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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October 9, 2020

FHA Appraisal Refunds?

By Joe Wallace

Some borrowers don’t understand the nature of the home loan appraisal process and as a result, they often ask a common question if the results of the appraisal don’t come back as expected. The process works like this–a buyer goes looking for a home to purchase with an FHA mortgage. They find a home they want to buy and before the home loan can be approved, there is a required FHA appraisal. The appraisal is a tool for the lender, not the borrower, to help establish the market value of the property and insure the house meets minimum standards. The home loan amount is based in part on the appraisal and homes don’t always appraise for what the borrower or seller thinks it should. In situations where the appraisal comes | more...

October 6, 2020

The FHA Refinance Loan

By Joe Wallace

Mortgage loan interest rates have, at the time of this writing in October 2020, been hovering at or near historic lows, though in recent days FHA mortgage loan interest rates have moved out of the two percent range and into the three percent zone. Many watched mortgage rates dip below that three percent zone and there were plenty of home owners interested in taking advantage of those low rates to refinance their mortgages. There are many reasons to consider refinancing including saving money over the lifetime of the loan by paying a lower interest rate and/or getting into a lower monthly mortgage payment. If you are ready to commit to a refinance loan, you have multiple options to refinance out of a conventional loan or other non-FHA mortgage. You can | more...

October 5, 2020

Can I Get A Second FHA Appraisal If I Don’t Agree With The First One?

By Joe Wallace

Can I get a second FHA appraisal if I don’t agree with the first one? This is a common question, normally asked if the appraised value of the home comes in differently than a buyer or seller expects it to. FHA loan rules don’t allow a borrower to be forced into purchasing a home where the appraised value is lower than the asking price, so it’s an issue that can definitely affect a home loan transaction depending on what the borrower wishes to do in such cases. Can I Order A Second FHA Appraisal? FHA appraisals are ordered by the lender, so the borrower cannot initiate any second appraisal requests. In any case, the lender is restricted on how and when a second appraisal may be ordered. Specific Restrictions On | more...

September 29, 2020

Gathering Your Home Loan Documents And Preparing For The Application

By Joe Wallace

Are you interested in applying for an FHA home loan this year or in early 2021? If so, it’s handy to make a checklist of the items you will need to have ready to submit to your participating FHA lender. What do you need to complete submit your FHA mortgage loan application? The lender will need a variety of information from you including documentation related to your job, your credit, and your lender will also ask you for tax records. Some balk at being asked to provide federal tax return information, but this is a requirement of doing business with your lender for a major investment. What do you need to apply for an FHA home loan? Proof of employment Proof of income Tax records (be ready to submit two | more...

September 24, 2020

Is Your Credit Report Hurting Your Chances At Loan Approval?

By Joe Wallace

American consumers are entitled by law to a free credit report from each of the three credit reporting agencies. This is a valuable resource all potential home loan applicants should take advantage of as early as possible in the home loan planning stages. However, this is only a first step into a larger world. Credit monitoring is, in the age of hackers and rampant identity theft, a necessity for borrowers who want to make certain their credit will be enough to justify home loan approval. And credit monitoring is not the sort of thing you want to start late in the game–you’ll want to give yourself plenty of time to review your credit and work on it during the planning stages. How long should that planning be? Your home loan | more...

September 23, 2020

Getting Ready For An FHA Home Loan Refinance

By Joe Wallace

Are you interested in a lower mortgage payment or interest rate on your home loan? Are you looking to convert the equity you’ve built up in your home into cash? There are plenty of reasons to consider refinancing–do you need out of an adjustable-rate mortgage (ARM) and into a fixed-rate loan? All of these options are open to financially qualified borrowers who apply for an FHA refinance loan and you do NOT have to be a first-time homebuyer or first-time homeowner to be approved for an FHA refinance loan. Many of the same steps you took for your original home loan application are applicable when you begin planning to refinance your mortgage; you should pull your credit reports are early as possible in the planning stages. Many consumers find it | more...

September 18, 2020

FHA And HUD Announce Mortgage Loan Disaster Relief For Borrowers In Oregon

By Joe Wallace

The FHA and HUD have announced disaster relief for home owners with FHA mortgages in the recently-declared federal disaster areas there. Wildfires have destroyed massive amounts of property in the state of Orgeon and other areas in the western part of the United States; affected states have been reviewed for federal disaster declarations as a result. The U.S. Department of Housing and Urban Development has announced disaster relief for FHA borrowers for the following Oregon counties. Clackamas Douglas Jackson Klamath, Lane Lincoln Linn Marion The federal disaster declaration means HUD can offer foreclosure relief to FHA borrowers. That relief starts with foreclosure relief in the form of a 90-day moratorium on foreclosure actions on affected borrowers, and there is also help with FHA loans to repair or replace homes damaged | more...

September 16, 2020

New FHA Home Loan Guidelines Announced

By Joe Wallace

The FHA and HUD have written permanent new COVID-19-related loan approval guidelines for those who need to apply for an FHA mortgage but come to the home loan application process with a previous mortgage forbearance. Ever since the coronavirus emergency came to the United States, the FHA and HUD have offered borrowers mortgage relief, and now that relief and measures similar to it won’t be a liability for those who need to apply for a new FHA mortgage. Other forms of coronavirus relief have been temporary but not this time. The new rules announced by the FHA are announced as a permanent modification to FHA loan rules that instruct the lender on how to approve new mortgage loan applications for borrowers who have applied for home loan forbearance in the | more...

September 14, 2020

FHA Refinance Loan Tips

By Joe Wallace

During the COVID-19 pandemic, many borrowers took advantage of foreclosure moratoriums and other financial relief measures to save their homes from going into mortgage default. Other borrowers may choose to explore their refinancing options to get a lower interest rate or other advantages that can help them financially over the long term. If you are thinking about a refinance loan, there are some tips you should know that can help you make the most informed choice about refinancing. Remember that there are many different options if you want to refinance a home loan. Cash-out refinancing is one option, borrowers can also select no cash-out versions and a borrower with an existing FHA mortgage may find a benefit using something called the FHA Streamline Refinance, which has no FHA-required appraisal or | more...

September 9, 2020

FHA Home Loans: The Occupancy Rules (And More) You Need To Know

By Joe Wallace

Can you use an FHA home loan to buy investment property you plan to rent out to others? This is a question many wonder about, and the answer is tied to the FHA loan occupancy requirements for these mortgages. FHA loan rules for all single-family home loans are described in the lender’s handbook, commonly known as HUD 4000.1. FHA loan rules include a variety of instructions for the lender that direct the financial institution on how to process and approve FHA home loans. But FHA loan rules don’t just apply to lenders and other mortgage professionals, some regulations are also written for the borrower. Did you know that FHA single-family mortgage loans are intended for owner-occupiers only? The rules listed in HUD 4000.1 are clear–the borrower must take possession of | more...