Articles Tagged With: FHA and HUD

May 3, 2021

HUD Announces Housing Discrimination Charges Against Redwood, California Mortgage Modification Company

The Department of Housing and Urban Development has announced charges against a Redwood, California-based company called The House Lawyer (THL). HUD announced the charge against owners and employers of The House Lawyer in a press release on the HUD official site on April 30, 2021. HUD alleges The House Lawyer violated Fair Housing Act laws, “by targeting Hispanic homeowners with illegal and unfair mortgage modification services”. Among the issues in this Fair Housing Act case, HUD charges the company with collecting fees from Hispanic borrowers “for loan modification services prior to the completion of those services, in violation of California law, while encouraging them to withhold their mortgage payments, putting them at risk of foreclosure”. Fair Housing Act law forbids discrimination against people because of their national origin. That federal | more...

Home Loans For Building On Your Own Land

March 18, 2021

One-Time Close Construction Loan Advice For New Borrowers

By Joe Wallace

If you have never explored your options to build a house on your own lot with a One-Time Close construction loan, you might be surprised to learn that these loans are open to first-time borrowers and experienced home owners alike. Construction loans have great advantages for those who want to build a primary residence. But there are often important questions borrowers need to be answered before they can make an informed decision on building on their own lot. VA One-Time close mortgages for military members and veterans offer a no downpayment option, and FHA One-Time Close mortgages have a low 3.5% downpayment requirement. And the down payment issue is where we get started with our home loan advice. Down Payment Assistance For Construction Loans Most FHA and VA participating lenders | more...

March 1, 2021

FHA Mortgage Loan Interest Rate Watch

By Joe Wallace

FHA 30-year fixed rate mortgages have, at press time a 52-week average of 2.25% (best execution or assuming ideal circumstances) at the lowest end and 4.0% at the highest. However, the numbers currently available–the rates for FHA 30-year fixed-rate mortgages at press time–are listed a 2.88%, a definite rise from the lowest point on the 52-week average. Reading this, some future home loan applicants are likely wondering if they should hurry up and apply for a mortgage even if they are not quite ready to do so. If you read finance blogs and mortgage industry writers, you discover that among some industry professionals, there’s a view that the economic stimulus has at least a partial role in creating conditions ripe for mortgage loan interest rates to start going up again. | more...

February 25, 2021

HUD Announces Further Modifications Of Home Loan Policy During COVID-19

By Joe Wallace

The pandemic has forced many business owners, consumers, house hunters, and home sellers to rethink their approach to the task at hand. The FHA and HUD have modified many FHA loan rules to accommodate the need to socially distance and implement other coronavirus mitigation procedures and prevent the spread of the virus. And in 2021, those modifications must continue. On Tuesday, February 23, 2021, the HUD official site announced extensions of already-modified Single Family mortgage loan policies–modifications that would allow the FHA to help “maintain new mortgage originations for homebuyers and allow 203(k) rehabilitation projects to continue during the COVID-19 pandemic”. Extending these policies insures continued flexibility in certain guidelines for single family home loans. Why is it needed? To ensure home loans are available via the FHA program for | more...

February 23, 2021

Buying And Repairing A Home With An FHA 203(k) Rehab Loan

By Joe Wallace

Are you considering home repairs and renovation? In 2021 some are as part of disaster recovery. Other homeowners need a home repair or upgrade, or they want to purchase a fixer-upper house. Whether you want to replace your current home, or remodel it, the FHA 203(k) rehab loan can help These rehabilitation loans (which are also available as a refinance loan) are for any home owner who wants to buy or refinance a property and repair or renovate it at the same time. There is a standard version of the 203(k) purchase and refinance loan, and a limited version of both for smaller renovation projects. Some Won’t Use An FHA 203(k) But some borrowers won’t use an FHA 203(k) rehab loan. They either cannot, due to the nature of the | more...

February 22, 2021

Texas Home Owners Get Federal Disaster Relief

By Bruce Reichstein

Millions of homeowners in Texas were affected by severe winter weather and unprecedented freezing conditions there; On Monday, February 22, 2021 Texas residents woke up having had their state declared a federal disaster area. Those with FHA mortgages who own homes in the state of Texas are getting help from the federal government in the wake of deadly winter storms in the area affecting some half a million homeowners in the Lone Star State. President Biden has declared the state of Texas as a federal disaster area, and that means federal assistance for state and local recovery efforts. It also means Texas homeowners have access to disaster relief to help repair or replace homes damaged by the winter weather there. Do you have an FHA home loan? Contact your loan | more...

February 18, 2021

HUD Further Extends COVID-19 Foreclosure Relief

By Joe Wallace

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...

February 15, 2021

Happy Presidents Day

By Joe Wallace

Happy Presidents’ Day 2021! Today banks and markets are closed, and we pause from our usual schedule of writing posts and giving information about FHA home loans to observe the holiday. We return with our regular content schedule tomorrow. Thank you for reading!

January 29, 2021

Foreclosure Relief Advice From The FDIC

By Joe Wallace

The Federal Deposit Insurance Corporation or FDIC is the federal agency that is responsible for insuring public confidence in the American financial system. The agency issues advice and warnings to consumers (among many other things) to help them avoid scams and fraud associated with lending and banking. HUD recently announced extended foreclosure relief for borrowers affected by the global coronavirus pandemic. It’s a sad fact, but true, anytime home owners need mortgage relief the scammers begin coming out of the woodwork. And that has definitely been true in the past year with COVID-19-related scams, fraud, identity theft, etc. It is true that the lowest of the low prey upon families in need during times of national crisis, but you can avoid getting scammed. Follow the FDIC’s advice on how to | more...

January 25, 2021

HUD Announces Extension Of FHA Loan Foreclosure / Eviction Moratorium

By Bruce Reichstein

A press release at the official site for the Department of Housing and Urban Development announces that the Biden Administration has “requested the U.S. Department of Housing and Urban Development and other Federal Agencies” extend the current COVID-related foreclosure and eviction moratorium for single family mortgages insured by the Federal Housing Administration. This request also affects loans guaranteed by the Office of Native American Programs’ Section 184 and 184A loan guarantee programs. At press time, and according to the press release, the moratorium is extended through March 31, 2021. The press release on the HUD official site states that this extension is, “one of the first Administration actions” that addresses the need for “meaningful support” to homeowners struggling with financial difficulty during the pandemic. “As President Biden promised, his new | more...