fha mortgages: Well Water: FHA Loan Questions
- 09/22/16 11:01 PM
A reader asks, "FHA use to only require that these top items need to pass. Lead (first draw), Nitrate, Nitrite, Total Nitrate/Nitrite,Total Coliforms, Fecal Coliforms or E. Coli. Is this still true? I am hearing that a full water panel is required to be done, is this now true and if so,is FHA major focus still on the top items passing? Also what is required by FHA if one of these items fails?" This question is in reference to FHA requirements for properties that are served by wells. In general, the local health authority would set the standards, so the reader … (3 comments)
fha mortgages: FHA Mortgage Loan Terms: Understanding Equity
- 07/24/16 11:55 PM
Let's Talk About Home Equity from FHA.com video on Vimeo. Equity is an important term to understand when you're applying for any kind of mortgage loan, but for some loans equity is a larger factor than others. For example, when you apply for a new purchase FHA loan to buy a home, you start out with 3.5% of the adjusted price of the home as your equity. That's the amount of your down payment, and the equity grows over time with the number of payments you make. When you apply for a home equity loan, a home equity line of credit, or an … (3 comments)
fha mortgages: FHA Loans Versus Conventional Loans
- 07/08/16 12:52 AM
What are the differences between FHA home loans and conventional loans? There are several, some features of mortgage loans can vary depending on the lender, and state law may also affect how your home loan is handled depending on circumstances, but there are a few very important general differences to keep in mind when comparing FHA loans to conventional loans. The first difference is the basic nature of the loan itself. Conventional loans are not backed by the government, unlike FHA home loans where the FHA guarantees a portion of the loan to make it more attractive to the lender to issue … (4 comments)
fha mortgages: FHA Loan Questions: Overtime Pay
- 07/01/16 08:50 AM
We get many questions in our comments section about how FHA loan rules may apply to a specific situation with regard to employment, pay, and verifiable income. Some potential borrowers want to know if having frequent changes of employment will negatively affect an FHA loan application (not necessarily) and others want to know if their new commission income will count towards their "effective income" (it depends on how long the commission income has been earned and whether it's likely to continue). Still others want to know how the question of overtime pay is handled in the FHA loan rulebook. Recently, one reader asked: "I … (2 comments)
fha mortgages: FHA Loan Questions: Co-Borrowers
- 06/26/16 01:55 AM
A reader asks, "My husband is a co burrower on his mothers mortgage loan and he has been asking her to remove his name from it but she hasnt. The mortgage has affected his credit and has made it hard to get a home of our own. Can his name be removed from the mortgage or is this something we need a lawyer for?" Before answering this question, let's examine how the FHA defines the role of a co-borrower. Page 128 of HUD 4000.1 states: "To be eligible, all occupying and non-occupying Borrowers and co-Borrowers must take title to the Property in their … (2 comments)
fha mortgages: 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 mortgages: FHA Home Loan Interest Rate Questions And Answers
- 06/09/16 11:17 PM
There are many questions about FHA home loans, especially where interest rates are concerned. Do you know how the FHA loan process works when it comes to negotiating rates or choosing a fixed rate or an adjustable rate mortgage loan? Here are some of the most common questions and answers in this area: How does the FHA set interest rates on FHA mortgage loans and refinance loans? In general, the FHA actually does not set or regulate interest rates on FHA home loans. For certain loan products there are restrictions on how interest rates can be changed or modified, and there are rules … (1 comments)
fha mortgages: FHA Loan Questions: Mixed Use Property
- 03/29/16 11:10 PM
We answer many questions about FHA home loans in the comments section. Here's one of the most recent, on the subject of mixed-use properties, co-borrowing, and more: "My sister and I want to buy a house that is 1/2 apartment, 1/2 store. I already own a home and have an 820 credit score. She has a 620 score, and would be the owner occupant. I am married. Does my husbands income affect the debt to income ratio? If not, am I only calculated as responsible for 1/2 of our mortgage payment each month?" There are several issues that can affect the answers … (1 comments)
fha mortgages: FHA Loans, Credit Issues, And Down Payment Assistance Programs
- 12/21/15 04:11 AM
A reader got in touch recently to ask about FHA loan credit requirements and down payment assistance programs. That question includes the following: "...My (FICO) score was about 500 for years till I finally am working with the Lexington Law Firm that Im paying $99 a month that I have 3 negatives I still am owing but I see that now I have my score went up to 648 which is fair but I want to know about the loan." "Will FHA approves me to get a loan to buy a house in PA. But Im not quite sure about AmeriDream that if … (0 comments)
fha mortgages: FHA Loan FICO and Credit Minimums Versus Lender Standards
- 09/17/15 10:55 PM
I get many questions about the difference between FHA loan minimum FICO score and credit requirements and the lender requirements for same. Here's one of the latest examples: "Seems like there is a lot of contradiction between what is on the FHA site and what the FHA Reps. are answering the consumers the questions. Why have FHA guidelines if the lenders dont have to follow them and can overrule them with their own? I have a credit score of 580 and a one time 30 day late mortgage payment in the past 12 months..." There were other details in the reader question, but … (0 comments)
fha mortgages: FHA Loan Appraisal Rules: Peeling Paint
- 08/29/15 02:34 AM
FHA appraisals can be tricky to understand, depending on the outcome. For example, we get asked several times a year why an FHA appraiser required corrections on cracked or peeling paint on surfaces in a given home. The question is usually associated with the seeming cosmetic nature of these corrections. "Why," the readers will ask, "is this a must-fix when it's just some paint peeling off a windowsill or door frame?" The answer in this particular case has a lot to do with lead abatement. Depending on the age of the home, lead paint may or may not be present. The FHA appraisal … (2 comments)
fha mortgages: FHA Clarifies Mortgage Insurance Premium Cuts
- 01/10/15 01:13 AM
When the FHA announced mortgage insurance premium cuts in the annual, mortgage insurance premium (MIP), there was a preliminary announcement on Thursday January 8th, with details promised to follow. Now the FHA has issued a Mortgagee Letter announcing specifics of those MIP cuts. FHA Mortgagee Letter 2015-01 states, "This Mortgagee Letter (ML) communicates revised annual MIP rates for FHA Title II forward mortgages and provides opportunity for cancellation of existing case numbers in order to utilize the MIP rates contained in the ML." The new rules are effected for FHA loan case numbers assigned on or after January 26 2015. According to … (0 comments)
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