Articles Tagged With: HUD

July 5, 2011

Can I Be Turned Down For an FHA Loan Even Though I Have Good Credit?

FHA home loans depend on several factors for loan approval. An FHA borrower must have a history of reliable payments, dependable income that is likely to continue into the future, and the right amount of income versus money paid out for monthly financial obligations. That amount, called the debt-to-income ratio, is one of the most important factors in determining whether or not to approve or deny an FHA mortgage loan application. There’s no minimum or maximum income limit for an FHA loan. The FHA looks at the debt-to-income ratio instead, using that as the yardstick which measures the applicant’s ability to pay the monthly FHA mortgage payment along with all other financial obligations. That’s why the government and your lender requires a full accounting of your current debts, including insurance | more...

July 1, 2011

HUD Announces New Disclosure Notice Requirements For Military Borrowers

By Joe Wallace

There are many situations which might make an FHA insured loan attractive to a military borrower who chooses not to use or cannot currently use their VA home loan benefit. Some military members purchased a home with an FHA loan before joining the military; others may choose FHA loan options based on personal preference or because they cannot use VA loan eligibility at the time of purchase. No matter what the reasons for choosing an FHA home loan, conventional mortgage, or VA insured loan, service members have some extra protection in many cases from foreclosure proceedings thanks to the Servicemembers Civil Relief Act (SCRA). Military members on active duty in wartime can get mortgage help, lower interest rates, and foreclosure protection as described in the act by notifying creditors in | more...

June 30, 2011

FHA Refinancing And Ownership Issues

By Joe Wallace

Real estate can be a confusing business for those not used to dealing with the daily ins and outs of the industry. But a first-time FHA borrower isn’t the only one likely to have some initial trouble navigating the rules and regulations covering real estate transactions, FHA loan requirements and other issues. A first-time applicant for refinancing also has plenty of questions about the process. One of the most frequently asked questions about refinancing involves an important ownership issue. Suppose a borrower purchased a home with an FHA insured loan, and either had the loan assumed, added someone to the title, or otherwise brought another person into property ownership without having them named on the original FHA loan? Can someone apply for an FHA refinancing loan if they own the | more...

June 29, 2011

FHA Loans And Appraisal Repair Requirements

By Joe Wallace

When a home is appraised by an FHA appraiser, there may be

June 29, 2011

FHA Condo Loan Rules

By Joe Wallace

In previous blog posts, we’ve discussed the different types of FHA loans available and the various types of properties that can be purchased with an FHA insured home loan. Those properties include typical suburban houses, manufactured homes, multi-family units and condominiums. FHA condominium loans are more complex than other loans because the FHA has requirements when it comes to these loans. Borrowers can’t purchase just any condominium unit–it has to be on the FHA’s list of approved condominium projects in order to be considered for an FHA mortgage. That’s one reason why the FHA publishes a searchable list of approved condo projects on its website at https://entp.hud.gov/idapp/html/condlook.cfm. What does it take for a condominium project to be approved by the FHA so a borrower can apply for a loan to | more...

June 27, 2011

FHA Loan Limits For Some Counties Could Decrease in October, 2011

By Joe Wallace

The FHA has made an important announcement that could affect the loan limit on new FHA mortgages in some areas on or after October 1, 2011. According to FHA.gov, “Barring Congressional action, Federal Housing Administration (FHA) loan limits will revert back to loan limits determined under the Housing and Economic Recovery Act (HERA) for loans insured by FHA on or after October 1, 2011. As a result, FHA loan limits would likely decline in 669 of the 3,334 counties or county equivalents that are eligible for FHA insurance.” During the housing crisis of 2008, the FHA temporarily increased FHA loan limits. According to the FHA announcement, “The Economic Stimulus Act (ESA) enacted in February 2008 stipulated that FHA loan limits be set temporarily at 125 percent of the median house | more...

June 27, 2011

FHA Loans, Credit, and Bankruptcy

By Joe Wallace

We’ve had a lot of recent questions about how bankruptcy and related issues can affect a borrower’s chances to be approved for an FHA home loan. The good news is that filing for bankruptcy does not automatically disqualify a borrower from getting an FHA insured loan. Just like any other loan applicant, the FHA and lender examine several factors when deciding to approve an FHA loan. A borrower must be able to show stable income and a record of dependable payments regardless of a bankruptcy filing, so a borrower’s habits and track record in the wake of a Chapter 7 or Chapter 13 bankruptcy proceeding is just as important as a “typical” FHA loan applicant’s. How does a bankruptcy affect a borrower’s eligibility for an FHA mortgage? The short answer | more...

June 23, 2011

FHA Loan Down Payments

By Joe Wallace

The down payment issue is one that brings many would-be conventional borrowers to an FHA lender. After seeing what some conventional loans require for a down payment, the FHA minimum 3.5% is a definite advantage to a first-time home buyer. But when a borrower is doing research on FHA loans versus conventional equivalents, sometimes the details can be a bit confusing. One area some have trouble understanding (at first) is the difference between the required 3.5% FHA loan down payment for a typical home purchase and the $100 down payment required on some HUD home purchases. A HUD home purchase is not the same as taking out an FHA mortgage in the usual way. HUD homes are properties owned by the Department of Housing and Urban Development–homes that have been | more...

June 23, 2011

What is the FHA 203(b) Loan Program?

By Joe Wallace

If you’re new to FHA home loans, it’s easy to get confused by the different types of FHA insured mortgages available. There are FHA 203(b) loans, the FHA 203(k) and a host of others. Some borrowers are ready, after seeing the alphabet soup of different programs a borrower could apply for, to throw up their hands and just ask for “the FHA loan everybody applies for when they want a new home.” That loan is known as the FHA 203(b), the single-family mortgage insurance program most commonly used all over America. According to the FHA official site, the FHA 203(b) “may be used to purchase or refinance a new or existing one-to-four family home in both urban and rural areas including manufactured homes on permanent foundations. Typically, lenders offer terms | more...

June 22, 2011

FHA Announces Help For Montana, Vermont Storm Victims

By Joe Wallace

2011 has been a bad year for storms and floods. In the past several months, Illinois, Minnesota, Missouri and many other states have been hit with tornadoes and flooding. Some areas get minor damage, while others are declared Presidential disaster areas. Recently the President also had to make a disaster declaration for parts of Montana and Vermont as storms and flooding there forced people from their homes. HUD Secretary Shaun Donovan has also made some announcements of his own, stating that HUD will rush federal disaster assistance to these areas to support home owners and low-income renters there. FHA borrowers affected by these storms should know help is on the way. According to recent press releases from HUD, Secretary Donovan says,