government website) ask some very important starter questions you can use to begin your research. For example, do you know how much you’re willing to spend on the home? Many borrowers at the beginning of the research process have a hard time judging what prices are fair for homes in their area and which ones might need some negotiation. Anyone who feels | more...

October 11, 2011

HUD Charges New York Real Estate Company With Fair Housing Act Violations

By Joe Wallace

On occasion you’ll find reports here about the latest actions brought by HUD against those in the housing industry suspected of violating the Fair Housing Act, RESPA, and other federal anti-discrimination laws. We write about these things for two reasons–one is to raise awareness of the issues, but the other is to remind FHA loan applicants and borrowers that there is recourse when anti-discrimination laws are violated. One of the reasons the FHA and HUD are able to bring legal actions against those who break these laws is because the victims file a complaint–the victim is often the first line of defense against those who discriminate. Without reporting the problem, the FHA and HUD have a much tougher time preventing housing discrimination. Many of the headlines we report have to | more...

October 5, 2011

FHA Loans and the Borrower’s Rights

By Joe Wallace

FHA mortgages have a number of features which make them more advantageous for qualified borrowers than many conventional loans. A low down payment requirement is one of those advantages, as is more forgiving requirements for credit history. Contrary to what some believe, there is also no maximum income limit for a typical single-family FHA home loan. In addition to these advantages, there are also a list of rights all borrowers have that protect them in the loan application and purchasing process. Did you know all borrowers have the right to know which fees are refundable and which are not should the loan agreement be canceled? You have the right to have these fees explained to you before you commit. Home buyers also have the right to be fully informed when | more...

October 5, 2011

FHA Loans: What is a Residential Mortgage Credit Report?

By Joe Wallace

Borrowers who seek FHA insured home loans are required to submit credit, employment and income information to the lender in order to be approved for the loan. The borrower’s information is reviewed by the lender, but must also be verified to insure the information is current and accurate. In addition to verifying the information submitted, the lender is also required to get credit reports on the borrower. But what happens when the borrower disputes information on a credit report? For example, if a credit report states that a collection action is outstanding, but the borrower claims the bill has been paid, the lender may be required to use something called a Residential Mortgage Credit Report (RMCR) instead of the standard credit report known as a three repository merged credit report | more...

October 4, 2011

FHA Loans: Do They Require a Background Check?

By Joe Wallace

Newcomers to FHA loans and home buying in general often wonder how extensive the credit check might be; some wonder if the lender goes beyond examining credit scores and employment history. Given the amount of detail lenders require in order to process FHA home loan applications, it’s not unreasonable to wonder if a background check is part of the application process. FHA requirements for FHA insured mortgage loans do state a credit check is needed that includes residency information, employment history and other details to give an accurate picture of an applicant’s background. The borrower is not “investigated” for details outside of the information needed to determine whether he or she is a good credit risk, but a 2010 law does require additional steps for some types of refinancing loans | more...

September 26, 2011

How Can I Get a FHA Housing Counselor for an FHA Loan?

By Joe Wallace

Home buying can be an intimidating process, especially for first-time house hunters. That’s one reason why the FHA has a network of housing counselors and an assistance hotline available; if you’re looking for an FHA home loan and need help getting started, that assistance is definitely available. At the FHA official site, you’ll read the following; “Want advice on buying a home, renting, default, foreclosure avoidance, credit issues or reverse mortgages? HUD sponsors housing counseling agencies throughout the country to provide free or low cost advice.” When you call the FHA at (800) 569-4287, you’ll get access to a phone-based search system that can refer you to a housing counseling agency near you. You can also search for a housing counseling agency near you online at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm by using the | more...

September 16, 2011

FHA Loans: Chinese Drywall Update

By Joe Wallace

Earlier this year we posted an update on a study related to contaminated drywall imported from China; the FHA has issued several press releases regarding the contaminated product which may have been used to construct homes eventually purchased with FHA insured mortgages. In May 2010, a U.S. Consumer Product Safety Commission press release identified a group of manufacturers,

September 13, 2011

FHA Loans and Discrimination

By Joe Wallace

A recent press release issued by the Department of Housing and Urban Development underscores the FHA and HUD’s commitment to the Fair Housing act. The release details actions taken by HUD against a Wisconsin landlord for alleged violations of the Fair Housing Act. While a press release about a discrimination issue connected with rental property might not seem to have much to do with FHA home loans at first glance, it does underscore the need for FHA borrowers to report such discrimination wherever they encounter it in the loan or house hunting process. According to HUD press release 11-207, “The U.S. Department of Housing and Urban Development (HUD) is charging a La Crosse County, Wisconsin landlord with violating the Fair Housing Act for refusing to rent a house to a | more...