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 23, 2024

Planning & Saving For Your FHA Loan

By Joe Wallace

House hunters need to save cash when planning to buy a house in the new year. Some things have always been on the list but have, in more recent times, become more important to consider while in planning mode. FHA Home Loan Down Payment Issues To Know The down payment issue is non-negotiable for typical FHA loans, money down is required. However, you might be surprised by your options when saving for it. You’ll need to save a MINIMUM 3.5% down payment, but in 2024, you may want to consider making a bigger down payment. It can help you save on interest rates over the loan term. There are variables, including whether or not you choose to finance closing costs, and those are factors to consider and ask the lender | more...

January 22, 2024

Getting A Better FHA Loan Interest Rate

By Joe Wallace

CBS News offers some advice to house hunters in 2024. Are you interested in buying a home with a lower interest rate? CBS has some advice for you, and as their published article reminds us, mortgage rates are falling in early 2024, but there are also ways to enhance your ability to get a lower rate. The CBS report dispenses some advice to help homeowners take advantage of existing options that can earn qualifying borrowers an even lower rate. But is the CBS advice sound? We examine their perspectives on getting a better rate on your home loan below. Shopping Around For A Lender CBS advice includes the idea that it’s best to shop around and find a lender offering the most competitive FHA loan rates and terms. Consider shopping | more...

January 19, 2024

Who Qualifies For FHA Loans?

By Joe Wallace

Whether you’re interested in building a house from the ground up on your own lot or need a mobile home or condo unit, there is an FHA home loan for you. Who qualifies for these mortgages and why? FHA Loans For First-Time Home Buyers FHA mortgages are open to first-time homebuyers without perfect credit. You can apply for an FHA home loan even with past credit mistakes. The best thing to do is review your past credit and ensure your home loan application is turned in once you have a full year of on-time payments on your credit record. First-time borrowers should know an FHA mortgage, even an FHA One-Time Close construction loan is within their reach thanks to low 3.5% down payment requirements and the ability to get down | more...

January 17, 2024

FHA Home Loan Options In 2024: Build, Buy, Or Wait?

By Joe Wallace

2024 may be the year more people think about owning a home thanks to anticipated lower mortgage rates and more homes for sale. Which option is best for you when finding a new place to live? There’s no one-size-fits-all answer, but some options are more tempting than others. Renting Options If You Aren’t Ready Yet Renting in 2024 may be an option to consider IF you are not quite ready to commit to a home. Borrowers sometimes underestimate how long it takes to get fully ready for a mortgage and if you are just now exploring your credit, lender options, and saving up for the down payment. However, some market watchers believe rental inventory may be lower this year, and there could be more competition for rental properties overall. Are | more...

January 16, 2024

The Rent Versus Buy Question In 2024

By Joe Wallace

Do you look at today’s mortgage rates, the housing market, and current economic headlines and wonder why you should consider purchasing a home in the new year? You aren’t alone. There are several economic factors at work in the American housing market. In 2024, one of those factors has to do with the difference between the cost of renting compared to owning a home. That gap has always been there in one degree or another. However, in the year 2024, that gap seems more attention-worthy. Especially for anyone struggling to decide which makes more sense, renting or owning a home. Compare The Numbers Forbes.com notes that home loan interest rates and home loan prices changed so much in the previous year that there seems to be a widening gap between | more...

January 12, 2024

FHA Loan Rules For Eligible Property Types

By Joe Wallace

FHA loan rules are found in HUD 4000.1, the FHA Single-Family Lender’s Handbook. Those rules include a list of property types you can and cannot buy with an FHA home loan. We examine the types of properties you cannot purchase with an FHA mortgage below. Knowing loan program rules is important if you’re a new house hunter. Do you need a government-backed loan like an FHA 203(b) purchase loan? Or a VA home loan? It’s true that certain restrictions and requirements for conventional home loans are different than the ones for FHA mortgages, but the gist is that house hunters need to know the rules of the home loan they want. For example, do you want to build a home using a One-Time Close construction loan? You may be limited | more...

January 9, 2024

Remodeling Options With An FHA Loan in 2024

By Joe Wallace

The FHA 203(k) rehabilitation mortgage is a type of FHA loan you can use to buy and renovate a home, or refinance an existing mortgage and improve the property at the same time. Buy Or Refi? Do you want to buy a fixer-upper home with an FHA 203(k)? Do you need to refinance your existing mortgage and renovate? These are both possible. The options for 203(k) refinancing also include the ability to refinance a non-FHA mortgage into an FHA loan, and you also have the ability to finance certain closing costs. The FHA 203(k) purchase loan offers borrowers a chance to buy a house that would normally not pass an FHA appraisal. Under the FHA rehab loan program, you can hire builders to do renovations to bring the house up | more...

January 8, 2024

Buying Your First Home With An FHA Mortgage

By Joe Wallace

What can a new borrower expect from the home loan process? There is a learning curve to think about, especially for borrowers unfamiliar with loan terms and industry jargon. Some of these loan terms and issues may not be immediately apparent (see below), but as you learn about the home loan process, they become more easy to understand and more important to know. Here are some of the issues you need to keep in mind as you start your home buying journey. Appraisal Versus Inspection First-time home buyers soon learn, one way or the other, that lenders and other industry professionals sometimes use “appraisal” and “inspection” interchangeably. Borrowers should expect to pay for each of these. Don’t skip the inspection no matter how insistent the seller is that the appraisal | more...

January 3, 2024

Buying An Older Home With An FHA Loan

By Joe Wallace

FHA home loans come with a myth or two. For example, the notion that only first-time home buyers can get an FHA loan. That is a myth. Also NOT TRUE? The idea that a house can’t be past a certain age to qualify. This myth isn’t as widespread as the first-time home buyer one, but the fact is, only SOME property types have a specific age requirement Manufactured homes have a specific age requirement other FHA loans don’t carry. An FHA-eligible mobile home or manufactured housing must be built after June 15, 1976 or it cannot be purchased with an FHA mortgage. Existing construction properties under the FHA single-family home loan program don’t have that age issue. Age or Remaining Life? The FHA lender’s handbook specifies that all houses purchased | more...

January 2, 2024

FHA Refinance Options For 2024

By Joe Wallace

Many expect home loan rates to start falling in 2024. Some potential FHA loan applicants want to know what kinds of refinance opportunities wait for them as the housing market recovery gets underway, however slowly. We explore some of the options below. FHA Refinance Loan Options You have multiple choices when it comes to FHA single-family home loan refinance options. They include FHA cash-out refinancing, FHA streamlines refinance loans, and no-cash-out FHA refinances loans. You can refinance an existing property with an FHA 203(k) rehab loan that lets you refinance and renovate simultaneously as an alternative option. Streamline Refinance Loan Option In Early 2024 Mortgage loan interest rates are too high at press time to consider using an FHA streamline refinance option. FHA streamline refi loans are for those who | more...