Mortgage Archives – Page 125 of 160

28

May

Mortgage

The Pros And Cons Of Remodeling During The COVID-19 Pandemic

The Pros And Cons Of Remodeling During COVID-19 Pandemic Nearly everyone has been impacted by the COVID-19 pandemic in some way. While many people are getting tired of being cooped up in their homes, the home improvement industry has actually been able to stay afloat. Furthermore, it is actually thriving. Because many people are trapped in their homes during the COVID-19 pandemic, many people are thinking about carrying out a home remodeling project. For those who are wondering about the prospects of such an undertaking, it is important to weigh the pros and cons.

The Pros Of Home Remodeling During The COVID-19 Pandemic

There are a few benefits that people should note about remodeling during this time. They include:

There is more time to plan out the project. With extra time, people can compare costs, take virtual tours of showrooms, and even check out some of the latest designs.
There are even some brick and mortar showrooms that are still open. While many people are nervous about venturing out during the COVID-19 pandemic, these showrooms are still maintaining proper social distancing measures to keep their staff and customers safe.
Finally, there are also a handful of discounts available to those who are remodeling during this time. Because they are eager for business, they are often wiling to slash the prices to help someone get their project done.

These are some of the biggest benefits for people to note; however, there are also a few drawbacks as well.

The Cons Of Home Remodeling During The COVID-19 Pandemic

Some of the disadvantages of trying to start a home remodeling project during this time include:

There might be a shortage of materials available to carry out the project. It might take time for companies to restock their inventory, delaying the start of the project.
While some items are cheaper, others are more expensive because the supply has dried up.
For those who might being a challenging financial situation during the pandemic, there is a risk of spending too much money as the project gets going.

For these reasons, it is important for everyone to carefully weigh the pros and cons of starting a home remodeling project during this time. While there are some attractive offers, everyone’s individual situation is different. People need to think about what is right for them.

27

May

By First Rate Financial Group

Mortgage

Some Millennials Are Finding Home Buying Overwhelming

Some Millennials Are Finding Home Buying Overwhelming Many millennials are reaching the age where they are thinking about buying homes for the first time. It turns out that many members of this generation are finding this process challenging. Even though the housing market is great for those looking to buy, surveys indicate that this generation also finds the process overwhelming.

Reports have been published showing that many millennials are planning to buy their first home in the next year, showing that owning property is still a strong part of the American dream. Furthermore, many millennials also know that this is a great time to buy. Why are millennials finding this process so challenging?

Student Loan Debt

One of the biggest reasons why millennials are having issues purchasing a home is student loan debt. When someone is looking for a home, any potential lender is going to take their existing debt into account. It is no secret that student loans are a major issue right now.

With numerous millennials saddled with student loan debt, this makes it hard to qualify for a mortgage. While other forms of debt are easier to pay back, student loan debt is not. Some millennials have student loan debt that looks like a mortgage.

A Poor Understanding Of Costs

Even though millennials may look at their rent payments as a solid barometer for their mortgage payment, there are other costs that millennials need to consider. These include real estate taxes, HOA fees, homeowners’ insurance, and potential repairs. Therefore, they might need to reset their expectations.

Comparison Is A Dangerous Temptation

Finally, too many millennials are tempted by what they know. Many millennials end up moving back into their parents’ house after they finish school. The job market can be tough and they think this is a great way to save money. On the other hand, this also means they might end up looking for a house that is similar to their parents’.

Many millennials have set the bar high for their first home. A property like their parents’ simply isn’t within the budget. An unwillingness to accept this makes it harder to find a home. On the other hand, there are affordable homes out there. Millennials simply need assistance to find them.

21

May

By First Rate Financial Group

Mortgage

Loan Programs For Lower Income Buyers

Owning a home may be the American dream, but for many who are in a lower income bracket, finding a loan can become challenging. Thankfully, there are several loan programs that can work well for lower income people considering homeownership. Here’s a closer look at some of these home loans designed to help people who have a low-to-moderate income find a way to buy a home.

FHA Home Loans

FHA home loans are loans backed by the Federal Housing Administration. Lenders are more likely to lend to “higher risk” borrowers through the FHA loan program because the loans have the FHA’s backing.

With the FHA loan, a borrower can have a credit rating as low as 500, as long as there is a reasonable explanation for it, and a fairly high debt-to-income ratio. According to the U.S. Department of Housing and Urban Development, these loans require only a 3.5% down payment, which can come from gifts, and have less stringent requirements for credit rating or income.

USDA Rural Development Loans

If you are shopping for a home in a small town or suburban area, you may qualify for the USDA rural development loan program. Only those borrowers who make no more than 115% of the average median income in their area qualify for this loan program, according to the United States Department of Agriculture.

USDA loans require no down payment and the loan has no debt-to-income ratio maximum. It has a low PMI fee even for a zero-down loan, and fair interest rates. For those who live in areas that qualify, the USDA rural housing loan simply makes sense.

97% Loan-To-Value Purchase Loans

One of the biggest challenges for lower income borrowers to overcome is the down payment, but the 97% loan-to-value loan makes that less of a concern. This program, which Fannie Mae and Freddie Mac have offered to help encourage more people to get loans, allows people to buy a home with just 3% as a down payment.

The 97% loan-to-value purchase loan is specifically for first-time buyers. Borrowers must not have owned a home within the last three years to apply.

This loan program offers fair interest rates and does not have stringent credit score requirements. Borrowers can use gift funds to pay for the 3% down payment if necessary.

As you can see, there are many home loans designed for lower income borrowers. If you are looking to buy a home but worry you can’t afford it, consider one of these options.