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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April 29, 2022

True Or False? FHA Home Loan Issues You Should Know

By Joe Wallace

How much do you really know about the home loan process? If you are interested in buying a home with a low-down-payment FHA mortgage, there are a few things that are good to know before you start house hunting. True Or False? FHA Home Loans Are For First-Time Homebuyers Only False. It’s one of the most common persistent myths about FHA mortgages. True Or False? You Don’t Need A Down Payment With An FHA Home Loan False, but the down payment requirement for FHA mortgages is lower than some conventional equivalents. While it’s true that there are conventional mortgages that offer down payments in the three percent range similar to FHA home loans, you may find the FICO score requirements for these loans to be higher than the FHA minimum | more...

April 27, 2022

The End Of April Is The End Of Fair Housing Month 2022

By Joe Wallace

Saturday, April 30, 2022, is the last day of Fair Housing Month. But the advent of May doesn’t mean that the fight against housing discrimination comes to an end. The Department of Housing and Urban Development encourages all who may have experienced some form of discrimination in the housing process to come forward and report the incidents to the HUD Office of Housing and Equal Opportunity or FHEO. FHEO is responsible for enforcing the Fair Housing Act, but also the following laws that contribute to fair housing for all: Title VI of the Civil Rights Act of 1964 Section 109 of the Housing and Community Development Act of 1974 Section 504 of the Rehabilitation Act of 1973 Titles II and III of the Americans with Disabilities Act of 1990 The | more...

April 22, 2022

Employment And Income Verification For FHA Loans

By Joe Wallace

Here is a common variation on an FHA loan question we get frequently. “I have been employed for about two years, do I qualify for an FHA mortgage?” FHA loans require a variety of financial qualifications including FICO scores, your history of payments on financial obligations, your debt-to-income ratio, and other factors. Lender standards and FHA loan rules both apply, as do some state laws and other regulations. There’s no individual factor that determines a borrower’s ability to qualify for an FHA mortgage, a number of variables come into play as mentioned above. Sometimes one or more factors can disqualify a borrower, it’s true-a low FICO score, debt ratios that are too high, missed payments in the last 12 months leading up to the loan application, or major changes in | more...

April 21, 2022

HUD Announces Fair Housing Conciliation Agreement With Bank Of America

By Joe Wallace

Housing discrimination comes in many forms. The Fair Housing Act makes it a crime to discriminate against people at any stage in the housing process. You cannot be denied a loan, services, or assistance due to your race, religion, marital status, sexual orientation, gender identity, or any other non-financial factor listed in the Fair Housing Act. Yet, discrimination persists, even among major corporate lenders and other industry players. The Department of Housing and Urban Development has announced a Conciliation Agreement with Bank of America, N.A., “to resolve allegations of familial status and sex discrimination under the Fair Housing Act.” Bank of America, and one of its loan officers, “allegedly refused” to approve a home loan for a couple, “until after one of the applicants returned to work from maternity leave.” | more...

April 20, 2022

Buying Your First Home: What To Remember

By Joe Wallace

There is a little checklist of things not to do when buying a home. The top of the list? Not shopping around for a lender. FHA home loans have multiple options including the type of loan (fixed-rate, adjustable-rate mortgage) and the loan term (15 years or 30 years). But there are also multiple options based on the property you want to buy; a suburban home, a townhouse, condo unit, or even a multi-unit home. That variety of options brings with it a need to know more specifics about the type of loan you seek, and there are definitely things NOT to do when you are considering these options. And not all the considerations are directly related to applying for and getting approved for an FHA mortgage. Some have a lot | more...

April 19, 2022

FHA Adds 40-Year Mortgage Relief Option

By Joe Wallace

The Federal Housing Administration has announced a 40-year mortgage modification option for borrowers who are struggling to save their homes due to COVID-19. The announcement will have lenders offer more options to those who are behind on FHA Title II loans, which are the mortgages most commonly used under the FHA loan program to buy primary residences with. The new 40-year option is meant for those who “cannot achieve a minimum targeted 25 percent reduction in the Principal and Interest portion of their mortgage payment through FHA’s existing 30-year mortgage modification with a partial claim” according to the press release. Over time, the FHA and HUD have made major changes to the COVID-19 homeowner relief choices offered to those with FHA mortgages. According to the FHA and HUD, adding the | more...

April 18, 2022

Applying For An FHA Mortgage With A Changed Name

By Joe Wallace

It is illegal under the Fair Housing Act to discriminate against a person who seeks housing because of gender, gender identity, sexual orientation, family status, and any number of other non-financial issues. But in addition to the Fair Housing Act, there are certain Know Your Customer best practices required for both buying a home and renting that help establish the identity of the renter or buyer. Your lender will require you to verify your identity with a photo ID, tax documents, Social Security Number, and/or other identifiers. But what happens if the name on these documents isn’t the same as the name you have now or will have in the future? If you have a need for a legal name change these best practices can get a little complicated, and | more...

April 13, 2022

Paying Your FHA Loan Off Early

By Joe Wallace

Some of the big differences between an FHA mortgage and conventional loans involve more forgiving credit qualifying requirements, as well as a lower down payment. There is also an FHA loan rule that requires that the borrower have the ability to freely sell or transfer the property in any way he or she sees fit once the mortgage loan has closed and the borrower has started using the home as their primary residence. But there’s another important difference between some conventional mortgages and FHA loans. Did you know that under the FHA loan program you cannot be penalized or charged for early payoff of the loan? In years past, this guidance was found in HUD 4155.2 Chapter Three, which had a section describing what the FHA terms, “prepayment”. And while | more...

April 11, 2022

What Hurts Your Credit Ahead Of A Home Loan

By Joe Wallace

Do you know why your credit score could drop ahead of a home loan application? If you are worried about your ability to qualify for the lowest down payment for a home loan with your FICO scores, it’s smart to know what can hurt your credit while you are in the planning stages of your FHA mortgage. There are three basic things that could affect your credit scores before you apply for a home loan. These issues are not the only ones, but they are some of the most common. You should anticipate these problems while you are planning and saving for your FHA home loan and take steps to ensure they do not become an issue. The first area to watch that potentially affects your credit scores? Your payment | more...

April 8, 2022

Fair Housing Month: HUD Pledges More Funds To Fight COVID-19 Discrimination

By Joe Wallace

April is Fair Housing Month, and it’s likely no coincidence that April is also the month HUD announced added funds from the American Rescue Plan to fund HUD Fair Housing actions to fight discrimination related to COVID-19. In a press release issued by the HUD official site, the agency announced an additional $3,285,353 in funding meant for organizations that qualify and can accept funding through the FHIP’s Private Enforcement Initiative. These added funds can be used for enforcement, awareness-raising, education, and outreach projects. This is the third time American Rescue Plan funds have been used to fight housing discrimination related to the Coronavirus pandemic. According to HUD, some $16 million has been distributed to more than sixty agencies working to fight this particular type of housing discrimination. “The COVID-19 pandemic | more...