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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September 19, 2023

How Much FHA Loan Do You Need?

By Joe Wallace

How much can you borrow with an FHA mortgage? If you are looking at FHA loan limits as a new home buyer, it’s easy to assume those numbers represent the total amount that the lender will offer once the loan application is approved. But should you expect to borrow that maximum loan amount? FHA Loan Limits 101 FHA loan limits vary. They are not identical for all housing markets or housing sizes. There is a maximum loan amount for high-cost counties, FHA loan limits are higher for multi-unit homes, and there is a lower FHA loan limit in areas that don’t cost as much as the most expensive housing markets. What To Know About FHA Loan Limits FHA loan limits have a maximum or “ceiling” for high-cost housing markets and | more...

September 13, 2023

Tips You Should Know About FHA Loan Down Payments

By Joe Wallace

Down payment issues may vary depending on the home loan you select, whether it is an FHA loan, a VA mortgage, or a USDA construction loan, but some things are common for all mortgages where down payment money goes. Do You Need A Down Payment Gift? Get It In Writing A participating FHA lender can accept down payment gift funds from a variety of sources. The money can come from family, friends, and employers. But these gift-givers must also provide a letter detailing where the cash comes from and that it does not come from unapproved sources, which we will explore below. The down payment gift letter must explain where the money is from, such as cash saved at home, investments that have been cashed in for the gift, or | more...

September 12, 2023

Do You Want To Buy A House This Year?

By Joe Wallace

Do you want to buy a house this year? There is still time in 2023 to take advantage of the lower FHA loan limits set at the beginning of the new year. There are also things you should do to prepare for the loan, and it’s a very good idea to give yourself extra time to get it all done. It’s best to come to the application process with the following steps already accomplished. Check Your Credit Report Start reviewing your FICO scores and details to make sure there are no errors, identity theft, outdated information, etc. You are legally entitled to a free credit report. Contact Experian, Equifax, and TransUnion to learn more about contesting errors or other issues on your credit reports. Use A Mortgage Calculator An online | more...

September 11, 2023

Things You Can Do With An FHA Mortgage

By Joe Wallace

What can you buy with an FHA mortgage? First-time home buyers and experienced home buyers who have never used an FHA mortgage sometimes wonder whether they can use an FHA loan to buy certain property types. We examine some of these issues below. Remember that state law, local ordinances, and FHA loan rules may change over time, it’s best to reexamine the rules before you start your house-hunting phase of the journey. Use An FHA Loan To Buy A Multi-Unit House One permitted use of an FHA home loan program is buying a multi-unit property. You can use an FHA mortgage to buy a house with as many as four living units. Use An FHA Loan To Buy A Multi-Unit Rental Property This is allowed by FHA loan rules. The | more...

September 8, 2023

Buying A Home With A Refinance Strategy

By Joe Wallace

For some, buying a home in 2023 is a bad idea. At least, that is the impression some get when looking at today’s high interest rates in the third quarter of the year. Some compare these numbers to the rates available a year or two ago and wonder why they should consider buying a house in today’s market. Saying no to an FHA home loan in these circumstances could be the right answer for those without a refinance strategy to help them get out of today’s higher rates as soon as lower interest rates are offered consistently. But what about those who think long-term and have a strategy to refinance their home loan as soon as it’s feasible? FHA Loans And Housing Market Competition Major news outlets reported mortgage loan | more...

September 7, 2023

Preparing For An FHA Home Loan

By Joe Wallace

We get a lot of questions about preparing for an FHA loan. Some of the most popular topics? Credit scores, what it takes to get loan approval, and whether it’s good to wait out the current high interest rates we are experiencing at press time in the fall of 2023. There are many sources of credit advice, especially advice on how to prepare your credit ahead of a major application like an FHA mortgage. But what do the credit agencies themselves say about how to become more creditworthy ahead of a home loan application? How should you prepare? Improve Your Chances At Home Loan Approval There is some interesting advice from one of the “big three” credit reporting agencies, Experian. That credit agency recommends you start as early as possible, | more...

September 5, 2023

FHA Home Loans And High Interest Rates

By Joe Wallace

Interest rates on FHA home loans, VA mortgages, and conventional equivalents are higher in 2023. Consider the rates listed in the first five days of September, when the numbers reflected rates between 6% and 7.6%. Those numbers are a serious increase from the record-setting interest rate days of 2020. Looking at just one day, 16 September 2020, we learn home loan interest rates were listed below 3% for qualified applicants. Despite the higher numbers we see in the fall of 2023, some borrowers will not wait for rates to come down. Instead, these borrowers are applying, getting approved, and buying now regardless of rates. Why do some choose to buy now? Are they taking foolish risks with their money? Not in all cases. Some borrowers enter the house-hunting process with | more...

September 1, 2023

How Much Should I Save For My FHA Loan Down Payment?

By Joe Wallace

How much money should a home buyer save for a down payment? The answer can’t be given in dollars and cents because the amount of your down payment depends on the purchase price of the home in part, you’ll need to know the sale price before you can calculate the down payment amount. The percentage of the down payment (based on the price of the home) depends on the type of home loan you want, whether you want to avoid mortgage insurance, and whether your FICO scores are high enough to qualify for the lowest down payment. Some down payment percentages are higher than others for various reasons including risk to the lender in some cases. Down Payments For VA Mortgages VA loans offer a no-money-down option, but there is a | more...

August 29, 2023

Asking Your Lender For A Better Interest Rate

By Joe Wallace

Mortgage rates are hovering in the 7% range, and there’s no end in sight (at least in 2023) to the higher interest rates reported at the time of this writing. What is a borrower to do when faced with higher rates and the need to purchase a home? There are ways you can get a lower mortgage rate, including buying discount points (used to reduce the mortgage loan rate), improving your FICO scores ahead of your loan application, and considering an adjustable rate mortgage. But there’s another way you can get a lower rate. It’s a twofold process. You must shop aggressively for the lender who offers you the lowest rate, and then when the lender informs you what that rate might be, ask what steps might be taken to | more...

August 28, 2023

How Much Is Your Monthly FHA Mortgage Payment?

By Joe Wallace

When you enter the planning stages for a new home loan, you’ll want to know how to budget for the expenses of your mortgage such as the appraisal fee, down payment, home inspection, etc. But you will also want to know about the monthly mortgage payment–how much it could be, how you need to adjust your personal finances to accommodate the new loan, etc. That’s why one of the most important questions a home loan applicant can ask in the planning stages is, “How much will my monthly mortgage payment be?” It’s easy to assume this is a simple calculation of how much the loan is, divided by how many months the mortgage loan payments are required. But is it REALLY that simple? The truth is that it’s more complex | more...