Articles in Category: HUD Regulations

August 3, 2022

Appraisal Rules For FHA Loans: Basements & Crawlspaces

When reviewing your closing checklist or simply trying to plan for all the expenses of your FHA home loan, the appraisal and the optional (but vital) home inspection are two of the expenses you’ll need to save for. The appraisal is required as a condition of loan approval, the inspection is optional but borrowers cannot make a truly informed decision about a home without the inspection. When it comes to FHA appraisal requirements, the rules are designed only to insure the property meets MINIMUM FHA standards. The appraisal is never to be taken as a message from the FHA that the home is free of defects or problems-only an home inspection can tell you what the true condition of the property might be. FHA minimum standards for appraisals include requirements | more...

July 26, 2022

HUD Announces Results Of New York Fair Housing Case

By Joe Wallace

Any form of discrimination in the housing process whether buying or renting has a chilling effect on the entire housing industry. We write about Fair Housing Act cases frequently to remind house hunters of their rights under the law. One of the latest developments in this area involves the Department of Housing and Urban Development’s involvement in a Fair Housing Act case in Long Island, New York. HUD announced in July 2022 that an Administrative Law Judge delivered a decision finding Long Island landlord Alex Raimos guilty of violating the Fair Housing Act, ordering Raimos to pay some $70 thousand in penalties and damages. This Fair Housing case began because the landlord refused to rent “to a mother and her daughter because of the daughter’s cerebral palsy” according to a | more...

July 14, 2022

HUD Announces Appraisal Update

By Joe Wallace

The Department of Housing and Urban Development official site contains an FHA Mortgagee Letter published on July 12, 2022, which announces an important update to FHA appraisal policy. FHA loan rules as published in HUD 4000.1, include a maximum age for an appraisal. If an appraisal is about to expire, FHA rules permit an extension of the appraisal validity period for 30 additional days. In some cases, an appraisal update may be permitted but that update must typically be accomplished before the original appraisal expires. Now, FHA appraisal guidelines have been revised to expand the appraisal validity period, which the FHA and HUD say will reduce “financial burdens” of getting appraisal updates. The changes are also meant to help the agency “more closely align” the FHA loan program’s initial appraisal | more...

July 11, 2022

FHA Adds New Income Flexibility Guidelines For FHA Borrowers Affected By COVID-19

By Joe Wallace

During the global COVID-19 pandemic, many house hunters experienced a loss of income because of coronavirus-related employment gaps, job losses, and similar financial hardship. When you are applying for a mortgage loan, late and missed payments can have a negative effect on your ability to find an affordable home loan. There were many forms of relief for COVID-19-related economic hardship, but as the fallout from COVID continues, it’s clear that some additional measures are needed. That’s one likely reason the FHA has announced updated COVID-19 credit qualifying guidelines for borrowers trying to buy a home with an FHA mortgage. In early July 2022 the FHA announced new guidelines for participating FHA lenders. These new guidelines permit more flexibility for the lender when qualifying a borrower who may have income or | more...

June 8, 2022

HUD Announces More Fair Housing Funds

By Joe Wallace

The Department of Housing and Urban Development has been very active on the Fair Housing front in 2022. A June 2022 press release by HUD announces even more funding to combat violations of the Fair Housing Act such as illegal discrimination in the housing process. Why so much activity in 2022? It’s thanks in part to language in the American Rescue Plan of 2021, which acknowledges that “fair housing enforcement and education and outreach services are an essential component of protecting persons from housing discrimination” in the United States. The latest move in supporting fair housing enforcement and awareness? HUD’s announcement of funding support for Fair Housing organizations “working to end housing discrimination” according to the press release. The funding is made possible via the HUD Fair Housing Initiatives Plan | more...

June 3, 2022

What Is An FHA Loan Rate?

By Joe Wallace

What Is An FHA Loan Rate? The interest rate that is charged on your 15 or 30-year FHA mortgage. There are some facts you should know about FHA loan rates, discount points, and how the rates may vary. FHA Loan Rates Are Set By The Lender Technically speaking, the mortgage loan interest rate on your loan is something you negotiate with your loan officer. Your access to the most competitive FHA loan rates will be determined by your FICO scores and other financial qualifications. The better your FICO scores are, the more competitive the interest rate offered might be. If you are worried about your FICO scores ahead of your home loan application, begin credit monitoring and work to maintain or establish a record of on-time payments for all your | more...

June 1, 2022

June 2022 Is National Homeownership Month

By Joe Wallace

On the last day of May 2022, President Biden issued a proclamation that June 2022 is National Homeownership Month. It’s the 20th anniversary of the observance and the Department of Housing And Urban Development issued a statement about it, reminding us that homeownership has benefits and that equal opportunity and access for all should be the norm in the 21st century. During National Homeownership Month 2022, the FHA and HUD plan a series of events designed to raise awareness of fair housing issues, increase the amount of affordable housing, and make the homeownership process sustainable. “Each June, we mark National Homeownership Month, a time for HUD and FHA to renew our commitment to supporting individuals and families in achieving and sustaining homeownership,” says HUD Secretary Marcia L. Fudge, who was | more...

April 27, 2022

The End Of April Is The End Of Fair Housing Month 2022

By Joe Wallace

Saturday, April 30, 2022, is the last day of Fair Housing Month. But the advent of May doesn’t mean that the fight against housing discrimination comes to an end. The Department of Housing and Urban Development encourages all who may have experienced some form of discrimination in the housing process to come forward and report the incidents to the HUD Office of Housing and Equal Opportunity or FHEO. FHEO is responsible for enforcing the Fair Housing Act, but also the following laws that contribute to fair housing for all: Title VI of the Civil Rights Act of 1964 Section 109 of the Housing and Community Development Act of 1974 Section 504 of the Rehabilitation Act of 1973 Titles II and III of the Americans with Disabilities Act of 1990 The | more...

April 21, 2022

HUD Announces Fair Housing Conciliation Agreement With Bank Of America

By Joe Wallace

Housing discrimination comes in many forms. The Fair Housing Act makes it a crime to discriminate against people at any stage in the housing process. You cannot be denied a loan, services, or assistance due to your race, religion, marital status, sexual orientation, gender identity, or any other non-financial factor listed in the Fair Housing Act. Yet, discrimination persists, even among major corporate lenders and other industry players. The Department of Housing and Urban Development has announced a Conciliation Agreement with Bank of America, N.A., “to resolve allegations of familial status and sex discrimination under the Fair Housing Act.” Bank of America, and one of its loan officers, “allegedly refused” to approve a home loan for a couple, “until after one of the applicants returned to work from maternity leave.” | more...

April 18, 2022

Applying For An FHA Mortgage With A Changed Name

By Joe Wallace

It is illegal under the Fair Housing Act to discriminate against a person who seeks housing because of gender, gender identity, sexual orientation, family status, and any number of other non-financial issues. But in addition to the Fair Housing Act, there are certain Know Your Customer best practices required for both buying a home and renting that help establish the identity of the renter or buyer. Your lender will require you to verify your identity with a photo ID, tax documents, Social Security Number, and/or other identifiers. But what happens if the name on these documents isn’t the same as the name you have now or will have in the future? If you have a need for a legal name change these best practices can get a little complicated, and | more...