Articles by: Joe Wallace

March 21, 2019

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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March 21, 2019

Home Loan Credit Problems: Unresolved Borrower Debt

By Joe Wallace

What can jeopardize a home loan application? There are many factors, but delinquent and unresolved debt are two areas that first-time home buyers should be keenly aware of; these issues can derail a mortgage loan application depending on the severity and amount of the debt. We discuss debt ratios and related issues in this space all the time; the unresolved debt issue is related to debt ratios in a way (the resolution of the debt will likely add to the debt ratio in some way) but an account that is delinquent, and/or in dispute is a separate area altogether. It’s always best to apply for any major line of credit with a minimum of 12 months of on-time payments; anything less could threaten your ability to get loan approval. But | more...

March 19, 2019

FHA Home Loan Approval And Undisclosed Debt

By Joe Wallace

Some first-time home buyers are tempted to leave information off of credit applications, hoping that the lender won’t find out or that the omitted information will get lost in the details of the loan. But this is not a good strategy; FHA home loan rules in HUD 4000.1 anticipate such issues and there are instructions to the lender accordingly. Leaving out crucial information including certain debts may jeopardize FHA home loan approval. FHA Loan Rules For Undisclosed Debt In a situation where the borrower fails to disclose debts and the lender discovers them by other means, HUD 4000.1 instructs the loan officer as follows for undisclosed debt that does not involve another mortgage: “When a debt or obligation (other than a Mortgage) not listed on the mortgage application and/or credit | more...

March 18, 2019

What You Need To Know About FHA Condo Loans

By Joe Wallace

Buying a condo with an FHA mortgage loan is an option many borrowers might be interested in but sometimes assumptions about the FHA home loan program might cloud the issue. Here are some things you should know about FHA mortgages for condo purchases. FHA Condo Loans For First-Time Home Buyers FHA condo loans are open to first-time buyers and experienced home owners alike. You will be approved for the FHA condo loan based on your financial qualifications rather than whether or not you have owned property before. FHA Condo Loans Have Certain Advantages The down payment requirements for FHA home loans do not change based on the type of property you purchase, so you are still required to financially qualify but your down payment requirement does not get adjusted because | more...

March 14, 2019

How To Get A Lower Home Loan Interest Rate

By Joe Wallace

Home loan interest rates are a tricky issue, and if you are working with a real estate agent to find your first home, knowing as much as you can about rates going into the home loan application process is a very good idea. How can you get a lower rate when shopping for a home? There are some strategies to consider but many of them involve starting as early as possible in the planning stages. Getting A Lower FHA Home Loan Interest Rate By Shopping Around As you would never buy a used car from the first person you meet selling one, it’s important to shop around for a home loan lender offering the most competitive interest rates and terms. If you are a first-time home buyer, shop around for | more...

March 12, 2019

Why You Could Buy A First Home With An FHA Mortgage

By Joe Wallace

First-time home buyers may not realize the full value of some FHA home loan features, but once you’ve had a bit of experience with real estate and related issues, the FHA loan features that look good to you will do so for important reasons. FHA home loans have several strengths for those looking for a first home. Do you know what they are? FHA mortgages allow down payment gifts from approved sources. Your family, friends, co-workers, or agencies with no financial stake in the outcome of the transaction may provide genuine gifts of down payment money. The seller of the real estate you want to buy can not contribute toward your down payment. But you CAN negotiate with the seller to get up to six percent of the home’s sale | more...

March 8, 2019

FHA Home Loan Down Payment Assistance Rules You Need To Know Now

By Joe Wallace

FHA home loan rules allow down payment assistance for the mortgage for both first time buyers and experienced house hunters alike. There are down payment assistance programs for first-time borrowers, there are down payment gift funds that can be provided by family, friends, or employers…but all of these are subject to FHA loan rules. FHA Home Loan Down Payment Assistance Rules HUD 4000.1 says down payment assistance cannot come from any entity or party that has a stake in the outcome of the home loan sale or the approval of the mortgage loan. That includes: -The seller of the Property; -Any other person or Entity who financially benefits from the transaction (directly or indirectly); or Anyone who is or will be reimbursed, directly or indirectly, by any party included in | more...

March 6, 2019

What You Need To Know About Home Loan Appraisals As A First-Time Home Buyer

By Joe Wallace

What do first-time home buyers need to know about real estate appraisals when it’s time to make an offer on a home? Your real estate agent and lender know the power of the appraisal-do you? FHA Home Loans Require An Appraisal For Most Transactions There is only one kind of FHA mortgage loan that has no FHA-required appraisal, called the FHA Streamline Refinance loan. All others will need an appraisal to determine the fair market value of the home. The Appraisal Is A Tool For The Lender Borrowers should not use the appraisal to determine whether the home has defects or hidden problems. No matter what you may be told by others, the appraisal process is not intended to help the borrower decide whether or not the home is ok | more...

March 5, 2019

Signs You Are Not Ready To Apply For A Home Loan

By Joe Wallace

How does a first-time buyer know they are ready to apply for a home loan? There are some instances where a first-time borrower is definitely NOT ready, do you know what they are? You Don’t Know Your FICO Scores If you don’t know what your FICO scores are, you aren’t truly prepared to apply for a home loan. You need to know what the lender will know when she reviews your credit report. If you apply without knowing your scores, you risk wasting time and money. You Haven’t Reviewed Your Credit Report In The Last Months Leading Up To Your Credit Application If you don’t know what your loan officer will see when your credit report is pulled, you aren’t ready to apply for a loan. Evidence of identity theft, | more...

February 28, 2019

FHA Home Loan Answers For First-Time Borrowers

By Joe Wallace

First-time borrowers have many questions about FHA home loans. Here are some common questions and the basic answers, which should give you plenty to discuss with a lender when the time is right. What do you need to know about an FHA home loan? Can I Earn Too Much Money To Qualify For An FHA Mortgage? FHA loans do not have an income cap and these mortgages are not need-based loans. First-time home buyers may have financial constraints such as a tight budget and a need to save money up front on the transaction, and the FHA loan program is designed to help such borrowers with lower down payment requirements and the ability to finance certain closing costs. Do I Have To Live In The Home I Buy With An | more...

February 28, 2019

FHA Home Loans and Help With Down Payments

By Joe Wallace

First-time home buyers looking for real estate to buy with an FHA loan may be intimidated by the notion of saving up for and making any kind of down payment, let alone a percentage of the appraised value of the home. But it’s important to remember that borrowers have options with FHA mortgage loans that can help offset the down payment. A Wall Street Journal report from January 2019 discusses “the bank of Mom and Dad” as one of the most influential factors in home buying. Did you know that according to the Wall Street Journal, approximately 26% of the FHA loan transactions included financial help from parents? The Bank Of Mom And Dad can be a powerful factor in buying a first home. But some first-time home buyers aren’t | more...