Articles in Category: FHA Guidelines

September 21, 2020

Time Is Running Out On Exterior-Only FHA Appraisals

In August 2020, the FHA and HUD issued an extension of their temporary exterior-only appraisal guidelines for borrowers applying for FHA mortgages and refinance loans. This measure, and others similar to it, came after the President declared a national emergency with respect to the coronavirus pandemic and, according to the FHA/HUD official site, “initiated actions to stem the threat to public health and the American economy.” On March 27, 2020, HUD published Mortgagee Letter 2020-05, authorizing “flexibilities to the re-verification of employment and Acceptable Appraisal Reporting Forms and Protocols by allowing exceptions for Exterior-Only and Desktop Appraisal inspections in certain transactions”. The original measures were issued in March of 2020 to allow FHA appraisers to perform their work on FHA mortgages without having to put themselves at risk of COVID-19 | more...

September 15, 2020

Is A Property Eligible for an FHA Mortgage Loan If It Has Asbestos?

By Bruce Reichstein

Borrowers interested in purchasing older properties using an FHA insured mortgage could face several challenges depending on the nature of the property. For example, some buildings insulated or otherwise constructed with asbestos products could pose a health hazard. FHA rules include minimum property requirements for safety, which address situations like these. Is a property eligible for an FHA loan if it has asbestos in it?

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

September 8, 2020

What Is An FHA Loan Down Payment?

By Bruce Reichstein

What is an FHA loan down payment? Most people in the house-hunting process are familiar or will become familiar with down payments-the money required from the borrower upfront which is paid against the principal of the loan. There’s a long-standing notion about the nature of down payments; if a borrower invests a large amount of money upfront, they have a bigger stake in making on-time payments and remaining in good standing on the mortgage loan. But that idea isn’t addressed in the FHA loan rulebook. What is discussed is the nature of the minimum required cash investment or the down payment on an FHA mortgage. All FHA loans for new purchases will require a minimum FHA loan down payment of 3.5% of the adjusted value of the home. Naturally, the | more...

HUD Extends COVID-19 Foreclosure Moratorium For A Third Time

July 17, 2020

FHA And HUD Propose Revised FHA Loan Guidelines

By Bruce Reichstein

The FHA and HUD have proposed an overhaul of its single-family mortgage loan program with an eye on “expediting homeowner assistance and achieving operational efficiencies” designed to lower the costs of servicing FHA mortgages. The FHA has proposed a set of policies that–while not currently adapted and are under a review and industry comment period–are designed to “remove unnecessary barriers for homeowners seeking mortgage payment relief,” according to an FHA press release as well as “achieve operational consistency with industry standard best practices”, details of which are listed below. These proposed alterations come at a time of increased uncertainty as coronavirus outbreaks have increased across a large number of states and the threat of extended or additional lockdown measures looking large. The FHA and HUD seek to improve the ability | more...

How Much Is Your Monthly FHA Mortgage Payment?

July 16, 2020

Answers To FHA Loan Limit Questions

By Joe Wallace

There are some common questions about FHA home loan limits for the Single-Family Mortgage program. Do you know what the home loan limit is in your area or how it affects your mortgage transaction? Do All Government-Backed Mortgages Include Loan Limits? At one time, all government-backed home loans carried a loan limit. However, in 2020 after changes in federal law, the Department of Veterans Affairs altered its VA Home Loan program to eliminate mortgage loan limit requirements. FHA mortgages and USDA mortgages still have loan limits. What Are FHA Loan Limits? The FHA loan limit is a calculation made by the FHA. The limit is based on “the median house prices in accordance with the National Housing Act” according to the official site. The limits are published once at the | more...

July 1, 2020

Home Loan Interest Rates Hit Historic Lows Again.

By Joe Wallace

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...

What Credit Score Is Needed For An FHA Mortgage?

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...