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Articles Tagged With: HUD

April 7, 2011

More on FHA Loans for More Than One Home

By Joe Wallace

In recent posts, we’ve discussed the FHA rules for borrowers who want to apply for a second FHA insured loan in addition to the one they already hold. Generally speaking, the FHA does not allow people to have two FHA home loans at the same time, but there is a degree of flexibility in the rules–borrowers who want to buy a second home with an FHA mortgage are only allowed to do so under specific circumstances. For example, someone who relocates to a new area that is not within a reasonable commuting distance from the first home may be allowed to apply for an FHA loan to purchase a second property. The same is true when a home owner outgrows the first home because it no longer has room for | more...

 

April 6, 2011

FHA Loans: Can A Borrower Have More Than One? (Part Two)

By Joe Wallace

In our last blog post we discussed FHA loans and whether a borrower can apply for a second one while maintaining the first. This situation is different than refinancing or getting a second mortgage–the situation in question involves the borrower’s ability under FHA regulations to buy another property with a new FHA insured loan. The FHA only allows this under specific circumstances. For example, a borrower who relocates to a new area outside a “reasonable commuting distance” may be allowed to apply for a second FHA loan to buy a new property in the new location. In such cases the borrower is allowed to apply for a new loan but isn’t forced to sell the old property. This makes the old home a possible rental unit under the right circumstances–the | more...

 

April 6, 2011

FHA Loans: Can a Borrower Have More Than One?

By Joe Wallace

For the typical home owner, applying for an FHA loan is a major financial commitment. The monthly mortgage payments are an important part of any budget and borrowers are encouraged to plan carefully before closing the deal to make sure they will be able to afford the loan over the lifetime of the FHA insured mortgage. Some FHA borrowers have circumstances that get them thinking about a second FHA loan for any number of reasons. Some borrowers decide to invest in real estate, others may be required to relocate to another state for career purposes, others may be non-occupying co-borrowers on an FHA loan. Can a borrower have more than one FHA loan at a time? On the surface, the FHA answer seems to be no. According to the FHA, | more...

 

April 5, 2011

FHA Home Loan Flood Insurance Rules

By Joe Wallace

In March 2011, FHA rules changed for properties located in special flood zones or near coastal areas. In the past, the FHA had “strongly encouraged” mortgagees to get a flood zone determination independent of any appraisal; now FHA rules make flood zone determination a requirement for properties. FHA Mortgagee Letter 2010-43 says “FHA now requires that all Mortgagees obtain a flood zone determination on all properties instead of strongly encouraging such action.” FHA adds, “lenders are now “required to obtain life-of-loan a flood zone determination services, certification independent of any assessment made by the appraiser…” Flood zone determination can affect a property’s eligibility for an FHA loan, depending on the circumstances. For example, you may be able to apply for an FHA insured mortgage on a home in a special | more...

 

March 31, 2011

FHA Loan Facts About Loan Applications

By Bruce Reichstein

If you’re new to the FHA loan process, there are many things to learn, and it’s easy to assume things about an FHA mortgage that might not be true. Did you know there are federal laws that require specific steps

 

March 29, 2011

FHA Refinancing Loans-Rule Clarifications

By Joe Wallace

In February of 2011, the FHA released clarification to its rules covering FHA Streamline Refinancing Mortgages, designed to be implemented 60 days from the issuance of FHA Mortgagee Letter 2011-11, sent on February 14, 2011. The FHA clarified rules for the Streamline Refinancing Loan, which previously had language requiring specific, tangible benefits to the borrower such as a reduction in interest rates or monthly mortgage payments. There is still a requirement for FHA Streamline Refinancing Loans to have a specific benefit to the borrower, but the FHA