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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April 17, 2020

Home Loan Terms Defined: Conforming Loans

By Joe Wallace

Are you new to the idea of owning a home? Are you interested in applying for a home loan when the time is right but aren’t sure about how it all works? First-time home buyers aren’t the only ones who can apply for FHA mortgages, but they often apply for FHA purchase loans and construction loans thanks in part to the FHA home loan program’s reputation for being helpful for those who need a lower down payment, or who have past credit issues, or past credit issues. Some FHA home loan jargon is confusing at first, but take the time to learn what some of these things mean and you’ll find that buying a home isn’t as daunting as it might seem when you were still in the learning stages. | more...

April 15, 2020

Facts About FHA Mortgage Loans

By Joe Wallace

FHA home loans and refinance loans are complex, and the less you know about how the process works, the harder it can be to make sense of your loan. What you don’t know about home loans can make a big difference in the price you pay, the terms you accept, and more. FHA Loans: Credit Checks Are Very Important Credit counts. How much do you want to pay in interest and money up front for the down payment? Your credit score affects the cost of your loan. How can you get financially ready for your home loan application? Do not begin the FHA loan application process with fewer than 12 months of on-time payments. You should make on-time, every time payments on all financial obligations with no late or missed | more...

April 13, 2020

Are You In Trouble On Your FHA Mortgage Loan?

By Joe Wallace

Are you having trouble making your FHA home loan payments? Is the coronavirus emergency made it financially difficult to stay current on your mortgage loan? There have been a variety of relief measures proposed and announced, but many of them are more general types of assistance. The FHA and HUD published an announcement discussing COVID-19 related mortgage relief for FHA borrowers affected by the coronavirus outbreak. This relief is specifically for those with mortgage loans guaranteed by the FHA including mortgages, reverse mortgages, etc. These measures were a welcome development for many FHA mortgage borrowers, but it is crucial for home owners to understand that until you contact your loan servicer, you cannot assume it’s safe to delay payments. You MUST make arrangements with your lender to claim the mortgage | more...

April 9, 2020

FHA Announces Updated COVID-19 Guidance For Participating Lenders

By Joe Wallace

The FHA and HUD have announced policy changes to the FHA Single-Family home loan rulebook, HUD 4000.1. These changes were announced in FHA Mortgagee Letter 2020-06 and address loss mitigation procedures specifically for COVID-19 related economic hardship. The prior version of HUD 4000.1 did not include specific guidance for lenders trying to help borrowers avoid foreclosure due to coronavirus issues; the old instructions are updated to include policies for lenders to help borrowers via CARES Act measures signed into law to help struggling companies and workers. The new additions to HUD 4000.1 include a new Section addressing the “Presidentially-Declared COVID-19 National Emergency” guidance for lenders, which is effective immediately takes precedence over disaster relief guidance issued prior to the pandemic. FHA loan rules for presidentially declared major disaster areas in | more...

April 6, 2020

Did The FHA Raise FICO Score Requirements For Single-Family Home Loans?

By Joe Wallace

Did the FHA and HUD increase the minimum FICO score standards for Single-Family home loans, refinance loans, and reverse mortgages? At the time of this writing, the coronavirus pandemic is still affecting most industries across America including the real estate and mortgage loan sectors. You may read news stories about higher credit requirements making it tougher to qualify for a mortgage in the era of coronavirus; these stories may be accurate in their reporting of higher FICO score requirements at the time of this writing, but who is responsible for those requirements? The lowest FICO score technically possible according to the FHA to qualify for a loan (one with more expensive terms) is 500. That is the lowest FICO score possible to still qualify for a mortgage, on paper. Your | more...

April 2, 2020

HUD Announces New Mortgage Relief Options For FHA Borrowers Affected By COVID-19

By Joe Wallace

The coronavirus emergency has created difficult financial times for most Americans. Many wonder where they will find the money to meet their financial obligations including mortgage payments. Those who have FHA home loans should contact their loan servicers right away due to the latest round of coronavirus relief measures aimed at helping FHA borrowers save their homes from loan default and eventual foreclosure. The Department of Housing and Urban Development has provided a new coronavirus mortgage relief package for FHA borrowers above and beyond the original 60-day foreclosure moratorium issued previously. If you have an FHA mortgage, refinance loan, or One-Time Close Construction mortgage and are experiencing financial hardship as a result of the COVID-19 outbreak, you may qualify for certain relief measures that took effect April 1, 2020. Borrowers | more...

March 31, 2020

FHA and HUD Change Loan Approval Requirements For Coronavirus

By Joe Wallace

The FHA and HUD have announced short-term alterations to appraisal and approval policies for single-family forward mortgages during the coronavirus outbreak. The changes, originally set to expire on May 17, 2020, address issues involving how appraisers review their properties, and how lenders must reverify borrower financial data before closing time. The changes to appraisal requirements (exterior-only inspections allowing the appraiser to work without being at risk of infection) were a big part of that, but not the whole substance of the policy changes. Reducing the risk to appraisers is one thing, but some of the measures are intended to streamline loan approval in a time of crisis. The FHA/HUD official site press release explains that certain measures were needed to, “maintain the stability” of the FHA Single-Family Home Loan program, | more...

March 27, 2020

Mortgage Loan Approval During The Coronavirus

By Joe Wallace

Buying a home is more complicated in the era of the coronavirus. Borrowers face social lockdowns, restricted movement, and fears of infection. And the economy is feeling the effects of this, making markets more volatile, interest rates fluctuating daily (far more than usual), and other issues. There is a lot of speculation about the future of the mortgage industry, not so much a question of how it will survive (it will), but more about how the industry will look going forward. How hard will it be to qualify for a home loan or any major line of credit. Will FHA borrowers of the future need to bring higher credit scores and more dependable-looking credit history to the loan application process? To quote the old Magic 8-Ball toy, “Signs point to | more...

March 26, 2020

Mortgage Industry Seeks Federal Relief For Borrowers

By Joe Wallace

The coronavirus pandemic created financial chaos across the globe; America is on the verge of a massive financial bailout for consumers and industry to the tune of $2 trillion or more. States, lenders, and the federal government all have a keen interest in helping homeowners avoid financial crises, loan default, and foreclosure. And now the mortgage industry has rallied to petition the White House for funds to assist homeowners. On March 24, 2020, HousingWire.com ran a press release discussing a letter sent to the White House asking for mortgage relief for borrowers including delayed payments and interest. The proposal includes the following benefits: A 90-day delayed payment option for mortgage payments; A proposed one-year loan forbearance period; Payment forbearance protections such as no negative credit reporting or collections; Introducing reduced | more...

March 24, 2020

Mortgage Rate Trends: The Three Percent Range

By Joe Wallace

Mortgage loan rates have been on a wild ride since the advent of the COVID-19 coronavirus outbreak; for a time FHA mortgage loan rates dipped below the three percent threshold. How wild has the ride been? FHA mortgage rates hit a 52-week range of rates between the lowest at 2.75% at the low point during the outbreak and just over 4% at its highest moment in the 52-week range. What does that mean going forward? For the average consumer, not much. It is pure speculation to say we may or may not see rates dip below the three percent range but borrowers should likely assume that those rock-bottom rates are gone and proceed without the temptation to float rather than lock in a mortgage rate commitment with the lender in | more...