February 21, 2019

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Articles in Category: HUD Regulations

FHA loan policy changes for income and employment verification

Are Free Credit Reports Trustworthy?

Long before you fill out FHA home loan application forms, you should be requesting copies of your credit reports and reviewing the information your lender will see when you are ready to get your new home loan. There are many websites and third-party companies that offer free credit reports to help loan applicants, but not all of them are interested just helping consumers. Can you trust the companies that offer free credit reports and credit score information? While it’s not possible to recommend a specific organization (with one exception), it is good for consumers to remember that many companies offer free services in exchange for your personal data that can be used to market goods and services to you via your cell phone number, email address, and other information. The | more...

 
FHA loan policy changes for income and employment verification

FHA Loans: What Does It Mean To Be A First-Time Home Buyer?

What does it mean to be a first-time home buyer when applying for an FHA home loan? Many borrowers want to know if there is an advantage to applying for an FHA mortgage if they have never borrower money for a home before. What is the reality? The FHA loan program itself does not give advantages to the first-time home buyer, nor does it penalize someone who has owned a home before. All financially qualified applicants are able to get an FHA loan even if they have purchased a home before. That does NOT mean first-time home buyers won’t get offered incentives from a participating FHA lender, but those incentives are offered by the lender and not via the FHA home loan program itself. Borrowers who are first-time home buyers | more...

 
Getting A Mortgage With A Low Credit Score

When Is An Appraisal Required For My FHA Mortgage Loan?

When is an appraisal required for an FHA home loan? This important question often comes up when borrowers want to refinance a home using an FHA refinance loan such as cash-out refinance, FHA Streamline Refinance, or even when the borrower wants to apply for an FHA Reverse Mortgage. Appraisals are required for most FHA loan transactions-you will always have to pay for an appraisal for an FHA forward mortgage, which is the kind of loan you will apply for when purchasing a new home. Appraisals are required for both existing construction loans and FHA One-Time Close construction loans, though the process will vary for construction loans due to the nature of the transaction. Appraisals will also be required for FHA Rehab loans. The appraisal is intended to establish the fair | more...

 
HUD announces disaster relief for Alaska earthquake victims

HUD Settles Housing Discrimination Complaint Against San Francisco Real Estate Companies

There are many types of housing discrimination; some occurs when a house hunter is searching for a home, trying to rent in the local area and encountering violations of the Fair Housing Act while trying to do so. Other types of housing discrimination can occur in the house hunting process itself. Housing discrimination may come from a variety of sources; including, in the case of a recent HUD Fair Housing settlement, real estate firms. The HUD official site announced a settlement in June in the case of two San Francisco-based real estate companies accused of Fair Housing Act violations. HUD approved “a Voluntary Compliance/Conciliation Agreement settling a complaint filed by a family whose infant has a disability against San Francisco, California-based John Stewart Company and Hunters Point East West, LP.” | more...

 
Is Now The Right Time To Buy Your First Home With An FHA Mortgage?

FHA Home Loan Rules For New Construction Appraisals

Borrowers who are interested in having a home built for them from the ground up using an FHA construction loan such as an FHA One-Time Close mortgage or any other type of FHA-guaranteed mortgage loan may wonder what the rules are for appraisals. After all, existing construction appraisal processes are for a home that is ready to sell (although the process may vary if the borrower is applying for certain types of rehab loans). While the appraisal requirements may be generally the same-the home must be safe, habitable, and have an economic life for the entire duration of the mortgage-there are procedural issues that affect new construction properties. With that in mind, appraisals on new construction run a bit differently in some procedural ways than existing construction mortgages; with the | more...

 
Types of FHA Mortgages: New Purchase Loans

FHA Home Loan Closing Costs You Should Anticipate

FHA home loans have closing costs a borrower should plan to save and pay for. No matter if you need an FHA Home Equity Conversion Mortgage, a 203(k) rehab loan, or an FHA One Time Close construction loan, there will be closing costs to pay for. No borrower should plan for a home loan without anticipating the closing costs. You should budget and save for these expenses as early as possible-once you know you are interested in purchasing a home, you should prepare for these costs. HUD 4000.1 tells the lender that FHA loan rules permit closing costs; the lender “may charge and collect from Borrowers those customary and reasonable closing costs necessary to close the Mortgage. Charges may not exceed the actual costs.” This is not a complete or | more...

 
FHA Loans Are Available During The Government Shutdown

HUD Announces Resolution In California Fair Housing Case

The Department of Housing and Urban Development has announced the resolution of a California Fair Housing Act discrimination case. According to a press release at the HUD official site, the agency has reached an agreement with the Housing Authority of the County of Contra Costa (HACCC) and the Vallejo Housing Authority (VHA), “resolving allegations that they violated the Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, and the Americans with Disabilities Act when they allegedly denied a request by a resident with disabilities to extend her search time to find suitable housing that would accept her Housing Choice Voucher”. Fair Housing Act laws make it illegal to discriminate against those buying or renting a home by “denying or limiting housing to persons with disabilities, or discriminating in | more...

 
How Much Will My FHA Appraisal Cost?

What Can Affect An FHA Appraisal Or Inspection?

What can affect an FHA appraisal or an FHA-required inspection? There are many factors that might influence the outcome of these procedures. For example, borrowers who are having a home custom-built using an FHA One-Time Close construction loan will learn about appraisal requirements that include noting the proximity of the project to gas stations, power lines, and other safety-related issues. The rules that instruct the lender and appraiser in these areas can be found in the FHA loan handbook, HUD 4000.1. Airport hazards, slush pits, and operating oil wells are just some areas the appraiser will note where applicable. For projects classified as New Construction under FHA loan rules, the appraiser must note the general environmental conditions of the area of the construction project and adjacent areas. According to HUD | more...

 
FHA Loans And The 2019 Government Shutdown

HUD Announces Aid Package For Puerto Rico

The Department of Housing and Urban Development has announced a billion dollar relief package for Puerto Rico. According to a press release on the HUD official site, the agency “awarded more than $1.5 billion to help Puerto Rico to recover from Hurricanes Irma and Maria.” The funds are available via $7.4 billion in CDBG-DR (see below) funding for major disasters declared in calendar year 2017 thanks to a continuing resolution signed into law in September 2017. The HUD Deputy Secretary Pamela Hughes Patenaude discussed these HUD disaster recovery grants with Governor Ricardo Rosselló during a visit to Puerto Rico in the aftermath of Hurricanes Irma and Maria. Governor Rosselló, quoted in the press release, added, “On behalf of the many thousands of survivors here in Puerto Rico, I want to | more...

 
FHA Loans Are Available During The Government Shutdown

HUD Settles California Fair Housing Case

The Department of Housing and Urban Development has announced a settlement in a California Fair Housing case. According to a press release on the HUD official site, the agency “has reached a conciliation agreement with the Richmond Housing Authority (RHA) in Richmond, California, settling allegations that it discriminated against a resident with disabilities.” Federal Fair Housing Act regulations prohibit the discrimination in the process of selling or renting a place to live because of the applicant’s disability. Fair Housing laws also forbid refusal to make reasonable accommodations for those disabilities. The settlement is the result of a resident’s complaint, “alleging that the Richmond Housing Authority failed to renew his Housing Choice Voucher before it expired” according to the press release. The complaint states that the resident submitted a request to | more...