Articles in Category: FHA Guidelines

July 1, 2020

Home Loan Interest Rates Hit Historic Lows Again.

The end of the month of June, 2020 saw mortgage loan interest rates hit another historic low–rates hit another all-time low for the fourth time in a single month. As coronavirus issues continue to affect the global economy, economic factors at home and abroad have contributed to an environment favorable for lower rates. FHA Mortgage Loan Interest Rates In June 2020 FHA mortgage rates were listed at 2.50% on the last day of June. Not all borrowers are offered rates this low–your experience will vary depending on FICO scores and credit history. Finance and banking experts have been discussing the idea that as long as coronavirus has a role in what happens to the U.S. economy, we have the potential for continued low mortgage rates. Unfortunately, there is also volatility | more...

June 24, 2020

Coronavirus And Home Loan Appraisals: What You Need To Know Now

By Joe Wallace

In the age of social distancing, getting a home loan might seem challenging, but the industry has tried to change with the times and there are contact-free closing procedures, online document submission, and alternative appraisal methods in effect. Some of these measures serve as a reminder that a borrower should always pay for the optional home inspection and never rely on any other viewing of the home including the appraisal for that information. Relaxed Appraisals Why? Due to the relaxed requirements for appraisals during COVID-19. FHA appraisers can do some appraisal work as “drive-bys” where the appraiser never steps in the home; some work is accomplished video tours or walkthroughs. The appraiser may never enter the home personally depending on the housing market, local social distancing procedures, the severity of | more...

May 28, 2020

What To Do Before You Need To Apply For A Mortgage

By Joe Wallace

Planning for your home loan should always include a review of your credit reports and credit monitoring after you do that initial review. If you are committed to buying a home or building one from the ground up on your own lot using a One-Time Close construction loan, you should start reviewing your credit at least 12 months before you fill out any loan paperwork. Why? Because if you find errors or other problems on your credit reports, you will need more time than you think to dispute and correct those credit reports. It’s a bad idea to apply for any loan when you have an open dispute that has not been resolved; take the extra time to successfully resolve the problem before you apply for a new line of | more...

May 20, 2020

Mortgage Relief Scams To Avoid

By Joe Wallace

In an age where millions of Americans have applied for coronavirus-related mortgage relief, there are also con artists at work trying to steal money they haven’t earned from people who cannot afford to lose what money they have. What should you be aware of to avoid being conned while seeking home loan relief or foreclosure avoidance? Beware Mortgage Relief Scammers Some scammers just make random phone calls, hoping to strike gold. Others are far more careful and methodical. In those cases, mortgage relief scams often rely on a con artist viewing public records of homes that may be in the pre-foreclosure process, targeting these owners and hoping to take advantage. One of the hallmarks of a mortgage relief scam? The scammer comes in with promises to save the home outright, | more...

April 17, 2020

Home Loan Terms Defined: Conforming Loans

By Joe Wallace

Are you new to the idea of owning a home? Are you interested in applying for a home loan when the time is right but aren’t sure about how it all works? First-time home buyers aren’t the only ones who can apply for FHA mortgages, but they often apply for FHA purchase loans and construction loans thanks in part to the FHA home loan program’s reputation for being helpful for those who need a lower down payment, or who have past credit issues, or past credit issues. Some FHA home loan jargon is confusing at first, but take the time to learn what some of these things mean and you’ll find that buying a home isn’t as daunting as it might seem when you were still in the learning stages. | more...

April 14, 2020

Common Questions About COVID-19 Mortgage Relief For FHA Borrowers

By Bruce Reichstein

If you have an FHA mortgage and are worried about your ability to make mortgage payments during the economic shutdown over the coronavirus. What should you do? The FHA has some advice for you on taking advantage of the mortgage relief options provided by the FHA and HUD during the coronavirus pandemic. The FHA official site advises FHA borrowers to do three things if you are able: Continue to make your monthly mortgage payments if you are able to do so; If you are unable to make your mortgage payment, contact your mortgage servicer and discuss your situation with a loss mitigation specialist. Contact a HUD-approved housing counseling agency (you can get a referral by calling 1-800 CALL FHA). Have you lost your job? Have you been laid off, furloughed | more...

April 9, 2020

FHA Announces Updated COVID-19 Guidance For Participating Lenders

By Joe Wallace

The FHA and HUD have announced policy changes to the FHA Single-Family home loan rulebook, HUD 4000.1. These changes were announced in FHA Mortgagee Letter 2020-06 and address loss mitigation procedures specifically for COVID-19 related economic hardship. The prior version of HUD 4000.1 did not include specific guidance for lenders trying to help borrowers avoid foreclosure due to coronavirus issues; the old instructions are updated to include policies for lenders to help borrowers via CARES Act measures signed into law to help struggling companies and workers. The new additions to HUD 4000.1 include a new Section addressing the “Presidentially-Declared COVID-19 National Emergency” guidance for lenders, which is effective immediately takes precedence over disaster relief guidance issued prior to the pandemic. FHA loan rules for presidentially declared major disaster areas in | more...

HUD Brings Fair Housing Act Charges Against Atlanta Landlords

March 30, 2020

FHA Announces Modified Appraisal Rules During Coronavirus Outbreak

By Bruce Reichstein

The FHA and HUD have modified certain FHA appraisal requirements in response to the coronavirus outbreak and the need for social distancing. Since the outbreak of coronavirus and the worldwide pandemic that followed, government agencies began issuing policies to accommodate the need to prevent gatherings of people which potentially spreads the virus farther and wider. In the home loan industry, many are at risk including appraisers who must (under normal conditions) enter the homes of strangers and potentially expose themselves to infection. At the end of March, the FHA and HUD issued a press release announcing changes in FHA appraisal policy to address the needs to get appraisals done without exposing people to additional risks. That announcement including a set of temporary modifications to FHA appraisal requirements for single-family home | more...

How To Avoid Foreclosure During The Coronavirus

March 9, 2020

5 Home Loan Myths You Should Know About

By Bruce Reichstein

There are many myths about FHA home loans; that you must be a first-time buyer to qualify, that you can only buy a certain kind of home with an FHA mortgage, and that FHA loans are only for economically disadvantage home buyers. None of those things are true. There are other pervasive myths about FHA mortgages you should know. #5: FHA Loans Are Only For Existing Construction Property Not True! The FHA One-Time Close Construction loan allows even first-time homebuyers the chance to apply for a loan to build a house from the ground up. Construction loans require more time and you won’t be able to move into the home until the construction phase is complete, but for those not in a hurry to move in favor getting just the | more...

Mortgage Industry Seeks Federal Relief For Borrowers

February 24, 2020

FHA Mortgages For First-Time Borrowers In 2020

By Bruce Reichstein

What makes FHA home loans a great option for first-time home buyers? Anyone purchasing their first real estate, working with a realtor, and getting their credit ready for a home loan for the first time should know about the FHA mortgage program and it’s lower interest rates and flexible income requirements. FHA Loan Guidelines Are More Flexible It’s true that FHA mortgages require a borrower to have two years of employment history. But that history requirement does not have to be with a single company or employer. Borrowers should know that some frequent job changes are acceptable to FHA lenders, but overall your employment record is reviewed on a case-by-case basis when necessary. You may want to explain any unusual job circumstances to a loan officer up front to see | more...