January 17, 2019

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Articles Tagged With: FHA Mortgage News

FHA Loans Are Available During The Government Shutdown

FHA Loans Are Available During The Government Shutdown

Are FHA home loans available during the government shutdown? The answer is yes in many cases, with the exception of Reverse Mortgages and Title I loans. FHA Condo loans may be affected by the government shutdown depending on whether or not the condo project was on the FHA approved list prior to the shutdown or not. The FHA and HUD official sites have notices stating that the websites will not be updated until the government reopens, and many functions of the FHA and HUD will be limited or unavailable. According to HUD.gov, there are a list of guidelines you should know during this time that will affect how FHA loans are handled. The official site states that HECM loans and Title I loans cannot be endorsed during the shutdown: “The | more...

 
Questions To Ask About Buying A Home With An FHA Mortgage

Questions To Ask About Buying A Home With An FHA Mortgage

Thinking of buying a home with a mortgage loan? FHA mortgages have options you should think seriously about-and not just for the purposes of buying the home and moving in. What Options Do I Have To Make A Lower Down Payment On My FHA Loan? This question is best answered depending on why it’s asked; are you in need of lower out-of-pocket expenses for your mortgage or do you need to know what FICO scores will let you qualify for a lower down payment? Down payment assistance programs may be available from third-party agencies in your housing market. As long as these down payment programs meet FHA standards and state law, an FHA borrower may apply for them. The FHA itself does not offer down payment assistance. Borrowers may also | more...

 
FHA Loan Limits For 2019

FHA Home Loans For Self-Employed People

What does it take for a self-employed borrower to be approved for an FHA mortgage loan? The same basic rules apply, FHA mortgage loans require a minimum 500 or higher FICO score to be eligible (lender standards will be higher) and FICO scores of 580 or higher for maximum financing and the lowest down payment. But self-employed borrowers do have some additional issues to think about when coming to the FHA home loan process. How long you have been self-employed in an important factor, how the business has fared since you started it, and what the future of your income might be. FHA Loan Rules For Self-Employment Income Verification The rules that instruct the participating FHA lender are found in HUD 4000.1, and those rules include a requirement for the | more...

 
Rent Spending Was Higher In 2018; Is Now The Time To Buy A Home With An FHA Mortgage?

Do You Need An FHA Home Loan?

Do you need an FHA home loan? There are many mortgage loan options on the market, do you know what makes an FHA mortgage a potential advantage as a home buyer? FHA Home Loans Have More Forgiving Credit Requirements FHA mortgages have minimum FICO scores and credit history requirements that can be more forgiving than their conventional loan counterparts. Lender standards will also apply, but the FHA-proscribed minimums allow the lender greater flexibility to consider loan approval. FHA Loans Have Lower Down Payment Requirements 3.5% of the adjusted value of the property for new purchase loans on existing construction homes is quite appealing for many borrowers who can’t afford 20% down for some conventional loans. FHA One Time Close construction loans also require a 3.5% down payment for properties built | more...

 
FHA One-Time Close Construction Mortgage Advice For First Time Home Buyers

VA One-Time Close Construction Loan Options for Military Veterans Expanded

Some house hunters get fed up with looking for just the right home, while others start out their home loan journey knowing in advance they want a house built for them. What options to these borrowers have? There is an FHA home loan known as the FHA One-Time Close / Single-Close construction loan that lets borrowers apply for a single loan that covers both construction costs and the mortgage itself. The FHA version of this type of construction loan requires the borrower and lender to work together to establish a plan for the project including estimated completion times, interest rates, budgets, and more. Some borrowers aren’t interested in FHA home loans since they have other options; do qualifying military veterans have a VA loan version of the FHA One Time | more...

 
Build Your Dream Home: FHA One-Time Close Construction Mortgages

FHA Foreclosure Relief For 2017 Disaster Victims

In late February 2018, the FHA announced additional foreclosure relief measures for victims in federally declared disaster areas in 2017. According to the FHA official site, the new measures are intended to be an expanded version of “mortgage relief to FHA-insured homeowners who live or work in areas impacted by Hurricanes Harvey, Irma and Maria as well as California wildfires and subsequent flooding and mudslides.” The FHA has ordered participating FHA lenders to offer “additional options to eligible disaster victims in Texas, Louisiana, Georgia, Florida, South Carolina, California, Puerto Rico and the U.S. Virgin Islands, allowing them to remain in their homes while reducing losses that would otherwise negatively impact FHA’s Mutual Mortgage Insurance Fund” according to the press release. At the heart of these new measures is something called | more...

 
Can I Assume An FHA Mortgage?

Can I Assume An FHA Mortgage?

Can I assume an FHA mortgage? That is a question on the minds of those looking to take over an FHA home loan from the original borrower. Loan assumptions are a bit different than a new purchase home loan application, though the borrower must be able to afford the loan in both cases. The short answer is that yes, in most cases with lender participation you may be able to assume an existing FHA home loan from the original borrower. A credit check may or may not be required (see below) depending on circumstances, and lender standards. It’s the lender’s job to determine whether or not the loan assumption will happen-FHA loan rules in HUD 4000.1 permit the assumption of an FHA mortgage, but the process requires the lender’s participation. | more...

 
HUD Announces Settlement In New Jersey Housing Discrimination Case

FHA Revises Policy On PACE Assesments

The FHA has revised its’ policy on home loans for properties encumbered by Property Assessed Clean Energy (PACE) obligations. According to the FHA official site, in 2016 the agency “established requirements regarding the eligibility for FHA-insured mortgages of properties encumbered with PACE obligations that permitted, under some circumstances, a continuing obligation for repayment of the PACE obligation even after foreclosure and acquisition by FHA.” But that policy has since come under review due to concerns “for increased losses to the Mutual Mortgage Insurance Fund due to the priority lien status given to such assessments in the case of default.” According to the official site, the agency “is also concerned with the lack of consumer protections associated with the origination of the PACE assessment, which are far less comprehensive than that | more...

 
FHA Home Loan House Hunting Checklist

What Do I Need To Qualify For An FHA 203(h) Rehab Loan For Disaster Victims?

What do I need to qualify for an FHA 203(h) rehab loan for disaster victims? Those in the hardest-hit areas may require complete replacement of a home damaged or destroyed by Hurricane Harvey, Hurricane Irma, Hurricane Maria, or California fires. But what are the basic requirements of the FHA 203(h) rehab loan? FHA 203(h) Rehab Loans Are For Those In Federally Declared Disaster Areas The basic requirement for an FHA 203(h) rehab loan is that the applicant’s property is located in a federally declared disaster area. According to HUD 40001., “The previous residence (owned or rented) must have been located in a (federally declared disaster area) and destroyed or damaged to such an extent that reconstruction or replacement is necessary. A list of the specified affected counties and cities and | more...

 
HUD Announces Settlement in Housing Discrimination Case

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

The Department of Housing and Urban Development (HUD) has announced a multi-billion dollar pledge to help Texas recover from Hurricane Harvey. According to a press release on the HUD official site, the funds will “support the repair of damaged homes, businesses and critical infrastructure in the State.” According to the press release, the funds are possible via the Continuing Appropriations Act, 2018 and the Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2017. This “appropriated $7.4 billion in CDBG-DR funding for major disasters declared in calendar year 2017. To distribute these funds, the Act requires HUD to direct the funds to the areas most impacted by qualifying disasters.” The press release adds that HUD will announce additional grants “to other jurisdictions as more data become available on the unmet needs | more...