Month: May 2024

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Todman said the bulk of demand comes from millennials forming families, planning to own homes and not wanting to pay rent anymore. But they face competition from large institutional investors in the housing market.

“There’s been a fair amount of supply that’s been removed from inventory when we think about the large institutional investors who are buying and selling single-family homes. And that’s not a criticism but an observation,“ Todman said. “There is a number of the short-term rental market that has also taken a lot of typically available homes off the market as well.“

Adrianne Todman

Todman said that HUD has a role in incentivizing the private marketplace to build more starter homes through its programs and grants. It’s working in partnership with mayors and the U.S. Department of the Treasury. But there’s also a need to make sure people can access these homes, including “a whole generation of Black and brown people who are completely left out.“

Before joining HUD, Todman was the CEO of the National Association of Housing and Redevelopment Officials (NAHRO) from 2017 to June 2021. She also served as executive director of the District of Columbia Housing Authority (DCHA). 

Todman is succeeding Marcia Fudge, who announced her resignation from office on March 11. Fudge has since joined law firm Taft as a partner and chair of public policy. 

“I mentioned before: I’m a practitioner. I like to look at rules and make a determination on which ones make a whole lot of sense and which ones are just there for the sake of being a rule,“ Todman said. She added that she’s working with the Biden administration on streamlining things and having the rules either “harmonize together or just get out of the way.“

One of the most recent steps by HUD was to double the fee paid to servicers for assumable mortgages to $1,800. These government-backed loans allow qualified buyers to purchase a home by assuming responsibility for the sellers’ mortgage terms, including the current balance and interest rate. It can make sense in the current environment since a buyer can assume a seller’s 2% to 4% mortgage rather get a new one at 7%.

HUD is ensuring that “we’re getting our money out the door,“ Todman said.

But, according to Todman, the current problem is that “we’ve not had a housing strategy for this country,“ which is essential since the housing market has been “a roller coaster.“ The responsibility for this should be on the departments “with housing in their names,“ she added.

“One truth is that housing isn’t Democrat or Republican. Everybody needs it,“ Todman said. “There are questions about how to get there. But at the end of the day, when I talk to my conservative friends, I think that there’s more alignment about what we need for housing … and maybe disagreements about the product.“

Todman mentioned the Neighborhood Homes Tax Credit, which the Biden administration announced during the president’s State of the Union address in March. The credit would be directed to “build or renovate affordable homes for homeownership, which would lead to the construction or preservation of over 400,000 starter homes.“ 

This tax credit would be a “means to propel into a better supply situation,“ but we “can’t get a bill from Congress,“ Todman said. 

Source: housingwire.com

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Budget travelers rejoice. Just in time for summer travel to really kick off, major U.S. low-cost carriers Spirit Airlines and Frontier Airlines made big pricing updates and dropping change and cancellation fees.

Frontier and Spirit offer low base fares, but any add-ons for basic amenities like seat selection or carry-on luggage come at a price. The total cost sometimes rivals other full-service airlines. And until now, changes and cancellations have also come at a steep cost.

This move follows a growing trend in the airline industry in response to the COVID-19 pandemic. Previously, Southwest was one of the only domestic airlines not to charge any change fees. But big airlines like American Airlines, Delta Air Lines, and United Airlines all stopped charging change fees on most domestic flights (with the exception of basic economy fares) during the pandemic. Now budget airlines are following suit.

Here’s what you need to know about these pricing updates.

Frontier Airlines pricing update

Frontier overhauled its pricing and services, including eliminating change fees for most fares and offering new ticket options with included benefits.

Four fare classes

Here’s a breakdown of their newly defined fare options, all presented upfront when you book:

  • Basic Fare: For budget-conscious travelers, this option includes a personal item for your essentials. Additional amenities can be purchased if needed, providing flexibility.

  • Economy Class: Offers a carry-on bag and a standard seat assignment, balancing affordability and convenience.

  • Premium Class: Offers preferred seat selection (subject to availability), a carry-on bag and priority boarding with guaranteed overhead bin space.

  • Business Class: Offers extra legroom and comfort in UpFront Plus seating (when available), including a guaranteed empty middle seat. This fare also includes a carry-on bag, two checked bags with a higher 50-pound weight limit and priority boarding with guaranteed overhead bin space.

No change or cancellation fees

Frontier eliminated change and cancellation fees for most fares (Economy, Premium, and Business) to give travelers more flexibility.

Moving forward, you won’t pay any fees to change your ticket or itinerary, however you’ll be responsible for any difference in price between your original ticket and the new fare. You will not get a refund or travel credit if your new fare is lower. This also applies to any changes you make with optional add-ons.

🤓Nerdy Tip

If the new fare you are looking at is lower than the original fare, consider canceling your itinerary instead of changing it. By canceling, you’ll receive a travel credit good for up to 12 months, versus forfeiting the difference in price.

“For Less” price guarantee

Frontier also announced a new “For Less” price guarantee, promising customers 2,500 miles if they find a cheaper flight on the same route and date after booking with Frontier.

To claim your 2,500 miles under the “For Less” guarantee, fill out the claim form within 48 hours of booking your Frontier flight if you find a cheaper option elsewhere meeting specific criteria (same route, dates, travel type). Miles are awarded after your qualifying Frontier flight.

See Frontier’s website for full details and restrictions.

Spirit Airlines pricing update

Following Frontier’s announcement of these big changes, Spirit Airlines dropped change and cancellation fees for individual bookings. Before this change, fees ranged anywhere from $69 to $119 depending on the fare class and how close to departure the change was made.

Now, changes can be made up to one hour before scheduled departure. Canceled fares will receive a reservation credit, valid for one year.

Spirit hasn’t made sweeping changes to its pricing like Frontier, but there could be more updates to the passenger experience down the road. For now, the airline’s basic flying experience remains the same. While change and cancellation fees are gone, you can still expect to pay extra for checked bags and seat selection.

(Top photo courtesy of Frontier Airlines)

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:

Source: nerdwallet.com

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We included these products chosen by Porsha Williams because we think you’ll like her picks at these prices. Porsha is a paid spokesperson for the Amazon Influencer Program. E! has affiliate relationships, so we may get a commission if you purchase something through our links. Items are sold by the retailer, not E!. Prices are accurate as of publish time.

Do you ever find yourself binge-watching Real Housewives of Atlanta, secretly wishing your living room had that same level of glam? Well, Porsha Williams is here to make your home decor dreams a reality without sending your wallet into a tailspin. That’s right, the queen of shade and style shared her affordable decorating secrets.

“When you need to change your space and how your mindset is, the best thing to do is to change your environment,” Porsha advised during a recent Amazon Live session. 

From chic firepits to luxurious blankets, Porsha has a knack for finding budget-friendly items that give off major high-end vibes. So get ready to transform your home into a haven fit for a Bravolebrity, all thanks to Porsha’s savvy shopping tips!

TL;DR Porsha Williams’ Amazon Home Finds

Source: eonline.com

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Categories

Evictions & Crazy Stories Real Estate

May 22, 2024
by Mark Ferguson

Post-occupancy agreements can be risky! In this post, I will cover the details of post-occupancy agreements and pre-occupancy agreements. I’ll also dive into a particularly challenging real estate experience I personally had. While this ordeal brought significant attention to my YouTube channel, it highlighted the many pitfalls associated with these agreements.

I’ll also touch on pre-occupancy agreements and the evolving real estate and tenant laws that make these situations increasingly complex.

Table of Contents

Video: Post-Occupancy Risk – Horror Stories

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My Personal Post-Occupancy Agreement Nightmare

A year ago, I purchased a property with a post-occupancy agreement, allowing the seller to remain in the house for 15 days after closing. If they stayed beyond that period, they owed $250 per day, with $5,000 held back from their proceeds to cover potential overstay penalties. Despite these precautions, the experience turned out to be a nightmare.

The seller repeatedly promised to move out “tomorrow,” stretching their stay and complicating the situation further. Although I eventually gained possession, it took nearly the entire $5,000 reserve to cover the extra days they stayed. The title company held the disputed amount for a year before it was finally released to me, marking the end of a stressful and drawn-out process.

Why Post-Occupancy Agreements Are Risky

For regular home buyers and sellers, post-occupancy agreements can be disastrous. If a seller refuses to leave, the buyer must follow state eviction guidelines, which can take months or even years in some states. This delay can cause significant financial strain, especially if the buyer needs to move in immediately or faces double housing costs.

It’s essential to understand that no matter how nice or trustworthy a seller seems, the risks remain. Some people are adept at exploiting these situations, knowing how to manipulate the system to their advantage. Always negotiate to hold back a substantial amount of money—at least $10,000 or more, depending on the property’s value—to incentivize the seller to vacate promptly.

How Evictions Work and How to Avoid Them as a Landlord

Pre-Occupancy Agreements: Equally Troublesome

Pre-occupancy agreements, where buyers move in before the sale is finalized, can be just as problematic. If the sale falls through, buyers who have already moved in might refuse to leave, leading to similar eviction challenges. Even allowing buyers to store items in the garage can grant them possession rights, complicating the eviction process.

As a real estate agent and broker with over 20 years of experience, I always advise clients to avoid both pre- and post-occupancy agreements whenever possible. The convenience they offer is rarely worth the potential legal and financial headaches.

Real-Life Consequences

In my case, the post-occupancy agreement allowed me to use the situation to my advantage on social media, but the average home buyer or seller doesn’t have that luxury. Evictions are time-consuming and costly, involving legal fees, potential property damage, and lost rental income. The emotional toll and financial burden can be overwhelming.

Practical Advice for Home Buyers and Sellers

If you must enter into a post-occupancy agreement, ensure it is written in your favor:

  • Hold back a substantial amount of money to incentivize the seller to vacate.
  • Set a strict per-day penalty that accumulates significantly if the seller overstays.
  • Consult with a lawyer to understand your rights and obligations fully.

For pre-occupancy agreements, avoid them if possible. If absolutely necessary, ensure clear terms are set, including a substantial security deposit and written agreements outlining the consequences of a deal falling through.

My Master the Deal course covers the many other ways you can find a great deal.

Conclusion

While I continue to deal with post-occupancy agreements as an experienced investor, I approach them with caution and a clear strategy to mitigate risks. For most home buyers and sellers, the best advice is to avoid these agreements to prevent potential nightmares.

Look for the best way to invest in real estate? Check my full real estate investing guide.

If you have any questions or want to share your experiences, feel free to leave a comment below.

Source: investfourmore.com

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Arizona isn’t just about stunning desert landscapes and soaring cacti. It’s also packed with some of the coolest college towns in the country. Whether you’re a tenured professor looking for your forever home in Tucson or a rising sophomore searching for the perfect apartment in Glendale, you’ll find what you’re looking for in the Grand Canyon State.

Ready to explore Arizona’s top college spots? Let’s dive in! From buzzing nightlife to quiet study spots, there’s something here for everyone.

1. Tempe – Arizona State University

Population: 180,587 | Student population: 77,881 | Average 1-bedroom rent: $1,383

Arizona State University is known for its engineering and business programs, making ASU a top choice for many students. The W.P. Carey School of Business consistently ranks among the best, offering extensive resources for budding entrepreneurs and future business leaders. The Ira A. Fulton Schools of Engineering also get a lot of attention, especially for their innovative research and hands-on learning opportunities.

Tempe and ASU have strong ties that benefit students and the community equally. Students often intern at local tech companies, gaining real-world experience that complements their studies. The Tempe Town Lake area offers recreational activities and job opportunities, making it a popular spot for students.

Apartments near Arizona State University | Houses for rent near Arizona State University

2. Tucson – University of Arizona

Population: 542,629 | Student population: 49,403 | Average 1-bedroom rent: $1,037

The University of Arizona is the heart of Tucson. UA’s College of Optical Sciences is world-renowned, attracting students from around the globe. The Eller College of Management also stands out, especially for its entrepreneurship program, which is designed to equip students with the skills needed to launch their own businesses. 

Tucson and the University of Arizona share a close relationship that enhances the student experience. The city’s tech industry benefits from UA’s research initiatives, with many startups emerging from university projects. Plus, downtown Tucson is a hotspot for student-friendly activities and events, from music festivals to food truck rallies, ensuring there’s always something to do.

Apartments near University of Arizona | Houses for rent near University of Arizona

3. Flagstaff – Northern Arizona University

Population: 76,831 | Student population: 28,086 | Average 1-bedroom rent: $1,890

You’ll find Northern Arizona University in picturesque Flagstaff. NAU is famous for its forestry and environmental sciences programs, reflecting the surrounding natural beauty. The College of Health and Human Services also offers top-notch programs in nursing and physical therapy.

Flagstaff and NAU have a symbiotic relationship. Students often participate in local environmental projects, like forest restoration and water conservation efforts. The town is prime for outside activities, like hiking and skiing, complementing NAU’s emphasis on environmental studies outside of the classroom. 

Apartments near Northern Arizona University | Houses for rent near Northern Arizona University 

4. Prescott – Embry-Riddle Aeronautical University

Population: 45,827 | Student population: 7,551 | Average 1-bedroom rent: $1,388

Prescott is home to Embry-Riddle Aeronautical University, a leader in aviation and aerospace education. This university excels in aviation and aerospace engineering, with students often going on to work for major airlines and aerospace companies. The global security and intelligence studies program is also highly respected, preparing students for careers in national security and intelligence.

Prescott’s aviation industry benefits greatly from Embry-Riddle’s presence. Many students intern at local airports and aviation companies, gaining hands-on experience that is invaluable for their future careers.

Apartments near Embry-Riddle | Houses for rent near Embry-Riddle

5. Glendale – Midwestern University

Population: 248,325 | Student population: 3,890 | Average 1-bedroom rent: $1,312

Midwestern University is renowned for its health sciences programs. This includes osteopathic medicine and pharmacy, both of which are excellent. The veterinary program is also a standout, attracting students who are passionate about animal care.

Glendale and Midwestern University collaborate extensively to benefit students and the community. Students often intern at local clinics and hospitals, gaining practical experience. The city’s community health initiatives frequently involve the university, with students participating in health fairs and educational outreach programs. 

Apartments near Midwestern University | Houses for rent near Midwestern University

6. Scottsdale – Scottsdale Community College

Population: 241,361 | Student population: 7,320 | Average 1-bedroom rent: $1,987

Scottsdale Community College is known for its excellent programs in culinary arts and hospitality management. The college also offers solid programs in business and computer science. SCC’s hands-on approach to learning ensures that students are well-prepared for their future careers.

Scottsdale and SCC are deeply connected through various partnerships and community initiatives. The local hospitality industry thrives on SCC graduates, with many students finding internships and jobs in the city’s renowned restaurants and resorts. Community events, like food festivals and cooking competitions, often feature SCC’s culinary students, showcasing their skills and creativity. 

Apartments near Scottsdale Community College | Houses for rent near Scottsdale Community College

7. Yuma – Arizona Western College

Population: 95,548 | Student population: 8,081 | Average 1-bedroom rent: $975

Arizona Western College is known for its strong agriculture and nursing programs. AWC’s emphasis on practical, hands-on learning ensures that students gain the type of valuable skills and experience that make finding a job possible.

Yuma and AWC have strong connections that benefit students and the local community. The city’s agricultural industry commonly hires AWC students, providing them with real-world experience and job opportunities. Local hospitals and clinics offer internships for nursing students, allowing them to apply their classroom knowledge in a clinical setting. 

Apartments near Arizona Western College | Houses for rent near Arizona Western College

Methodology

College towns are qualified as towns or cities with at least one college or university and fewer than 650,000 people according to U.S. Census data. Average rental data from Rent.com in May 2024.

This is not a comprehensive list of all of the towns and cities in the state meeting those requirements.

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Accounts receivable factoring, also known as invoice factoring or business receivable factoring, is a method of business financing that companies sometimes use to help manage cash flow and meet expenses. Factoring receivables involves a different process than taking out a bank loan, but the general goal for both is often the same: to provide the business with needed cash.

For clarity, a factoring company or factor is a lender that provides financing through the invoice factoring process. In other words, the lender gives the small business financing in exchange for unpaid invoices.

Learn more on what accounts receivable factoring is, pros and cons of this type of financing, and alternatives you may want to consider.

What Is Accounts Receivable Factoring?

Factoring accounts receivable is a method of financing that B2B companies that invoice their customers and vendors could consider when they’re in need of quick cash. Basically, the business gets a loan from a factoring company using its accounts receivables as security.

Typically, the factoring company will give the business a percentage of its outstanding invoices (the advance percentage, which is typically around 80%). When the invoices are paid by the customers, the factoring company gives the remaining 20% to the business, minus any factoring fees (which can be high).

Recommended: What Are Accounts Payable?

How Does Factoring Accounts Receivable Work?

Here’s a basic illustration to show how accounts receivable factoring works.

Let’s say that your business has issued $20,000 in invoices that haven’t been paid yet. Let’s also say that your business will be $10,000 short in meeting payroll if those payments aren’t made on time.

To address the situation, your business might decide to factor receivables in order to get enough cash in to pay your employees. This would involve selling the unpaid invoices to a third-party factoring company (or “factor”).

At this point, the factor would own the invoices and your business would receive a certain percentage of the dollar amount on them. This is called the “advance rate.” The advance rate that your business would receive would be based on how risky the transaction is for the factoring company.

The difference between the dollar amount on the invoice and the amount your business gets upfront is held in reserve until the invoices are paid. Once your customers have paid, the remainder is forwarded to your business, minus the factoring fee.

Factoring Accounts Receivable Example

To give some numbers to the example, let’s say that your business qualifies for an advance rate of 80%. To meet payroll expenses of $10,000, you decide to factor $15,000 out of your $20,000 in outstanding receivables.

The factoring company would then issue you 80% of the value of the receivables being factored ($15,000 x 80%): $12,000. You could then use $10,000 of the funds to pay your employees and have $2,000 left over for miscellaneous expenses.

The next step is for your customers to pay their invoices in full (that money goes to the factor, not directly to your business). Once paid, the factoring company will release the reserve amount (in our example, 20% of the invoice amount, or $3,000) minus the factoring fee charged by that particular factor.

How Are Factor Fees Calculated?

A factor may consider a number of things to determine what factor fee to charge your business. It might look at the industry your business is in, how many invoices are involved, your customers’ payment histories, and your company’s financials to determine what factor fee to charge you.

That said, typically these fees run from 1% to 3% of your invoices, but may go as high as 5%.

Bear in mind that you might have to pay a flat factor fee for each week that an invoice goes unpaid — 2% the first week, 2% the second week, and so on. But some factors charge a tiered factoring fee, meaning that the amount of your fee can go up if the invoice isn’t paid right away. So while the factor fee might be 2% the first week, it might rise to 3% the next week.

Recommended: Business Cash Management: Tips for Managing Cash

How to Qualify for Accounts Receivable Factoring

Qualifications for accounts receivable financing are much less stringent than for other types of small business financing, such as small business loans or business lines of credit.

With accounts receivable financing, the invoices serve as collateral, making it an attractive form of borrowing for businesses without strong credit histories. To qualify, you simply need to have outstanding invoices from reliable customers. The factoring company will look at the credit history of your customers as opposed to your business.

Recommended: Business Loans Based on Revenue

Pros and Cons of Accounts Receivable Factoring

Even companies that focus on cash management strategies sometimes need an influx of cash — and, for some of them, invoice factoring can be a good solution. Just as with other forms of small business financing, though, there are pros and cons to accounts receivable factoring.

Advantages of Accounts Receivable Factoring

Benefits may include the following:

•   No collateral is required, other than the invoices.

•   You can typically access the cash quickly.

•   Factoring can help your business manage cash flow.

•   Lenders typically focus less on the business’s or owner’s credit score and more on the creditworthiness of the customers owing on the invoices.

•   Some factors will work with startups.

•   Funds provided by a factor can typically be spent in any way the business desires, with no restrictions.

•   The factor company takes over collecting on the invoices, freeing up your business to handle other tasks.

Disadvantages of Accounts Receivable Factoring

Cons of accounts receivable factoring can include the following:

•   Rates can be relatively high. Plus, there can be a variety of fees, including application, processing, and service fees, which means that factoring can be a more expensive way of getting business funding. This can be especially true if the invoiced customers don’t pay on time.

•   The factoring company has control of the invoices after your business sells them. That’s why it’s important to choose a factor that will treat your customers fairly and with respect.

•   If customers don’t pay the invoices that were factored, your business may need to pay for those invoices, along with added fees.

•   If a business’s customers aren’t creditworthy, then it may be difficult to factor accounts receivable from them.

•   What a factor charges will depend on the creditworthiness of the invoiced customers, how old the invoices being factored are, the invoice due dates, and more. Just as with banks that make loans, it’s important to compare what different factoring companies would charge.

Recommended: Types of Small Business Loan Fees

Accounts Receivable Factoring vs Accounts Receivable Financing

Accounts receivable factoring gives the lender full control of the unpaid invoices. Your business no longer owns them; instead, the factoring company does. With accounts receivable financing, on the other hand, your business still owns the unpaid invoices.

To qualify for accounts receivable financing, or invoice financing, your credit score and financial history are taken into consideration. With accounts receivable factoring, it’s the credit history of your customers that’s taken into account.

Recourse Versus Non-Recourse

These are two different factoring models: recourse and non-recourse.

When a factor uses a recourse approach, this means that a company would be responsible for any factored invoices that its customers didn’t pay.

When factors are using a non-recourse approach, the factoring company is responsible for any unpaid invoices. There can be exceptions to this rule if certain conditions are met, though. For example, if an invoiced customer files for bankruptcy within a defined window of time or goes out of business, the business might not be held responsible for its invoices. Non-recourse factoring companies may charge a higher fee because they’re taking on more risk.

Recommended: What Is Traditional Income Statements Explained

Choosing the Right Factoring Company

Just as with any lender, you should check out factoring companies that you might want to work with carefully to make sure they’re trustworthy.

•   Is it registered in your state?

•   Does it have good reviews online?

•   What is its Better Business Bureau ranking?

•   Does it specialize in specific industries? (Some factoring companies work with very specific industries, such as medical or freight transport, while others are more general.)

•   What are its rates and advance percentages?

•   Is there a minimum number of factoring transactions required each month?

•   If there are no minimum requirements, will factoring a certain amount of invoices each month provide your company with a discount?

Once you settle on a factoring company, the factor will then conduct due diligence on your business and on the customers whose invoices may be factored.

After that review is satisfactorily completed, the factoring company will offer an agreement that should be carefully reviewed. Check the interest rate and fees, including whether there is a cancellation fee. See if any minimum factoring amounts are listed, whether there’s a contract term that you’re agreeing to, and so forth.

Alternatives to Accounts Receivable Factoring

While accounts receivable factoring is one way to get cash for your business, there are other ways, too.

Free Up Cash Flow: Ways to free up cash flow include cutting expenses, increasing pricing, and turning invoices into cash more quickly, perhaps by offering early pay discounts to customers and/or asking for a deposit when orders are made.

Business Line of Credit: Getting a business line of credit from a bank or online lender gives you access to a certain amount of funding decided upon by the lender that you can draw on at will. Interest is charged only on unpaid balances. Business lines of credit are typically revolving credit that replenish how much you can draw as you pay back whatever you owe.

Online Business Loan: Online lenders frequently provide loan options similar to those of a traditional bank. However, typically online lenders have a faster approval process. What’s more, they may offer more options for business owners with lower credit scores.

The Takeaway

Accounts receivable factoring is a method of small business financing where you sell your invoices to a factoring company. You receive a percentage of the invoices upfront, and the remaining amount (minus any fees) when the invoice is paid in full. However, depending on your situation, accounts receivable factoring may not be the best type of financing for your small business. Other options include traditional small business loans, small business lines of credit, and SBA loans.

If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.

With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.

FAQ

What is accounts receivable factoring?

Accounts receivable factoring is a type of small business financing where you sell your unpaid invoices to a factoring company. You receive a percentage of the invoices immediately, and once the customer pays the invoice, you receive the rest, minus any fees (which can be expensive).

How do you calculate AR factoring?

Accounts receivable factoring is calculated by first determining eligible invoices. Ideal invoices are no more than 90 days late and are owned by creditworthy customers. Then, the factoring company will determine how much of the invoice they’ll give you — typically 80-90% of the invoice total. Once the customer pays the invoice, the factoring company will give you the remaining percentage, minus any fees.

Photo credit: iStock/Thapana Onphalai

SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.


Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

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It’s a scenario many people aren’t prepared for: A loved one becomes disabled and requires your care. That care can bring financial challenges you may not be prepared for. In fact, the Centers for Disease Control and Prevention (CDC) reports that a person with a disability in the U.S. will spend $17,431 each year on average for healthcare expenses—in many cases, for the rest of their lives.

What’s more, medical costs may only scratch the surface of the financial repercussions. A person with a disability may lose some or all of their wage-earning ability, and the individual caring for them might also have to work fewer hours. You may incur additional expenses for home modifications, assistive devices, or occupational therapy, and a child or adult with a disability may also need specialized caregivers.

If all of this sounds overwhelming, take heart. Many financial resources exist that are designed to help people who are supporting a disabled adult or child, as well as to help secure your loved one’s financial future. Here are important things you need to know to make that happen.

Defining a disability

A basic definition of disability is any condition that challenges a person’s ability to perform certain activities or interact with their surroundings. But that definition may become more nuanced when it involves someone’s ability or inability to work, as well as any government benefits they are entitled to receive. 

For adults, the Social Security Administration (SSA) defines a disability as any mental or physical condition that is expected to be continuous in nature for at least 12 months that renders a person unable to perform the duties required by a job. To meet the SSA’s definition, people must have “a severe impairment(s) that makes you unable to do your past relevant work … or any other substantial gainful work that exists in the national economy.”  

Per the SSA, a child is considered to have a disability (and be eligible for benefits) if they “have a physical or mental condition that very seriously limits his or her activities” and if this condition has lasted or is expected to last for longer than a year.

Assessing whether your loved one’s disability meets the SSA’s definition is the first step in researching available benefits. Your family healthcare provider or a professional advisor who specializes in disability benefits may be able to help you make this determination.  

Benefits for children with disabilities

Children with disabilities are entitled to multiple government benefits to ensure they have quality healthcare, as well as services and supplies to meet their basic needs. One form of aid is Supplemental Security Income (SSI), which is distributed by the SSA. The requirements for children to receive this supplemental income include: 

  • The applicant must have little or no income.
  • The applicant must have few or no assets. 
  • The applicant must have a disability (including blindness).

The amount of money received by each approved applicant is determined by various factors, such as where they live and how much they own.  

“Qualifying for SSI is critical,” says CPA James Lange of Lange Financial Group in Pittsburgh, “because it simultaneously qualifies you for other benefits.” 

For example, in most states, children with disabilities who qualify for SSI are automatically eligible for Medicaid healthcare coverage. If a child with a disability does not qualify for SSI, they can sometimes still receive Medicaid benefits via a Medicaid waiver, which waives the income- and resource-related thresholds for qualification—in other words, your child could receive Medicaid benefits regardless of your income or assets. These policies can differ from state to state, so check your home state’s department of health and family/social services website for the most accurate and current information. 

The bottom line when it comes to SSI, Lange reiterates, is to be proactive. “Don’t procrastinate,” he explains. “Getting all of this right will make a huge difference in your and your child’s life. You may be in for a long and difficult process of providing for your child and should do everything you can to take advantage of government programs.”

Finally, families who earn too much to qualify for Medicaid may still be eligible for the Children’s Health Insurance Program (CHIP), a government program that offers low-cost health insurance to children. If the parent of a child with a disability earns too much to qualify for Medicaid benefits but still struggles to pay healthcare expenses, CHIP can be a helpful solution. As with Medicaid, each state runs its CHIP program differently, so check your home state’s website for more information.

Benefits for adults with disabilities 

Adults with a disability may also be eligible for SSI if they have little or no income, few or no resources, and have a disability (including blindness) or are age 65 or older. They may also be eligible for Medicaid benefits and Medicaid waivers. 

In addition, those who previously worked a certain number of years and paid into Social Security may qualify for Social Security Disability Insurance (SSDI) benefits. Eligibility for SSDI is based on two requirements. The individual must have: 

  • A disability that prevents the individual from working for at least a year
  • Years of work during which they have earned sufficient Social Security credits  

Of course, each case is different, and eligibility will be determined by the SSA. 

“It can be tricky to navigate some of the rules around SSDI,” says Dan Stous, a Certified Financial Planner® and lead wealth advisor at Flagstone Financial Management in Lincoln, Nebraska. “But in a nutshell, you should be aware that your disabled loved one may qualify for federal financial aid.”

Adults with disabilities who continue to work  

People with disabilities can receive disability benefits and continue to work—up to a point. Someone receiving SSDI payments may not earn more than what’s known as substantial gainful activity (SGA). As of 2024, that amount is $1,550 per month. However, people who are blind have a higher SGA of $2,590.

Adults ages 18 to 64 with a disability who want to work can get a leg up through the Ticket to Work program, a government program designed to help people with disabilities find employment that’s right for them. The program guides participants through free employment services that can help them determine whether they are able to work, prepare to enter the economy, find a job, and be successful in the workplace. 

Veterans with disabilities 

Veterans with certain disabilities can qualify for monthly pension benefits, depending on yearly income and net worth. To be eligible, Veterans:

  • Must not have been dishonorably discharged
  • Must have served a certain length of time in the military—including at least one day during wartime—or have served as an officer
  • Must be at least one of the following:
    • Over the age of 65, permanently and totally disabled, living in a nursing home or long-term care facility due to a disability, or receiving SSDI or SSI payments

Caregiver support

A caregiver may get overwhelmed by aspects of providing care to a loved one, including managing finances. They may also struggle with the everyday demands of caregiving. Fortunately, resources exist that can help ease these hardships.

Some states offer programs that compensate family members or friends caring for a relative who receives Medicaid benefits. These programs vary significantly between states and often have complex eligibility requirements, so it’s important to do your research before applying. 

If the individual you’re caring for (say, your spouse) previously purchased a long-term care insurance policy, they may be eligible to submit claims for in-home care. Some policies will also provide compensation for a family caregiver. Contact your insurance agent and ask for a written confirmation of benefits.

For Veterans specifically, in-home care is accessible through Veteran-Directed Care, a government program that provides services to Veterans who need assistance with daily activities. This program can supplement the caregiving provided by a loved one to ease their care workload. Veterans who qualify can also make use of Aid and Attendance benefits or Housebound benefits, which are monthly payments that can be put toward in-home care for those with permanent disabilities. 

If you’re the parent of a child under the age of 18, are unemployed or underemployed, and can demonstrate that you have a low or no income, you may qualify for Temporary Assistance for Needy Families. This government program provides states with grant money to assist families that are struggling financially. If you qualify, you may receive a monthly cash payment for a set period. For many states, the lifetime limit of this aid is five years.  

You might also consider applying for benefits from the Supplemental Nutrition Assistance Program (SNAP), which offers subsidies for food purchases to ensure that those with low or no income can maintain good nutrition. The SNAP program has special eligibility guidelines for those with disabilities, which may make it easier for those who already qualify for SSI or SSDI to also qualify for food assistance.

Banking options for people with disabilities

People who are disabled have access to special banking accommodations, including ABLE accounts, which allow people with disabilities to set aside savings without being taxed on the earnings of those accounts, as long as they spend the money on qualified expenses. (In this way, these accounts are similar to 529 college savings accounts.)

Another key benefit: For the most part, savings in an ABLE account won’t affect eligibility for SSI, Medicaid and other means-tested programs. 

Right now, ABLE accounts are available to people who became disabled before the age of 26. But thanks to the recent ABLE Age Adjustment Act, that threshold will increase to age 46 starting on the first day of 2026.

“I’ve found that ABLE accounts aren’t as well-known as I would have hoped among parents of children with disabilities,” says Stous. “They’re a great tool to help financially care for a disabled loved one and can act as a first step in that journey of preparing for when you may no longer be around and your child can no longer rely on your income to help meet their needs.”

There are limits to the amount of money that can be deposited into an ABLE account each year—$18,000 in 2024, with additional annual contributions allowed for ABLE account holders who work and who don’t participate in an employer-sponsored retirement plan. There are also limits to what the beneficiary can spend the money on—qualified expenses include things like education, healthcare, assistive devices, and employment training. It’s also helpful to keep in mind that even if your state doesn’t offer an ABLE account program (though most do), you can enroll in another state’s program even if you’ve never lived there. 

Accessible facilities and products

Many banks also provide assistive technologies for people with disabilities to make their banking experience easier. These can include things like spaces designed to accommodate people who use wheelchairs or other mobility devices, digital banking interfaces that can be used even by those who have difficulty seeing images or colors, and ATMs that are accessible to all. 

You can help a loved one with a disability

For people with disabilities and the loved ones who care for them, financial concerns can be significant—but there are numerous solutions to make them easier to navigate. With the right tools and the needed know-how to make wise decisions, meeting the financial challenges that a disability can bring becomes infinitely more manageable. 

Looking for ways to pay for upgrades that make your home more accessible? Learn how to finance home modifications that will support your loved one with disabilities.

The article and information provided herein are for informational purposes only and are not intended as a substitute for professional advice. Please consult your financial advisor with respect to information contained in this article and how it relates to you.

Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.

Source: discover.com

Apache is functioning normally

The inventory of existing homes for sale increased from March to April, but the increased availability didn’t bolster sales. The National Association of Realtors® (NAR) said pre-owned single-family homes, townhomes, condominiums, and cooperative apartments sold at a seasonally adjusted annual rate of 4.14 million. This was a decline of 1.9 percent from sales in both March of this year and April 2024.

At the end of April, there were 121 million units of housing available for sale, an increase of 9 percent from March and 16.3 percent year-over-year. This equates to a 3.5-month supply at the current rate of sales compared to 3.2 percent and 3.0 percent at the two earlier points in time. NAR says a six-month supply is typically necessary for a balanced real estate market. There was a big increase in higher-priced homes. The inventory of available homes listed at $1 million or more was 34 percent larger than a year earlier and sales in that tier increased 40 percent. Properties typically remained on the market for 26 days in April, down from 33 days in March but up from 22 days in April 2023.

NAR’s chief economist Lawrence Yan said overall home sales changed little, but the upper end of the market is benefiting from the increase supply of homes.

Single-family home sales fell 2.1 percent to a seasonally adjusted annual rate of 3.74 million, down from 3.82 million in March. Sales were 1.3 percent lower year-over-year.  Condo and co-op sales remained at their March level of 400,000 units, 30,000 fewer than the previous April.

The median existing home price for all housing types in April was $407,600, an increase of 5.7 percent. . The median existing single-family home price rose 5.6 percent and condo prices were up 5.4 percent to medians of $412,100 and $365,300.

“Home prices reaching a record high for the month of April is very good news for homeowners,” Yun added. “However, the pace of price increases should taper off since more housing inventory is becoming available.”

First-time buyers were responsible for 33 percent of sales in April and individual investors or second-home buyers purchased 16 percent of homes. All-cash sales accounted for 28 percent of transactions.  

The annual rate of 480,000 existing home sales in the Northeast was 4.0 percent lower than in both March and the previous April. Prices jumped 8.5 percent to a median of $458,500.

In the Midwest, existing home sales slipped 1 percent from the two earlier periods to a rate of 1 million. The median price in the region was $303,600, up 6 percent on an annual basis.

Existing home sales in the South were down 1.6 percent from March and 3.1 percent from the prior April to a rate of 1.9 million. The median price was $366,200, a gain of 3.7 percent.

In the West, existing home sales retreated 2.6 percent from a month ago to an annual rate of 760,000, an annual increase of 1.3 percent. The median price in the West was $629,600, 9.3 percent higher than in April of last year..

Source: mortgagenewsdaily.com

Apache is functioning normally

It was another slow day for the mortgage market and one that joins a list of several other relatively inconsequential days in the past few weeks.  This is a byproduct of the bond market (bonds dictate rate movement) being tuned in to only a few key economic reports and events.  When these reports actually come out, rates move a lot.  But for the rest of the time, the vibes are drifty and sideways.

Today’s version of “sideways” involved a drift to levels that were just barely higher than yesterday’s.  The average mortgage borrower won’t see much of a difference either way.

Top tier 30yr fixed scenarios are still just over 7% for the average lender, but it’s worth keeping in mind that actual quotes will exist in a reasonably wide range round those levels depending on particulars.

Source: mortgagenewsdaily.com