November 14, 2019

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Articles Published in: July 2019

FHA Home Loan Down Payment Rules: Cash To Close Sources

FHA Home Loan Down Payment Rules: Cash To Close Sources

FHA home loan down payment rules include requirements for the sourcing of funds used to make that down payment and/or provide cash to close the deal. Down payment funds and sources of cash to close must be properly documented by the lender to insure the cash does not come from unacceptable sources such as non-collateralized loans (payday loans, credit card cash advances, etc.) or in the form of “gift funds” that are not really gifts but have an expectation of repayment. When discussing the permitted sourcing of FHA home loan down payments or cash to close, many borrowers want to know if certain kinds of sources are acceptable to the lender. That can include proceeds from the trade-in of a manufactured home, the proceeds from the sale of real estate, | more...

 
HUD Brings Fair Housing Act Charges Against New York Landlord

HUD Approves California Housing Discrimination Settlement

The Department of Housing and Urban Development has announced a settlement in a California housing discrimination case involving complaints of “redlining” against CIT Group, Inc., and CIT Bank, N.A., doing business as OneWest Bank. Investopedia.com defines redlining as “an unethical practice” that can include denying mortgages, mortgage insurance, or other financial services based on location (the justification being that such locations are “bad neighborhoods”) rather than “an individual’s qualifications and creditworthiness.” This practice was made illegal by the Fair Housing Act. Specifically, the Fair Housing Act makes it a violation of federal law for discriminating on the basis of race or national origin to include the practice of denying credit to residents of predominantly minority neighborhoods. “Homeownership is the foundation of the American dream,” said Anna María Farías, HUD’s Assistant | more...

 
Home Buying, FHA Loans, And Mortgage Trends

FHA Home Loans And Housing Counseling

FHA home loans are for many different kinds of borrower-experienced and first-time home buyers alike. But it’s easy to feel overwhelmed by the process if you are new to it or haven’t purchased real estate before. That is one reason why it’s a very good idea to consider talking to a HUD-approved housing counselor. Did you know you can call the FHA at their toll-free number, 1-800 CALL FHA, and request a referral to an approved housing counselor? The Department of Housing and Urban Development (HUD) official site reminds borrowers that housing counseling is NOT just for new purchase home loans-if you are trying to avoid foreclosure or are trying to avoid homelessness, there are HUD housing counseling services for you, and those services may be provided free of charge. | more...

 
What You Need To Know About Your FHA Home Loan

What You Need To Know About Your FHA Home Loan

What you need to know about FHA home loans as a first-time home buyer includes the terms and conditions of your loan, how loan approval works, and what it takes to qualify for an FHA mortgage. Are you ready for your first home? Keep reading and make note of any areas that need addressing in order to get as close as possible to home loan approval before you fill out the forms. FHA Home Loans Require A Down Payment, But It’s A Low Downpayment FHA mortgage loans require a minimum 3.5% down payment for all new purchase transactions, construction loans, and rehab loans that are not applied for as disaster relief rehab loans (the FHA 203h loan). You may be required to pay five percent down or more on some | more...

 
Home Loan Credit Advice From Credit Bureaus

Qualifying For An FHA Home Loan With Disability Benefits

FHA home loan rules permit the use of disability benefits to financially qualify for the loan. All income used in the lender’s debt ratio calculations must be verifiable, which means it must be a stable source of income and is likely to continue. Some borrowers worry that their disability income won’t be counted for the purposes of loan approval, but if that income meets FHA standards, there shouldn’t be any problem. Those standards are found in HUD 4000.1 and start with a basic definition: “Disability Benefits are benefits received from the Social Security Administration (SSA), Department of Veterans Affairs (VA), other public agencies, or a private disability insurance provider. “ These benefits must continue for at least three years into the mortgage to be counted as verifiable income. The lender | more...

 
Rising Equity And FHA Refinance Loans

Get Ready To Buy A Home With An FHA Mortgage

Are you ready to buy a home? If you aren’t sure, there are some ways to know what’s left to be done before actually filling out the loan paperwork. Buying a home with an FHA loan is easier with some advance preparation and planning. Set A New Budget If you haven’t made a new budget that includes a potential mortgage payment, you should look into those numbers before you apply. You need to know how much your new house payment will affect your existing budget, and don’t forget to include extra funds for maintenance and upkeep of the home. You may need to factor in the cost of minor replacement needs, and you will also need to consider the initial outlay of cash that may be required (apart from the | more...

 
HUD Announces Expanded Disaster Relief Options

HUD Announces Fair Housing Agreement In California Discrimination Case

The Department of Housing and Urban Development has announced a concillaition agreement in a California Fair Housing discrimination case. Recently, HUD approved a $10,000 Conciliation Agreement between a California fair housing group and “the agents and mortgage company for Boardwalk Townhomes in Corona, California. This agreement settles allegations that Boardwalk Townhomes discriminated against African American home seekers” according to a HUD press release. Federal Fair Housing Act laws forbid those in the housing industry from offering different terms or conditions on the sale or rental of a dwelling based on race, color, national origin, religion, sex, familial status, or disability. Those who have been discriminated against in such a fashion should report violations to the Department of Housing and Urban Development. “A person’s race should never be a factor in | more...

 
FHA Home Loan Rules About Borrower Debt

FHA Home Loan Rules About Borrower Debt

Do you know what your lender is required to do when you fill out an FHA mortgage loan application? Part of the lender’s job is to make sure that the loan applicant can realistically afford the new home loan, and making that determination means reviewing your current debt. HUD 4000.1, the FHA Lender’s Handbook for single family mortgages, has instructions for the lender in this area. It begins stating the lender’s responsibilities: “The Mortgagee must determine the Borrower’s monthly liabilities by reviewing all debts listed on the credit report, Uniform Residential Loan Application (URLA), and required documentation.” How is that accomplished? “All applicable monthly liabilities must be included in the qualifying ratio. ” Your lender will calculate your debt ratio using one method that includes only your current debt, and | more...

 
Mortgage Loan Interest Rates: What You Need To Know About Trends

Mortgage Loan Interest Rates: What You Need To Know About Trends

What should borrowers know about mortgage loan interest rate trends? Especially when those trends are pushing rates toward historic lows? It’s a very good idea to be aware of the forces that affect mortgage rates; understanding how they work is a step toward making a more informed purchase as a house hunter or first-time home buyer. Interest Rate Trends Are Affected By The Economy What is good for the economy is often bad for mortgage loan interest rates, and vice versa. You will see rates pushing higher when there is good economic news, and rates trend lower when there is bad economic news. Except when they don’t. The thing to remember about mortgage loan rates is that no single factor affects them; it’s a combination of things and sometimes interest | more...

 
Will FHA Mortgage Loan Interest Rates Drop Even More?

Will FHA Mortgage Loan Interest Rates Drop Even More?

Mortgage loan rates have been reported at historic lows in recent times and many are wondering if now is the right time to buy or refinance a home, or if it’s better to wait to see if rates sink even lower. Should you wait to refinance? Is it better to hold off on buying? There is no good answer to these questions for one reason-all home loan transactions are different, not all get offered the same interest rates, and your experience may vary. First-time home buyers should know that when you are looking for a new home to purchase with an FHA mortgage, the interest rates you see today may not be the same tomorrow, or the next day. If you are house hunting and have not found a home | more...