December 13, 2018

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Articles Tagged With: Single Family Handbook 4000.1

FHA home loans for families

FHA Home Loans For Families

FHA home loans for families offer advantages that go beyond the comparatively lower interest rates than for conventional loans (borrower financial qualifications will help determine the actual rate the applicant is able to get from the participating FHA lender). Those advantages are important to remember when comparing FHA loans to conventional equivalents or USDA and VA mortgage loans. What kinds of advantages? They include the ability to be considered for a second FHA mortgage later down the line if job or family requirements have the borrowers thinking they might be outgrowing their home or need to relocate to be closer to a new job. FHA Mortgage Loans Allow Financing And Seller Assistance For Certain Closing Costs Borrowers who need very low out-of-pocket expenses up front will be glad to learn | more...

 
Getting A New FHA Loan After Selling Your Home

FHA Loans And Electronic Signatures: Rules You Need To Know

What do you need to know about FHA loans and electronic signatures? In the 21st century, it’s easy to assume that certain aspects of digital and mobile culture are applicable to most (if not all) transactions. But in the case of FHA home loans, it’s not quite that easy. Electronic Signatures Are Not Universal The use of electronic signatures for home loan paperwork is not available from all participating FHA lenders, and FHA loan rules do not permit the use of electronic signatures in certain loan transactions. In fact, on certain types of loan paperwork, electronic signatures are never permitted, at least at the time of this writing. FHA Loan Rules Define Electronic Signatures HUD 4000.1 instructs the lender, “An electronic signature conducted in accordance with the Electronic Signature Performance | more...

 
Four Reasons You Need A Home Inspection After The FHA Appraisal

Is There A Size Requirement For FHA Loan Homes?

Is there a size requirement for FHA loan homes? Some borrowers may have concerns about size issues, and while there are some rules on the books that affect FHA loan transactions in terms of size, not all guidelines apply to all housing types. In fact, FHA loan rules often leave certain details of the appraisal process up to the local authority; the FHA does not try to regulate every single state of the appraisal process or try to anticipate all potential issues. State and local laws play an important part in the appraisal process. FHA Loan Rules and State/Local Building Code FHA loan rules covering all aspects of the appraisal process are found in HUD 4000.1, the FHA single family loan program handbook. But these rules aren’t the only ones | more...

 
FHA Loan Approval and Late or Missed Housing Payments

FHA Loan Approval and Late or Missed Housing Payments

What is the connection between FHA loan approval and late or missed housing payments? The simplest formula given to most borrowers is that you should come to the home loan application process with nothing but on-time payments on all financial obligations for the last 12 months leading up to the day you apply. Not all borrowers take that advice, and many want to know what the consequences of having a late or missed payment might be; in some cases the issue may be more problematic than others. This is true of having late or missed housing payments on your record. The lender will review your record of housing payments as one of the indications that a borrower is a satisfactory credit risk. But what do the FHA loan rules tell | more...

 
Will I Need To Fill Out IRS Form 4506-T To Buy A Home With An FHA Loan?

Appraising the Foundation and Basement: FHA Loan Standards

What are the FHA loan standards for appraising the foundation and basement of a home to be purchased with an FHA mortgage? The FHA appraisal process is designed to insure that specific standards in this area are met. When problems are detected in an appraisal, they are noted for correction or other appropriate action. The appraisal process covers everything from the electrical system to the roof-the home and its various systems must be within a certain range of good repair and sustainability. For example, there can’t be exposed wiring in the home that would pose a hazard to the future occupants. The roof must not leak or otherwise allow moisture to enter the house. When it comes to the standards for foundations and basements, the FHA has a clear set | more...

 
What Do FHA Loan Closing Costs Include?

Which Credit Score Will My Lender Use For My Home Loan?

Which credit score will my lender use for my home loan? There is understandably some confusion over this issue; there are three major credit reporting agencies, and multiple credit scores possible. How does your lender know which score(s) to use? When it comes to FHA mortgage loans, the FHA loan handbook has instructions for the lender on how to proceed when evaluating a borrower’s credit scores. One page 132 we learn: “The Minimum Decision Credit Score (MDCS) refers to the credit score reported on the Borrower’s credit report when all reported scores are the same. Where three differing scores are reported, the middle score is the MDCS. Where two differing scores are reported, the MDCS is the lowest score. Where only one score is reported, that score is the MDCS.” | more...

 

FHA Loans And Multi-Unit Properties

FHA home loans are intended for owner-occupiers. The FHA loan occupancy requirement states that the borrower must begin using the home purchased with an FHA loan within a specified time after closing (usually within 60 days) and for a minimum of one year. But FHA loan rules also permit owner-occupiers to buy multi-unit properties. For multi-unit homes, the borrower must occupy at least one unit but is free to rent out the unused spaces in the home to others. FHA loan rules limit the number of units to four in these transactions. If a borrower intends to apply for an FHA loan for a home that has multiple units, it may be tempting to try to convince the lender to factor in any potential income from such rental as part | more...

 

FHA Adjustable Rate Mortgage Rules: Rates, Term, and Adjustments

Some potential FHA borrowers might be surprised to learn that an FHA adjustable rate mortgage (FHA ARM) is an option to consider, but for those with specific financial needs and goals, an FHA ARM loan might be a very good idea. FHA adjustable rate mortgages have specific controls over how much and when an interest rate change may occur, but there are other rules that also affect this type of FHA mortgage. All the rules for FHA ARM loans are found in HUD 4000.1, the FHA Single Family Loan Handbook. It says that the initial rate and margin are established by the lender, and that the margin must be constant over the entire term of the mortgage. Furthermore, “The interest rate must remain constant for an initial period of 1, | more...

 
Can I get an FHA home loan if I owe back taxes?

FHA Loans And Income Verification Requirements

FHA loan income verification requirements include submitting tax data as part of the application process. Your lender may require tax returns and other paperwork; depending on the transaction these requirements may include additional forms of documentation. A reader got in touch recently in our comments section to ask about these income verification issues. “Our lender is asking for two years of tax returns. We have not filed for 2016 yet. We apply for and get an extension every year and have until October since we are freelancers…Can we just submit 2014 & 2015 for now to apply for the loan? We have pay stubs for 2016 as proof for income and it is greater than what we have made the priors years. Although, it seems to be a problem that | more...

 

FHA Loans And The 100 Mile Rule: A Reader Question

A reader asked us a question about FHA loans and “the 100 mile rule”. “I am currently looking to purchase a home with FHA financing 5 miles from my current home in California. The current home I own is secured with a conventional loan. I would like to rent this home out and buy a larger home and finance it FHA because I dont have very much saved up for a larger down payment. Does the 100 mile rule apply to me?” The reader is asking in response to a post we made earlier this year about military FHA borrowers and occupancy rules for FHA loans. This quote from that original post, referencing FHA loan rules in HUD 4000.1, seems to be the issue of most concern for the reader: | more...