Articles Tagged With: FHA Appraisals

November 7, 2019

FHA Loan Rules For Appraisals: Appliances, Mechanical Systems In The Home

HUD 4000.1, the FHA Single-Family Loan Handbook, has a detailed section about FHA loan appraisal requirements. First-time home buyers may not realize that certain details of the home must meet FHA requirements such as the condition of appliances and the efficiency of the mechanical systems in the home such as central air conditioning or hot water heaters. HUD 4000.1 lists FHA requirements for appliances in the appraisal, stating that the FHA appraiser is required to review the home’s stove, fridge, washing machine, etc. if those appliances are being left in the home for the new owner. “Appliances that are to remain and that contribute to the market value opinion must be operational. ” This section is discussing appraisals for existing construction homes, but the intent is clear; the condition of | more...

October 23, 2019

Real Estate, Millennials, And Down Payments

By Joe Wallace

What do millennials and Gen Z’ers say about buying real estate and making down payments? A home ownership-centric website called Porch.com did a survey of roughly 1300 people and the results are quite interesting–and useful to anyone in the planning stages of buying a home. The attitudes of the age groups such as Generation Z and Millennials were of particular interest for this study. “According to our findings” the Porch.com survey page for the Generational Outlook Survey says, “over 75 percent of Gen Zers said it was ‘very important’ or ‘important’ to own a home in their lifetime”, but “only 41 percent” believe it is necessary to do that in the next decade or so. But regardless of when the home is to by purchased, more than 40% of those | more...

October 17, 2019

Refinance Loans: Is It Time To Commit?

By Joe Wallace

Is now the right time to commit to a refinancing loan? Opinions may vary, but consumer trends seem to indicate that many of today’s home owners believe the answer is yes. The monthly Ellie Mae Origination Insight Report provides lenders and consumers with mortgage loan data and insights; the September 2019 report includes data suggesting that nearly half (49%) of the loans originated in the time range covered in the report were refinance loans. Interest rates have been at historic lows, home values have also been on the rise, and many want to consider their options while rate trends are still in a borrower-friendly mode. If you are ready to refinance, the first step for many is determining what kind of refinance loan you need. If you just want a | more...

HUD Brings Fair Housing Act Charges Against New York Landlord

September 17, 2019

HUD Brings Charges Against Housing Design And Construction Companies

By Joe Wallace

The Department of Housing and Urban Development has announced charges against companies in New York, Pennsylvania and Georgia for alleged violations of the Fair Housing Act. We report about Fair Housing cases in this space to remind house hunters of their Fair Housing Act rights, but it’s not as common to report on a case that spans multiple companies and states the way this case does. HUD’s charge involves accusations of housing discrimination associated with the design and construction “of a 40-unit North 8 Condominium development in Brooklyn, New York, in accordance with the accessibility requirements of the Fair Housing Act”. Those named in the HUD Fair Housing Act charges include Toll Brothers, Inc.; Toll Land XIII Limited Partner; Lendlease (US) Construction LMB, Inc; Greenberg Farrow Architecture, Inc.; and 51 | more...

FHA Loans For Buying, Building, Or Assembling A Home

August 26, 2019

FHA Loan Appraisals: Different Rules For Different Homes

By Bruce Reichstein

FHA loan appraisals have different standards depending on the type of property you wish to buy. That doesn’t mean that some homes get favorable treatment in the appraisal process than others. What it does mean is that some properties have unique issues. For example, an appraisal for an FHA condo won’t be the same as for a manufactured home. One reason? Manufactured homes do not start off with permanent foundations, and having one is a requirement. A condo unit does not face such problems, so there is a specific appraisal requirement for manufactured housing that such homes be affixed to a permanent foundation that meets FHA and federal standards. A condo unit is already on a foundation, so the requirements there have more to do with the state of the | more...

August 14, 2019

FHA Home Loans: A Q&A

By Joe Wallace

Q: What Kind Of Home Can I Buy With An FHA Mortgage? A: You can purchase a single-family home with as many as four living units. FHA home loans can be used to buy condos, mobile homes, town houses, mixed-use properties that are primarily residential (the borrower must live in the property), and manufactured homes. Q: Is Private Mortgage Insurance Required For FHA Mortgages? A: Private mortgage insurance is not required, but FHA borrowers will be required to pay a Mortgage Insurance Premium and an Up-Front Mortgage Insurance Premium (UFMIP) as a part of the mortgage. The UFMIP is paid up front or financed in its’ entirety into the loan amount. The mortgage insurance premium each month is part of the borrower’s monthly payment. Q: Can I Buy A Home | more...

July 1, 2019

FHA Home Loan Questions: Appraisals

By Joe Wallace

Do you have questions about the FHA appraisal process? Many do and it’s no surprise why-the appraisal is the process that determines whether the home you want to buy meets minimum FHA standards or not. Here are some common appraisal questions and answers you should know before you get to that part of the home loan process. Whether you are a first-time home buyer applying for your first FHA mortgage or an experienced house hunter returning to the FHA loan program to buy a new primary residence, these questions are important. Who Is Responsible For Ordering The FHA Appraisal? The lender. The borrower does not initiate the appraisal process or select the appraiser. Who Pays For The Appraisal? The borrower is responsible for paying the cost of the FHA appraisal | more...

Will FHA Mortgage Loan Interest Rates Drop Even More?

June 24, 2019

FHA Appraisal Standards: What You Need To Know

By Bruce Reichstein

A recent press release by HUD applauds new lead paint hazard requirements issued by the Environmental Protection Agency. Those standards include a more strict requirement for lead levels in certain homes and “child-occupied facilities”. According to a press release on the HUD official site, “Since the 1970s, the United States has made tremendous progress in lowering children’s blood lead levels. In 2001, EPA set standards for lead in dust for floors and windowsills in housing, however since that time, the best available science has evolved to indicate human health effects at lower blood lead levels than previously analyzed.” The new rules don’t necessarily affect FHA appraisal guidelines with specific changes-FHA loan rules address lead paint issues, generally requiring abatement of lead-based paint in homes older than 1978 where there is | more...

May 30, 2019

FHA Appraisal Rules You Need To Know

By Bruce Reichstein

Are you a first-time home buyer? Are you looking into your FHA home loan options and not sure what the appraisal process is all about? The FHA appraisal is a tool for the lender to determine the home’s fair market value and a way to make sure a property meets MINIMUM standards. No matter what you might hear (and some mistakenly call the appraisal an “inspection”) the appraisal will not tell you the true condition of the home. Even the FHA and HUD themselves warn borrowers to pay for the optional home inspection (which is technically not a requirement, but then again, neither is test-driving your car before you buy it). And what should borrowers know about the FHA appraisal process? The appraisal’s most important feature for some borrowers is | more...

Home Loan Credit Advice From Credit Bureaus

May 17, 2019

FHA Loan Appraisal Questions: Why Is Peeling Paint A Problem?

By Joe Wallace

One common question about FHA appraisals involves the issue of peeling paint. This can be a problem for some homes, especially those built on or before the year 1978. Borrowers want to know why the appraiser reviewed the home (the appraisal is not a property inspection) and required a correction of a peeling paint issue as a condition of loan approval. The borrower’s question in these cases is normally a variation on, “It’s just a cosmetic issue, why is the appraiser making a big deal out of peeling paint?” Unfortunately, for homes (including condo units) built on or before 1978, peeling paint is not just a cosmetic problem due to the use of lead paint in those construction projects before it was recognized as a safety hazard. FHA home loan | more...