Articles by: Joe Wallace

November 12, 2018

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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November 12, 2018

Happy Veterans Day 2018!

By Joe Wallace

Happy Veterans Day! Many banks will be closed to observe this federal holiday, bond markets are closed, and we pause in our usual routine of answering questions about FHA home loans to honor our nation’s vets. Thank a veteran for her service, and remember the sacrifices all our troops have made no matter where in the world they may be stationed. To all current and former members of the U.S. military, THANK YOU for your service! Our regular posting schedule resumes tomorrow.

November 9, 2018

FHA Mortgage Loan, Dropping Home Prices, And Your Appraisal

By Joe Wallace

You may read articles discussing home prices moving lower on real estate blogs or lending websites; when house prices move from one part of a cycle to another there is sometimes confusion related to the valuation of a home. Why would an FHA borrower looking at a house in a neighborhood or housing market with prices trending in one direction get back an FHA appraisal indicating that the home the buyer wants isn’t valued in the same way? Higher or lower, why does one home get valued “as expected” when another one does not? There are a set of variables at work in the appraisal process that include not only the age/condition of the home, but also how other houses stack up against the one you want to purchase with | more...

November 8, 2018

Rent Or Buy? FHA Loans Can Help You Own Your Home

By Joe Wallace

Is it wiser to rent or to buy your home? According to a November 2018 National Apartment List Rent Report, rents are on their way up in a large number of cities nationwide. In areas where it makes just as much sense to make a mortgage payment as it does a monthly rental payment, borrowers should definitely explore their FHA home loan options. FHA Loans Can Help You To Stop Paying Rent Buying your home with an FHA mortgage means no more waiting for the landlord to repair crucial areas of the home. Home owners are free to schedule or make their own repairs or upgrades without having to wait for someone else to get around to scheduling those necessary appointments. Buying a home with an FHA mortgage means no | more...

November 6, 2018

FHA Loan Approval And Your Credit Scores

By Joe Wallace

What do you need to know about FHA loan approval and your credit scores? There are some important factors that can help you in the planning stages for your new mortgage loan. Don’t go into the mortgage application process without being armed with this information-you’ll be glad you know before you sign. FHA Minimum FICO Scores And Your FHA Lender FHA minimum FICO score requirements are not necessarily the same as your lender’s requirements. FHA Loan rules establish a minimum for credit scores (580 or higher for maximum financing) but your lender may require higher scores. An average is between 640 and 700, with scores between 640 and 680 being common requirements for the lowest down payment. FICO Score Requirements May Vary Depending On The Type Of FHA Loan Your | more...

November 2, 2018

Five Reasons Lenders May Deny Your Home Loan Application

By Joe Wallace

There are many reasons why a home loan application might be denied. If you seek an FHA home loan, credit requirements and other rules may be more forgiving of past credit mistakes, but lender standards and other factors do mean the borrower is held to certain minimums for FICO scores, debt ratios, and other financial qualifications. #5: FHA Loan Rules Require A Minimum FICO Score Requirement If your FICO scores are below 500, FHA loan rules say you are not eligible for an FHA mortgage loan. But that 500 minimum score is the FHA requirement, NOT the lender’s. Your participating lender’s requirements may be higher than 500 as a minimum, and meeting the bare minimum can result in a higher down payment. FHA FICO score requirements for the lowest down | more...

October 31, 2018

Mistakes To Avoid When Buying A Home With Your FHA Loan

By Joe Wallace

There are common problems associated with home loans that can be easily avoided no matter if you are using an FHA mortgage, FHA refinance, or any other kind of home loan. Do you know how to make your home loan experience as efficient and hassle-free as possible? FHA Loan Pre-Approval: Don’t Search For A Home Without It When you are serious about the house hunt, and are ready to commit financially to the home you find that seems to be “the one”, the seller will take you far more seriously as a buyer if you approach with pre-approval in hand. Sure, you can make an offer without being preapproved for a home loan, but rest assured that other potential buyers WILL talk to the seller having taken the time to | more...

October 30, 2018

What You Can And Cannot Do With An FHA Home Loan

By Joe Wallace

What are borrowers allowed to do with an FHA home loan? What is not allowed? Knowing your options before you apply is an important part of the process since all FHA home loan products are not made for the same purposes. You Can Use An FHA Mortgage To Buy A Mobile Home Or Condo There are FHA purchase loans available for mobile homes that meed FHA loan standards, and also mortgages to purchase condo units. FHA home loans allow these purchases as long as the mobile home is affixed to a permanent foundation and is transported directly to the site from the dealer or manufacturer. FHA condo loans are allowed when the condo unit is on or added to the FHA approved condo project list, the condo meets FHA minimum | more...

October 29, 2018

Will I Need To Fill Out IRS Form 4506-T To Buy A Home With An FHA Loan?

By Joe Wallace

When you fill out FHA home loan paperwork to purchase a home, your lender may ask you to complete IRS Form 4506-T, Request for Transcript of Tax Return. What is the purpose of this form and how does it affect your FHA loan? What Is IRS Form 4506-T Request for Transcript of Tax Return? The official site of the Internal Revenue Service says that the purpose of this form is twofold. One use is so that a transcript may be ordered free of charge, and the other use is to give permission to a third party (in this case, your participating FHA lender) to receive the transcript instead. Why Does My FHA Lender Need My Tax Information? The lender is charged with verifying the borrower’s income and employment as part | more...

October 25, 2018

Home Repairs With An FHA Loan In 2019

By Joe Wallace

Credit card use data from a company called Argus, and other studies indicate that as many as one in three home owners paid for home renovations in 2017 using a credit card. It’s estimated that more than $140 billion worth of home improvements were financed by credit card. Credit card interest rates vary, but if you’re paying more than 10% interest on that credit card and thinking about using one to finance your home repairs in 2019, you are likely paying too much in interest compared to an FHA home loan or refinance loan. What are the options with FHA mortgages and home repair? Can you apply for an FHA mortgage at a lower interest rate than your credit cards and get your home repairs accomplished without paying unnecessary interest? | more...

October 24, 2018

Four Things To Check Before Refinancing Your Home Loan

By Joe Wallace

What do you need to check before applying for an FHA refinance loan? There are some important areas to consider in the planning stages of your new loan that include interest rates, property values, and more. FHA Refinance Loans And Interest Rates Are you in a non-FHA loan hoping to get a lower interest rate through refinancing? Do an online search and you’ll find that lending websites indicate FHA home loans feature lower rates than conventional mortgages. The rates actually offered to you are contingent on your financial qualifications and how rates are performing at the time. It is very important to shop around for the best rates available to you. In certain times when rates are much lower, it may be tempting to wait or “float” to see if | more...