The Internal Revenue Service (IRS) has announced that it will resume issuing collections notices to taxpayers that were previously suspended during the COVID-19 pandemic. Here are some important points to note:
No date has been set for when the notices will be sent out, but the IRS has a detailed plan in place to stagger the issuance of different types of notices to avoid overwhelming the agency.
The IRS will communicate with taxpayers, tax professionals, and Congress on the timing of the plans to ensure that no one is caught off guard by the generation of notices.
The plan is to give most taxpayers a gentle reminder notice before sending a final Notice of Intent to Levy to avoid the appeals process and get taxpayers back into compliance.
The IRS will look at the totality of the 500-series of notices and taxpayers and their circumstances to see if there is a more efficient way of communicating and collecting past due amounts.
The agency has been working with National Taxpayer Advocate Erin Collins, who has offered input that the IRS is incorporating and taking into consideration every step of the way.
The staggered approach will help practitioners and the Taxpayer Advocate Service from being overwhelmed, as well as the IRS.
The IRS will start generating CP-14 notices, which are the statutory due notices, in the very near future, and these will be sent out to taxpayers around the end of May.
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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Loan origination software allows financial institutions to automate and manage the workflow of each step in the lending process. These steps often include loan applications, underwriting, credit approval, documentation, pricing, funding, and rejection or disbursement of the loan application. LOS also integrates with other back end and front-end applications of lenders, allowing them to exchange … [Read more…]
Did you hear that sound? That’s the entire mortgage industry shouting, “hip, hip hooray!” The Federal Housing Finance Agency (FHFA) on Wednesday announced that it would rescind a controversial loan-level pricing adjustment (LLPA) for conventional borrowers with debt-to-income (DTI) levels at or above 40%.
The FHFA, which regulates Fannie Mae and Freddie Mac, had previously delayed implementation of the DTI LLPA from May 1, 2023 to August 1, 2023 following a chorus of upset from mortgage industry stakeholders, including the influential Mortgage Bankers Association (MBA).
Mortgage industry lobbyists and practitioners alike complained that the fee was “unworkable” and would result in logistical and compliance nightmares, as well as confusion and mistrust from borrowers.
“I appreciate the feedback FHFA has received from the mortgage industry and other market participants about the challenges of implementing the DTI ratio-based fee,” FHFA Director Sandra Thompson said in a statement on Wednesday. “To continue this valuable dialogue, FHFA will provide additional transparency on the process for setting the Enterprises’ single-family guarantee fees and will request public input on this issue.”
The FHFA also put out a request for information on other new fees, including those imposed on borrowers with higher credit scores and moderate down payments.
In January, the FHFA announced a series of changes to LLPA fees with a revamped LLPA matrix that differentiates pricing by loan purpose, and a total of 81 grids for purchase loans, limited cash-out refi loans, cash-out refinance loans. Such changes prompted pushback from the National Association of Realtors and theMBA that it could hurt middle-wealth homebuyers and increase overall pricing.
The non-DTI-based fees went into effect officially on May 1 but practically have been in effect since mid-March.
The FHFA also had to battle misinformation along the way, with false claims spreading that lower-credit borrowers would pay less than better-credit borrowers.
Still, no LLPA fee elicited a stronger response than the new DTI requirement. Lenders argued they would not be able to accurately determine a borrower’s actual income before rates had to be locked, and the timeline didn’t allow them to change terms of the loan if new information came in later in the process, which happens frequently.
Following the FHFA’s announcement on Wednesday, the MBA issued a statement cheering the demise of the DTI LLPA.
“The proposed fee was unworkable for lenders and would have confused borrowers and undermined the customer experience,” the trade group said. “We are pleased that FHFA engaged with industry stakeholders, recognized the negative impacts of the fee, and decided to rescind its implementation. MBA urges FHFA to continue its engagement to improve clarity and transparency regarding the GSEs’ pricing framework.”
The National Association of Realtors, America’s largest trade organization, also applauded Sandra Thompson for reversing course on the DTI fee.
“It would have imposed a cost on borrowers at a time in the market when affordability is already stretched and only made them riskier,” NAR President Kenny Parcell said. “Likewise, the FHFA’s decision to release a request for information on the other changes is a great example of good governance.”
Likewise, the Community Home Lenders Association, a coalition of smaller lenders, said the scrapping of the DTI LLPA was good policymaking.
“The GSE pricing grid is a complex balancing of the objectives of access to mortgage credit for underserved borrowers and safety and soundness – and CHLA believes today’s action to end the use of DTI LLPAs will enhance those dual objectives,” said Scott Olson, the group’s executive director.
Days before the DTI fee was killed, National Housing Conference President and CEO David Dworkin argued in a post that the risk-based pricing model the FHFA relies on is antiquated and has outlived its purpose.
“Guarantee fees on loans purchased by Fannie Mae and Freddie Mac are the appropriate mechanism for investors to pay for guarantees on the timely payment of principal and interest on mortgage-backed securities, ensuring a liquid and efficient market,” Dworkin wrote. “To create a fair playing field for first-time homebuyers across all income levels, Fannie Mae and Freddie Mac should should charge the same fee for everyone, as was the practice between 1938 and 2008, and as FHA loans do today.”
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One of the rights afforded to us under the Fair Credit Reporting Act is the ability to challenge information on our credit reports with which we do not agree. I addressed several methods of disputing credit entries in this Mint article.
The credit dispute process is free and normally takes less than a month. There is some confusion, however, about the impact a credit dispute can have on your credit scores. In this post, we’ll cover what happens when you dispute a credit report, how a credit dispute impacts your credit score, what is disputable, and how you can do so.
When Can I Dispute a Credit Report?
When you file a dispute with the credit reporting agencies, they are required by the Fair Credit Reporting Act to show that the item is “in dispute.” They accomplish this by placing the code “XB” on the offensive credit entry.
The XB code is what’s referred to in my world as a “Compliance Condition Code.” When it’s placed in your credit report, it reads as “Consumer disputes, investigation in process” or some derivative of that wording.
Essentially, it means that the credit bureaus received your dispute and are actively investigating the information.
The Impact of “XB”
When the XB code is present on an account, a public record, or a collection, credit scoring systems treat it differently than they would if the account was not actively in dispute.
This is where the confusion comes from. The FICO score will not allow an item that is actively being disputed to harm your score. How does it accomplish this?
FICO will not consider an item with the XB code present for either its Payment History or Debt related measurements. So, if you have a credit card account with late payments and you’re disputing those late payments, the FICO score will choose not to consider those late payments. And, if you have a credit card account with a large balance and you’re disputing the balance, the FICO score will not consider the balance.
So, does disputing a credit report hurt your score? No. The act of disputing items on your credit report does not hurt your score. However, the outcome of the dispute could cause your score to adjust. If the “negative” item is verified to be correct, for example, your score might take a dip. Note: this dip is not because the dispute was proven inaccurate, but because the XB code is taken off. Alternatively, if the disputed item is proven to be inaccurate, this could raise your credit score.
The fact that the FICO score is temporarily ignoring these items can cause your scores to be higher. Having said that, the score improvement is temporary and can’t be used to “game” the system.
What happens if the disputed item is found to be accurate?
If the item has been verified as accurate, then the credit bureaus are no longer investigating it. That means the credit bureaus will remove the “in dispute” label by removing the XB code.
Once the XB code is gone, then the item is fair game in the eyes of FICO because it has been verified and is, arguably, accurate.
This process isn’t news, and lenders also know about it, which is why you can’t just go and dispute everything that’s bad on your credit reports, have your FICO scores shoot through the roof, and then go apply for a loan.
Most lenders, especially mortgage lenders, require that all items DO NOT have the “in dispute” label before they process an application to closing. They realize the score that has been calculated is likely not the consumer’s most accurate score because the model is ignoring certain aspects of the credit report.
And FICO isn’t the only scoring system that has this specialized treatment of items that are currently being investigated. If you check your credit score using the VantageScore model, you may run into a similar situation.
According to Sarah Davies, Vice President of Analytics and Product Management at VantageScore Solutions, “While an account is documented as ‘Account information disputed by consumer under the Fair Credit Reporting Act (XB)’, it is temporarily excluded from consideration by the VantageScore model.”
What if the item is still being disputed?
If you were not successful getting the offensive credit entry removed or changed, then you can still have it shown as being “in dispute” for as long as it remains on your credit reports. But, that is not the same as an item that’s in dispute AND being investigated.
That is to say, lenders will still likely consider the item when evaluating your credit score since the XB code has been removed.
If you still disagree with an item you can have a label added to your credit reports showing as much. But, that’s not going to cause the score to reflect that label for Payment History and Debt measurements.
How to Dispute a Charge on Your Credit Report
If, after reviewing what happens when you dispute a credit report, you decide it could be the right course of action for you, here’s how you can get the ball rolling.
Step One: Obtain a recent copy of your credit report
In order to dispute an item on your credit report, you’ll need to prove to the powers that be that your credit report is inaccurate. To do so, you’ll want to have a copy of your credit report handy. Consumers are entitled to one free credit report each year from each of the three main credit reporting agencies, which you can access through AnnualCreditReport.com. Or if you’re a Mint user, you can easily view your credit score in the Mint app whenever you please!
Once you’ve got your credit report in front of you, pull out that red pen of yours and notate any items on the report that are inaccurate or with which you do not agree.
reasons to dispute items on credit report to help you decide if it’s worth a shot:
There is incorrect personal information on your credit report, such as your name or Social Security Number
There is a negative item that is beyond the statute of limitations for reporting
The report shows that you carry a debt balance which you have already settled
There is duplicate information shown on your credit report
You have a duplicate credit report or mixed information for yourself and another person
There are fraudulent items on your report, like a new credit card or loan that you did not open or apply for
Step Three: Decide which credit dispute method to use
File a report with the credit bureau: This is the most common method consumers use to dispute credit reports. Each of the credit reporting bureaus—Experian, Equifax, and TransUnion—have dispute forms on their website which you can fill out.
Here’s where you can find them:
If the error appears across each of the credit bureaus’ reports, you’ll need to file a separate report for each. Each of the credit dispute processes vary slightly, but in general, you’ll need to include the dispute form with an explanation of the error(s) as well as a copy of your report with the same error(s) notated.
Report the error to the furnisher: Another method you can use to dispute a debt on your credit report is to go directly to the source—the lender, bank, credit card company, or collection agency that misreported information. When you dispute the item, the furnisher will then be required to report the dispute to each of the credit bureaus, making your job a little easier.
Takeaways
To wrap up, let’s review a few of the key takeaways we covered.
Does disputing a credit report hurt your credit score? No, credit disputes do not hurt your credit score. When an item on your report is being investigated, the credit bureaus will notate this on your credit report using “XB” code which signals to lenders that the item is under review and should not be considered in their evaluation.
Depending on the outcome of your dispute, your credit score may be adjusted to reflect the updated information. If a negative item is removed, the dispute could improve your credit score.
To dispute an item on your credit report, follow these steps:
Get a copy of your credit report
Decide whether or not you should dispute the item
File a dispute with the furnisher or the three major credit bureaus with a dispute form and a copy of your credit report
For more information of credit disputes, check out this blog to learn how to win a credit dispute.
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The Roth IRA Movement may be almost two weeks old, but that’s not going to stop from keep promoting it to potential new investors.
If you haven’t started a Roth IRA yet…then do! Here’s some good places to open a Roth IRA super fast.
The following email was sent to me by a loyal reader who was so excited about the Roth IRA movement that he had share his own success story.
This story is unique though in that it didn’t involve just him; it involved his two daughters.
This is a great read for any parent that wants to show their kids the power of tax-free money.
Here’s the story….
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Jeff: A number of years ago I took a unique approach to a Roth IRA using it as an inducement to have my children get summer jobs while in high school. When they were 15 they began to learn about the benefits of a Roth IRA and certainly knew what one was.
Pretty good right?
I offered to match their (relatively small part time summer job) earnings dollar for dollar. They kept their earnings and I matched their earnings in a Roth IRA.
They opened an Roth IRA with my contribution (equal to their earnings, so as to be in compliance with the law we rounded down to the lower $100) and initially invested the contributions in a mutual fund where the contributions in their first years were under $1,000,
Note: Here’s my post that talks about the rules of opening a Roth IRA for your child.
I continued to provide a match each year through high school (where they never were earning enough to max out the contributions) they were watching what was going on and becoming on the look out for businesses they thought might be good investments.
Living in the real world, they became aware of companies that I was not familiar with and while adverse to risk they found a few winners that would have been great investments, but were missed due to the aversion to risk…but those were good lessons too.
“Dad’s Match”
Since graduating from high school and all through their college years we continued the process of “Dad’s match” and they happily watched their conservative investments grow.
They have learned that “time” is a friend when investing and the benefit of investing early (hard to teach a child about retirement before they have graduated from high school) but I accepted that challenge and it was a profitable lesson for them…that “risk” is something that needs to be carefully evaluated.
My two daughters are now out of college and since graduation I have continued to offer this “match” which is now obviously maxing out their contributions each year. At 28 and 30 my daughters are now selecting individual stocks and making good investing decisions. They moved some of their Roth IRA funds to cash in 2008 and moved some of them back into the market in 2009 and 2010 learning that a $.02 interest rate is only good for so long and that got those funds back into the market.
Lessons Learned
They have learned a lot about investing over the last 15 and 13 years respectively and have Roth IRA balances in excess of $50,000 +.
Editor’s note: How freakin’ cool is that? What a great start to their investing life!
They are appreciative of my “match” that is more than a father’s love, it is a lesson in investing that “pays dividends”.
I have told a lot of people what I have been doing and have found no one else that has done this.
It is the absolute best way to help your children financially and to teach them about investing and to help them learn about risk tolerance. As they grew older they became more willing to accept risk and reward and have learned what their risk tolerance is…which is now one that now has a long range focus and they have a great “head start”.
I have enjoyed receiving your emails over the years and while you are not local to me, I feel like I know you from your emails.
You should share these SUCCESS STORIES with your clients and readers.
Editor’s note: I just did. 🙂
By the way, I have a Roth 401K that I have been funding to the max for several years since it became an investment option at my work approximately 4 years ago. This investment tool is another great addition to saving in a Roth IRA that you should include in the BEST INVESTMENT TOOLS available.
I will pass this along to my daughters so they too can sign up for your email news letters. KEEP UP THE GOOD WORK!
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Do you have a Roth IRA success story? If so, please share in the comments below.
VA loans are exclusive to veterans, active military personnel and their families. It’s a government-backed loan program designed to make homeownership more affordable for these individuals by offering flexible financing options with competitive interest rates. Additionally, VA loans do not require any down payment or private mortgage insurance (PMI). These loans serve as an important tool to help those who have served our country gain access to their dream of homeownership.
If you are an active-duty military personnel or a veteran, there are many VA loan lenders out there, including New American Funding. The company offers lower interest rate mortgages with excellent terms exclusive to service members and military spouses.
Read on for our review of New American’s VA loan offerings.
Best for Low-Credit Borrowers
New American Funding provides a range of benefits that make homeownership more accessible to U.S. service members, veterans and their spouses. As with all other VA loan programs, New American doesn’t require a down payment, and interest rates are usually lower than those of mortgages not guaranteed by the government. Credit score requirements are not published on New American’s website, but they do mention on their blog that VA loans are a good option for “buyers with less-than-perfect credit.”
Additionally, New American Funding doesn’t require any monthly mortgage insurance payments and has no prepayment penalty, meaning borrowers can refinance or sell without having to pay additional fees.
New American VA Loans Pros and Cons
Good for borrowers with challenged credit
Focuses on lending to minority groups
High BBB rating
Offers a closing guarantee
APR information and interest rates are not publicly accessible
Unavailable in Hawaii
Pros explained
An option for borrowers with challenged credit
New American Funding’s VA loan is ideal for service members and veterans looking to become homeowners without needing perfect credit or a large down payment. Even with a credit score of around 580, you can access a wide range of mortgage loans and low-interest VA loan rates. VA loans also come with a funding fee, which is a percentage of the loan amount that goes toward funding the VA Home Loan program. This fee helps VA lenders to take on customers with lower credit and no or low down payments.
Additionally, New American’s VA loan allows you to sell or refinance your home at any time with no penalty or restrictions on cash-out refinances, unlike conventional or FHA loans, which require you to have 20% equity left over after the refinance.
Heavy focus on lending to minority groups
New American Funding is committed to offering clients from all backgrounds a variety of mortgage products and services. Being the nation’s largest home loan company founded by a Latina, New American Funding is dedicated to hiring Hispanic personnel and helping minority groups.
This company lends with an emphasis on social responsibility, as special attention is paid to minority groups whose access to financing may be limited by traditional lenders. New American Funding also brings mortgage education to underserved communities and works with them to overcome income, credit score and race-based barriers to attain home loans. This includes the company’s Latino Focus initiative, which works to improve the experience of Hispanic clients when obtaining a home loan and its New American Dream initiative, which seeks to increase homeownership in African American communities.
As part of the company’s commitment to serving all communities, New American Funding offers FHA, VA and USDA loans designed specifically for first-time homebuyers. It also offers options for adjustable-rate mortgages, fixed-rate mortgages, jumbo loans and more.
BBB accredited with an A+ rating
The company has accreditation and an A+ rating from the Better Business Bureau. This is an indication that it meets all of the BBB’s high standards for operating with integrity and fairness. New American Funding maintains a 4.04 out of 5 stars from 606 customer ratings on BBB with an overwhelming number of customers giving the company a full 5-star rating.
Many of the negative reviews seem to be related to customers not being approved for a loan rather than issues with customer service. Even for these reviews, the company is quick to respond in a respectful and helpful manner.
Offers a closing guarantee
This guarantee is available for all VA mortgages processed with New American Funding. The borrower will receive a full refund of their loan origination fee if the loan fails to close within the specified timeline.
Cons explained
APR information and interest rates not publicly available
New American Funding does not provide publicly available information about its APR or interest rates. To get an accurate estimate on the cost of a loan, you must provide contact information for a quote.
Not available in Hawaii
New American Funding is not available in Hawaii. This means that military families seeking a mortgage loan in this state won’t be able to take advantage of the company’s services.
New American VA Loans Offerings
New American offers a wide range of VA Loans, including 30-year fixed-rate and adjustable mortgages. Below, we explore the types of mortgage loans offered at New American Funding to help you identify which loan is right for you.
VA streamline refinance loan
Also known as the Interest Rate Reduction Refinance Loan (IRRRL), the Streamline Refinance Loan provides an opportunity for veterans and active military members currently carrying VA home loans to take advantage of lower interest rates, reduce mortgage payments and increase overall savings.
If your home has increased in value or you owe less than 80% of its worth, you can refinance. Additionally, a VA Streamline Refinance loan can be done with no money out of pocket. This means you can cover all of the upfront costs of refinancing by rolling them into the total loan amount or adjusting the interest rate.
The IRRRL can also be used to refinance your mortgage from a fixed-rate loan to an adjustable-rate loan, from one type of adjustable-rate loan to another or to convert a non-VA loan into a VA loan.
The table below shows the typical refinance costs.
Refinancing requirements:
Average cost
Loan discount points
0 to 3% of your home loan amount
Appraisal fee
$300 – $500 (could be more for larger homes)
Inspection fee
$175 to $500
Title search and title insurance
$400 – $900
Survey fee
$150 – $500
Prepayment penalty
2% of the loan balance for the first two years and 1% of the loan balance for the third year
VA purchase loan
New American’s VA purchase loans are available to eligible military borrowers with no down payment required. This can be an ideal solution for those who may not have enough funds to cover a large upfront cost.
A purchase loan offers further benefits, such as no PMI requirement or prepayment penalty. With VA purchase loans, borrowers can also finance closing costs up to 4% of the purchase price and receive funds for improvements that enhance the home’s value or energy efficiency.
VA loan type
Loan amount
Interest rate
Annual percentage rate
30-year fixed VA purchase
$295,000
5.250%
5.717%
VA cash-out refinance
A VA cash-out refinance loan can be a great way to use the equity in your home.
With this type of loan, you get a new mortgage to convert some of your home equity into cash. This option may also provide tax benefits since it is typically considered a form of debt consolidation rather than income generation. For example, if you itemize your deductions, you may be able to deduct some of the mortgage interest paid on a VA cash-out refinance. This can result in a lower taxable income and a lower overall tax burden.
VA cash-out rates change daily based on market conditions. The following cash-out rates are current as of April 2023:
VA loan type
Interest rate
Annual percentage rate
30-year fixed VA cash-out
6.750%
7.103%
30-year fixed VA cash-out
6.990%
7.349%
VA energy-efficient mortgage (EEM)
VA loans for energy efficiency improvements can cover items such as storm and thermal windows, solar heating, cooling systems and heat pumps. These loans are not intended for non-permanent purchases such as appliances or window air conditioning units. VA loans can provide up to an additional $6,000 for qualifying energy efficiency improvements, helping you reduce monthly utility bills while improving the value of your home.
The following energy-efficient upgrades are eligible for the VA EEM Program:
Solar energy systems
Caulking, weather stripping and vapor barriers
Upgrades to furnace and heating systems
New thermostats
Upgraded insulation
Upgrades to windows and doors
Water heater upgrades and insulation
Heat pumps
VA Native American Direct Loan
The Native American Direct Loan (NADL) is a program for Native American veterans and their families that allows them access to the same financial advantages of conventional mortgages, including no down payment or monthly mortgage insurance.
Additionally, the NADL offers the ability to build or purchase a home on federal trust land and make repairs on an existing property. This provides Native Americans with more flexibility in choosing where they want to settle.
New American VA Loans Pricing
New American Funding VA loans offer fixed-rate mortgages with repayment options of 15, 20 and 30 years. The shorter the term, the lower the rate — however, your monthly payments will be higher. For adjustable rate loans, adjustable rate caps can be as low as 2% for initial adjustment periods and 5% for subsequent adjustments.
Borrower credit history is a major factor in determining your New American Funding loan rates. Loan and down payment amounts also affect mortgage rates. Larger loan amounts can result in higher interest rates due to increased risk to the lender. Lenders also consider your debt-to-income ratio.
If you’re a low-income borrower, you may be eligible for the Freddie Mac Refi Possible program, which includes a $500 credit toward your appraisal cost and five years of no interest.
The table below shows New American Funding’s VA loan rates:
VA loan type
Interest rate
Annual percentage rate
30-year fixed mortgage
5.250%
5.882%
15-year fixed mortgage
5.000%
5.645%
30-year VA cash-out refinancing
6.625%
6.978%
30-year fixed VA purchase loan
5.250%
5.717%
VA Native American direct loan
6%
6%
New American Funding Financial Stability
New American Funding has seen a recent shift in its Fitch Ratings outlook, a common measure of financial stability, from negative to stable. This upgrade reflects improvements the company has made to its management team and risk environment and investments in compliance management systems. As a result, New American Funding is now better positioned to ensure consumers and businesses access to reliable and secure mortgage services.
New American Funding Accessibility
Availability
Unlike some lenders that offer 24/7 live customer support, New American Funding is more limited. Customers can contact the company Monday through Friday from 8:00 a.m. until 9:00 p.m. CST or on Saturdays from 10:00 a.m. until 2:00 p.m. CST. You can also make payments through your account on New American Funding’s website.
Contact Information
You can reach customer support via phone at 1-800-893-5304 or by email: at [email protected].
You can also use New American’s branch locator tool to find a loan office near you. You can review your loan application status or your account through the online portal.
User experience
New American Funding’s online portal makes it easy to stay up-to-date on your loan application with real-time tracking. Additionally, you can access various New American Funding loan payment options through a secure online system.
You can also browse the company’s Mortgage Resource Center to find information about mortgage payment assistance programs, the latest mortgage news and tips for getting a good VA loan rate.
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New American Funding Customer Satisfaction
New American Funding mortgage reviews from customers significantly exceed industry standards for mortgage servicing satisfaction. New American Funding reviews have a 4.90 out of 5 in customer ratings on Zillow based on more than 8,800 reviews. Additionally, it scored 695 out of 1,000 in J.D. Power’s 2022 U.S. Mortgage Servicer Satisfaction Study — well above the industry average of 607.
New American VA Loans FAQ
What’s the difference between a VA loan and a conventional loan?
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A VA loan is a type of mortgage backed by the U.S. Department of Veterans Affairs and is available to qualifying veterans, their surviving spouses and active duty personnel. These loans offer competitive interest rates and no down payment requirements. They also don’t require private mortgage insurance. It’s important to note that a funding fee can be rolled into the loan amount or paid at closing.
In contrast, New American Funding’s conventional loan is not backed by the government and typically has stricter credit requirements than a VA loan. Additionally, these loans usually require a higher down payment and more expensive fees.
What are the benefits of a VA home loan?
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When you take out a VA loan from New American Funding, you can take advantage of the following benefits:
Up to 100% financing, even for those with less-than-perfect credit
No private mortgage insurance
Funding fees rolled into the loan
Quick loan closings
No down payment required
Lower interest rates
No monthly mortgage insurance premiums
No prepayment penalty
Reduced funding fees
What are the eligibility requirements for a New American VA loan?
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To be eligible for a New American VA loan, you must have a Certificate of Eligibility (COE) and sufficient income. To get a COE, you must be an active service member, veteran, National Guard, or Reserve member.
Spouses of veterans may apply for a VA home loan if they meet specific requirements. If a spouse’s partner is missing, is a prisoner of war or if remarriage has not occurred after a service-induced disability or death, they may qualify for a loan.
How do I apply for a New American VA loan?
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To apply for New American loans, you must:
Apply for a Certificate of Eligibility (COE) that verifies your eligibility status for a VA loan.
Work with a mortgage specialist to choose the best loan for your needs.
Apply for the loan, either online or with the support of New American’s specialists.
Your lender will then take care of the home appraisal process for you.
How we evaluated New American VA Loans
We looked into VA loans from 20 major mortgage lenders to find the best options for veterans and their families. We compared New American Funding mortgage loan reviews and evaluated rates, repayment options, fees, customer service, closing times and additional benefits.
Summary of Money’s New American VA Loans Review
Military service members, veterans and military families looking to qualify for a VA loan to buy a house may find New American Funding appealing. You can finance up to 100% of the home’s value and take advantage of quick closing times, even with a lower-than-average credit score.
On the other hand, New American Funding does not list its credit and income requirements online. Check out the best VA loans from top mortgage companies if you’re looking for a lender that provides in-person assistance or is more transparent about its rates and fees.
Inside: You are wanting to work from home. Here are the best non phone work from home jobs. Exactly what you wanted to find.
Are you looking for a work from home job but don’t want to deal with people? You’re in luck!
There are plenty of non-phone jobs that allow you to work from the comfort of your own home.
This is becoming more and more popular because it allows you autonomous work without the influence of talking to others.
Plus we will cover the best non phone work from home jobs! There are many options available.
To help you get started, we’ve compiled a list of the 35 best non-phone jobs for you:
Can you work from home without talking on the phone?
Yes, you can work from home without talking on the phone.
More and more jobs are transitioning away from the use of a phone. So, there is no better time than to transition yourself.
Best non phone work from home jobs
Here is a comprehensive list of the best non phone work from home jobs.
You will find a variety of part-time, full-time, and contract opportunities in a wide range of fields. Also, the opportunity to become your own boss.
1. Stock Trader
Stock traders must have a good understanding of market trends, economic forces, and have the ability to make quick decisions based on their analysis.
The benefits of working as a stock trader include high pay, job security, and the potential to make a lot of money if the stock market is performing well.
Additionally, stock traders are able to work from home and have flexible hours, meaning that they can plan their working day around other commitments.
Personally, this is one way I make money is by trading stocks and options. Join the $1000 in a day club.
2. Video Editor
A video editor is someone who works with audio and visual content to create cohesive and engaging visuals for either commercial or creative purposes.
They use various software programs to manipulate video clips, sounds, and images in order to create a compelling story. The role of a video editor involves careful attention to detail and the ability to utilize a wide range of software and hardware.
The advantages of a job as a video editor include the potential to work from home and create a flexible schedule, as well as the potential to make great money, depending on the level of experience.
Additionally, it can be a great way to express creativity and further develop important skills.
On the other hand, one of the major disadvantages of working as a video editor is the high stress level that comes with the role.
Video editors are often under pressure to deliver projects under tight deadlines, which can lead to increased pressure and stress. Additionally, there is often a steep learning curve, as video editing requires a lot of technical knowledge and experience.
3. Proofreader
Proofreading is a non-phone work from home job that involves reading and carefully reviewing written documents for errors of spelling, grammar, syntax, and punctuation. It also involves making sure that the text makes sense and is consistent with the document’s purpose.
Proofreaders are expected to identify and correct errors as they appear in the text.
The pay for proofreaders is typically between $44k and $58k per year.
To make the job easier, I would take the Proofreading Anywhere course to understand what is expected of you.
4. Data Entry Jobs
Data entry clerks are often required to sort, organize, and verify the accuracy of data before entering it into the computer system.
Additionally, this type of job does not require any prior experience and can be learned quickly.
Data entry clerks can usually make an hourly wage, which makes it a great option for those looking for a side income. Furthermore, data entry clerks are often hired for short-term or part-time projects, allowing them to pick and choose their hours.
5. Writer
Typically, the role of a writer is to produce content, such as blog posts, articles, product reviews, press releases, and more, for various companies.
Writers must have a good command of the English language and demonstrate great grammar and spelling in order to be successful. Additionally, writers must have the ability to create content that is search engine optimized and persuasive.
Many people have found the Earn More Writing course helpful to bump start your freelance writing potential.
All in all, freelance writing is a great way to make a living and offers flexible hours, the potential for long-term growth, and higher pay rates.
6. Web Search Evaluator
Search engine evaluators have the important job of ensuring that search engine results are relevant and accurate to the user’s intent.
For example, a user might enter the search query ‘chocolate cupcake recipes’, and the search engine should return relevant results such as recipes. If the search results are irrelevant or inaccurate, the search engine evaluator is tasked with rating them accordingly.
Search engine evaluators typically earn around $20 per hour and can make up to $40k a year if they take the job as full-time professional.
7. Virtual Bookkeeper
A virtual bookkeeper is a professional who can provide bookkeeping services to businesses from remote location.
Most people choose to work for themselves as a bookkeeper with a bookkeeping side gig (or full-time business).
One of the main benefits of working as a virtual bookkeeper is that no college degree or qualification is needed to get started. Generally, bookkeepers charge around $80 an hour or more for their services.
Finally, you can learn more about getting started with Bookkeeper Launch to help you become a freelance bookkeeper.
8. Image Reviewer and Photo Editor
Similar to a video editor, a photo editor’s duties include, but are not limited to, ensuring that images display the desired quality, accuracy, and clarity; checking for visual consistency across all images; editing images to make them look more appealing; and providing feedback on the images.
Additionally, they may be responsible for curating collections of images, creating new content, and managing projects.
For those looking to sell on Shutterstock, this is a great side hustle.
9. Create and Sell Printables on Etsy
With a little creativity and the right software, you can create unique printables that customers can purchase and print out themselves.
This can be a great way for you to make passive income with minimal effort.
In fact, my friends Cody and Julie did so well selling printables; they now teach others how to make a living creating and selling printables.
10. Selling on Amazon (FBA program)
This is a way to make money by reselling products you find online or in brick and mortar stores on Amazon for a higher price.
Amazon will ship the products to your customers, handle customer service, and even provide storage for the products.
With the right amount of work and dedication, you can make quite a bit of money with FBA.
11. Blogger
With blogging, you have the ability to work from anywhere in the world with just a computer and an internet connection.
You can write about whatever topics you are passionate about and be your own boss.
You can also make money blogging through various income streams such as affiliate marketing, paid sponsorships, ads, and more.
12. ESL Instructor
The job of an ESL (English as a second language) instructor is to provide English language instruction, usually via webcam, to those who are not native English speakers.
The benefits of this job are numerous: it allows for flexible hours, can be done from anywhere in the world, and offers an opportunity to make a difference in the lives of learners from all over the world. Additionally, being an ESL instructor allows one to learn about other cultures, stay up to date with language trends, and gain valuable professional experience.
To get the job, you need to have a thorough understanding of the English language and pass any certification tests.
This is a great type of job that pays weekly.
13. Virtual Assistant
A virtual assistant (VA) is a professional who provides administrative and technical support to clients remotely. They help with a variety of tasks like answering emails, data entry, blog management, bookkeeping, editing, proofreading, marketing, research, filing documents, and customer service – to name just a few.
The type of services you offer will depend on your skills, experience, and education.
The biggest benefit of working as a VA is that you can work from home and set your own hours.
And the pay can be quite lucrative, with rates ranging from $25 to $100 an hour.
If you’re interested in becoming a VA, Kayla Sloan offers a free workshop that teaches people how to become Virtual Assistants and makes up to $10,000 a month. Download her Virtual Assistant checklist.
14. Accountant
An accountant is a professional who is responsible for tracking financial records and preparing financial statements for a business or individual. They ensure that their clients’ finances are accurate and in compliance with applicable laws and regulations.
One of the primary benefits of working from home as an accountant is flexibility. You are able to work your own hours and set your own schedule. This allows you to create a better work-life balance and also gives you more time to spend with your family.
15. Freelance Jobs
A freelancer is someone who does work for themselves and not for a company.
This is typically contract-type work.
You can find freelance jobs on sites such as Upwork, Fiverr, or People Per Hour.
The best way to freelance is to know your own skills and how to monetize them.
16. Editor
An editor is a professional who is responsible for reviewing and improving documents, whether that be in print, online, or even on video.
Editing involves ensuring accuracy, flow, grammar, and style. This is a great non phone work from home job because it allows for great flexibility and does not require a college degree.
Most positions are freelance which means that you can work on your own schedule and take on as much work as you can.
17. Social Media Manager
Social Media Managers are in charge of maintaining a client’s presence on a variety of social media sites, such as Facebook, Pinterest, Instagram, Snapchat, YouTube, Twitter, and Google Plus.
They are expected to respond to comments, manage brand partnerships, create posts, photos, and videos, and track analytics to come up with an effective marketing strategy to promote their client’s accounts.
In addition to creating content, Social Media Managers typically monitor and moderate what is posted on the client’s social media accounts. They are usually responsible for ensuring that the content is appropriate and that the rules and regulations of the platform are followed.
The potential salary range for Social Media Managers can vary, but they can typically make $78000 per year.
18. Transcriber
A transcriber’s role is to convert audio recordings into written documents. They listen to audio files and type out what they hear.
Transcribers have the advantage of being able to work from home and can earn up to $21 per hour or more if they start their own business. They also have the potential to increase their wage upon gaining more experience.
Additionally, transcribers do not need to interact with other people, making it an ideal job for those who are more introverted or prefer working alone.
Finally, there are various resources available to help transcribers get started, including free mini-courses and companies that hire experienced and beginner transcribers.
19. Marketing Associate
As a Marketing Associate, you’ll be responsible for a wide variety of tasks, including developing and executing marketing campaigns, conducting market research, creating content, and managing and optimizing paid search, video creation, and other digital marketing efforts.
Additionally, you may be asked to support customer service via live chat, social media, text, and email.
The ideal candidate for this role will have excellent communication skills, be proficient in typing and have excellent spelling and grammar, and be passionate about social media platforms.
20. House sitter
A house sitter is someone who stays in a home while the homeowners are away and provides care for the premises and any pets that the homeowners may have.
The job of a house sitter includes tasks such as watering plants, taking out trash, and performing general maintenance of the property.
House sitters can benefit from the opportunity to experience different places, save money on rent, and have some extra time to explore their surroundings.
Platforms such as TrustedHousesitter.com make finding house-sitting jobs easier than ever before.
21. Online Tutor
The role of an online tutor is to guide students in their studies and help them understand a particular subject or skill virtually, through video chat or online software. Plus you have the opportunity to work with students from different countries.
Online tutoring jobs vary in requirements, but typically a bachelor’s degree or current college enrollment is needed.
They provide instruction and guidance, assist students with assignments, answer questions, and give feedback on their progress. The tutor also has a responsibility to motivate and encourage their students to stay on task and reach their academic goals.
22. Pet-Sitting Jobs
Pet sitting jobs can be a great way to make some extra money from home while spending time with animals (and not people)!
With Rover, you can earn anywhere between $10 and $20 an hour for dog walking, $20-30 for overnight stays, and some people are even making $1000+ a month in metro city areas. As a pet sitter, you have to stay at home with someone else’s pets and they pay you for taking care of their pets.
Rover.com is a great platform to find pet sitting jobs as they offer a wide range of services such as dog walking, pet sitting, and pet care.
23. Personal Stylist
Personal styling is an exciting and relatively new job that offers the opportunity to work from home. The role of a personal stylist is to help clients express their individual style through the selection of clothes, accessories, and other items.
It involves curating a set number of clothing items and accessories based on the client’s fashion profile. This job requires an eye for detail, an innate sense of style, and creativity.
It’s perfect for creative individuals who are passionate about fashion and have an eye for details.
24. Website Tester
Website testers are typically paid to assess the overall user experience on a website and provide feedback on how to improve it. W
You do not need a phone to complete your tasks; they only require a laptop with a webcam and microphone to record your observations.
Website testing is a non-phone work from home job that pays good money to ensure that websites are user-friendly. It is a flexible and straightforward way to make some extra cash.
25. Closed Captioner
A closed captioner is a person who transcribes audio into text for specific use on video.
This is a great job for those who learn and work better visually, as well as those who can type quickly and accurately. This type of work allows for a very flexible work schedule, meaning you can work when you are most productive and there is no need for any phone interactions.
You get the freedom to work on your own schedule and make a decent amount of money doing something that doesn’t require phone conversations.
26. Online Test Scorer
An online test scorer is responsible for scoring assessments such as tests, exams, and essays from students of high school or college. This job requires a certain level of expertise, as the test scorer must be able to interpret and evaluate the quality of the assessments accurately and fairly.
The test scorer must also be able to maintain the confidentiality of the students’ answers and grades and be able to provide feedback that is relevant and constructive.
This job typically requires a bachelor’s degree, and it is often seasonal with part-time hours.
27. Translator
The role of a translator is to take a language and convert it into another language, be it oral, written, or audio.
Translators not only have to be multi-lingual and have a good command of grammar and spelling, but they also need to be able to convey the meaning of the words they are translating accurately. They can work on a variety of projects, from subtitling to full-length books.
There is a wide range of online platforms on offer, so translators can pick the one that best suits their skill set and desired pay rate.
28. Graphic Designer
A Graphic Designer is someone who is skilled in using platforms like Photoshop, Canva, and other software to create visual and graphical designs.
Typically, these designs are used for things like logos and branding materials, websites, social media content, or clothing.
You must have a creative flair, as well as knowledge of graphic design and the required software. In order to be successful, they must have a computer with a good internet connection and the programs necessary to do the job.
29. Medical Coder and Biller
A medical coder and biller are responsible for translating a patient’s symptoms, diagnosis, and medication prescribed by a doctor into codes.
These codes are then entered into a database for the biller to use, who will turn them into a bill to be submitted to the patient’s insurance company.
The average pay scale for medical coders and billers can range from $45k – $65k per year, and they can find many remote positions on job sites like Indeed.com.
30. Instructional Designer
The role of an Instructional Designer is to research, write, design, and create training courses and manuals for a variety of people, such as educators, students, and employees.
Instructional designers need a degree in the subject being written about, or a degree in education, and should enjoy writing and editing. Working from home as an Instructional Designer has many benefits.
Working from home in an Instructional Designer role gives you the freedom to explore new methods and techniques to create the best possible course or manual.
31. Non-Phone Remote Nursing Jobs
With more and more companies offering remote work opportunities, there are many non-phone remote nursing jobs available.
The type of work ranges from utilization review nurses, clinical research associates, and data abstractors all work with data and compliance, ensuring procedures are being followed correctly and that they are medically necessary.
Companies such as Cigna, CVS, Flatiron, PPD, and UnitedHealth Group are just some of the many hiring companies offering these types of remote nursing positions.
32. Fraud Investigator
Fraud investigators are in demand in many industries, including financial institutions, e-commerce stores, healthcare companies, and insurance companies. As a fraud investigator, you’ll be tasked with looking for fraud, abuse, and irregularities in financial transactions.
If you have an eye for detail and like doing research, this could be a great non-phone job opportunity for you.
Companies usually require customer service experience or a criminal justice degree and/or a CAMS certification (Certified Anti-Money Laundering Specialist). It’s a great way to make a good income without having to pick up the phone.
33. Community Moderator
A community moderator is a person who oversees online forums, groups, and social media accounts to ensure that rules and regulations are being followed, questions are being answered, and spam and junk content are being removed.
It is an online opportunity where moderators can be employed to manage and moderate comments on various social media sites and chat rooms.
The benefits of working as a community moderator include the opportunity to work from home and a flexible schedule. Additionally, moderators will gain experience in digital engagement, such as moderating forums, chatting with customers, managing communities, and buzzing on social media.
34. Netflix Tagger
The Netflix Tagger is a real job opportunity that allows individuals to work from home watching movies and tagging them with the appropriate keywords, genres, and descriptions.
This job is ideal for those who have a passion for movies and experience or education in radio, television, and film.
Working as a Netflix Tagger (also known as Metadata Analyst) is not only rewarding but it is also beneficial for those who want to work remotely without having to make phone calls or talk to customers.
35. Provider Enrollment Specialist
A provider enrollment specialist is a non-phone work-from-home job that involves researching, reviewing, analyzing, and managing provider enrollment applications to ensure they are in compliance with guidelines.
Provider enrollment specialists usually require prior experience in medical terminology, appeals, claims, or customer service, and may also require an associate’s or bachelor’s degree.
36. Survey Taker
By completing surveys, survey takers are able to share their opinion and help inform companies and brands on how to provide better products and services that meet customer needs and expectations.
Benefits of working as a survey taker from home include the flexibility of being able to work at your own pace and the ability to earn extra income while working whenever and wherever you choose.
Additionally, survey takers can take advantage of cash, rewards, and sweepstakes entries as compensation for their time.
It is not a way to get rich, but it is a great way to make extra money on the side.
Here are the top legit survey platforms:
37. Chat and Email Support
Chat and email support workers provide customer support and assistance via email and online chat. They are responsible for responding to customer inquiries and resolving customer issues.
This customer service-oriented position does not require the use of a phone.
Chat and email support workers must be able to answer customer questions and respond to their inquiries quickly and accurately. They must also be able to use active listening skills and type quickly.
Companies often provide chat and email support workers with guidelines for providing customer support, and they may also require workers to understand their products in order to provide effective customer service.
Are non phone work from home jobs legitimate?
The answer is yes! In fact, there is a growing number of non-phone work from home jobs for those who don’t want to be on the phone all day.
Whether you’re a mom with kids and pets running around, or if you find customer service work draining, there are good options out there for you to make money from home without being on the phone.
In conclusion, non-phone work from home jobs are legitimate and provide a great opportunity to make money from home without being on the phone.
FAQs
Ultimately, the skills needed to succeed in non phone work from home jobs will depend on the type of job you are pursuing.
More than likely, you’ll need excellent typing skills, excellent spelling and grammar, and the ability to troubleshoot and solve issues, among other skills.
However, many of the jobs mentioned above pay between $15 an hour to $50 an hour.
Some companies may also offer a base salary plus bonuses or incentives.
Fortunately, there are plenty of non-phone jobs available for remote workers that don’t require a diploma.
However, you may have to take some online courses to excel faster in your field.
Many on this list are great low stress jobs that pay well without a degree.
Yes, there are software or tools needed for non-phone work from home jobs, depending on the type of job.
More than likely, you will need a computer and a reliable internet service.
Are you Excited to Work from Home Job No Phone?
Working from home has become increasingly popular over the years, as it offers flexibility, comfort, and the ability to work from anywhere.
All of these jobs that offer the best comfort and increased focus is working from home on the laptop. The advantages of this job include flexibility in schedules, the ability to remain in control of your own workspace, and enhanced focus as there is less noise and distraction.
With the number of remote job leads that are available, you are sure to find the perfect work from home job that suits your needs.
In addition, working from home gives you the freedom to work in a location of your choice. You no longer have to commute to an office or be bound by office hours.
Also, you can take breaks when you need them and work in a comfortable environment.
Which career choice are you going to look into?
Know someone else that needs this, too? Then, please share!!
California mortgage tech firm Blend Labs is at risk of getting delisted from the New York Stock Exchange (NYSE) as a consequence of the company’s stock price slumping below $1 for more than a month.
Blend announced on Thursday that it received notice on April 28 from the NYSE that it was not in compliance with the stock exchange’s bylaws, which state that a company could be de-listed if its common stock traded below $1.00 for more than 30 trading days.
Blend has a six-month cure period to comply with the minimum share price requirements. As of market close on Thursday, it was trading at $0.58 a share.
Blend has a chance of meeting compliance if the stock has a closing price of at least $1.00 on the last trading day of calendar month during the six-month cure period, and an average closing share price of at least $1 over the 30 trading-day period ending on the last trading day of that month.
A spokesperson for the company said they are working with the NYSE and are “confident” in their ability to comply with the requirements.
Blend plans to notify NYSE of its intent to cure the deficiency, which may include initiating a reverse stock split, subject to approval by the board of directors and stockholders of the company, according to its 8-K filings.
The spokesperson said that Blend will share a formal update on how it plans to comply with the minimum share price requirements during its Q1 earnings call, which is scheduled for May 9.
“We are focused, we have a sense of urgency, and we are making meaningful progress as we execute against our strategy (…) We will share details about our business momentum and progress on our path to profitability then,” the spokesperson added.
The California mortgage tech firm — now at risk of getting delisted from the NYSE — was off to a promising start when it went public in July 2021.
Blend sold 20 million shares of Class A stock at $19 apiece, raising $360 million. With shares closing at $20.90, Blend had a valuation of around $4.6 billion.
Blend brought on hundreds of clients — including Wells Fargo, First Republic Bank, Mr. Cooper and U.S. Bank. — that ultimately powered about a quarter of mortgages originated during the pandemic years.
To survive the cyclical mortgage business, Blend has been striving to transform its mortgage business-dependent business model to a platform company.
Since 2019, the mortgage tech firm has been expanding into the consumer lending space, but with the Federal Reserve‘s unprecedented series of interest rate hikes, Blend wasn’t immune to financial losses.
In 2022, the firm posted a staggering loss of $796 million and operating expenses in 2022 jumped to $835.8 million from $313.2 million in 2021.
Last Updated on February 25, 2022 by Mark Ferguson
Finding a great rental property can be tough. In many markets, prices are increasing and being able to make money on a single-family house or multifamily building is difficult. One option is to buy the cheapest homes you can in your area and make them a rental. You can also buy a townhouse or condo and turn into a rental property since they are typically less expensive than a single-family detached home.
I think a townhouse or condo can be great investments, but you must look at the numbers closely. There are many costs associated with condos like HOA fees. The appreciation also may not be as much on condos and there are some very scary issues that can cause a great condo or townhouse investment to become a nightmare.
Why are condos and townhouses so much cheaper than houses?
Before I get into the pros and cons of condo and townhouse investments, I want to be clear on what a townhouse or condo is. A condo is a unit within a large complex of apartments or other condos. There may be units beside you, above or below you. You rarely have any yard except a shared space with other units.
A townhouse might have a small yard and may have neighbors beside the unit, but not above or below. Townhouses are typically worth more than condos because they have less connected neighbors and some land.
Both condos and townhouses are worth less than a single-family home that is otherwise similar.
How does an HOA work on a townhouse or condo?
Almost every townhouse and condo will have an HOA. The HOA takes care of the shared land in the complex and most HOAs take care of the exterior maintenance and landscaping. Many HOAs also pay for the water on a condo or townhouse and they may provide common amenities like a swimming pool, clubhouse or tennis courts. Some single-family neighborhoods have detached homes that are in an HOA as well. The HOA fees are usually much higher on a condo or townhouse because the HOA takes care of many more things. Here is a list of many things an HOA takes care of on a single-family detached home, patio home, and a condo or townhouse.
——————-Condo/Townhouse Patio Home Single-Family
Common Amen. Yes Yes Yes
Landscaping Yes Yes No
Water Yes No No
Exterior maintenance Yes No No
Exterior Insurance Yes No No
Clubhouse/pool Yes Maybe Maybe
Trash/snow removal Yes Maybe No
If you are wondering what a patio home is, that is usually a single-family detached home that has an HOA that maintains the lawn. The condo and townhouses have much more involved HOAs, which makes them much more expensive.
In my area in Northern Colorado, I see HOA fees for most single-family detached homes $400 or less a year (if they have an HOA). HOAs on condos or townhouses can are usually at least $100 a month and in some cases $400 a month. HOA fees can be even higher in larger cities with complexes that have security and many more amenities. Only one of my rental properties has an HOA and it is $300 a year.
Is it a bad thing to have an HOA on a rental property?
I have no problem with having an HOA on one of my rentals. The HOA takes care of the common amenities in the neighborhood and I have never had a problem with them. The only other job of this HOA is to make sure all the homes in the neighborhood are in compliance with the rules and regulations of the HOA. Many HOAs don’t allow work trucks to be parked outside, or excessive junk to be stored in the yard. For many people, this is a good thing and for others a bad thing. As a landlord, I think of it as another set of eyes on the property and I think it is a good thing to know if the tenants have junk everywhere or are not mowing the yard.
I don’t think having a small HOA with few responsibilities is a bad thing. A larger HOA will provide many benefits as well. Even though a larger HOA will be more expensive, it will lower many costs for a landlord. The HOA will pay for exterior insurance and maintenance, which will reduce the landlord’s expenses. The HOA will handle yard maintenance and snow removal, which can lower the landlord’s expenses as well. In my case, I invest in single-family homes and I have the tenants take care of the lawn and pay all utilities themselves so that does not save me much money.
HOA special assessments
The problem with a large HOA is they can create special assessments if they need more money for any major repairs or financial problems. I know of a couple of landlords who had their HOA fees increase greatly in a one-year span because the HOA had to repaint the exterior of the entire complex. The HOA fees went from just over $100 a month to $200 a month for every condo in the complex. Another HOA imposed a $30,000 special assessment on every single condo in a complex to pay for improvements. This particular landlord was planning on flipping the condo and all his profit disappeared with this assessment.
The HOA cannot impose a special assessment or raise the HOA fees without agreement from the HOA members, but in many cases, the members don’t show up to HOA meetings to oppose the changes. If you are buying a condo or a townhouse that has a fixed HOA fee, that does not mean it cannot be raised or a special assessment is levied upon the property.
Will the HOA allow rental properties?
Another problem that can come up with HOAs and rental properties is that some HOAs may not allow rental properties! My office recently had a home listed that was in an HOA and the HOA decided they would no longer allow rentals. The property was used as a rental property so the owners decided to sell it. Then the tenants decided to stop paying due to covid and it was a nightmare for the owners.
Be aware that HOAs can decide to ban rentals although it is rare.
Will condos or townhouses appreciate as much as detached homes?
Another factor to consider when buying a condo or a townhouse is the value of the property. Condos and townhouses are cheaper than detached homes because they are cheaper to build and demand is higher for single-family homes. You also own more land and have lower HOA fees with a single-family house. When you have an HOA fee that also reduces how much a borrower can qualify for when they get a loan. Usually, the condos and townhouses with the highest HOA fees will be worth less than similar condos or townhouses with lower HOA fees, because more buyers can afford them. A $100/month HOA fee could reduce the amount a buyer can qualify for by as much as $20,000.
I don’t invest for appreciation, I invest for cash flow when I buy rental properties. That does not mean I do not consider possible appreciation or depreciation on the properties I buy. There are some people who prefer a condo to a detached home, but most people want a detached house. In my area condos are the first to start losing value in a down market and the last to increase in value in an appreciating market. While condos and townhouses can appreciate and often do, single-family detached homes tend to appreciate more. It is the land that is causing the appreciation and detached homes have much more valuable land.
How can FHA rules affect condo prices?
FHA will loan on condos and townhouses, but they have very strict rules. FHA will not allow a buyer to use an FHA loan to purchase a condo in a complex if there are too many investors in that complex. If there are more than 50 percent investors in a particular complex FHA won’t lend to anyone in that complex. FHA is a very popular loan and it can greatly decrease values in a complex if the units cannot be sold using FHA. Here are some more requirements for FHA loans being used on condos. Even though conventional loans do not have to abide by FHA rules, some banks will also have guidelines similar to FHA to lend on a condo.
Is it smart to buy a condo or townhouse for a rental property?
As you can see there are many factors you must consider when investing in a condo or a townhouse. The number one factor should be cash flow and how much money you will make. You have to remember to factor in the HOA fees and the possibility that they may increase in the future. If you buy a condo in a complex that is older and will need work soon, you may see a huge increase in HOA fees or a special assessment. If many investors decide to buy units in a complex it could greatly lower the value of every unit due to FHA rules and don’t expect as much appreciation.
I think you can make money with condos, but given similar returns between a condo or townhouse and a single-family detached home, I will take the detached home every time.
My book, Build a Rental Property Empire, goes over my personal rental property strategy in depth. It covers how to find deals, finance rentals, manage them, and much more! It is available as a paperback and ebook on Amazon or as an audiobook on Audible.
Congratulations to Master Sergeant (Retired) Gerald D. Hansen, the winner of The MilitaryVALoan.com Miltary Hero Award!
Gerald Hansen was nominated for his outstanding service to his community and his country. He spent twenty-one years in the United States Air Force with assignments to Holloman Air Force Base, New Mexico, Yokota Air Base, Japan, MacDill Air Force Base, Tampa, FL and Zweibrucken Air Force Base, West Germany. He retired in May 1990.
His awards and decorations include the Meritorious Service Medal with two oak leaf clusters and the Air Force Commendation Medal. He was promoted to Master Sergeant through STEPS (Stripes for Exceptional Performers) in August of 1983. He was also named as the Tampa Military Citizen of the Year for 1986. Mr. Hansen was named the Management Award recipient in 1995 from the International Builders Exchange Executives (IBEE), Tampa Bay Lightning Community Hero in 2017, Ring of Honor with the Buffalo Soldiers (The Woods & Wanton Chapter) in 2017 and was named the Bay Area Brotherhood Humanitarian Award winner 2019.
Hansen is the volunteer Executive Director for Paint Your Heart Out Tampa (PYHOT), an all-volunteer, nonprofit organization that benefits low-income and elderly citizens of Tampa by improving the exterior of their homes. Each year, Hansen freely gives more than 1,250 hours of time to the organization. Hansen has also successfully raised more than $14,000 for the Greater Tampa Bay Walk to Defeat ALS, was involved in three annual cleanups of Bayshore Boulevard on MacDill AFB, served as the Chairperson of the Preschool Education Board, and helped build playgrounds on MacDill AFB and in Clearwater.
“Jerry is the most unselfish person I have ever met,” his nominator wrote. “He has taught me more about generosity than anyone. The majority of Jerry’s time is spent behind the wheel of his car, picking up, dropping off supplies or materials needed from one organization to another. He is often delivering items to groups working with homeless or food banks.”
Congratulations to Gerald Hansen on being named The MilitaryVALoan.com Military Hero Award Winner!
MilitaryVALoan.com Military Hero Sweepstakes Official Rules
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Eligibility: The TravelNursing.org Sweepstakes (the “Promotion”) is open only to registered nurses who are legal residents of the 50 United States and the District of Columbia (collectively the “Participating States”) who are 21 years of age or older (and located in the one of the Participating States at the time of entry. TravelNursing.org (“Sponsor”) and their respective parents, subsidiaries and affiliated companies, retailers, sales representatives, dealers, distributors, licensees and the advertising, fulfillment, judging and promotion agencies involved in the development and administration of this Promotion and each of their respective officers, directors, employees and agents (collectively, “Promotion Parties”), and their immediate family members and persons living in the same households of each (whether related or not) are not eligible. Void outside the Participating States and where prohibited by law.
Promotion Period: The Promotion begins at 12:00 a.m. Pacific Time (“PT”) on May 6, 2019 and ends at 11:59 p.m. PT on May 31, 2019 (the “Promotion Period”).
How to Enter: During the Promotion Period, go to https://www.militaryvaloan.com/blog/the-militaryvaloan-com-military-hero-award/ and locate the official entry form. Follow the on-screen directions, complete all required registration fields and submit to enter (“Online Entry”). Entrants must complete all required information. LIMIT ONE (1) ONLINE ENTRY PER PERSON/EMAIL ADDRESS. Nominations MUST be submitted online. Mail-in nominations will not be accepted. Nominations must be submitted on behalf of another person. Self-nominations will not be accepted. Nominations must be submitted in English only. Nominations may only be submitted in the name of a single person; group nominations are not acceptable. False or deceptive nominations or acts may render a nominee ineligible. All nominations become the property of MilitaryVALoan.com and will not be returned. MilitaryVALoan.com reserves the right to edit the nomination as it sees fit for use in publication or promotion. By submitting a nomination you agree to grant Sponsors the right without obligation, unless prohibited by law, to use the contents of your nomination, your name, voice, picture and likeness, without compensation, for the purpose of advertising and publicizing all matters related to the Awards Program and/or the Sponsors in any medium, throughout the world in perpetuity.
Grand Prize Drawing: On or about June 7, 2019, the Sponsor Review Panel (the “Panel”) will select one winning entry (the “Winner.”) It is the Panel’s s sole discretion to determine the winner.
Prizes, Approximate Retail Value (“ARV”) & Odds: One (1) Grand Prize: The SEVENTY2™ Survival System. Total ARV $349.99. No substitution, cash redemption or transfer of prizes is permitted except at Sponsor’s sole discretion or as provided herein. If a prize, or any portion thereof, cannot be awarded for any reason, Sponsor reserves the right to substitute a prize of equal or greater value. All federal, state and local taxes, and all other costs associated with acceptance or use of the prize(s), are the sole responsibility of the winner(s). Arrangements for delivery of prize(s) will be made after winner validation. LIMIT ONE (1) PRIZE PER PERSON/EMAIL ADDRESS/HOUSEHOLD. Odds of winning a prize depend on the number of entries received. At the Sponsor’s discretion, unclaimed prizes may not be awarded.
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Winners’ List: To view the winners’ list for this Promotion, please visit https://www.militaryvaloan.com/blog/the-militaryvaloan-com-military-hero-award/. The winners’ list will be available after winner validation has been completed.
Sponsor: Full Beaker, Inc., Bellevue, Washington 98004.