Articles Published in: September 2021

September 16, 2021

Need To Remodel Your Home?

What kind of FHA loan product is right for your home repair projects? Some people want to fund a remodeling or renovation project using a credit card, but what happens when you compare interest rates on your credit card to the rates you might be charged for an FHA refinance or an FHA 203(k) Rehab loan? The reason some people put these repair expenses on their credit cards has a lot to do with the time it takes to build equity in the home for a HELOC or a cash-out refinance. But for those who have the ability to refinance in order to pay for the work, the savings could be a major factor in your choices. Remodeling With An FHA Cash-Out Refinance The cash-out refinance option does require you | more...

September 15, 2021

How To Avoid A Mortgage Closing Scam

By Joe Wallace

The government’s consumer watchdog agency, the Consumer Financial Protection Bureau (CFPB), has a page dedicated to warning house hunters about home loan closing scams. According to CFPB documents,FBI warnings about home scams include attempts to “phish” your personal information with the purpose of tricking a potential borrower into diverting the payment of closing costs and down payment to a destination that is NOT your lender. In a single year alone, these mortgage closing scams cost almost one billion dollars. Want to know how you can keep this from happening to you? Scammers trying to pull these types of phishing attacks target people in the mortgage industry–they find legitimate email addresses and “spoof” them, making the email appear to be from a real address. But the email is full of hacking | more...

September 14, 2021

What’s In Your Mortgage?

By Joe Wallace

If you are new to the home buying process and are still house hunting, chances are good you might not be thinking about the ups and downs of your monthly mortgage payment. Some find it difficult to wade through home loan paperwork–there is a lot of print and fine print to digest in the best of times. What should you expect from your monthly mortgage bill and what do you do if you find errors or other issues on your monthly statements long after the loan has closed? The Consumer Financial Protection Bureau or CFPB advises consumers to carefully review their monthly mortgage statement. You will want to review the following sections for accuracy each month and to make sure there are no surprises: Customer service contact information the lender/servicer | more...

September 13, 2021

Home Loan And Home Ownership Tools From HUD

By Joe Wallace

Are you a first-time home buyer trying to get good advice on how to prepare for a home loan? Are you interested in an FHA Reverse Mortgage, but not sure about where to find approved housing counseling for an FHA Home Equity Conversion Mortgage (HECM)? Or perhaps you are a current homeowner with an FHA mortgage trying to avoid foreclosure? In every case, the FHA and HUD have housing counseling resources you can use to make more informed decisions about purchasing, refinancing, or saving your home. Did you know that the HUD official site has a page dedicated to housing counseling resources? You can find it at their official site: The HUD Office of Housing Counseling As the official site reminds, “HUD sponsor housing counseling agencies throughout the country that | more...

September 10, 2021

Your FHA Mortgage And Natural Disasters In 2021

By Bruce Reichstein

In the early days of the month of September, the FHA and HUD have made a number of announcements regarding disaster relief for portions of the country that have experienced fires, floods, and hurricanes. The agencies have, from the start of September to September 10, 2021, issued no fewer than seven announcements related to disaster relief. The first of those, dated September 1, 2021, includes the following related to disaster relief measures for those who are in presidentially declared federal disaster areas: Foreclosure relief – There is an automatic 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages beginning on the date of the major disaster declaration; Call the FHA Resource Center at 1-800-304-9320 for assistance FHA Rehab Loans — FHA Section 203(h) Rehabilitation Loans for disaster victims | more...

September 9, 2021

Do You Have An FHA Adjustable Rate Mortgage?

By Bruce Reichstein

Do you have an FHA adjustable-rate mortgage, also known as an FHA ARM loan? Is your introductory rate about to expire? It may be a very good idea to explore your refinance options to avoid the higher interest rate. Borrowers with adjustable-rate home loans rightfully get a bit nervous when the end of their introductory interest rate period, also known as a “teaser rate” period is about to and the first adjustment to the ARM loan’s interest rate becomes due. Borrowers can negotiate an introductory rate that lasts as little as one year and as many as 10 years with the lender, but eventually, that initial rate will end and the first adjustment will come due. If you have an FHA ARM loan you may be eligible for either a | more...

September 7, 2021

HUD Charges Florida Condo Owner’s Association With Fair Housing Act Violations

By Joe Wallace

There are many different forms of housing discrimination and such violations of federal law can happen at any stage of the housing process. That means you can find examples of violations of the Fair Housing Act in many other places besides the rental application process, the home loan application process, or even the refinance loan system. Did you know that housing discrimination cases are also found in areas such as the decisions of homeowner’s associations? That’s an area that doesn’t get discussed much in home loan circles, but violations of the Fair Housing Act have disastrous effects for those who seek housing. One good example of this is found in a September 2021 press release at the Department of Housing and Urban Development’s official site announcing charges against a condo | more...

September 2, 2021

Advice For Homeowners Affected By Natural Disasters in 2021

By Joe Wallace

American homeowners have been hard hit by natural disasters in 2021; everything from forest fires to hurricanes and tropical storms have beset homeowners on both coasts and in many places in-between. Add to that the complications of the COVID-19 pandemic and you get a lot of financial hardship for those who have had to evacuate, and for those who have experienced lost or damaged homes and property. The FHA and HUD have specific disaster-relief policies for those affected by natural disasters; if you have been affected by a storm, fire, or any other type of natural disaster it’s vital to contact your participating lender immediately to discuss your home loan options during the recovery phase. FHA loan rules for those affected by natural disasters may include limited foreclosure moratorium procedures | more...

September 1, 2021

Using Your Home Equity With An FHA Cash-Out Refinance Loan

By Joe Wallace

There are many uses for an FHA cash-out refinance. These FHA refi loans can be used to refinance FHA and non-FHA mortgages alike, and the funds from cash-out refinance loans can be used for any purpose including paying off credit card debt, making home improvements, and even paying for luxury items like cars or boats. But what is the best use of cash-out refinance loan proceeds? Like many similar home loan questions, the answer depends greatly on the financial needs and goals of the borrower. But there are some issues you should consider when deciding what to do with the money you get from an FHA refinance of this type. An FHA cash-out refinance loan is a good option for someone who has built up equity in their property over | more...