September 19, 2019

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Articles in Category: Special FHA Programs

HUD Releases Housing Reform Recommendations

HUD Announces Housing Reform Recommendations

The Department of Housing and Urban Development has issued recommendations to the President for housing reform, including attention on down payment assistance programs and cash-out refinancing. According to a press release issued on the HUD official site, this is NOT the same housing finance reform plan, which was developed by the U.S. Treasury Department. There are major differences between the two in some respects including the HUD language discussing the need to focus on “the core mission” of the FHA where home loans are concerned. It’s the view of the Treasury Department (as stated in the plan) that any changes to the core of what has traditionally been considered an FHA loan program could be detrimental. The Treasury Department plan states, “…any proposal to fundamentally change the housing finance system | more...

 
HUD Disaster Resources

HUD Disaster Resources

The Department of Housing and Urban Development is reminding homeowners of the disaster resources available from federal agencies including HUD, the FHA, FEMA, and more. Those in federally declared disaster areas are eligible for special FHA home loan forbearance and other foreclosure avoidance measures. But loan forbearance and foreclosure avoidance are NOT automatic. All home owners still paying their mortgages at the time of the disaster should contact their lenders to discuss next steps and how to make arrangements to avoid home loan default and foreclosure. Lenders cannot help borrowers who do not do so, and it pays to be proactive, especially where FHA mortgages are concerned. FHA Foreclosure and Loss Mitigation Policy FHA lenders are given freedom to use “reasonable judgment in determining who is an ‘affected borrower’ in | more...

 
HUD Announces Expanded Disaster Relief Options

HUD Announces Expanded Disaster Relief Options

The FHA and HUD have announced expanded disaster relief measures for those in federally declared major disaster areas. The changes (see below) must be implemented no later than November 30, 2019 but may be used by lenders right away. The FHA and HUD advise these changes will be reflected in a pending update of the FHA Single-Family Loan Handbook, HUD 4000.1. On Thursday, August 29, 2019, the Federal Housing Administration announced in a press release that the agency is, “expanding its foreclosure prevention options to allow borrowers in Presidentially Declared Major Disaster Areas (PDMDAs) with delinquent FHA-insured mortgages to bring their mortgages current without increasing their interest rates or principal and interest payments.” This is an expansion/enhancement of a temporary measure announced in 2018; Mortgagee Letter 2018-01 “temporarily amended” FHA/HUD | more...

 
Home Repairs With An FHA Loan

VA One-Time Close Construction Loan Tips

There are plenty of VA One-Time Close (VA OTC) / Single-Close construction loan tips you should know about-probably as many as for FHA One-Time Close loan or the USDA One-Time Close equivalent. Did you know that the size of your project could affect your ability to get a no-money-down VA home loan? Or that you should discuss the amount of time your VA OTC loan might take with the seller of the land if you are purchasing land and building the home? Know these issues before you apply for best results when you are ready to commit to your VA construction loan. VA One-Time Close Construction Loans / Single-Close Construction Loans Require A Contractor VA loan rules for construction loans require the borrower to hire an outside contractor rather than | more...

 
Top Tips For FHA One-Time Close Mortgages

Five Tips For FHA One-Time Close Mortgages

One-Time Close Construction Loans May Take Longer To Close Than A Purchase Loan For Existing Construction You should discuss the amount of time your FHA OTC loan might take with the seller of the land if you are purchasing land and building the home. Timelines may be very important depending on circumstances. Find out how long the loan may take to close in your area and discuss this with the seller to see if the time frame is acceptable. Contractors For One-Time Close Construction Loans / Single-Close Construction Loans FHA construction loans include certain lender requirements that can vary depending on the lender. Borrowers should anticipate having to hire an outside contractor rather than trying to do the work personally. The builder and borrower will have to work together to | more...

 
FHA Home Loan Down Payment Assistance

FHA Construction Loan Facts

Some borrowers, including some first-time home buyers, don’t want to buy someone else’s house. They prefer a home built to suit; real estate built from the ground up using borrower-approved plans. This kind of home loan is available as an FHA mortgage from participating FHA lenders. It is called an FHA One-Time Close construction loan and it is an excellent alternative to buying an existing construction house. What do you need to know about FHA One-Time Close Construction Loans? For starters, these loans do not have a different down payment requirement than other FHA mortgages-the same low down payment options exist for borrowers with qualifying FICO scores. Your lowest possible down payment on a home built using an FHA construction loan is the same 3.5% as other FHA mortgage options. | more...

 
FHA Loan Rules For Second Residences

June Is National Home Ownership Month

June is National Homeownership Month. The Department of Housing and Urban Development announce this on their official site as “a time to recognize the importance of homeownership to the U.S. economy and the benefits owning a home have on building household wealth for families”. National Housing Month is a time the agency uses to raise awareness of home ownership issues much in the same way that April is used (as Fair Housing Month) to raise awareness of federal law that protects house hunters and renters from discrimination in housing. This year, the Department of Housing and Urban Development has announced millions of dollars in funding in support of “sustainable homeownership”; the agency announced $43 million in grants intended for housing counseling organizations nationwide. “HUD-approved housing counselors can make all the | more...

 
The Confusion Over Closing Costs Versus Down Payment

What Is An FHA REO Home?

The FHA Real Estate Owned program or FHA REO program has gotten some media attention lately, which likely has more people wondering what exactly this program is. The HUD REO program, sometimes known as HUD Homes, is described on the FHA / HUD official site as “…a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim”. The HUD Home Store is the official HUD site used to list these HUD REO homes for sale to the public, real estate brokers, state and local governments and nonprofit organizations. What does the general public need to know about buying HUD REO homes? According to HUD, | more...

 
FHA One-Time Close Construction Mortgage Basics

FHA One-Time Close Construction Mortgage Basics

FHA home loan options are not limited to existing construction housing. FHA borrowers, including first-time home buyers, have the option to apply for a FHA One-Time Close Construction loan. This allows any borrower who financially qualifies to have a home built for them from the ground up. FHA One-Time Close loans have some basic requirements; some of these are FHA loan program rules, but others are unique to an individual lender. For example, FHA One-Time Close mortgages, also known as FHA OTC loans, technically allow a borrower to build a home with more than one unit. But many lenders may restrict these mortgages to single-unit properties. Or they may not permit the financing of certain closing costs, require higher FICO scores, etc. Much depends on the rules of the specific | more...

 
HUD Announces Expanded Disaster Relief Options

HUD Announces Disaster Relief For Iowa and Nebraska Storm Victims

The Department of Housing and Urban Development recently announced disaster relief for victims of storms in Nebraska and Iowa. The agency issued press release stating it would “speed federal disaster assistance “to the State of Iowa and the State of Nebraska to offer “support to homeowners and low-income renters forced from their homes in areas affected by severe storms and flooding”. In March, there was a declaration of a major disaster area for Iowa counties including Fremont, Harrison, Mills, Monona, and Woodbury. There was also a major disaster declaration in March for Nebraska counties including Boone, Buffalo, Butler, Cass, Colfax, Custer, Dodge, Douglas, Knox, Nemaha, Richardson, Santee Indian Reservation, Sarpy, Saunders, Thurston, and Washington. These declarations allow HUD to offer FHA borrowers in the affected areas foreclosure relief in the | more...