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In the U.S., apartments are getting smaller and smaller, meaning you might need to downsize your new home. On average, studio rentals are about 530 square feet. Efficiency apartments sit on the smaller side of this spectrum.

Shrinking apartments are likely the result of rising costs per square foot for rentals, but we’re learning to adjust. Many now look for smaller apartments on purpose, ready to give up having a separate bedroom for the benefits of living a little smaller.

While many begin their petite apartment hunt looking for a studio, it’s best to not discount an efficiency apartment. Efficiencies are like studios, but not exactly the same. However, they may be the perfect choice for your budget. Here’s what you need to know about renting an efficiency.

What is an efficiency apartment?

An efficiency apartment consists of only two separate spaces. Efficiencies combine all your traditional living spaces, except for the bathroom, into one room. Your bedroom, living room and kitchen won’t have built-in partitions.

The only doors in an efficiency apartment are the one leading into your bathroom and the one going out of the unit completely. There are many benefits of an efficiency apartment:

Tiny but mighty

Yes, they’re small and compact, but they don’t have to lack luxury. For too long, people associated small apartment size with a living space that felt cheap or poorly maintained. Actually, efficiency apartments vary in quality like any other apartment size.

It’s more about how much you pay in rent that determines how nice a place is, not the number of square feet. In some cases, you can even get more amenities by renting an efficiency in a nicer building instead of a larger apartment somewhere else.

Easy to clean

Another perk of the size of an efficiency is how easy it is to clean. With minimal square footage and only one bathroom, you can have your apartment sparkling in no time. A pack of disinfectant wipes and a broom may even be enough to do the trick, allowing you to keep valuable storage space open for things other than cleaning supplies.

Budget-friendly

Efficiency apartments are also your most budget-friendly option, in more ways than one. They’ll cost you less, on average, in rent than any other sized apartment, but that’s not all.

Having a smaller apartment means lower utility bills. You’ll have fewer rooms to light, heat and cool. Living alone means you’ll use less water, too. On average, the price of utilities in an efficiency is between $100-$150 per month. You could pay that much heating a one-bedroom apartment in the dead of winter alone, not to mention the cost of your other utilities.

Living in an efficiency apartment can allow you to cut a little bit from all your monthly bills. This can add up to some significant savings over the course of a year.

Going solo

Because of the size and layout of an efficiency apartment, you’ll most likely be living alone. There’s really no way to accommodate a roommate. You could share with a significant other, but understand that you’ll have no personal space.

Efficiencies might even feel too cramped to share with a pet. When looking for an efficiency, it’s best to fly solo.

What do efficiency apartments look like?

While the specifics will vary, efficiency apartments look like one big room and a bathroom. The kitchen is often along a wall, galley-style to stay out of the way. You may or may not get a closet, but it’s up to you to create natural divisions in the space with your interior design.

Source: Rent./Post Centennial Park

Living with a kitchenette

In addition to cramming everything but the bathroom into a single room, you may lose a little when it comes to your kitchen. Efficiency apartments may have a kitchenette, instead. By definition, this is a smaller version of a kitchen.

You may not get a full-sized fridge, and don’t expect a dishwasher. With limited space, you can lose a few appliances common in bigger apartments. However, hand-washing dishes for one isn’t a big job, and portable dishwashers do exist.

What’s the difference between a studio and an efficiency?

There’s really not a square footage difference between a studio and an efficiency apartment. It’s all about the layout when differentiating. You’ll know right when you walk into a prospective apartment whether it’s a studio or not.

“Whether you prefer to call it a studio or efficiency apartment,” writes Devon Thorsby from U.S. News & World Report, “stay focused on the specifics of the space as you shop for apartments to ensure your definition of the word matches up with the leasing agent’s.”

Even if your definitions don’t agree, if you find everything but the bathroom in a single room, you’re in an efficiency. Studios have more separation. You might not have doors on everything, but you’ll see a natural division in spaces. Your kitchen won’t be in your living room. You may even have a nook to serve as a bedroom.

Where can I find an efficiency apartment?

You’ll find efficiencies primarily in cities where apartments tend to be smaller. New York and San Francisco are prime examples, but availability isn’t limited to those densely populated spots.

If you value location over size, an efficiency apartment in your ideal part of town is a worthy tradeoff. Why move into a large apartment in an outlying neighborhood if you don’t have to? You can spare yourself a long commute, and the sense of feeling distanced from where all the action is, by cutting back on your square footage requirements.

Efficiency listings should pop up in apartment buildings all over, whether you’re looking downtown or in the suburbs. Look for newer construction if you’re having trouble finding units for rent.

Find efficiency apartments today!

Apartment complexes everywhere are acknowledging the benefits of efficiency apartments. Not only are they smaller so more fit into a single building, but they’re attractive to renters looking for affordable options. See if there are any available units where you live.

Lesly Gregory has over 15 years of marketing experience, ranging from community management to blogging to creating marketing collateral for a variety of industries. A graduate of Boston University, Lesly holds a B.S. in Journalism. She currently lives in Atlanta with her husband, two young children, three cats and assorted fish.

Source: rent.com

Apache is functioning normally

Inside: Do you want to claim your partner as a dependent on your taxes? This guide will explain the rules of claiming dependents whether girlfriend or boyfriend and help you take the necessary steps to do so.

Navigating the waters of tax credits can be tricky, especially when it involves claiming an unmarried partner as a dependent.

The Internal Revenue Service (IRS) does permit the declaration of a non-relative adult as a dependent, provided certain conditions are met.

And that is where it gets tricky for the tax novice.

That is where we are going to reference the IRS guidance, so you can determine whether or not you qualify for this deduction.

By pointing you in the right direction, you can understand the specific tests and requirements to avoid any tax-related complications.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

Understanding dependency in the context of taxes

The word “dependent” might remind you of a newborn baby or an elderly family member. But in tax terms, the meaning broadens.

In the IRS terms, a “dependent is a person, other than the taxpayer or spouse, who entitles the taxpayer to claim a dependency exemption.” 1

This might be a child, an adult family member, a significant other, or even a close friend. This term “qualifying relative” is crucial in IRS parlance for its implications on your tax dues.

Typically, any person can qualify as a dependent if more than half of their financial support, including living and medical expenses, is taken care of. Also, it’s an opportunity to boost one’s tax return by up to $500 with the Other Dependent Tax Credit.

What qualifies a person as a dependent?

The IRS bases dependents on two categories: “Qualifying children” and “Qualifying relatives.”2 You might think of a qualifying child as your son or daughter. Expanding the scope, a qualifying relative can be a sibling, a parent, or even a significant other.

The essence lies in their financial reliance on you and the nature of your relationship. They ought to:

  1. Be related to you via blood, marriage, or adoption;
  2. You provide over 50% of their financial support including housing, food, medical care, and other expenses
  3. They are U.S. citizen.
  4. The income of the possible dependent.

These nuanced rules might sound overwhelming, but IRS guidance and tax experts like TurboTax can help lighten the load.

Now, let’s address this sticking point: Can you actually claim your partner as a dependent? The following section unravels the mystique.

TurboTax

TurboTax® is the #1 best-selling tax preparation software to file taxes online. Easily file federal and state income tax returns with 100% accuracy.

This is how I have filed my personal taxes for many years.

Get Started

Can I Claim My Partner as a Dependent?

You can claim your partner as a dependent on your tax return, provided they meet certain criteria explained by the IRS, including passing the non-qualifying child test, the citizen or resident test, the joint return test, the income test, and the dependent taxpayer test.

I know this is where it gets difficult to follow for the average person.

So, we are here, to break this terminology down into layman’s terms, as such you can then make the best decision for your tax situation.

If you are still confused, then consult with an online tax software like TurboTax or a tax professional for guidance on your personal taxes.

Basic requirements for claiming your partner as a dependent

This essentially means that your partner should be financially dependent on you, where you bear more than half of their living expenses.

In essence, claiming your partner as a dependent revolves around these fundamentals: 2

  1. Residency: Your partner must have been living with you for the full tax year.
  2. Income limit: Your partner’s gross income should not exceed $4,700 for the year 2023.
  3. Support Requirement: You are the main pillar for your partner’s financial needs by covering over half of their total expenses.
  4. Anyone Else Claiming Them: None else should claim your partner as their dependent.
  5. Unmarried. Your partner must be unmarried legally.

All fulfillment of these criteria moves you a step closer to enjoying some tax relief.

Confirm with an accountant or tax expert as exceptions can exist, such as temporary absences due to illness, education, business, and others.

Common scenarios where you can claim your partner as a dependent

Claiming a partner as a dependent isn’t as fancy as it sounds, but it’s plausible. Here are common scenarios enabling you to do so:

  1. Co-habiting Before Marriage: You and your partner share a home, and you pay more than half of your partner’s living costs. However, your living situation cannot violate local laws, as in some states, “cohabitation” by unmarried people is against the law.
  2. Unemployed Partner: Your partner’s tie with working life is severed (e.g., due to health issues or being laid off), and you bear most of the living expenses.
  3. Supporting Student Partner: Your partner pursues their education, and you shoulder the majority of their expenses.

Take this interactive IRS quiz to determine whom I may claim as a dependent.

How much will I get if I claim my girlfriend as a dependent?

Now the pivotal question: what’s the advantage in dollars and cents?

In essence, claiming your partner as a dependent will slash your taxable income by $500 with the Other Dependent Tax Credit. 3

If you already qualify for Head of Household status with another dependent, then it is possible your deduction may be more. 4

Remember, there’s no one-size-fits-all answer. When tax complexities strike, consult an expert!

Is it better to claim my girlfriend as a dependent?

Honestly, like most tax questions, the answer is: it depends.

If you’re covering your partner’s majority expenses and they’re fulfilling all IRS criteria, then claiming them can bring solid tax savings.

Yet, bear in mind:

  1. If your partner earns substantial income (greater than $4,700), they might lose personal benefits by becoming your dependent.
  2. By claiming your partner, their Social Security or medical benefits may take a hit.

So, assess your partner’s income, benefit entitlements, and your tax situation. Then, tread wisely.

e-file

E-file makes tax season a breeze with its user-friendly interface, ensuring a seamless and stress-free experience for filers.

Simplify your tax journey by choosing E-file.

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Important Rules to Keep in Mind When Claiming Your Partner

When filing taxes, it’s crucial to understand that both parties are responsible for the accuracy of each other’s tax reporting and liability.

It’s worth noting that tax advantages and disadvantages exist in the scenario of being married and filing jointly, such as potential reductions in your tax bracket and sharing of business losses. So, it may be something to consider.

Can I claim my girlfriend as a dependent if she has no income?

In a nutshell, yes! If your girlfriend had no income in the tax year, you might claim her as a dependent. Given you provide over half of her total support and she lived with you all year, you’re golden.

For 2023, your partner’s gross income should not exceed $4,700.

However, keep in mind that in cases where public assistance or Social Security benefits are her primary financial sources, claiming her could negatively impact those benefits.

Learn the answer to do you have to file taxes if you have no income.

Remember: tax waters are often murky. When in doubt, lean on a tax professional’s shoulder!

Support factors

Answering the support question plays a hefty role in determining who qualifies as a dependent.

You shouldn’t just share the living cost; you should pay more than half of it. Remember, it includes an array of expenses, like food, clothing, education, or medical expenses.

The implication of your partner being claimed by someone else

Here’s a key rule: if someone else is claiming your partner as a dependent, you’re out of the game. The IRS rules say a person can be claimed as a dependent by only one taxpayer in a single tax year.

  • This could happen if your partner perhaps lives part of the year with someone else like a parent.
  • Another possibility is if your partner is legally married still, then they would have to file a married, filing separately return.

So, if your partner qualifies as someone else’s dependent, even if they don’t claim them, you can’t claim your partner.

Frequent Situations Where You Can’t Claim Your Partner as a Dependent

Considerations for Non-resident or Non-citizen partners

If your partner isn’t a U.S. citizen, resident, or national, the dependent claiming game changes. Notably, nonresident aliens cannot be claimed as dependents.

However, if your partner is a resident of Canada or Mexico or a U.S. national, you may claim them. But they should be living with you full-time. 2

This rule extends to partners awaiting changes in their residency or citizenship status. In such cases, you must wait until their status changes before claiming them.

When your partner earns more than the stipulated income threshold

When your partner’s income level sails past the IRS limit ($4,700 in 2023), claiming them as a dependent slips off the table. 2

Any part-time job, seasonal work, or income source counts, even those seemingly negligible. As soon as they cross this threshold, regardless of how heavily they rely on you or where they reside, they can’t qualify as your dependent.

Make sure to stay updated on IRS rules. They adjust the income limit for inflation annually, which changes this income ceiling. Keep an eye peeled for those IRS updates!

TurboTax

TurboTax® is the #1 best-selling tax preparation software to file taxes online. Easily file federal and state income tax returns with 100% accuracy.

This is how I have filed my personal taxes for many years.

Get Started

How to Officially Claim Your Partner on Your Taxes

To officially claim your partner as a dependent on your tax return, you will do this when you file your taxes.

Thankfully, this is made easier with online software companies like TurboTax or H&R Block.

The same is true when you are trying to figure out how to file taxes without a W2.

Necessary steps to claim your partner on your taxes

You will first identify them as “other qualifying dependent” or “other qualifying relative”.

  1. Gather the facts first: Confirm your partner’s income, residency, and who has been supporting them for more than half the year.
  2. Document expenses: Keep track of all relevant bills and receipts to demonstrate your majority support.
  3. Use tax software or a professional: Follow prompts about dependents in tax software like TurboTax. They could guide you through the process and specifics.
  4. Complete relevant Tax Forms: Prepare the necessary forms such as Form 1040 and Schedule H and have proof of residency, financial support, gross income information, and certification of your domestic partnership to support your claim.
  5. File your return: Don’t forget to include your partner’s details and tick the correct boxes.

Remember, the devil is in the details. So carefully evaluate your situation to avoid missteps, and consult with a tax professional when in doubt.

Pitfalls to avoid while filing tax returns

While preparing to file your tax returns, beware of these common pitfalls:

  1. Incorrect income calculation: Ensure you tally your partner’s gross income accurately. Reminder: it should not eclipse $4,700 in 2023.
  2. Overlooked Living Qualification: Your partner must have resided with you the entire year. Temporary absences (illness, education) can be exceptions.
  3. Ignoring Other Claimants: If someone else is poised to claim your partner as a dependent – even if they don’t – you can’t claim them.
  4. Emergency Funds Consideration: If your partner taps into their savings for a large expense, this could speak against you providing most of their support.
  5. Forgotten Documents: Maintain a record of bills, receipts, and other expense documents.

The IRS overlooks no mistakes, so take care and stay informed. When in doubt, professional tax help is a button away.

Frequently Asked Questions (FAQ)

Intriguing question! Here’s the short answer: Your partner’s marital status may indeed affect your ability to claim them as a dependent.

For instance, if your partner is married and files a joint tax return with their spouse, you can’t claim them as a dependent.

Remember, tax rules are lock-key specific, and bending them can lead to penalties. Always seek advice from a tax professional.

While you might be able to claim your partner as a dependent, laying claim on their children as dependents is unlikely. IRS rules are clear: you can claim a dependent only if they’re your child or relative.

Since your partner’s children don’t fulfill this requirement, you can’t claim them unless they can be considered your qualifying relative AND you provide more than half of their support.

As always, it’s best to run this by a tax professional for clarity on your unique situation. All we tax-seers can do is guide; the decision falls on your shoulders.

Here’s the hard truth: if your partner didn’t live with you all year, you couldn’t claim them as a dependent. IRS rules are stringent about this: your partner must have the same home as you for the entire year. That is 365 days, no less.

However, IRS grants a green light to temporary separations due to special circumstances like illness, education, military service, or even a holiday. The key lies in their intent to return and, of course, their follow-through.

Stay wise and stay informed, and consult with a tax analyst to seal your decision with assurance.

Get Online Help

Navigating tax rules and regulations doesn’t need to be overwhelming. With the advent of online help, understanding whether you can claim your partner as a dependent becomes considerably more manageable. Here are a few benefits of seeking online help:

  • Convenience: With online help, you can access the information you need anywhere, anytime. No need to schedule appointments or deal with traffic to get to a tax office. You can get the updates and instructions right from the comfort of your own home.
  • Accessibility: Some great examples of accessible platforms are TurboTax, e-File, and H&R Block which provide 24/7 support and resources. They offer a wealth of information and experts at your fingertips.
  • Expertise: Apart from the convenience, these websites employ tax experts who deliver professional analysis and guidance tailored to your specific needs. Specifically, you can use TurboTax Live Full Service for someone to do your taxes from start to finish. Or you can ask questions with TurboTax Live Assisted.

File your own taxes with confidence using TurboTax. This can greatly simplify the process and minimize potential missteps.

Now, Can I Claim my Unmarried Partner as a Dependent is Up to You

As they say, “Ignorance of the law is no excuse”. The same holds true for tax rules.

Falsely claiming a dependent can lead to severe penalties, not just a dinging of your wallet. You’d be sailing the choppy waters of tax evasion, which can bring on hefty fines or even dark days behind bars.

In blatant cases, the IRS could impose a Civil Fraud Penalty. That means a penalty amounting to 75% of the unpaid tax amount resulting from fraud. 5

In short, play by the rules! Accurate and clear tax filing may seem tedious, yet it will steer clear of any legal trouble. Remember, it’s always safer to ask if you are unsure!

Now, are you wondering why do I owe taxes this year?

Source

  1. Internal Revenue Service. “Tax Tutorial.” https://apps.irs.gov/app/understandingTaxes/hows/tax_tutorials/mod04/tt_mod04_glossary.jsp?backPage=tt_mod04_01.jsp#dependent. Accessed October 23, 2023.
  2. Internal Revenue Service. “About Publication 501, Dependents, Standard Deduction, and Filing Information.” https://www.irs.gov/forms-pubs/about-publication-501. Accessed October 23, 2023.
  3. Internal Revenue Service. “About Publication 501, Dependents, Standard DeductionUnderstanding the Credit for Other Dependents.” https://www.irs.gov/newsroom/understanding-the-credit-for-other-dependents. Accessed October 23, 2023.
  4. Intuit TurboTax. “Guide to Filing Taxes as Head of Household.” https://turbotax.intuit.com/tax-tips/family/guide-to-filing-taxes-as-head-of-household/L4Nx6DYu9. Accessed October 23, 2023.
  5.  Internal Revenue Service. “25.1.6 Civil Fraud.” https://www.irs.gov/irm/part25/irm_25-001-006. Accessed October 23, 2023.

Know someone else that needs this, too? Then, please share!!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

Fresh on the Hamptons market is this timeless luxury estate listed for a not-so-humble $7.75 million.

With classic charm, contemporary amenities, and private access to Southampton’s exclusive Cooper Beach, the lucky new homeowner will go from always dreaming to actually living out the ultimate coastal lifestyle. 

Whoever snatches the lavish property in this star-studded Southampton community will not only boast a beautiful home but a lengthy roster of elite neighbors, including Beyoncé and Jay-Z, Jennifer Lopez, Gwenyth Paltrow, Ralph Lauren, and Bon Jovi.

The affluent community regularly attracts A-listers thanks to its exclusivity among lush landscaping and world-class beaches — a welcome break from the bustle of nearby New York City.  

But the Hamptons house’s current owner has his own claim to fame.

Photo courtesy of The Agency

The estate’s current owner, Anthony Bonomo, co-owned the 143rd Kentucky Derby’s award-winning horse, “Always Dreaming”, back in 2017 along with his longtime pal Vincent Viola.

The two grew up together in 1960s Brooklyn, ‘always dreaming’ of one day winning the highest-attended Thoroughbred stakes race in North America. The ambitious pair finally achieved their equine dreams thanks to their champion colt, who also won 1st place in the Florida Derby that same year. 

Related: 17 Celebrities with Swanky Summer Homes in the Hamptons

Now, Bonomo’s Hamptons house is up for grabs for equestrian enthusiasts and beach lovers alike.

Bonomo first purchased the 23 Heady Creek Lane home back in 2014 for just $4.4 million, still high but paling in comparison to its current price tag. But one look at the stately property and you’ll quickly realize its worth.

Photo courtesy of The Agency
Photo courtesy of The Agency

Featuring quintessential Hamptons charm adorned with all the modern luxury updates you could ask for, it merits as much recognition as its current owner’s all-star racehorse. 

Pass through a posh cobblestone driveway and you’ll be greeted by a traditional stately Southampton pad, complete with 6 bedrooms and 8 bathrooms on a sprawling half-acre of land.

Inside, an imposing great room featuring high vaulted ceilings with crown molding, an opulent chandelier, and elegant hardwood floors hint at the opulence featured throughout the rest of the house. 

The living area beckons with a spacious floor plan that extends to the luxurious chef’s kitchen boasting a marble-glossed island and cutting-edge appliances.

Photo courtesy of The Agency
Photo courtesy of The Agency
Photo courtesy of The Agency
Photo courtesy of The Agency
Photo courtesy of The Agency

The Southampton house’s bedrooms each have their distinct ‘personality’, some boasting charming moody decor.

Photo courtesy of The Agency
Photo courtesy of The Agency
Photo courtesy of The Agency

Descending to the lower level, you’ll find dual entertainment spaces, a full bed and bath ideal for overnight guests, a walk-in wine cellar, and a home gym. 

The home flawlessly mixes timeless style, like cozy statement fireplaces, with state-of-the-art additions like a Sonos sound system across the property. 

Photo courtesy of The Agency

Inviting indoor-outdoor-style glass doors seamlessly flow into the expansive backyard, which features a covered lounge area, barbecue pit, and heated pool with a waterfall spa- all perfect for throwing a memorable 4th of July bash. 

A separate pool house with its own kitchen and bathroom offers added convenience and comfort while lounging outdoors. 

Photo courtesy of The Agency
Photo courtesy of The Agency

Kieran Rodgers, Nicholas Campasano, and Ricardo Pena of The Agency RE serve as listing agents for the $7.75 million Hamptons home.

More stories

This Floating Farmhouse in the Catskills dates back to the 1820s, but you could never tell

One of Robert Downey Jr’s houses is a former windmill in the Hamptons

‘Only Murders In The Building’: Is the Arconia a real building in NY?

Source: fancypantshomes.com

Apache is functioning normally

Today we’ll check out another home builder’s in-house mortgage lender, this time KB Home’s “KBHS Home Loans.”

As the name suggests, they are the affiliated lender for home builder KB Home, a SoCal-based company that has been around since the 1950s.

KB Home has a big home building presence in its home state, along with nearby Arizona and Nevada, Texas, and Florida.

To facilitate the sale of their homes, they lean on KBHS Home Loans to streamline the financing process.

What’s perhaps more interesting is that they are backed by another lender, Guaranteed Rate, which is a top-10 lender nationally.

KBHS Home Loans Fast Facts

  • In-house mortgage lender for parent company KB Homes
  • Founded in 1957, headquartered in Los Angeles, CA
  • Parent company is publicly traded (NYSE: KBH)
  • Licensed to lend in 10 states nationwide
  • Funded nearly $3.5 billion in home loans last year
  • Most active in California, Florida, and Texas
  • Also have an affiliated insurance agency and title company

KBHS Home Loans is the in-house mortgage lender for parent company KB Homes.

They primarily offer home purchase loans to the buyers of their newly-built homes located throughout the country.

The Southern California based home builder has been around since 1957, having previously been named after founders Eli Broad and Donald Kaufman as the “Kaufman and Broad Building Company.”

One of their claims to fame is the creation of the “Townehouse” design, intended to woo consumers who would typically rent instead of buy a home.

The company later changed its name to KB Home in 2001 and today refers to itself as the “#1 customer-ranked national homebuilder.”

That’s based on TrustBuilder ratings and reviews that are powered by NewHomeSource, a site that apparently lists honest reviews from real homeowners.

Anyway, KB Home established its own mortgage company back in 1965, and that eventually morphed into what is now KBHS Home Loans.

Interestingly, KBHS Home Loans was formed in 2016 as a joint venture between KB Home and Stearns Lending.

Stearns Lending was acquired by Guaranteed Rate in early 2021.

This explains the disclaimer on their website that says all loan programs subject to Guaranteed Rate, Inc. underwriting guidelines.

They are licensed in 10 states nationwide, including Arizona, California, Colorado, Florida, Idaho, North Carolina, Nevada, South Carolina, Texas, and Washington.

Last year, the company funded a solid $3.5 billion in home loans, with a good chunk of it coming from their home state of California.

They were also quite active in Arizona, Colorado, Florida, Nevada, and Texas, where they have home building operations.

KBHS Home Loans prides itself on being a fully-integrated, dedicated mortgage lender for KB Home, with daily collaboration to ensure things keep moving along on schedule.

Like other home builders, they also have an affiliated insurance company, KB Home Insurance Agency, and title insurance business, KB Home Title Services.

How to Apply with KBHS Home Loans

To get started, you can either visit a new home community or surf on over to the KBHS Home Loans website.

If you do the latter, they have an online loan officer directory and a contact form if you prefer for someone to reach out directly.

There is also a learning center with a mortgage glossary, free mortgage calculator, informative videos and articles, and a FAQ section.

When you’re ready to apply, you can do so electronically via their digital loan application from a computer, tablet, or smartphone.

It allows you to complete the process mostly paperlessly, with the ability to link financial accounts (bank, employer, etc.) and securely upload documentation.

Once your loan is submitted, you’ll be able to log in to the borrower portal 24/7 to check loan status, satisfy outstanding conditions, or get in touch with your lending team.

KBHS Home Loans loan officers also have the ability to screen share in real-time if you need extra help you complete any step of the mortgage process.

When it comes time to fund, their so-called FlashClose process allows borrowers to sign most of their closing documents electronically.

This means you can digitally review and share documents in advance with your attorney or settlement agent and spend less time at the closing table.

Loan Programs Offered by KBHS

  • Home purchase loans
  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Fixed-rate mortgages: 30-year fixed, 15-year fixed
  • Adjustable-rate mortgages: 5/1 ARM, 7/1 ARM

KBHS Home Loans offers all the usual products you expect to see from a mortgage lender, though they primarily focus on home purchase loans.

This includes conforming loans, jumbo loans, and the full suite of government-backed loans including FHA loans, VA loans, and USDA loans.

One thing that stands out with KBHS Home Loans is their adjustable-rate mortgage offerings.

They advertise ARMs more than other lenders and seem to have more options in this department.

So if you think mortgage rates will come back soon within the next 5-7 years, a hybrid ARM such as the 5/6 ARM or 7/6 ARM could be a good bridge.

Of course, they also offer fixed-rate mortgages as well, including the 30-year fixed and 15-year fixed.

And it might be possible to take advantage of a big rate buydown to keep your monthly payments down.

Many home builders have been offering big incentives lately as mortgage rates inch closer to 8%.

Those who use the builder’s lender may be entitled to special offers that likely won’t be found elsewhere.

KBHS Mortgage Rates and Lender Fees

I couldn’t find any information on their website regarding mortgage rates or lender fees. But they did have a special rate offering on the KB Home website.

It was a 7/6 ARM priced about two percentage points below the going rate for a 30-year fixed. So for those willing to go with an ARM, it presents a pretty big discount.

And it’s fixed for the first 84 months, giving the home buyer some breathing room before they need to consider a refinance, home sale, etc.

Typically, home builders offer mortgage rate buydowns, such as a 2-1 buydown, but perhaps those are becoming too expensive and there’s a shift to ARMs happening.

It’s unclear what their fixed mortgage rates are like so you’ll need to inquire about pricing when you speak to a loan officer.

As always, take the time to shop around with other non-affiliated banks, lenders, credit unions, and mortgage brokers.

It’s good to see what’s out there and gain some bargaining power in the process. You never want to look like you don’t have other options

KBHS Home Loans Reviews

KBHS Home Loans has a 4.9/5-star rating from over 3,000 Google reviews, which is impressive on both the review count and the score.

There are a lot of shining reviews from new home buyers, but also some poor reviews as well. You can filter by highest and lowest rating to see what other’s experiences were.

Their parent company, the home builder, has a 4.5/5 on NewHomeSource from nearly 9,000 customer reviews.

Over at the Better Business Bureau (BBB) website, they have an ‘A+’ rating based on complaint history, but a 1.08/5 rating based on the 84 customer reviews there.

They also have over 300 complaints over the past three years, including more than 170 over the past 12 months.

This is one of the challenges of running a home builder division and a mortgage lending division. It’s hard to make people happy in just one of those lines of business.

But if everything goes according to plan, they might be able to offer special incentives you might not find with other lenders or existing home sellers.

The biggest perk to using a home builder’s lender at the moment is the potential for a bought down rate.

Often, builders will offer big rate discounts to get you into a new home, or offer closing cost credits, or both.

This can ease affordability but some argue it’s at the expense of a higher sales price.

Regardless, do your research, gather quotes from outside banks/lenders, and take the time to negotiate.

While the process could be more streamlined with an affiliated lender/builder, don’t sacrifice price in the process. After all, the mortgage could stay with you a lot longer than the ~45 days it takes to get it.

KBHS Home Loans Pros and Cons

The Good Stuff

  • Can apply for a home loan online or in-person
  • Offer a digital process and hybrid remote closing
  • All major loan programs available including jumbos and ARMs
  • Financing specials including special rates for KB Home buyers
  • Excellent customer reviews from thousands of past customers
  • A+ BBB rating
  • Mortgage calculator and how-to videos and guides on their website
  • Free smartphone app

The Perhaps Not

  • Do not list their mortgage rates or lender fees online
  • Not licensed in all states
  • Only for home buyers
  • No second mortgages or home equity products

Source: thetruthaboutmortgage.com

Apache is functioning normally

Young professionals are becoming a major part of the workforce. Ranging in age from early-20s to mid-30s, young professionals are typically classified as working in a professional or white-collar field. However, as new careers emerge, the very definition and work of a young professional are changing and evolving on a daily basis.

It’s an exciting time for a young person in the workforce, with plenty of innovative opportunities, new directions and forward-thinking workplaces. To start their work lives off on the right foot, young professionals want to situate themselves in a good city with ample work opportunities in various fields.

But it’s not all about work. Young people want to have fun, as well! That’s why it’s imperative that a city wanting to cater to young professionals has a happening social scene. This can include everything from great restaurants to sports, live music and entertainment. A vibrant cultural scene gives young professionals a chance to let their hair down after work and connect with others in their community.

From a thriving jobs market to great after-work hours fun, these are the best cities for young professionals.

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These are the 10 best cities for young professionals

To be a good place for young professionals, a city needs to have a diverse job market. But it isn’t enough to have plenty of companies and job openings. You need chances for advancement within fields and companies. Plus, you need plenty of fun things to do outside of work that appeal to a hip, youthful crowd. These 10 cities rank highest as the best cities for young professionals in America.

10. Boston, MA

Massachusetts’ capital city is one of the best cities on the East Coast for young people to live and work. With thriving industries in IT, tech, finance, insurance and healthcare, young professionals working or hoping to work in these fields have tons of options. It’s an especially good location for the healthcare field, as Boston is home to some of the best hospitals nationally and around the world.

Another big plus: Boston is the home of Harvard, MIT and other top universities. This gives young professionals the chance to pursue advanced degrees in their field or change career paths.

Boston’s city life is one of the most diverse and vibrant on the East Coast. The city is full of history, which you can experience in its architecture and museums. But it’s also fully in the present and looking to the future in giving its residents a good quality of life. In 2017, Boston was named one of the most innovative cities in the world, which is felt everywhere from its work and educational institutions to its urban planning and cultural offerings.

It’s also an extremely health-conscious city, with tons of parks, bike paths and pedestrian-friendly areas. It boasts of a renowned art, theater and live music scene, as well as great dining and nightlife. Neighborhoods like South End and Allston/Brighton offer affordable, trendy places to live.

9. Madison, WI

Once overlooked as young professionals flocked to major coastal metropolises, Midwestern cities like Madison are showing that they have a lot to offer ambitious young people. The University of Wisconsin-Madison has highly regarded tech and IT programs, fueling a citywide industry.

Alongside education, young professionals here have their choice of many interesting, cutting-edge industries like healthcare, energy, aerospace and agriculture. Madison’s proximity to Chicago and Milwaukee also allows young professionals to make connections and network with companies in larger cities while enjoying Madison’s more relaxed and affordable quality of life.

Outside of work, Madison bustles with the energy of a college town. Sports are huge here (Go Badgers!), with football, basketball, hockey and baseball. Be sure to watch all those games while enjoying a cold, locally-made beer. Alongside its love of brats and cheese curds, Madison is known for its craft brews.

To burn off all those good eats, hit the paths of Madison’s many parks, especially the scenic ones along the shores of Lake Mendota and Lake Monona. For the more artistically inclined, you can find live music, museums and art exhibitions in abundance.

8. Atlanta, GA

Pursuing a career in Atlanta is bound to set young professionals up for success in life. The city positively crackles with expectation and energy. People living here are all about big ideas and big dreams, setting the stage for innovation and collaboration. Healthcare and finance are major industries here. But it’s also a great spot for young professionals looking to break into communications, media, film and entertainment.

The young workforce can take advantage of local groups like the Young Professionals of Atlanta for guidance, networking and giving back to the community. The Hartsfield–Jackson Atlanta International Airport, which is a major hub, also allows for easy work travel.

Beyond that, Atlanta just knows how to have a good time. There’s always something going on, from a concert to a new restaurant to try. So, there’s always an incentive to go out. Live music is king here. Atlanta’s dominance in the hip hop, live music and entertainment scenes is undeniable. It has great sports teams like the Falcons, Hawks and World Champion Braves.

From southern comfort food like fried chicken and barbecue, Atlanta is all about the good eats. With its lush parks set against towering skyscrapers, it’s a great city to explore on foot. Finally, neighborhoods like Cabbagetown and Old Fourth Ward have affordable living close to work in the downtown area.

7. Austin, TX

Austin’s cultural scene is enough of a draw to get young people to move there. The city has seen tremendous growth over the past decade and for good reason. Austin is a town for creatives, from its live music to visual art to multi-discipline experimentation. Local museums, the University of Texas at Austin and the famous SXSW Festival foster a highly creative environment. And let us not forget how good the tacos are.

But it’s not all play, no work. By many metrics, Austin is one of the best cities for young professionals to learn skills, gain experience and develop their careers. It’s fast becoming a major center for tech, advanced manufacturing, digital media, start-ups and space technology. Even Tesla is transplanting its headquarters to Austin.

But for a town that’s so tech-focused, it’s still affordable with a rent-to-income ratio of about 10 percent. Young professionals can expect to earn high incomes here but will be shelling out less of their money for rent and cost of living. Austin’s population growth has been a cause for concern for its affordability, but there’s no denying it’s a great place to live as a young professional.

6. Minneapolis, MN

Alongside Madison, Minneapolis is another Midwestern city showing its chops. With a diverse job market, young professionals are here not only for work but also for the low cost of living and cultural landscape. The live music and nightlife scenes rival those of major coastal cities. And sports lovers enjoy games cheering on the Vikings and other local teams like the Minnesota Twins.

Healthcare, banking, finance, data centers and biosciences are just some of the fields young professionals can work in here. Young people hoping to go into the medical field should definitely have Minneapolis on their radar. Nearby Rochester is home to the internationally-renowned Mayo Center.

You can pursue higher education at local universities like the University of Minnesota. From top-tier career opportunities to a vibrant social scene, Minneapolis has everything young professionals need to launch their careers while enjoying their youth.

5. Washington, D.C.

If you’re a young professional looking to get into politics, there’s nowhere better than the nation’s capital. From internships to working in the offices of congresspeople, opportunities abound. And as politics revolve around connecting with people, networking is practically an art form here. At power lunches and events, young professionals can make valuable connections to parlay into prized job positions. But politics isn’t the only game in this town. Healthcare, communications, higher education and tech also have strong footholds here.

Apart from work, Washington, D.C., is a hit among young people for its nightlife, dining, arts and culture. Good public transit also allows for easy connection between neighborhoods and business districts. With D.C. having a high cost of living, this gives young professionals the chance to live more affordably outside the city center.

4. Denver, CO

The Mile High City also ranks very high on our list of the best cities for young professionals. For outdoor lovers, there’s nowhere better. The Rocky Mountains are right next door, with hiking, climbing and skiing. But there’s plenty of fun in town, as well, from dining to craft brews to cheering on the Denver Broncos. The nightlife here is hot.

When not out climbing peaks, young professionals can climb the ranks at work. Top industries in Denver include telecommunications, healthcare, financial services, IT and aerospace. Hip neighborhoods like Capitol Hill and Highland are centrally located, with easy access to downtown for work. An average commute of 25 minutes also means that living outside the city center isn’t a deal-breaker.

3. San Francisco, CA

The City by the Bay is a great place for young professionals to put down roots. This is especially true if they’re in the fields of tech, IT, software, digital and social media, international business and biotech. Thanks to its proximity to the tech hub of San Jose, San Francisco has become an outpost for innovative, forward-thinking young professionals all working on the next big thing.

It’s no secret that affordability is not San Francisco’s strongest suit. However, due to the in-demand careers and work opportunities present in the area, the median household income is $112,449. So, even with the high cost of living, it’s still possible to earn enough to enjoy a comfortable lifestyle. And most locals will say the high rents are the price you pay for living in such a dynamic place. With historic neighborhoods, parks, a robust performing arts scene and a food scene spanning cuisines from around the world, San Francisco is a great place for young professionals with active social lives.

2. Charleston, SC

The city of Charleston is known for its historic architecture, Southern cuisine and abundant history. But it’s fast getting a reputation as a great hub for young professionals. The city is home to major industries like aerospace, tech, defense and life sciences.

Housing here is also very affordable for renters. In popular neighborhoods like Harleston Village, North Charleston and James Island, the average rent is around $900 to $1,100. You can find higher education opportunities at the College of Charleston and the Medical University of South Carolina.

Charleston also boasts of a very lively social scene. That classic southern hospitality makes it a great place to go out and meet people. Young people living here have tons of activities to choose from in their free time. Charleston has a much-lauded dining scene, with tons of restaurants and cuisines to try.

The city also has a growing nightlife scene that will greatly appeal to the young crowd. Arts and culture lovers can get their fill at Charleston’s many museums and galleries. Live music is also getting a foothold here, offering something for the late-night crowd besides dancing and bars.

1. Seattle, WA

It’s called the Emerald City, but it’s taking home the gold as the best city for young professionals. Seattle is one of the West Coast’s top cities for industry and business. But it also provides unbeatable access to the great outdoors, art, culture, dining and live music. While Seattle is an expensive city, it has plenty of affordable neighborhoods that young professionals can call home.

Seattle is famously home to multiple Fortune 500 companies. Just to name a few, there’s Amazon, Starbucks and Microsoft. Many other household name companies are also based here, giving young professionals plenty of highly sought-after jobs to go after. The aerospace industry, tech and IT are also big players.

Beyond the competitive job market, young professionals in Seattle enjoy taking advantage of the city’s multicultural food scene, live music, theater and art. Heading out into the forests, waterways and mountains of Washington state is another popular way people living here unwind.

The top 50 cities for young professionals

Do the cities in the top 10 not have the right opportunities or connections you’re looking for? Craving a different type of scene? Don’t worry, there are plenty more options for great cities for young professionals.

The worst cities for young professionals

Not every city has the right tools for the job as one of the best cities for young professionals. Plenty of cities fall short due to factors like bad income-to-rent ratio, high rental rates and high unemployment rates among young people. These are the worst cities you can live in as a young professional.

Young professionals can have it all in these cities

Young people launching their careers want good opportunities. But they also want to enjoy the trappings of youth, like going out to parties or concerts. These cities provide the best of both worlds for young professionals.

Methodology

Cities were ranked based on a weighted scoring system using four broad categories: Demographics, Housing Costs to Income, Recreation and Community and Economics. Each category was weighted to account for 25 percent of the final score. Among the categories, features were weighted as follows:

Demographics: 25 points

  • Percent of the population age 25-34: 12.5 points
  • Percent of population with a bachelors degree or higher: 12.5 points

Housing Costs to Income: 25 points

  • Rent to income ratio: 25 points

Recreation and Community: 25 points

  • Bars and restaurants per capita: 6.25 points
  • Art/culture and nature/parks per capita: 6.25 points
  • Inbound migration, different state, 1 year: 6.25 points
  • Inbound migration, abroad, 1 year: 6.25 points

Economics: 25 points

  • Laborforce participation, Age 25-34: 8.33 points
  • The unemployment rate, Age 25-34: 8.33 points
  • Percent change in median income, 2015-2019, Age 25-44: 8.33 points

Data on population, educational attainment, migration, labor force participation, unemployment and median income are from the U.S. Census’ 2019 American Community Survey 1-year Estimates. Median income data from the U.S. Census’ 2015 American Community Survey 1-Year Estimates were used in calculating the percent change in median income.

Recreation data, including estimates of bars, restaurants, art and cultural institutions, and natural amenities are from commercially licensed business listings and are based on NAICS categories for Drinking Places (Alcoholic Beverages), Full-Service Restaurants, Independent Artists, Writers and Performers, and Nature Parks and Other Similar Institutions.

Cities with insufficient data were excluded.

The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com

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Decorating is one of the more exciting aspects of moving into a new apartment home. Before you begin unpacking, you’ve mentally already placed your various pieces of wall art or are thinking about what you’d like to buy.

Better Homes & Gardens suggests you tackle empty wall space by, “infusing it with warmth and personality,” using creative artwork, mixed media and vintage pieces that bring out who you are.

Of course, hanging pictures on drywall is tricky. You’ll need to know if you’re hanging pictures on drywall or studs, for starters, and you’ll need the right equipment — such as drywall nails and drywall anchors.

Check out these apartment decorating tips for creating a space you love while working with the materials you have.

Hanging pictures on drywall or studs

The most secure way to hang a coat hook, wine rack, picture or any piece of wall art is to attach a screw to a stud.

What is a stud?

Not exactly sure what a wall stud is? Let us clarify — its beams of wood beneath the drywall that act as the wall’s frame. In most homes or mixed-use buildings, studs find themselves typically spaced 16 inches apart. They can run vertically, horizontally or diagonally. Although most home builders follow these guidelines, it isn’t a guarantee — so your first step in finding a place to hang pictures on drywall is to find the studs.

How to find a stud

The easiest way to find a stud in your wall is to look for electrical outlets and light switches. Standard electrical outlets and light switches typically attach to studs.

All you have to do is remove the cover plate of the electrical outlet or light switch and confirm there’s a vertical wooden support beam — stud — behind it. Once you’ve found one stud, begin measuring outward, marking off every 16 or 24 inches based on the spacing between studs in your home.

You can also buy a stud finder. They let you find studs under the drywall without having to measure. Residential stud finders are fairly inexpensive, with prices ranging between $10 and $50. Don’t go buy yourself an industrial deep-scanning stud finder, though — you won’t need all the bells and whistles and a residential stud finder will do fine. The studs in your drywall are shallow enough for detection via a stud finder sensor.

When you don’t have any other options, you can sometimes tell where a stud is by knocking on the drywall. A dense, muffled knock means there’s a stud behind the section of drywall you’re knocking on, whereas a more hollow sound probably means that there’s no stud behind the drywall.

Hanging pictures on drywall with a stud

Once you find the stud, it’s time to break out the tools and start hanging. Make sure you’ve reviewed your lease first and you have the green light to put holes in your walls. Drilling into a stud will create an obvious hole you will need to fill before you move out.

Drilling into a stud

  1. Use the drill bit to slowly drill into the drywall and then the stud — creating a hole in the location you marked. Always look out for plumbing and electrical cords when drilling into a stud.
  2. Apply gentle pressure while you’re drilling to know when you’ve hit the stud. Trust us, you’ll feel it.
  3. Keep your drill at low speed, and make sure to choose the right bit for the job. A large bit isn’t necessary when drilling into a stud.
  4. Insert the drill and pull it out slowly once you’ve drilled your hole into the stud.

Hanging your picture

If your electric drill has a screwdriver bit, swap it in. Otherwise, a manual screwdriver will work. Place your screw into the small hole you created, and use the screwdriver to screw it in. Then, you can hang your picture.

When you don’t have a stud

Because drywall isn’t very sturdy, be careful about hanging pictures and art from a spot that doesn’t have a stud. If you’re able to make holes in your walls, here are some options to consider for hanging pictures on drywall without a stud.

1. Drywall anchors

Drywall anchors look like hollow plastic screws. They’re a great ally when working with drywall since they’re designed to lodge directly into it. It’s like a one-way valve. The anchor slides into the wall, then the hook deploys and you can’t pull it back out. The design of drywall anchors ensures that your art remains on your wall. This is especially important if you’re hanging a heavy framed print or painting.

2. Expanding plastic sleeves

These drywall anchors have a design complete with wings that spread out to help keep it — and what you hang from it — in place. It should fit snugly into the hole you drill, to the point that you might need to tap it with a hammer to get it all the way into the drywall. Intended for hanging lightweight and medium-weight items, expanding plastic sleeves work best for securing heavy picture frames, bulletin boards, lightweight framed mirrors, lightweight shelving and wall-mounted mirrors to the drywall.

When shopping for expanding plastic sleeves, check the packaging since only ones intended for drywall will let you put a screw into them. If you don’t know the composition of your walls, ask your leasing office or landlord. Definitely check because you may not even have drywall and other expanding plastic sleeves for different materials exist.

3. Drywall nails

Drywall hangers and nails work in two different ways. The nails drive into drywall and plaster walls at an angle, which allows them to use the wall surface as leverage and support. These are perfect for hanging items up to about 20 pounds. If you have a picture that is heavier than that, use a flat-mounted hook and anchor.

Drywall hangers and nails come in a variety of sizes, sold separately and in kits. Grabbing a simple picture hanging kit from your local hardware store is always a good idea too. You’ll then have all sizes of drywall nails and hooks you may need on hand.

4. Tap-in expanding anchors

For hanging loads less than 10 pounds, use a handy little tap-in expanding anchor. Tap the pointed end and flat shank into the drywall until it’s flush. Once your shank is flush with the wall, expand the anchor by driving a #6 screw into the hole.

5. Toggle bolts

Toggle bolts work for super heavy loads, like a coat rack. They’re a little more difficult to install, as they require a larger hole, proper insertion into the drywall and careful screwing to expand the toggle and bring it flush to the inside of your drywall.

To use toggle bolts, drill a hole large enough for both the screw and toggle to fit into your drywall. Fit the item you wish to anchor over the bolt, insert the toggle and tighten. This will anchor the toggle to the inside of your drywall, creating a very sturdy place to hang heavy loads.

6. Anchor wire/monkey hooks

Anchor wire, a.k.a. “monkey hooks,” are curved pieces of metal that look similar to the hook on a dry-cleaning hanger. The big difference is that they’re very sharp and pointed at one end. On the other, anchor wires have a divot and this is where your picture goes. These are great for mirrors or artwork hung with a wire that runs across the back of the framed item.

To use an anchor wire, press the sharp end into the wall at a downward angle, rotate the anchor wire 180 degrees and gently pull it back out until it doesn’t move. Once situated, you’re ready to hang your object.

7. Adhesive strip or hooks

Hanging pictures without nails is possible too — you don’t always need to make holes in your walls. If you’re not allowed to use drywall nails and don’t have the equipment you need to make a lot of holes in the wall, you can still hang your wall decor using adhesive strips or hooks.

These products stick to the wall without damaging the paint (as long as you follow the instructions properly). Adhesive strips also stick to the art for even more security. Products come in different sizes and use different glue strengths. Make sure to check the packaging before purchasing to ensure a sturdy hang.

Get the right décor up no matter what

The types of walls you have and the rules within your lease for hanging pictures on drywall need not limit what you can do. With the right tools and accessories, you can fill your walls with items that reflect your personality and passions — creating a space that’s truly yours.

Lesly Gregory has over 15 years of marketing experience, ranging from community management to blogging to creating marketing collateral for a variety of industries. A graduate of Boston University, Lesly holds a B.S. in Journalism. She currently lives in Atlanta with her husband, two young children, three cats and assorted fish.

Source: rent.com

Apache is functioning normally

A brewing crisis is emerging around homeowners insurance and thus far the finance and insurance community has not offered any viable solutions.

The annual number of weather/climate-related disasters exceeding $1 billion per event has more than doubled over the last five years from historical averages. Homeowners in affected markets have experienced increases in premiums that threaten their financial soundness or are finding cancellation notices in their mailboxes.

Major credit investors such as Fannie Mae and Freddie Mac, which require such policies, are acutely concerned about the long-term prognosis of traditional insurance in light of extreme weather trends. 

An overhaul of the homeowners insurance market is in order to prevent an impending catastrophe in the mortgage market.

Premiums on homeowners insurance policies soared more than 20% from last year, reflecting increased rebuilding costs from more natural disasters. In areas hardest hit by recurring disasters such as Florida, premiums have risen 35% with many homeowners experiencing much higher rates. And that’s where policies are available.

Several major insurers grabbed headlines this year by announcing their withdrawal from some markets, such as State Farm deciding not to offer new policies on homes in California due to major disasters like destructive wildfires that have plagued the state in recent years. 

Insurers are squeezed between state insurance commissions, reluctant to allow rate increases reflecting the recent trends in claims, and reinsurance companies raising premiums on insurers looking to offload significant risk exposure from natural disasters. 

State-run insurance programs including Florida’s Citizens Property Insurance Corp. have been reeling from the exodus of private insurers in their state. The dependence of a functioning insurance market on the decisions of 50 different state insurance commissions, poorly operating state-run programs and the volatility of reinsurance premiums imperils this market and has spillover effects onto the mortgage market.

To ensure the vitality of both homeowners insurance and mortgage markets, a combined private-public insurance solution at a national level is required to distribute natural disaster risk more efficiently, thereby lowering the costs and access to insurance and helping reduce pressures from a housing affordability crisis already in full bloom. 

This could be attained by creating a new government-sponsored enterprise (GSE) under the regulatory purview of the Federal Housing Finance Agency (FHFA) that already regulates Fannie Mae and Freddie Mac. The existing National Flood Insurance Program (NFIP) would be restructured into this new hazard insurance GSE. 

Importantly, this new GSE would be run by property and casualty (P&C) insurance, finance and weather/climate experts. The GSE structure would provide a nationwide platform providing hazard insurance to every homeowner against major natural disasters beyond flood risk. Providing fairly priced hazard insurance to homeowners given the trajectory of natural hazard events is in the national interest and funding this business in part with low-cost debt is critical to keeping costs down and access to insurance available to all.

By providing coverage only for natural hazards via this federal hazard insurance GSE, private insurers would be able strip out costly provisions of existing homeowners policies, turning them into basic policies covering other non-hazard related risks such as damage from a water line break.

This would reduce the overall costs of these standard policies. The federal hazard policy could be quasi risk-based, into several risk-based tiers to spread costs across a broad base of homeowners and make the policies affordable but also provide pricing disincentives to homeowners attracted to risky areas.

On the back end, the hazard insurance GSE would issue climate risk transfer (ClRT) securities much like Fannie and Freddie’s credit risk transfer (CRT) securities for mortgage credit risk. 

Tranches of hazard risk would be sold off to private investors, most of which in this case would be insurers and reinsurers that could take positions in hazard risk based on their risk preferences. This would more efficiently distribute hazard risk and with sufficient interest, build liquidity in such a market which over time would help lower premiums while also reducing systemic risk to the taxpayer.

Some might say that the federal government’s track record with national flood insurance has not been good, so why would a federally chartered hazard insurance GSE present a viable solution? Actually, the housing GSEs have been incredibly effective at lowering the cost of homeownership since their inception and even following the Global Financial Crisis of 2008, have generated a profit for the US Treasury. 

Establishing a hazard insurance GSE would bypass the insurance rate-setting problem that exists across 50 state insurance commissions that can limit insurance availability, and combined with a new ClRT security, would create an efficient market for broad distribution of hazard risk to the private market. The close linkage between homeowners insurance and mortgages would also be preserved by having the FHFA oversee GSEs engaged in these activities.

A vibrant housing finance system is dependent on a functional homeowners insurance market. As the pace of natural disasters rises, the provision of homeowners insurance needs to adapt to a rapidly changing environment. A federally sponsored corporation is best suited to address inherent frailties of today’s homeowners insurance markets.

Clifford Rossi is Professor-of-the Practice and Executive-in-Residence at the Robert H. Smith School of Business at the University of Maryland.  He has 23 years of industry experience having held several C-level executive risk management roles at some of the largest financial institutions.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the author of this story:
Clifford Rossi at [email protected]

To contact the editor responsible for this story:
Sarah Wheeler at [email protected]

Source: housingwire.com

Apache is functioning normally

When it comes to higher education, Native Americans face obstacles. Educationdata.org says that postsecondary attendance among American Indian and Alaska Native students “has been in decline since 2010.” Only 0.7% of college students identified as American Indian or Alaska Native in 2022.

“Research has found that American Indians and Alaska Natives have a much lower rate of college completion than the population as a whole,” the Department of Education’s (DOE) Federal Student Aid (FSA) says on its website.

The soaring cost of college could have something to do with this: The average annual cost of tuition at a public 4-year college is 23 times higher than in 1963. The average cost of college for in-state students at a four-year institution in 2022-23 was almost $11K. Students at private nonprofit four-year institutions paid over $39K on average.

According to the DOE, loan forgiveness (or cancellation) is generally the term used if you are no longer required to make payments on some or all of your student loans.

While there are some specific programs to help with Native American student loan forgiveness, it’s important to also research what financial aid, including scholarships and loans, is targeted toward American Indians and Alaska Natives.

Recommended: Student Loan Forgiveness: Programs for Relief and Mass Forgiveness

Picking a Career With Loan Forgiveness

One very important resource: The Bureau of Indian Education provides a list of scholarships and grants available to Native American students, such as the American Indian College Fund.

Many states offer financial aid to Native American students attending college. Some individual colleges and state schools also offer free tuition and room and board to Native American students. For instance, Native American students who are Montana residents can qualify for a tuition waiver
at Montana State University.

Keeping a career in mind when pursuing an education can make a big difference in financial aid and forgiveness options.
💡 Quick Tip: Enjoy no hidden fees and special member benefits when you refinance student loans with SoFi.

Health Services

One of the programs that gives priority to Native Americans is the Indian Health Services Loan Repayment Program. This program, part of the U.S. Department of Health and Human Services, provides funds for health professionals to help repay eligible education loans.

In 2023, the program announced an increase in the maximum annual award amount to $25,000 per year for new awards and extensions starting in Fiscal Year 2023. You can find details about the new award amount here.

In exchange, health professionals agree to an initial two-year service commitment practicing in areas that serve American Indian and Alaska Native communities.

Priority enrollment in this program is given to American Indians and Alaska Natives. Professions across the healthcare spectrum, including behavioral health, dentistry, and dietetics, are available.

The organization says that available opportunities are based on the greatest staffing needs in Native American health facilities. Participants are also eligible to extend their contracts annually until their qualifying student debt is paid.

Public Service Loan Forgiveness

This program, offered by the DOE, is open to all qualified students, not just Native Americans. The careers that may qualify for Public Student Loan Forgiveness Program (PSLF) range from forestry and natural resources to teaching and law enforcement.

To receive loan forgiveness for work in public service, applicants must work full-time for a qualifying government agency or certain nonprofits. After 120 on-time, qualifying payments in an income-driven repayment (IDR) plan, the remainder of the student debt can be forgiven.

The Department of Federal Student Aid offers a PSLF Help Tool to start work on the Employment Certification Form to apply.

Serving as a full-time AmeriCorps or Peace Corps volunteer also counts as qualifying employment for the program. Loans that may be eligible to be forgiven under PSLF include any non-defaulted loans that you received under the Direct Loan Program from the government. Private loans are not eligible for any federal forgiveness plans.

Recommended: A Look Into the Public Service Loan Forgiveness Program

Teacher Loan Forgiveness Program

For students interested in pursuing a career in teaching, the DOE’s Teacher Loan Forgiveness Program is key. If you teach full-time for five years straight in a low-income school or educational service agency, you might be eligible for up to $17,500 for certain subject areas.

Even if you don’t teach math, science, or special education, you could still receive up to $5,000 in loan forgiveness if you are a qualified full-time elementary or secondary education teacher.

This might be another option for Native American students looking for student loan debt forgiveness by giving back to a community in need.

To qualify, the school or educational agency must be listed in the directory, published by the DOE, for the years you were/are a teacher.
💡 Quick Tip: It might be beneficial to look for a refinancing lender that offers extras. SoFi members, for instance, can qualify for rate discounts and have access to career services, financial advisors, networking events, and more — at no extra cost.

Lowering Your Student Loan Payments

While student loan forgiveness is often a great solution for debt relief, sometimes you might not qualify for career-based programs. One solution is income-driven relief (IDR) for federal student loans.

The Saving on a Valuable Education (SAVE) Plan is the newest income-driven repayment plan. Like other IDR plans, the SAVE Plan calculates your monthly payment amount based on your income and family size. In addition, the SAVE Plan has unique benefits that will lower payments for many borrowers.

The SAVE Plan lowers payments for almost all people compared to other IDR plans because your payments are based on a smaller portion of your adjusted gross income (AGI). Your payment for federal undergraduate loans could be as low as 10% of your discretionary income -– and that percentage could decrease to 5% in 2024.

The SAVE Plan has an interest benefit: If you make your full monthly payment, but it is not enough to cover the accrued monthly interest, the government covers the rest of the interest that accrued that month. This means that the SAVE Plan prevents your balance from growing due to unpaid interest.

Recommended: The SAVE Plan: What Student Loan Borrowers Need to Know About the New Repayment Program

Refinancing Student Loans

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
NOTICE: The debt ceiling legislation passed on June 2, 2023, codifies into law that federal student loan borrowers will be reentering repayment. The US Department of Education or your student loan servicer, or lender if you have FFEL loans, will notify you directly when your payments will resume For more information, please go to https://docs.house.gov/billsthisweek/20230529/BILLS-118hrPIH-fiscalresponsibility.pdf https://studentaid.gov/announcements-events/covid-19

If you are a federal student loan borrower you should take time now to prepare for your payments to restart, 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.

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Source: sofi.com