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Although you’re allowed to sell your own home, doing so is a lot of work. Before you move forward, take time to consider the pros and cons of handling things on your own.

If you’re thinking about putting your house on the market, you may be wondering whether you can sell your own home. Yes, you can, but don’t put up a For Sale sign just yet. Although you’re allowed to sell your own home, doing so is a lot of work. Before you move forward, take time to consider the pros and cons of handling things on your own.

Statistics on FSBO Homes

For sale by owner, better known as FSBO, tells buyers you’re not using a real estate agent or a broker. According to the National Association of REALTORS®, FSBO listings accounted for 10% of all home sales in 2021.

Nearly 30% of owners used word-of-mouth marketing via friends, family members, and neighbors to market their listings. Owners also used yard signs, third-party real estate aggregators, social networking sites, and other FSBO marketing methods to find buyers.

Why Sell Your Own Home?

Many people ask “Can I sell my own home?” because real estate agents receive a commission on every sale they make. The average commission is 6%, with the listing agent receiving slightly more than the buyer’s agent. If your home sells for $300,000, that’s $18,000 in commissions at the average rate.

Then, assuming the listing agent gets 3.5% and the buyer’s agent gets 2.5%, selling your own home would save you $10,500. You could use that money to buy new furniture, cover some of your closing costs, invest in the stock market, or take a vacation.

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Potential Pitfalls of Selling Your Own Home

If you decide to sell your own home, you’ll have to do all the work that a real estate agent would normally do. Some of the most important tasks include:

  • Setting a sale price
  • Preparing your home for walk-throughs and open houses
  • Advertising the property
  • Following all relevant real estate laws
  • Meeting with potential buyers and their agents

Learning how to do these things is time-consuming, and there’s also the risk you’ll make a serious mistake. For example, if you price your home based on emotions instead of market data, you may have trouble attracting potential buyers.

When you sell your own home, you also lose the opportunity to benefit from an agent’s extensive network of contacts. Experienced agents maintain relationships with plumbers, landscapers, home staging professionals, and other people who can help you get your home ready for the market. If you don’t have these relationships, you may have to wait weeks or even months before a home service provider can add you to their busy schedule.

One of the biggest potential drawbacks to selling your own home is that you may not get as much money as an agent would. The National Association of REALTORS reports that FSBO listings sold for an average of $225,000 in 2021. In contrast, agent-listed homes sold for an average of $330,000.

Tips for Selling Your Home Without an Agent

If you decide to sell your own home, follow these tips to maximize the sale price and reduce the amount of time it takes to find a buyer.

1. Choose the Right Sale Price

When setting a price for your home, you have to think strategically. If it’s priced too high, you’ll have trouble selling. If it’s priced too low, you’ll lose out on potential profit. The price has to be just right to attract a buyer without leaving money on the table. To find the right price, consider these factors.

Recent Sales

A comparative market analysis lists recent sales in your neighborhood, giving you valuable information about local prices. Normally, a real estate agent would provide a CMA report for you, but it’s possible to create your own. To get started, use public records or third-party listing websites to identify sold homes that are approximately the same size and age as your home.

Once you have the initial list, narrow it down by looking for homes that have features similar to yours. For example, if your home has four bedrooms and two bathrooms, you’ll want to include other four-bedroom homes in your analysis.

The market changes quickly, so limit your search to homes sold in the last three months. Once you have a workable list, note the sale price of each listing. If you’re not comfortable creating your own CMA report, consider getting a professional home appraisal.

Location

The location of your home has a big impact on the sale price. Many buyers are willing to pay a premium to move to an excellent school district or reduce the amount of time it takes to get to restaurants, salons, office buildings, and entertainment venues.

Location refers not just to what city you live in but also where your home is situated. If it’s near an airport or a busy street, you may not be able to get as much as you would if it was tucked away at the end of a quiet cul-de-sac.

Condition of the Home

The better your home’s condition, the more money you can get for it. Think top-of-the line appliances, fresh paint, and new flooring. If your home needs repairs or the appliances and flooring are a little outdated, you may have to set a lower price to attract potential buyers.

Market Conditions

Supply and demand have a big impact on home prices in your area. In a seller’s market, the demand for homes outpaces the supply, driving prices higher. Buyers may even get into bidding wars over the most desirable properties. In a buyer’s market, the supply of homes outweighs the demand, driving prices down.

2. Use Multiple Advertising Methods

It would be great if all you had to do was put your listing on social media, but it takes a little more work to sell a home. You may want to use the following marketing methods:

  • Newspaper advertisements
  • Social media posts
  • Yard signs
  • Third-party listing websites
  • Flyers at local businesses
  • Virtual home tours

3. Plan Your Open House Carefully

An open house gives potential buyers a chance to walk through your home and see if it looks just as good in person as it does in photos. Here are a few tips to help you plan a successful open house event:

  • Schedule it on a weekend: Many people work during the week, so holding an open house on a Wednesday at 11 a.m. isn’t the best way to attract eager buyers. If possible, schedule your open house for a Sunday afternoon.
  • Advertise: Yard signs are helpful, but you should use several advertising methods to make more people aware of your event. Try advertising on a third-party website or posting on social media
  • Clean thoroughly: You don’t want potential buyers focusing on dust bunnies, so give your home a thorough cleaning the day before your open house. Before people arrive, straighten your throw pillows, take out the garbage, and do some last-minute tidying.
  • Put away personal items: Potential buyers should be able to imagine themselves living in your home. They may have a tough time doing that if you have family photos and other mementos on display. To make your home more appealing, put away personal items before the open house begins.
  • Make arrangements for your pets: If possible, take your pets to a family member’s house before your event begins. Some buyers aren’t comfortable with animals, and you’ll have an easier time focusing if you don’t have to worry that one of your pets is going to escape.

4. Consult an Attorney

If you sell your home without an agent, you’re still responsible for following all relevant laws and regulations in your area. To ensure you don’t make a costly mistake, consult an attorney beforehand. A licensed attorney can advise you of your rights and educate you about the potential pitfalls involved in selling real estate.

It’s possible to sell your home without a real estate agent, but it takes a lot of time and effort. If you make a mistake, you can easily lose thousands of dollars in profit, making it critical to do in-depth research before you begin the process. You may also want to research other things before selling or buying a home, such as the state of your finances, your current credit health, or your loan options. Credit.com can help you work to understand these things better, so consider signing up for your free Credit Report Card today

Source: credit.com

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Republic Day, observed on January 26, is commemorated with parades and celebrations honouring India’s diverse cultural heritage. It is well worth seeing the magnificent Republic Day parade, which is customarily staged on the main Rajpath avenue and includes the Army, Navy, and Armed Forces in their full splendour. The parade’s major attractions include traditional dance troupes and floats from every state, along with a sky display by helicopters. As we approach the joyous occasion of Republic Day, let’s channel our love for the nation into the very fabric of our homes. Elevate your living space with a fusion of cultural aesthetics, vibrant furniture, and cosy textiles. (Also read: Republic Day 2024: 10 creative and easy-to-make drawing ideas for kids to celebrate the nation’s pride )

Republic Day 2024: 5 decor ideas to infuse patriotic vibes into your home(Pinterest)

Creative home decor ideas for Republic Day

1. Tricolour cushions

On Republic Day, everything takes on the colours of the Indian national flag. So why leave your house? While it’s rare to redecorate the whole room every year, you can show your love for the national colours by bringing out cushions in white, green and saffron. Use white cushions, green plants and saffron bed linen in your master bedroom to create a festive and patriotic atmosphere.

Stay tuned for all the latest updates on Ram Mandir! Click here

2. Floral decor

Who doesn’t love flowers? With their enchanting scent and vibrant colours, they can instantly create a festive mood. For a tricolour look, use marigolds, jasmine and green foliage and finish the arrangement with a flag. Whether you make a floral rangoli or create a tricolour flag with flowers, your home is sure to be ready for R-Day.

3. Paper flower decorations

If you enjoy crafts, try making paper roses with coloured crepe paper, glue and wire. Use these paper flowers to decorate your home. You can make a string of flowers to hang in your window, or use them as a bouquet in a vase. Cut out flower shapes from coloured cards using a template. Use your imagination and let your inner child experiment. You can also make cut-outs in the shape of hearts, stars or tiny dolls. Use these beautiful shapes to make garlands, posters and banners.

4. Tri-colour balloons

Having a Republic Day party at your house or place of business? Make orange, white, and green helium balloons the focal point of your arrangement! Create a cheerful environment by arranging saffron, white and green balloons to turn your room into a visual symphony. Decorate corners, walls and ceilings with balloon clusters and garlands that symbolise the Indian tricolour. Use patriotic embellishments and accents reminiscent of flags to reinforce the theme.

5. LED lights

Decorate your space with tricolour LED string lights to capture the essence of the Indian flag and create a vibrant aura of saffron, white and green. Use these energy-efficient lights to accent windows, doors and other focal points to create a sense of patriotism. Add a touch of style with LED light patterns inspired by national emblems or the Ashoka Chakra. Let the LED lights flash brightly at sunset to represent India’s unity, diversity and vibrant spirit on this memorable day.

Source: hindustantimes.com

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Outfitting a new place with pictures and paintings can get expensive, but nowadays, there are plenty of cheap wall art options for your apartment that are inexpensive yet chic.

Once you’ve found the perfect apartment to rent, signed the lease and moved in, the fun part of decorating your new home can begin. If you’re wondering where to buy art for an apartment, we’ve put together a list of 25 places to find cheap wall art online. Browse these galleries or peruse in person and find cheap wall art for your apartment that’ll give it personality and color.

Where to buy art for your apartment

One day, you may be able to afford an original painting by your favorite artist, but until then, there are lots of places to find cheap wall art that’ll spice up your apartment without breaking the bank. Here are some places to consider when looking for art for your apartment.

1. Etsy

Etsy is an online marketplace where vendors can sell their arts, crafts and vintage supplies directly to buyers. While you’ll have to search and filter through lots of options, Etsy has a huge collection of art available and is a great place to browse when looking for cheap wall art.

2. Thrift shops

Your local thrift shop is a great place to start when looking for art for apartments. Because of the nature of thrift shops where products are constantly being donated, each time you go to the local thrift shop, you’ll find different art available for purchase at an inexpensive price point. Thrift shops will offer a wide range of art genres and you’ll never know what you’re going to find when you walk in. This makes it a fun place to check out frequently and see what you’ll stumble upon

3. Yard and estate sales

Like thrift shops, local yard and estate sales are great places to go and browse for cheap wall art. You don’t know what you’re going to find, but it is a fun surprise when you find something unexpected that you love.

4. Antique stores

Looking for something vintage and antique to decorate your apartment with? Antique stores can offer one-of-a-kind pieces of art that’ll make your apartment stand out from other homes. Antique art hunting requires patience, but when you find a fabulous piece of art, the hunt is worth it.

5. Society 6

Society 6 is a website for independent artists to showcase their work. Here, you’ll find a variety of art options — from paper prints to framed art to tapestries — to buy and decorate your apartment with.

6. Target

Who doesn’t love going on a Target run? Whether you’re looking for cheap wall art online or looking to wander the aisles, Target offers a variety of art that’ll work when decorating anything from a nursery to the living room in your apartment.

7. Bed Bath and Beyond

Bed Bath and Beyond is another big-box store that offers a little bit of everything, including cheap wall art. Here you can purchase framed art or canvas prints that’ll look high-quality hanging in your home but won’t cost the same as a gallery piece would.

8. Art.com

Art.com is a great place to start when you’re looking for art for your apartment. This website offers thousands of pieces — from classics artists like Van Gogh and Picasso to unknown artists selling flowers or signs — Art.com is a great place to browse as you’ll find almost anything your heart desires.

9. Rifle Paper Co.

Rifle Paper Co. is a brand that features whimsical designs and sweet florals on a variety of products. From paper prints to licensed products, check out Rifle Paper Co. offers a nice selection of art to hang in your apartment.

10. Wayfair

Wayfair is where to look when you’re searching for anything from furniture to art to match. If you don’t know what style of art you like, Wayfair is a great place to start because you can match it to your furniture style.

11. Artfinder.com

Do you like to support local artists from around the world? If so, Artfinder.com is a great place to find cheap wall art online. You can find styles that you like and feel good about supporting local artists at the same time. Also, lots of times you’ll find art on sale, which is always a perk.

12. Minted.com

Minted.com offers limited edition prints, meaning the prints won’t always be available for purchase. If you like unique art at a stellar price point, check out Minted.com when browsing for cheap wall art online.

13. Overstock

If you’re in the mood to browse online at endless options, Overstock.com is the place for you. This online gallery offers thousands of options and you’re bound to find a piece of art (or two) that are great for your new apartment.

14. Christmas Tree Shops

Christmas Tree Shops offers so much more than holiday art. If you’re looking for canvas art that’ll look upscale and elegant in your home, this is a great website or store to check out.

15. Circle Graphics

Circle Graphics is a digital printing company and art vendor that can help you decorate your home with art or photos. Looking for art? Great. Looking to print your own photos on canvas? You can do that, too!

16. Home Goods

Home Goods is another place to browse online and in-store to find both cheap wall art and decorative elements for your apartment.

17. Great Big Canvas

Great Big Canvas is another online art gallery that allows you to search by subject, color, size or room. This is a great way to filter your art options and find the perfect piece for every wall in your apartment.

18. Abstract Art Gallery

If you want an original piece of art but don’t want to spend thousands of dollars, Abstract Art Gallery is a great place to find abstract-style art for under $500. Check out this site if you’re looking for an original piece for your apartment.

19. Paper Source

Paper Source is a boutique paper store that sells print art and fine paper that can easily be styled into wall art. Find a piece of paper or pattern that you love, buy a frame to match and voila, you’ve got yourself a cheap piece of wall art. This is a great option because you can easily swap the art out seasonally and have new art regularly.

20. Urban Outfitters

Looking for something a little more hipster? Check out Urban Outfitters art and decor section and you’ll find a wide selection of posters, prints and frames to decorate your apartment with.

21. iCanvas

iCanvas offers people a large selection of options to find cheap wall art online. You can purchase prints that feature iconic movie and TV scenes, abstract art or classics.

22. Uprise Art

If you’re the type of person who wants to spend money on one beautiful piece of art that is a statement piece, Uprise Art is a great source to check out. With art for under $800, you can get a wonderful piece of art that’ll last you forever.

23. Vertical Gallery

Vertical Gallery is a digital art gallery where people can browse and see a variety of artists month over month. This is a fun way to purchase cheap wall art because the collections change and provide you with new options.

24. Big Lots

Big Lots offers art and home decor for inexpensive prices. This is a great place to start looking for art if you aren’t sure about your style and don’t want to invest in an expensive piece yet. You can purchase a few pieces of art, see what you like, and then commit to a more expensive piece down the road.

25. Dollar Tree

Last but not least is Dollar Tree. If you’re looking for cheap wall art, try Dollar Tree. You can get prints for literally one dollar and outfit the entire apartment wall-to-wall if you want.

Decorate your apartment with cheap wall art

Whether you’re looking for one statement piece of art or multiple pieces you can swap out seasonally, there are plenty of places to find cheap wall art. These 25 places are a great place to start when looking for places to buy art for your apartment.

Sage Singleton is a freelance writer with a passion for literature and words. She enjoys writing articles that will inspire, educate and influence readers. She loves that words have the power to create change and make a positive impact in the world. Some of her work has been featured on LendingTree, Venture Beat, Architectural Digest, Porch.com and Homes.com. In her free time, she loves traveling, reading and learning French.

Source: rent.com

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In recent years, the real estate landscape has undergone a profound transformation, marked by the popularity of build-to-rent homes. This innovative housing model, conceived for rental purposes, has emerged as a trend that not only caught the eye of industry stakeholders but has also redefined the expectations of both landlords and tenants.

In this deep dive, we will unravel the foundation of build-to-rent homes, comb through its growth path from its inception, evaluate its current status and think about the potentially far-reaching impact it may exert on the rental market.

Understanding build-to-rent homes

Build-to-rent homes represent a departure from conventional real estate development, as they are residential properties designed and constructed with the sole purpose of being rented out rather than sold. These purpose-built developments often manifest as part of larger rental communities, strategically incorporating an array of amenities and services to elevate the overall living experience for tenants.

What characterizes build-to-rent homes?

The terms “build to rent,” “built to rent,” “BFR” and “B2R” are interchangeable, all denoting properties constructed explicitly for long-term rentals. Rather than being purchased from other owners, these homes are constructed by owners with the specific intent of catering to tenants.

These properties can be owned by individuals or managed by companies, particularly within build-to-rent communities. The variety of build-to-rent homes includes single-family dwellings on standard-sized lots, small lot homes with closer proximity, duplexes featuring two attached units, triplexes with three attached units and row homes and a series of side-by-side houses sharing a common wall.

The origins of the trend

The roots of the build-to-rent trend delve into the need to adapt to the changing dynamics of the housing market. Factors such as urbanization, a shifting preference for flexibility among millennials and young professionals and a heightened desire for a convenient and hassle-free lifestyle contributed to the initial emergence of this trend. Its early development stages can be traced back to the early 2010s, witnessing a significant surge in build-to-rent developments that were crafted in response to the needs of the housing market.

The evolution of build-to-rent

The evolution of build-to-rent homes is intertwined with the broader socioeconomic shifts shaping our cities and communities. As urbanization accelerated, there was a demand for housing solutions that catered to the dynamic lifestyles of individuals seeking convenience, flexibility and a sense of community. The traditional model of homeownership faced challenges in meeting these evolving needs, paving the way for the rise of build-to-rent homes.

These purpose-built developments were conceived as more than just housing units; they aimed to create entire communities tailored to the modern renter’s lifestyle. Developers, typically a property management company, envisioned amenities like those of apartment buildings like fitness centers, swimming pools, communal spaces, co-working areas and on-site services to foster a sense of belonging and convenience within these rental communities. The objective was not merely to provide shelter but to curate an enhanced living experience that rivaled traditional single-family rentals.

Current status and popularity

As we cross the threshold from 2023 into 2024, the build-to-rent trend continues to gain momentum, asserting itself as a prominent player in the real estate domain. Investors and developers, discerning the potential for stable returns in the rental sector, have propelled a surge in construction projects exclusively dedicated to build-to-rent properties. The demand for such homes spans a diverse demographic spectrum, encompassing young professionals, families and retirees, all of whom are drawn to the benefits that build-to-rent communities offer.

The surge in popularity is not only a result of demographic shifts but also indicative of changing attitudes towards homeownership. The younger generations, in particular, are increasingly valuing flexibility and experience over the long-term commitment of owning a home. The advantages of build-to-rent properties, such as communal living, shared amenities and hassle-free maintenance, align seamlessly with these changing preferences.

Impact on landlords

Build-to-rent homes have ushered a shift for landlords, presenting a host of advantages that extend beyond the traditional rental model. One of the most significant benefits is the higher renewal rate. Tenants, appreciating the convenience and plethora of amenities provided in these purpose-built communities, are more inclined to renew their leases. This not only ensures a stable income stream for landlords but also fosters a sense of community and stability within these rental developments.

The streamlined management of build-to-rent properties is another boon for landlords. Centralized management, often facilitated by professional property management companies, allows for more efficient operations. From maintenance and security to community events and amenities, the integrated approach reduces the burden on individual landlords, contributing to a smoother and more sustainable rental model.

Furthermore, the scalability of build-to-rent developments provides investors with the opportunity to diversify their portfolios. The ability to own and manage multiple units within a single community or across various locations enhances the potential for economies of scale and mitigates risks associated with individual property management.

Impact on tenants

Tenants, the primary beneficiaries of the build-to-rent paradigm, stand to gain numerous advantages from choosing these purpose-built homes. These properties are meticulously designed with tenant needs in mind, offering an array of amenities such as fitness centers, communal space and on-site maintenance services. The emphasis on privacy is a notable characteristic, often achieved through detached or well-insulated units, setting build-to-rent homes apart from traditional rental options and providing tenants with a more comfortable and private living experience.

The communal aspect of build-to-rent living is a significant draw for tenants: This living experience aligns with the social preferences of modern renters, particularly the younger demographic, who prioritize connections and experiences over isolated living. The flexible lease terms offered by build-to-rent developments also cater to the transient nature of contemporary lifestyles. With the option for shorter leases and the absence of the burdensome responsibilities associated with homeownership, tenants can embrace a lifestyle characterized by mobility and adaptability.

Looking ahead at the future of single-family homes

As we cast our gaze into the future, the build-to-rent trend is poised to continue shaping the housing landscape in profound ways. The flexibility, convenience and community-oriented features of these developments are likely to attract an even broader spectrum of renters.

Moreover, advancements in sustainable and smart building technologies hold the promise of further enhancing the appeal of build-to-rent homes, making them a sustainable and forward-thinking choice for both landlords and tenants.

The integration of green building practices, energy-efficient technologies, and smart home solutions align with the growing emphasis on sustainability in the real estate sector. These innovations not only contribute to environmental conservation but also offer cost-saving benefits for both landlords and tenants. As society becomes more conscious of its ecological footprint, the incorporation of sustainable practices in build-to-rent developments positions it as a responsible and future-ready housing solution.

The confluence of these trends is not merely a fad; rather, it signifies a redefinition of how we conceptualize and experience rental housing. The integration of these elements is set to leave an major mark on the housing market, influencing its trajectory for years to come.

Looking for a place to rent, whether build-to-rent or something different. Check out our available apartments and houses for rent here.

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Pennymac proudly supports our nation’s heroes by offering Department of Veterans Affairs (VA) loans. We service over 445,000 VA loans on behalf of service members, veterans and their families – over 43,000 of which originated in the first 9 months of 2023.*

If you’re connected with the United States military, you may be eligible for VA loans, such as no down payment purchase loans and low-interest refinance loans. In this guide, we’ll look at what a VA loan is, the qualification criteria, the benefits and how to find the one that could be right for you.

*As of 9/30/2023

What Is a VA Loan?

A VA loan is a mortgage loan guaranteed by the United States Department of Veterans Affairs. It’s available to eligible veterans, service members and surviving spouses and offers numerous benefits, including:

  • No down payment on home purchase loans
  • Competitive interest rates
  • More flexible credit requirements than conventional non-VA loans
  • Lifetime benefit — you can use your VA loan entitlement multiple times

VA loans are specifically designed to meet the needs of veterans and their families, opening up increased opportunities for homeownership and building equity.

How Does a VA Loan Work?

VA loans are government-backed loans that offer veterans and service members more flexible borrower criteria than conventional loans. The VA guarantees the loans, reducing the risk for lenders and enabling lower credit scores and down payment requirements.

Not Just For First-Time Homebuyers

While you can use a VA loan for your first home, you can take advantage of the VA loan benefit again if you sell or refinance.

Navigating the VA Purchase Loan Process Step by Step

VA loans and the process to obtain them are similar to other types of Pennymac mortgage loans, with some key differences. Here’s a breakdown of the steps involved in applying for and securing a VA home purchase loan.

1. Start your application online or talk to a Pennymac Loan Expert. One of the unique aspects of a VA loan is that we’ll use your Certificate of Eligibility (COE) to confirm that you meet the basic VA loan requirements, but you don’t need it to begin your application.

You can visit the eBenefits section of the U.S. Department of Veterans Affairs website to request your COE online or obtain VA Form 26-1880 to make your request through the mail. If you prefer, your Loan Expert will be happy to guide you through the steps involved to verify your eligibility and obtain your COE.

2. Receive a Pennymac BuyerReady Certification. The BuyerReady Certification is Pennymac’s unique loan certification process that confirms how much of a mortgage you will likely qualify for based on submitted financial documents. While it doesn’t guarantee a loan, BuyerReady Certification can help you house-shop with confidence so you’ll know which homes will fit your budget.

BuyerReady Certified homebuyers also qualify for Pennymac’s Lock & Shop program,* which allows you to lock in a rate before locating a property. Protect yourself from future rate increases and potentially save thousands of dollars in the lifetime cost of your mortgage.

3. Look for homes. Meet with a real estate agent and begin looking for homes. Once you’ve found a home you’d like to purchase, you can continue with the VA loan process. Pennymac Home Connect can assist in finding a reputable real estate agent in your area.

4. Complete underwriting and loan process. Since you’ve already submitted most of the documentation and information you’ll need for the mortgage through the BuyerReady Certification process, loan processing is typically smoother and faster.

5. Close and get the keys! Once your loan is approved, you’ll have your closing, where all necessary paperwork will be signed.

At this time, you’ll get the final details of your loan terms and required closing costs, which are the extra fees buyers and sellers pay to close on a real estate transaction beyond the home’s purchase price. One of the fees unique to the VA loan is the funding fee, which can be paid in full at closing or rolled into the total loan amount.

About the VA Loan Funding Fee

The funding fee is a one-time charge, typically between 1.25% and 3.3% of the loan amount. The fee goes to the U.S. Department of Veterans Affairs to support the VA loan guaranty program, which helps keep VA mortgages low-cost and available for future veterans to achieve homeownership.

Funding Fee Exemptions

The following individuals are exempt from paying the VA funding fee:

  • Purple Heart recipients
  • Veterans eligible for compensation for service-connected disabilities or who would be eligible if they didn’t receive retirement pay
  • Veterans eligible for compensation based on a pre-discharge exam or review
  • Veterans eligible for compensation but not receiving it due to being on active duty
  • Surviving spouses eligible for VA loans

If the borrower’s exemption status is unclear, the VA will make the final decision on funding fee exceptions.

How to Qualify for a VA Loan

VA loans are available to active-duty service members, veterans and their surviving spouses. If you meet one or more of the following criteria, you may be eligible for a VA home loan:

  • Service totaling 181 days or more of active service during peacetime
  • Service totaling 90 consecutive days or more of active service during wartime
  • Service totaling six years or more in the National Guard or Reserves or served 90 days (at least 30 of them consecutively) under Title 32 orders
  • You suffered a service-connected disability
  • You are the spouse of a military member who died while on active duty or from service-connected causes

VA Loan Benefits

VA home loans are valuable financing solutions to help qualified service members and veterans achieve their homeownership aspirations. The primary benefits of VA home loans include:

  • No down payment requirement on home purchase loans. Buy your home sooner or use your savings for other expenses.
  • Lower interest rates. Interest rates are lower than conventional loans, making homeownership more affordable.
  • No monthly mortgage insurance premiums. Purchase a home and start building equity without the extra expense of monthly mortgage insurance.
  • Less stringent credit requirements. While there are specific financial criteria you’ll need to meet, perfect credit isn’t required, making homeownership more attainable and accessible.

Types of VA Loans

Veterans and service members have access to several types of VA loans, whether you’re buying a home or refinancing.

VA Purchase Loan

Buy a home with zero down payment and a competitive interest rate.

Who is it for? Qualified first-time or repeat homebuyers who are purchasing a primary residence.

Benefits:

  • No down payment, unlike conventional or FHA loans*
  • No private mortgage insurance (PMI) or upfront mortgage insurance premium (UFMIP) to keep your monthly payments low
  • Lower interest rates
  • Borrowers can choose to finance the VA funding fee into the loan

*As long as the sales price does not exceed the appraised home value.

VA Interest Rate Reduction Refinance Loan (IRRRL)

An IRRRL, also known as a Streamline Refinance Loan, allows you to refinance your existing VA loan to a lower interest rate, which may potentially lower your monthly payments. You may also be able to refinance an ARM into a fixed-rate mortgage.

Who is it for? Individuals who already have a VA loan.

Benefits:

  • Lower interest rates compared to conventional loans
  • Designed to be easy to apply and quickly close
  • Flexible loan terms — there’s no need to extend your current payment schedule
  • Minimal paperwork and income documentation required
  • No appraisal
  • More flexible eligibility requirements
  • No out-of-pocket cost refinance options are available to qualifying borrowers. Does not apply to taxes, insurance or pre-paid interest.
  • Option to reduce mortgage term without significant payment increases

Your rate and monthly payment after refinancing must be lower than your current payment, except when refinancing an ARM to a fixed-rate mortgage.

VA Cash-Out Refinance

VA cash-out refinance loans allow you to refinance your existing loan — which doesn’t have to be a VA loan — for a higher balance and receive the difference as cash. Use the funds for any purpose, such as paying off debt, funding education or making home improvements.

Who is it for? Qualified veteran homeowners who want to use their equity in their homes.

Benefits:

  • Pay off higher interest rate debt, such as credit cards
  • It can be used to refinance a non-VA loan into a VA loan
  • Pennymac will lend up to 90% of the value of your home*
  • Low-to-zero out-of-pocket costs
  • Only one monthly mortgage payment to make
  • Access cash from your equity and potentially lower your rate at the same time
  • Roll your closing costs into the loan

*Loan limits are established by the VA and can vary by county.

By refinancing your existing loan, your total finance charges may be higher over the life of the loan.

VA Loan Funding Options

A VA loan is a versatile, flexible financing option designed to empower veterans, service members and their families.

VA Purchase Loans

VA purchase loans can be used to finance a primary residence, including:

  • Single-family home, up to four units
  • Condominiums in a VA-approved project
  • A home that needs improvement
  • Manufactured home or lot
  • A new home build
  • Energy-efficient upgrades

VA Interest Rate Reduction Refinance Loan (IRRRL)

VA IRRRL loans are used to replace an existing VA loan at a lower interest rate. This can potentially reduce your monthly payments, freeing up money you can use for other expenses, such as home renovations, college tuition or credit card debt. You can refinance:

  • Single-family homes, up to four units
  • Condominiums
  • Manufactured homes

The home must be your primary residence, and you must already have a VA loan. You can also refinance an ARM into a fixed-rate mortgage.

VA Cash-Out Refinance

With a VA cash-out refinance, you may be able to obtain funds for:

  • Home improvements, repairs and renovations
  • Education
  • Consolidating debt
  • Managing other large expenses

You can also use a VA cash-out refinance to replace a non-VA loan with a VA loan. The home you are refinancing must be your primary residence.

Apply for a VA Loan

As part of our nation’s military, you’ve dedicated your life to serving our country. Pennymac is proud to serve you. We provide VA purchase loans and refinancing options that can make homeownership more attainable and affordable for America’s heroes. Contact a Pennymac Loan Expert today to learn more.

*Lock & Shop Program allows consumers who have a Pennymac BuyerReady Certification for a purchase loan with Pennymac to lock a rate prior to locating a property. The program requires a non-refundable fee of $595 due at the time of the rate lock. Consumers with a Pennymac BuyerReady Certification for a purchase loan with Pennymac must meet appropriate underwriting conditions to obtain a mortgage loan. Consumers may choose between a 60-day, 75-day or 90-day lock period. Consumers must initiate a mortgage loan application for a specific property and be under purchase contract for the property at least 30 days prior to lock expiration in order to extend the locked rate. All rate lock extensions are subject to Pennymac’s standard rate lock extension fees. After the rate lock and subject to favorable market conditions, consumers may be eligible for a one-time reduction in rate once the loan application for a specific property has been initiated (0.50 % maximum reduction in interest rate allowed). Eligible loan products are Conventional Fixed, Conventional ARM, FHA Fixed and VA Fixed. Program excludes Jumbo, refinance, third-party and in-process loans. Program subject to termination in Pennymac’s sole discretion and without notice.

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Source: pennymac.com

Apache is functioning normally

Macro Trends Advisors founding partner Mitch Roschelle joins ‘Varney & Co.’ to discuss the housing market under the Biden administration as monthly mortgage payments continue to soar. 

New U.S. home construction fell in December for the first time in four months, despite a sharp drop in mortgage rates.

Housing starts decreased 4.3% last month to an annual rate of 1.46 million units, according to new Commerce Department data released Thursday. Refinitiv economists had projected a pace of 1.42 million units. The decline stemmed from a substantial drop in single-family home construction, which fell by the most since July 2022.

However, applications to build – which measures future construction – rose in December, increasing 1.9% over the course of the month to an annualized rate of 1.49 million units. When compared with the same time last year, building permits are up about 6.1%.

“Building permits, a leading indicator of future construction, accelerated in December as builders expect the housing market to improve as borrowing costs fall,” said Jeffrey Roach, chief economist at LPL Financial.

HOME FORECLOSURES ARE ON THE UPSWING NATIONWIDE

Homes are under construction in Sacramento, California, on July 3, 2023. (David Paul Morris/Bloomberg via / Getty Images)

The data comes one day after the National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, rose five points to 44. The increase followed a three-point increase in December.

Any reading below 50 is considered negative.

MORTGAGE CALCULATOR: SEE HOW MUCH HIGHER RATES COULD COST YOU

“Lower interest rates improved housing affordability conditions this past month, bringing some buyers back into the market after being sidelined in the fall by higher borrowing costs,” said Alicia Huey, NAHB chair and a custom home builder and developer from Birmingham, Alabama.

A sign outside a home for sale in Atlanta on Sept. 6, 2023. (Elijah Nouvelage/Bloomberg via / Getty Images)

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Sentiment among builders began steadily falling at the end of the summer after mortgage rates shot above 7%, throttling demand among would-be homebuyers. But borrowing costs have retreated over the past two months as many investors believe the Federal Reserve is done with its aggressive interest-rate hike campaign – and will soon pivot to cutting rates.

Rates on the popular 30-year fixed mortgage are currently hovering around 6.66%, according to Freddie Mac, down from a high of 7.79% at the end of October but well above the pre-pandemic average of 3.9%.

The recent decline has prompted a burst of optimism among homebuilders that the worst may be over. However, the housing market is facing new headwinds heading into 2024, including higher prices and shortages of labor and lumber.

Source: foxbusiness.com