April 19, 2021

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Articles in Category: FHA Lenders

HUD Announces Changes To Exterior-Only Appraisal Guidelines For FHA Purchase Loans

HUD Further Extends COVID-19 Foreclosure Relief

The FHA and HUD have announced new modifications to coronavirus relief options for FHA borrowers in need of foreclosure avoidance help during the pandemic. Effective immediately, HUD has implemented a variety of modifications: Extended foreclosure and eviction moratoriums now expire June 30, 2021; Deadline for “first legal action” and “Reasonable Diligence Time Frame” is extended to 180 days; COVID-19 Forbearance start dates are now extended to June 30, 2021; HECM extension period is extended to June 30, 2021; HUD now offers up to two additional three-month COVID-19 Forbearance periods or HECM extension periods “for certain Borrowers”; HUD now allows additional Borrowers, “regardless of delinquency status or participation on a COVID-19 Forbearance” to apply for FHA’s COVID-19 Loss Mitigation Options; HUD has removed the restriction on “Borrowers receiving more than one | more...

 
Time is running out for FHA mortgage loan relief

FHA Refinance Loan Options: Why You Should Consider A Streamline Refinance

Do you need to consider refinancing your current FHA home loan? Interest rates are still very low in the earliest weeks of 2021 and while there is no guarantee mortgage rates will remain quite this low for the duration of the year, now is a great time to consider your options for a lower mortgage payment via an FHA Streamline Refinance loan. Interest rates in the opening weeks of 2021 are still at the time of this writing below the three percent line for 30-year fixed rate government-backed mortgages such as FHA loans. A mortgage industry company, Black Knight, has issued a report that noting that at the end of January 2021 there were some 45 thousand people exiting home loan forbearance programs and another nearly 50 thousand loan forbearance | more...

 
Is your credit ready for an FHA loan?

What Affects My FHA Loan Approval? Debt Ratio Issues

Every mortgage or finance blog includes a lot of writing and advice about the need to monitor your credit reports. And make no mistake, this is important advice that is good to follow, but if you are in the market for a new home in 2021 the amount of monthly debt you have compared to your monthly income will be just as important for loan approval. Why Your Debt Matters Some applications crunch the numbers and believe they can afford the loan on paper. But what happens when that does not match what the lender gets when she runs your debt ratio numbers? People who technically qualify on paper but not in reality are bad risks for the lender and their jobs depend on screening out those bad risks. And | more...

 

Happy Veterans Day 2020

Happy Veterans Day! Many banks will be closed to observe this federal holiday, bond markets are closed, and we pause in our usual routine of discussing home loan issues and answering questions about FHA home loans to honor our veterans. Thank a veteran for her service, and remember the sacrifices all our troops have made no matter where in the world they may be stationed. To all current and former members of the U.S. military, THANK YOU for your service! Our regular posting schedule resumes tomorrow.

 
Mortgage Rate Trends

Mortgage Loan Interest Rate Trends

FHA mortgage loan rates have had a wild ride in 2020, and that is likely not over headed into the November and December holiday seasons. The 52-week average for government-backed mortgage loan interest rates has a bottom at 2.25%, which is significant since mortgage loan rates had, until this year, rarely seen territory below the three percent range. And the upper end of the 52-week average at the time of this writing is four percent–that should give you a good idea of how rates have fluctuated in the last 12 months. There is still plenty of uncertainty over which way rates might trend into the new year after the election season, continued issues with COVID-19, etc. At the time of this writing, the best-execution FHA mortgage rates (assuming ideal conditions) | more...

 
Warning Signs of Foreclosure Relief Scams

Warning Signs Of Foreclosure Relief Scams

Foreclosure scams are very much on the rise in an era where more borrowers than ever need some form of foreclosure prevention, mortgage relief, or other options to save their homes during times of financial uncertainty. Fortunately, many of these scams have some tell-tale warning signs you can use to avoid getting conned. The federal government warns consumers to watch out for the indicators that a scammer is at work instead of a legitimate offer of help. The Federal Trade Commission warns home owners to stay vigilant, especially when the following signs are present from any business which: offers to provide the homeowner with a loan modification regardless of circumstances; tries to get you to do an end-run around your current lender and asks you not to contact the lender, | more...

 
The FHA One-Time Close Construction Loan: An Option In 2020

FHA Implements New Construction Loan Rule Changes

The FHA has announced rule modifications for its new construction loans. On October 22nd, 2020, the FHA and HUD issued a Mortgagee Letter detailing modifications made in 2018 and 2019 which have resulted in a need for further alterations of the rules for New Construction loans. Some of the changes end requirements for “Early Start Letters” and other requirements, others make provisions for “alternative inspections” as we’ll discover below. The FHA/HUD official site states there are also changes to the maximum financing policy for FHA New Construction loans. Effective immediately–lenders can choose to wait on implementing these modified rules until January 4, 2020, but have the option to start using the new rules now if they so choose) the following modifications are being added to HUD 4000.1: Eliminating Early Start | more...

 
Getting Ready For Your Home Loan

Changes To The Home Loan Industry

Coronavirus has and COVID-19 containment measures have forced those in many career fields to change how business gets done–and the mortgage industry is no exception. It is clear that the economic fallout from the current crisis will be felt for years to come, and there are many who look to the amount of time it took for the nation to economically recover from the housing crisis of 2008, thinking that better long-term planning this time around might be the best approach. Mortgage Industry Changes Consumers have already experienced how Coronavirus has forced changes in proceedures related to buying and selling a home. The in-person walkthrough, the open house, and the in-person appraisal are all much more rare at the time of this writing in many communities. Not all require the | more...

 
FHA And HUD

FHA and HUD Announce More Enhancements To COVID-19 Mortgage Relief

The COVID-19 situation in America means dealing with an ever-changing environment created by coronavirus and its’ containment measures. Economic impact of the virus outbreak has forced millions of home owners to seek economic relief including mortgage loan forbearance. The First Round Of HUD Relief The FHA and HUD created an initial round of FHA mortgage loan forbearance for those experiencing a loss of income and/or having trouble making mortgage payments as a result of the pandemic. But the first announcement was followed by updates and refinements. And now there are further updates that can help borrowers keep their homes after an initial round of COVID-19 loan forbearance. FHA Mortgagee Letter 2020-22 announces improvements and the establishment of foreclosure avoidance possibilities the FHA is calling “Home Retention And Disposition options” including: | more...

 
Credit Requirements For Your FHA Home Loan In 2020

Mortgage Scams During COVID-19: Borrower Beware!

The Federal Trade Commission warns mortgage borrowers to beware of scams that prey upon homeowners in trouble during the coronavirus outbreak. The FTC Chairman, Joe Simons, was quoted in an FTC press release advising borrowers about the FTC’s role in prosecuting scam artists taking advantage of Americans who have been affected by COVID-19. “The FTC is ready to assist businesses that may seek guidance about compliance obligations on consumer protection issues during this unprecedented time,” Simons said in the press release. If you have been contacted by a third party about coronavirus financial relief and suspect a scam artist at work, report coronavirus-related scams at ftc.gov/complaint. What should consumers do to protect themselves from coronavirus mortgage scams? The first step is simply to recognize that if you have not initiated | more...