December 14, 2017

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Articles in Category: Special FHA Programs

FHA One-Time Close Requirements: Appraisals

FHA One-Time Close Requirements: Appraisals

FHA One-Time Close construction loans feature a single loan application and closing date for both the construction phase of the loan and the “permanent” portion of the loan. Like other FHA mortgages, an appraisal is required on the property to be secured by the mortgage. In general, FHA loan appraisal requirements include the following guidelines on the timing, as found in HUD 4000.1, the FHA loan handbook: “The effective date of the appraisal cannot be before the FHA case number assignment date unless the Mortgagee certifies that the appraisal was ordered for conventional lending or government-guaranteed loan purposes and was performed pursuant to FHA guidelines.” While this may not normally be an issue for construction loans given the timing of the appraisal, another portion of the same section of the | more...

 
What Is The Difference Between New Construction And Existing Construction?

What Is The Difference Between New Construction And Existing Construction?

What is the difference between new Construction and existing construction? For the purpose of an FHA home loan, the distinction can be important, even if it’s just on a procedural level. The FHA loan handbook (HUD 4000.1) makes important distinctions between new construction and existing construction loans. FHA Home Loans For Existing Construction Properties The FHA defines existing construction properties in a very specific way: “Existing Construction refers to a Property that has been 100 percent complete for over one year or has been completed for less than one year and was previously occupied.” The appraisal requirements for existing construction are not quite the same (in terms of timing, paperwork and required forms) but the issue that will most affect a typical borrower is in how the appraisal is to | more...

 
FHA Construction To Permanent Loan 2018

FHA Construction To Permanent Loan 2018

FHA construction To Permanent loans in 2018 are a great option for those who want to buy a home but aren’t interested in purchasing existing construction properties. If having a home built for you sounds better than buying one that already exists, the FHA Construction-To-Permanent loan, also known as an FHA One-Time-Close loan, might be right for you. FHA Construction To Permanent Loan Requirements The basic credit qualifying guidelines for FHA One-Time Close mortgages may vary more among participating FHA lenders. You may find a minimum FICO score requirement of 620 or higher depending on the lender, and in some cases you may learn that a lender has a minimum FICO score benchmark of 660 or better and that two FICO scores may be required. Credit requirements can be higher | more...

 
HUD Announces Hurricane Irma Aid Package For Hardest-Hit Florida Communities

HUD Announces Hurricane Irma Aid Package For Hardest-Hit Florida Communities

HUD has announced a multi-milllion dollar Hurricane Irma aid package for hardest-Hit Florida communities. A press release at the Department of Housing and Urban Development details the federal aid, intended for areas HUD deems the most affected. According to HUDNo.17-106, the aid package include $615,922,000 made available via the HUD Community Development Block Grant–Disaster Recovery (CDBG-DR) Program. “The entire federal family” stands with the people of Florida “to help them recover from this devastating storm as quickly as possible,” according to HUD Secretary Ben Carson, who is quoted in the press release, adding, “HUD and the State of Florida will work together to speed the rebuilding of seriously damaged homes and businesses that lack the resources to recover on their own if not for these recovery dollars.” In September, the | more...

 
How Do You Get A One-Time Close FHA Construction Loan?

How Do You Get A One-Time Close FHA Construction Loan?

How do you get an FHA construction loan? If you want to have a new home built from the ground up (as opposed to buying an “existing construction” home that already exists), an FHA new construction loan is possible. The FHA One-Time Close construction loan makes it much easier with a single application and closing for the entire project. Other types of construction loans feature TWO closing dates and a more complex process. FHA One-Time Close mortgages simplify the construction loan by wrapping the entire loan process up with a single application and loan approval. Not all FHA lenders offer construction loans, so you’ll need to shop around to find the right lender for your needs. There are two basic types of FHA construction loans-a “traditional” construction loan, and an | more...

 
Does FHA have a disaster loan program?

Does FHA Have A Disaster Loan Program?

Does FHA have a disaster loan program? The short answer is yes, and it is quite different than a standard FHA forward mortgage. The FHA 203(h) loan is available as a new purchase mortgage or a refinance loan. In this case “new purchase” may lead some to believe you are only allowed to buy a new home with an FHA 203(h), but the reality is that you can use the 203(h) to rehab an existing damaged home, or purchase a replacement home. FHA 203(h) Disaster Loans: Unique Requirements FHA 203(h) disaster loans are only approved for those who are in federally-declared disaster areas. You cannot be approved for an FHA 203K(h) mortgage if you are not in a one of the official presidentially-declared federal disaster areas. You can check the | more...

 
FHA One-Time Close Construction Loans: Utilities

FHA One-Time Close Construction Loan Rules: Utilities

FHA loan rules for One-Time Close construction loans include a set of requirements the finished property, which must meet both state/local building code and FHA loan minimum property standards. Those FHA standards include a set of requirements for access, utilities, and water quality which must be met as a condition of loan approval. It’s surprising to some FHA loan applicants that certain features of a new construction home are A) regulated and/or B) allow things like septic tanks or wells. But not all properties are the same, and some construction issues are present in some housing markets that aren’t a consideration elsewhere. Well water is a great example. When a resident of a large metropolitan areas thinks of a new construction home, it’s likely that issues surrounding wells and well | more...

 
HUD Announces Hurricane Irma Aid Package For Hardest-Hit Florida Communities

HUD Makes Disaster Relief Available For California Wildfire Victims

The Department of Housing and Urban Development has announced disaster relief for victims of California wildfires, following a presidential declaration of federal disaster areas in the state. According to a press release published on the HUD/FHA official site, “HUD will speed federal disaster assistance to the State of California and provide support to homeowners and low-income renters forced from their homes due to wildfires” in the counties affected by the major disaster declaration. Those counties include: Butte Lake Mendocino Napa Nevada Orange Sonoma Yuba Those in federally declared disaster areas are eligible for a variety of measures from the FHA and HUD including FHA loan foreclosure relief in the form of a 90-day moratorium for all FHA mortgage foreclosure actions in the affected areas. Home owners may also be eligible | more...

 
HUD To Provide $5 Billion For Hurricane Harvey Recovery In Texas

FHA and HUD Announce Extended Foreclosure Relief For Hurricane Victims

The FHA and HUD have announced extended foreclosure relief for victims of recent hurricanes. According to the FHA/HUD official site, those in federally declared disaster areas created by Hurricane Irma, Hurricane Harvey, and Hurricane Maria will have time added to the original 90-day foreclosure moratorium. According to the HUD press release, “FHA is extending this foreclosure relief in Presidentially declared counties and municipalities where the Federal Emergency Management Agency (FEMA) is operating its Individual Assistance Program.” “Under the expanded moratorium, FHA is instructing lenders and servicers to suspend all foreclosure actions against borrowers until the following dates: Hurricane Harvey – February 21, 2018 Hurricane Irma – March 9, 2018 Hurricane Maria – March 19, 2018” Who Qualifies For Extended Foreclosure Relief? According to HUD, those with FHA-insured mortgages qualify for | more...

 
HUD Takes Measures To Speed Up Hurricane Recovery Efforts

HUD Takes Measures To Speed Up Hurricane Recovery Efforts

HUD has announced it is taking measures to speed up hurricane recovery efforts through a series of red tape-cutting waivers that affect regulatory and administrative procedures. According to a press release on the official site, a set of 19 waivers have been created, intended to help communities “to accelerate their recovery from Hurricanes Harvey, Irma and Maria. While HUD granted a number of individual waivers following disasters in the past, today’s announcement represents one of the largest collections of regulatory and administrative waivers ever issued by the Department at one time” according to the HUD official site. A variety of programs are affected by these new waivers. They include: The Community Development Block Grant (CDBG) Program HOME Investment Partnerships (HOME) Program Housing Opportunities for Persons with AIDS (HOPWA) Program Emergency | more...