fha mortgage loan: Divorce and FHA Loan Applications
- 11/13/16 10:21 PM
FICO scores, debt-to-income ratios, and credit history aren't the only things that can factor in when the lender is gathering data from your FHA mortgage loan application. Borrowers who are divorced may experience additional requests from the lender for paperwork or supporting documentation. We get questions about issues like these quite frequently. Here's one recent example from the comments section: "Legally divorced in SC for close to seven years. There was no alimony, no children, and bills were split. The underwriters for an FHA re-finance are demanding a copy of the Separate Maintenance and Property agreement filed at the time of separation, a … (1 comments)
fha mortgage loan: High Voltage Lines and FHA Loans
- 11/04/16 06:03 AM
A reader asked a question recently about high voltage transmission lines and the FHA loan rules that address them in relation to the property to be purchased with an FHA mortgage. "I am looking to find info regarding High Voltage Transmission Lines. I know that in 4150.2 that it clearly states that the dwelling or other improvements can not be within the “fall zone”. However I am not locating this info in more updated references. Can you help with me finding this info?" FHA loan rules were updated in HUD 4000.1, and have since replaced many older references. According to the FHA/HUD official … (4 comments)
fha mortgage loan: FHA Loans & Appraisal Rules: A Reader Question
- 08/26/16 01:42 AM
A reader asks, "I have been told by my realtor and the lender that an appraisal on a house I own will be on record for 180 days. They said that the appraised value will be on record and no other FHA appraisal can be made during this 180 day period. Is there a master list that other lenders and appraisers cross reference during this six month period? My reading of your blog indicates that if another FHA buyer makes an offer on my property. a different appraisal would need to be performed." HUD 4000.1 does indeed contain language that leads one … (2 comments)
fha mortgage loan: FHA Adjustable Rate Mortgages
- 06/19/16 11:08 PM
The government's consumer protection agency, The Consumer Financial Protection Bureau (CFPB), has a page on its official site explaining the differences between a fixed rate mortgage loan and an adjustable rate mortgages, sometimes known as ARM loans. According to the CFPB, "The difference between a fixed rate and an adjustable rate mortgage, is that for fixed rates the interest rate is set when you take out the loan and will not change. With an adjustable rate mortgage, the interest rate may go up or down. With a fixed rate mortgage, the interest rate is set when you take out the loan and … (2 comments)
fha mortgage loan: FHA Loan Questions: The Good Neighbor Next Door Program
- 05/26/16 08:13 AM
A reader asked us a question recently in the comments section about the HUD Good Neighbor Next Door program. "I am a 13 year veteran Corrections Officer of the Maryland's DCSCS and I wanted to inquire as to whether or not I qualified for the Good Neighbor Next Door Program." The HUD Good Neighbor Next Door program is mentioned on the FHA/HUD official site, which states, "Law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the … (0 comments)
fha mortgage loan: FHA Loan Questions: Paying Fees
- 04/10/16 10:55 PM
A reader asks, "Is their costs in an FHA loan the the seller has to pay for the buyer, and if so what are those costs?" FHA loan rules in HUD 4000.1 permit "interested parties" to contribute a certain amount towards approved expenses of an FHA mortgage loan for a new purchase. The rules for these contributions are found starting on page 220, which has both a definition of the phrase, and the types of costs these parties may contribute. "Interested Parties refer to sellers, real estate agents, builders, developers or other parties with an interest in the transaction. Interested Party Contribution … (0 comments)
fha mortgage loan: Why Use An FHA Loan Mortgage Calculator?
- 02/04/16 11:22 PM
When you are planning your home loan, there are many aspects to consider. The selling price of the home is only one of those aspect; borrowers will need to save money for closing costs, a home inspection, and make a monthly budget for the mortgage amount, plus taxes and insurance. Some of the planning phase of your FHA mortgage involve things like requesting copies of your credit reports--things with concrete numbers such as FICO scores and payment amounts. But when it comes to figuring out your mortgage payment, arriving at the actual number can be a bit tricky. That's one reason why it's … (2 comments)
fha mortgage loan: FHA Mortgage Loan Limits For New Purchase Loans And Refinance Loans
- 01/28/16 09:33 PM
We've gotten some questions recently about FHA mortgage loan amounts, so it seemed like a good time to post the FHA loan rules found in HUD 4000.1 about how maximum loan amounts are calculated. There are FHA loan guaranty limits and FHA mortgage loan amounts--the two shouldn't be confused as FHA mortgage loan guaranty limits refer to the amount of money the FHA will guarantee for the loan, whereas the maximum loan amount is the highest amount for a specific transaction that the lender/FHA loan rules will allow. FHA loan rules say the maximum can be affected by the type of transaction. You … (0 comments)
fha mortgage loan: HUD 4000.1 On Calculating Maximum Mortgage Amounts For Purchase Loans
- 12/06/15 09:42 AM
HUD 4000.1 was published earlier in 2015, and contains new, updated, and restated FHA loan policy on single-family mortgages, refinance loans, HECM loans and more. One important section of the new FHA home loan rules for single family mortgages is the part of HUD 4000.1 that discusses maximum mortgage loan amounts. Do you know what the rules are for calculating the maximum loan amount on a new purchase FHA loan? According to HUD 4000.1, "The maximum mortgage amount that FHA will insure on a specific purchase is calculated by multiplying the appropriate LTV percentage by the Adjusted Value. In order for FHA to … (0 comments)
fha mortgage loan: CFPB: Home Loan Changes Coming In October
- 09/27/15 11:16 PM
The Consumer Financial Protection Bureau (CFPB) is a government agency designed to help consumers and protect their interests against fraud and unfair practices. CFPB issued a statement recently about new federal guidelines that will affect the mortgage lending process, making it easier for borrowers to understand the transaction. The agency has announced that starting October 3, 2015, those who apply for "most mortgages" on or after that date, "the stress of shopping for a mortgage will be reduced, as our new mortgage disclosure rule takes effect. The new rule and disclosures ease the process of taking out a mortgage, helping you save … (0 comments)
fha mortgage loan: HUD 4000.1 Takes Effect Monday September 14 2015
- 09/13/15 06:13 AM
Monday September 14, 2015, the new FHA Single Family Home Loan Policy Handbook takes effect. It's called HUD 4000.1 and is now the reference for all FHA single family home loans. Up to now, certain parts of the handbook have been in effect, while other portions were printed but not effective until today's launch date. A variety of policies have been superseded by the new guidebook, while others have been reproduced and ported over. The new Single Family Policy Handbook is broken down into five basic sections, and there is an FHA/HUD FAQ preview page that answers the most common questions about the new … (3 comments)
fha mortgage loan: FHA Loans And Non-Purchasing Spouses
- 08/23/15 01:03 AM
There are a lot of questions asked about FHA loans and how spouses can buy together. Can the FICO scores of one spouse make up for the lower scores of the other borrower? Can one spouse's income offset the lower income of the other? How does state law factor into FHA loan applications when spouses apply? All valid questions. But what about circumstances where one spouse is not borrowing? Does an FHA loan require action on the part of a non-borrowing spouse? The answer can be influenced by state law, lender standards, and FHA loan regulations. At the time of this writing, FHA … (3 comments)
fha mortgage loan: FHA Home Loan Closing Policies
- 07/11/15 01:30 AM
Did you know that loan rules found in HUD 4155.2 cover specific aspects of the FHA loan closing procedure including taxes, closing costs, and title issues? Chapter Six of HUD 4155.2 explains these policies. For example, in Chapter Six we learn that the lender is permitted to calculate--and collect--property tax payments under the right circumstances: "...The lender may project real estate tax payments, and collect those funds as a portion of the monthly escrow account payment without violating the Real Estate Settlement Procedures Act (RESPA). RESPA requires that a borrower receive an initial escrow account statement at settlement or within 45 days of … (1 comments)
fha mortgage loan: FHA Single Family Home Loans: Owner-Occupiers Only
- 06/23/15 01:11 AM
Recently we answered a reader question in the comments section about the nature of FHA single-family home loans. The reader wanted to know if it was possible to get an FHA home loan on a home to be used as a rental property or as a guest house for visitors, etc. The short answer to this question is no. FHA loans are designed for those who intend to purchase a home and move into it when the loan closes. The borrower is required to occupy the home as his or her personal, primary residence as a condition of loan approval. This would … (1 comments)
fha mortgage loan: What You Should Know About FHA Loan Interest Rates
- 06/12/15 11:36 PM
We get many reader questions about interest rates on FHA home loans, and it's clear from these questions that a misconception still exists--some people believe the FHA sets or regulates the interest rates on FHA single family home loans. This is not true, but in spite of that we get variations on a common type of question that goes something like this: "Should I expect an FHA loan interest rate above XYZ? What kind of interest rate should I be getting?" The truth is that FHA loan interest rates, while lower than the conventional equivalents, is still subject to negotiation between the … (5 comments)
fha mortgage loan: FHA Appraisals: Sewer & Septic
- 05/10/15 08:52 AM
A reader asks, "We closed on house on 3/31. Had inspection. Stated was sewer, prev owner said was sewer, realtor said was sewer. On 5/8 found waste backed up in toilet in basement, called plumber, found out we have a septic system, currently waiting on them to come out inspect and pump." "We have a FHA loan. How was this missed? we have no problem paying to have it pumped, but who is responsible if it more then pumping out issue? The company we called (only one in area) stated he had just pumped it 2 years ago. So prev owners knew it … (2 comments)
fha mortgage loan: FHA Loan Appraisal Rules: A Reader Question
- 01/02/15 01:22 AM
A reader asks, "My husband and I were just approved for a FHA loan or a RD loan, but we are being told the house doesn’t qualify because the basement only has small windows (no step outs and no door leading outside). The basement contains two bedrooms, a living room and a laundry room. Is there anyway to modify the basement to ensure the house qualifies?" The FHA appraisal would recommend corrections or repairs in such cases based on FHA minimum property requirements and/or state/local building code. Much depends on building code requirements for your state or local area. Borrowers who find … (2 comments)
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