June 26, 2017

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Articles Published in: January 2015

FHA Loan Rules On Appraisals and Required Corrections: A Reader Question

A reader asks, “Is the seller responsible to pay for all repairs before closing?” Assuming that this reader question is in reference to required corrections or alterations to a home listed by the FHA appraiser, much depends on the type of repairs or corrections required. If repairs or corrections are required to fix hazardous conditions, those fixes must happen and a compliance inspection (where required) must occur before the loan can be approved. Let’s see what HUD 4155.1 Chapter Four says about the appraisal process and required corrections: “In the performance of an FHA appraisal, the appraiser must


FHA Mortgage Loan Rules For The New Mortgage Insurance Premium Cuts

A great deal of reader questions have come in about the FHA’s recent move to cut the annual mortgage insurance premium on FHA loans with case numbers assigned on or after January 26 2015. We thought it was a good time to remind our readers and clarify what the FHA has announced with respect to mortgage loans affected by this new rule. Which mortgage loans are affected by the FHA MIP cuts? According to the FHA mortgagee letter (ML) announcing the cuts, “This ML reduces the rate for annual MIP for all Title II forward mortgages, with terms greater than 15 years, except; –single family forward streamline refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009; –Section 247 mortgages (Hawaiian Homelands) Borrowers | more...


FHA Mortgage Loan Trends

FHA mortgage loan rates kicked off the week more or less unchanged, best execution-wise–the previous two business days had some improvements in rates following a “consolidation” ahead of a highly anticipated announcement from the European Central Bank that had great potential to affect mortgage loan rates depending on investor reaction to the contents of that announcement. With the ECB announcement come and gone, and rates improving after another highly watched announcement by the Fed here at home, we find rates moving back to lows some sources report going down to 2013 levels. That’s great news for those looking for 30-year fixed rate conventional mortgage loans as the best execution rate for those loans has moved to about 3.625% depending on the lender. That rate is not available to all borrowers | more...


FHA Loans, Seasoning Requirements and Legal Assistance: A Reader Question

A reader asks, “Have a question on issue of a legal settlement made on property ,, money to settle suit was borrowed on a promossory note and given to attorneys… few months later owner gave a lien to individual in case of untimely death , deed clearly states that it was NOT a home equity loan and title company agrees that the property is not subject to home equity rules etc,, A reverse mortgage lender tells me that it has to be seasoned as a home equity loan which kills the loan


FHA MIP Cuts: Who Is Affected? A Reader Question

A reader asks, “I am a homeowner with a FHA loan. I bought the house last year, I wanted to know if this will also benefit me or is just for you new perspective home owners? Thanks…” This reader question is in reference to the FHA mortgage insurance premium cut that took effect on Monday January 26, 2015. According to an FHA press release, “the Federal Housing Administration (FHA) will reduce the annual premiums new borrowers will pay by half of a percent.