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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Rehab Refinance Loans, reverse mortgages

November 16, 2020

Rehab Refinance Loans, Effects Of The Pandemic, And Interest Rates

By Joe Wallace

At the time of this writing, FHA mortgage loan interest rates are still below the three percent line–best execution FHA mortgage loan rates for purchase loans are at 2.40%. The fact that we’re reporting on FHA loan interest rates below three percent makes some a bit more motivated to explore their refinance loan options. Some want to refinance their mortgages to get more affordable monthly mortgage payments. In the wake of COVID-19 furloughs and layoffs earlier in the year there were also falling mortgage rates AND government stimulus checks along with mortgage loan forbearance and other options for those trying to weather the economic impact of the pandemic. But not everyone wants to refinance in 2020 to save money–some need repairs to their property, others want to get out of | more...

November 13, 2020

FHA Home Loan Resources

By Joe Wallace

If you are thinking of applying for an FHA home loan or an FHA refinance loan, there are some important resources you should know about in the planning stages. These resources can help you prepare for your loan application, give you information about estimated mortgage payments, and help you located FHA loan limit information for your county. The first thing a potential home buyer should know about is the ability to contact the FHA to get a referral to a HUD-approved housing counselor who can help you understand the mortgage loan process, what it means to start preparing your credit for a home loan, and more. You can contact the FHA directly by calling 1-800 CALL FHA to request your referral. Another important resource? Online listings of FHA loan limits | more...

November 12, 2020

Reasons To Refinance

By Joe Wallace

There are good reasons to refinance your mortgage, and there are reasons that aren’t advisable. What do you want to accomplish with your refinance loan? Borrowers looking for cash out might list that as the primary reason but what you plan to do with that cash could be just as important as the home loan itself. There are many reasons to consider refinancing your home loan with an FHA refi loan. One is to get into a lower interest rate–whether you have an existing FHA mortgage or a non-FHA loan, you can refinance into an FHA loan with the goal of getting a lower rate. It’s a very good idea to let your participating FHA lender know the specific reason you want to apply for refinancing. If getting a lower | more...

November 10, 2020

Information You Need To Pre-Qualify Or Get Pre-Approved For A Mortgage

By Joe Wallace

When you go to explore your home loan options, there are two steps you’ll take to get things started and moving forward. One is getting pre-qualified for the loan using some basic (but important) information about your income, credit history, and other variables. The other step is to get pre-approved, which is a more involved process that requires more information building on what you previously submitted in the pre-qualification process. What kind of information does a potential borrower need for these applications? It helps to think like a lender when dealing with questions like these; your loan officer needs information to establish your employment and income history, your patterns of credit use, the size of the loan you need, etc. For pre-qualifying, which is something you can do in your | more...

November 6, 2020

Can I Get An FHA Loan More Than Once?

By Joe Wallace

One common question about FHA home loans goes something like this: “I bought a home with an FHA mortgage–can I get an FHA loan more than once?” The question is one of many that indicate a series of persistent myths about FHA mortgages. Those myths include the mistaken belief that FHA loans are only for economically disadvantaged people, or that there are restrictions on FHA mortgages that include income caps or that there must be a demonstration of need to be approved for an FHA mortgage. This might be due to confusion about government-backed loans in general. For example, certain USDA mortgage loans DO require a demonstration of need, income caps per household, and other features that clearly indicate that those USDA loans ARE for those who qualify as low | more...

November 5, 2020

Mortgage Loan Interest Rate Trends

By Joe Wallace

FHA mortgage loan rates have had a wild ride in 2020, and that is likely not over headed into the November and December holiday seasons. The 52-week average for government-backed mortgage loan interest rates has a bottom at 2.25%, which is significant since mortgage loan rates had, until this year, rarely seen territory below the three percent range. And the upper end of the 52-week average at the time of this writing is four percent–that should give you a good idea of how rates have fluctuated in the last 12 months. There is still plenty of uncertainty over which way rates might trend into the new year after the election season, continued issues with COVID-19, etc. At the time of this writing, the best-execution FHA mortgage rates (assuming ideal conditions) | more...

November 3, 2020

When You Apply For Your Mortgage Loan

By Joe Wallace

When you apply for a home loan, whether it’s an FHA mortgage, conventional loan, or any other type of “forward mortgage” used to purchase, your lender is required to check your employment, income, and credit information to make sure you are a good credit risk. Some borrowers assume the lender is only interested in FICO scores–the numbers assigned to you based on your credit patterns, repayment history, and other variables. But that is NOT true–the score is important, yes. But it’s not the only factor that goes into loan approval decisions. And it’s key to understand the factors that go into determining your credit score as those factors are of interest to your lender. TransUnion, one of the “big three” credit reporting agencies, advises consumers that credit scores are determined | more...

November 2, 2020

Will Credit Problems Affect My FHA Home Loan?

By Joe Wallace

Can past credit problems become an issue when trying to get a home loan approved? Some borrowers have less trouble than others getting their mortgage application completed and approved–why is it that some seem to sail through home loan approval and others struggle? Work On Your Credit Today Some people have had past credit issues but did a very smart thing–they made sure they had a full year or more of on-time payments on all financial obligations before applying for their mortgage loan. This tactic really works, and it’s FREE. You don’t pay a third party to “fix” your credit, you take matters into your own hands and pay on time, every time. This will have the result (over time) of raising your credit score and making you a more | more...

October 28, 2020

Why Did My Mortgage Payment Increase?

By Joe Wallace

Some borrowers discover their monthly mortgage payment has gone up and wonder why. Regardless of whether your home loan is an FHA mortgage, a VA home loan, or a conventional mortgage, there are reasons why you might have experienced an increase in your monthly mortgage payment amount. If you see changes in your mortgage payment that you don’t recognize or understand, the first thing you should do is to reach out to your loan servicer to get more information. Don’t simply accept the change if you don’t understand why it happened; consumer advocacy groups such as the government’s Consumer Financial Protection Bureau remind home owners that sometimes a change in your mortgage payment could be a simple mistake by the lender and one that could be immediately addressed with a | more...

October 26, 2020

Warning Signs Of Foreclosure Relief Scams

By Joe Wallace

Foreclosure scams are very much on the rise in an era where more borrowers than ever need some form of foreclosure prevention, mortgage relief, or other options to save their homes during times of financial uncertainty. Fortunately, many of these scams have some tell-tale warning signs you can use to avoid getting conned. The federal government warns consumers to watch out for the indicators that a scammer is at work instead of a legitimate offer of help. The Federal Trade Commission warns home owners to stay vigilant, especially when the following signs are present from any business which: offers to provide the homeowner with a loan modification regardless of circumstances; tries to get you to do an end-run around your current lender and asks you not to contact the lender, | more...