Articles by: Joe Wallace

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.

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January 13, 2025

FHA Home Loans: How Much Income Do You Need To Qualify?

By Joe Wallace

Many future homeowners want to know about the income requirements for an FHA loan–are you worried that you won’t qualify for an FHA mortgage because you don’t earn enough each month? And then there’s the opposite problem–a misconception that you can earn “too much” to qualify for an FHA mortgage as though this program had income limits. FHA loans do NOT feature income limits and this program does not require you to qualify based on financial need. FHA Loans Are For All Financially Qualified Applicants There is no minimum income requirement for an FHA mortgage, and there is no upper limit or income “ceiling”. FHA loans are not targeted for any one income bracket. FHA loans are designed with more lenient FICO score minimums in mind, but that has nothing | more...

December 19, 2024

Bad Credit And FHA Home Loan Options

By Joe Wallace

The term “bad credit” tends to feel a bit stigmatizing. Borrowers who have had past difficulty with credit have it hard enough trying to recover from the stigma of their previous credit issues without being confronted by those problems every time they want to start working on their credit. Is there such a thing as a bad credit FHA loan that can help people become homeowners and get a fresh start with credit? Technically the answer is, “it depends”, which isn’t very reassuring. But the truth of the matter is, there are FHA standards that technically make the concept of a bad credit mortgage a reality. After all, on paper FHA loan rules state that a borrower with FICO scores in the 500 range could still technically qualify for an | more...

December 9, 2024

Higher FHA Loan Limits Coming in 2025

By Joe Wallace

Thinking about buying a home but worried you might not qualify for a loan? The Federal Housing Administration (FHA) is making changes in 2025 that could help make your homeownership dreams a reality. Bigger FHA Loan Limits in 2025 The FHA is increasing its loan limits for 2025. This means you can borrow more money to buy a home, which is great news in today’s market. What are the New Limits? For a typical single-family home in most parts of the U.S., the new loan limit is $524,225. But if you’re looking in a high-cost area, like California or the Northeast, the limit may go up to $1,209,750. And it’s not just for single-family homes! The FHA also has options if you’re interested in a duplex or other multi-unit property. | more...

December 5, 2024

FHA Refinance Loan Options

By Joe Wallace

No two refinance loan programs are exactly identical–depending on the program and the lender you may find terms and conditions vary. If you need to refinance in 2025, be sure to check the latest updates to the FHA refi programs offered, including loan limits and other variables that may change from year to year. You’ll want to know the most current qualifying requirements for certain refi loan options. For example, where FHA Home Equity Conversion Mortgages are concerned, there is a minimum age you must be (62 or older) to qualify. That is NOT true of FHA Cash-Out Refinancing or FHA Simple Refinance loans. What’s more, FHA refinance loans do not have the same terms and conditions. For example, depending on the participating lender, these refinance loans may allow you to | more...

December 4, 2024

Mistakes First-Time Homebuyers Make

By Joe Wallace

If you are a first-time homebuyer, there are some pitfalls and mistakes you should definitely try to avoid as you enter into the process of planning, saving, and applying for a loan to purchase a new home. If you are thinking of buying a new home in 2025 with higher FHA loan limits, consider the kinds of mistakes some new house hunters make before you commit. What kinds of mistakes do we mean? There is the usual Home Loans 101 type advice you read in every single finance blog ever written–don’t be careless with your credit, don’t apply for new credit while you are trying to apply for a home loan, and don’t start house hunting in earnest without home loan preapproval. But what about some of the less obvious | more...

November 18, 2024

Buy A Condo Unit With An FHA Mortgage

By Joe Wallace

The Federal Housing Administration (FHA) offers many loan programs to make homeownership accessible and affordable for a broader range of borrowers. While the FHA 203(b) loan is a popular choice for single-family homes, the FHA also provides options for those who want to buy condominiums, mobile homes, and fixer-uppers. For condominium buyers, FHA financing is available and those funds may be approved even if the condo project is not on the FHA approved list, depending on circumstances. If you’re interested in a condo in a project that isn’t currently FHA-approved, you can work with an FHA-approved lender to see about having the project added to the approved list. In some instances, if a condominium project isn’t FHA-approved, “single-unit approval” may be possible. This allows an individual unit within the complex | more...

November 13, 2024

FHA Loans and the Credit Check

By Joe Wallace

FHA loan rules in HUD 4000.1 give instructions to the lender on how to establish an FHA borrower’s creditworthiness. FHA loan rules tend to be more flexible on credit issues than their conventional equivalents, but borrowers are still required to financially qualify. Are you looking for a condo loan, a mobile home loan in 2025? There’s an FHA loan for that. Do you want to build a house on your own land with an FHA construction loan in the new year? Some don’t realize the credit requirements in the FHA Lender’s Handbook are identical. For construction loans, borrowers should expect slightly higher credit requirements from the lender. However, on paper, FHA loan rules make no distinction between different loan types and the minimum FICO score needed to qualify for maximum | more...

November 7, 2024

Will Your FHA Home Loan Be Approved?

By Joe Wallace

Will your FHA home loan be approved or denied? There are several reasons why your loan application could be turned down, and some of those reasons have more to do with the property than with the borrower’s credit history or FICO scores. And in some cases, getting turned down for a mortgage is the borrower’s fault due to credit history or FICO score issues. But what about when the borrower’s credit, employment, and other qualifying factors are acceptable to the lender, but the home loan application is turned down anyway? For some, it could be a question of the property’s condition, location, or type. Location Counts Some don’t realize at first that to be approved for an FHA residential home loan, the property cannot be situated within a specific range | more...

October 21, 2024

Are You Ready To Apply For An FHA Mortgage?

By Joe Wallace

How do you know you are ready to apply for an FHA home loan? And by that question, we mean sending the documents to the lender ready for the approval process. Being ready to submit your financial information and other documents for loan approval means having taken certain steps along the way in the planning and saving stages of your mortgage. To apply for an FHA home loan, you’ll want the following things in the list below, and keep in mind that these are needed before you send in your application: Making an offer on a home and having it accepted is the catalyst for getting the actual application paperwork into the system, but some borrowers pre-qualify for a loan before house hunting. That causes some confusion at times because | more...

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

October 3, 2024

How Much Do I Put Down On An FHA Home Loan?

By Joe Wallace

There are persistent myths and misunderstandings about home loans. One persistent myth is that FHA mortgages are only approved for first-time home buyers. Another is that FHA loans are only for low to moderate-income borrowers. And a third–and the focus of our article–is that you have to make a 20% down payment on a home loan. What’s the reality? FHA home loans do NOT require a 20% down payment, even if you are at the lower end of the qualifying credit score range. According to FHA loan rules, the most you are required to put down on an FHA mortgage (on paper, according to the FHA) is 10%. That is for borrowers who do not have FICO scores that qualify them for 3.5% down. So why do people think you | more...