Articles Tagged With: Mortgage Insurance

April 15, 2011

Does the FHA Owe You Money?

Does the FHA owe you money? Some are led to believe so based on third-party advertising on television, the Internet, direct mail and via telemarketing calls, but should you believe these advertising efforts? According to the FHA, there’s a very simple way to determine whether the FHA owes you money; “If you had an FHA-insured mortgage, you may be eligible for a refund from HUD/FHA”, FHA.gov says, explaining that some borrowers are owed a partial refund of mortgage insurance premiums under the right circumstances. Only borrowers who have loans originated after September 1, 1983, paid up-front mortgage insurance at closing time and most importantly, did not default on mortgage payments are eligible to get this refund money.

April 13, 2011

FHA Anti-Discrimination Rules and HUD Fair Housing Grants

By Joe Wallace

As we’ve mentioned elsewhere in this blog, the FHA and HUD have strict anti-discrimination requirements built in to the FHA loan process. The Fair Housing Act prohibits discrimination in any part of the real estate process, and while the borrower is often the first line of defense in terms of reporting and identifying discriminatory housing practices, the FHA anti-discrimination system works. But no system is perfect, and the FHA/HUD continuously look for new ways to strengthen the system in order to provide equal credit and housing access to all applicants. The only thing that should determine whether an applicant can buy a home with an FHA-insured mortgage is whether or not the borrower meets FHA and lender qualifications for the loan. That’s one reason why HUD recently announced a $41million | 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 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...

April 4, 2011

FHA Loans: What To Expect at Closing Time

By Joe Wallace

When you go to purchase a home with an FHA insured loan, what happens

March 15, 2011

FHA Loans and Housing Counseling

By Bruce Reichstein

First time home buyers and experienced house hunters alike can learn a lot from FHA-approved housing counseling agencies. For newcomers, learning the ins and outs of FHA mortgages can help a borrower prepare, budget and save money for the loan process while getting an education on how to avoid predatory lending and real estate scams. For experienced buyers, housing counseling is still a good idea–especially if it’s been many years since the original home purchase. Many things about the FHA loan process have changed over the years and an update on old information can be extremely helpful. The federal government believes in FHA-approved and HUD-approved housing counseling. So much so that in late 2010 the Obama administration approved more than $70 million in housing counseling grants for 500 organizations across | more...

March 12, 2011

FHA Reverse Mortgages: What Makes Them Come Due?

By Joe Wallace

One of the most attractive features of an FHA reverse mortgage for some applicants is that the loan does not come due until the applicant dies or sells the property. There are no monthly mortgage payments on an FHA Reverse Mortgage, also known as an FHA Home Equity Conversion Mortgage. Instead, the loan is paid off as described above (when the owner dies or sells the home). The borrower–who must be age 62 or older–gets the proceeds from the loan to use as needed. But there are issues which could make a HECM loan due immediately–what could force the lender to call in the loan immediately? There are several scenarios. The terms of an FHA reverse mortgage require timely payment of property taxes, hazard insurance, and any other financial obligations | more...

March 7, 2011

FHA Refund Facts

By Joe Wallace

When purchasing a home with an FHA loan, one of the requirements is to pay an Up Front Mortgage Insurance premium or UFMIP. FHA mortgage loan applicants must budget for both an UFMIP and a monthly mortgage insurance payment that goes towards the annual Mortgage Insurance Premium. After a certain amount of time, some borrowers may be eligible for an FHA mortgage insurance premium based on a set of qualifying factors from the FHA. FHA Refund Fact—FHA borrowers may be eligible for a partial refund of their insurance premium if the loan closed after September 1, 1983 AND UFMIP was paid at closing time. FHA Refund Fact–this refund is available only to those who meet the qualifying criteria listed above AND who did not default on mortgage payments at any | more...

February 21, 2011

How to Shop For an FHA Home Loan

By Joe Wallace

Applying for an FHA loan is, in the minds of some borrowers, the beginning of the process. But when you fill out an application for an FHA insured mortgage, you should actually be ending one process and starting another. One of the most important aspects of getting an FHA loan is finding the right lender and the most favorable terms. But how should an FHA borrower do that? Some go into their FHA loan research thinking the only real data needed is a list of interest rates on offer and calculating the monthly payment amounts is enough.

February 9, 2011

FHA Home Loans: The HUD-1 Settlement Statement

By Joe Wallace

Buying a home with an FHA loan involves a process with a set of milestones along the way. The first of set of milestones includes finding a suitable home, negotiating a price, applying and being approved for a home loan and agreeing to the terms and conditions. When it's finally time to close the deal, sign on the dotted line and get ready to take possession of the property, there's another important part of the process--getting a HUD-1 Settlement Statement.