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Homebuyers who want modern touches and few maintenance worries may opt to purchase new construction or have a home built to order.

In mid-2024, the median price of a new home was $429,800, according to the U.S. Census Bureau. As homebuyers have found a shortage of existing homes on the market in recent years, new-home construction has worked to fill the gap and consumers may find builders offering incentives to choose new construction. You’ll want to understand the market and learn some of the lingo.

Understanding New Construction Homes

On the upside, newly constructed homes can come with warranty-backed electronics, energy efficiency, and high-end features.

But new construction isn’t without potential snags, such as construction delays and the mounting price of upgrades.

The type of new construction you choose will determine cost and ability to customize and may also affect your home loan options.

•   Tract homes. These go up in a builder’s new development. The buyer chooses the lot and design features.

•   Spec homes. These are move-in-ready homes, but the buyer still might be able to choose some of the finishings. It’s a good idea to understand the difference between standard property features and upgrades.

•   Custom homes. A builder tailors a house to the buyers’ specifications on their land.

How Do I Buy a New Construction Home?

A first step is to get preapproved for a mortgage and hire a real estate agent. You’ll choose a builder, go over your desired home features, and sign the builder contract, which will include the anticipated timeline, the cost, and all other details.

Mortgage options for a tract or spec home are the same as buying an existing home: conventional or government-backed home loans.

Those who are building a custom home might use a construction loan for the build and then obtain a mortgage once the home is complete. There are, however, FHA, VA, USDA, and conventional construction-to-permanent loans, also called single-close loans.

Figuring Out the Costs of New Construction

How much does it cost to build a new house? For 2,500 square feet, it could cost $345,000, but of course, there are lots of variables, including location, the price of labor and materials, and your tastes.

For a spec home, it might be a good idea to look at comparables in your area. For a new build, HomeAdvisor suggests budgeting the amount each project of the home requires as well as the necessary time to build.

In normal times, expect to spend about 50% of your budget on materials, HomeAdvisor says.

Buying a staged model house? The upgrades are considered marketing costs, and the home may have been walked through many times. You might have lots of room to negotiate.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Pros and Cons of Building or Buying a New Construction Home

Buying new has its pros and potential cons.

Pros

Everything’s New. Novelty can be a lure all its own. From a practical standpoint, new items signal less maintenance for years.

Additionally, with a from-scratch property, homebuyers may also be able to build their house on the precise plot of land that they want. Buying an existing home could mean having more neighbors nearby or less choice about the size or borders of the property.

Warranties. Appliances, roofing, and the HVAC system may be covered by manufacturer and construction warranties. Replacement or repair may be guaranteed for years, which can be a big relief when buying new construction as opposed to buying an existing home. Ask most homeowners about typical home repair costs. They are the opposite of fun.

Energy Efficiency. Homebuilding has been moving toward energy efficiency, or green architecture. Features like solar panels, treated windows, efficient lighting, and energy-saving appliances curb home energy expenses over the life of owning a home.

Reduced Homebuyer Competition. If a buyer opts to build a new home on an undeveloped tract of land, chances are low that a competing homeowner wants to build in that exact location at the same time.

Benefitting From Buying Discounts. A local contractor has ties to building supply companies and hardware stores. These business-to-business connections may translate into lower costs.

Cons

Land-Starved Locations and Zoning. The denser a community — think a big city or large suburb — the harder it may be to find land to build on. Moreover, local zoning regulations often regulate the size and type of new homes that can be built on residential lots.

Potential Building Delays. It takes 7 to 12 months on average for a contractor to build a house, and 12.1 months for an owner to, according to census data. That’s a significant wait, but building delays are fairly common and add to the bottom line. If a homebuyer needs to rent, for instance, while the house is being constructed, any delays could mean extra housing expenses.

New-home buyers can prepare for changes by touring similar finished homes in the community, researching the builder’s reputation, and speaking to residents. It’s also a good idea to talk with the builder about common construction delays and how unexpected costs are handled.

Negotiating Price May Be Harder. When working with a homebuilding company, negotiating may not be possible. Many builders attach a minimum price to the construction of a new home.

Upgrades Add Up. If wood floors, glass-front cabinets, and premium tile are must-haves, be prepared to pay for them. There is usually a “starting-from” price attached to newly constructed homes. Upgrades can add substantial costs to a new home.

Buying Tips for Newly Built Homes

Prepare to breathe in that new-house smell, but first lay the foundation.

Line Up Financing

When it comes to buying any type of house, getting prequalified is good. Getting preapproved is more serious, because you will have let lenders vet your finances and give you a specific amount you qualify for.

Lenders can also recommend the best kind of financing for a new build.

Hire a Real Estate Agent

Homebuyers wanting to make a new dream home a reality may want to find a good real estate agent. Here’s one reason why that’s important: The sales contact from the home construction company is hired to represent the seller (i.e., the builder or developer). A buyer’s agent can champion buyers’ interests, negotiate the contract, and answer questions.

Ask for Builder Concessions, Sign the Contract

Homebuyers aren’t likely to get a builder to slash a new home’s sales price, but they might be able to gain some concessions. Some builders may offer upgrades at a reduced price to incentivize a homebuyer to buy.

Upgrades may come in the form of a higher grade of carpet, granite countertops, a more advanced HVAC unit, or higher-end kitchen appliances. It doesn’t hurt to ask.

Once you’re pleased with your decisions, you’ll sign the builder contract to buy a spec home or start construction on a home.

The Takeaway

Newly constructed homes have obvious appeal, but they can come with potential delays and other drawbacks. Buyers who have their heart set on a brand-new home will find that financing often works the same way as it does for an existing-home purchase.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Can you negotiate the price of a new construction home?

Negotiating the price of a new construction home can be challenging as many builders set a minimum price. However, it might be possible to negotiate upgrades or concessions instead of a price reduction. Homebuyers can work with a real estate agent to help them negotiate with the builder.

What is a realistic budget for building a house?

A realistic budget for building a house will vary depending on the location, size, and desired features. In general, a 2,500 square foot home requires a budget of around $345,000, not including the cost of land. But cost can increase or decrease depending on the specific materials and finishes chosen.

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.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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.

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.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

SOHL-Q324-056

Source: sofi.com

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Are you looking for the best digital marketing side hustles? Digital marketing side hustles are a great way to earn extra money online. With so many options like social media management, SEO, and affiliate marketing, there’s bound to be a side hustle that fits your interests and skills. Why should you start a digital marketing…

Are you looking for the best digital marketing side hustles?

Digital marketing side hustles are a great way to earn extra money online. With so many options like social media management, SEO, and affiliate marketing, there’s bound to be a side hustle that fits your interests and skills.

Why should you start a digital marketing side hustle? It gives you the freedom to work from anywhere, the flexibility to set your own schedule, and the chance to build new skills. Whether you’re a beginner or have some experience, you can probably find a digital marketing side hustle that works for you and suits your lifestyle.

I have been hearing the term “digital marketing side hustle” a ton online lately, and I wanted to write a full article on it so that you can learn more about it as well. These types of side hustles are extremely popular right now (and I think they will be for a really long time)!

What is digital marketing?

Digital marketing is any online marketing that takes place on the internet.

It includes a lot of different activities:

  • Social media – Sharing posts on platforms like Facebook and Instagram
  • Email – Sending promotional messages to people’s inboxes
  • SEO (Search engine optimization) – Making a website more visible on search engines like Google
  • Content creation – Writing blog posts or making videos to connect with an audience

Why is digital marketing important?

It helps businesses reach more people. Many people shop online, so having a strong presence is key.

A digital marketing side hustle is a way to make extra money by growing a business online (this could be your own business or someone else’s!). This could mean running social media accounts, making ads, writing content, or improving websites so they show up better in search results (SEO).

It’s a flexible job you can do from home and often at your own pace, which is great if you want to earn money without a full-time job. Some people even turn their digital marketing side hustle into a full-time job (this is what I’ve done!).

Best Digital Marketing Side Hustles

Below are the best digital marketing side hustles.

1. Blogging

Blogging is a great digital marketing side hustle for a person who wants to be creative.

For me, this is my favorite digital marketing side hustle, and I started this very blog that you’re reading as a side hustle. (It’s now my full-time job.)

I started making over $1,000 a month from my blog around one year after starting, and I was making around $10,000 a month just two years later. I have now earned over $5,000,000 from my blog over the years (you can read all of my income reports here). I am able to travel whenever I want, and I really love what I do.

You can start a blog about something you’re passionate about. Whether it’s cooking, travel, or fashion, there’s an audience out there for almost any topic.

To make money from your blog, you can use display ads, sponsored posts, affiliate marketing, or even sell your own products (like courses, ebooks, T-shirts, etc.).

I have free training that you can take to learn more about starting a blog – How To Start A Blog FREE Course. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.

2. Social media management

Social media management is a popular digital marketing side hustle. Businesses need help with their social media accounts and you can earn money by managing these accounts for them.

Social media managers create posts, respond to comments, and grow their followers. This helps companies get more customers and build their brand.

I have been a social media manager in the past, and it is an interesting and fun job if you like social media. I specialized in Facebook marketing, but you could manage a company’s TikTok, Pinterest, Instagram, and more for them.

3. Affiliate marketing

Affiliate marketing is a great way to earn money online. You promote products or services and earn a commission for each sale made through your referral link. This can be done on platforms like blogs, YouTube, or social media.

Affiliate marketing is one of my favorite digital marketing side hustles too! I love that I can write content and possibly earn money from it years later, all because people are still searching and reading the content that I wrote a long time ago. So, this means that I can earn money while I’m sleeping or on vacation.

One of the other best parts about affiliate marketing is that it has a low entry cost. You don’t need to invest in inventory or worry about shipping. You just share products you believe in and can start earning money (the company that you are promoting does most of the work).

Creating quality content is key when it comes to affiliate marketing. I recommend that you always write honest reviews, make tutorials, or share personal experiences. These best practices build trust with your audience and increase the chances they will buy through your links.

Plus, there are affiliate programs for almost every product you can think of nowadays, so this is a digital marketing strategy that you can probably easily start.

If you want to learn more about affiliate marketing, I recommend learning more at Affiliate Marketing Tips For Bloggers – Free eBook.

4. Selling online courses

Selling online courses can be a great way to make extra money. If you have expertise in a subject, you can create a course and sell it online.

Many people are looking to learn new skills and are willing to pay for quality courses. I buy online courses all the time and I have learned so much. (I have bought courses related to running an online business, blogging, personal finance, and even parenting courses such as childbirth and baby sleep.)

Here are some course topic ideas:

  1. Personal finance – Courses on budgeting, investing, or paying off debt can be popular.
  2. Blogging – Teach others how to start a blog, create engaging content, or monetize their platforms.
  3. Online business and entrepreneurship – Share insights on starting an online business, dropshipping, or creating digital products.
  4. Health and wellness – Topics like fitness routines, nutrition planning, or mental health can be so helpful.
  5. Skills and hobbies – You can teach anything from photography, painting, and cooking to coding, graphic design, or language learning.
  6. Career development – Courses on resume writing, job interview strategies, or career coaching can be valuable for those looking to advance in their careers.
  7. Social media marketing – Teach strategies for growing a following, creating content, or using platforms like Instagram, TikTok, or LinkedIn for business.
  8. Parenting and family – Courses on parenting strategies, homeschooling, or managing work-life balance as a parent can be very helpful.
  9. Arts and crafts – You can sell courses on creative writing, drawing, digital art, or playing music.
  10. Travel planning and hacks – Share your expertise on travel planning, finding deals, or traveling on a budget.

Creating a course can take some time, but the payoff can be worth it. You can record video lessons, create quizzes, and provide downloadable resources. Once your course is ready, you can sell it on platforms like Teachable (this is the platform I use for my courses) or your own website.

You can learn more about the course that I created at How I’ve Made Over $1,000,000 From My First Course Without a Big Launch.

5. Creating a YouTube channel

Starting a YouTube channel can be a great way to make money. It’s all about creating videos that people want to watch. You don’t need fancy equipment and many people start with just a cell phone.

The key to success on YouTube is to find a niche you enjoy and create consistent, high-quality content that resonates with viewers.

Making money with your YouTube channel can be done through multiple ways, such as ad revenue, sponsorships, affiliate marketing, and selling your own products or services.

You can learn more at How Much Money Do YouTubers Make?

6. Dropshipping

Dropshipping is a popular way to start a side hustle. This type of business lets you sell products online without needing to have inventory. All you do is set up an online store, and when a customer orders, the supplier ships the product directly to them.

You don’t need a big budget to start dropshipping. Most of the costs go into creating and marketing your online store, so this can make it a low-risk option for beginners.

7. Virtual assistance

Virtual assistance is a flexible and rewarding side hustle. If you’re good at organizing, managing tasks, or providing customer support, you can help businesses stay on track.

Virtual assistants (VAs) do many kinds of work. You might handle emails, manage social media accounts, manage their blog, schedule appointments, and more. You can choose tasks that match your skills.

You don’t need much to get started. A computer and internet connection are enough. Many clients don’t care about formal education as long as you can do the job well.

I was a virtual assistant for several years, and I really enjoyed the job. Now, I currently have a virtual assistant and she is a lifesaver for my business!

You can learn more at How To Find Virtual Assistant Jobs.

8. Selling ebooks

Selling ebooks is a good way to make money online. You can write about anything you know well. Whether it’s cooking, personal finance, fiction, or self-help, there’s an audience for your expertise.

Or, you can also write fiction such as romance novels.

Publishing platforms like Amazon Kindle Direct Publishing (KDP) and Barnes & Noble Press make it easy to self-publish and reach a wide audience. You can also sell your ebook directly from your own website, allowing you to keep a larger portion of the profits.

Promotion is extremely important when it comes to writing a book, so you’ll want to use digital marketing, such as social media, your blog, or even email marketing to reach potential book buyers.

The best part about selling ebooks is that it creates passive income. Once your ebook is published, it can possibly sell with little ongoing effort, making it a great way to earn money over time.

9. Graphic design

Graphic design is a good side hustle for anyone with a creative eye. You can use your skills to create logos, websites, social media graphics, and more. People and businesses always need good design to stand out.

I have hired graphic designers many times in the past, and I know of many other business owners who have as well.

One of the best things about graphic design is that you can start without spending a lot of money. There are free or low-cost design tools, like Canva, that help you make professional-looking graphics without needing expensive software.

Graphic design is needed in many fields, from making social media images and website banners to designing ebooks, infographics, and print materials. This gives you the chance to pick projects that match your interests and skills.

10. Freelance writing

Freelance writing is a great way to make extra money. If you love writing, it’s a perfect fit. You can write about topics you enjoy and get paid for it. Many businesses need content for their blogs, websites, and newsletters.

As a beginner, you might start with lower-paying jobs. This helps you build a portfolio. Over time, you can raise your rates as you gain experience.

There are many types of freelance writing. You can write articles, blog posts, product descriptions, or social media content. You might also do copywriting or ghostwriting.

I have been a freelance writer for years and I really enjoy it due to the flexible schedule and being able to work from home.

You can learn more at 14 Places To Find Freelance Writing Jobs – (Start With No Experience!).

11. Email marketing

Email marketing is a great side hustle. It involves sending emails to a group of people to promote products, services, or events. This may involve running your own email list or helping other businesses reach their customers directly.

You don’t need much to start. Just a computer, internet connection, and starting an email list on a platform like Convertkit.

For my email list, I use Convertkit. They make it easy to manage my newsletter email list and send high-quality emails.

12. SEO consulting

SEO consulting is all about helping websites appear higher in search engines like Google. If a website ranks higher, more people will visit it.

This might involve fixing content, making the site faster, looking for the best keywords (with keyword research), doing competitor analysis, building links from other sites, on-page optimization, and making sure the site works well on mobile devices. You’ll also need to keep up with the latest SEO trends and changes since search engines are always changing.

13. Run Facebook ads for small businesses

By running Facebook ads for local businesses, you can help small businesses reach new customers, and you may be able to earn $1,000 a month for each client that you have.

Facebook is one of the largest advertising spaces that exists, and this is an area that will just continue to grow and be popular.

Also, there is a free webinar (you can sign up here) that will teach you how to start this business, even if you’re new.

14. Influencer marketing

Influencer marketing is when you use social media to promote products or services. There are many social media platforms that you can get started with, such as Instagram, TikTok, YouTube, and Facebook.

You have probably seen people on Instagram or YouTube showing off clothes, their favorite electronics, vacations, or even food. These content creators are getting paid to do that.

You don’t need millions of followers to start. Even with a few thousand engaged followers, brands might pay you to talk about their products.

I have done many influencer marketing partnerships over the years and I think it’s a great gig, especially if you have passion for the topic that you are creating content on.

15. Video editing

Video editing is a great digital marketing side hustle. Lots of businesses need videos to promote their products or services, and you can help them create polished, engaging content.

You don’t need a lot of fancy equipment to start. A decent computer and good editing software will do.

Many video editing projects can be done remotely so this means you can work from home or anywhere with an internet connection.

Video content is everywhere. From YouTube to Instagram, more people want high-quality videos and this means there’s a growing demand for video editors.

Frequently Asked Questions

Below are answers to common questions about digital marketing side hustles.

Is digital marketing a good side hustle?

Yes, digital marketing can be a good side hustle. There are many ways to make money with digital marketing, so there is probably something that may fit what you’re looking for. Plus, many digital marketing side hustles don’t cost a lot of money to begin, so there is little risk to start.

Can I do digital marketing with no experience?

Yes, you can start digital marketing with no experience. Many online resources (such as blog posts) and courses can teach you the basics.

What are some digital marketing side hustles for beginners?

For beginners, some great digital marketing side hustles include blogging, managing social media accounts, and affiliate marketing. You might also try selling online courses or creating a YouTube channel. These are all beginner-friendly options.

What’s the best way to learn digital marketing skills to make money on the side?

The best way to learn digital marketing skills for making extra money is to start with free resources like blogs, YouTube videos, and podcasts that teach the basics. After that, you can take online courses to learn more about specific topics like SEO, content marketing, social media marketing, or email marketing.

How can I turn email marketing into a profitable side job?

To turn email marketing into a profitable side job, start by building an email list. You can share valuable content or discounts to your subscribers. Then, send regular newsletters or promotional emails.

Best Digital Marketing Side Hustles – Summary

I hope you enjoyed this article on the best digital marketing side hustles.

Digital marketing side hustles can be a great way to make extra money from home. Whether you like blogging, managing social media, or affiliate marketing, there’s probably a side hustle that can match your interests.

Many of the digital marketing jobs listed above are flexible and can be done from anywhere, making them really appealing.

There are also lots of resources to help you get started, so even beginners can jump in and start earning. If you want to add to your income or try out a new career, digital marketing side hustles can be a great choice.

What digital marketing side hustles are you interested in?

Recommended reading:

Source: makingsenseofcents.com

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The latest monthly national housing survey from Fannie Mae revealed an interesting contradiction.

Last month, a new survey-high 39% of respondents said they expect mortgage rates to go down over the next 12 months.

At the same time, fewer expect home prices to go up over the same period. And more believe home prices will fall.

So despite a home purchase becoming more affordable thanks to a lower interest rate, consumers don’t think prices will increase.

What does this say about home buyer demand as mortgage rates go down?

But We Were Told Bidding Wars Would Return When Mortgage Rates Fell

Fannie’s monthly Home Purchase Sentiment Index (HPSI) did increase very slightly (0.6 points) to 72.1 in August from a month earlier.

But it remains very low, with most of the 1,000 respondents saying it’s a poor time to buy and also an increasingly bad time to sell.

Just 17% said it was a “good time” to buy a home in August, which has remained relatively flat for several months and remains just above all-time survey lows.

Meanwhile, 83% said it was a “bad time” to buy a home, the highest share since the survey’s inception.

At the same time, only 65% say it’s a good time to sell, while 34% say it’s a bad time. Since August 2021, the “net good time” to sell has fallen from 54% to just 31%.

So it appears no one is happy with the current state of the housing market, which continues to be characterized by a mismatch between buyers and sellers.

Sellers are being told they aren’t realistic in terms of what they’re asking, and buyers are saying it’s too expensive. But nobody is budging.

There’s also a lack of inventory in most markets, so there’s little to choose from and often not what a prospective buyer is looking for.

Taken together, we’ve seen a big drop in home sales, especially once you factor in the ongoing mortgage rate lock-in effect.

It’s also odd to see this sentiment given the narrative we’ve heard for some time that the housing market would turn into a frenzy when mortgage rates fell.

Well, they’ve fallen from around 8% a year ago to just above 6% at last glance. You’d think that would be enough to get the ball rolling.

It’s the Economy (and Maybe High Home Prices Too!)

As I wrote last week, it’s no longer a mortgage rate story. Most consumers are on board the “rates are going lower” bandwagon.

Yet they’re also saying it’s not an ideal time to buy. So then you need to look elsewhere for your answer.

Are home prices just too high, even with mortgage rates nearly 2% below their peak a year ago?

Or is the economy becoming more of a concern, with the Fed dancing with a recession and lots of rate cuts now expected over the next year and change?

Most of the consumers surveyed by Fannie Mae said they weren’t concerned about a job loss (78%), which has drifted down from 82% in 2021 but remains high.

But respondents have been more pessimistic about their household income compared to a year ago, with more saying it’s “significantly lower” than “significantly higher.”

This could also reflect the purchasing power of their dollars, which have eroded thanks to the inflation of just about everything.

So you start to wonder if consumer outlook is worsening as the economy shows signs of slowing, all while unemployment is rising.

This is what matters more than rates. And really explains why mortgage rates and home prices don’t have an inverse relationship.

If mortgage rates are expected to fall due to slowing economic conditions, couldn’t you argue that home price growth might also?

I’ve argued that home prices and rates can fall in tandem for this reason, despite nominal declines being rare.

But it at least bucks the idea of a home buyer frenzy when rates fall. Of course, rates have fallen during the slower time of the year. And they’re still markedly higher than they were as recently as early 2022.

So perhaps we just need rates to continue falling and for the 2025 spring home buying season to come about.

Then we’ll have a better idea of where this housing market goes next.

Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Latest posts by Colin Robertson (see all)

Source: thetruthaboutmortgage.com

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Looking to buy a manufactured home, a boat, or a piece of equipment for your business? You may need a chattel mortgage.

Chattel mortgages are used to finance movable assets separately from the land they occupy. They come with a higher cost than a traditional mortgage, so manufactured home dwellers who qualify for a standard mortgage will save money by choosing that route.

Here’s what you need to know about how chattel loans work and when you might want to look for alternative financing.

What Is a Chattel Mortgage?

First of all, a chattel mortgage is used for personal property, not real property. Real property includes land and property that cannot be easily removed from the land.

When a chattel mortgage is used for a large, movable asset like a manufactured home — called a mobile home before June 15, 1976 — or a piece of equipment (the “chattel”), the asset is held as collateral on the loan. If the borrower defaults on the loan, the lender can recoup costs by selling the asset.

A chattel loan may have a lower interest rate than an unsecured personal loan but a higher rate than a traditional mortgage.

How Does a Chattel Mortgage Work?

Chattel mortgages are used in two main instances: when an asset can be moved or when the land the asset sits on, or will, is leased. (In fewer cases, a chattel loan may be used when a borrower doesn’t want to encumber their owned land with a loan, as when land is owned jointly in a trust.)

Applying for a chattel loan is similar to applying for other types of loans, such as home equity loans and personal loans. The lender will look at your creditworthiness and ability to repay the loan before making a decision.

Chattel loans are typically small, with relatively short terms, but usually require no appraisal, title policy, survey, or doc stamps (the documentary stamp triggers a tax in certain states).

Recommended: First-Time Homebuyer Guide

What Are Chattel Loans Used For?

Here are some of the most common applications for chattel loans.

Manufactured Homes

Manufactured homes are built in a factory on a permanent chassis and can be transported in one or more sections. Formerly known as mobile homes, they’re designed to be used with or without a permanent foundation, but must be elevated and secured to resist flooding, floatation, collapse, or lateral movement.

Many are titled as personal property. Manufactured housing that is titled as personal property or chattel is only eligible for chattel financing.

When a manufactured home is titled as chattel, you’re also going to pay vehicle taxes to the Department of Motor Vehicles instead of property taxes.

Many consumers may encounter a chattel loan at the sales office of a manufactured home builder. They’re convenient with quick closing times, but come with a higher interest rate and a shorter term than most traditional mortgages.

This makes the financing cost of the manufactured home high, even if the payment is low thanks to the lower cost of a manufactured home compared with a site-built home. Around 42% of loans for manufactured homes are chattel loans, according to the Consumer Finance Protection Bureau.

When you own a manufactured home and rent the land it occupies, such as in a mobile home park, you will need a chattel mortgage, except when an FHA Title I loan is used.

Tiny Houses

A chattel mortgage may be used for tiny house financing when the tiny house is not affixed to a permanent foundation and/or when the land is leased.

Tiny houses are usually too small to meet building codes for a residential home, so even if the home is on a foundation and on owned land, a traditional mortgage is almost always out of the question. Even if Fannie Mae or FHA allows the property, the lender won’t.

Tiny houses on foundations are usually classified as accessory dwelling units.

Vehicles

A chattel loan may finance assets that are not permanently affixed to the property, such as vehicles. Dump trucks and construction vehicles may qualify.

Equipment

A chattel loan can be used to purchase large equipment for a business, such as a forklift or a tractor. Even livestock can be purchased with a chattel loan.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

How Much Does a Chattel Mortgage Cost?

Chattel mortgages are more expensive than many other different mortgage types. The Urban Institute concluded that chattel loans were substantially more expensive than non-chattel loans. Owners of manufactured homes would spend thousands more per year in interest compared with a traditional mortgage.

These types of mortgages are not being purchased by Fannie Mae or Freddie Mac on the secondary mortgage market. When a conventional mortgage is purchased by one of these entities, the loan originator obtains more liquidity and can provide more loans to more people. This drives the cost of the mortgage down.

A chattel mortgage, on the other hand, must stay on the books of the lender, making the loan riskier and more expensive.
If you qualify, you might want to consider refinancing your chattel mortgage into a traditional mortgage.

Recommended: Home Loan Help Center

Chattel Mortgage vs Traditional Mortgage

To qualify for a conventional or government-backed mortgage instead of a chattel mortgage, you must own the land your home sits on, the home must be permanently affixed to a foundation, and it must have at least 400 square feet of living space (600 for Fannie Mae’s conventional loan for manufactured homes).

Mobile homes built before June 15, 1976, will not qualify for a mortgage loan. A personal loan is about the only option.

You must also meet all other requirements set forth by the lender to qualify for a traditional mortgage. A mortgage calculator tool can help with this.

For some types of assets, a chattel mortgage may be a good option to consider. Take a look at the major differences.

Chattel Loan Traditional Mortgage
For movable property only Includes the land and all attached structures
May have a lower interest rate than an unsecured personal loan Usually has a lower interest rate than a chattel mortgage
Shorter terms (e.g., 5 years) Longer terms (e.g., 15 years, 30 years)
Lower origination fees Higher loan fees
Shorter close time Longer close time
Lender holds the title, which is only given to the buyer when it is paid off Lender holds a lien on the property, not title

Pros and Cons of a Chattel Mortgage

A chattel mortgage is more expensive than a traditional mortgage, so anyone who can qualify for a traditional mortgage may wish to pursue that option first. It’s not all bad news for chattel mortgages, though, especially for other types of property where a chattel loan is desirable.

Pros Cons
Lender only has a security interest in the movable property, not the land If you default on the loan, the lender can take your asset. Also, the lender owns the asset until the loan is paid off
Taxes may be lower on property titled as “chattel” rather than “real” property Higher-cost loan than a traditional mortgage
Possible faster close and lower loan fees than a standard mortgage Fewer consumer protections. Chattel loans are not covered by the Real Estate Settlement Procedures Act or CARES Act
Lower interest rate than a personal loan Higher interest rate than a traditional mortgage
Pays down more quickly than a traditional mortgage Shorter term may create higher payments
Interest paid is tax deductible Interest paid is also tax deductible with a traditional mortgage

Consumer Protection and Chattel Mortgages

Chattel mortgages on manufactured homes are a special concern to the Consumer Financial Protection Bureau because that type of housing:

•   Serves an important role in low-income housing

•   Is typically taken on by financially vulnerable people

•   Has fewer consumer protections

Manufactured home sellers often have an on-site lender where borrowers can walk away with a chattel loan the same day as the home purchase. In certain scenarios, though, better financing options might be available.

The Takeaway

Buying a manufactured home or a piece of heavy equipment? A chattel loan could be the answer. If, though, you are buying a manufactured home and own the land, a traditional mortgage makes more sense than a chattel mortgage.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Where can I get a chattel loan?

Lenders specializing in chattel or manufactured housing loans will offer this type of loan.

How much does a chattel mortgage cost?

The interest rate of a chattel mortgage could be several percentage points higher than that of a standard mortgage loan.

What happens at the end of a chattel mortgage?

When a chattel mortgage is paid off, the borrower receives legal title to the property or asset borrowed against. It’s also possible for landowners with permanently affixed manufactured homes to refinance into a traditional mortgage to end their chattel loans.

Is a chattel mortgage tax deductible?

A chattel mortgage qualifies for the same tax deductions that a traditional mortgage does. This includes a deduction on mortgage interest paid throughout the tax year.

Photo credit: iStock/MicroStockHub

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.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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.

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.

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.

SOHL-Q324-037

Source: sofi.com

Apache is functioning normally

The Denver Capital One Lounge, located in Denver International Airport, is a great place to visit if you’re looking for complimentary food and drinks on-the-go.

It features a buffet of thoughtfully curated dishes with elevated ingredients (like ground bison sloppy joes). And unlike most lounges, it actually encourages you to take food to-go. Paper bags placed next to the cookies suggest it’s okay to bring some with you on your flight. At the front entrance, there’s a wall of prepackaged food like sandwiches. Employees hand out bags to fill with your to-go treats.

While Capital One lounge access is primarily touted as a complimentary perk for Capital One Venture X Rewards Credit Card and Capital One Venture X Business cardholders, anyone can enter this airport lounge for a fee. And because it’s not actually that exclusive, the lounge can get pretty crowded, so it’s not always as relaxing as perhaps it should be. But if you can get past the crowds, it’s a worthwhile stop.

Denver Capital One lounge location

The lounge is located in Concourse A on the airport’s mezzanine level. It’s open daily from 5 a.m. until 9 p.m.

Spaces to relax and work

(Photo by Sally French)

The lounge spans a single floor on the mezzanine level of the main airport terminal. Most visitors stay in the common areas, which have food, drinks and other amenities.

(Photo by Sally French)

If you want a separate area, you can reserve a private work space or a small conference room. Though they’re free to reserve, expect to join a waitlist — as there are typically more people seeking private workspaces than rooms available. You can ask to join the waitlist at the front desk.

There are also individual phone booths, though they generally get snapped up quickly. Other spaces in the Capital One Lounge include a parents room (typically for nursing) and a relaxation room with a pod-like nap chair.

(Photo by Sally French)

In other open seating areas, there’s bar seating, counter seating, seating at tables and lounge-like seating in plush couches.

Bathrooms

(Photo by Sally French)

Bathrooms are sleek, clean and decked out with wall art. Ambient music plays on the bathroom speaker. The two shower suites are available on a first-come, first-served basis.

The problem? Heavy crowds coupled with not very many bathrooms means there’s usually a line.

(Photo by Sally French)

Plan on visiting the general airport bathrooms before stopping into the Capital One Lounge. For what it’s worth, the Denver International Airport bathrooms are among the best airport bathrooms you’ll find. They’re even scented via an air freshener that smells like a winter forest.

Food and beverage options

(Photo by Sally French)

The food and drinks offered in the Denver Capital One Lounge are among the best you’ll find in any airport lounge, comparable in quality to what’s served in top-tier competitors like the AmEx Centurion Lounges.

Buffets

(Photo by Sally French)

Portions are served on small plates. As is the case with all Capital One airport lounge locations, dishes are curated to the region. In Denver, the star entree is the Colorado ground bison sloppy joe served on a brioche bun.

The sides are just as intriguing, such as the mac and cheese with smoked gouda, cheddar cheese and bacon. There’s also a bacon-free option. Healthier sides include lemon-garlic broccolini, plus an assortment of salads.

(Photo by Sally French)

Mornings feature a hot breakfast menu, with items such as mini Dutch pancakes with blueberry compote and polenta with white cheddar cheese, chorizo and chives.

There’s also no shortage of sweets, which include brownies, cookies (some with unexpected flavor combinations, like the chocolate chip lavender cookies) and honey-pistachio baklava. In the mornings, there’s an array of croissants, muffins and scones.

Bar

(Photo by Sally French)

The Denver Capital One Lounge’s centerpiece is the staffed bar, which takes up most of the main dining area.

Beer comes from local breweries, including Cerveceria Colorado, Upslope Brewing Company and Odell Brewing Company. Capital One partnered with Denver-based bar Yacht Club to develop cocktail recipes, most of which use liquor from Colorado companies. There are also zero-proof options.

(Photo by Sally French)

Almost all the alcohol is complimentary, save for a handful of top-shelf options. Capital One calls it the “Rare Bottle Club.” For an additional $10 to $20, you’ll get a 2-ounce pour of high-end spirits.

Coffee and non-alcoholic options

(Photo by Sally French)

The coffee and tea options are unremarkable, with some standard tea bags and carafes of La Colombe drip coffee, served alongside a variety of milk options. You can also order espresso drinks like lattes or cappuccinos at the bar.

(Photo by Sally French)

While the coffee bar falls a bit flat, the soda bar is an absolute delight. Unlike usual soda fountains of Coca-Cola or Pepsi products, Capital One serves soda flavors like pineapple cream, black cherry with tarragon and lemon berry acai.

Takeout food

(Photo by Sally French)

Perhaps the most notable part of the Capital One airport lounges is the takeout section.

While other airport lounges slap up signs reminding guests that all food must be consumed in the lounge, Capital One actively encourages you to take food to-go.

(Photo by Sally French)

The lounge’s entrance features a wall of prepackaged foods designed to travel. There are sandwiches and wraps, as well as assorted cups filled with things like fruit, pudding and hummus. There are also canned beverages and boxed water.

(Photo by Sally French)

When I was there, employees eagerly handed out bags to fill with to-go food.

(Photo by Sally French)

The Denver Capital One Lounge is often crowded. On both of my recent visits, it was difficult to find a seat. But no matter where you sit, you’ll usually have access to a power outlet.

During one of my visits to the lounge, there was a queue to get inside. But employees were offering travelers the option to simply take a grab-and-go bag, rather than wait to get inside the full lounge, which was a good alternative.

Use the Capital One app to ditch the line

(Photo by Sally French)

If you’re a Capital One Venture X Rewards Credit Card or Capital One Venture X Business cardholder, you can join the waitlist for the Denver Capital One Lounge (and other Capital One lounges) on the Capital One app. Navigate to the Rewards & Benefits tile, and tap the airplane icon.

From there, you can select a specific from the Capital One lounge locations and view the capacity. Then, you’ll receive a text notification when it’s your turn to enter. To minimize waiting time, you might want to join the waitlist before you arrive.

If you don’t have the Venture X and Venture X Business cards, you’ll still have to wait in the physical line.

How to get into the Capital One Lounge

If you hold a Capital One Venture X Rewards Credit Card or Capital One Venture X Business card, you get unlimited, complimentary access to Capital One lounges. You can also bring up to two guests per visit for free. Any guests beyond that incur an $45 per visit, per person charge.

Just know that the Capital One Venture X Rewards Credit Card commands a $395 annual fee, which might not necessarily be worth it to you if you don’t live near an airport with a Capital One lounge.

CREDIT CARDS WITH CAPITAL ONE LOUNGE ACCESS

Capital One Venture X Business

Capital One Venture X Rewards Credit Card

Capital One Venture Rewards Credit Card

Capital One Spark Miles for Business

Annual fee

$0 intro for the first year, then $95.

Capital One lounge access policy

Unlimited access. Includes two guests per visit.

Unlimited access. Includes two guests per visit.

Two visits per year.

Two visits per year.

Learn more

🤓Nerdy Tip

Currently, Capital One Venture Rewards Credit Card and Capital One Spark Miles for Business receive two free passes each year. Additional guests are $45 each. However, starting Jan. 1, 2025, Capital One Venture Rewards Credit Card and Capital One Spark Miles for Business cardholders must pay $45 per visit. Guests will also cost $45 per person.

There are a few other entry requirements that aim to prevent misuse of the lounge. . You must present a boarding pass with a confirmed seat assignment for a departing or connecting same-day flight. You also can’t enter if you’re arriving in Denver and aren’t heading to a connection elsewhere. And you can only enter up to three hours before your flight’s departure time.

But you don’t need to hold a Capital One credit card to gain access to this lounge. Anyone — Capital One customer or not — can pay $90 to enter. For a long layover where you can take advantage of the food and drinks, showers, and private work areas, $90 might be worth it

Other DEN lounges to consider

If you don’t hold a Capital One Venture X Rewards Credit Card or Capital One Venture X Business, then you may want to consider other Denver airport lounges.

As a United hub, Denver Airport hosts multiple United Club lounges, including a compelling grab-and-go lounge called United Club Fly. If you want a day pass to any of United’s clubs, United Club Lounge access is offered for $59, which is less than the cost for the general public to buy a Capital One Lounge day pass.

UNLOCK AIRPORT LOUNGES WITH THE RIGHT CARD

The Platinum Card® from American Express

Citi® / AAdvantage® Executive World Elite Mastercard®

United Club℠ Infinite Card

on Chase’s website

Delta SkyMiles® Reserve American Express Card

Chase Sapphire Reserve®

on Chase’s website

Annual fee

Lounge benefits

Access to more than 1,300 lounges worldwide, including:

• The issuer’s own Centurion Lounges and International American Express lounges.

• Delta Sky Clubs, when flying Delta.

• Priority Pass Select lounges (enrollment required).

• Lounges in the Plaza Premium, Escape and Airspace networks.

Terms apply.

Complimentary Admirals Club membership, plus access to partner lounges with which American Airlines has a reciprocal agreement.

Access to United Club locations and participating Star Alliance affiliated lounges worldwide.

For occasional United travelers, a different card, the United℠ Explorer Card, gives you two one-time passes to the United Club each year. That card has an annual fee of $0 intro for the first year, then $95 . Read our review of that card.

• Access to Delta Sky Club when traveling with Delta, plus two one-time passes each year for guests. (Note that limits on lounge visits are scheduled to take effect in 2025. Read more about that here.)

• Access to American Express Centurion Lounges when flying Delta.

Terms apply.

• Access to Chase’s own Sapphire Lounges, though there are currently only a couple of locations.

Learn more

To view rates and fees of The Platinum Card® from American Express, see this page.

To view rates and fees of the Delta SkyMiles® Reserve American Express Card, see this page.

Is the Capital One Lounge at DEN worth it?

The Denver Capital One Lounge probably isn’t worth the full day pass cost for most travelers. But if you already have complimentary lounge access through your credit card, or if you’re paying for the day pass but planning to make good use of the amenities, it’s well worth visiting.

The food is among the highest quality you’ll find anywhere in the airport. And since Venture X or Venture X Business card members can likely avoid the line by joining the waitlist via the app, then one of the lounge’s biggest pain points — the line to get in — can be avoided.

How to maximize your rewards

Source: nerdwallet.com

Apache is functioning normally

Downsizing, whether it refers to moving to a smaller home, reducing your possessions, or simplifying your lifestyle, can offer a range of benefits. Whether your reason for downsizing is retirement, empty nesters, looking to save money, or finding you just want a more minimalist lifestyle, here is what downsizing can offer you. 

More Money

Larger homes are typically more costly. For one, mortgage rates and energy expenses are usually higher.. However, there’s another reason why larger homes are typically more costly. We are driven to fill them with extra stuff like  additional furnishings and trinkets. 

It’s natural that when we see empty space in our house we want to fill it, but by. reducing the size of your house, you can also reduce the amount of stuff you own and buy.  However, this isn’t the case for all homeowners. Having a smaller home might assist you in avoiding overcharging, overspending, and over-purchasing for your enormous house. There simply isn’t space for extras in a smaller house! 

Environmental Impact 

Reducing the size of your house is a green decision. Generally speaking, smaller dwellings use less energy, which lowers their carbon footprint. A smaller home’s construction and upkeep also typically have less of an impact on the environment. Decluttering and lowering the amount of belongings are also parts of the downsizing process, which over time can result in less material waste and a more fulfilling and environmentally responsible way of life.

Less Upkeep

Taking care of your house for the majority of your life becomes second nature. Because of this, it is simple to forget how much time you spend on your house, from gutter cleaning to grass mowing. You may be surprised by how much time you save in your schedule when you downsize to a smaller, more manageable place.

Additionally, going out of town requires a lot of planning for many people. Who will mow the grass, collect the mail, and ensure your home is secure? Many opt to downsize to a smaller, more manageable area, such as a charming townhouse, a renovated apartment, or a room that may be distinctively yours without being overly cluttered.

Accessibility 

It can get a little more difficult to get around as we age. In the long run, moving from a big, four-story house to a ground-level bungalow may be easier on the knees. Additionally, if you decide to downsize at age 50, be sure to consider what you might require in thirty years. It makes sense to spend money on a bed, bathroom, and laundry area on the main floor.

Clutter Doesn’t Accumulate

When you simply do not have the room for extra things, they can’t come into your home. You will have to think hard about buying new pieces of furniture, excess decor items, and even new clothes since storage will be limited. A minimalist lifestyle isn’t for everyone, but having to declutter your home can be beneficial. 

Downsizing Debt

Although this may not apply to every homeowner, downsizing into a smaller lifestyle can assist in addressing debt or an excessively large budget. A smaller house usually translates into a more affordable monthly payment and increased opportunities for a contented retirement.

Are you looking to enter the real estate market this fall? Give us a call today! One of the experienced agents at Zoocasa will be more than happy to help you through the exciting home-buying process!

Looking for your dream home?

Contact us today to talk to a Realtor in your area

Source: zoocasa.com

Apache is functioning normally

Are you considering moving to Alabama? From the warm Southern hospitality in Birmingham to the affordable living in Huntsville, the state offers much to consider, including unpredictable weather and a slower pace of life. If you’re wondering, “Is Alabama a good place to live?”, this guide will give you a clear picture of what to expect.

Is Alabama a good place to live?

Alabama offers a mix of urban and rural living, with cities like Birmingham providing a hub for arts, dining, and nightlife, while places like Huntsville are known for their booming tech industry and proximity to nature with the Monte Sano State Park. If you’re considering renting in Alabama, you’ll find that cities like Auburn and Tuscaloosa have college-town vibes with affordable apartments and lively student populations. The Gulf Coast, particularly in Mobile and Gulf Shores, provides coastal living with seafood festivals and beach access, though the rental market can be competitive due to tourism. On the flip side, areas in the Black Belt region, such as Selma or Demopolis, might offer lower rents, but they also come with fewer job opportunities and amenities, making it crucial to research the specific area before making a move.

Alabama’s cultural scene is filled with arts, music, and history that reflects the state’s diverse heritage. From lively arts districts and live music venues to significant Civil Rights landmarks, Alabama offers a range of cultural experiences. Local festivals and events, such as Mardi Gras and the Sidewalk Film Festival, bring communities together.  Whether you’re exploring museums or enjoying a local concert, Alabama’s cultural offerings provide a rich and varied experience.

Alabama state overview

Population 5,024,279
Biggest cities in Alabama Huntsville, Birmingham, Montgomery
Average rent in Huntsville $1,155
Average rent in Birmingham $1,509
Average rent in Montgomery $899

1. Pro: You’ll find affordable housing in the state

Alabama is known for its low cost of living, and housing is one of the biggest contributors to that affordability. Whether you’re looking to buy or rent, you’ll find that prices are significantly lower than the national average. For instance, in cities like Tuscaloosa, you’ll find the average rent to be $1,109 for a one-bedroom apartment whereas cities like Decatur have rent as low as $825. This affordability is one of the reasons why Alabama is a good place to live.

2. Con: Tornadoes can be frequent in the spring

Alabama is part of Dixie Alley, a region known for its high frequency of tornadoes, especially during the spring months. Tornado season can bring severe storms, and residents must be prepared with emergency plans and access to storm shelters. Cities like Birmingham and Tuscaloosa have experienced significant tornado events, and the unpredictable nature of these storms can be unsettling. While tornadoes are a serious concern, Alabama’s emergency response systems are well-developed, and many communities are equipped with sirens and alert systems to provide warnings.

Insider scoop: Many long-time residents keep a “go bag” ready during tornado season, stocked with essentials like batteries, a flashlight, and a weather radio, and some even have personal storm shelters installed on their property for added peace of mind.

3. Pro: Alabama has a strong university spirit

Alabama is home to several major universities, most notably the University of Alabama and Auburn University, both of which have deeply ingrained sports cultures. The rivalry between these two schools, particularly in football, is a central part of life in the state, with game days bringing entire towns to a standstill. Tailgating is a beloved tradition, with fans gathering hours before the game to enjoy food, drinks, and mingling. The university spirit extends beyond sports, influencing local businesses, communities, and even state pride, making it a great aspect of living in Alabama.

4. Con: The summers are brutal here

Summers in Alabama are known for their intense heat and humidity, often reaching temperatures in the high 90 degrees Fahrenheit with humidity levels to match. The oppressive heat can make outdoor activities challenging, especially in July and August, when even the evenings offer little relief. Air conditioning becomes a necessity, not a luxury, and residents often seek out indoor activities or water-related recreation to cope. The combination of heat and humidity also means that working outside or exercising requires careful planning to avoid heat-related illnesses.

Insider scoop: Savvy locals know to take advantage of the state’s many natural springs, like Blue Springs in Barbour County, which offer a refreshing escape from the heat with their consistently cool waters

5. Pro: The winters are pretty mild

Alabama’s winters are relatively mild, especially compared to the harsher climates of the northern U.S., making it a good place to live for those who dislike cold weather. Snowfall is rare, and when it does occur, it’s usually light and melts quickly. Temperatures during the winter months typically range from the mid-30s to the mid-50s, allowing residents to enjoy outdoor activities year-round. 

6. Con: You’ll need a car to get around the state

Public transportation options in Alabama are limited, especially outside of the major cities, making car ownership a necessity for most residents. In rural areas, the lack of public transit and the spread-out nature of communities mean that even basic errands require driving. Traffic can be an issue in urban centers like Birmingham, where commuting by car is the norm. The state’s car-dependent culture also means that maintenance and fuel costs are a regular part of the budget, and having a reliable vehicle is essential.

7. Pro: Proximity to some great beaches

Alabama has great access to some of the most beautiful beaches in the Gulf Coast region, particularly in areas like Gulf Shores and Orange Beach. These beaches are known for their white sand and clear waters, making them popular destinations. The proximity to the coast means that weekend beach trips are a regular possibility, offering a quick escape from the hustle and bustle of daily life. In addition to the natural beauty, the coastal areas also have a variety of seafood restaurants, entertainment options, and outdoor activities, enhancing the beach experience.

Insider scoop: Locals know that if you visit the beaches during the off-season, especially in late September and October, you’ll enjoy fewer crowds, still-warm waters, and some of the best seafood deals at local restaurants, making for a more relaxed and affordable beach experience.

8. Con: Insects can be a nuisance here

The warm, humid climate of Alabama creates an ideal environment for a variety of insects, including mosquitoes, ticks, and cockroaches. Mosquitoes are particularly bothersome during the summer months, making outdoor activities less enjoyable without proper precautions like insect repellent. Ticks are another concern, especially in wooded or grassy areas, where they can pose health risks.

Insider scoop: Many locals swear by planting citronella and lavender around their homes to naturally repel mosquitoes, and for ticks, it’s common practice to keep a lint roller handy after spending time outdoors to quickly remove any that might have hitched a ride.

9. Pro: Enjoy one of the many unique festivals

Alabama is home to various festivals that reflect its diverse culture and traditions, providing something for everyone. The Mobile Mardi Gras, the oldest in the country, is a vibrant celebration featuring parades, costumes, and parties. The National Peanut Festival in Dothan highlights the state’s agricultural heritage, while the Hangout Music Festival in Gulf Shores attracts top musical acts from around the country. These festivals provide not only entertainment but also create a sense of community, adding to the reasons why Alabama is a good place to live.

10. Con: Rural isolation can be a thing

While Alabama offers plenty of small-town charm, rural areas can feel isolated, with limited access to amenities, healthcare, and entertainment. In more remote parts of the state, residents may need to drive significant distances to reach grocery stores, hospitals, or schools. Social opportunities can also be limited, especially for younger people or those new to the area, making it challenging to build a social network. The isolation can be a downside for those who prefer the convenience and activity of urban living, though it’s a trade-off for the peace and quiet of rural life.

Pros and cons of living in Alabama: Overview

Pros Cons
Affordable housing Tornado risks in the spring
Full of university spirit Summers are hot and humid
The winters are mild Heavy reliance on cars
Close proximity to beaches There are a lot of insects
Unique festivals Rural isolation throughout the state 

Source: rent.com