Articles Tagged With: HUD

January 26, 2011

How FHA Loan Limits Work

If you're a first-time home buyer looking to buy a home with an FHA loan, there are quite a few new terms and phrases to get familiar with. Anyone who has priced a home probably knows a lot more about the ups and downs of the housing market when it comes to the value of a particular home in a specific neighborhood...but newcomers to the FHA loan process may wonder if the homes they are viewing are worth the asking price and whether or not they can qualify for an FHA guaranteed loan to meet that asking price. There are several factors that go into the final amount of an FHA home loan. One of those factors is the appraised value of the property--how much the FHA deems the property | more...

January 26, 2011

FHA Loans and Foreclosure: a Timeline

By Bruce Reichstein

With home foreclosures still in the news even several years after the housing crisis of 2008, we've written a fair amount on topics related to foreclosure on FHA home loans. Default and foreclosure are often preventable if the buyer takes action early; in some cases a simple bit of additional information is the only thing a borrower needs to take action that can save the home. Missing one FHA mortgage loan payment isn't good, but it is not the end of the world if the buyer contacts the loan officer and the FHA to discuss next steps. But what happens when the buyer misses the a second payment? The FHA says when the second payment in a row is missed, the bank will definitely reach out to the homeowner, but | more...

January 25, 2011

FHA Loans: How Many Payments Can Be Missed Before Foreclosure Starts?

By Joe Wallace

When FHA borrowers get into financial trouble, the best thing to do is to get in touch with the FHA and the lender immediately to start damage control. This helps avoid the borrower going into default or foreclosure on the FHA loan. Some borrowers mistakenly think that they are in foreclosure territory after missing one or two payments--but many more wrongly believe they have much more time even after missing two or more payments before the foreclosure proceedings start. The truth is that the foreclosure often varies depending on the state and the lender. How much time does a borrower have before going into default and foreclosure in general?

January 20, 2011

FHA Loans and Non-Residential Use

By Bruce Reichstein

An FHA insured home loan for a single family property has rules that govern the use of the home when it comes to what the FHA defines as "non-residential" purposes. FHA requirements say appraisers must evaluate a property on a square footage basis for homes that have a portion of that footage dedicated to business use. FHA rules say that any home, condo or multi-unit property must use no more than 25% of the square footage for business or non-residential use.

January 20, 2011

FHA Loans for Unique Properties

By Joe Wallace

House hunting has some unique challenges depending on the type of property a buyer wants. When an FHA loan applicant finds a home that isn't quite standard but still desirable, the buyer and seller alike may be a bit nervous when it's time to have the property looked over by an FHA assigned appraiser. Sometimes establishing fair market value isn't the reason for those nervous feelings; the buyer and/or seller might be worried the property won't get appraised at all because of those features.

January 19, 2011

What is the FHA Definition of a Manufactured Home?

By Joe Wallace

FHA home loans are available for mobile homes, manufactured homes and/or modular homes. How does the FHA define a manufactured home and how is it different than a new construction or existing construction suburban home? Much depends on the status of the manufactured home and how it is assembled. According to the FHA official site, a manufactured home differs from a new construction project in one very important way.

January 18, 2011

Title I Loan Facts

By Bruce Reichstein

There are many options available to FHA borrowers to make improvements on the property they bought with an FHA guaranteed loan. One option is the Title I program, which allows property owners to make "non luxury" improvements to a home, which may include construction of new structures in some cases. As with all other FHA loans and HUD programs, the FHA does not lend the money. It insures Title I loans the same way it does with FHA home loans; the borrower and a participating lender work together on the application and terms. Title I loans are for borrowers with single-family homes, multi-family properties, and manufactured homes.

January 17, 2011

FHA Loans and Predatory Lending–Ask an Agent

By Bruce Reichstein

When a first time home buyer wants to apply for an FHA home loan, they have a lot of learning to do about the whole process. The marketplace is full of reputable lenders, but as with any industry there are some individuals and even whole companies with business practices designed to take advantage of the lack of knowledge a newcomer might have. That's one reason the FHA offers a collection of resources for house hunters which includes plenty of advice on how to avoid predatory lending.

January 14, 2011

FHA Appraisal Facts

By Bruce Reichstein

The appraisal process is one of the most important aspects of the FHA loan process. Once the buyer has applied for an FHA guaranteed loan and has established that he or she is a good credit risk, the next phase of the process--finding a suitable home and making an offer--is directly affected by the appraisal system. The rules say an FHA-approved appraiser must view the property to establish the fair market value of the home. But there are a number of issues that the buyer should know about--things that affect the process that have nothing to do with the appraisal itself.

January 14, 2011

FHA Condo Loans

By Joe Wallace

FHA loans come in many different types. Not all house hunters want the same thing from their FHA mortgages, and FHA planners have anticipated this by creating many different options for those who want to borrow money with an FHA-insured loan. Those options are not limited to the terms and conditions of the FHA loan itself. There are many different types of properties a potential home owner can include on the search for a new home. The typical suburban home is just one option. Some buyers want the house, the yard, and the driveway. But what about those who live in the city? The FHA offers guaranteed loans for condominium units as well as traditional houses. FHA condo loans are a bit more involved than a typical home purchase, but | more...