March 30, 2020

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Articles in Category: FHA Lenders

Mortgage Industry Seeks Federal Relief For Borrowers

Mortgage Industry Seeks Federal Relief For Borrowers

The coronavirus pandemic created financial chaos across the globe; America is on the verge of a massive financial bailout for consumers and industry to the tune of $2 trillion or more. States, lenders, and the federal government all have a keen interest in helping homeowners avoid financial crises, loan default, and foreclosure. And now the mortgage industry has rallied to petition the White House for funds to assist homeowners. On March 24, 2020, HousingWire.com ran a press release discussing a letter sent to the White House asking for mortgage relief for borrowers including delayed payments and interest. The proposal includes the following benefits: A 90-day delayed payment option for mortgage payments; A proposed one-year loan forbearance period; Payment forbearance protections such as no negative credit reporting or collections; Introducing reduced | more...

 
Do You Need Down Payment Help?

FHA Home Loan Pre-Approval And Mortgage Loan Approval

We encourage potential FHA borrowers to get pre-approved for a home loan before house hunting. If you are new to the home loan process, you might not be sure what the difference is between FHA loan approval and getting pre-approved for an FHA mortgage. What is that difference? Getting through the initial pre-approval application does not mean you’ve been fully approved for the mortgage. But it IS an important tool for soon-to-be homeowners. Home loan pre-approval is a tool for both borrower and lender to determine if you’re ready to buy based on your income, debt to income ratio levels, the amount of down payment you have saved, etc. Think of pre-approval as the start of the loan process, but it is not a guarantee that you have an FHA | more...

 
FHA Cash-Out Refinance Loans: Common Questions

Where To Find An FHA Home Loan

Where do you get an FHA home loan? The simplest answer is that you get one from a participating FHA lender. Not all banks or financial institutions support FHA home loans, and those that choose to do so must be vetted and approved by the government first. FHA Loans Are Offered By Participating Lenders As mentioned above, not all lenders participate in the FHA loan program–but did you know some are not permitted to participate, and some may not be certified by the FHA yet? Your search for a lender may seem daunting, but you can be matched with a participating lender online and do the initial loan screening online, too. You’ll need a variety of information including your estimated budget for the purchase, the desired term of the loan | more...

 
FHA Announces Modified Appraisal Rules During Coronavirus Outbreak

HUD Announces New Partnership To Enforce FHA Guidelines

The Department of Housing and Urban Development has announced the signing of a Memorandum of Understanding (MOU) between the agency and the Department of Justice designed to provide guidance on pursuing disciplinary actions in cases brought against participating FHA lenders who may be in violation under the False Claims Act (FCA). “This agreement clearly outlines our FHA mortgage program requirements, so they do not impede or discourage lenders from offering affordable FHA-insured loans to credit-worthy borrowers,” according to one HUD official quoted in the agency’s press release. The United States Attorney General is also quoted in the press release adding, “”This MOU sets forth a robust and collaborative process for deciding when to pursue False Claims Act cases to remedy material and knowing FHA violations,” The agreement means HUD and | more...

 
Buying a home is a major investment. And unless you are applying for a need-based loan such as a USDA mortgage, or if you are a qualifying veteran or military member applying for a VA mortgage, you will need to come up with a down payment.

What You Should Know About Mortgage Loan Interest Rates And The Fed Rate Cut

The week of September 16, 2019, the Fed cut interest rates for the second time in the year; the 25 basis-point rate cut alters the Fed rate but is not a direct cut or change to mortgage loan interest rates. Interest rate decline in 2019 have pushed more home owners toward refinance loans and many wondered if the latest Fed cut would affect mortgage loan rates in a refinance-friendly directions. Fed rate cuts do not get applied directly to mortgage loan interest rates, but investor behavior following the announcement of a rate adjustment, during the adjustment itself, and the aftermath may have a definite influence on mortgage rates. So if you find yourself wondering whether the Fed rate cut will change home loan interest rates, watch the investors and their | more...

 
FHA Home loan appraisal rules

FHA Home Loans For Manufactured Homes

Many borrowers want to know if there are FHA home loans for manufactured homes, modular homes, or mobile homes. The short answer is yes, there are, but the FHA home loan program does feature some rules you should know before deciding on the right manufactured home for you. FHA Loan Rules For Manufactured Homes: Permanent Foundation Required FHA mortgage loan rules for manufactured housing (located in HUD 4000.1) include a requirement that the property is or will become attached to a permanent foundation that meets federal and state requirements. FHA home loans cannot be made for any mobile home that cannot or will not be attached to a permanent foundation and FHA mortgages cannot be approved for recreational vehicles or houseboats. Manufactured Home Age Requirements Mobile homes and manufactured homes | more...

 
HUD Begins Foreclosure Relief For FHA Borrowers Affected By The Coronavirus Outbreak

FHA Announces New Condo Loan Rules

The Federal Housing Administration has announced changes to its’ condo approval policies that could make it easier for house hunters to find and purchase condo units with an FHA mortgage. The changes are intended to increase lender flexibility and to adapt to changing conditions in the housing market. The FHA and HUD issued a press release on the new rules which states that the new rules …“will allow certain individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved.” Under the old rules, a condo project had to be on the FHA approved list or added to it. As of October 15, 2019, the new FHA policies will, according to the FHA official site, include the following changes to FHA condo | more...

 
Home Loan Credit Advice From Credit Bureaus

Qualifying For An FHA Home Loan With Disability Benefits

FHA home loan rules permit the use of disability benefits to financially qualify for the loan. All income used in the lender’s debt ratio calculations must be verifiable, which means it must be a stable source of income and is likely to continue. Some borrowers worry that their disability income won’t be counted for the purposes of loan approval, but if that income meets FHA standards, there shouldn’t be any problem. Those standards are found in HUD 4000.1 and start with a basic definition: “Disability Benefits are benefits received from the Social Security Administration (SSA), Department of Veterans Affairs (VA), other public agencies, or a private disability insurance provider. “ These benefits must continue for at least three years into the mortgage to be counted as verifiable income. The lender | more...

 
Home Flipping and FHA Loan Rules

What You Need To Know About FHA Home Loan Credit Checks

What do first-time home buyers need to understand about the credit check process for getting an FHA mortgage? What you don’t know can hurt you in the journey toward buying that first piece of real estate. Before you begin working with a realtor, you should know several things about the credit check process. FHA Home Loan Credit Check Rules Your lender is required to pull your credit reports in order to approve or deny the mortgage. Your lender will review the following: Payment history Credit limits and how close the borrower is to those limits Overall patterns of credit use Date of the last late or missed payments where applicable FICO scores What Else The Lender Is Looking For Credit scores are not the only thing the lender is interest | more...

 
Buying A Home With A Lower Credit Score

Home Loan Rules You Should Know

What home loan rules should you know ahead of your mortgage loan application? There are several that you should keep in mind when planning and applying for your new home loan. FHA Loans Are Issued By Participating Lenders A lender must meet FHA standards, conform to the FHA loan program rules, and generally be recognized by the FHA as being permitted to issue FHA-guaranteed mortgage loans. But not all lenders choose to participate in the FHA home loan program so you may need to shop around for a lender. Shopping around is a good thing, but some feel that one lender is as good as another. When it’s time to compare interest rates and mortgage loan terms, you may find that to be untrue. But not all lenders choose to | more...