Category Archives: FHA Requirements
FHA Loan Reader Question: Down Payment Funds for FHA Mortgages
A reader asks, “Just for clarification, can tax credits be used in calculating the required down payment? I have always been told they can not. Also if they use a credit card for a deposit it can not be used in the calculation. Is this correct?” Tax credits are not included in the FHA’s list
FHA Loan Reader Questions: Loan Approval For Self Employed Borrowers
A reader asks, “Is it true that FHA will not approve a loan if you have only been self-employed at your current business for 1 1/2 years? Applied for an FHA loan, was self-employed in a retail business for 5 years, sold my interest in the business and opened another retail business. My newest business
FHA Loans: Rights and Responsibilities
According to the FHA and HUD, FHA loans come with certain rights and responsibilities. Some borrowers don’t realize they have these rights or know what the lender’s obligation to the borrower might be under FHA/HUD rules and the Real Estate Settlement Procedures Act (RESPA). Knowing makes for an informed borrower–someone empowered to take action in
FHA Loan Reader Question: Rules on PMI
A reader asks, “My loan is 635,000 and my home is appraised at 795,000. When would my PMI be canceled or do I have to wait for 5 yrs premium? Do all FHA loans @ 30 years have to pay PMI, and what can I do to avoid PMI?” Before answering this reader’s question, let’s
FHA Appraisals and Reconsideration of Value
When an FHA assigned appraiser submits his or her report and the fair market value of a given property is established, sometimes the buyer or seller may disagree with that determination of value. Can the FHA appraisal be appealed? There are some circumstances where a reconsideration of value may be warranted. According to the FHA,
FHA Loan Reader Questions: Appraisal Requirements For Peeling Paint
A reader asks, “If the buyer of a home built before 1978 is using an FHA mortgage to purchase, can I assume the appraisal is required to include a note if any chipping or peeling paint was observed both inside and outside of the home? Is there any written verbiage that states what the Appraisal
FHA Loan Rules Vs. Lender Rules
There’s a common theme among many of our most frequently asked questions about FHA guaranteed home loans; “Why do the FHA rules say one thing, while my lender says another?” In many cases this question has to do with FHA rules covering appraisals, minimum property requirements, or even the minimum waiting period required after foreclosure
FHA Loan Reader Question: Chapter 7 Bankruptcy and Foreclosure Actions
A reader asks, “I filed Chapter 7 in 2010 and only 1 item was included. I filed due to divorce in 2007 and ex spouse did not pay house payments and he was evicted in 1/09 and home was padlocked and forgotten about by B of A. After so many letters and calls B of
FHA Loan Credit Score Requirements
The FHA recently published “The Facts on FHA” on the official blog of the Department of Housing and Urban Development. One of the highlights of that post included a list of actions FHA and HUD have taken since 2009–more steps “to eliminate unnecessary credit risk and assure strong premium revenue flows than any Administration in
FHA Loan Questions: Mortgage Insurance Payments
A reader asks, “I am refinancing my home with FHA. I am financing $54,540.00 and the appraisal (by FHA) is $180,000.00. Since I have almost $125,000.00 in equity why are they making me purchase FHA mortgage insurance at $50.00 a month? How long will I have to pay this on a 30 year loan at
