hud: 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)
hud: HUD Announces Fair Housing Protections For Borrowers W/Limited English
- 09/15/16 11:17 PM
It's known as "LEP" or "limited English proficiency, and has been an issue that directly affects legally binding agreements including home loans for as long as there have been such arrangements made in the United States. But now, LEP is being addressed directly through guidance from the Department of Housing and Urban Development, as described in a recent press release on the HUD official site. "The U.S. Department of Housing and Urban Development (HUD) today issued 'Limited English Proficiency' (LEP) guidance that addresses how the Fair Housing Act would apply to claims of housing discrimination brought by people because they do not … (0 comments)
hud: FHA Loan Rules For Overtime Income
- 08/18/16 11:07 PM
A reader asks, "Can I use my current overtime income if I’ve been working at this company 20 months but my previous company I also had overtime which I worked there for 1 year and my previous before that I worked for 4 years with overtime?" FHA loan rules require the loan officer to verify income that will be used toward calculating the borrower's debt-to-income ratio. Only verifiable income can be used, which means the lender must determine that the income is stable, reliable, and likely to continue. Income from a variety of sources may be considered. Some FHA loan applicants have seasonal … (1 comments)
hud: 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)
hud: FHA Loan Tools
- 05/05/16 11:30 PM
If you are in the planning stages of a new home loan, there are plenty of FHA loan tools you can use to help you prepare. The planning stage of your new home loan is just as important as the house hunting, home inspection, and negotiation stages. Do you have the right tools to get started? FHA Loan Limits Knowing how much loan the FHA guarantees in your area is an important part of the process. FHA loan limits are not the absolute maximum you can borrow, but getting a bigger home loan above and beyond those limits may require you to work … (0 comments)
hud: 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)
hud: FHA Loans and the Importance of a Home Inspection
- 03/18/16 12:12 AM
The difference between an FHA appraisal and a home inspection is an issue that crops up frequently--especially in reader comments. Borrowers applying for an FHA mortgage to buy a home are required to have an FHA appraisal to insure that property meets minimum standards. But when a home passes the appraisal process or allows the loan to go through as long as required corrections are made, does that mean the property has been inspected and approved by the FHA? Not according to the FHA official site, which says an appraisal is never a guarantee or endorsement of any kind. Borrowers should know … (0 comments)
hud: HUD Proposes Changes To Manufactured Housing Standards
- 02/10/16 10:32 PM
One common question asked by some about the FHA single-family home loan program is whether an FHA mortgage can be used to purchase an RV-type mobile home or a houseboat. The answer in both cases is no because a house boat or recreational vehicle/RV motor home cannot be affixed to a permanent foundation. Therefore they cannot be sold as "real property" under the law, which makes them ineligible for an FHA mortgage. The lines between recreational vehicles and manufactured housing or mobile homes can be blurry sometimes--why do some people confuse an RV with a mobile home? Foundation issues and real property status … (15 comments)
hud: Know Your Rights: The Fair Housing Act
- 10/08/15 11:20 PM
Recently there was FHA/HUD press release issued, announcing action against a Pennsylvania landlord who allegedly discriminated against families with children in his rental practices. The same kinds of violations of the Fair Housing Act can occur when trying to buy a home, and such cases are important as awareness-raising tools. When examining these issues, it becomes apparent that many people aren't fully aware of their rights under the Fair Housing Act. Renters, house hunters, landlords and property owners alike are affected by this important federal law. But what ARE the rules under the Fair Housing Act? You can find a wealth of information … (1 comments)
hud: 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)
hud: Missing Kitchen Fixtures and the VA Appraisal
- 08/01/12 10:51 PM
A reader asks, “We have found a really nice HUD home in great condition, but all kitchen appliances are gone. They even took kitchen sink, most light fixtures have been removed. Other than that, the house is great.” “I understand that HUD doesn’t allow repairs prior to closing so I am trying to find out what I really need to pass VA inspection. Do realtors ever let you hook up stove, dishwasher, and sink so you can pass the VA inspection since you are pre-approved for loan and have won the HUD bid?” The reader’s question is affected by several factors–not … (1 comments)
hud: Veterans Specifically Named in Historic Housing Settlement Between Government, Major Lenders
- 02/15/12 02:20 AM
A recent Department of Housing and Urban Development press release announced a massive settlement between the federal government and the nation’s largest home loan servicers. “…(The) federal government and 49 state attorneys general have reached a landmark $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. The agreement provides substantial financial relief to homeowners and establishes significant new homeowner protections for the future.” In our previous blog post we mentioned that this settlement mentions veterans specifically. How does this landmark agreement affect VA borrowers and veteran home owners? According to the press … (0 comments)
hud: Historic Settlement Affects Veteran Homeowners, VA Borrowers
- 02/15/12 02:02 AM
The Department of Housing and Urban Development recently announced a historic $25 billion settlement between the federal government and five major lenders over loan servicing and foreclosure abuses. According to a HUD press release, this arrangement offers “substantial financial relief to homeowners and establishes significant new homeowner protections for the future”. The settlement, which involves Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc., and Ally Financial Inc. (formerly known as GMAC) is the result of investigations by the Department of Justice, HUD and the HUD Office of the Inspector General, plus state attorneys general and … (2 comments)
hud: New Disclosure Notice Requirements For Military Borrowers At Risk of Home Loan Default
- 07/01/11 02:54 AM
Military members have long had a form of financial protection offered under something known as the Servicemembers Civil Relief Act or SCRA for short. At one time, this legislation was known as the Soldiers And Sailors Civil Relief Act, but those protections were re-written and expanded when the legislation was replaced in 2003 by the Servicemembers Relief Act–military members on active duty or called to active duty have protection against loan default, foreclosure and other issues (as described in the act). Protection under the SCRA is not automatic–military members must notify their creditors in writing using the procedure described in the … (3 comments)
hud: VA Loans and Fair Housing Laws
- 09/29/10 09:20 AM
Every so often, the Department of Veterans Affairs issues sanctions against a lender or group of lenders for violating VA regulations. One set of regulations lenders are required to follow in order to be qualified to issue VA home loans? Fair Housing laws. These were passed as part of the Civil Rights Act of 1968 and anyone applying for a VA mortgage is protected from discrimination under Fair Housing rules. According to the VA, lenders are prohibited from refusing to deal, falsely stating that a property is not available for sale, discriminating when it comes time to finance a VA home … (1 comments)
hud: Can a Lender Get Away With Discriminating Against Pregnant Borrowers?
- 08/13/10 01:03 AM
My fellow Active Rain blogger Erica Ramus posted an eye-opening blog entry about a case where a Bank of America lender reportedly asked a couple about plans to have children during the home loan application process.Erica wrote, “This is a young couple moving from their first to second home. At the last minute, the underwriter (of course) requested several more forms and more information. Okay, normal. But one question they asked the husband was "Do you plan on having more children?"(End quote.) When it comes to VA loans, or any other type of home loan, the Fair Housing Act has much to … (1 comments)
hud: Can I Convert a HUD Value Notice to a VA Appraisal?
- 08/05/10 11:22 AM
This is an excellent question. Unfortunately the answer is no in most cases for one simple reason; the Department of Veterans Affairs is picky when it comes to appraisals. The VA is required by law to assign fee appraisers, but HUD rules allow the lender to choose the appraiser. It’s as simple as that.Or is it? The VA does allow exceptions to this policy to avoid duplicate efforts and unnecessary appraisal costs. The VA rulebook seems to imply this exception would be handy if a veteran were looking at buying a home with an FHA home loan only to change his … (0 comments)
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Bruce Reichstein
FHA / VA One-Time Close Construction to Perm Loans
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