Articles by: Bruce Reichstein

January 23, 2026

FHA Loan Rules: Co-Borrowers and Co-Signers

Many first-time homebuyers use FHA loans because of their flexible qualification standards. In some cases, a borrower may choose to apply with a co-borrower or a co-signer to strengthen the loan application. FHA loan rules allow both options, but they are not the same, and HUD applies different requirements depending on which role is used. Understanding the difference is critical before applying. FHA Distinction Between Co-Borrowers and Co-Signers FHA guidelines are governed by HUD Single Family Housing Policy Handbook 4000.1, which replaced HUD 4155.1 and is the current controlling authority. Under FHA rules: Co-borrowers (occupying or non-occupying) Take title to the property Are obligated on the mortgage note Must sign all loan and security instruments Share full legal responsibility for repayment Co-signers Do not take title to the property | more...

January 20, 2026

FHA Loan Rules for Loan Approval: Federal Debts and Tax Liens

By Bruce Reichstein

FHA loan approval rules include specific requirements regarding unpaid federal debts and federal tax liens. These rules are outlined in HUD’s Single Family Housing Policy Handbook 4000.1 and are enforced by FHA-approved lenders. When you apply for an FHA mortgage, your lender must evaluate your income, employment history, credit profile, and all monthly financial obligations. This includes determining whether you have delinquent federal non-tax debt or delinquent federal tax debt, both of which can affect FHA loan eligibility. Understanding how FHA treats federal debts and tax liens can help borrowers avoid unnecessary delays or loan denials. FHA Loans and Delinquent Federal Non-Tax Debt According to HUD Handbook 4000.1, FHA lenders are prohibited from approving loans for borrowers who have delinquent federal non-tax debt. Federal non-tax debt includes obligations such as: | more...

January 16, 2026

FHA Loans and Your Credit History: One Critical Factor Borrowers Often Overlook

By Bruce Reichstein

FHA Loans and Your Credit History: One Critical Factor Borrowers Often Overlook If you are planning to apply for an FHA home loan, your credit profile plays an important role in the approval process. Many borrowers focus on avoiding new credit inquiries, paying down balances, or checking FICO® scores. While those steps matter, there is one often overlooked factor that can significantly influence FHA loan approval: Your recent payment history on all financial obligations. Under FHA underwriting guidelines, lenders evaluate a borrower’s overall pattern of managing credit, not just their credit score. This includes how consistently financial obligations have been paid over time. While the FHA does not publish a strict rule requiring 12 months of perfect payment history, most FHA lenders place strong emphasis on the most recent 12 | more...

January 15, 2026

An Introduction to the FHA Debt-to-Income (DTI) Ratio

By Bruce Reichstein

FHA loans require many things from the borrower. The credit report, residence history, employment history and a list of all current outstanding debt must all be furnished to give the lender and the FHA a good picture of the borrower as a credit risk. When it comes to government home loans, all the information is needed since credit scores are not the determining factor in whether or not the FHA mortgage is approved. An FHA borrower with good credit, a solid work history and a track record of on-time payments would seem to be a shoo-in for an FHA home loan. But there's one thing that can offset the good things for the borrower if his or her debt-to-income ratio isn't within the limits for an FHA loan.

January 14, 2026

The FHA Reverse Mortgage (Home Equity Conversion Mortgage): How It Works, Who Qualifies, and Key Rules

By Bruce Reichstein

Homeowners who want to take advantage of the equity built up in their homes over the years have conventional loan options to choose from, but did you know the FHA also offers reverse mortgages to those who qualify? The FHA offers Home Equity Conversion Mortgage (HECM) loans, also known as FHA reverse mortgages.

How much can I borrow with an FHA refinance loan?

January 13, 2026

UFMIP Explained: FHA Loan Rules for Upfront and Monthly Mortgage Insurance

By Bruce Reichstein

For most FHA single-family purchase and refinance loans, borrowers are required to pay an Upfront Mortgage Insurance Premium (UFMIP) at closing. FHA mortgage insurance protects the lender—not the borrower—against loss if the loan defaults. FHA mortgage insurance consists of two separate components: Upfront Mortgage Insurance Premium (UFMIP) – paid once at closingAnnual Mortgage Insurance Premium (MIP) – charged annually and paid monthly as part of the mortgage payment According to U.S. Department of Housing and Urban Development (HUD), most FHA-insured loans require both an upfront and an annual mortgage insurance premium. How Much Is the FHA UFMIP? For the vast majority of FHA loans today, the UFMIP equals: 1.75% of the base loan amount(also expressed as 175 basis points) UFMIP Example If your FHA base loan amount is $300,000: UFMIP | more...

January 12, 2026

FHA Loan Rules: Title Issues For Non-Borrowing Co-Owners and Spouses

By Bruce Reichstein

FHA Loan Rules: Title Issues for Non-Borrowing Co-Owners FHA loan transactions do not always involve every property owner being a borrower on the mortgage. In many cases, two or more people may hold ownership interest (be on title) to a property purchased with an FHA-insured loan, even though only one of those individuals applies for and qualifies for the mortgage itself. FHA policy allows for these arrangements, provided certain conditions are met. Non-Borrowing Owners and the FHA Mortgage Note Under current FHA guidelines, if two or more parties have an ownership interest in a property but only one party applies for and independently qualifies for the FHA loan, the non-borrowing owner is not required to sign the mortgage Note. The borrower who applies for the FHA loan is the only | more...

January 7, 2026

FHA Appraisal Rules On Peeling Paint

By Bruce Reichstein

Does peeling paint cause FHA loan problems? Yes—peeling paint can delay or prevent FHA loan approval, depending on the age of the home and the severity of the condition. FHA appraisal rules treat defective paint as a potential health and safety issue, not merely a cosmetic concern. Why FHA Appraisers Flag Peeling Paint FHA appraisal standards focus on: Borrower safety / Property durability and Loan collateral protection Peeling, chipping, or flaking paint can signal deeper problems and must be evaluated carefully. FHA Peeling Paint Rules for Homes Built Before 1978 Homes built before 1978 fall under federal lead-based paint regulations. If peeling paint is present: The appraiser must require repairs, lead-safe work practices must be used and repairs must be completed before FHA loan endorsement. Sellers must disclose known lead | more...

If Your Home Was Damaged In A Federally Declared Disaster Area

January 2, 2026

FHA Loans For Your First Home Mortgage

By Bruce Reichstein

Why should first-time home buyers start thinking about their FHA refinance loan options sooner instead of later? It’s not because you are actively planning to refinance, but there are circumstances which may make you reconsider your refi loan options. As a millennial home buyer, first-time homeowner, or any other type of borrower, unforeseen events or situations may have you re-thinking your long-term financial plans. There are FHA refinance loan options for first-time home buyers and new homeowners, but some are more appropriate for certain needs than others. FHA Refinance Loans For Upgrades, Repairs, And Home Improvements If your home is damaged in a storm, you experience a fire or flood, or need to repair your roof, an FHA 203(k) rehabilitation loan is the refinance you should ask a participating FHA | more...

January 1, 2026

Higher FHA Loan Limits For 2026

By Bruce Reichstein

Thinking about buying a home but worried you might not qualify for a loan? The Federal Housing Administration (FHA) made changes in 2026 that could help make your homeownership dreams a reality. Bigger FHA Loan Limits in 2026 The FHA increased its loan limits for 2026. This means you can borrow more money to buy a home, which is great news in today’s market. What are the New Limits? For a typical single-family home in most parts of the U.S., the new loan limit is $541,287. But if you’re looking in a high-cost area, like California or the Northeast, the limit may go up to $1,249,125. And it’s not just for single-family homes! The FHA also has options if you’re interested in a duplex or other multi-unit property. These increased | more...