Articles Published in: September 2015

September 12, 2015

Mortgage Loan Interest Rate Trends

Mortgage loan interest rates have been back and forth this week, but markets that directly affect the rates seem to be getting more “defensive” as we get closer to next Wednesday. That is when the Fed will make some kind of an announcement about interest rates and whether they will get hiked sooner instead of later. 30-year fixed rate conventional mortgage loans are holding, best execution, at or near 4.0%. FHA mortgage loan interest rates are also holding steady, best execution, at 3.75% though your mileage may vary depending on the lender. As always, “best execution” refers to ideal circumstances with a borrower that has outstanding FICO scores and loan repayment history among other things. Your experience may vary. These rates are not available to all borrowers or from all | more...

Can I buy a manufactured home with an FHA loan?

September 11, 2015

Power Of Attorney Rules Under HUD 4000.1

By Joe Wallace

We’ve written a lot in recent days about the changes coming to FHA single family loan rules. Come September 14, 2015, a new HUD policy handbook on FHA single-family home loans goes into effect, incorporating updates, revisions and re-statements of existing policy. Under HUD 4000.1, there are a set of rules about the use of power of attorney in order to advance an FHA home loan. In our last blog post we discussed using electronic signatures and some basic power of attorney information. FHA loans can be made using a power of attorney under specific circumstances and according to certain procedures. What are those procedures? According to the rules in HUD 4000.1 (again, which become the official policy as of September 14 2015 unless otherwise stated in the new handbook) | more...

September 11, 2015

Signature Requirements For FHA Home Loans Under HUD 4000.1

By Joe Wallace

On September 14, 2015, the new HUD policy handbook on FHA single-family home loans goes into effect. There are plenty of changes, revisions and other statements of policy. Borrowers should know that certain changes have already gone into effect as of March, others won’t be effective until September 14. Once the handbook is launched officially, lenders will use it to refer to when in need of FHA loan policy or clarification of that policy. Consider one important issue for certain FHA loan applicants including military members and incapacitated borrowers–the use electronic signatures and/or of a Power Of Attorney in order to advance the FHA loan application. In HUD 4000.1, Chapter Two, Section A has a section titled, “Policy on Use of Electronic Signatures” which includes the following definition: “An Electronic | more...

September 10, 2015

Need Help Preparing For An FHA Mortgage Loan? HUD Resources By State

By Joe Wallace

We give out a lot of advice about the planning stages of your FHA home loan. Did you know it’s best to begin planning at least a year ahead of time for a new home loan? Doing so gives you time to save up or continue to save for a down payment, related fees and expenses, pull your credit reports and other tasks that should happen long before you are ready to fill out your application. One area we strongly encourage buyers to examine is housing counseling. Pre-purchase housing counseling can help new FHA loan applicants navigate the entire process more confidently and better prepared. But where can a potential FHA borrower turn to get this housing counseling? The best thing to do is to contact the FHA directly for | more...

September 10, 2015

New FHA Single Family Loan Policy Handbook HUD 4000.1: Superseded Policies

By Joe Wallace

At the time of this writing there are five days until the launch of the new FHA Single Family Home Loan policy book, HUD 4000.1. We have written about certain policies and procedures that will take effect on September 14, 2015, the official launch date for HUD 4000.1. But there are some changes to FHA loan rules that coincide with the launch of the new handbook that are important to know–some FHA mortgagee letters have been superseded in their entirety. The FHA/HUD official site has a comprehensive list of those mortgagee letters, which includes the following chart: As you can see, there is a range of mortgagee letters that will be replaced, from 1994 all the way up to the year 2014. Not ALL mortgagee letters in that year/date range | more...

September 9, 2015

Energy Efficient Mortgages And Updated FHA/HUD Rules

By Joe Wallace

In a recent blog post we discussed the pending release of HUD 4000.1, which is the new FHA single family home loan policy handbook. Among the changes and updates to take effect on September 14, 2015 when the handbook is launched, there are some guidelines about FHA Energy Efficient Mortgages (EEM) and the financing of non-EEM energy efficient upgrades/improvements. One area we didn’t cover in our last blog post about the EEM issue is the dollar amount limit for these upgrades. How much does the FHA allow the borrower to finance for such improvements? According to the FHA official site, which has a FAQ section on the most common questions about new rules and updates that will be part of HUD 4000.1, we learn the following about the dollar amount | more...

September 9, 2015

HUD 4000.1 Frequently Asked Questions: EEM

By Joe Wallace

On September 14, 2015, the new FHA Single Family Home Loan policy handbook goes into effect. There are changes to existing policy, clarifications of existing policy, and other useful information for lenders and borrowers alike. We’re examining some frequently asked questions about FHA loan rules–the answers to which will be official FHA policy when the new handbook launches on the 14th. One area that has a variety of questions concerns the FHA’s Energy Efficient Mortgage (EEM) program. Can a borrower finance energy efficient repairs without taking out an FHA EEM? What are the borrower’s options as described in HUD 4000.1? According to the FHA/HUD official site: “The borrower can finance the cost of eligible energy-related weatherization improvements in conjunction with: –Section 203(b) purchase or no cash-out refinance –Section 203(h) Mortgage | more...

September 8, 2015

FHA Mortgage Loan Interest Rate Trends: Higher After Holiday Weekend

By Joe Wallace

Last week mortgage loan rates attempted some downward momentum, but it wasn’t anything close to being a decisive move lower. There is a great deal of anticipation at the moment–all eyes are on the Fed who are due for another meeting where the fate of U.S. interest rates could be decided–will there be a rate hike announced in September? Will the Fed hold off on raising interest rates until December? Those questions seem to be holding mortgage rates in a sideways-to-slightly-higher situation in the short term. After the three-day weekend, mortgage loan rates edged slightly higher, putting 30-year fixed rate conventional mortgages more squarely in 4.0% best execution territory, up from the previous range between 3.875% and 4.0%. So far, FHA mortgage loan rates are holding steady, best execution, at | more...

What happens to my FHA loan in a natural disaster?

September 8, 2015

What Can Hurt My Chances For FHA Loan Approval?

By Joe Wallace

There has been a lot written about how FHA home loans work, and what it takes to get approved for an FHA mortgage. Knowing what the lender expects from your loan application is one thing, but knowing what could hurt your chances for loan approval can be just as important. FICO scores are obviously one of the main initial concerns for the lender–you may find lenders who want FICO scores of 620 or higher. But those credit ratings aren’t the only thing that affects that first impression factor. Coming to the FHA loan process with any late payments on your credit history in the last 12 months is not recommended–anything less than a solid record of on-time payment on all financial obligations for the previous 12 months can hurt your | more...

September 8, 2015

HUD 4000.1 Single Family Home Loan Rules: Frequently Asked Questions

By Joe Wallace

A new policy guide for FHA single-family home loans goes into effect on September 14, 2015. It’s called HUD 4000.1 and will have all the FHA home loan policy guidance contained within it, with some new revisions, updates, and other material borrowers and lenders should know about. In order to help ease the transition to the new rules (where applicable) the FHA and HUD official site includes a Frequently Asked Questions (FAQ) section about the new rules. Some of those questions are specifically for the lender, others include guidelines that affect borrowers and lenders alike. Some of the “new” material in HUD 4000.1 is a restatement or re-emphasis of existing policy, other portions may be slightly modified or changed in more substantial ways, depending. Here’s one portion of the FAQ | more...