The rates of defaults and delinquencies on FHA mortgage loans continues to surge. The latest Monthly Report to the FHA Commissioner on FHA Business Activity reveals that almost 1 out of every 10 FHA mortgages is now classified as “seriously delinquent”. A seriously delinquent loan is defined as being 90 days or more past due, […]
FHA Lists 50 Counties With Highest Default Rates
February 16, 2012 Filed Under: FHA Eligibility Requirements, FHA loan, FHA mortgage, HUD foreclosed homes, Mortgage Default
FHA Wins $1 Billion From Bank of America For Claims Related To Mortgage Fraud
February 10, 2012 Filed Under: FHA Eligibility Requirements, FHA loan, FHA mortgage, Mortgage Default
The Department of Housing and Urban Development (HUD) announced a $1 billion dollar settlement relating to mortgage fraud by Bank of America against the Federal Housing Administration (FHA). HUD, which had been investigating lending practices at Bank of America since 2009 said that Bank of America knowingly made FHA loans to unqualified home buyers. HUD […]
A First Time FHA Home Buyer Asks “How Much Home Can I Afford?”
February 8, 2012 Filed Under: Benefits of FHA Mortgage, FHA Eligibility Requirements, FHA loan, FHA mortgage
One of the first questions that a first time homebuyer seeking an FHA mortgage will ask is “How much home can I afford?”. It is widely known that banks have tightened underwriting standards in order to prevent homebuyers from purchasing a home that they cannot afford and winding up in default. Although the prospect of […]
Sometimes, FHA Financing Is Not The Best Option For Homeowners
January 30, 2012 Filed Under: FHA Down Payment Requirements, FHA Eligibility Requirements, FHA loan, FHA mortgage, FHA Mortgage Insurance
FHA mortgage financing offers the benefits of low interest rates, relatively liberal underwriting guidelines and low down payment requirements. Sometimes, however, FHA financing is not the best option for a home buyer. One of the biggest drawbacks to FHA financing is the expensive mortgage insurance charged to borrowers. In addition to being charged an upfront […]
Why FHA Borrowers With FICO Scores Below 620 Can’t Get Approved
January 12, 2012 Filed Under: Benefits of FHA Mortgage, FHA Eligibility Requirements, FHA loan, FHA Minimum Credit Scores, FHA mortgage, FHA Mortgage Basics
FHA mortgage programs are the most lenient in the industry and borrowers with low credit scores have frequently had no other options except FHA financing. Current FHA guidelines state that borrowers with credit scores above 580 are qualified for FHA financing with only a 3.5% down payment. The reality, however, is quite different as very […]