Articles Tagged With: FHA Home Loan

December 28, 2022

Buying A Home In 2023

Are you making plans to buy a home with an FHA mortgage in the new year? Your timing might be better than you think; housing markets are cooling which may lead (over time) to lower prices, decreased demand for houses on the market, and more negotiating power for the buyer. But there are a few important questions. How long does the market improve before we see conditions begin to level off? There is no way to predict what might happen going forward, and it’s important to compare and ask lenders about what rates might do in the months leading up to your FHA loan application in 2023. It is unrealistic to expect your lender to be a fortune teller, nobody knows when home loan interest rates might recover closer to | more...

December 21, 2022

New Mortgage Rules And Your FHA Home Loan

By Joe Wallace

The Consumer Financial Protection Bureau (CFPB) has weighed in on certain mortgage lending practices with an eye on reform; in 2022 it moved to require lenders to enhance loan approval policies related to a type of mortgage known as bank statement lending. These are loans include rules that allow the lender to review the borrower’s bank statements as a source of income for the borrower. Bank statement mortgage loans are, according to the publication National Mortgage News, offered to about 100 thousand borrowers per year, worth up to $25 billion in loans. In October of 2022, CFPB revised its regulations for these mortgages. Lenders are now required by the CFPB to confirm the data on bank statements used to verify income. Specifically, the lender is required to determine that the | more...

December 19, 2022

FHA Adds HECM Relief For Those Financially Affected By COVID

By Joe Wallace

Some homeowners might be surprised to learn about new financial relief for the financial effects of COVID-19, but the FHA and HUD made an announcement in the last month of 2022 — there are new options for those who struggle financially due to COVID. Specifically, there are new options for relief for qualifying senior citizens trying to keep their homes while struggling to make property tax payments on homes securing Home Equity Conversion Mortgage (HECM) loan payments. The issue for these homeowners? One requirement of the FHA HECM program is that the borrower stay current on all so-called property charges such as property taxes and homeowner’s association dues where applicable. In ordinary circumstances, if an FHA HECM borrower does not stay current on these charges, they face loss of the | more...

December 14, 2022

Why Was My FHA Loan Application Denied In 2022?

By Joe Wallace

Are you in the process of getting ready for a home loan? There are plenty of home loan industry trends to pay attention to when you are in the planning stages of buying a home with an FHA mortgage. Among them are mortgage interest rates, home sale prices, and then there are the costs associated with the loan such as appraisals and title searches. Many industry players observe these trends. One of them is the Consumer Financial Protection Bureau (CFPB), which examines a variety of issues related to buying and owning a home on behalf of consumers. CFPB Reviews Mortgage Data In 2022 CFPB has published observations about the first and second quarters of 2022. Among those observations? The causes of home loan application denial during those periods. What were | more...

December 12, 2022

Housing Market And Home Equity: What You Need To Know In 2023

By Joe Wallace

The mortgage industry has been coming down from the highs of summer, 2022. Fed actions to raise interest rates had an effect on the housing market (indirectly–the Fed sets the rates on federal loan funds, not mortgage loan interest rates) and as a result, conditions have started to cool to the point where mortgage rates actually dropped in December. Slowing Demand As the housing market cools, a course correction for home equity is an important factor to think about. According to certain mortgage industry sources, there are plenty of indicators that home equity is indeed starting to come back down. Lower demand and lower prices can translate into lower equity. Consider what the publication Mortgage Industry News printed about a report by CoreLogic in 2022: By the end of the | more...

November 28, 2022

FHA Loan Approval Rules For First-Time Home Buyers

By Joe Wallace

FHA home loans are often misunderstood. Some think they are need-based loans like some offered via the USDA program, while others believe FHA mortgages can only be approved for first-time home buyers. Typically, we write that FHA mortgages do not actually offer extra perks for first-time buyers, but there is a new exception to that notion you should know about. What kind of exception? In 2022, HUD made a policy change and issued a mortgagee letter announcing that in 2022 the FHA would allow participating lenders to consider positive rental history as a factor in home loan approval. Typically, such rental verification is not a part of most credit reports provided for FHA-insured products that require credit approval and “when provided,” rental verification, “generally exists as separate documentation” the lender | more...

November 21, 2022

Housing Market Improvements And Your FHA Home Loan in 2023

By Joe Wallace

Are you looking at 2023 and considering your home loan options to buy a house with an FHA mortgage? There is news from the housing sector that could mean improved conditions for a home loan in the new year. While it’s true that changes in the housing market don’t happen overnight, some mortgage blogs and news outlets are reporting that the typical time houses spend on the market is increasing. Thats a good sign considering how competitive the housing market was last summer. Is this the only indication that conditions may be improving for house hunters? Demand for houses seems to be falling and home loan interest rates are showing signs of gradual improvement. This could make 2023 a much better time to shop for a house than the summer | more...

November 7, 2022

Credit Score Rule Changes For Mortgage Loans

By Joe Wallace

On October 24, 2022, the Federal Housing Finance Agency (FHFA) announced its approval for participating lenders to use both the FICO 10T and the VantageScore 4.0 credit score models by Fannie Mae and Freddie Mac. These options would replace the previous use of “traditional” FICO score model Fannie and Freddie lenders use to approve the loans. Why are we discussing Fannie and Freddie in an article about FHA home loans? There is a possibility that this move could wind up affecting other lending programs, especially if more borrowers choose Fannie Mae and Freddie Mac loans as the result of the changes. Other government loan programs may follow suit in the future, and in the case of FHA mortgages, some changes are already underway. These changes do not happen overnight. There | more...

October 31, 2022

Important Features To Consider When Shopping For A New Home

By Bruce Reichstein

Are you new to house hunting? There are things to look for when considering homes to buy with an FHA mortgage. These are features that often may enhance the home and make it more efficient. Once you are used to shopping around for a home, you can establish a checklist to remind you as you review each property. Ceiling Fans Not all homes come with ceiling fans. Are you buying a home in a warmer or more humid climate? A lack of ceiling fans can be a drawback; homes that do not have them installed might have other issues such as mold or mildew, but this will depend greatly on how the individual house was maintained. Exterior Lighting Exterior lights can provide additional safety, and not just to prevent burglaries | more...

October 28, 2022

Buying A Home When Interest Rates Are High

By Joe Wallace

Are you considering your FHA home loan options? You aren’t alone if you’re considering the option of waiting to buy until mortgage rates drop from current highs. How high have the rates gone? In the closing days of October 2022, the New York Times reported interest rates hit the 7% range for the first time since 2002. Do you worry that such high rates are here to stay? You couldn’t be blamed for thinking it’s a safer bet to hold off on buying a home right now. The Fannie Mae Housing Forecast for 2022 includes the possibility that mortgage loan interest rates might settle into the four percent range sometime at or near the second quarter of 2023. If that becomes a reality, could we see an increase in interested | more...