Renovation Financing: Key Changes to FHA’s 203(k) Program

Housing Hub

Last month, the U.S. Department of Housing and Urban Development (HUD) announced long-awaited updates to the Federal Housing Administration’s (FHA) 203(k) Rehabilitation Mortgage Insurance Program. As an industry stakeholder, NAHREP has advocated for updates to this program, including raising repair limits and making the program more accessible in today’s housing market. Now that these updates have been released, we are excited to dive into the program details, including the key changes and what you need to know if you want to get more involved in expanding access to the program.

FHA announces borrowers are now eligible for private flood insurance

NAC

Last month, the U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), announced homeowners with FHA-insured mortgages are now eligible to purchase flood insurance on the private market. Previously, only flood insurance obtained through the National Flood Insurance Program (NFIP) was allowed, limiting choices for consumers. The rule change comes after years of advocacy on behalf of FHA borrowers, many of whom were required to purchase policies that were either more expensive or had less coverage than what they would have been able to obtain on the private market.

NAHREP urges HUD to decrease FHA Mortgage Insurance Premium and end the life of loan provision

NAC

Last month, NAHREP joined the National Housing Resource Center and other housing advocates signed a letter asking HUD to lower the FHA Mortgage Insurance Premium by 25 to 35 basis points and end the life of loan requirement on the FHA Mortgage Insurance Premiums. These changes would make FHA-insured mortgages more affordable for homebuyers at the point of sale and reduce monthly payments in the long term. As the U.S. is currently facing rising interest rates and record low housing affordability, now is a critical time to act on these initiatives.

NAC Blog: First-time homebuyers can use positive rental payment history to qualify for FHA-issued mortgages

NAC

In some good news, late last month, the Federal Housing Administration (FHA) announced that it will allow first-time homebuyers to use positive rental payment history in their credit assessment to see if they are eligible for an FHA mortgage product. Positive rental payment history includes rental payments made on-time during the last twelve months. Adding this rental payment history criteria would allow first-time homebuyers who lack or have a lower credit score greater access to homeownership.

NAC Blog: Forbearance has ended, will there be an influx of inventory?

NAC

Did you know that as of September 30 2021, the 1 million + individuals who participated in the COVID-related forbearance programs have started to reach their 18-month cap? There is a huge role for all of us to play here, not only because we need to ensure that we protect the wealth Latinos have created through homeownership over the past few years, but because we should always seek to be a part of the solution. Many Latinos will be confused over what happens next. We need to educate ourselves first so that we can be the best source of information for our clients. But aside from that, we might just have an uptick of inventory this Fall as a result of forbearance expiring and we have to be ready for that.

NAC Blog: Today we celebrate our Dreamers

NAC

Stories are a critical vehicle for human connection. They are powerful mostly because they make us feel something. Storytelling is an especially powerful tool in advocacy because stories have the ability to put a human emotion and a human face to laws and regulations. As the subject of DACA once again takes center stage, I thought of a young man who embodies the most beautiful aspects of the American Dream.

NAC Blog:The Latest from FHA and FHFA

NAC

Como están? Hope everyone is making their plans to meet up in Washington D.C. next month! I was just there last week for meetings with the Federal Housing Administration (FHA) and Federal Housing Finance Agency (FHFA), to discuss some of the issues I’ve heard from many of you that are impacting prospective Latino homebuyers.

NAC Blog: Que onda mi gente?

NAC

Hope everyone got up today with a smile, brewed your cafecito (with foam), and blasted your favorite song to get your day going. I don’t know about you but my favorite song to either get to dancing or to completely transform my mood is “La Bicicleta” by Shakira. There’s something about the vallenato in that song that fills my soul like my mom’s “sopita de fideo.” Maybe I was Colombian in another life.