Qualify for a Appraisal Exemption?

For the first time in 25 years, federal regulators are increasing the property value limit under which buyers of certain homes must obtain an appraisal as part of selling. Federal banking agencies have approved a plan enabling certain homes worth $400,000 or less to be subject to an evaluation rather than an appraisal.

For nearly a year, the Federal Deposit Insurance Corp., office of the comptroller of the currency, and board of governors of the Federal Reserve deliberated on the proposed rule change, reviewing hundreds of comments from the public. Regulators finally approved the rule last Friday. The new rule doesn’t apply to transactions in which the buyer is purchasing the home with financing wholly or partially insured by a government-run or government-sponsored agency, including the Federal Housing Administration, Department of Housing and Urban Development, Department of Veterans Affairs, Fannie Mae, and Freddie Mac. As a result, the majority of residential transactions in the U.S. will not be affected by this new rule.

Government shutdown “Won’t Shut Down FHA”

In what appears to be a reversal of an earlier position stated last week, the U.S. Department of Housing and Urban Development (HUD)’s Office of Single Family Housing will continue to endorse new loans “in order to support the health and stability of the U.S. mortgage market” should there be a lapse in appropriations, the agency said in its latest contingency plan.

“The single-family aspect of FHA is funded through multiyear appropriations,” a HUD spokesman told Inman News. Therefore, while there will be some reductions in staff and furloughs, that part of the FHA will be able to operate,  “at a slower pace,” he said.

More at: http://www.inman.com/2013/09/30/government-shutdown-wont-shut-down-fha/

HUD Grants to “Help Unemployed Stay in Homes”

The Department of Housing and Urban Development will offer interest-free loans to aid unemployed borrowers with their mortgage payments in 32 states through its Emergency Homeowners’ Loan Program.

Home owners who are eligible for the program will be able to qualify for up to $50,000 in interest-free loans for up to two years. Home owners who have had a drop in income of at least 15 percent from involuntary unemployment or underemployment due to economic conditions or a medical emergency are eligible for the program.

The program will “help families keep their homes while looking for work or recovering from illness,” says HUD Secretary Shaun Donovan. HUD is providing $1 billion to implement the program.

EHLP will help home owners in 32 participating states as well as Puerto Rico. For a full list of states and eligibility requirements, visit the HUD web site.

Source: “HUD: Help on the Way for Unemployed Home Owners,” AOL Real Estate (June 20, 2011) 

Other articles relating to the Sacramento and Placerville, California regions at: www.sierraproperties.com

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