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 6, 2021

Buy A Fixer-Upper With An FHA Rehab Loan

By Joe Wallace

Do you know what an FHA 203(k) rehab mortgage loan is? This is the loan to ask for from a participating FHA lender if you want to buy a home to renovate instead of purchasing a “like new” home. What You Can Do With An FHA Rehab Loan Borrowers are allowed to apply for a new purchase loan or an FHA refinance loan under the 203(k) program, which the FHA loan handbook says may be used to buy and rehabilitate an existing one- to four-unit Structure, which will be used primarily for residential purposes. It can also be used to rehabilitate / refinance outstanding indebtedness “on the Structure and the Real Property on which the Structure is located” or to purchase and rehabilitate “a Structure and purchase the Real Property | more...

June 30, 2021

The End Of National Homeownership Month

By Joe Wallace

The month of June is National Homeownership Month, and now that the month is over, the FHA and HUD are reminding potential FHA borrowers about government initiatives to encourage homeownership, prevent discrimination, and enable first-time homebuyers to consider purchasing a new house. The HUD official site announced at the end of June that there are more initiatives coming to improve free access to housing and further prosecute violations of the Fair Housing Act. According to a press release on HUD.gov, this process began in the first days of the Biden Administration with the newly-sworn-in President of the United States issuing a memorandum to the Department of Housing and Urban Development “to address discrimination in our housing market”. Since those earliest days, HUD has issued a proposed rule “on countering housing | more...

June 28, 2021

Start Getting Ready For Your FHA Home Loan

By Joe Wallace

FHA home loan resources abound–you should know about using online mortgage calculators, pre-qualification for a home loan, and the availability of free credit reports to help you in the research and planning stages of your new home loan or refinance loan. Let’s start with those free credit reports–the Consumer Financial Protection Bureau (CFPB), reminds home loan applicants that they are entitled to “a free credit report every 12 months from each of the three major consumer reporting companies (Equifax, Experian and TransUnion)” according to the CFPB official site. Getting your credit report from all three agencies is an excellent way to begin your planning stage of the loan. Get your credit reports a year in advance of your loan application and remember to keep monitoring your credit afterward. This gives | more...

June 23, 2021

FHA Loan Rates: Three Tips

By Joe Wallace

What do you need to know about FHA loan rates? The interest rate on your mortgage is an important variable you’ll want to think about early in your planning stages. If you don’t run the numbers on how much your mortgage will cost over the lifetime of the loan, you’re at a serious disadvantage when it comes to planning. Calculating the cost of the loan itself is not the same as calculating your monthly mortgage payment. You’ll want to know the fees and expenses you need to pay up front, but you’ll also want to know how much your loan costs you when the interest rate is applied. How much does your loan cost you each year? Each decade? What is the total cost of the loan once it has | more...

June 21, 2021

FHA Mortgage Or USDA Home Loan: Which Is Best For You?

By Joe Wallace

What makes FHA mortgages different than USDA home loans for the same kind of property? Both FHA and USDA mortgages are offered for single-family homes and you can apply for a 30-year fixed rate mortgage under both programs with lower interest rates and more flexible credit requirements than some conventional loans. What makes FHA and USDA mortgages so different? One important factor is who qualifies for each kind of loan. USDA mortgages are intended specifically for low to moderate income borrowers who are looking for affordable housing. USDA mortgages feature price limits and household income limits that will affect the borrower’s overall loan eligibility. FHA mortgages do not feature such restrictions and are for any financially qualified borrower regardless of the upper limit of their household income. USDA loans feature | more...

June 18, 2021

Changes To FHA Home Loan Policy: Student Loan Debt

By Joe Wallace

The Department of Housing and Urban Development official site has published a press release announcing an important revision to FHA Single-Family home loan guidelines in HUD 4000.1 concerning how a participating FHA lender should consider student loan debt as part of the loan approval process. Before the publication of HUD 4000.1, the FHA Single-Family Loan program handbook, FHA loan rules “did not address how Mortgagees should calculate future payments of deferred student loan debt which, once due, could negatively impact a Borrower’s long-term ability to repay their Mortgage and other monthly obligations” according to the HUD press release. What’s more, FHA loan rules did not consider deferred and non-deferred student loan debt separately. When HUD 4000.1 was published to replace HUD 4155, FHA loan rules were modified to require a | more...

June 17, 2021

FHA Loan Minimum Credit Scores: Tips That Can Help You

By Joe Wallace

Are you concerned that your FICO score isn’t high enough to meet the minimum credit scores for the lowest down payment possible on an FHA home loan? On paper, FHA loan minimums for credit scores begin at 580 or better to qualify for the lowest down payment. Your participating lender may require a higher score but in general FICO score requirements for FHA home loans may be more competitive than some conventional equivalents. There is some good credit score advice should you take ahead of your home loan–it starts with pulling your credit reports to see what’s lurking in there, then checking your credit often and monitoring it. Being told to check your credit report is obvious advice. You will find that in just about any credit repair article. But | more...

June 15, 2021

FHA Mortgage Loan Facts

By Joe Wallace

What do you need to know about FHA home loans? Aside from dispelling the common myth that FHA mortgages are only for first-time home buyers or economically disadvantaged house hunters, there are many things you should know about the FHA loan program before you apply. FHA loans differ from other mortgages with their lower credit score requirements, low down payments, and zero penalty for early payoff of the loan. FHA home loans are for any borrower who can financially qualify and you do not need to worry about income limits or other need-based restrictions. There are some things you should know about FHA loans that are universal to all home buying experiences in America. One of those? No matter what your lender, real estate agent, or anyone else says or | more...

Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

June 14, 2021

More FHA Mobile Home Loan Advice

By Joe Wallace

Did you know that you do not have to own the lot your new mobile home will be placed on in order to be approved for an FHA home loan? FHA mortgage loans for mobile and manufactured homes permit you to purchase a mobile home, modular home, or manufactured home that will act as your primary residence and that will be attached permanently to an approved foundation. There is more than one type of mobile home loan you can get from a participating FHA lender who offers them. You can apply for an FHA mortgage to buy the mobile home alone, or you can apply to purchase land in conjunction with the mobile home purchase. Your lender may even allow you to apply for a home loan to purchase the | more...

June 11, 2021

FHA Mobile Home Loans: What You Need To Know

By Joe Wallace

FHA home loans are available for a variety of things including mobile homes, manufactured homes, and modular housing. What do you need to know about mobile home loans offered under the FHA program? Mobile Home Loans Are Specific The home you purchase with any FHA mortgage must be classifiable as real property, which means it must be taxable as real estate regardless of whether or not it is actually taxed in your state. Real estate refers to properties that have a permanent foundation. FHA loans for mobile homes are under the Title 1 program. Mobile homes that will not be permanently affixed to a permanent foundation that meets FHA standards cannot be approved for an FHA home loan. FHA Mobile Home Loans For Lot And Home Yes, FHA mortgages can | more...