Back in January of last year, HUD announced it was waiving its rule of prohibiting the 90 day waiting period for obtaining an FHA mortgage on a flipped property. The change was originally intended to temporarily help boost the sagging housing market and was set to expire on January 31, 2011.

On Friday of last week, FHA Commissioner David Stevens extended the “anti-flipping rule” waiver through January 31, 2011, and said the move was based on HUD’s intention to help “accelerate the re-sale of foreclosed upon homes in neighborhoods struggling to overcome the possibility of property abandonment and blight.”

Continue Reading FHA Extends 90 Day Property Flipper Waiver

Tags: FHA, HUD, mortgages, real estate

Once again the government is set to throw more taxpayer money right out the window in the name of bailing out homeowners facing foreclosure. Quite frankly, such a move no longer shocks us as much as it makes us just want to scream “stop this insanity.”

Here’s why. The government is going to make $3 billion available through a couple of different programs whereby so called hard hit homeowners facing foreclosure will be able to apply for up to $50,000 “deferred payment bridge loans” that are zero percent interest, non-recourse subordinate financing good for 24 months to help them pay for their mortgage principal, interest, mortgage insurance, taxes and hazard insurance payments. So, let’s see if we understand this right. They have no jobs or are facing some form of severe financial hardship and we are supposed to believe that within 24 months things are going to turn completely around and they will then be back on their feet and just fine? Well, if that’s the case, then why the non-recourse stipulation?

Continue Reading Will the Handouts Never End?

Tags: foreclosures, HUD, mortgages

The Department of Housing and Urban Development (HUD) released its Fiscal Year 2009 annual State of Fair Housing Report this week. The report is a compilation of complaints filed with HUD and a review of the agency’s progress in enforcing the Fair Housing Act.

According to the report, there were 10,242 complaints filed with the agency. Discrimination based on a person’s disability status (44%) accounted for the largest single category of complaint, followed by discrimination based on race (31%) and discrimination based on family status (20%). It also highlights HUD’s recent efforts to ensure that the agency’s core housing programs are open to all, regardless of sexual orientation or gender identity.

Continue Reading HUD State of Fair Housing Report

Tags: buyers, HUD

Buyers and investors looking to purchase a property using FHA financing have some good news and bad news to consider. FHA commissioner David Stevens outlined the agency’s new policy guidelines last week. Included in his announcement were changes to “seller concession” ceilings and new FICO score related down payment requirements that went into effect immediately. Changes to the 90 day “anti-flipping rule” go into effect today. And finally, proposed changes to the “upfront” mortgage insurance premium and the “annual” mortgage insurance premium that are slated to go before Congress for approval shortly and should be in place no later than mid-year at the latest.

Here’s a synopsis of the changes to HUD’s guidelines:

Continue Reading New HUD Guidance for Property Flippers and First Time Buyers

Tags: FHA, HUD, mortgages, real estate

For buyers or investors looking to purchase a short sale property using FHA financing, HUD has put in place some tough guidelines going forward into the New Year. A letter sent to FHA lenders by Commissioner David Stevens last week spelled out the agency’s revised policy regarding short sales. HUD made it quite clear they are not going to tolerate individuals trying to “take advantage of declining market conditions” on principal residences or simply “renting out their current house” in order to buy another property that is a lower priced short sale.

Here’s a summary of the latest guidance:

• Applicants for new FHA insured mortgages will be denied new financing – effective immediately – if they participated in a short sale on their current principal residence.

Continue Reading New HUD Guidance for FHA Loans and Short Sales

Tags: FHA, HUD, mortgages, real estate