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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July 23, 2021

How Early Should You Use A Mortgage Calculator?

By Joe Wallace

The short answer? The moment you think you want to commit to being a home owner, you should consider using an online mortgage calculator. A mortgage calculator can help you plan and save for your mortgage. The use of a mortgage calculator is something most real estate blogs and home loan websites encourage you to use. The most basic, entry-level finance blog advice includes “use a mortgage calculator”. But there are some things to keep in mind about using a mortgage calculator–you want to use one that includes more than just the principal and interest for your loan. If you use one that limits the input to just those two things, you won’t really get an estimate of your monthly mortgage payment. Why? Because you will need to factor in | more...

July 22, 2021

The FHA Streamline Refinance Loan: No FHA-Required Credit Check

By Joe Wallace

FHA refinance loan options are looking more attractive to some borrowers with FHA loan rates still well below the three percent line at press time after some ups and downs in 2021. But the range of options confuses some. What do you need to know about the Streamline FHA Refinance loan option compared to FHA cash-out refinancing or FHA 203(k) Rehabilitation Loan refinancing? Streamline FHA Loan Facts You Should Know First-time applicants may be surprised to learn there is no FHA-require appraisal. Your lender is allowed to require one, but if they choose to process your FHA streamline refinance without one, you’re spared the appraisal fee. Most FHA loans require a credit check and have a set of minimum qualifying scores. What about FHA Streamline? FHA Streamline loans allow your | more...

July 20, 2021

FHA Loan Limits: Things To Know

By Joe Wallace

What does a new borrower need to know about FHA loan limits? For a start, unless you are applying for a VA mortgage loan with 100% of your VA home loan entitlement, you are likely subject to loan limits of some kind whether staying below those limits for a conforming loan or exceeding those limits for a Jumbo mortgage. If you want to know some important things about FHA loan limits, keep reading but one thing that is good to know up front? Conforming loans or loans that are at or below the loan limit for FHA, USDA, conventional mortgages and VA loans for those without 100% of their home loan entitlement will typically feature more competitive interest rates than jumbo loans which may have higher rates due to the | more...

July 19, 2021

FHA Mortgage Insurance Options

By Joe Wallace

There are plenty of things you might need to know about the FHA mortgage insurance premium, but if you are a first-time home buyer there are some aspects about this you should know about as early as possible so you can make the most informed choices possible about your home loan, what to finance, and how much to save. Learn Your Options Getting ready for a home loan means learning which items you have the option of including in the loan amount and how much you will pay over the lifetime of the loan on interest rates on the amount of your loan AND the add-ons you choose to include. And that’s where understanding FHA mortgage insurance becomes very important. One thing some people initially get confused over? Mistaking PMI | more...

July 16, 2021

Why Your Credit Report Matters

By Joe Wallace

Are you new to the mortgage loan process? It’s easy to make certain assumptions, especially where credit approval is concerned. What do you need to know about your credit report? Don’t forget that how you use your credit, how much credit you use, and whether you pay on time are all factors that go into your FICO score calculations. There are several factors that may help you make better choices about how to plan and apply for your mortgage. Credit Report Factors To Consider Your FICO scores, credit card use, plus information about the amount of credit you use per card (up to the credit limit and by how much) are all things your lender will need to see when looking at your report. FICO scores are an important part | more...

July 15, 2021

FHA Loan Interest Rates And FICO Scores

By Joe Wallace

Buying a home means paying attention to your financials–credit scores, debt repayment habits, and credit utilization rates. Paying attention to them as early as possible is an important choice when you are planning your home loan. Don’t put off working on your credit–time is not on your side if you are planning to apply for a home loan in the next 12 months if you haven’t looked at your credit scores, reports, etc. If you want to buy a home with an FHA mortgage, you generally have more forgiving credit qualification guidelines from the FHA, and that’s a great reason to use an FHA mortgage. FICO score issues can be a major worry for some borrowers, but by working on your own credit far ahead of your home loan you | more...

July 13, 2021

FHA Loan Down Payment Facts

By Joe Wallace

Some borrowers get nervous about having to come up with a down payment. It is more than some have spent on one thing in their adult lives all at once, who can blame them for worrying? FHA home loans permit down payment gifts and grants and that can be a huge help for the first-time homebuyer. The rules for these programs must clearly explain the conditions of the grant or gift, under what conditions it might be required to be paid back–those payback terms of often triggered by violating the terms of the agreement. It can also happen when the home is sold, paid off, or no longer used as the primary residence. Such gifts may come from state or local housing development agencies or other local entities–remember that the | more...

July 12, 2021

Documents You’ll Need To Apply For A Home Loan

By Joe Wallace

Do you know the paperwork and documentation you’ll need to complete a home loan application? There are plenty of things you’ll need to gather–what follows is a list of items that are easy to overlook when you’re thinking about filling out an online loan application. This list is not exhaustive–you should ask your loan officer for a complete list of that financial institution’s requirements–they aren’t always the same. Authorization The first thing to know about some home loan documentation requirements? Some of them are fairly non-negotiable. For example, your lender must get copies of your credit report to complete your mortgage application. This requires all borrowers named on the mortgage application to give permission to the lender to do so and you cannot supply your own credit data to the | more...

July 9, 2021

Pro Tips For FHA Home Loans

By Joe Wallace

There is still time to take advantage of the higher mortgage loan limits for FHA home loans in 2021, and if you don’t know what it takes to be approved for an FHA single family loan this year, there are some pro tips you can use to get much closer to home loan approval. Pro Tip: Are you worried about your FICO scores? Remember that FHA standards include a requirement of a 580 FICO score or better for the lowest down payment. But the FHA standards are not the only minimum credit score requirements at work–the lender’s own standards also play a part. That is why you should start getting your credit ready early–at least a year ahead of your application for a single-family home loan. That’s not something many | more...

July 8, 2021

Worried About FHA Home Loan Interest Rates?

By Joe Wallace

What forces affect FHA home loan interest rates? If you are worried about getting the best FHA loan rate, you should know what factors go into the mortgage rate you are offered by a participating lender. There are multiple factors that influence rates, some are market forces but some are directly in the borrower’s control–at least in terms of the rate you could be offered. The most important thing to understand about rates–especially home loan interest rates–is that they fluctuate frequently. This means that some aspects of the rate you are offered are beyond your control. Other aspects are in the borrower’s ability to change for better or worse. What do we mean? Your Choices Can Affect The Interest Rate You Are Offered The choices you make as a consumer | more...