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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January 11, 2021

FHA Mortgage Rates In Early 2021

By Joe Wallace

All eyes are on 2021 and what the new year could bring for housing markets, including what might happen with mortgage loan interest rates. FHA loans and other government-backed home loans saw sub-three-percent mortgage loan interest rates in 2020, and the earliest days of 2021 those rates did not rise above three percent. Mortgage rates for FHA home loans including FHA One-Time Close construction loans, FHA Rehab loans, and others remain below the three percent line (assuming ideal conditions including a well-qualified borrower) where they sat, more or less, for a significant amount of time in years past. American political chaos, the coronavirus pandemic, economic uncertainty, nervous investors, and other variables have all worked together to keep mortgage loan interest rates below three percent for the time being. Did the | more...

January 6, 2021

One-Time Close Construction Loan Availability In 2021

By Joe Wallace

Here is a commonly asked question about One-Time Close construction loans; “I want to build my home instead of buying it but my lender says they won’t do a construction loan”. Or conversely, “I want to use a VA mortgage to build a home but the lender says they don’t offer VA construction loans. Can they do that?” If you are interested in building a home from the ground up instead of buying an existing property, you can use the One-Time Close construction mortgage to do so and there are a variety of options including both VA loans and FHA construction loans. People gravitate toward these mortgages because of more forgiving FICO score rules and lower down payment requirements. But not all lenders offer FHA mortgages or VA home loans; | more...

January 5, 2021

FHA And HUD Announce Streamlined Loan Paperwork

By Joe Wallace

The FHA and HUD have in the last year made efforts to streamline and revise aspects of the Single Family Home Loan program to increase the security of the program and make certain certification issues easier for participating lenders. HUD.gov announced it had finalized a revised loan-level certification form which is required as part of the FHA Single Family home loan process. Lenders must submit this form to the FHA for each home loan. What is the revised form? HUD Form 92900-A, Addendum to Uniform Residential Loan Application, this form is an FHA requirement and must contain signatures from the underwriter or “other lender representatives”, along with the signature of the loan applicant. The revised HUD Form 92900-A may be used by lenders immediately. It is required for all transactions | more...

December 31, 2020

Happy New Year 2021!

By Joe Wallace

We hope your holiday season has been safe and fun. We pause from our usual posts about FHA home loans to enjoy New Year’s Eve and New Year’s Day 2021, and our regular posting schedule resumes on Monday. Thanks for reading and have a great holiday.

December 29, 2020

FHA Home Loan Resources For New Borrowers

By Joe Wallace

Are you thinking about your first home loan for 2021? Are you considering your options for your very first refinance loan? There are some important resources you should know about that can help you in the planning stages. Know Your FHA Loan Limits If you don’t know what the FHA loan limits are for your county for 2021, you can look at the FHA.gov official site, but you can also look at home loan websites to view both the rundown of 2021 home loan guaranty limits but also get information in getting pre-qualified, etc. When exploring your area FHA loan limits, don’t forget that the limits increase if you purchase a multi-unit property. The single-unit FHA loan limit is lower than the four-unit FHA loan limit and borrowers are permitted | more...

December 28, 2020

FHA Home Loan Options: Build Or Buy A Home In 2021

By Joe Wallace

Do you want to own your own home in 2021? The FHA Single-Family home loan program is an excellent option for future homeowners who want to build or buy a home in the new year. What are your options for buying a house with an FHA mortgage? Those who have good credit (620 or better) and are not in a hurry to move in as soon as possible should consider applying for an FHA One-Time Close (OTC) construction loan to build a home from the ground up on your own land or on a lot you buy in conjunction with the construction loan. Another option for those who aren’t in a hurry to move in is the FHA 203(k) Rehabilitation mortgage, which is intended to help you buy a fixer-upper | more...

December 24, 2020

Happy Holidays 2020

By Joe Wallace

Happy Holidays! Thank you for reading our posts this year. We hope you have a happy and healthy holiday season. Our regular posting schedule resumes on Monday. See you then!

December 22, 2020

FHA Mortgage Relief Extended Into 2021

By Joe Wallace

Millions of homeowners with FHA mortgages in need of mortgage relief during the coronavirus pandemic are getting an extension on their options to avoid foreclosure. That is thanks to a recent move by the Department of Housing and Urban Development; the agency has announced an extension to coronavirus relief measures intended to help borrowers financially affected by COVID-19. FHA and HUD official sites announced this week that they have approved a two-month extension to the COVID-19 related foreclosure and eviction moratorium. The new expiration date for the moratorium is listed as February 28, 2021. There is now more time for FHA borrowers to request what the FHA calls an “initial COVID-19 forbearance” which must be obtained from the borrower’s mortgage servicer. This forbearance is meant to “defer or reduce” FHA | more...

December 18, 2020

FHA Home Loan Rules For Second Homes, Vacation Homes

By Joe Wallace

Investing in a vacation home is tempting for many. Some borrowers don’t want a vacation home but need a second home because of changes in job requirements, family size, or other factors. Do borrowers have the option of purchasing a vacation home or a second home with an FHA mortgage? FHA loan requirements for loan approval include a rule stating that the home be used as the primary residence; occupancy is a condition of loan approval for an FHA single family forward mortgage loan. You must be plan to use the house you buy with the FHA mortgage as your main address, and in cases where there’s an increase in family size or a change in job location. But a vacation property? Not permitted under the rules in HUD 4000.1 | more...

December 16, 2020

FHA Construction Loan Rule Changes In 2021

By Joe Wallace

The FHA One-Time Close construction loan, also known as a construction-to-permanent mortgage or simply as a home construction loan, is an option for home buyers who want to build a home from the ground up. There are USDA versions of this type of loan (with income caps and other need-based restrictions), there’s a VA One-Time Close loan for qualifying military personnel, and there is also the FHA One-Time Close construction loan which features a low 3.5% down payment the same as all other FHA purchase loan options. The FHA and HUD have announced changes to the FHA One-Time Close program in 2021. These changes will formalize certain elements of the program, and change others as we’ll see below. HUD has changed its maximum financing policy and other requirements for New | more...