December 14, 2017

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Articles in Category: FHA Lenders

What is my FHA home loan down payment?

What Is An FHA Loan Rate?

What Is An FHA Loan Rate? Simply put, the FHA loan rate is the interest rate charged on your 15 or 30-year FHA mortgage. There are some facts you should know about FHA loan rates that will make understanding them much easier. 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, but beyond that you may have the option to buy down interest rates using discount points, which is something you and the lender should discuss as early as possible in the loan process. We’ll come back to discount points in a moment, | more...

HUD Charges Kansas Property Owners With Fair Housing Violations

HUD Kicks Off National Homeownership Month

The HUD official site ( has announced that June is National Home Ownership Month. According to a HUD press release, June has been declared a time, “to reflect upon the impact owning a home has on household wealth, neighborhood stability and the nation’s broader economic health. The theme of National Homeownership Month 2017 is ‘Find Your Place in a New Era of Homeownership.'” The press release also adds that HUD Secretary Ben Carson helped begin Homeownership Month, “by hosting an academic forum on the state of homeownership in the U.S. following the housing crisis, specifically the challenges Millennials face” as the generation enters the job and housing markets. “After all we’ve been through, homeownership remains an American value and the cornerstone of our economy,” said Secretary Carson in the HUD | more...

What Is An FHA Loan Limit?

FHA Loan Application Data: What You Should Know

The FHA single family loan program rule book, HUD 4000.1, has a variety of rules and instructions to the lender on how FHA loan application information is to be handled and processed. You might not think those rules affect you as an applicant, but some of the rules do pertain to how the lender must collect the borrower’s information and the approved sources of that information. Your credit scores and other data must be given to the lender from approved sources. Did you know that HUD 4000.1 does not permit the borrower to handle or transmit certain kinds of information to the lender? Your loan officer is responsible for making sure she gets the information from the proper sourcing. According to HUD 4000.1: “Mortgagees must not accept or use documents | more...

Can I buy a manufactured home with an FHA loan?

Work Absences And FHA Loans

Can FHA loans depend on a borrower not having medical leave or temporary absences from work? That’s what one reader wants to know this week: “I was out from work one month do to a job related injury. Can I get an FHA loan? How long I have to wait to qualify? I have been working for the same company three years.” FHA loan rules may be non-specific on certain types of circumstances, preferring to defer to state law, lender standards, or other guidelines. However, this situation is not one of those. HUD 4000.1 specifically addresses the issue of temporary absences from the applicant’s place of employment. HUD 4000.1 describes this as a “temporary reduction of income”, stating: “For Borrowers with a temporary reduction of income due to a short-term | more...

HUD Takes Measures To Speed Up Hurricane Recovery Efforts

April Is National Fair Housing Month

National Fair Housing Month is a bit more than half over, but it’s an important time to raise awareness of Fair Housing laws, how they affect mortgage loan applicants, and how such laws affect renters as well as borrowers. Do you know about your Fair Housing Act rights under the law? The FHA/HUD official site reminds its’ readers, “The Fair Housing Act protects people from discrimination when they are renting, buying, or securing financing for any housing. The prohibitions specifically cover discrimination because of race, color, national origin, religion, sex, disability and the presence of children”. You read that correctly-as a renter, a buyer, or an applicant, your rights include equal consideration regardless of the presence or absence of any of the factors listed above. Fair Housing laws do have | more...

Do Section 8 Housing Vouchers Count For FHA Loans?

FHA Loans and Co-Signers: A Reader Question

A reader asked us a question about FHA loans and co-signers recently. “If I cosigned for a friend and he refinanced to get everything put in his name and me taken off, am I eligible for an FHA loan for my own home?” FHA mortgage loan requirements refer to co-signer arrangements and “contingent liabilities”. HUD 4000.1 says: “A Contingent Liability refers to a liability that may result in the obligation to repay only when a specific event occurs. For example, a contingent liability exists when an individual can be held responsible for the repayment of a debt if another legally obligated party defaults on the payment. Contingent liabilities may include Cosigner liabilities and liabilities resulting from a mortgage assumption without release of liability.” If the reader’s circumstances meet that definition | more...

FHA loans

Happy Presidents Day 2017!

Happy Presidents Day! Markets and banks are closed in observance of the holiday, and we pause our usual posts on FHA loan issues and reader questions about FHA mortgages as well. Our regular posting schedule returns on Tuesday. Have a safe and happy holiday and thank you for reading!


Switching Lenders: The FHA Loan Rules in 2017

Home loans sometimes feature complications. A borrower may decide to cancel the transaction altogether, have a change of mind on certain details of the mortgage, or in some cases switching lenders may be required. What are the FHA loan rules for switching lenders? Borrowers should know that the FHA loan rule book, HUD 4000.1, has some specific instructions in this area. Borrowers can expect the loan rules to function in some very specific ways should this be needed. According to HUD 4000.1: “The original Mortgagee must assign the case number to the new Mortgagee using the Case Transfer function in FHAC immediately upon the Borrowers request” (emphasis ours). The case number mentioned here refers to the FHA-assigned number required to move forward with the mortgage. Having an FHA case number | more...

HUD Takes Measures To Speed Up Hurricane Recovery Efforts

HUD Announces Relief For Louisiana Tornado Victims

Federal relief is available for those affected by tornadoes in Louisiana. On Monday, February 13th 2017, the U.S. Department of Housing and Urban Development (HUD) announced it will “speed federal disaster assistance to the State of Louisiana and provide support to homeowners and low-income renters forced from their homes due to severe storms, tornadoes, and straight-line winds” according to a press release on the FHA/HUD official site. There has been a federal disaster declaration for Livingston and Orleans parishes. “The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county” according to What types of assistance are available? Foreclosure relief, rehab loans, rehab refinance loans, and other options. There may also be assistance from FEMA available to affected home owners. According | more...

FHA loans

Happy Martin Luther King, Jr. Day!

Happy Martin Luther King, Jr. Day! Banks and markets are closed today to observe the holiday and we too feel it’s very important to remember this important day. America owes a great deal to Dr. Martin Luther King, Jr. and we are proud to observe this day dedicated to him. We pause are regular coverage of FHA news and answering reader questions about FHA home loans to observe the holiday. We resume our usual schedule of posts tomorrow. Thanks for reading!