New HUD Reforms to Help Home Buyers

New HUD Reforms to Help Home Buyers
New HUD Reforms to Help Home Buyers

For the first time in more than 30 years, the U.S. Department of Housing and Urban Development issued mortgage reforms that will help home buyers shop for the lowest cost mortgage. This reform will also help home buyers avoid costly and potentially harmful loan offers.

HUD will require that lenders and mortgage brokers provide home buyers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save home buyers nearly $700 at the closing table.

You should know: A lender gets Direct Endorsement from FHA which authorizes them underwrite FHA loans. Some lenders do not have Direct Endorsement from FHA. My advice, always look for a referral first, ask someone you trust to give you the name of a good loan officer. When you speak to that loan officer, ask them if their company has Direct Endorsement from FHA to underwrite FHA loans.

I refer Phaedra Wilson to all of my clients; she is with Sunstreet Mortgage who does have Direct Endorsement from FHA. Phaedra is honest, very friendly and one of the best loan officers in Tucson.