Articles Tagged With: HUD

June 17, 2022

Who Sets FHA Loan Interest Rates?

Who sets FHA loan interest rates? The answer to that question involves several factors-many potential FHA borrowers asking this question really want to know more than who the regulatory body is for FHA loan interest rates-they also want to know how rates are affected by other factors such as FICO scores and credit history. So who DOES set FHA mortgage loan interest rates? The Fed sets monetary policy for the United States including the current interest rate. But when the Fed sets this rate, it is NOT directly changing mortgage rates. Investor reaction to the Fed’s rate adjustments DOES affect home loan interest rates. Fed action doesn’t directly change interest rates and consumers should know that the Department of Housing and Urban Development doesn’t try to control these rates, either. | more...

June 1, 2022

June 2022 Is National Homeownership Month

By Joe Wallace

On the last day of May 2022, President Biden issued a proclamation that June 2022 is National Homeownership Month. It’s the 20th anniversary of the observance and the Department of Housing And Urban Development issued a statement about it, reminding us that homeownership has benefits and that equal opportunity and access for all should be the norm in the 21st century. During National Homeownership Month 2022, the FHA and HUD plan a series of events designed to raise awareness of fair housing issues, increase the amount of affordable housing, and make the homeownership process sustainable. “Each June, we mark National Homeownership Month, a time for HUD and FHA to renew our commitment to supporting individuals and families in achieving and sustaining homeownership,” says HUD Secretary Marcia L. Fudge, who was | more...

February 23, 2022

FHA Manufactured Home Loans: Questions And Answers

By Joe Wallace

FHA home loan options include loans for manufactured housing, modular homes, and what some still refer to as “mobile homes”. FHA home loan rules for manufactured housing include age and foundation requirements as well as minimum sizes. If you aren’t sure how to proceed when trying to apply for a manufactured home loan, here are some common questions asked about these types of FHA mortgages. Are FHA Manufactured Home Loans The Same As FHA 203(b) Mortgages? Not exactly. The FHA loan program allows the purchase of a modular home or a manufactured home that is not on a permanent foundation at the time of creation. The manufactured home must be placed on a permanent foundation as a condition of loan approval and the timing of this must be agreeable to | more...

December 14, 2021

HUD Announces Disaster Relief For Kentucky Home Owners In Federal Disaster Areas

By Joe Wallace

The FHA and HUD have announced disaster relief for FHA borrowers who live in the federally declared disaster areas in the State of Kentucky. The declaration was made effective as of December 10, 2021, in the wake of flooding, tornadoes, and other natural disaster-related issues. The President announced major disaster declarations for the following counties in Kentucky: Caldwell Fulton Graves Hopkins Marshall Muhlenberg Taylor Warren An FHA/HUD press release published at HUD.gov adds that there is also relief on a “cost-sharing basis” in Caldwell, Fulton, Graves, Hopkins, Marshall, Muhlenberg, Taylor, and Warren counties. What does the FHA/HUD disaster relief announcement mean for FHA borrowers and homeowners? HUD offers “immediate foreclosure relief” for FHA mortgages in the form of a 90-day moratorium “on foreclosures of Federal Housing Administration (FHA)-insured home mortgages | more...

October 6, 2021

Federal Disaster Relief For FHA Borrowers In Montana, New Hampshire

By Joe Wallace

The 2021 disaster season has seen a large number of federal disaster area declarations; that combined with a global pandemic and it’s easy to see that mortgage relief in any form is a much-needed thing. In October 2021, the FHA and HUD announced foreclosure relief in areas of New Hampshire and Montana affected by natural disasters. In New Hampshire, those areas included the counties of Cheshire and Sullivan which were harmed by severe storms and floods. In Montana, areas affected by something known as the Richard Spring Fire received a major disaster declaration for Rosebud County and the Northern Cheyenne Indian Reservation. In declaring these areas as federal disaster areas, HUD is able to offer foreclosure relief in those areas–a 90-day moratorium on foreclosures of FHA-insured mortgages starting on the | more...

September 28, 2021

FHA And HUD Announce New Foreclosure Relief Measures For Those Recently Affected By COVID-19

By Joe Wallace

The Department of Housing and Urban Development has announced new COVID-19 relief measures for those with FHA mortgages. This news comes on the heels of a previously issued FHA Mortgagee letter, ML2021-19, “Extension of the Foreclosure-Related Eviction Moratorium and Expiration of the Foreclosure Moratorium in Connection with the Presidentially-Declared COVID-19 National Emergency” which contained the following statement: “HUD’s foreclosure moratorium is set to expire on July 31, 2021, and HUD is not extending that moratorium further”. That statement is true for many; the FHA and HUD have added more help but it is intended for those who have experienced recent financial difficulty because of COVID-19. For those who have already taken advantage of this help, the loan forbearance offered borrowers a chance to save their homes even during the prolonged | more...

September 7, 2021

HUD Charges Florida Condo Owner’s Association With Fair Housing Act Violations

By Joe Wallace

There are many different forms of housing discrimination and such violations of federal law can happen at any stage of the housing process. That means you can find examples of violations of the Fair Housing Act in many other places besides the rental application process, the home loan application process, or even the refinance loan system. Did you know that housing discrimination cases are also found in areas such as the decisions of homeowner’s associations? That’s an area that doesn’t get discussed much in home loan circles, but violations of the Fair Housing Act have disastrous effects for those who seek housing. One good example of this is found in a September 2021 press release at the Department of Housing and Urban Development’s official site announcing charges against a condo | more...

FHA Fixed-Rate Mortgages Versus Adjustable Rate Mortgages

June 30, 2021

The End Of National Homeownership Month

By Joe Wallace

The month of June is National Homeownership Month, and now that the month is over, the FHA and HUD are reminding potential FHA borrowers about government initiatives to encourage homeownership, prevent discrimination, and enable first-time homebuyers to consider purchasing a new house. The HUD official site announced at the end of June that there are more initiatives coming to improve free access to housing and further prosecute violations of the Fair Housing Act. According to a press release on HUD.gov, this process began in the first days of the Biden Administration with the newly-sworn-in President of the United States issuing a memorandum to the Department of Housing and Urban Development “to address discrimination in our housing market”. Since those earliest days, HUD has issued a proposed rule “on countering housing | more...

June 18, 2021

Changes To FHA Home Loan Policy: Student Loan Debt

By Joe Wallace

The Department of Housing and Urban Development official site has published a press release announcing an important revision to FHA Single-Family home loan guidelines in HUD 4000.1 concerning how a participating FHA lender should consider student loan debt as part of the loan approval process. Before the publication of HUD 4000.1, the FHA Single-Family Loan program handbook, FHA loan rules “did not address how Mortgagees should calculate future payments of deferred student loan debt which, once due, could negatively impact a Borrower’s long-term ability to repay their Mortgage and other monthly obligations” according to the HUD press release. What’s more, FHA loan rules did not consider deferred and non-deferred student loan debt separately. When HUD 4000.1 was published to replace HUD 4155, FHA loan rules were modified to require a | more...

June 16, 2021

HUD Charges Niagra Falls Landlord With Fair Housing Act Violations

By Bruce Reichstein

Housing discrimination at any stage of the process has negative effects on the entire industry. It doesn’t matter if you are trying to purchase or rent. It doesn’t matter if you are a single borrower, or seek housing on behalf of a family, everyone is entitled to fair access to housing according to federal law. Some Fair Housing rights are better understood than others. Most people understand that it is illegal for a landlord, lender, seller, or housing services provider to discriminate against you for your national origin, religion, race, family status, or other non-financial reasons. But did you know that the same is true for having or needing a service animal? Anyone denied housing for having or needing a service animal has experienced a violation of Fair Housing laws. | more...