Articles Tagged With: FHA Mortgage News

May 27, 2015

Shopping Around For An FHA Loan

One thing that’s important for house hunters to do when looking for a home? Comparison shop. But that’s not just a good idea when it comes to measuring the price tag on a home; it’s also a very good idea to shop around for a lender in the same way you do looking for just the right home to buy with an FHA loan. A recent blog post on the HUD official site via The HUDdle discusses recent housing trends and developments in the home loan industry. One thing writer Ted Tozer notes, is that there has been a set of important developments in the industry as some major financial institutions dial back their participating in the mortgage lending market. Tozer writes, “As major banks have reduced their participation in | more...

April 22, 2015

FHA Loan Employment Rules: A Reader Question About Changing Jobs

By Joe Wallace

A reader asks, “Would I still be eligible for an FHA Loan if I accept a position that with a higher salary with a different employer? Ive been on my current job for almost 7.5 years. My new and current positions are in different fields. However, the new position is in the same field as that I was in prior to my current job. I was told that longevity on the job was part of the criteria aside from creditworthiness, debt/income, etc. I dont want to miss this opportunity to purchase a home and I dont want to miss this job opportunity.” Let’s examine what FHA loan rules have to say on this subject–part of the answer to this reader question is found in Chapter Four, Section D of HUD | more...

January 27, 2015

FHA MIP Cuts: Who Is Affected? A Reader Question

By Joe Wallace

A reader asks, “I am a homeowner with a FHA loan. I bought the house last year, I wanted to know if this will also benefit me or is just for you new perspective home owners? Thanks…” This reader question is in reference to the FHA mortgage insurance premium cut that took effect on Monday January 26, 2015. According to an FHA press release, “the Federal Housing Administration (FHA) will reduce the annual premiums new borrowers will pay by half of a percent. This action is projected to save more than two million FHA homeowners an average of $900 annually and spur 250,000 new homebuyers to purchase their first home over the next three years.” We wrote about this recently when the cuts took effect. But who is affected by | more...

October 23, 2014

This Week’s FHA Mortgage Rate Trends

By Joe Wallace

This time last week, we reported mortgage rates headed for lower territory thanks to a variety of factors including market volatility. This week, the difference was definitely noticeable, with rates holding steady or edging slightly higher, but still maintaining at-or-below 4% rates for 30-year fixed rate conventional loans (best execution). FHA rates held steady at 3.5% best execution. While FHA mortgage rates have managed to stay at 3.5% this week, how long that could number may persist? Next week is poised to be an important one for rates in the short term. Why? There are a number of reasons why conditions might lead interest rates upward, but one of the most anticipated things scheduled for next week is the Fed announcement–a regular occurrence that can and often does push rates depending on | more...

March 31, 2014

FHA Updates Official Site On Electronic Signatures Policy

By Joe Wallace

Recently, the FHA updated its electronic signature policy to accept “e-signatures” on a wider range of documents related to FHA home loans. According to the official site at www.FHA.gov, “FHA will accept electronic signatures on the following ‘Authorized Documents’ (see below), provided they are not otherwise prohibited by law, and comply with the standards set forth in Mortgagee Letter 2014-03 and with the Electronic Signatures in Global and National Commerce (ESIGN) Act.” The mortgagee letter issued at the end of January 2014 stated that FHA recognizes electronic signatures within certain limits as defined by the ESIGN act. “The ESIGN Act defines electronic signatures as “any electronic sound, symbol, or process attached to or logically associated with a contract or record and executed or adopted by a person with the intent | more...

March 7, 2014

FHA Streamline Refinancing Loans Net Tangible Benefit Table

By Joe Wallace

Recently we wrote about the requirements for FHA streamline refinance loans to have a “net tangible benefit” to the borrower. The type of benefits mentioned in the FHA loan rulebook for streamline loans (in general) include a lower interest rate and/or monthly payment for the borrower. The purpose of an FHA streamline refinance loan is to help a home owner with an existing FHA mortgage get into a more affordable mortgage loan payment without an FHA required credit check or appraisal. (The lender may require one anyway.) Since there are many different types of FHA loans available, the net tangible benefit for the borrower may be different depending on the kind of loan being refinanced. The FHA has a table showing all the requirements for the different types of loans | more...

March 4, 2013

Sequester Deadline Passes: What Effect On FHA Loans?

By Joe Wallace

March 1, 2013 was the deadline for passing legislation that would ward off large, across-the-board government spending cuts known as the sequester; the country is now waiting for the effects of sequestration and many FHA borrowers or soon-to-be borrowers are rightly concerned about what might happen to their loan applications. But at the time of this writing, the FHA and HUD have issued no statements on the FHA official site warning of delays, cutbacks or other issues that might occur because of sequestration. In fact, the official site has been quite silent on the matter–leading many to believe that in spite of budget cuts in other areas, FHA mortgage loan processes may continue unaffected. One report from the National Association of Realtors official magazine, REALTORMag, agrees. An article titled, “FHA | more...