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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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...

February 18, 2020

Income Rules For FHA Loan Approval: What You Need To Know Today

By Joe Wallace

FHA home loans, like other mortgages, require the lender to make sure their applicants have enough income to be able to realistically afford the loan. This is known as “qualifying income” and the lender is only permitted to use earnings that meet FHA standards. Those paychecks must be stable, and likely to continue for the purpose of debt-to-income ratios and other loan approval procedures. Those regulations apply regardless of whether you are buying existing construction or want to build a house on your own lot using an FHA construction loan so it’s important to be familiar with them. Military Pay And Earnings: Yes, military people have access to the GI Bill and the VA home loan program, why would they need an FHA home loan? There are actually many reasons, | more...

February 13, 2020

Get A Better Home Loan Deal By Asking One Question

By Joe Wallace

Some people are born negotiators, and they don’t mind telling the rest of the world about it. But more people seem to feel uncomfortable with the idea even when it’s in their best interest to do so. Are you trying to buy a home? If so, you’ve already committed to spending a lot of money to make this important investment. Why pay MORE if you don’t have to? Negotiating the details of your home loan can save you money and get you a better deal. Does it have to be uncomfortable and awkward? No. Actually, you can negotiate quite successfully by asking one simple question, but that question needs a bit of homework to ask properly. What’s the secret to negotiating a loan? What is that one question? before we | more...

February 7, 2020

FHA Refinance Loans And Current Interest Rates

By Joe Wallace

Is your mortgage payment too high? Need to refinance to bring down the monthly cost? Recent headlines about mortgage loan interest rates have contained the word “refinance” a lot lately; world events including the Wuhan virus, impeachment proceedings, and other news have conspired to help push mortgage rates lower. Those things themselves do not directly influence mortgage loan interest rates, but investor behavior DOES. And because of that investor behavior, we have seen FHA loan interest rates move significantly lower. Some writers refer to that move in terms of historical context. “Mortgage Rates At Three Year Lows!” screamed some headlines in early 2020. One consequence of those low rates? A surge in refinance loan applications as consumers rush to take advantage of the lower interest rates to save money on | more...

February 5, 2020

What Affects The Cost Of Your Home Loan

By Joe Wallace

Shopping around, haggling over terms, and negotiating your home loan are not unusual practices, but some are not comfortable with trying them. Want an advantage in the home loan process? Learn how to do some low-key bargaining as it can save you money and time over the long haul with your home loan. Negotiating with the seller, for example, could get you extra money (provided by the seller) toward closing costs; up to six percent of the sale price of the home! But haggling isn’t the only factor that can affect the cost of your home loan. The Wuhan virus, discussed in the news as a coronavirus or a “coronavirus outbreak”, affected mortgage loan interest rates and sent them to the lowest levels we’ve seen in some time. The virus, | more...

January 28, 2020

One-Time Close Construction Loan Options For Veterans

By Joe Wallace

There are reasons why some veterans don’t use their VA loan benefits to buy a house at that moment. The reasons for that, we’ll discuss below. But it is important for military members and their families to know the options they have when looking for a home to build on their own lot. There are plenty of options; which type of One-Time Close construction loan to choose from? Those who have entitlement to use for a VA mortgage loan to build a home would seem to choose to do so based on the zero down home loan option all by itself. Add the lack of a mortgage insurance requirement, and the fact that veterans who receive (or are eligible to receive) VA compensation for service-connected medical issues are exempt from | more...

January 22, 2020

Closing Day On Your FHA Home Loan

By Joe Wallace

What do you need to know about closing day for your FHA home loan? There is plenty of advice out there including the idea that you should not schedule loan closing AND moving trucks on the same day. But why? Because there are some variables that could delay your closing day, and you don’t want to get stuck juggling TWO rescheduling needs instead of just one (to say the least). Closing Day Delays Your closing day could be rescheduled for any number of reasons–there could be an issue with the title, your appraisal could come in too low, you may pay for the home inspection only to find that there are problems with the home not covered by the appraisal. Some issues are merely delays. Others could develop into a | more...

January 16, 2020

Do You Need To Apply For An FHA Mortgage?

By Joe Wallace

Do you need to apply for a home loan to buy real estate in 2020? FHA mortgages feature a low minimum down payment, allow seller contributions to closing costs, and even permit down payment assistance from approved sources. What does it take to apply for an FHA mortgage? You will need proof of income, tax records, and bank statements. Borrowers also need to have a credit history of some kind, even if non-traditional. FHA loan rules allow non-traditional credit, but lender standards will be very important. FHA Loan Approval Requirements FICO scores between 500 and 579 for a 10% down payment, or FICO scores at 580 or higher for the lowest down payment of 3.5%. You will also need 24 months of employment history as a general rule, and you | more...