October 26, 2021

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Articles Published in: April 2021

Why did my mortgage payment increase

FHA Home Loan Rules For Income: VA Benefits, Disability

Home loan approval depends on a variety of factors–your credit score, history of on-time payments on your financial obligations, and your income. Where your paycheck is concerned, FHA loan rules say the income must be verifiable and likely to continue in order to be counted for purposes of approving your FHA mortgage. FHA home loan rules in HUD 4000.1 say that certain benefits may be counted as verifiable income–the rules allow the use of disability benefits to financially qualify for the loan. But there are borrowers who worry their disability income won’t be counted for the purposes of the loan. In cases where such income meets FHA standards, the borrower likely has nothing to worry about. Those standards are found in HUD 4000.1 and start with a basic definition of | more...

 
HUD

Fair Housing Month Ends With New Discrimination Cases

Fair Housing Act laws ensure all Americans have recourse if they are illegally discriminated in the housing process. The month of April is Fair Housing Month, commemorating the passage of the Fair Housing Act and drawing attention to the ongoing need for federal enforcement of laws designed to prevent discrimination in the housing process. The 2021 Fair Housing Month observation began with a campaign–the Real People Real Results campaign–which celebrates “…the heroism of those who took a stand against housing discrimination and acknowledges the staff and fair housing partners work to prevent discriminatory harassment”. This campaign recognizes an important issue. Sometimes the only people with the power to stop future violations of the Fair Housing Act are those who were victims of discrimination. In the last days of April 2021, | more...

 
FHA and HUD

FHA Condo Loan Rules That Affect Your Mortgage

Some house hunters are surprised to learn that FHA home loans are possible for condo units. There is an assumption that FHA loans are only for first-time home buyers looking for starter homes, but ANY financially qualified applicant can apply to buy a single unit home, a multi-unit property, or a condo unit. FHA condo loans are similar in many ways to other purchase loans for suburban homes, but you should know the differences in buying and owning a condo versus other property types. FHA Condo Loans And The Condo Project Approval List FHA loans have requirements for condos or condo units–these usually must be on or added to the FHA approved list. Borrowers may look for an approved condo project using a tool on the FHA official site or | more...

 
Is your credit ready for an FHA loan?

First-Time Home Buyer Tools You Should Know

Are you buying a home for the first time? Are you buying a home after a long gap in home ownership? There are some consumer tools you should know about that can help you get closer to owning your dream home. And not all these tools are for the planning and saving stages of the loan. For example, when house hunting, if you find a home you want, do you know how much your monthly mortgage payment will be? You can use online mortgage calculators that can help. But that’s a common mortgage tool–what about other options? Credit Issues Borrowers who need to work on their credit might be surprised to learn that they can repair their own credit AND get advice on improving credit on a do-it-yourself basis. Did | more...

 
FHA Home Loan Resources

Home Loan Application Documents: What You Need To Know

There is documentation required to process your home loan application. Do you know what your home loan or refinance loan transaction requires of you? The lender requires tax documents, information about the sources of your down payment, access to your credit reports, and more. But there are rules about who provides these documents, and you’ll need to be aware of them when gathering your paperwork. FHA Loan Rules On Documentation Some of the information your lender needs comes from you personally. What does this include? Your photo identification, and proof of legal residence in the USA (which may be required where applicable). FHA loan rules say you do not have to be a citizen to be approved for an FHA mortgage, but you must have documentation that shows your status | more...

 
FHA Appraisal Refunds?

The FHA Home Loan Myth

There is a prevailing myth about FHA home loans that persists to this very day–the idea that FHA mortgages are ONLY for first-time home buyers and/or the economically disadvantaged. FHA home loans are thought to be exclusively for these borrowers, but that is definitely NOT TRUE. FHA home loans are for any financially qualified borrower with FICO scores over 500 (the FHA minimum, not your lender’s minimum standard). Some confuse the FHA loan program with the USDA Single-Family home loan program, which DOES have income limits and is aimed at borrowers who are in financial need. USDA mortgages have a no money down option for qualifying borrowers but the homes purchased with these mortgages must be in USDA-approved areas and feature household income caps. FHA mortgages, on the other hand, | more...

 
HUD

HUD Brings Fair Housing Act Charges Against Texas Landlord

The Fair Housing Act makes it illegal to discriminate against those seeking housing, whether that is purchase or rental. It is also against the law to discriminate at any stage in the housing process including at the lending stage. We report on Fair Housing Act cases because they affect all who seek housing. Whether you want to rent or buy, read to purchase or still looking, discrimination hurts everyone at all stages of the house-hunting process. Among the latest Fair Housing cases in 2021, a new development as the Department of Housing and Urban Development has announced charges in a housing discrimination case in Texas. A press release issued this week on the HUD official site announces that HUD is charging an owner of a six-bedroom rental home in Frisco, | more...

 
FHA Loan Limits: Where To Find Them

FHA Refinance Loans: Maximum Loan Calculations

How much can you get to refinance your home loan? Much depends on the nature of the refinance loan you seek–cash out, no cash out, simple refinance, FHA Streamline refinance loans, etc. What is the maximum loan-to-value ratio for an FHA refinance loan? FHA Refinance Loans Have Maximum Loan-to-Value Ratios FHA loan rules vary depending on the nature of the refinance loan. For example, appraisal-required cash out refinance loans? Cash-out refi mortgages guaranteed by the FHA feature an 85% loan-to-value ratio. Simple refinances have a maximum mortgage loan-to-value ratio of 97.75 percent for Principal Residences and 85 percent for HUD-approved Secondary Residences. Streamline Refinances For owner-occupied Principal Residences the “maximum Base Loan Amount” for Streamline Refinances is the lesser of the outstanding principal balance of the existing Mortgage as of | more...

 
FHA And HUD

FHA Announces Revised Single Family Home Loan Policies

Since the start of the pandemic and COVID-19 mitigation measures, American homeowners have felt the effects of job loss, layoffs, furloughs, and other hardships related to coronavirus quarantine issues. Many of those with FHA home loans, FHA refinances, and other loans have needed foreclosure avoidance measures due to this economic hardship brought. Fortunately agencies like the FHA and HUD implemented many things for homeowners with FHA mortgages. Now the FHA announces some changes to the basic structure of the single-family home loan program to help these homeowners stay in their homes. The FHA updated portions of its rulebook for single-family home loans; the changes will help lenders, “more quickly offer effective loss mitigation home retention options to borrowers in danger of losing their homes to foreclosure”.  These policy changes are | more...

 
Buying A Home With A Lower Credit Score

Issues That Can Affect Your Home Loan

There are certain problems that crop up with home loan applications that can make it difficult for a mortgage lender to approve a loan application. We have written many articles about credit scores, debt payment history, and the amount of debt you carry, and how these issues affect your ability to get home loan approval. But what about the lesser-known issues? The Nature Of The Property Counts Some property types have restrictions from either the lender or under FHA loan rules. Those rules are found in HUD 4000.1. Did you know that no mobile home built before  June 15th, 1976 can be approved for an FHA mortgage? No home may be sold under the FHA loan program for commercial purposes. That means the home purchased with an FHA loan can’t | more...