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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August 18, 2020

Mortgage Rates Give And Take In Mid-August

By Joe Wallace

Mortgage loan interest rates have had some interesting ups and downs in August 2020, with conventional loans AND FHA mortgages staying below the three percent line, at least some of the time in the case of conventional loans. There are many factors that affect the fluctuations of FHA and conventional mortgage loan interest rates–we won’t go into all of them here. But the pandemic, politics, international trade issues, and investor reaction to all of these things and more have kept mortgage rates at unprecedented lows (no, we aren’t tired of writing that phrase just yet). But at the time of this writing on August 18, 2020, conventional rates have risen above the three percent line once more. Rates are reported at a best execution 3.12% for the most well-qualified borrowers. | more...

August 13, 2020

FHA Announces Changes To 203(k) Rehab Loan Rules During COVID-19

By Joe Wallace

The FHA and HUD have announced changes to the FHA 203(k) Rehabilitation Mortgage program to help borrowers affected by coronavirus issues. Some who started rehab loan construction work may have had income issues related to COVID-19; such borrowers are offered additional consideration to keep their projects moving forward to completion. The Rules As They Were Originally Written An FHA Mortgagee Letter announces the availability of an extension for borrowers who could not get their rehab loan construction projects completed on time. The original guidance in HUD 4000.1 makes provisions for this; it states that when the work is not finished in the agreed-upon time, “the Borrower may request an extension of time and must submit adequate documentation to justify the extension.” HUD 4000.1 also states that the lender normally grants | more...

August 11, 2020

Why Did My Home Loan Get Denied?

By Joe Wallace

The question, “Why did the lender deny my home loan?” is a good one to contemplate. Thinking like a lender helps a great deal when you are planning and saving for a construction loan application, condo loan application, or when you want to buy a multi-unit home. Do you know why a lender might deny your application? There are several factors to ponder, no matter what kind of borrower you might be. Are you looking for a condo loan? Mobile home loan? Multi-unit house? Some of the reasons lenders deny home loan applications are fairly obvious, others are not. Review the following circumstances to see if any apply to you. This is not a comprehensive list, but it’s a great place to begin and some borrowers find at least one | more...

August 10, 2020

FHA One-Time Close Loan Rules: Buying Land To Build On

By Joe Wallace

You can build a home on your own lot, even as a first-time home buyer. Thanks to the FHA single-family loan program, which includes a construction loan option, you can build a home instead of buying an existing construction house AND take advantage of low FHA loan down payment requirements. FHA loan rules require only a 3.5% down payment even for construction loans, making the option to build instead of buy within reach of many who are just now exploring their options for becoming a home owner. But when considering a construction loan it’s good to remember that you don’t have to own land already–not all construction loan borrowers own their own property and need to purchase the lot as part of the loan. Building Your Home With A Construction | more...

August 7, 2020

FHA Home Loans For First-Time Buyers: Choices To Consider

By Joe Wallace

Are you a first-time home buyer looking for the most affordable mortgage options? FHA home loans feature flexible guidelines, and those options come with lower downpayment requirements other advantages over conventional mortgages. FHA Loan Options Are Diverse There are many types of housing you can buy with an FHA mortgage–a condo unit, a house in the suburbs, even properties with up to four units the borrower can occupy while renting out the unused units. You have to occupy the property you buy, but being a landlord may be an option for some to consider. There are also FHA home loans you can use to buy a fixer-upper (the FHA 203(k) Rehabilitation mortgage) and there’s also the FHA loan program to help you build a house on your own lot with | more...

August 4, 2020

FHA Mortgage Rates Creep Lower In First Week Of August 2020

By Joe Wallace

Mortgage loan interest rates have been moving lower in 2020–so low that even seasoned market watchers are surprised by how low the rates have gone. When mortgage loan interest rates fell below the three percent zone for both conventional and government-backed mortgages like FHA loans, it was a significant moment. The 52-week average (low) for a 30-year fixed-rate jumbo loan fell as low as 3.25%, but the same 52-week average for a “normal” conventional loan (not a jumbo) was 2.86% at its lowest point in that date range. Fairly impressive, until you compare the same 52-week low to the FHA 30-year fixed-rate mortgage, with a current 52-week low of 2.30%, thanks to the numbers falling from 2.37% last week to 2.30% this week. Pretty amazing rates, and opening the month | more...

July 30, 2020

First-Time Home Buyer? FHA Loan Basics You Should Know

By Joe Wallace

2020 has brought incredible low mortgage rates, surging refinance loan applications, and sustained buying and selling homes; all this in the midst of the coronavirus pandemic. Historically low mortgage loan interest rates mean greater interest in loans and the savings current rates could provide. If you are just getting started on the road to homeownership, there are some FHA home loan basics to know as you research your mortgage options. Different Homes, Different Loans One myth of the home loan market is that there is a generic loan for any type of property you want to buy. That’s not true–there are different loans for different purposes. For example, if you want a low-down-payment loan to help you build a house on your own land, the FHA One-Time Close construction loan | more...

What Credit Score Is Needed For An FHA Mortgage?

July 28, 2020

Getting Ready For Your Home Loan

By Joe Wallace

Even during the global pandemic, people still need to buy and sell houses to live in. The real estate markets in America have not shut down, and even as you read this there are mortgages entering the closing stages. Are you looking for a new home to live in? If you are, it’s likely you’ve asked yourself whether your credit is ready for a major credit application; do you know what to do if your credit report needs correcting? One of the most common bits of advice in this area is that all borrowers should start preparing by getting very familiar with the contents of your credit report. But there is another step to take at the same time you’re doing that. Set Your Bills To Autopay When you review | more...

July 24, 2020

FHA Mortgage Rates Lower In June 2020

By Joe Wallace

The year 2020 has brought some incredible activity on mortgage loan interest rates; at the time of this writing FHA loan interest rates remain below three percent–in the final days of July we saw mortgage rates fall to a low of (best execution) 2.38%. That rate was reported on Thursday, July 24 2020. Lower rates have prompted many to consider refinancing, but there are plenty of first-time home buyers hoping to be offered a lower rate in the current circumstances. Buying a home can be tougher during coronavirus containment measures (lockdowns, social distancing, etc.) but for those with access to the lower rates, it pays to be safe but persistent. Multiple Factors Responsible For Lower Rates Mortgage rates have dropped and stayed low due to a variety of factors including | more...

July 16, 2020

Answers To FHA Loan Limit Questions

By Joe Wallace

There are some common questions about FHA home loan limits for the Single-Family Mortgage program. Do you know what the home loan limit is in your area or how it affects your mortgage transaction? Do All Government-Backed Mortgages Include Loan Limits? At one time, all government-backed home loans carried a loan limit. However, in 2020 after changes in federal law, the Department of Veterans Affairs altered its VA Home Loan program to eliminate mortgage loan limit requirements. FHA mortgages and USDA mortgages still have loan limits. What Are FHA Loan Limits? The FHA loan limit is a calculation made by the FHA. The limit is based on “the median house prices in accordance with the National Housing Act” according to the official site. The limits are published once at the | more...