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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August 19, 2024

FHA Loan Down Payment Rules

By Joe Wallace

One of the biggest worries for some borrowers interested in buying or building a home? The down payment. At the time of this writing, there are not many zero-down payment mortgages offered nationally by participating lenders offering government-backed mortgages; they include VA mortgages and certain USDA single-family home loans. USDA home loans are need-based mortgages with income caps and purchase price limits; VA mortgages are only for those with qualifying military service and certain surviving spouses of those who have died due to military service. There is no need-based requirement for FHA mortgages, and you do not have to be a veteran or a first-time home buyer to apply for one. FHA loans are offered to all who financially qualify, with no income limits. FHA down payment rules include a | more...

August 15, 2024

Fixing Credit Before Buying A Home

By Joe Wallace

When preparing to buy a house, it’s essential to give yourself plenty of time to improve your FICO scores and ensure a strong history of on-time payments before applying for a mortgage. However, there are other crucial aspects of credit repair to consider. To begin a credit repair journey, it helps to understand how credit reporting procedures work. Credit reports, which are compiled by major credit bureaus like Equifax, Experian, and TransUnion, contain comprehensive records of your credit history. This includes your private data, such as your current and former addresses, Social Security Number, and information on your credit accounts. There may also be information in your credit file from public records. Do you have a bankruptcy in your past? That will show up on your report along with any | more...

August 13, 2024

FHA Refinance Options: No Cash Out

By Joe Wallace

FHA “no cash-out” refinance options can help first-time home buyers and experienced homeowners alike. If you need to explore your options to lower interest rates, shorten a loan term, or switch to a fixed-rate mortgage, consider the options discussed below. FHA No-Cash-Out Refinancing The FHA no-cash-out refinancing option is right when you want to modify the terms of your existing loan without getting cash at closing. Refinancing into a fixed-rate, no-cash-out FHA loan is suitable for many when interest rates are at or below the rates the borrower initially qualified for. Refinancing into a fixed-rate loan from an adjustable-rate mortgage can make for a more predictable loan, even if the rate isn’t as competitive as you might like. Having a rate that will not change or will not change again | more...

August 12, 2024

Reverse Mortgages: HECM and Non-FHA Options

By Joe Wallace

Reverse mortgages have become increasingly popular as a retirement financial planning tool. They give homeowners a way to access their home equity without having to make monthly payments, and that equity can come as a lump sum of cash or installment payments, or via a line of credit. Some disbursement options may be open to all applicants, others may depend on circumstnaces. When looking into reverse mortgage options, you will come across two main types: FHA reverse mortgages, also known as Home Equity Conversion Mortgages, and non-FHA reverse mortgage options offered by conventional lenders. The FHA HECM is a reverse mortgage with a government guarantee. That government backing provides the lender with some protection in the event of loan default, making it easier for the lender to approve the loan. | more...

August 8, 2024

Is There A Time Limit On FHA Loan Applications?

By Joe Wallace

When FHA loan applicants work on getting a mortgage and closing the deal, sometimes things don’t always go as smoothly or as quickly as planned. In cases where there is a delay for some reason, do FHA loan rules include built-in time limits on how long a borrower and seller can go between loan approval and closing? While a casual glance at the FHA loan rules may not turn up a specific rule that says “FHA loans must be closed in X number of days,” there are several requirements that add up to the need to get an FHA loan accomplished in a timely manner. One is the length of your interest rate lock-in period. Once it expires, you and the lender may need to renegotiate the rate, so it’s | more...

August 7, 2024

Qualifying For FHA Loans and VA Mortgages

By Joe Wallace

When applying for a government-backed home loan like a VA or FHA mortgage, it’s important to know how your credit issues may affect your ability to be approved for a residential mortgage loan. Knowing which potential credit problems you may need to correct (as early in your house-hunting journey as you can) can greatly benefit you before loan application time. Some borrowers don’t believe they have credit issues. However, they sometimes change their minds after reviewing credit reports due to errors, items that should have fallen off the report ages ago, and evidence of identity theft. Credit problems such as undischarged bankruptcy, a recent foreclosure, or delinquency on federal debts might hurt your chances of securing an FHA or VA-backed mortgage. To be approved for a mortgage, expect to spend | more...

August 6, 2024

Credit Repair And FHA Mortgages

By Joe Wallace

Resolving outstanding debts and making timely payments can gradually boost your credit score. The Consumer Financial Protection Bureau recommends creating a budget and prioritizing debt repayment to regain financial stability. It’s also vital to monitor your credit reports aggressively at least 12 months before applying for a home loan. Knowing your rights when dealing with credit repair companies is essential. The Credit Repair Organizations Act (CROA) ensures transparency in credit repair services and prohibits deceptive practices. When it comes to home loans and your credit, lenders consider your FICO scores and review your payment history and overall credit record. It’s important to understand that FICO scores don’t necessarily reflect your entire credit story. To have a successful home loan application, maintain good payment habits for 12 months and avoid missed | more...

August 5, 2024

The Myth Of The No Money Down FHA Loan

By Joe Wallace

Many readers want to know if there are any “fair credit” and “no money down” loans for FHA borrowers. While such options may exist in loan programs offered by other agencies, the FHA Single Family Home Loan program does not have a “zero down” option or a “fair credit” home loan. FHA mortgage loans for new purchases require a minimum of 3.5% down, which must come from approved sources that have to be verified by the lender. Some borrowers may be confused by the Department of Veterans Affairs and its VA home loan program. VA Zero-Down Mortgages VA loans feature a no-money-down option, but these loans are only available to qualified borrowers who have served a minimum time in the armed services. FHA loans don’t have this option. Both programs | more...

August 1, 2024

Comparing Conventional Reverse Mortgages To FHA HECMs

By Joe Wallace

A reverse mortgage is a refinance option for homeowners 62 or older who want to tap into their home equity. These loans are designed for senior homeowners who own their homes outright or are close to doing so. There are FHA reverse mortgages and conventional equivalents. Some borrowers are right for a conventional option, while others should consider the FHA HECM. Traditional mortgages require monthly payments to a lender. In contrast, reverse mortgages allow senior homeowners to borrow money secured by the equity in their home. These loans offer cash back to the borrower in a variety of options, including a lump sum, monthly payments, or a line of credit. Typically, repayment is not required during the borrower’s lifetime unless the home is sold or no longer used as the | more...

July 31, 2024

Post-Disaster FHA Loan Options

By Joe Wallace

In 2024, the United States experienced a series of severe storms, floods, fires, and natural disasters, leading to devastation. But some affected regions, particularly in Maui County, Hawaii where wildfires caused significant damage, were damaged last year but still need federal help. In response, the Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD) extended disaster relief options originally implemented in 2023 for Maui County. These included the extension of the FHA’s foreclosure moratorium program and other forms of assistance in late summer 2024. And other homeowners across the nation may also be affected by their own federal disaster area. If you are a homeowner with damage to a home purchased with an FHA mortgage and live in a federal disaster area, the information below can | more...