Federal Housing Administration - Articles

7 Ways New FHA Loan Limits Might Affect Homebuyers in 2014

Shutterstock By Scott Sheldon The Federal Housing Administration recently announced a reduction in high-cost area loan limits. This reduction comes in accordance with the government's ongoing effort to retreat from the housing market. Rewind the clock back to 2008, when financial markets were significantly depressed,... Continue Reading »

HUD Mortgage Sale Could Help Thousands of FHA-Insured Borrowers but Unfairly Exclude Others

The U.S. Department of Housing and Urban Development has begun selling off thousands of seriously delinquent mortgages insured by the Federal Housing Administration, a move that could save many distressed borrowers from losing their homes. But it also leaves thousands more who are saddled with equally distressed FHA... Continue Reading »

FHA Bailout May Be Needed, Report Says

For the first time in its 78-year history, the Federal Housing Administration may need a government bailout to stay in operation, The Wall Street Journal reports. The FHA, which insures mortgage lenders against losses, is expected to report this week that it's close to exhausting its reserves and may need to turn to... Continue Reading »

Closer to a Bailout? FHA's Mortgage Delinquencies Soar

By Tami Luhby NEW YORK -- The mortgage market appears to finally be stabilizing -- as long as you ignore loans backed by the Federal Housing Administration. Increasingly, FHA-insured loans are falling into foreclosure or serious delinquency, moving in the opposite direction of loans guaranteed by Fannie Mae and Freddie... Continue Reading »

FHA Lifts Ban on Homebuyers Who Have Credit Disputes

By Jon Prior The Federal Housing Administration rescinded a rule that would have denied financing to potential homebuyers with ongoing credit disputes of more than $1,000, according to an alert sent to lenders Friday. The FHA quietly drafted the rule in March to mitigate risks to its emergency fund. The rule went into... Continue Reading »

BofA Mailing Principal Reduction Offers to 200,000 Borrowers

LOS ANGELES -- Homeowners with a Bank of America mortgage have good reason to check their mailbox. The lender said Tuesday that it has begun mailing out letters to customers who may qualify to have their home loans reduced as part of a multistate settlement over alleged foreclosure abuses. The Charlotte, N.C.,-based... Continue Reading »

Obama: Mortgage Help Coming for Military, FHA Borrowers

WASHINGTON -- President Barack Obama is aiming mortgage relief at members of the military as well as homeowners with government-insured loans, the administration's latest efforts to address a persistent housing crisis. In his first full news conference of the year Tuesday, Obama was to announce plans to let borrowers... Continue Reading »

FHA Loan Costs to Rise in April

By Jon Prior The Federal Housing Administration will raise mortgage insurance premiums this April in order to repair the health of its emergency fund. The FHA upfront mortgage insurance premium will increase to 1.75 percent from 1 percent of the base home loan amount. This will apply regardless of the term or... Continue Reading »

Obama Pushes Congress to Pass New FHA Refi Plan

WASHINGTON -- President Barack Obama is rallying support for his plan to expand government assistance to homeowners, pressuring Congress to help lower lending rates for millions of strapped homeowners. Obama, in his radio and Internet address Saturday, urged the public to "get on the phone, send an email, tweet," and... Continue Reading »

Bernanke: Fed Should Help Turn Foreclosures Into Rentals

Most of Washington's initiatives to staunch the flow of foreclosures glutting the housing market have been woefully inadequate. (We're looking at you, HAMP, HAFA and HARP). But a new idea put forth by Federal Reserve Chairman Ben Bernanke might actually make a dent in the bank-owned backlog: Allow renters to move into... Continue Reading »

FHA Says 'Flippers' Free to Play Through 2012

By Les Christie NEW YORK -- Flippers, the real estate investors who buy homes on the cheap and quickly resell them at a profit, just got a reprieve from the Federal Housing Administration. In an effort to help stabilize housing prices and unload some of the foreclosures that are flooding low-income communities, the... Continue Reading »

FHA Loans: What 3.5% Down Can Buy in This Housing Market

In today's Scrooge-like lending market, many borrowers are under the impression that they simply don't have the balance sheets or resumes necessary to buy a home. But while it's true that banks now hold borrowers to much stricter income standards, many homeowners can still pull off a home purchase with a startlingly... Continue Reading »

Government Shutdown May Impact First-Time Home Buyers

The government shutdown that will occur if Republicans in Congress and President Obama can't come to terms on budget legislation by midnight tonight could hit the ailing spring home-buying market like a ton of paving stones. The Federal Housing Agency (FHA), a popular source of low-down-payment mortgages of as little as... Continue Reading »

FHA Sets Credit Score Limits for First Time

The most flexible first-time homebuyer loan just became a bit more stringent. Starting Oct. 4, homebuyers must have a minimum credit score of 500 to be eligible for a Federal Housing Administration-insured mortgage. Borrowers seeking a single-family home mortgage with credit scores ranging from 500 to 579 will be limited... Continue Reading »

Underwater Borrowers Get a Lifeline on September 7 - Sponsorship

Is your home underwater? Do you owe the bank more than it's worth? if so, you may finally be able to get a fixed-rate Federal Housing Administration loan with principal reduction. Available to qualified homeowners on Sept. 7, these new FHA loans require banks to write down at least 10 percent of the unpaid balance of the... Continue Reading »

Ben Bernanke Prepares Fannie and Freddie's Last Rites

Many of us never expected Fannie Mae and Freddie Mac to emerge from conservatorship, but now the death knell has sounded. By January we should know at least how the Obama administration wants to reorganize government support for the mortgage market, which will include the fate of the government-sponsored entities -- Fannie... Continue Reading »

FHA Reform Bill to Allow Smaller Down Payments, Higher Fees

The Federal Housing Administration reform bill overwhelmingly approved in the U.S. House of Representatives last Thursday will strengthen the housing finance agency, but will likely prove to be mixed blessing for homebuyers. The legislation, passed by a vote of 406 to 4, would raise fees for borrowers, give the FHA the... Continue Reading »

Renters Rejoice: Homeowners' Loss is Your Gain

Renters rejoice! If it seems like the government has been focused on helping homeowners (when they're not helping bankers, that is), now it's your turn. While the rest of the federal government is slashing its budget, the U.S. Department of Housing and Urban Development is aiming for a 5 percent hike in 2011 – much... Continue Reading »

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