Beginning Jan. 10, 2014, mortgages backed by the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) will have a few more qualifying requirements.
Earlier this week HUD released its final rules on what constitutes a “qualified mortgage” including:
- Require periodic payments without risky features;
- Have terms not to exceed 30 years;
- Limit upfront points and fees to no more than three percent with adjustments to facilitate smaller loans (except for Title I, Title II Manufactured Housing, Section 184,Section 184A loans and others as detailed below); and
- Be insured or guaranteed by FHA or HUD.
In other headlines:
Fannie, Freddie suspend evictions for holidays – Chicago Tribune