November 2, 2011
Allied Home Mortgage Corporation is no longer allowed to do business with the FHA or HUD, according to a November 1, 2011 press release from the Department of Housing and Urban Development. “The U.S. Department of Housing and Urban Development
October 27, 2011
There are many frequently asked questions about FHA loans in connection with rental properties. Some borrowers purchase a home with an FHA insured mortgage and live there for a while, then decide to explore their options for renting the existing home out and purchasing a new one to live in. One of the most common questions in this case has to do with qualifying income for a new FHA loan. “Can I rent my current home and use the income to qualify for a new FHA mortgage?” According to the FHA official site, there was concern that borrowers might exaggerate the amount of rental income received on the first property. To address those concerns, the FHA instituted a new policy which took effect in late 2008. “Beginning with case number | more...
October 26, 2011
A frequently asked question about FHA home loans concerns the length of time it takes to learn whether the loan application has been approved or not. This is a part of the FHA loan process that can be stressful for some borrowers, especially those who have never applied before and don’t know what to expect. The simple answer is that FHA requirements include a rule that the lender must take action on your application and let you know about that action no later than 30 days after the application has been completed and turned in. FHA rules emphasize the application must be complete for this rule to take effect. But what does that mean? Some borrowers mistakenly think submitting partial information on credit data, employment history or other information might | more...
October 25, 2011
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
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 5, 2011
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
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...
September 26, 2011
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 13, 2011
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...
August 2, 2011
When looking for a home to purchase with an FHA loan, some borrowers find themselves in a situation where the results of the appraisal recommend mold abatement. Some potential borrowers challenge the mold abatement requirement–you can find many Q&A forums on real estate issues where posters have stated, “I’ve searched and did not find any documents that say that FHA requires mold to be remediated.” FHA standards for homes to be purchased with an FHA insured mortgage loan include a requirement that the property be free from defects and conditions which could affect the health or safety of the purchaser. A borrower may not find a “chapter and verse” type statement saying “Mold abatement is required”, but the health and safety clauses built into FHA loan regulations can and do | more...