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Last year, it seemed like rates would never stop climbing, with 30-year mortgage rates reaching a more than two-decade high in October 2023. Now rates are much lower, but they’re still relatively high compared to pre-pandemic levels.
The good news is that mortgage rates should go down in 2024, with some forecasts predicting they’ll drop close to 6% by the end of the year. The not-so-good news is that as rates go down, houses are probably going to get more expensive.
The latest housing market predictions for 2024 see home prices rising this year as lower mortgage rates drive an increase in homebuying demand. High mortgage rates have kept a lot of would-be buyers out of the market over the past couple of years. Once rates fall, all that pent-up demand is going to be unleashed on a market that doesn’t have anywhere near enough inventory to meet it.
This will push home prices up. But that doesn’t necessarily mean it will be impossible to buy in 2024, or that prices will spike dramatically everywhere. There will still be opportunities for many buyers to carve out some affordability in this market.
For cash-strapped first-timers who are hoping to buy in 2024, things like down payment assistance and first-time homebuyer loans can make homeownership more affordable, even as prices rise.
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Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
30-year Fixed Mortgage Rates
The average 30-year fixed mortgage rate was 6.66% last week, according to Freddie Mac. This is a four-basis-point increase from the previous week.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates.
15-year Fixed Mortgage Rates
Last week, average 15-year mortgage rates were 5.87%, a two-basis-point decrease from the previous week, according to Freddie Mac data.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
When Will Mortgage Rates Go Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Rates also increased dramatically last year, though they’ve been trending back down in recent months.
As inflation comes down, mortgage rates will recede as well. Most major forecasts expect rates to trend down throughout 2024.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
How Do Fed Rate Hikes Affect Mortgages?
The Federal Reserve increased the federal funds rate a lot last year to try to slow economic growth and get inflation under control. Inflation has come down a lot in response to this, though it’s still a little bit above the Fed’s target rate of 2%.
Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.
Fed hikes have pushed mortgage rates up over the last two years. But the Fed has indicated that it’s likely done hiking rates and could start cutting in 2024. Once the Fed cuts rates, mortgage rates should fall even further.
If you’re wondering how your student loan balance compares, here are the facts: The average student debt among borrowers ranges from more than $30,000 to over $50,000, depending on the kind of loans you have. Those are significant numbers, no doubt. If you are feeling the weight of your debt, you are not alone. There are currently about 45 million borrowers whose loans totaled a whopping $1.77 trillion at last count.
When you have student loans, it can be natural to think about how it compares to, say, your cousin’s, your BFF’s or your coworkers’ debt. Especially when you are feeling stressed about making your payments and paying off what you owe. “Is everyone in the same boat?” you may ask yourself.
Knowledge is power, so read on to learn more about how student loans shape up for other Americans, as well as options for managing your debt. You’ll get through this!
What Is the Average Student Loan Balance?
There are different ways to look at the data on average student loan balances. Here, using intel from the Education Data Initiative, you’ll find some important statistics so you can see how your student loan balance may compare to others.
• The average federal loan debt is $37,338 per borrower.
• The average private loan debt is $54,921 per borrower.
• The average student borrows more than $30,000 towards their bachelor’s degree.
• 92% of borrowers with student loan debt have federal loans.
• The average graduate student loan debt is $76,620 among federal borrowers.
• For those with master’s degrees, the average debt is $83,651; among those with PhDs, the figure is $125,276.
• As for Parent PLUS loans, the average amount of debt is $29,528, according to the most recent years studied.
Are you curious about how debt aligns with age? Here are additional figures to know.
• Those borrowers age 30 have the highest average outstanding student loan debt, totaling $42,822 per person.
• 34% of those ages 18 to 29 have student loan debt.
• Borrowers under age 40 account for 55% of all student loan debt.
• Borrowers ages 40 to 49 owe 22% of America’s student loan debt balance.
Wondering how gender plays into student loan debt? Approximately 66% of debt belongs to women. The rest is borrowed by men. The data does not yet reflect nonbinary borrowers but will likely do so in the future.
If you are wondering how race correlates to student loan debt, these figures will shed some light on that angle:
• Black college graduates owe on average $25,000 more in student debt than White graduates.
• When checked four years after graduation, Black borrowers had student loan balances 188% higher than those of White borrowers.
• Asian college graduates are the fastest to repay their debt.
• Asian borrowers are also the most likely to earn a salary that exceeds their student loan balance.
Here’s a look at how student loan debt adds up by geographic location:
• Borrowers in Washington, DC, have the top spot in terms of their average federal student loan balance at $54,945.
• Borrowers in North Dakota have the lowest average federal student loan debt at $28,604. North Dakotans who take out these loans also have the distinction of living in the only state where borrowers have an average balance under $30,000.
• The state with the highest percentage of borrowers with student loan debt is Washington, DC (not exactly a state, but still) at 17.2%. Hawaii earns the honor of state with the lowest figure. Only 8.4% of residents have student loan debt.
💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.
Other Student Loan Statistics
As you read these figures, you probably recognize that many other people are dealing with student debt, and considerable amounts of it in many cases. While you are thinking about how your student debt compares to others’, take a look at a few other interesting statistics:
• The average student borrower takes 20 years to pay off their loan debt.
• Some professional graduates can take more than 45 years to pay off all of their student debts.
• At any moment, an average of 7% of student loans are in default. That’s about 4 million loans going into default per year.
• In 2023, the amount of student debt that was forgiven was less than 1% of the total student loan debt balance. Only 18.4% of eligible student loan borrowers apply for forgiveness.
Here’s something else to consider. If you’re getting ready to pay back what you owe or are already making your payments, you likely know how much you originally borrowed. But how can you tell what you owe with accumulated interest added on? Keep reading to learn more.
How to Check Your Student Loan Balance
Student loans come in two broad types, federal and private. Federal loans are either subsidized or unsubsidized. If it’s the former, then the government has been paying your interest while you’ve been in school. You only become responsible for interest when you’re no longer in college (and after your six-month grace period).
With unsubsidized loans, the interest will accumulate on the amount you borrowed while you’re still in school. You’re responsible for paying that interest from the moment your unsubsidized loan is disbursed.
Federal Student Loans
To find out what you owe in federal loans, you can check your federal student loan balance at StudentAid.gov. It will also show you how much of your loan balance is subsidized versus unsubsidized, along with other types of useful information.
You’ll need to create an account (if you haven’t yet done so) and use your FSA ID to log in and get the information you need.
Private Student Loans
For private student loans, you’ll need to contact the lender that gave you the funds to find out how much you owe. If you borrowed from more than one private lender, you’ll need to contact each one individually.
While federal loans typically come with a six-month grace period, check with each private lender, if applicable, to see if you have a similar grace period with them.
How to Manage Student Loan Debt
Once you know your total balance, then it’s time to figure out some strategic ways to pay back the balance. You want to still be able to enjoy postgrad life while eliminating those student loans.
Federal Repayment Programs
The federal government offers forgiveness programs, and, if relevant to your situation, you may get a portion of your remaining debt forgiven — meaning, you wouldn’t have to pay it back. It’s important to check to see which federal programs currently exist and see if you may qualify.
Some options to consider:
• While the Standard Repayment Plan is the typical default repayment plan offered by the federal government, there are different federal student loan repayment options available that can have longer terms — but you have to request one. If you choose an option with a longer term, this will likely lower your monthly payment, but increase the amount of interest you’ll pay over the life of your loan. You might look into the Graduated and Extended Repayment Plans offered for federal loans.
• A federal Direct Consolidation Loan can allow you to combine federal loans into one payment to lower the monthly amount due, simplify your personal finance management, and/or access federal forgiveness programs. (Note: This is not refinancing with a private lender; that will be covered in a minute.)
• There are also income-driven repayment plans for federal student loan balances where payments are capped, based on your income. There are likely qualifying factors you’ll need to know about. If you consistently make payments for a specified number of years, depending upon your modified agreement, any remaining balance could be forgiven. (One potential downside is that loan amounts forgiven under this program can be taxed as income by your state.).
The income-driven plans you may qualify for are:
◦ The SAVE Plan (this replaces the REPAYE plans and comes fully available on July 1, 2024)
◦ The PAYE Plan
◦ The Income-contingent Repayment Plan, or ICR
◦ The Income-based Repayment Plan, or IBR a minute.)
◦ You might also look into the Public Service Loan Forgiveness (PSLF) Program where people who work in public service occupations may qualify for 100% forgiveness after making 120 on-time, qualifying payments.
Among the qualifying requirements, you would need to be employed full-time at an eligible governmental agency (federal, state or local) or at another designated organization, such as a 501(c)(3) nonprofit (not religious).
💡 Quick Tip: Federal parent PLUS loans might be a good candidate for refinancing to a lower rate.
Options for Private Student Loan Borrowers
If you have borrowed private student loans, sorry: None of the above options are available, nor can you refinance a private student loan with a federal one. But don’t feel discouraged, there are still repayment options.
• You can see what offers you qualify for from other lenders. Depending on such factors as your credit score and loan term, you might be able to get a deal you prefer with a different lender. In other words, you are refinancing private loans with another private loan. (Just keep in mind that when you refinance a loan for an extended term, you typically pay more interest over the life of the loan.)
• You might check with your employer and see if they offer any student loan repayment assistance. Some employers (though far from the majority) offer this as a benefit.
• If you are truly struggling to make your loan payments, you might talk to your lender about what flexibility there may be in terms of your loan’s interest rate and/or repayment term. Meeting with a nonprofit credit counselor who is knowledgeable about student loans can be another helpful step.
Student Loan Refinancing
You’ve just read about private student loans and possibilities for refinancing them. Earlier in this article, you also learned about federal Direct Consolidation student loans. There’s one other option that you may want to consider as you manage your student loans and work to pay them off: refinancing federal student loans with private loans.
In this case, your federal loans are paid off with funds from a new loan secured from a private lender, which hopefully offers a more manageable monthly payment.
Two important points:
• When you refinance a federal student loan with a private one, you forfeit federal benefits and protections, such as forbearance and forgiveness.
• If you refinance for an extended term, it could mean that you pay more interest over the life of the loan, though your monthly payments may be more manageable for your budget.
If you’re considering this path, it can be wise to spend a bit of time with an online student loan refinance calculator to see how different options might play out. That can help you get on the best path to being debt-free based on your own particular circumstances.
The Takeaway
Student loans are a fact of life for more than 45 million Americans, and repaying them can be a challenge. As you look at your debt and repayment plan, it can be helpful to see how you compare to others who are also carrying this kind of loan. Average balances are currently in the range of $35,000 to $55,000 per borrower (or higher), so you may find that your situation is similar to many of your peers’.
However, just because student debt is common doesn’t mean it’s easy to pay back. So consider your repayment alternatives carefully and find the right fit for your needs. While it takes focus and patience, you can find a path to be done with your student debt.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
SoFi Student Loan Refinance If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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Renting in Dallas? Here’s where to go if you’re looking for the most reasonably priced suburbs for 2024.
The vibrant heart of North Texas, Dallas, has a diverse culture, iconic landmarks and Southern hospitality, all making it a great place to live. But did you know it also features affordable suburbs?
If you’re considering moving to Dallas, you may be wondering how much rent costs in Dallas. The average monthly rent is $1,477 for a studio, $1,371 for a one-bedroom unit and $1,862 for a two-bedroom unit. Depending on your budget, these prices may not align with your renting priorities.
So, if you’re searching for a more budget-friendly area without compromising access to Dallas, you’re in the right place. In this article, we’ll explore five of the most affordable Dallas suburbs. That way, you can enjoy Dallas’ sights and amenities without the price tag.
Average rent for a one-bedroom: $1,045
Average rent for a two-bedroom: $1,450
Distance from Dallas: 14 miles
Apartments for rent in Duncanville
Claiming the first place on our list of affordable Dallas suburbs is Duncanville. On average, you’ll save about $400 on rent for a one-bedroom apartment. Nicknamed the City of Champions, this area is located approximately 14 miles southwest of Dallas, so you’re not too far from the city center.
In Duncanville, you can experience the charm of the historic downtown district, filled with quaint shops, delicious dining options and cultural events. The city also offers recreational opportunities at Armstrong Park, where you can enjoy picnicking and walking trails, making it a great destination for outdoor enthusiasts.
Average rent for a studio: $1,039
Average rent for a one-bedroom: $1,215
Average rent for a two-bedroom: $1,430
Distance from Dallas: 15 miles
Apartments for rent in Mesquite
The second suburb on our list is Mesquite, just 15 miles east of Dallas. The area is home to about 147,700 residents, and the average rents are much less than in Dallas. If you plan to rent a two-bedroom unit, the monthly cost is approximately $1,430.
Mesquite has plenty of awesome attractions, including the Mesquite Championship Rodeo, where you can experience the excitement of live rodeo events, making it an easy pick for our top affordable Dallas suburbs. Additionally, the city offers the Mesquite Arts Center, featuring art exhibitions, performances and cultural events throughout the year.
Average rent for a studio: $1,560
Average rent for a one-bedroom: $1,314
Average rent for a two-bedroom: $1,664
Distance from Dallas: 13 miles
Apartments for rent in Irving
For those on the hunt for budget-friendly suburban living near Dallas, Irving takes third place. In addition to more affordable prices, Irving is just 13 miles west of downtown Dallas.
You can explore the Irving Arts Center, which hosts art exhibitions, performances and events in Irving. The city is also home to the Mandalay Canal Walk, a picturesque area with winding waterways, gondola rides and a variety of dining options, offering a one-of-a-kind setting.
Average rent for a studio: $1,491
Average rent for a one-bedroom: $1,330
Average rent for a two-bedroom: $1,625
Distance from Dallas: 14 miles
Apartments for rent in Grand Prairie
Grand Prairie, which is around 14 miles to the west, offers an affordable suburban alternative. In Grand Prairie, you can check out Lynn Creek Park at Joe Pool Lake, with opportunities for boating, swimming and hiking amidst the picturesque lakeside surroundings. The city is also home to the Texas Trust CU Theatre, a popular venue for concerts, comedy shows and other live entertainment.
Average rent for a studio: $1,053
Average rent for a one-bedroom: $1,379
Average rent for a two-bedroom: $1,747
Distance from Dallas: 15 miles
Apartments for rent in Garland
Just 15 miles from downtown is Garland, the final of the affordable Dallas suburbs to make our list. Home to 242,000 residents, Garland can be a great option for renters looking for a less busy city — and affordable rental prices. While the rent for a one-bedroom unit may be slightly higher in Dallas, a two-bedroom unit costs just over $100 less in Garland.
Living in Garland, you can explore the beautiful Spring Creek Forest Preserve, which offers hiking trails, wildlife viewing and a serene escape into nature. The city also features the Granville Arts Center, a cultural hub with theaters and art galleries that host a variety of performances and exhibitions. If you’re looking to take the leap from renter to buyer, make sure to also check out the most affordable Dallas suburbs to buy a home.
Is Dallas for you?
In a city as vibrant and diverse as Dallas, discovering the best bang for your buck is like finding hidden treasures in a sprawling urban jungle. Navigating through the maze of neighborhoods, we’ve unearthed the gems that not only won’t break the bank but might just leave you with some extra cash for those irresistible Tex-Mex dinners.
So, as you embark on your quest for the perfect pad, rest assured that the cheapest places in Dallas aren’t just affordable – they’re the keys to unlocking a city full of opportunities and adventures. Your wallet will thank you, and so will your sense of wanderlust. Cheers to finding your piece of budget-friendly paradise in an apartment in the heart of the Lone Star State!
Methodology
Affordability in our study of affordable Dallas suburbs is based on whether a suburb’s one and two-bedroom rent was less than Dallas and under 15 miles from downtown Dallas. Average rental data from Dallas rental market trends on October 26, 2023. Population data sourced from the United States Census Bureau.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
The redesigned 2024-25 Free Application for Federal Student Aid (FAFSA) is now available around the clock, following a weeklong soft launch, during which the form was open for as little as 30 minutes a day. Although the new form is simpler and shorter, students and families are still contending with technical glitches, changed processes and confusing questions.
“There have been some bumps in the road in terms of accessibility and functionality,” says Steve Colón, CEO of Bottom Line, a college access organization that works with first-generation students from low-income backgrounds in New York City, Boston, Chicago and Ohio. “On the positive side, we’ve heard that for some students it’s taking about 20 minutes to complete the FAFSA, which is wildly different from what it was before.” In recent years, completing the FAFSA could take an hour or longer.
Experts urge students to submit the new FAFSA as soon as possible, since some types of financial aid have priority deadlines or draw from a limited pool. About 1 million students have submitted the new FAFSA as of Jan. 8, according to U.S. Education Department data. That’s roughly 6% of the 17 million who typically submit the form each year.
Perplexed about something on the new FAFSA? Here are its five most-confusing aspects, and strategies to deal with them — so you can submit your form ASAP.
1. Persistent technical glitches
Technical glitches on the FAFSA can be frustrating. For example, some users report getting repeatedly logged out before they can finish their form. If you encounter issues like this, it’s OK to take a break and come back to the form a bit later.
“There is not a huge rush on filling it out today versus tomorrow,” says Karen McCarthy, vice president of public policy and federal relations at the National Association of Student Financial Aid Administrators. “So it is possible to come back in a few days, and hopefully, some of these glitches will be worked out by that point in time.”
Other glitches remain baked into the form. For example, some school names are getting cut off on the FAFSA. This can be confusing if a school you’d like to send your FAFSA to has multiple campuses. If this happens, students can do an internet search for a school’s Federal School Code, and use that number to pull it up in the FAFSA.
The situation is evolving day by day. The latest list of known FAFSA glitches and workarounds is available on StudentAid.gov.
2. You can’t correct submitted answers until late January
If you submitted your portion of the FAFSA but realized you made an error, you may have to wait a few weeks until you can fix it.
Students will receive an email with their FAFSA Submission Summary — which details submitted answers, Pell Grant eligibility and their Student Aid Index — once the Department of Education processes their completed form, which is slated to start in late January. Then, you can make any necessary corrections to your submitted answers.
Even if you make a correction later on, it won’t change the submission time stamp on your FAFSA, McCarthy says. This could be important for students applying for financial aid that is first come, first served or that has an early application deadline.
“If a correction is made on January 30, that application date is not updated to January 30. It still records when the FAFSA was initially filed,” McCarthy says.
3. Undocumented parents can’t access the form yet
There’s a new process for undocumented parents to request an FSA ID this year — but it’s not working yet, and there’s no timeline for when it will be. Until this issue is fixed, students whose parents don’t have Social Security numbers (SSNs) cannot submit the FAFSA.
Taking some time to get organized now can help you complete the FAFSA more easily once it’s available. If you’re a parent without an SSN, continue to reach out to support structures, like college access organizations or school counselors, Colón says.
“The moment that the tool becomes available, it’s critical to get in there and get started,” says Colón. “While it is a greatly simplified form, it’s not going to be for students whose parents don’t have an SSN, so it’s going to be really important that they get all their financial paperwork ready as soon as possible to give themselves the time they will need to complete the form.”
4. Invitation process for contributors
This year, students and parents fill out and submit their relevant portion of the FAFSA separately. Either the student starts and completes their portion of the FAFSA and “invites” the parent, or a parent can start and complete their section, then they invite the student.
That’s different from past years, when a dependent student and their parents had to sit down together and fill out a single form.
“It’s a role-based process, where it was not before,” says Jodi Vanden Berge, director of college planning and outreach at EducationQuest, a Nebraska-based college access nonprofit.
5. Confusing questions
Though the new FAFSA is generally more straightforward than in years past, borrowers have reported that several questions are confusing or unclear. Here are two to watch out for:
Free lunch question
This has proved confusing, since some school districts introduced free and reduced lunch programs for all students, regardless of their family’s financial situation, during the pandemic.
Under the federal benefits question — At any time during 2022 or 2023, did the student or anyone in their family receive benefits from any of the following federal programs? — “free or reduced-price school lunch” is an option.
If a student received free or reduced lunch, regardless of the circumstances, they should indicate that on the FAFSA, says Vanden Berge.
Dependency question
Some students have reported confusion about this new question used to establish dependency: Are the student’s parents unwilling to provide their information, but the student doesn’t have an unusual circumstance that prevents them from contacting or obtaining their parents’ information?
If a student selects “yes” — that they don’t want to provide parent information — then, the parent can’t fill out their section of the FAFSA, Vanden Berge says. This would disqualify a student from most federal financial aid, apart from direct unsubsidized loans, meaning they can’t access grants, work-study or subsidized loans, which don’t accrue interest while they’re in school.
If you do make a mistake, remember that you can request a correction once your form is processed.
A mortgage is a loan to purchase a home. The loan is repaid with interest in monthly payments over a certain number of years, such as 15, 20 or 30. If the mortgage isn’t repaid, the borrower may lose the home in a multistage process known as foreclosure.
Banks, credit unions and other lenders offer mortgages. To apply, fill out an application and provide documentation about your finances. Lenders consider your income, debts and credit score to decide whether you qualify and the terms to offer.
Types of mortgages
There are a variety of mortgages and home loan programs. Here are some of your choices.
Fixed vs. adjustable rates
There are fixed-rate and adjustable-rate mortgages. The interest rate stays the same for the entire loan term of a fixed-rate mortgage. With an adjustable-rate mortgage, or ARM, the interest rate stays the same for a certain period, up to 10 years, and then adjusts at a specified interval, usually every six months.
15-, 20- and 30-year mortgages
The most popular mortgage term is 30 years, but 15- and 20-year mortgages are also available. Mortgage payments are spread out monthly through the term. At the end, the loan is paid off and the borrower owns the property free and clear.
Government-backed mortgages
These loans are backed by the federal government:
FHA mortgages are backed by the Federal Housing Administration. They allow down payments as low as 3.5% and have more lenient credit score requirements than other loan programs. Borrowers must pay for mortgage insurance.
USDA mortgages, backed by the U.S. Department of Agriculture and meant for rural home buyers, do not require a down payment, but borrowers must pay an upfront and annual guarantee fee, similar to mortgage insurance for FHA loans.
VA loans, backed by the U.S. Department of Veterans Affairs, are for veterans and active military members. VA mortgages require no down payment, but borrowers pay a one-time VA funding fee, which can be rolled into the loan.
Conventional loans
Conventional loans are mortgages that are not backed by the federal government. Some conventional loans have down payment requirements as low as 3% — but typically, borrowers must pay for private mortgage insurance if they put down less than 20%.
Conventional mortgages can be conforming or nonconforming. Conforming conventional mortgages fall within certain dollar amount limitations set every year by the Federal Housing Finance Agency. They also meet underwriting guidelines set by Fannie Mae and Freddie Mac, the government-sponsored entities that buy conforming loans.
Nonconforming loans don’t abide by those limits and guidelines. For example, jumbo loans are conventional mortgages that exceed the conforming loan limits. They also typically have stricter criteria for approval than other mortgages.
What’s the credit score needed for a home loan?
The credit score needed to buy a home depends on the type of loan and the lender. Most borrowers have scores in the high 600s to 700s. FHA loans generally have the most lenient credit score requirements.
How to compare mortgage rates
You can check current mortgage rates to see the average of what lenders are offering. Then get initial quotes online from some lenders based on your location, loan term, purchase price, down payment amount and other factors.
To get a firm quote, you’ll need to apply for preapproval. During the preapproval process, the lender will check your credit and verify your financial information, such as income, assets and debts.
How to shop for a mortgage lender
The time to shop for a mortgage lender is before you start house hunting. Getting preapproved for a mortgage will show real estate agents and sellers that you’re a serious buyer. It’s smart to get preapproved and then get Loan Estimates from more than one lender. The Loan Estimate provides details about the loan terms, monthly payment and estimated closing costs. With those pieces of information, you can compare offers and choose the best deal.
Home equity loans and lines of credit
Homeowners who want to access their home equity without refinancing or selling can take out second mortgages.
A home equity loan offers access to cash based on the value of the home for any expenses, although it is recommended homeowners use the funds for upgrades and repairs that add value to the home. This loan is paid out in a lump sum that is then repaid over a specific amount of time.
A home equity line of credit, or HELOC, also offers cash but works more like a credit card, allowing a homeowner to withdraw funds multiple times, up to the limit of their credit line, during a specific period and then pay it back.
Because both of these options use the home as collateral, a homeowner must understand that failure to make payments could result in loss of the home. As with purchase loans, it’s wise to compare offers from more than one home equity lender.
The present week has been a bit boring, for lack of a gentler term. In fact, it’s been downright forgettable, but that’s often the case when rates have been on a big trip and are weighing their options for the next move ahead of a key piece of data. There was some small chance that this week’s Treasury auctions would act as a bit of an opening act for Thursday’s big show (CPI), but today’s 10yr auction didn’t produce a measurable reaction. Intraday momentum was weaker, but only after opening at stronger levels. Combine that with the slow pace of selling and Wednesday is yet another day that fits the “sideways and narrower ahead of CPI” narrative.
09:33 AM
Modest gains overnight as European yields hold a ceiling. 10yr down 2.6bps. MBS up 5 ticks (.16).
10:47 AM
Well off highs with slow, steady selling since 9:30am. MBS still up 3 ticks (0.09) but down an eighth from highs. 10yr yield down 0.4bps at 4.011.
03:20 PM
Weaker through mid-day and leveling off now. MBS down 2 ticks (0.06). 10yr up 1.7bps at 4.032.
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Despite the latest Consumer Price Index data coming in a bit hot according to Thursday’s report, mortgage rates have been holding steady this week. Average 30-year mortgage rates remained in a tight 6.3%-to-6.45% range, only up a little bit from the previous week.
The hotter-than-expected CPI numbers, which showed that inflation rose 3.4% year over year in December, led many to wonder if this would cause the Federal Reserve to push back its timeline for rate cuts in 2024.
But investors are currently pricing in an almost 80% likelihood that the Fed will make its first cut to the federal funds rate at its meeting in March, up from 64% a week ago, according to the CME FedWatch Tool. If that happens, we could see mortgage rates inch down further.
But Fed officials may also decide that they want to wait a bit longer before making any moves, in which case mortgage rates may generally stay near their current levels for at least the next few months. We’ll likely get a better idea of when to expect rate cuts at the Fed’s next meeting at the end of January.
Most experts believe mortgage rates will go down in 2024, but the timing will depend a lot on the path of inflation and when the Fed starts lowering the federal funds rate.
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Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.
Mortgage Rate Projection for 2024
Mortgage rates increased dramatically for most of 2023, though they started trending back down in the final months of the year. As the economy continues to normalize in 2024, rates should come down even further.
In the last 12 months, the Consumer Price Index rose by 3.4%, a significant slowdown compared to when it peaked at 9.1% in 2022. This is good news for mortgage rates — as inflation slows and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates are expected to trend down as well.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of the best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
When Will House Prices Come Down?
We aren’t likely to see home prices drop anytime soon thanks to extremely limited supply. In fact, they’ll likely rise this year.
Fannie Mae researchers expect prices to increase 6.7% in 2023 and 2.8% in 2024, while the Mortgage Bankers Association expects a 5.7% increase in 2023 and a 4.1% increase in 2024.
Sky high mortgage rates pushed many hopeful buyers out of the market last year, slowing homebuying demand and keeping price growth somewhat moderate. But rates are expected to drop this year, which will likely push home prices even higher. The current supply of homes is also historically low, which only exacerbates the problem.
Fixed-Rate vs. Adjustable-Rate Mortgage Pros and Cons
Fixed-rate mortgages lock in your rate for the entire life of your loan. Adjustable-rate mortgages lock in your rate for the first few years, then your rate goes up or down periodically.
So how do you choose between a fixed-rate vs. adjustable-rate mortgage?
ARMs typically start with lower rates than fixed-rate mortgages, but ARM rates can go up once your initial introductory period is over. If you plan on moving or refinancing before the rate adjusts, an ARM could be a good deal. But keep in mind that a change in circumstances could prevent you from doing these things, so it’s a good idea to think about whether your budget could handle a higher monthly payment.
Fixed-rate mortgage are a good choice for borrowers who want stability, since your monthly principal and interest payments won’t change throughout the life of the loan (though your mortgage payment could increase if your taxes or insurance go up).
But in exchange for this stability, you’ll take on a higher rate. This might seem like a bad deal right now, but if rates increase further down the road, you might be glad to have a rate locked in. And if rates trend down, you may be able to refinance to snag a lower rate
How Does an Adjustable-Rate Mortgage Work?
Adjustable-rate mortgages start with an introductory period where your rate will remain fixed for a certain period of time. Once that period is up, it will begin to adjust periodically — typically once per year or once every six months.
How much your rate will change depends on the index that the ARM uses and the margin set by the lender. Lenders choose the index that their ARMs use, and this rate can trend up or down depending on current market conditions.
The margin is the amount of interest a lender charges on top of the index. You should shop around with multiple lenders to see which one offers the lowest margin.
ARMs also come with limits on how much they can change and how high they can go. For example, an ARM might be limited to a 2% increase or decrease every time it adjusts, with a maximum rate of 8%.
If you’ve been actively house hunting for a while, chances are you’ve come across a real estate listing that was referred to as a HUD home. But what exactly does that mean? Is this type of home worth considering as your next purchase?
Discover everything you need to know about HUD homes and whether this type of home is right for you. While there is some risk involved, the potential for reward is also great. So read on and see if you should start searching for HUD homes in your area.
What is a HUD home?
Owned by the U.S. Department of Housing and Urban Development (HUD), a HUD home is a type of residential foreclosure. Traditional foreclosures occur when a homeowner defaults on their home loan.
If they can’t reach a repayment agreement with their lender, the lender takes ownership of the property. Then, the lender lists the property for sale to get the balance owed on the mortgage loan.
FHA Insurance and Its Impact
Foreclosed properties often sell well below the amount owed to the lender, who then takes a loss on the property. However, if the home is insured by the Federal Housing Administration (FHA), the foreclosure process happens a little differently.
The Federal Housing Administration is actually a department within HUD. It doesn’t make loans directly, but it does help ensure borrowers with a specific type of loan to help encourage homeownership. The FHA also provides mortgage insurance to FHA-approved lenders.
FHA mortgages entice lenders to originate and fund the loan since underwriting standards are slightly less stringent than a conventional loan.
However, when a home financed by an FHA loan goes into foreclosure, HUD reimburses the original lender for the outstanding loan balance. HUD then takes over ownership and sells it to compensate for the cost it paid to the lender.
The Process of Buying a HUD Home
When a regular home is listed for sale, the seller works with their real estate agent to come up with a price based on comparable houses in the area.
When a HUD home is put on the market, it goes through an appraisal process to determine its fair market value. The list price also considers any necessary repairs that are needed in the home.
The HUD Bidding System
With a normal listing, you’d tour the house and make an offer to the seller via your respective real estate agents. It specifically helps to work with an agent who has experience with HUD homes, but it’s not necessary.
While you still tour HUD homes with your real estate agent, the offer process is entirely different. Rather than making a traditional offer, you place a bid. If your agent is registered with HUD, they can submit the bid online for you.
There is a designated bid period. Once yours is submitted, they will compare it to any other bids that have been received. If yours is the highest offer, you’ll get an acknowledgment from HUD.
At that time, your agent will send you a contract, which you have 48 hours to submit to your regional HUD office. This is the only way to lock in the home and get the ownership underway. Otherwise, they could put it back on the market. So, always submit your documents in a timely manner.
HUD Home Buying Process
You often only get one shot at placing an offer on a HUD home, so it’s important to develop an informed strategy beforehand. While you may think it warrants an automatic lowball offer, this isn’t necessarily the case, especially if you live in a competitive real estate market.
In addition to looking at comps in the area and the home’s condition, you can also base your offer on the length of time the home has been on the market. If it’s new on the market, you probably don’t want to come in too low on your offer price. This is unless you’re only interested in the property at a certain price point.
HUD Home Costs and Financing Options
HUD often accepts offers between 85% and 88% of the list price. That’s a good frame of reference when developing your bid unless, of course, someone comes in with a higher offer. If the property has been on the market for several months, you definitely have more leverage in making a lower offer.
Your deposit will generally range from $500 – $2,000. Your mortgage payments will depend on how much your down payment is. The higher your down payment amount, the lower your mortgage payments will be. Closing costs usually average to be about 3-4% of the purchase price of a home. However, if you buy a HUD home, HUD may pay most of your closing costs.
Assessing Risks and Rewards in ‘As-Is’ HUD Home Sales
That’s because, unlike most regular listings, HUD homes are sold as-is. So, regardless of what work needs to be done, HUD will not take care of it to sell the house. But, of course, this is typically true of any foreclosed property.
That’s why it’s vital to have an inspection completed before you make an offer. Unlike other buying processes, you should have the inspection done first. Then, use it to inform your bid offer because you can’t renegotiate based on the results.
It’s definitely worth spending a couple of hundred dollars to ensure the needed renovations are within your scope.
Pros and Cons of Buying a HUD Home
Purchasing a HUD home can be an attractive option for many buyers, offering a unique blend of financial advantages and potential challenges. Understanding these pros and cons is crucial in making an informed decision.
Pros
Competitive pricing: One of the most significant benefits of HUD homes is their affordability. These properties are typically priced below-market value, providing an excellent opportunity for buyers to secure a home at a reduced cost. This pricing advantage makes HUD homes particularly appealing to first-time buyers and those looking for good value in the housing market.
Accessible down payments: HUD homes often come with the advantage of requiring lower down payments. In some cases, buyers may be eligible to make a down payment as low as 3.5% of the purchase price. This lower threshold can make homeownership more accessible, especially for those who may struggle to save for a larger down payment required in traditional home purchases.
Reduced Closing costs: Another financial benefit of purchasing a HUD home is the potential for lower closing costs. HUD may cover a portion of these costs, reducing the overall expenses that buyers need to pay out-of-pocket. This can make the process of buying a home more affordable and less daunting financially.
Cons
‘As-Is’ condition: One of the primary challenges of buying a HUD home is that they are sold in ‘as-is’ condition. This means that the buyer assumes responsibility for all repairs and renovations needed, which can sometimes be extensive. Potential buyers should carefully consider the condition of the property and be prepared for the possibility of unforeseen repair expenses.
Lengthier closing process: The process of closing on a HUD home can be more time-consuming compared to traditional home purchases. This is due to the additional paperwork, approvals, and procedures required by the government. Buyers should be prepared for a potentially prolonged process and factor this into their planning.
Additional financial considerations: While HUD homes can offer lower initial costs, they may require additional financial commitments, such as escrow deposits for repairs. These added expenses can arise from the need to address issues not covered under the ‘as-is’ purchase agreement. It’s important for buyers to be aware of and budget for these potential extra costs.
Financing Your HUD Home Purchase
You don’t need your full offer price in cash; in fact, you can use just about any loan type. The trick is to make sure the home’s condition qualifies for the loan type’s eligibility requirements.
Government-backed loans such as FHA, VA, and USDA loans have stricter requirements than conventional loans. For example, an appraiser for FHA loans looks for the following items:
A lot sloping away from the house
Windows in each bedroom
Chipped lead paint (in pre-1978 homes)
Handrails on stairs
Sufficient heating system
Solid roof and foundation
If the HUD property does not meet these basic requirements, you’ll need to find alternative financing. A conventional loan appraisal is more concerned about the home’s market value and comes with stricter credit and income requirements.
There are options, however, to finance repairs. One is a 203(B) loan, which allows you to finance up to $5,000 in repairs. The other is a 203(K) loan, which finances up to $35,000 in repairs.
Finding HUD Homes in Your Area
Your real estate agent can help you locate HUD homes in your area, especially if that’s their area of expertise. However, to start looking on your own, you can access HUD’s database of homes for sale. This online tool allows you to search several criteria to find the home you want in a specific location.
You can search by state, county, or city, as well as price range and home features. In addition to the number of bedrooms, bathrooms, and square footage, you have the option to search for a limited number of special features, including:
Fireplace or wood stove
Single or multiple stories
Outdoor amenities, like patio, pool, porch, or fence
Parking type
Housing type
Property age
Despite not being as user-friendly as a site like Zillow, the HUD website allows you to browse listings and find something that meets your needs.
Can investors buy HUD properties?
Purchasing a foreclosed home as an investment can be a great idea, assuming you’ve done ample research into your local market.
If you’re ready to jump into the real estate game as a landlord or Airbnb host, you should certainly add the HUD portal to your property source list. However, it’s important to realize that there are a few restrictions for investors.
As we mentioned earlier, HUD properties are listed in bidding periods. The first period is an “exclusive listing period” and only accepts offers from owner-occupant buyers, non-profit organizations, and government entities. In other words, they are initially offered to buyers who intend to live in them as their primary residence.
After that 15-day period, if no offer has been submitted, HUD opens up an extended bidding period to investors. At that point, you may submit a bid to purchase the property as some type of investment.
What happens if a HUD property is not sold?
HUD lists its foreclosure homes for six months before taking other actions. If the home is not sold within that time frame, they can sell the property to a nonprofit or government agency for $1. The home must then be transformed into either affordable housing for families within the community, or benefit the area in some other way.
HUD also offers programs for public servants such as teachers and police officers. This program, called the Good Neighbor Next Door, provides teachers, police officers, firefighters, and EMTs with a 50% discount off the list price of eligible HUD homes.
This program aims to revitalize and strengthen communities by having public servants live and work in the same place.
Is a HUD Home Right for You?
Be aware of the potential for both risk and reward. Start by evaluating your wishlist for a home, whether it’s for yourself or as an investment.
If you’re looking for a move-in ready house, it may not be right for you. It’s also not a good idea if you’re risk-averse. Even if you perform a home inspection, it may not catch every single problem with a home.
Even after the former owner vacates the property, it takes time for the original lender to process the paperwork and transfer the property to HUD. Then HUD must perform an appraisal and go through the listing process. This lengthy process can lead to additional neglect and damage incurred to the property.
The Reality of Distressed Properties
On the plus side, you may have the opportunity to gain some quick equity, depending on the location, condition, and final sales price. This is especially true if you’re willing to buy a fixer-upper.
As long as you understand the process and the associated risks of buying a HUD home, you can potentially put yourself into a better financial situation. This includes a lower monthly mortgage payment and greater home equity.
Just be realistic about what you’re willing to put into a home (both time and money). Furthermore, play out worst-case scenarios and make sure you’re ok with each of them. With an open and informed mind, you could get a great housing deal with HUD.
Frequently Asked Questions
How do I purchase a HUD home?
You can purchase a HUD home by submitting a bid through an approved real estate broker, or by submitting an offer directly to HUD.
Who is eligible to purchase a HUD home?
Anyone can purchase a HUD home. However, certain restrictions may apply, such as income limits and owner occupancy requirements.
Is there a minimum bid requirement for HUD homes?
No, HUD does not specify a fixed minimum bid amount for its homes. The acceptable bid varies based on the property’s appraised value and market conditions. Very low bids are less likely to be accepted, especially during initial periods reserved for owner-occupants. For specific bidding information, consult the HUD Home Store or a real estate agent with HUD experience.
Can I buy a HUD home as a vacation property or second home?
HUD homes are primarily intended for buyers who will use them as their primary residence. There are specific periods during the bidding process when only owner-occupant bids are considered. However, if a HUD home remains unsold after these periods, it may become available for purchase as a vacation or second home.
Is it possible to negotiate the price of a HUD home?
Unlike traditional real estate transactions, the price of a HUD home is generally non-negotiable. HUD homes are priced at fair market value, considering their condition. The bidding process is the primary way to determine the final sale price, and HUD will accept the highest reasonable offer.
How long does it take to close on a HUD home after my bid is accepted?
The closing process for a HUD home can vary, but it generally takes longer than a traditional home purchase. Typically, you can expect the closing process to take anywhere from 30 to 60 days from the acceptance of your bid. This timeframe can be affected by various factors, including the type of financing and the specific procedures of your local HUD office.
Are HUD homes eligible for home warranties?
HUD homes are sold ‘as-is’ and do not come with warranties. Buyers are encouraged to have a home inspection before making a bid to understand any potential issues. However, after purchase, homeowners can independently obtain home warranties from private providers for future protection.
What is the ‘Good Neighbor Next Door’ program?
The Good Neighbor Next Door program is a HUD initiative aimed at encouraging community revitalization. This program offers a significant discount (up to 50% off the list price) on eligible HUD homes to law enforcement officers, teachers, firefighters, and emergency medical technicians who commit to living in the property as their primary residence for at least 36 months.
The Miami International Airport (MIA) served more than 50.5 million passengers in 2022. With all the lively foot traffic upon entering the airport, you’ll likely want to seek comfort and quiet in an airport lounge as soon as you get airside.
Knowing where your nearest eligible airport lounges are in advance gives you more time to unwind before your flight. Here’s a list of all of the Miami airport lounges.
About Miami airport lounges
Miami International Airport lounges are located in every terminal, though you’ll need to meet the entry requirements of the lounge you’re interested in using. Many Miami airport lounges restrict access to travelers who have qualifying loyalty status or access through a credit card.
Travelers with Priority Pass, or who are willing to purchase a one-day pass might be able to gain lounge access. Admittance, however, is generally based on capacity during the time of your visit.
North Terminal: Flagship Lounge, Admirals Club and Centurion Lounge
If you’re departing from the north terminal, here are your closest lounges in the Miami airport.
Flagship Lounge
Location: Past security checkpoint, across from Gate D-30.
Hours: 5:30 a.m. to 10:30 p.m.; open daily.
How to get in: Accessible to qualifying first and business-class customers, AAdvantage Executive Platinum, AAdvantage Platinum Pro, AAdvantage Platinum and Alaska Airlines Mileage Plan MVP Gold 75K and MVP Gold, ConciergeKey, and Oneworld Emerald and Sapphire members. To get in just show your boarding ticket for an American or another Oneworld carrier flight.
Guests can enjoy complimentary food and drinks, and can access a specialty cocktail bar and wine table. There are also showers available to freshen up before your flight.
Admirals Club D-15 and D-30
Location: Two separate lounges, both past the security checkpoint. One is across from Gate D-15, and the other is across Gate D-30.
D-15 lounge: 5:30 a.m. to 10:30 p.m.; open daily.
D-30 lounge: 6 a.m. to 8:30 p.m.; open daily.
How to get in: You must be an Admirals Club member, a non-AAdvantage Oneworld Emerald or Sapphire member, or be a qualifying first and business-class customer. Upon arrival, you must show your same-day ticket for a flight on American or another Oneworld flight, and provide a qualifying credit card (if applicable) for entry. Depending on capacity, you might be able to buy an Admirals Club One-Day Pass for $79.
Guests receive complimentary food, drinks and access to a full-service bar. The lounges offer free Wi-Fi and showers, and the Admirals Club adjacent to Gate D-30 has a conference room that can be booked in advance.
The Centurion Lounge
Location: In concourse D, near Gate D-12. Take the elevator to the fourth floor.
Hours: 5 a.m. to 10 p.m.; open daily.
Visitors of the Centurion Lounge in the Miami airport can access spa services and showers, along with seasonal cuisine and a premium bar. It also offers a family room, and semi-private workspaces.
Central Terminal: Military Hospitality Lounge and Turkish Airlines
Travelers who are departing from MIA’s central terminal have a couple of lounge options. However, two lounges in this terminal are temporarily closed.
Military Hospitality Lounge
Location: Pre-security in Concourse E, second level.
Hours: 9 a.m .to 5 p.m. Thursday – Monday.
How to get in: You must be a U.S. or Allied active duty or retired military member with proof of same-day travel and your government-issued military ID. Your authorized dependents can also join you in the lounge.
The lounge offers hot beverages, water and soft drinks, as well as complimentary snacks.
Turkish Airlines Lounge
Location: Past the security checkpoint, go to Concourse E, on the second floor.
Hours: 5 a.m. to 10 p.m.; open daily.
How to get in: Available for all Priority Pass members, and first and business class passengers of Turkish Airlines, United Airlines, Aer Lingus, Air Italy, LOT Airlines, TAP Portugal and all Star Alliance members. Be ready to show your same-day boarding pass and Priority Pass card, if applicable.
Guests have access to showers and Wi-Fi. You will also enjoy complimentary food and refreshments, including alcohol.
Temporarily closed central terminal lounges in the Miami airport
Admirals Club, Concourse E.
Club America, Concourse F.
South Terminal: Delta Sky Club and The VIP Lounge
If you’re looking for an airport lounge in the Miami airport’s south terminal, here are your options.
Delta Sky Club
Location: Past the security checkpoint in Concourse H, second floor.
Hours: 4:45 a.m. to 8:45 p.m.; open daily.
How to get in: If you have a same-day ticket on Delta or a Delta-partner airline, access is available to:
Terms apply.
The lounge offers complimentary high-speed Wi-Fi, food, beverages and cocktails. Showers are also available.
The VIP Lounge
Location: Past security checkpoint in Concourse J, near Gate J-3.
Monday, Wednesday, Thursday, Saturday and Sunday: 1 a.m. to 12:30 a.m.
Tuesday: 8 p.m. to 12:30 a.m.
How to get in: The lounge is available by invitation only for first and business class passengers of member airlines.
The VIP Lounge offers complimentary buffet-style food, beverages, showers and Wi-Fi.
Turkish Airlines Lounge
Location: Past security checkpoint in Concourse H, on the third floor.
Hours: 4 a.m. to 10 p.m.; open daily. Hours may vary.
How to get in: Available to first and business-class passengers traveling on Star Alliance partner airlines, and Turkish Airlines Elite and Elite Plus passengers. Access is also available to Priority Pass, Lounge Club, Lounge Key and Diners Club members. Depending on capacity, day passes might be available for additional purchase.
Complimentary food, beverages (including alcohol), and Wi-Fi. Day beds and showers are also available.
Temporarily closed south terminal Miami airport lounges
The Avianca Lounge, Concourse J.
Final thoughts on lounges at MIA
Although MIA is one of the busiest airports in the U.S., its lounges offer pockets of respite for weary travelers.
Before your next flight, check whether you have complimentary access to any of the Miami airport lounges mentioned above, either through your airline loyalty membership, credit card benefit or other qualifying program.
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:
While the dream of homeownership might seem elusive on a tight budget, the availability of low income home loans offers a beacon of hope.
These specialized loans come in handy, particularly when the obstacles of saving for a down payment loom large—a common hurdle if you’re already strapped with rent payments.
So if you’re wondering how to bridge the financial gap between renting and owning, read on to explore the various low income home loan programs that could unlock the door to your future home.
Verify your home buying eligibility. Start here
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Can I buy a house with low income?
Yes, you can buy a house with a low income by qualifying for housing assistance programs and special mortgage loans. That’s because there is no minimum income requirement to buy a house.
However, your ability to do so will depend on a variety of factors specific to your financial situation. A mortgage lender will examine your credit score, debt-to-income ratio, and down payment to determine if you qualify.
Check your mortgage eligibility. Start here
What are low income home loans?
The path to homeownership can be fraught with challenges, particularly for those with limited financial resources. Enter low income home loans—a specialized type of mortgage designed to level the playing field for buyers facing financial barriers.
Low-income mortgage programs focus on addressing the common challenges that low-income earners encounter, such as managing debt, maintaining less-than-stellar credit scores, and struggling to save for a significant down payment.
Verify your home buying eligibility. Start here
Minimal down payment requirements: One of the most daunting aspects of buying a home is accumulating a large down payment. Low income home loans often require smaller down payments, making it easier for buyers to make the initial leap.
Lenient credit criteria: Having a perfect credit score is not always feasible, especially when living on a limited income. These loans often have more flexible credit requirements, allowing for a broader range of credit histories.
Reduced costs at closing: High closing costs can be another hurdle. Low income home loan programs may offer reduced or even waived closing costs in certain circumstances.
Competitive mortgage interest rates: High interest rates can quickly make a mortgage unaffordable. Low income home loans often feature competitive interest rates, reducing long-term costs.
Lower mortgage insurance premiums: Some programs offer reduced premiums for mortgage insurance, further lowering monthly payments.
Interestingly enough, some of these programs often have income caps, essentially barring applicants who have incomes that are considered too high. This ensures that the programs benefit those who need them most.
Requirements for low income home loans
Your ability to qualify for a loan is not solely based on your income. Lenders will assess your debt-to-income (DTI) ratio, a key metric that represents your monthly debts as a percentage of your monthly income. Generally, a DTI under 35% is viewed as favorable, making you a more appealing candidate for a mortgage.
If saving a down payment is your chief concern, don’t worry; there are plenty of options that require minimal, or sometimes zero, down payments. Despite common misconceptions, a 20% down payment is not a universal requirement.
Additional Assistance
Beyond the loan itself, there are various homebuyer assistance programs that can help with the down payment and closing costs. Some of these are structured as grants that don’t require repayment, making it easier to achieve the dream of owning a home.
Navigating the complexities of mortgages and home buying can be intimidating, but low income home loans and assistance programs offer a lifeline to those who dream of owning their own home. These financial products and services are tailored to alleviate the most common obstacles, offering a viable path to homeownership for those who may have thought it was out of reach.
Low income home loans
Low income home buyers have plenty of loan options and special assistance programs to help with a home purchase. Here’s what you can expect.
Check your mortgage eligibility. Start here
Loan Type
Credit Score
Down Payment
Unique Requirements
HomeReady
Generally 620
As low as 3%
Income limits based on area, homebuyer education course required
Home Possible
Generally 660
As low as 3%
Must be primary residence, income limits may apply, can include 1-4 unit properties
Must be a qualifying service member, veteran, or eligible spouse; primary residence only
USDA Loans
Usually 640
No down payment required
Must be in a qualifying rural area, income limits apply, primary residence only
HomeReady and Home Possible mortgages
Fannie Mae’s HomeReady program and Freddie Mac’s Home Possible loan are geared toward lower-income home buyers. You need only 3% down to qualify, and there is no minimum “required contribution” from the borrower. That means the money can come from a gift, grant, or loan from an acceptable source.
Even better, the home seller can pay closing costs worth up to 3% of the purchase price. Instead of negotiating a lower sales price, try asking the seller to cover your closing costs.
Private mortgage insurance (PMI) may also be discounted for these low income home loans. You’re likely to get a lower PMI rate than borrowers with standard conventional mortgages, which could save you a lot of money from month to month.
“This is the biggest benefit,” says Jon Meyer, The Mortgage Reports loan expert and licensed mortgage loan originator. “The PMI is offered at a lower rate than with a standard conventional loan.”
Finally, Home Possible and HomeReady might make special allowances for applicants with low incomes. For instance, HomeReady lets you add income from a renter on your mortgage application, as long as they’ve lived with you for at least a year prior. This can help boost your qualifying income and make it easier to get financing.
You might qualify for HomeReady or Home Possible if your household income is below local income limits and you have a credit score between 620 and 660.
FHA loans
FHA loans offer flexible approval requirements for repeat and first-time home buyers alike. This program, which the Federal Housing Administration backs, relaxes borrowers’ standards to get a mortgage. This can open up the home-buying process to more renters.
You might be able to get an FHA home loan with a debt-to-income ratio (DTI) up to 45% or a credit score as low as 580 while paying only 3.5% down
Select FHA lenders even allow credit scores as low as 500, provided the buyer can make a 10% down payment
Thanks to these perks and others, the FHA loan is one of the most popular low-down-payment mortgages on the market.
Check your FHA loan eligibility. Start here
VA loans
Veterans Affairs-backed VA loans provide military homebuyers with a number of advantages.
No down payment requirement. You can finance 100% of the purchase price. You can also refinance 100% of your home’s value using a VA loan
No mortgage insurance. But you will pay a one-time VA Funding Fee. You can wrap it into the loan amount.
No minimum credit score. Although lenders are allowed to add their own minimums. Those that do often require a FICO score of at least 580 to 620.
Sellers can pay up to 4% of the purchase price in closing costs. So if you find a motivated seller, you could potentially get into a home with nothing out of pocket
If you’re a veteran, active-duty service member, or surviving spouse, the VA mortgage program should be your first stop.
Check your VA loan eligibility. Start here
USDA loans
If you’re not buying in a large city, you may qualify for a USDA home loan. Officially called the Single-Family Housing Guaranteed Loan Program, the USDA loan was created to help moderate- and low-income borrowers buy homes in rural areas.
With a USDA loan, you can buy a home with no money down. The only catch is that you must buy in a USDA-approved rural area (though these are more widespread than you might think). You can find out if the property you’re buying is located in a USDA-eligible rural area and whether you meet local income limits using the USDA’s eligibility maps.
Your monthly payments might be cheaper, too. That’s because interest and mortgage insurance rates are typically lower for USDA loans than for FHA or conforming loans.
There are two types of USDA loans.
The Guaranteed Program is for buyers with incomes up to 115% of their Area Median Income (AMI)
The Direct Program is for those with incomes between 50% and 80% of the AMI
Standard USDA-guaranteed loans are available from many mainstream lenders. But the Direct program requires borrowers to work directly with the U.S. Department of Agriculture.
You typically need a credit score of 640 or higher to qualify.
Check your USDA loan eligibility. Start here
Low income home loan programs
Aside from mortgages that are designed to help people with low incomes buy a home, there are also a number of other programs that offer help to make homeownership more accessible.
Verify your home buying eligibility. Start here
Program
Description
Who Is Eligible
Hud Homes
Discounted homes sold by the Department of Housing and Urban Development.
Low- to moderate-income families, with preference for those who will make it their primary residence. May include single-family homes.
Housing Choice Voucher Program
Vouchers to subsidize the cost of housing in the private market.
Low-income families; must meet income and other criteria set by state and local housing programs.
Good Neighbor Next Door
Significant discounts on homes for teachers, firefighters, police officers, and EMTs.
Must commit to living in the property as a primary residence for at least 36 months. Includes single-family homes.
HFA Loans
Loans offered by state Housing Finance Agencies with reduced interest rates and down payment assistance.
First-time or repeat buyers with low to moderate incomes must meet income requirements. Often, it must be a primary residence.
Down Payment Assistance
Grants or loans to cover the down payment and sometimes closing costs.
Typically for low- to moderate-income families, though criteria can vary by program. Often for single-family homes.
State or Local Assistance
Various grants, loans, or tax credits are offered at the state or local level.
Eligibility varies but usually targets low- to moderate-income families. May include single-family homes.
Mortgage Credit Certificates
Tax credit to reduce federal income tax liability.
First-time homebuyers who meet income requirements; must be primary residence.
Manufactured and Mobile Homes
Loans or grants specifically for manufactured or mobile homes.
Low- to moderate-income families; must meet criteria set by specific housing programs. Usually must be primary residence.
Hud Homes
When the FHA forecloses on homes, those properties are often put up for sale as HUD Homes. And, you can generally purchase one at a steep discount. To qualify for a HUD Home, it will need to be your primary residence for at least 12 months. Additionally, you must not have purchased another HUD in the past 24 months.
Keep in mind that HUD Homes are sold as-is. Many are fixer-uppers. Moreover, HUD Homes are purchased through a bidding process. You’ll need a real estate agent or mortgage broker licensed with HUD to bid on an FHA property.
You can find HUD Homes on the official HUD website, hudhomestore.com. There, you’ll see all HUD real estate owned (REO) single-family properties in your area.
Good Neighbor Next Door
The Good Neighbor Next Door program offers unique benefits for nurses, first responders, and teachers. If you’re eligible, you can buy HUD foreclosure homes at a 50% discount. Use an FHA mortgage, and you only need $100 for a down payment.
You can find the homes on the U.S. Department of Housing and Urban Development website. You’ll also need a HUD-licensed real estate agent to put your offer in for you.
If your offer is accepted and you qualify for financing, you get the home. The 50% discount makes homeownership a lot more affordable. However, be aware that this discount is actually a second mortgage. But it has no interest and requires no payments. Live in the home for three years, and the second mortgage is forgiven entirely.
HFA home loans
Not to be confused with FHA loans, HFA loans are offered in partnership with state and local Housing Finance Authorities.
Many HFA loans are conventional mortgages backed by Fannie Mae and Freddie Mac. They may require as little as 3% down, and many HFA programs can be used with down payment assistance to reduce the upfront cost of home buying.
Borrowers who qualify for an HFA loan might also be in line for discounted mortgage rates and mortgage insurance premiums. To qualify, you’ll typically need a credit score of at least 620. But eligibility requirements vary by program.
Find and contact your state’s public housing finance agency or authority to learn more and see if you qualify. Also, be aware that this type of loan program will require additional approval steps that may make loan closing take longer.
Down payment assistance programs (DPAs)
Down payment assistance is exactly what it sounds like. It provides help with down payments on home purchases and often closing costs. Government agencies, nonprofits, and other sources commonly offer down payment and closing cost assistance. They are usually in the form of a grant or loan (though the loans may be forgiven if you stay in the house for five to ten years).
Most DPA programs target low-income home buyers and have guidelines that make qualifying easier. Some, however, provide assistance to people who buy in “underserved” or “redevelopment” areas, regardless of income. Many DPA programs offer assistance worth tens of thousands of dollars.
Talk to a lender about your options. Start here
Mortgage Credit Certificates (MCCs)
Mortgage credit certificates (MCCs) can stretch your home-buying power. If you meet income requirements, you could get a tax credit equal to some percentage of your mortgage interest. Lenders are allowed to add this credit to your qualifying income when underwriting your mortgage. This allows you to qualify for a higher mortgage amount than you otherwise could.
There are numerous states, counties, and cities that issue mortgage credit certificates, and their regulations and amounts vary greatly. Check with your local housing finance authority to find out whether MCCs are available where you live.
Housing Choice Voucher Program
The Housing Choice Voucher homeownership program (HCV) provides both rental and home buying assistance to eligible low-income households. Also known as Section 8, this program allows low-income home buyers to use housing vouchers to purchase their own homes.
Because local public housing agencies run these voucher programs, eligibility varies depending on location. Still, you’ll likely need to meet the following requirements:
Program-specific income and employment conditions
Being a first-time home buyer
Completing a pre-assistance homeownership and counseling program
Keep in mind that not all states offer voucher programs, and some programs have waiting lists. Also, these programs could limit how much you can sell the home for later on. To find out if your area offers a participating program, use the HUD locator web tool.
Manufactured and mobile homes
A manufactured home usually costs less than a traditional, site-built home. When placed on approved foundations and taxed as real estate, manufactured homes can be financed with mainstream mortgage programs.
Many programs require slightly higher down payments or more restrictive terms for manufactured homes. HomeReady, for example, increases the minimum down payment from 3% to 5% if you finance a manufactured home. Other programs require the home to be brand new.
Additionally, there are often requirements regarding the year the home was built and the property’s foundation. These guidelines will vary between lenders. Mobile homes that are not classified as real estate can be purchased with personal loans like the FHA’s Title 2 program. These are not mortgages because the homes are not considered real estate.
Check your mortgage options. Start here
Tips for buying a house with low income
Whether you’re buying a new home or your first home, these tips can help you achieve your homeownership goals.
Verify your home buying eligibility. Start here
Improve your credit history
Improving your FICO score is the best way to increase your chances of loan approval and qualify for lower mortgage rates.
The credit score needed to purchase a home varies depending on the type of loan you apply for. Conventional loans typically require a score of at least 620, while FHA loans often require at least 580.
Start by pulling free credit reports from annualcreditreport.com to determine your current score. Next, consider a few of the common methods for increasing credit scores. The amount of work that you’ll need to do will depend on your personal financial situation.
As an example, if your credit score is low because you’re using too much of your available credit, you may benefit from a debt consolidation loan to tame your high-interest account balances and improve your credit utilization.
On the other hand, if your credit history reveals missed payments, you’ll need to show at least 12 months of regular, on-time payments to improve your score.
Save for a down payment
The average first-time home buyer puts just 13% down on a new home. Yet, many loan programs require as little as 3% down or no down payment at all.
Remember that you still have to pay closing costs, which are typically around 2% to 5% of your mortgage loan amount. If you put less than 20% down, you’ll almost certainly have to pay for mortgage insurance.
In addition, you may need cash reserves in your savings account. This assures lenders that you can make your monthly mortgage payments should you suffer a financial setback. However, don’t let the down payment scare you away from homeownership. Many buyers qualify without even knowing it.
Pay down debts
Paying down debts will lower your debt-to-income ratio and improve your odds of mortgage approval. This is especially true for those with high-interest credit card debt.
You’ll likely qualify for lower rates when you have:
A low debt-to-income ratio (DTI)
High credit score
3% to 5% down payment
Stable income for the past two consecutive years
Use a first-time home buyer program
First-time buyer programs offer flexible guidelines for qualified buyers. Plus, these special programs exist in every state to help low-income households achieve homeownership.
Unlike traditional conventional loans, the government backs many first-time buyer mortgages. This allows mortgage lenders to offer loans with better rates and lower credit score requirements than they normally would be able to.
Verify your low income home loan eligibility. Start here
Model your budget
Owning a home requires more than qualifying for a loan and making monthly mortgage payments. Homeowners are responsible for a variety of ongoing costs, including:
Homeowners insurance
Property taxes
Mortgage insurance (in many cases)
Utility bills
Ongoing home maintenance
Home improvements
Appliance repair and replacement
Home buyers who have experience paying these ongoing costs of homeownership will be better prepared for the big day when they get the keys to their dream home.
Plus, sticking to this model budget in the months and years before purchasing a home and then saving the money you would spend on housing costs, such as insurance premiums and utilities, is a great way to build cash reserves and save for a down payment.
Use a co-signer
If you’re on the edge of qualifying for your own loan, using a co-signer may be an option.
Essentially, when you buy a house with a co-signer, you and your co-signer are both responsible for making the monthly payments. You’ll both also build and share in the home’s equity. Purchasing a home with a co-signer is quite common among unmarried couples, friends, and family members.
FAQ: Low income home loans
Verify your home buying eligibility. Start here
How do you buy a house with low income?
To buy a house with a low income, you have to know which mortgage program will accept your application. A few popular options include: FHA loans (allowing low income and as little as 3.5 percent down with a 580 credit score); USDA loans (for low-income buyers in rural and suburban areas); VA loans (a zero-down option for veterans and service members); and HomeReady or Home Possible (conforming loans for low-income buyers with just 3 percent down).
I make $25K a year; can I buy a house?
Mortgage experts recommend spending no more than 28 percent of your gross monthly income on a housing payment. So if you make $25K per year, you can likely afford around $580 per month for a house payment. Assuming a fixed interest rate of 6 percent and a 3 percent down payment, that might buy you a house worth about $100,000. But that’s only a rough estimate. Talk with a mortgage lender to get the exact numbers for your situation.
How do I qualify for a low-income mortgage?
Whether or not you qualify for a low income home loan depends on the program. For example, you might qualify for an FHA mortgage with just 3.5 percent down and a 580 credit score. Or, if your house is in a qualified area and you’re below local income caps, you might be able to get a zero-down USDA mortgage. Veterans can qualify for a low-income mortgage using a VA loan. Or, you can apply for the mortgage with a co-borrower and qualify based on combined incomes.
What programs are available for first-time home buyers?
Low income home loans can help first-time home buyers overcome hurdles like low credit or income, smaller down payments, or high levels of debt. A few good programs for first-time home buyers include Freddie Mac’s Home Possible mortgage, Fannie Mae’s HomeReady mortgage, the Conventional 97 mortgage, and government-backed loans like FHA, USDA, and VA. First-time home buyers can also apply for down payment assistance grants through their state or local housing department.
Can the government help me buy a house?
There are a number of ways the government can help you buy a house. Perhaps the most direct way to get help is by applying for down payment assistance. This is a grant or low-interest loan to help you make a down payment. You can also buy a house using a government-backed mortgage, like the FHA or USDA. With these programs, the government essentially insures the loan, so you can buy with a lower income, credit score, or down payment than you could otherwise.
How do I buy a house without proof of income?
You can no longer buy a house without proof of income. You have to prove you can pay the loan back somehow. But there are modern alternatives to stated-income loans. For instance, you can show “proof of income” through bank statements, assets, or retirement accounts instead of W2 tax forms (the traditional method). Many people who want to buy a house without proof of income these days find a bank statement loan to be a good option.
How do you rent to own?
A lease option or rent-to-own home isn’t exactly what it sounds like. You don’t simply rent until the house is paid off. Instead, you usually pay a higher rent for a set period of time. That excess rent then goes toward a down payment when you buy the house at a later date. Rent-to-own might help you buy a house if you don’t have a lot of cash on hand right now or if you need to improve your credit score before applying for a mortgage. However, rent-to-own requires seller cooperation and comes with unique risks.
Can I rent-to-own with no down payment?
Rent-to-own does not mean you can buy a house with no down payment. When you rent-to-own, you’re paying extra rent each month that will go toward your down payment later on. And usually, rent-to-own contracts include an option fee that’s a lot like a down payment. The option fee is smaller. Think 1 percent of the purchase price instead of 3 to 20 percent. And that fee eventually goes toward your purchase. But it’s still a few thousand dollars you must pay upfront to secure the right to buy the home later on.
Can I get a grant to buy a house?
Qualified buyers can get a grant to buy a house. These are called down payment assistance grants. They won’t pay for the whole house, but they can help cover your down payment to make a mortgage more affordable. You’re most likely to qualify for a grant to buy a house if you have a low to moderate income and live in a target area.
What type of low income home loan is the easiest to qualify for?
FHA loans are generally the easiest low income home loan to qualify for. The federal government insures these loans, which means lenders can relax their qualifying rules. It’s possible for a home buyer with a credit score of 500 to get approved for an FHA loan, but most FHA lenders look for scores of 580 or better. And a FICO score of 580 lets you make the FHA’s minimum down payment of 3.5 percent.
How can I get a home loan with low monthly payments?
To get the lowest possible monthly payment, choose a 30-year loan term, find a cheaper home, put more money down, and make sure you have excellent credit before applying for your mortgage. If you can afford a 20 percent down payment, you can avoid PMI premiums, which lower your monthly payments even more. Veterans can get VA loans that require no PMI, regardless of their down payment size.
What’s the lowest amount you can put on a house?
Some home buyers can put no money down with a VA or USDA loan. Conventional loans will require at least 3 percent down, and FHA loans will require at least 3.5 percent down. Down payment assistance grants and loans could help you cover some or all of this down payment.
How much house can I afford if I make $30K a year?
If you make $30,000 a year, you could probably spend about $110,000 on a house, assuming you get a 30-year fixed-rate mortgage at 6 percent. This is a rough estimate. Your unique financial situation may be different. Getting a pre-approval from a lender is the only way to find your actual price range.
What are today’s mortgage rates for low income home loans?
Many low-income mortgage programs have lower interest rates than “standard” mortgage loans. So you might get a great deal.
However, interest rates vary depending on the borrower, the loan program, and the lender.
To find out where you stand, you’ll need to compare loan offers from several lenders and then choose your best deal.
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