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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March 20, 2020

How To Avoid Foreclosure During The Coronavirus

By Joe Wallace

Are you afraid of losing your home due to diminished income or a lack of income related to closures, furloughs, and layoffs due to coronavirus prevention? The global pandemic caused by the coronavirus has created major financial problems and governments worldwide struggle to control the damage. Mortgage rates have fluctuated wildly between incredible lows and one-year highs, the Fed has made emergency interest rate cuts, and hundreds of companies have been forced to endure waves of closures or reduced hours. Affording your mortgage payment in times like these is difficult; it’s easy to fall behind on your financial obligations. Do you know what to do if you are in danger of being late or missing a mortgage payment on your FHA home loan? Act Now To Avoid More Financial Damage | more...

Build on your own lot. Construction loan basics

March 16, 2020

Is It Safe To Apply For A One-Time Close Mortgage During The Coronavirus?

By Joe Wallace

Is it safe to apply for a One-Time Close construction loan during the coronavirus outbreak? Construction loans are offered for those who wish to apply for a home loan but don’t want to purchase existing construction. These loans are available for FHA borrowers, VA borrowers, even USDA applicants who meet program requirements may be approved. But what do you need to know about Construction loans during a time of national crisis such as the coronavirus? You May Need To Allow For Additional Processing Time Permitting and other official paperwork may be slow to be processed or approved depending on the government agency, demand, and local rules that may be in effect during a quarantine period, “stop movement”, or related restrictions aimed at slowing the spread of contagion. Don’t assume you | more...

March 12, 2020

Mortgage Rate Trends: Moving Higher

By Joe Wallace

Mortgage loan interest rates dipped to incredible lows, with FHA mortgage rates falling below three percent last week. However, this week mortgage loan interest rates are moving upwards due to multiple factors having to do with bond markets, mortgage-backed securities, etc. What does the average borrower need to know? Last week we discussed the possibility that rates could move higher at any time. That discussion is now playing itself out with FHA mortgage loan interest rates now back above the three percent zone at a reported 3.25% best-scenario rate assuming an ideal borrower with outstanding FICO scores and other financial qualifications. Those who were ready to make an interest rate lock commitment with their lender but instead decided to “float” rather than lock in a mortgage loan interest rate definitely | more...

March 10, 2020

Is It Safe To Go House Hunting During The Coronavirus Outbreak?

By Joe Wallace

Is the housing market is in “disarray” in the wake of the coronavirus? Some think so, sharing stories of lenders refusing new loans, mortgage rates moving contrary to their traditional patterns in the presence of influences that normally tend to put upward or downward pressure on those rates, etc. And then there’s the coronavirus itself, bringing cancellations, disrupted travel plans, and slow sales due to reduced demand. But even with all this, house hunting and real estate sales continue. But what can a home loan applicant do when they are afraid of catching coronavirus (however justified those fears may or may not be) or even just the garden-variety flu? Technology provides the answer for some in the form of the virtual real estate tour. Virtual tours can take the form | more...

March 5, 2020

HUD Announces Settlement In California Fair Housing Sexual Harassment Case

By Joe Wallace

Some renters and house hunters are not aware that sexual harassment from someone at any stage of the housing process can be considered a violation of federal law. Did you know that the Fair Housing Act forbids landlords and others involved in the housing industry from sexually harassing those in search of housing (bought or rented)? A recent settlement announced by the Department of Housing and Urban Development highlights this issue. According to HUD, the agency recently approved a conciliation agreement, “requiring Ronoel Romero, Blanca Romero, and Mario Prudencio, the owners and manager of a Bakersfield, California, apartment complex, to pay $14,500 to several female residents”. The required payment is part of the settlement. Fair Housing Act laws forbid housing providers from sexually harassing tenants. The prohibition includes “creating a | more...

March 3, 2020

Mortgage Rate Trends: Historic Lows In Early March

By Joe Wallace

There are times when mortgage rates are low due to any number of factors. And then there are situations where rates fall so low that even people in the mortgage industry start reviewing their refinance options. Now is one of those times with mortgage rates for FHA and VA loans falling below the three percent threshold into the high two percent range. FHA loan and refinance loan rates, at these numbers, promise a more affordable home loan and they provide the most benefit for those who plan to keep their home for a long time and pay a significant portion of the mortgage (if not the whole thing). Those who want to buy and sell quickly won’t reap the same long-term financial benefits as those who buy and keep the | more...

February 28, 2020

Mortgage Rate Trends: Eight Year Lows

By Joe Wallace

With mortgage loan interest rates at eight-year lows, coronavirus fears, and a lot of market watching in the second month of 2020, it seemed like a good idea to resume a feature we had posted here for a good long while; a regular look at mortgage loan interest rate trends. And those trends are well worth watching at the moment; FHA and VA mortgage loan rates are advertised (at the time of this writing) at a best-execution 3.0%. You read that correctly, some FHA lenders are reporting mortgage loan rates at a flat three percent. That requires some caveats; not all lenders offer that rate, not all borrowers qualify for that rate, and not all lenders adjust their mortgage loan interest rates in the same way, the same amount, or | more...

February 27, 2020

Low Home Loan Interest Rates: How Long Will They Last?

By Joe Wallace

Mortgage loan interest rates and the coronavirus–how low can they go? COVID-19 and coronavirus headlines have, via investor reaction to the headlines and the situation in general, greatly affected mortgage loan interest rates, pushing them to lows not seen in quite some time. Investors are putting more funds in safer investments, which can serve to put downward pressure on mortgage loan interest rates. The rates have fallen to incredible lows in 2020; not many expected rates to fall THIS low and some homeowners are scrambling to refinance and take advantage of lower rates and less costly monthly payments. Some borrowers might feel as if maybe they owe it to themselves to try to buy or refinance with mortgage rates as low as they are now; 3.25% for FHA and VA | more...

February 25, 2020

Corona Virus Headlines And FHA Mortgage Rates

By Joe Wallace

The headlines recently have said it all; “Coronavirus fears cause mortgage rates to plunge to 8-year low”. That’s courtesy of CNBC, not one of the many many amateur finance blogs or fly-by-night junk stock purveyors. What’s the reality behind the headline? FHA and VA home loan rates for Monday, February 25 2020 were reported at 3.25%, which is definitely one of the lowest points the rates have fallen to in the last several years. There is speculation that rates might broach new territory where historic lows are concerned; whether this actually happens or not remains to be seen. Why do interest rates move higher and lower? There is no single factor, just as there is no single factor that goes into a home loan transaction; it’s a complex operation featuring | more...

February 19, 2020

For Borrowers Who Need Down Payment Help

By Joe Wallace

Buying a home is a major investment. And unless you are applying for a need-based loan such as a USDA mortgage, or if you are a qualifying veteran or military member applying for a VA mortgage, you will need to come up with a down payment. Borrowers who use conventional loans typically make larger down payments than those who use government-backed mortgage loans like FHA loans. Why? Because government-backed mortgages carry an advantage for the lender; they are guaranteed against loan default and foreclosure. Should the worst happen after the loan has closed, the government pays the lender a portion of the mortgage. It’s called a claim when this happens, and such claims are a risk of doing business in the mortgage market. Reduced risk for the lender is a | more...