October 26, 2021

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Articles Published in: December 2016

Mortgage Loan Rate Trends

Mortgage Rate Trends: Slightly Lower

Since our last report on mortgage rate trends, we’ve seen a minor bit of improvement in interest rates, but the numbers still remain at highs not seen in the last couple of years. The improvements will likely be reflected in closing costs where applicable, and the range of rates is still at or near what it’s been in recent days. That means that 30-year fixed rate conventional mortgages are holding in a range between 4.375% at the very bottom end and 4.5% at the top end, best execution. FHA mortgage rates are holding in a best execution comfort zone of 4.0%, though if upward movement resumes we could see this turn into a range of rates also. Best execution rates assume ideal borrowers. Your FICO score, loan repayment history, and | more...

 
Can I get an FHA loan after bankruptcy?

FHA Anti-Flipping Rules

In general, FHA requirements and regulations discourage the practice of flipping, which is defined as buying a home (distressed or otherwise) and quickly reselling it at an inflated price. According to the FHA loan single-family rule book, “The eligibility of a Property for a Mortgage insured by FHA is determined by the time that has elapsed between the date the seller has acquired title to the Property and the date of execution of the sales contract that will result in the FHA-insured Mortgage.” HUD 4000.1 defines the sellers date of acquisition as, “the date the seller acquired legal ownership of that Property. FHA defines the resale date as the date of execution of the sales contract by all parties intending to finance the Property with an FHA-insured Mortgage”. Homes sold | more...

 
Happy Holidays 2018

FHA Short Refi Loans in 2017?

HUD 4000.1 is the FHA single family home loan rule book. Whether you are purchasing a suburban home, a condo unit, or a mobile home with an FHA mortgage, the rules in HUD 4000.1 pertain to your FHA loan transaction. This set of rules also includes guidance on FHA refinancing loans including a program known as an FHA short refi loan, also called “Refinance of Borrowers in Negative Equity Positions Program”. This program, according to HUD 4000.1, “allows the Mortgagee to refinance a non FHA-insured Mortgage in which the Borrower is in a negative equity position”. That’s commonly known as being “underwater” on a home loan. An FHA short refi requires the lender to “write off at least 10 percent of the unpaid principal balance”. The borrower must be in | more...

 

Deferred Obligations and FHA Loans

A reader asks, “How do you calculate monthly payments for estimated payment to begin when schooling is complete?” With student loans, there are two types of payments, one of which may apply in this case. Ongoing payments and deferred payments have different requirements. It’s likely safe to assume that this reader question refers to how a lender is to process student loan information as part of the applicant’s debt-to-income ratio. FHA loan rules in HUD 4000.1 include instructions to the lender for processing student loan debt information both as a “deferred obligation” that has not come due yet, and as an ongoing payment where applicable. HUD 4000.1 instructs the lender to use the actual amount of the student loan payment wherever possible, but in cases where the loan is deferred | more...

 
FHA And HUD

Fair Housing Case Settlement In Nevada

As the FHA/HUD official site says, “Disability is the most common basis of complaint filed with HUD and its partner agencies. Last year alone, HUD considered more than 4,500 disability-related complaints or nearly 55 percent of all fair housing complaints.” That is one reason why we report Fair Housing cases here-these complaints are not limited to rental markets, and even if they were, such discrimination affects a potential borrower’s house hunting prospects. If you are forced to relocate because of job or family issues and need to purchase a home while renting in the meantime, your entire experience may be affected negatively by housing discrimination. And sometimes the only way to stop continued illegal practices is for the injured party to file a report and have the matter investigated by | more...

 

FICO Scores And FHA Loans

Your credit report and FICO scores are very important factors when it comes to getting an FHA loan approved. Do you know what your FICO score is and how it affects your home loan? The U.S. government’s consumer watchdog agency, the Consumer Financial Protection Bureau, has a definition of FICO scores on its’ official site, which includes the following: “A FICO score is a particular brand of credit score. A credit score is a number that is used to predict how likely you are to pay back a loan on time. Credit scores are used by companies to make decisions such as whether to offer you a mortgage or a credit card. They are also used to determine the interest rate you receive on a loan or credit card, and | more...

 
Mortgage Loan Rate Trends

Mortgage Rate Trends: Approaching Mid Four Percent Range

Since our last report on mortgage rate trends, we’ve seen the upward trend continue into highs not seen for quite some time. Market watchers note that some seasonal market trends that affect rates are at work here, but those forces are not the only ones with the power to alter mortgage rates (based on investor reaction to things like breaking economic or political news, etc.) 30-year fixed rate conventional mortgage rates have, best execution, moved into a range of rates that are at or near the mid four percent zone. At the time of this writing, don’t be surprised to find best execution conventional rates ranging between 4.25% and 4.625%. The upper and lower ends of this range are more rare, but according to our sources certain lenders may offer | more...

 
Happy Columbus Day 2019

HUD Adds New Housing Counseling Requirements

Housing counseling is an important resource for those who want to apply for a mortgage loan. When borrowers decide to start on the journey to home ownership, there can be many areas they are unsure about. That’s one reason why it can be helpful to contact the FHA directly at their toll-free number (1-800 CALL FHA) to request a referral to a local, HUD-approved housing counselor to get expert advice and help in areas related to budgeting for a mortgage payment, credit issues, the home loan process and more. In some cases, certain types of counseling are actually required as a condition of FHA loan approval; this is true for FHA Home Equity Conversion Mortgages (HECM), where all borrowers must attend counseling to insure they understand the nature of HECM | more...

 
How much can I borrow with an FHA refinance loan?

FHA Mortgages: Five Simple Things To Know

If you are considering an FHA home loan, there are a few simple basics to keep in mind about your loan application that will help you in both the planning stages and the application stage of the loan. Did you know? 1. FHA mortgages require a down payment, but that down payment is lower than many conventional mortgages. FHA home loans require a down payment of 3.5%, but you may encounter conventional mortgage loan requirements as high as 20%. This is an important factor when trying to plan a budget for your new monthly mortgage payment. FHA mortgages have down payments calculated as a percentage of the adjusted price of the home. 2. FHA mortgages require an appraisal to calculate the fair market value of the property and to insure | more...

 

FHA Loan Basics: A Reader Question

A reader asks, “I really don’t understand why i have to pay PMI and MIP. I had credit problems a bankruptcy in 2013 , it was recorded and its been almost 4 years and my score is 709 that the middle score i have hardly no debts, 6% of income. I was told I have to pay the MIP up front of 1.75% and also 240 PMI monthly with mortgage. That’s a little too much, is there a way out of this? I also did not want taxes and insurance added, I’m putting 3.5 percent down. My loan officer said I had to pay the insurance and add taxes to my loan.” It’s not entirely clear from this reader question whether the loan is an FHA mortgage or not, but | more...