The Real Deal New York

Posts Tagged ‘Federal Housing Administration’

  • Student debt can put a house out of reach

    September 18, 2015 12:45PM
    Ken Harney

    Kenneth Harney

    Heads up for millennials and first-time home shoppers carrying student debt: New rules could make it tougher to qualify for a low down payment Federal Housing Administration (FHA) mortgage. New rules on down payment gifts could complicate things for you as well.

    The net effect of the changes, say mortgage lenders and analysts, will be to make FHA loans, which traditionally have been the go-to financing source for young, first-time and moderate-income purchasers, less attractive. [more]

  • Rental fees

    From left: 505 West 47th Street and 555 West 23rd Street

    In a city where landing the right rental apartment is celebrated like the birth of a child, brokers and tenants are aware that landlords hold all the cards, and have become used to paying a multitude of fees. [more]

  • FHA

    From left: Reza Jahangiri and Maggie O’Connell

    Interested in a reverse mortgage without a lot of hassles? Better get your application in fast. As of April 27, the federal government is imposing a series of extensive “financial assessment” tests that will make applying for a reverse mortgage tougher — much like applying for a standard home mortgage.

    Reverse mortgages always have been different: They’re available only to seniors 62 and older who have equity in their homes that they want to convert into cash. There are no repayments required until the borrower sells the house, moves out or dies. [more]

  • US requirements for mortgages are easing

    February 20, 2015 11:39AM

    From left: Brad Blackwell and Mike Fratantoni

    A closely watched index that tracks mortgage credit availability — lender requirements on credit scores, down payments and other key loan terms — has some good news for potential homebuyers: Things are finally loosening up.

    After years of progressively tighter rules on borrower eligibility in the wake of the housing bust, banks and mortgage companies have begun modestly easing their requirements and even expanding the types of mortgages they offer. [more]

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  • Tighter standards on US reverse mortgages

    November 21, 2014 12:55PM

    Henry “Fonzie” Winkler and reverse mortgages

    Are reverse mortgages headed in reverse? Based on forthcoming federal rule changes for seniors who expect to apply for one, you might think so. But as a taxpayer, you might say, bravo: Toughening up qualification standards — including such basics as checking applicants’ credit, income and cash flows — is a leap forward, long overdue. [more]

  • The verdict was nearly unanimous at a recent hearing on Capitol Hill: The new federal “ability to repay” and “qualified mortgage” regulations that took effect Jan. 10 will make obtaining credit tougher, not easier, this year, and potentially force large numbers of credit-worthy homebuyers to defer or cancel their plans. [more]

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  • fha_tighter_lending_graphic_elert.jpg

    Mortgages insured by the Federal Housing Administration are often the only port of call for borrowers who can’t afford a hefty down payment, but critics say that the FHA mortgages come with high premiums that exploit these borrowers.

    If the economy were to slide back into a recession, said Edward Pinto, a fellow of the American Enterprise Institute, the majority of FHA loans would be at high risk of default. And since the FHA prices all the loans equally, borrowers have no barometer to gauge the relative riskiness of their loans. [more]

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  • Congressman Jeb Hensarling

    Jeb Hensarling

    For the first time in its nearly 80-year history, the Federal Housing Administration will need a taxpayer subsidy, after it failed to make up for losses on loans it backed during the housing bubble. The government mortgage insurer will draw money from the U.S. Treasury to buttress its insurance fund by the end of this month. Budget officials are currently working to figure out how much of a cash infusion the FHA will need. [more]