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Articles Published in: June 2016

Mortgage Loan Rate Trends

June 14, 2016

Mortgage Loan Interest Rate Trends: More Gains

By Joe Wallace

At the time of this writing, the end of the market day (Tuesday June 14) hasn’t happened yet. But the news about mortgage loan interest rates–even without the most current end-of-day interest rate data–is definitely encouraging for anyone considering a home loan at the present. Rates have fallen to lows not seen in quite some time. 30-year fixed rate mortgage loan interest rates (best execution) were reported at the end of the business day on Monday at a range between 3.625% at the upper end of the range and an FHA loan-challenging 3.5% at the lower end of the range. Some are saying these are the lowest we’ve seen rates in several years, while others are using the phrase “close to all-time lows” to describe what is being seen, best | more...

 

June 13, 2016

For Consumers In Need Of Help Preparing For An FHA Mortgage

By Joe Wallace

Many borrowers feel intimidated by the home buying process. Are you unsure about credit score issues, pre-purchase budget issues, down payment requirements, or appraisal rules? It’s easy to understand why; buying a home is a major investment and it’s definitely a step worth taking the time to research and save up for properly. Why does it take a year or better to get prepared for the home loan application? What are the basic credit score requirements for an FHA mortgage? Can I refinance my home at some point with a cash-out loan? These are all important questions. There are other commonly asked questions, too. Many involve dollar amounts for down payments, appraisal fees, or other loan expenses. We get asked these questions frequently in the comments section, but unfortunately there’s | more...

 

June 13, 2016

HUD Announces First Healthy Homes Month

By Joe Wallace

The Department of Housing and Urban Development has announced that June is the first-ever Healthy Homes Month, and is working to raise awareness of hazards in the home including lead-based paint, asbestos, and ways to make the home a healthier environment. According to a press release at the HUD official site (HUD.gov), “Most Americans spend up to 90 percent of their time indoors, exposing them to home health and safety hazards ranging from asthma triggers to potentially deadly pollutants like asbestos and lead-based paint. To reinforce the connection between a family’s health and their homes, the U.S. Department of Housing and Urban Development is declaring this June as the first-ever National Healthy Homes Month.” The program was initiated by the HUD Office of Lead Hazard Control and Healthy Homes (OLHCHH), | more...

 
Mortgage Loan Rate Trends

June 10, 2016

Mortgage Rate Trends: Moving Even Lower

By Joe Wallace

Mortgage rates dropped lower on Thursday, putting them at levels we haven’t seen in quite some time. Some market watchers are hailing this move as a “three year low”, but whatever you call it, conditions are right to but conventional mortgage loan best execution rates (depending on the lender) in line with the upper end of the FHA mortgage loan best execution range. That’s on paper, mind you, and your results will vary depending on a variety of factors. But that on paper comparison between what’s offered by FHA lenders (best execution) and what’s offered by a small number of competitive conventional lenders is not a common thing, especially when those numbers start to look similar. 30-year fixed rate conventional mortgage rates are, by many reports, more commonly found at | more...

 
White House

June 9, 2016

HUD Announces Agreement In Housing Discrimination Case

By Joe Wallace

The Department of Housing and Urban Development have announced an agreement in a housing discrimination case involving First-Citizens Bank & Trust Company. According to a press release on the HUD official site, the case involved allegations that the bank “denied mortgage loans to African American, Latino and Asian American mortgage applicants at a disproportionately higher rate than white applicants. HUD’s investigation concerned retail loans originated by the banks predecessor, First Citizens Bank and Trust Co., in 2010 and 2011.” According to the HUD official site, Gustavo Velasquez, HUDs Assistant Secretary for Fair Housing and Equal Opportunity, commented on the settlement, saying, “This agreement aligns our shared goals of promoting fair housing and expanding access to credit for qualified working families. HUD will use its enforcement powers to ensure that everyone | more...

 

June 9, 2016

More FHA Mortgage Loan Questions and Answers

By Joe Wallace

Do you have questions about FHA home loans? We get many requests for information in the comments section of this blog, and a good number of those questions are frequently asked, indicating the need to have more discussions on such topics. Buying a home may seem intimidating at first, but there is a process involved that follows certain basic steps towards completion. Let’s examine some of them: How do I start planning for an FHA home loan? The key to getting ready for an FHA loan application is to give yourself time. It’s recommended that potential home loan applicants start getting ready at least 12 months before actually filling out an application, and there are several good reasons for that. One is that it takes time to check and verify | more...

 

June 8, 2016

FHA Home Loan Interest Rate Questions And Answers

By Joe Wallace

There are many questions about FHA home loans, especially where interest rates are concerned. Do you know how the FHA loan process works when it comes to negotiating rates or choosing a fixed rate or an adjustable rate mortgage loan? Here are some of the most common questions and answers in this area: How does the FHA set interest rates on FHA mortgage loans and refinance loans? In general, the FHA actually does not set or regulate interest rates on FHA home loans. For certain loan products there are restrictions on how interest rates can be changed or modified, and there are rules governing the purchase of discount points in order to lower mortgage loan interest rates. But the rates for an FHA mortgage are negotiated between the lender and | more...

 
Mortgage Loan Rate Trends

June 8, 2016

Mortgage Rate Trends: Holding Lower

By Joe Wallace

After the recent upward pressure on mortgage loan rates in the wake of the Fed’s discussion of a possible rate hike, economic data releases have tempered that discussion and we’re seeing a short-term recovery of that lost ground. How long rates continue to improve remains to be seen, but at the moment numbers are creeping back towards where they were before all the talk of another possible rate hike. 30-year fixed rate conventional mortgages are, for the most part, at a best execution 3.625%, though it has been reported that a few more competitive lenders are offering best execution rates closer to 3.5%. That doesn’t appear to be a widespread movement, but if rates continue to improve, how long might it take before conventional rates begin to rival the current | more...

 
FHA Loan Credit Score

June 7, 2016

FHA Loan Questions: Switching To Commission Income

By Joe Wallace

A reader got in touch with us to ask a question about how the FHA views commission income. This question came in response to an older blog post from 2013, well before the FHA and HUD switched over to the new FHA loan rulebook, HUD 4000.1: “I have currently been employed with the same company and same job title for 7 years, I have the opportunity to switch from an hourly wage to a commission percentage but still keep my same job at the same place.I will make a lot more. How will switching to commission affect my approval for a home mortgage? I plan on buying next year maybe a little sooner.” FHA loan rules for verification of commission income are clear. HUD 4000.1 starts off by defining commissions | more...

 
What Is An FHA Loan Limit?

June 7, 2016

FHA Reverse Mortgage Questions And Answers

By Joe Wallace

The FHA reverse mortgage, also known as a Home Equity Conversion Mortgage, is a special type of FHA mortgage loan. Not everyone can qualify for an FHA reverse mortgage-there are specific age requirements, occupancy requirements, and more. We are often asked about reverse mortgages, here are some of the most commonly asked FHA HECM loan questions and their answers. Who can qualify for an FHA HECM / Reverse Mortgage loan? The FHA reverse mortgage program (HECM loans) is intended for borrowers aged 62 or older who either own their property outright or are very close to doing so. Proof of loan payoff will be required, and all FHA HECM loan applicants will be required to certify that the home securing the reverse mortgage is the primary residence and not a | more...