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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July 30, 2025

Home Loans And Your Credit Score: The Cost Of Your Mortgage

By Joe Wallace

Did you know that credit scores affect more than the approval or denial of your FHA mortgage application? Your overall costs for the mortgage over the long term will depend in part on your FICO scores, as we’ll explore below. The better your credit scores, the more competitive the rates and terms may be for the FHA loan. FICO Scores And Your Down Payment You have not one, but TWO FICO score standards to meet when you want to apply for a large loan such as a mortgage. The first standard is from the FHA itself (these are the FHA minimum requirements for the Single Family home loan program), and the second is your lender’s standards. These will vary from lender to lender. And your lender’s standards may or may | more...

July 17, 2025

Buy Your First Home With An FHA Mortgage

By Joe Wallace

Do you want to purchase your first home? Borrowers looking for a starter home often turn to the FHA loan program because of its low 3.5% down payment requirement for borrowers with qualifying FICO scores. And thanks to protections for the borrower such as no penalty for early payoff of the loan and the ability to refinance the FHA mortgage into a new FHA loan that can result in a lower mortgage rate or monthly payment when using an FHA Streamline Refinance loan. Qualify For An FHA Mortgage What do you need to qualify for an FHA loan? For best results, at least two years in the job market and FICO scores that are in the 600s or better. FHA loan rules say you can technically qualify for an FHA | more...

July 16, 2025

FHA Home Loan Approval Problems: New Credit Applications

By Joe Wallace

You may have heard advice about seeking new credit while you are in the home loan process. Much of this advice is definitely applicable, especially in times of economic uncertainty and questions about the direction of the housing market. Anyone who advises you NOT to apply for new credit once you have started your home loan journey is thinking with your best interests in mind, but what is it about this advice that makes it so critical? A lender doesn’t pull your credit reports just once during the home loan process, and if your lender sees new information that potentially changes your ability to qualify for the mortgage, it may be necessary to re-approve you for the loan. And that’s just the presence of new credit in your report. What | more...

July 10, 2025

Is There Such A Thing As A Refund For FHA UFMIP Mortgage Insurance?

By Joe Wallace

Is there such a thing as a refund for FHA Up-Front Mortgage Insurance or FHA UFMIP? This mortgage insurance premium is required on FHA loan transactions and must be paid either in cash at closing time or must be financed into the loan amount. FHA loan rules do not allow a borrower to pay a portion and finance a portion of the FHA UFMIP, it must be paid in full using financing or cash. Borrowers have many questions about this FHA mortgage insurance requirement, including whether or not a refund is possible under the right circumstances. FHA forward mortgages require UFMIP as a condition of the loan no matter if the transaction is an FHA One-Time Close construction loan, existing construction purchase, or whether the borrower is buying a manufactured | more...

July 3, 2025

Article Update: FHA Appraisal Rules On Peeling Paint

By Joe Wallace

In the past, we wrote an article discussing a common reader question about FHA home loans. Can the presence of peeling paint be enough to cause a problem in the FHA appraisal process? In our original article, we noted that this can be a major issue for homes built before the lead paint ban which took effect in the 1970s. In some situations, borrowers want to know why the appraiser reviewed the home and required a correction of a peeling paint issue as a condition of loan approval. The age of the home plays a big part in that decision to require a correction. If the house was built before 1978, peeling paint may indicate a lead-based paint hazard and is treated as a potential health and safety issue under | more...

July 1, 2025

FHA Loan Rules: Title Issues For Non-Borrowing Co-Owners

By Joe Wallace

There are plenty of situations that come up when more than one person wants to borrow on an FHA home loan, but there are just as many circumstances where two people may want to own a property purchased with an FHA mortgage, but only one of the two is applying for the loan itself. FHA loan rules for this are found in HUD 4155.1 Chapter Four under the heading, “Title Issues Regarding Non- Borrowing Spouses or Other Parties in Interest”. The rules here state: “If two or more parties have an ownership interest in the property, but only one of the parties is applying for the loan (and credit qualifies for the loan on his/her own), it is not required that the non-applicant individual(s) execute the mortgage note and security | more...

June 26, 2025

Home Loan Preparation: Credit Issues

By Joe Wallace

Are you worried about your credit ahead of your home loan application? Do you need to do to prepare your credit before you move forward? There are avenues that can help you get ready for a home loan, including advice and assistance with credit questions. We’ll examine your options in this area below, but first it is important to review some of the most common credit problems that stand in a borrower’s way. Home loan and refinance loan approval is not impossible, but for some borrowers, it’s necessary to take some extra time to work on credit issues. Here are some credit concerns you should pay attention to so you can raise your credit score: Late And Missed Payments This is one of the main reasons consumers are denied loans. | more...

June 25, 2025

FHA Loans: Credit Score Tips

By Joe Wallace

What is a good FHA loan credit score? In general, the obvious advice is to try to come to the home loan process with as high a FICO score as possible for best results. But not everyone has the advantage of an Excellent credit rating. What do future homeowners need to know about FHA loan requirements and their credit score? First, you should know that no two lenders are exactly alike, and it is a bad idea to assume you will get the same results from all of them. Don’t assume you can’t qualify for a loan–have a loan officer help you determine what kind of mortgage is right for you. FHA Credit Score Tip: Shop Around Why do we say “shop around” regarding FICO scores and FHA loans? Borrowers | more...

June 24, 2025

Comparing FHA Home Loan FICO Score Requirements

By Joe Wallace

If you’re thinking about buying your first home, you’ll want to consider your options carefully, compare lenders, and compare loan products. No two home loans are exactly alike, and many borrowers find that some mortgage loan options are better for their circumstances than others. We examine some of the similarities and differences between FHA loan FICO score requirements and other types of home loans. Is an FHA mortgage right for you? Or do you qualify for other options in addition to an FHA mortgage? True or false? Your credit score is usually the first thing lenders check when you’re buying your first home. True! Your credit score is often the first thing lenders check. This highlights the importance of your credit score in the initial stages of applying for a | more...

June 17, 2025

FHA Loan Rules: How Inducement To Purchase Rules Affect Your Loan

By Joe Wallace

Do you know how FHA loan rules for inducement to purchase can affect your FHA loan transaction? We often discuss the basics about FHA home loan requirements, and especially in the area of seller rights and responsibilities, but there are other issues associated with inducements to purchase you should know about aside from the obvious issues. What kind of requirements? Many know that sellers may contribute up to six percent of the sale price of the home toward the borrower’s closing costs. But the FHA’s six percent rule (no interested party contributions above six percent of the sale price of the home without a corresponding reduction in the home loan amount) is just one factor. There are other inducements to purchase that can also result in a reduction of the | more...