May 22, 2019

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Articles by: Joe Wallace

Joe Wallace - Staff Writer

By Joe Wallace

May 22, 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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What Is An FHA REO Home?

What Is An FHA REO Home?

The FHA Real Estate Owned program or FHA REO program has gotten some media attention lately, which likely has more people wondering what exactly this program is. The HUD REO program, sometimes known as HUD Homes, is described on the FHA / HUD official site as “…a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim”. The HUD Home Store is the official HUD site used to list these HUD REO homes for sale to the public, real estate brokers, state and local governments and nonprofit organizations. What does the general public need to know about buying HUD REO homes? According to HUD, | more...

 
FHA One-Time Close Construction Mortgage Basics

FHA One-Time Close Construction Mortgage Basics

FHA home loan options are not limited to existing construction housing. FHA borrowers, including first-time home buyers, have the option to apply for a FHA One-Time Close Construction loan. This allows any borrower who financially qualifies to have a home built for them from the ground up. FHA One-Time Close loans have some basic requirements; some of these are FHA loan program rules, but others are unique to an individual lender. For example, FHA One-Time Close mortgages, also known as FHA OTC loans, technically allow a borrower to build a home with more than one unit. But many lenders may restrict these mortgages to single-unit properties. Or they may not permit the financing of certain closing costs, require higher FICO scores, etc. Much depends on the rules of the specific | more...

 
FHA Loan Appraisal Questions: Why Is Peeling Paint A Problem?

FHA Loan Appraisal Questions: Why Is Peeling Paint A Problem?

One common question about FHA appraisals involves the issue of peeling paint. This can be a problem for some homes, especially those built on or before the year 1978. Borrowers want to know why the appraiser reviewed the home (the appraisal is not a property inspection) and required a correction of a peeling paint issue as a condition of loan approval. The borrower’s question in these cases is normally a variation on, “It’s just a cosmetic issue, why is the appraiser making a big deal out of peeling paint?” Unfortunately, for homes (including condo units) built on or before 1978, peeling paint is not just a cosmetic problem due to the use of lead paint in those construction projects before it was recognized as a safety hazard. FHA home loan | more...

 
Things That Keep You From Getting An FHA Mortgage

Things That Keep You From Getting An FHA Mortgage

What keeps some borrowers from getting an FHA home loan or refinance loan? In some cases the answers are easy, in others they are more complicated. Learn what some of the red flags are for lenders and prepare yourself to get the FHA home loan you need. Automatic Denial Of FHA Home Loans: When Does It Happen? FHA home loans are automatically denied for a variety of reasons. Borrowers with FICO scores lower than 500 are automatically denied, as are borrowers who have applied for a mortgage while they are in a bankruptcy that has not been discharged yet. U.S. citizenship is not required for an FHA home loan, but those who apply without legal standing of some kind (anyone in the country illegally) is automatically turned down for the | more...

 
How To Refinance Your Home

How To Refinance Your Home

Do you know how to refinance a home loan? If you need to refinance or want to explore your options, there are a variety of mistakes to avoid. Those who don’t check their credit first, those who don’t understand that a refi loan is treated in a similar manner to the original mortgage, and those who don’t shop around for a lender set themselves up to pay more for a loan that is supposed to benefit them. Avoid these common mistakes when exploring your refinance loan options: Refinance Loan Mistakes: Not Checking Your Credit Scores When you applied for your original mortgage, your credit reports were an important part of the process. They will be again, in much the same way in most cases. Know your credit scores and financial | more...

 
Fact And Fiction About FHA Home Loan Approval

Fact And Fiction About FHA Home Loan Approval

First-time home buyers and experienced home owners alike may have misconceptions about what it means to get an FHA loan. Here are some of the most common facts and fictions about buying a house with an FHA loan. FHA Loan Fact: FHA Mortgages Have Lower Down Payments and Credit Score Requirements 3.5% down is all that is required for borrowers with qualifying FICO scores. FHA loan minimum standards are more forgiving that some conventional mortgages but you will need to see whether lender standards allow certain lower credit scores to get loan approval with a higher down payment. Lender standards apply in addition to FHA loan minimums. But the fact is, your lender has the ability to work with your FICO scores in many cases. FHA Loan Fiction: You Have | more...

 
FHA Home Loans: Things To Do, Things Not To Do

FHA Home Loans: Things To Do, Things Not To Do

FHA home loans, like all mortgages, represent a major investment for a borrower. There are things you should do in the FHA home loan process to get closer to loan approval, and there are things you should definitely NOT do as a new home buyer. Do you know what they are? FHA Loans: DO Work On Your Credit As Early As Possible Your FICO scores will determine the interest rate you are offered and the amount of the down payment required. It’s best to examine your credit report at least a year ahead of your loan application to make sure you have plenty of time to work on credit issues. FHA Home Loans: DO NOT Run Up More Debt Prior To Your Home Loan Opening new credit cards, adding more | more...

 
Do You Qualify For An FHA Mortgage As A First-Time Home Buyer?

Do You Qualify For An FHA Mortgage As A First-Time Home Buyer?

Do you qualify for an FHA home loan as a first-time home buyer? There are several things you can check to see whether your credit and employment situations will allow a lender to justify approving your mortgage loan application. Buying real estate means making a major investment; potential borrowers who are not financially ready for this investment should take their time and prepare for it and commit when they are fully prepared. What does it take to get an FHA home loan approved? Stable Employment If you are considering applying for an FHA home loan without at least two years of work history, it may be a wise idea to consider delaying your application until you do have at least 24 months of work on your record. Anything less than | more...

 
FHA Credit Score Eligibility: FICO Scores You Need To Qualify For A Loan

FHA Credit Score Eligibility: FICO Scores You Need To Qualify For A Loan

How low can your credit score go before you are not eligible for an FHA home loan? Borrowers get confused on this point but there is an easy way to remember what it takes to qualify for an FHA mortgage when it comes to the FICO score numbers. There are two requirements-that is what confuses many first-time home buyers. They hear that FHA home loan rules say one thing, and assume that is the final word on the matter. But it’s not. FHA loan rules state that borrowers with credit scores starting at 500 or better are technically eligible for an FHA home loan. Those with FICO scores between 500 and 579 are required by the FHA to make a 10% down payment. Those with FICO scores at 580 or | more...

 
FHA Home Loan Basics For First-Time Home Buyers

FHA Home Loan Basics For First-Time Home Buyers

First-time home buyers should know as much about their home loan options as possible going into the application process. FHA home loans are a good option to consider when buying your first real estate-do you know how flexible the FHA home loan program is? FHA Home Loan Basics For New Borrowers FHA home loans are intended for owner-occupiers who want to purchase a home at least one person obligated on the mortgage will occupy as the full-time residence. FHA home loans are not need-based mortgage loans, so there is no income cap or other limitations on who can apply. Some people confuse FHA home loans with USDA mortgages, which are governmnent-backed mortgages that do require income caps and are need based, unlike FHA mortgages. Who You Borrow Money From With | more...