December 5, 2020

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Articles Published in: August 2020

HUD Announces Changes To Exterior-Only Appraisal Guidelines For FHA Purchase Loans

HUD Extends COVID-19 Foreclosure Moratorium For A Third Time

The FHA and HUD have announced a third extension of the coronavirus foreclosure and eviction moratorium announced earlier this year to help homeowners affected by the global COVID-19 pandemic outbreak. This extension is extended until the end of 2020 and is intended to help those with FHA mortgages “focus on financial recovery”. The original measures were passed as part of the Coronavirus Relief and Economic Security Act, also known as the CARES Act. According to a press release issued by the FHA and HUD, “This extension provides an additional four months of housing security to homeowners, as they will not fear losing their homes as they work to recover financially from the adverse impacts of the pandemic. “ HUD officials went on the record about this extension stating that, “…homeownership | more...

 
FHA Home Loan Income Rules

FHA Home Loans: How Much Income Do You Need To Qualify?

Many future home owners want to know about the income requirements for an FHA loan–are you worried that you won’t qualify for an FHA mortgage because you don’t earn enough each month? And then there’s the opposite problem–a misconception that you can earn “too much” to qualify for an FHA mortgage as though this program had income limits. FHA loans do NOT feature income limits and this program does not require you to qualify based on financial need. FHA Loans Are For All Financially Qualified Applicants There is no minimum income requirement for an FHA mortgage, and there is no upper limit or income “ceiling”. FHA loans are not targeted for any one income bracket. FHA loans are designed with more lenient FICO score minimums in mind, but that has | more...

 
Planning To Buy A Home? Credit Resources You Need

What Kind Of House Can I Buy With An FHA Mortgage?

What kinds of homes can be purchased with an FHA mortgage loan? You can build a home from scratch using an FHA Construction mortgage, but may people want to buy existing property and what kinds. Eligible Property Types For FHA Mortgages FHA loan rules in HUD 4000.1 state clearly that certain kinds of property are permitted and certain kinds are not. These rules on eligible property types that can be purchased with an FHA mortgage loan are found in HUD 4000.1, and include the following guidance you should know: “FHAs programs differ from one another primarily in terms of what types of Properties and financing are eligible. Except as otherwise stated in this SF Handbook, FHAs Single Family programs are limited to one- to four-family Properties that are owner-occupied Principal | more...

 
FHA Policy for Disaster Victims

FHA Home Loan Advice For Disaster Victims

At the time of this writing, multiple natural disasters are affecting homeowners from California to the Gulf Coast. This, in addition to COVID-19 concerns makes for a lot of hardship for those who have had to evacuate, and for those who have experienced damaged homes and lost property. The FHA and HUD have specific disaster-relief policies on the books that are intended to help those affected by natural disasters recover from them. FHA loan rules include limited foreclosure moratorium procedures for borrowers, and there is help in the form of FHA rehabilitation loans specifically for disaster victims. However, this relief is provided to those who reside in areas that have been declared as federal disaster areas. The President must make such a declaration (such as the one made in California | more...

 
HUD Announces Changes To Exterior-Only Appraisal Guidelines For FHA Purchase Loans

HUD Approves Conciliation Agreements in Arkansas Fair Housing Discrimination Case

Housing discrimination at any stage–buying, renting, financing, etc.–is a violation of federal law. The Fair Housing Act protects borrowers from being denied housing based on non-financial criteria including race, family status, sexual identity, etc. The Department of Housing and Urban Development has announced agreements in an Arkansas Fair Housing discrimination case. According to a press release issued by HUD, the agency has approved three Conciliation Agreements with the owners and property management company of Springdale Ridge Apartments in Springdale, Arkansas. HUD says these three agreements resolve complaints that the owners and management of Springdale Ridge Apartments “discriminated against several residents because of their national origin and retaliated against an employee living on site who sought to inform the residents of their fair housing rights” according to the HUD press release. | more...

 
apply for an FHA loan

FHA Loan Credit Questions: Co-Signing

Here is a variation on a common question about FHA home loans: “I think my credit is fairly good but I have two cars in my name–one of which I thought I was only the co-signer. I’ve recently found a property that is fairly reasonable and my question is will my co-signing affect the loan approval decision? I do not make the payments on the second vehicle.” HUD 4000.1 has a great deal to say about credit, financial liabilities, and related issues. What does it say about this reader’s question? The general philosophy of the FHA is toward applicant credit information includes the notion that your credit history is the “most useful guide” determining things like: The loan applicant’s attitude toward credit obligations; The ability to predict a borrower’s future | more...

 
FHA Loan Down Payment Rules

FHA Loan Down Payment Rules

One of the biggest worries for some borrowers interested in buying or building a home? The down payment. At the time of this writing, there are only two zero-down payment mortgages offered nationally by participating lenders offering government-backed mortgages; the VA mortgage and certain USDA single-family home loans. USDA home loans are need-based mortgages with income caps and purchase price limits; VA mortgages are only for those with qualifying military service and certain surviving spouses of those who have died as a result of military service. For FHA mortgages, there is no need-based requirement and you do not have to be a veteran OR a first-time home buyer to apply for an FHA mortgage. FHA loans are offered to all who financially qualify with no income limits. FHA down payment | more...

 
First Time Home Buyers: Improve Your Credit With Credit Monitoring

Househunters, Do You Need Credit Advice?

Are you a house hunter worried about your credit ahead of your loan application? It doesn’t matter if you want to buy a mobile home, a condo, or even build a house on your own lot with a construction loan, you’ll need to examine your credit closely long before you apply for your mortgage. Many borrowers are afraid to look at their credit report, or they don’t know how to access one. Fortunately, you can get help accessing and reviewing your credit with professional credit monitoring, and there are some things you can do on your own to improve your credit ahead of your loan application. Start As Early As You Can Working on your credit, no matter what state it may be in, takes time. If you find issues | more...

 
Getting Ready For Your Home Loan

Changes To The Home Loan Industry

Coronavirus has and COVID-19 containment measures have forced those in many career fields to change how business gets done–and the mortgage industry is no exception. It is clear that the economic fallout from the current crisis will be felt for years to come, and there are many who look to the amount of time it took for the nation to economically recover from the housing crisis of 2008, thinking that better long-term planning this time around might be the best approach. Mortgage Industry Changes Consumers have already experienced how Coronavirus has forced changes in proceedures related to buying and selling a home. The in-person walkthrough, the open house, and the in-person appraisal are all much more rare at the time of this writing in many communities. Not all require the | more...

 
Mortgage Rate Trends

Mortgage Rates Give And Take In Mid-August

Mortgage loan interest rates have had some interesting ups and downs in August 2020, with conventional loans AND FHA mortgages staying below the three percent line, at least some of the time in the case of conventional loans. There are many factors that affect the fluctuations of FHA and conventional mortgage loan interest rates–we won’t go into all of them here. But the pandemic, politics, international trade issues, and investor reaction to all of these things and more have kept mortgage rates at unprecedented lows (no, we aren’t tired of writing that phrase just yet). But at the time of this writing on August 18, 2020, conventional rates have risen above the three percent line once more. Rates are reported at a best execution 3.12% for the most well-qualified borrowers. | more...