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.

Connect with Joe:

August 25, 2023

Are You Ready To Close Your FHA Home Loan?

By Joe Wallace

Do you know about the issues that can interfere with your closing day? It does not matter whether you were approved for a conventional, FHA, USDA, or VA mortgage. Some issues are common no matter which loan option you choose. FHA Down Payment Issues Once you have saved the money for your down payment, you are ready to close, or at least that’s what some might be tempted to think. But a key part of the closing process is knowing how that down payment must be paid. Typically you cannot use checks, credit cards, ATM cards, or cash. Borrowers must arrange a wire transfer or a cashier’s check to make the down payment. Discrepancies In Your Closing Disclosure Contact the lender immediately if you find errors or discrepancies in your | more...

August 24, 2023

When It’s Time To Close Your FHA Loan

By Joe Wallace

First-time home buyers and those who haven’t purchased real estate in a while can greatly benefit from using a closing checklist. The Consumer Financial Protection Bureau (CFPB) offers a sample closing checklist you can use to help you remember the essential details you’ll need to address on closing day. It’s easy to overlook an important detail or two as you approach closing day. There is a lot to remember! As the CFPB reminds, a closing checklist can help you keep all those details in one place to keep all your obligations for closing day centralized and at your fingertips. First Things First Your closing checklist should tell you who’s conducting your closing procedure, where that process should happen, and when it is scheduled. How much do you need to pay | more...

August 21, 2023

Buying A Home In Today’s Market

By Joe Wallace

In August of 2023, many news outlets reported a competitive American housing market with high demand and low inventory still influencing the market. Low inventory today could be partly the result of many house hunters purchasing homes while home loan interest rates were low and hanging onto the property for the long haul. There are other factors, but for most home buyers, a central issue is today’s high interest rates and how much that will affect the overall cost of the loan. What do you need to know about home buying in today’s housing market? Refinancing When Rates Fall Do you need to buy now? If you cannot wait to purchase property and aren’t inclined to sell or get a cash out refinance option, there are other ways to reduce | more...

August 18, 2023

What To Ask An FHA Lender

By Joe Wallace

First-time home buyers examining their FHA home loan options might wonder where to start when it is time to shop around for the right lender. Here are some important questions to ask when you compare banks and home loan options. What Are My Home Buying Options? Approved Property Types Are you looking for a unique type of home like a tiny house? If you seek an unusual property type you’ll need to see whether such a home is approved or acceptable to the lender. Some financial institutions won’t issue loans on unconventional property types, others may have caveats to know before you agree. In general, FHA mortgages are better for more conventional housing types such as condos, townhomes, and manufactured houses. You will have a better chance of finding a | more...

August 17, 2023

FHA Loan Downpayments: What To Know

By Joe Wallace

What do you need to know about the down payment requirements for an FHA home loan? Some of the requirements are simple, but some need a bit of explanation. When you begin saving a downpayment for your home loan, you’ll want to remember the tips provided below. Your Down Payment Is A Separate Expense The amount of your 3.5% FHA loan payment is not affected by what you pay for closing costs and mortgage insurance. None of those expenses count toward your down payment. FHA loan down payments are considered separate. Paying cash upfront for FHA mortgage insurance never results in a dollar-for-dollar reduction in the down payment requirement. Some Are Required To Make A Bigger Down Payment Some FHA borrowers make only the minimum required FHA loan down payment | more...

August 15, 2023

FHA Loan Policies: Interest Rates

By Joe Wallace

When you apply for an FHA loan, one of the most important questions to ask is about interest rates. You want to know how much, over how long, and what options are open to you in terms of fixed or adjustable-rate mortgages. FHA loan rules printed in the FHA Single-Family Lender’s Handbook include a section about interest rates. While the FHA does not set or regulate the interest rates on FHA mortgages. That’s between the lender and the borrower. FHA rules do require the rates to be customary and reasonable but the rulebook does NOT list numbers. FHA loan interest rate policy is basically a hands-off policy. FHA loan rules say that typically under “all currently active FHA single-family mortgage insurance programs,” the borrower and the lender negotiate the interest | more...

August 14, 2023

FHA Loans For Homes Damaged In Natural Disasters

By Joe Wallace

Was your home damaged or destroyed by flooding, mudslides, or coastal erosion? Was it in the path of a wildfire? In 2023, more American homeowners have been affected by these issues, and many find themselves wondering what to do in the wake of the damage. If you have an FHA home loan and your property is damaged or destroyed by a natural disaster, you need to remember some important issues when you begin to plan to repair or replace your home. Stay In Touch With Your Lender Contact your participating FHA lender immediately. Do not delay when you need to discuss FHA options for loan forbearance, modification, or other alternatives. Don’t Rush Into An Insurance Settlement Is an agent trying to get you to hurry up and sign a settlement | more...

August 11, 2023

FHA Loan Rules For Borrowers With Non-Traditional Credit

By Joe Wallace

FHA loans have flexible standards regarding the kinds of credit history a borrower brings to the loan application process. By that, we mean that applicants who have non-traditional or even insufficient credit history may be able to get a loan approved depending on the circumstances. Getting a loan with insufficient credit history is harder, but borrowers can call the FHA at 1-800 CALL FHA to get a referral to a local housing counselor who can provide advice. Applying For An FHA Loan With Non-Traditional Credit Borrowers with non-traditional credit or insufficient credit history may be asked to provide additional documentation and paperwork as part of this process. You could be required to furnish tax documents, utility bills, and/or any other recurring payment that could help establish credit history. FHA loan | more...

August 10, 2023

How Long Does It Take To Refinance Into A Lower Mortgage Rate?

By Joe Wallace

In an age of high mortgage loan interest rates, some borrowers don’t have a choice. They have to buy soon and can’t afford to wait out the housing market. Some of these borrowers purchase a home with the goal of refinancing as soon as the rates fall to a better place. At press time in 2023, those rates have NOT fallen to a better place, buying now and refinancing later is an option getting more popular by the day, or so it seems. Planning Ahead Is Key Borrowers approved for FHA mortgages at the higher interest rates available at press time are wise to consider a refinance loan once home loan interest rates have fallen again but they aren’t always sure what the best options are. And more importantly to | more...

August 8, 2023

FHA Minimum Standards Vs. Lender Standards

By Joe Wallace

A frequently asked question about FHA home loan credit score requirements goes like this: “I recently applied for a mortgage loan, and my FICO scores are above 580, which FHA loan rules say is the score you need for the lowest down payment. But my lender wants a higher score for the lowest down payment. What’s going on? Who is right?” The most important thing to remember about the FICO score issue is that FHA minimum standards don’t always match the lender’s requirements. The lender is permitted a higher requirement as long as those requirements are deemed “reasonable and customary” for similar mortgages. FHA minimum standards are just that–minimums. A lender is free to require a higher credit score or look for better debt-to-income ratios, etc., as required by the | more...