HUD Decreases FHA Loan Maximum Limits

If you are looking to get and FHA-insured loan for a higher-priced purchase in 2014, you may be out of luck.  HUD has announced new maximum limits for the 2014 calendar year.  The maximum FHA-insured mortgage loan in 2014 will be $625,500.  That's nearly a 15% decrease from the amount currently allowed, $729,750.  650 counties throughout the country will be affected.  Standard streamline refinances that meet all of the other requirements will not be affected by this decrease. 

New Online Tool to Help Find Housing Counseling Services

Last month, the Consumer Financial Protection Bureau announced a new tool to assist homeowners in anticipation of the new mortgage rules taking effect in January 2014.  The purpose of the tool, which can be accessed here, is to connect homeowners with local housing counseling agencies.  Effective January 10, 2014, mortgage lenders will be required to give mortgage applicants a list of housing counseling agencies.  In case they do not have their own lists available by that time, they can use the tool provided by CFPB.

The new online tool will help homeowners and home buyers find the closest HUD-approved counseling agencies.  It will also list the languages spoken at each agency, as well as list the specific services available there. 

FHA Requires Lenders to Self-Report

Lenders who are FHA-approved and lend on single-family property now face a new set of reporting requirements.  Effective last month, lenders must report "material findings" of suspected fraud or material misrepresentation, discovered through the lender's quality control process, directly to the Federal Housing Administration.  The lender must also disclose what the lender is doing to resolve the issue.  Any issues that have already been resolved need not be reported.

So, what's a "material finding"?  A material finding is any finding that would have caused the lender to disapprove the loan or not request an FHA endorsement had the lender discovered the material finding before the loan was approved.  For example, if the borrower would not have qualified under FHA guidelines but was approved anyway because of the lender's failure to verify his eligibility, income, employment, credit, or the appraisal of the house, that would constitute a "material finding".  If the home the borrower purchased was not repaired to FHA standards even though the appraisal noted significant deficiencies, that would be a "material finding" as well.

If lenders fail to report such material findings to the FHA, they are subject to administrative action.

Alternative Energy Tax Credits Available Through 2016

If you are making, or thinking about making, certain large-scale alternative-energy improvements to your home, there's good news for you.  You can get a tax credit for 30% of the cost of these improvements.  And you have plenty of time to make the improvements too -- all the way through 2016.  There is no limit on the tax credit for these improvements, except that they cannot exceed 30% of the cost of labor and installation.

To qualify, you must install certain types of equipment, such as solar panels, solar water heaters, wind-energy systems, fuel cells or geothermal heat pumps.  More information is available on the IRS' web site.

If you're not making such large changes to improve your home's energy efficiency, you may still qualify for certain tax credits for 2013.  Click here for more information.