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Apache is functioning normally

January 15, 2024 by Brett Tams

With its world-class golf courses, scenic beauty and natural landscapes, and high degree of privacy and exclusivity, the small coastal residential community of Pebble Beach is a magnet for affluent homebuyers.

And said deep-pocketed buyers have more choices to pick from, as a meticulously renovated private estate — sitting on a generous 3.16-acre lot — has recently landed on the market.

Priced at a hefty $39,000,000, the Pebble Beach property is currently the most expensive active listing in the unincorporated community on the Monterey Peninsula. And it has all the attributes to back its sky-high asking price.

Photo credit: Sherman Chu courtesy of Tim Allen Properties Team

Owned by WeatherTech founder and CEO (and automotive accessories tycoon) David MacNeil, the Pebble Beach estate is as impressive as its price point would imply.

Built in 2000 and fully renovated in 2023, the property has nearly 7,500 interior square feet on a 3.16-acre lot and includes seven bedrooms, eight full bathrooms, and two half-bathrooms.

Photo credit: Sherman Chu courtesy of Tim Allen Properties Team

“I was fortunate to purchase this property at the beginning of the pandemic before the prices of properties had skyrocketed,” MacNeil says, before commenting on the property’s extensive renovation spearheaded by Monterey-based Holdren + Lietzke Architecture.

“This home has been modernized and opened up with more windows and access to the outside. It was renovated from top to bottom, both inside and outside with the finest finishes by Monterey-based Holdren + Lietzke Architecture,” MacNeil added.

Inside upgrades include the addition of a chef’s kitchen with custom cabinetry, three dishwashers and Wolf appliances, a 1,000-bottle temperature-controlled wine room, a laundry room with three sets of Miele commercial-grade washers and dryers, a billiards room, custom walnut and stone floors, and six fireplaces.

Photo credit: Sherman Chu courtesy of Tim Allen Properties Team

In addition, the property was updated with a copper roof, a backup battery system, a Lutron lighting system, an Axis security system, and geothermal heating and cooling systems.

The outdoor recreational areas have not been overlooked in the renovation process.

See also: You can buy the house Jennifer Aniston rented while filming ‘Friends’

Extensive landscape design completed in 2023 included adding a 30,000-gallon water collection and storage tank to reclaim water for landscaping use.

There’s also a built-in BBQ, dining and seating areas, hot tub, lower yard with putting green, tournament-ready bocce ball court with two firepits and built-in seating, and a pergola with solar panels.

Photo credit: Sherman Chu courtesy of Tim Allen Properties Team

Why would the WeatherTech founder part ways with his beautifully updated Pebble Beach house?

Talking about his decision to sell, MacNeal shares “Since I predominantly use another property in the vicinity when I spend time on the West Coast, I have made the difficult decision to put this property on the market for the next owners to thoroughly enjoy. The real estate market is lacking properties and I feel fortunate that I can pass this one on to someone else who can share it with their family and friends.

And he picked the best local realtor to find the right buyer.

The property’s real estate agent — Tim Allen of Tim Allen Properties Team, affiliated with Coldwell Banker Realty — is no stranger to selling multi-million dollar homes in the area for record amounts.

With nearly four decades of real estate sales experience under his belt, Allen was the #2 individual Coldwell Banker agent for 2022 sales (out of approximately 100,000 agents worldwide) and helped close some of 2023’s biggest real estate sales for the area, including the $29 million sale of the Butterly House in Carmel-by-the-Sea and the $22 million sale of architect Frank Lloyd Wright’s only oceanfront home in Carmel.

“The ultra-luxury market on the Peninsula remains strong, and we were fortunate to represent the buyers in two other iconic, historic local sales in 2023, a Frank Lloyd Wright-designed house and The Butterfly House, the latter of which was a record high for Carmel-by-the-Sea,” Allen says.

Photo credit: Wayne Capili courtesy of Tim Allen Properties Team

And he seems confident that the Pebble Beach house will also sell for top dollar.

“This architectural masterpiece provides a stunning setting for relaxation and magnificent views from its coastal Pebble Beach location. The house and property were completely reimagined and rebuilt to the highest quality, offering something unique and special to the market that had not been previously available,” the real estate agent adds.

Photo credit: Wayne Capili courtesy of Tim Allen Properties Team

Situated near the famous Pebble Beach Resorts, this property offers stunning views of Carmel Bay, Point Lobos, and the Pacific Ocean. Its location provides easy access to renowned golf courses, exclusive clubs, and the village of Carmel-by-the-Sea.

And just in case potential future owners need an extra reason to move to this idyllic area, we hear Brad Pitt lives nearby, in the historic DL James house (which also commanded a sale price somewhere around the $40 million mark).

More stories

‘Big Little Lies’ houses: Tracking down the Monterey Five’s stunning California homes

All the houses featured in Season 7 of ‘Selling Sunset’ and what happened to them

Inside Rod Stewart’s house in Beverly Park — a ritzy $80 million manor with its own soccer field

Source: fancypantshomes.com

Apache is functioning normally

January 15, 2024 by Brett Tams

Buying a house with low income is possible

While the dream of homeownership might seem elusive on a tight budget, the availability of low income home loans offers a beacon of hope.

These specialized loans come in handy, particularly when the obstacles of saving for a down payment loom large—a common hurdle if you’re already strapped with rent payments.

So if you’re wondering how to bridge the financial gap between renting and owning, read on to explore the various low income home loan programs that could unlock the door to your future home.

Verify your home buying eligibility. Start here

In this article (Skip to…)

Can I buy a house with low income?

Yes, you can buy a house with a low income by qualifying for housing assistance programs and special mortgage loans. That’s because there is no minimum income requirement to buy a house.

However, your ability to do so will depend on a variety of factors specific to your financial situation. A mortgage lender will examine your credit score, debt-to-income ratio, and down payment to determine if you qualify.

Check your mortgage eligibility. Start here

What are low income home loans?

The path to homeownership can be fraught with challenges, particularly for those with limited financial resources. Enter low income home loans—a specialized type of mortgage designed to level the playing field for buyers facing financial barriers.

Low-income mortgage programs focus on addressing the common challenges that low-income earners encounter, such as managing debt, maintaining less-than-stellar credit scores, and struggling to save for a significant down payment.

Verify your home buying eligibility. Start here

Minimal down payment requirements: One of the most daunting aspects of buying a home is accumulating a large down payment. Low income home loans often require smaller down payments, making it easier for buyers to make the initial leap.
Lenient credit criteria: Having a perfect credit score is not always feasible, especially when living on a limited income. These loans often have more flexible credit requirements, allowing for a broader range of credit histories.
Reduced costs at closing: High closing costs can be another hurdle. Low income home loan programs may offer reduced or even waived closing costs in certain circumstances.
Competitive mortgage interest rates: High interest rates can quickly make a mortgage unaffordable. Low income home loans often feature competitive interest rates, reducing long-term costs.
Lower mortgage insurance premiums: Some programs offer reduced premiums for mortgage insurance, further lowering monthly payments.

Interestingly enough, some of these programs often have income caps, essentially barring applicants who have incomes that are considered too high. This ensures that the programs benefit those who need them most.

Requirements for low income home loans

Your ability to qualify for a loan is not solely based on your income. Lenders will assess your debt-to-income (DTI) ratio, a key metric that represents your monthly debts as a percentage of your monthly income. Generally, a DTI under 35% is viewed as favorable, making you a more appealing candidate for a mortgage.

If saving a down payment is your chief concern, don’t worry; there are plenty of options that require minimal, or sometimes zero, down payments. Despite common misconceptions, a 20% down payment is not a universal requirement.

Additional Assistance

Beyond the loan itself, there are various homebuyer assistance programs that can help with the down payment and closing costs. Some of these are structured as grants that don’t require repayment, making it easier to achieve the dream of owning a home.

Navigating the complexities of mortgages and home buying can be intimidating, but low income home loans and assistance programs offer a lifeline to those who dream of owning their own home. These financial products and services are tailored to alleviate the most common obstacles, offering a viable path to homeownership for those who may have thought it was out of reach.

Low income home loans

Low income home buyers have plenty of loan options and special assistance programs to help with a home purchase. Here’s what you can expect.

Check your mortgage eligibility. Start here

Loan Type	Credit Score	Down Payment	Unique Requirements
HomeReady	Generally 620	As low as 3%	Income limits based on area, homebuyer education course required
Home Possible	Generally 660	As low as 3%	Must be primary residence, income limits may apply, can include 1-4 unit properties
FHA Loans	580 for 3.5% down, 500 for 10% down	3.5% with a 580+ score, 10% with a 500-579 score	Primary residence required, mortgage insurance necessary
VA Loans	Varies by lender, often 580+	No down payment required	Must be a qualifying service member, veteran, or eligible spouse; primary residence only
USDA Loans	Usually 640	No down payment required	Must be in a qualifying rural area, income limits apply, primary residence only

HomeReady and Home Possible mortgages

Fannie Mae’s HomeReady program and Freddie Mac’s Home Possible loan are geared toward lower-income home buyers. You need only 3% down to qualify, and there is no minimum “required contribution” from the borrower. That means the money can come from a gift, grant, or loan from an acceptable source.

Even better, the home seller can pay closing costs worth up to 3% of the purchase price. Instead of negotiating a lower sales price, try asking the seller to cover your closing costs.

Private mortgage insurance (PMI) may also be discounted for these low income home loans. You’re likely to get a lower PMI rate than borrowers with standard conventional mortgages, which could save you a lot of money from month to month.

“This is the biggest benefit,” says Jon Meyer, The Mortgage Reports loan expert and licensed mortgage loan originator. “The PMI is offered at a lower rate than with a standard conventional loan.”

Finally, Home Possible and HomeReady might make special allowances for applicants with low incomes. For instance, HomeReady lets you add income from a renter on your mortgage application, as long as they’ve lived with you for at least a year prior. This can help boost your qualifying income and make it easier to get financing.

You might qualify for HomeReady or Home Possible if your household income is below local income limits and you have a credit score between 620 and 660.

FHA loans

FHA loans offer flexible approval requirements for repeat and first-time home buyers alike. This program, which the Federal Housing Administration backs, relaxes borrowers’ standards to get a mortgage. This can open up the home-buying process to more renters.

You might be able to get an FHA home loan with a debt-to-income ratio (DTI) up to 45% or a credit score as low as 580 while paying only 3.5% down
Select FHA lenders even allow credit scores as low as 500, provided the buyer can make a 10% down payment

Thanks to these perks and others, the FHA loan is one of the most popular low-down-payment mortgages on the market.

Check your FHA loan eligibility. Start here

VA loans

Veterans Affairs-backed VA loans provide military homebuyers with a number of advantages.

No down payment requirement. You can finance 100% of the purchase price. You can also refinance 100% of your home’s value using a VA loan
No mortgage insurance. But you will pay a one-time VA Funding Fee. You can wrap it into the loan amount.
No minimum credit score. Although lenders are allowed to add their own minimums. Those that do often require a FICO score of at least 580 to 620.
Sellers can pay up to 4% of the purchase price in closing costs. So if you find a motivated seller, you could potentially get into a home with nothing out of pocket

If you’re a veteran, active-duty service member, or surviving spouse, the VA mortgage program should be your first stop.

Check your VA loan eligibility. Start here

USDA loans

If you’re not buying in a large city, you may qualify for a USDA home loan. Officially called the Single-Family Housing Guaranteed Loan Program, the USDA loan was created to help moderate- and low-income borrowers buy homes in rural areas.

With a USDA loan, you can buy a home with no money down. The only catch is that you must buy in a USDA-approved rural area (though these are more widespread than you might think). You can find out if the property you’re buying is located in a USDA-eligible rural area and whether you meet local income limits using the USDA’s eligibility maps.

Your monthly payments might be cheaper, too. That’s because interest and mortgage insurance rates are typically lower for USDA loans than for FHA or conforming loans.

There are two types of USDA loans.

The Guaranteed Program is for buyers with incomes up to 115% of their Area Median Income (AMI)
The Direct Program is for those with incomes between 50% and 80% of the AMI

Standard USDA-guaranteed loans are available from many mainstream lenders. But the Direct program requires borrowers to work directly with the U.S. Department of Agriculture.

You typically need a credit score of 640 or higher to qualify.

Check your USDA loan eligibility. Start here

Low income home loan programs

Aside from mortgages that are designed to help people with low incomes buy a home, there are also a number of other programs that offer help to make homeownership more accessible.

Verify your home buying eligibility. Start here

Program	Description	Who Is Eligible
Hud Homes	Discounted homes sold by the Department of Housing and Urban Development.	Low- to moderate-income families, with preference for those who will make it their primary residence. May include single-family homes.
Housing Choice Voucher Program	Vouchers to subsidize the cost of housing in the private market.	Low-income families; must meet income and other criteria set by state and local housing programs.
Good Neighbor Next Door	Significant discounts on homes for teachers, firefighters, police officers, and EMTs.	Must commit to living in the property as a primary residence for at least 36 months. Includes single-family homes.
HFA Loans	Loans offered by state Housing Finance Agencies with reduced interest rates and down payment assistance.	First-time or repeat buyers with low to moderate incomes must meet income requirements. Often, it must be a primary residence.
Down Payment Assistance	Grants or loans to cover the down payment and sometimes closing costs.	Typically for low- to moderate-income families, though criteria can vary by program. Often for single-family homes.
State or Local Assistance	Various grants, loans, or tax credits are offered at the state or local level.	Eligibility varies but usually targets low- to moderate-income families. May include single-family homes.
Mortgage Credit Certificates	Tax credit to reduce federal income tax liability.	First-time homebuyers who meet income requirements; must be primary residence.
Manufactured and Mobile Homes	Loans or grants specifically for manufactured or mobile homes.	Low- to moderate-income families; must meet criteria set by specific housing programs. Usually must be primary residence.

Hud Homes

When the FHA forecloses on homes, those properties are often put up for sale as HUD Homes. And, you can generally purchase one at a steep discount. To qualify for a HUD Home, it will need to be your primary residence for at least 12 months. Additionally, you must not have purchased another HUD in the past 24 months.

Keep in mind that HUD Homes are sold as-is. Many are fixer-uppers. Moreover, HUD Homes are purchased through a bidding process. You’ll need a real estate agent or mortgage broker licensed with HUD to bid on an FHA property.

You can find HUD Homes on the official HUD website, hudhomestore.com. There, you’ll see all HUD real estate owned (REO) single-family properties in your area.

Good Neighbor Next Door

The Good Neighbor Next Door program offers unique benefits for nurses, first responders, and teachers. If you’re eligible, you can buy HUD foreclosure homes at a 50% discount. Use an FHA mortgage, and you only need $100 for a down payment.

You can find the homes on the U.S. Department of Housing and Urban Development website. You’ll also need a HUD-licensed real estate agent to put your offer in for you.

If your offer is accepted and you qualify for financing, you get the home. The 50% discount makes homeownership a lot more affordable. However, be aware that this discount is actually a second mortgage. But it has no interest and requires no payments. Live in the home for three years, and the second mortgage is forgiven entirely.

HFA home loans

Not to be confused with FHA loans, HFA loans are offered in partnership with state and local Housing Finance Authorities.

Many HFA loans are conventional mortgages backed by Fannie Mae and Freddie Mac. They may require as little as 3% down, and many HFA programs can be used with down payment assistance to reduce the upfront cost of home buying.

Borrowers who qualify for an HFA loan might also be in line for discounted mortgage rates and mortgage insurance premiums. To qualify, you’ll typically need a credit score of at least 620. But eligibility requirements vary by program.

Find and contact your state’s public housing finance agency or authority to learn more and see if you qualify. Also, be aware that this type of loan program will require additional approval steps that may make loan closing take longer.

Down payment assistance programs (DPAs)

Down payment assistance is exactly what it sounds like. It provides help with down payments on home purchases and often closing costs. Government agencies, nonprofits, and other sources commonly offer down payment and closing cost assistance. They are usually in the form of a grant or loan (though the loans may be forgiven if you stay in the house for five to ten years).

Most DPA programs target low-income home buyers and have guidelines that make qualifying easier. Some, however, provide assistance to people who buy in “underserved” or “redevelopment” areas, regardless of income. Many DPA programs offer assistance worth tens of thousands of dollars.

Talk to a lender about your options. Start here

Mortgage Credit Certificates (MCCs)

Mortgage credit certificates (MCCs) can stretch your home-buying power. If you meet income requirements, you could get a tax credit equal to some percentage of your mortgage interest. Lenders are allowed to add this credit to your qualifying income when underwriting your mortgage. This allows you to qualify for a higher mortgage amount than you otherwise could.

There are numerous states, counties, and cities that issue mortgage credit certificates, and their regulations and amounts vary greatly. Check with your local housing finance authority to find out whether MCCs are available where you live.

Housing Choice Voucher Program

The Housing Choice Voucher homeownership program (HCV) provides both rental and home buying assistance to eligible low-income households. Also known as Section 8, this program allows low-income home buyers to use housing vouchers to purchase their own homes.

Because local public housing agencies run these voucher programs, eligibility varies depending on location. Still, you’ll likely need to meet the following requirements:

Program-specific income and employment conditions
Being a first-time home buyer
Completing a pre-assistance homeownership and counseling program

Keep in mind that not all states offer voucher programs, and some programs have waiting lists. Also, these programs could limit how much you can sell the home for later on. To find out if your area offers a participating program, use the HUD locator web tool.

Manufactured and mobile homes

A manufactured home usually costs less than a traditional, site-built home. When placed on approved foundations and taxed as real estate, manufactured homes can be financed with mainstream mortgage programs.

Many programs require slightly higher down payments or more restrictive terms for manufactured homes. HomeReady, for example, increases the minimum down payment from 3% to 5% if you finance a manufactured home. Other programs require the home to be brand new.

Additionally, there are often requirements regarding the year the home was built and the property’s foundation. These guidelines will vary between lenders. Mobile homes that are not classified as real estate can be purchased with personal loans like the FHA’s Title 2 program. These are not mortgages because the homes are not considered real estate.

Check your mortgage options. Start here

Tips for buying a house with low income

Whether you’re buying a new home or your first home, these tips can help you achieve your homeownership goals.

Verify your home buying eligibility. Start here

Improve your credit history

Improving your FICO score is the best way to increase your chances of loan approval and qualify for lower mortgage rates.

The credit score needed to purchase a home varies depending on the type of loan you apply for. Conventional loans typically require a score of at least 620, while FHA loans often require at least 580.

Start by pulling free credit reports from annualcreditreport.com to determine your current score. Next, consider a few of the common methods for increasing credit scores. The amount of work that you’ll need to do will depend on your personal financial situation.

As an example, if your credit score is low because you’re using too much of your available credit, you may benefit from a debt consolidation loan to tame your high-interest account balances and improve your credit utilization.

On the other hand, if your credit history reveals missed payments, you’ll need to show at least 12 months of regular, on-time payments to improve your score.

Save for a down payment

The average first-time home buyer puts just 13% down on a new home. Yet, many loan programs require as little as 3% down or no down payment at all.

Remember that you still have to pay closing costs, which are typically around 2% to 5% of your mortgage loan amount. If you put less than 20% down, you’ll almost certainly have to pay for mortgage insurance.

In addition, you may need cash reserves in your savings account. This assures lenders that you can make your monthly mortgage payments should you suffer a financial setback. However, don’t let the down payment scare you away from homeownership. Many buyers qualify without even knowing it.

Pay down debts

Paying down debts will lower your debt-to-income ratio and improve your odds of mortgage approval. This is especially true for those with high-interest credit card debt.

You’ll likely qualify for lower rates when you have:

A low debt-to-income ratio (DTI)
High credit score
3% to 5% down payment
Stable income for the past two consecutive years

Use a first-time home buyer program

First-time buyer programs offer flexible guidelines for qualified buyers. Plus, these special programs exist in every state to help low-income households achieve homeownership.

Unlike traditional conventional loans, the government backs many first-time buyer mortgages. This allows mortgage lenders to offer loans with better rates and lower credit score requirements than they normally would be able to.

Verify your low income home loan eligibility. Start here

Model your budget

Owning a home requires more than qualifying for a loan and making monthly mortgage payments. Homeowners are responsible for a variety of ongoing costs, including:

Homeowners insurance
Property taxes
Mortgage insurance (in many cases)
Utility bills
Ongoing home maintenance
Home improvements
Appliance repair and replacement

Home buyers who have experience paying these ongoing costs of homeownership will be better prepared for the big day when they get the keys to their dream home.

Plus, sticking to this model budget in the months and years before purchasing a home and then saving the money you would spend on housing costs, such as insurance premiums and utilities, is a great way to build cash reserves and save for a down payment.

Use a co-signer

If you’re on the edge of qualifying for your own loan, using a co-signer may be an option.

Essentially, when you buy a house with a co-signer, you and your co-signer are both responsible for making the monthly payments. You’ll both also build and share in the home’s equity. Purchasing a home with a co-signer is quite common among unmarried couples, friends, and family members.

FAQ: Low income home loans

Verify your home buying eligibility. Start here

How do you buy a house with low income?

To buy a house with a low income, you have to know which mortgage program will accept your application. A few popular options include: FHA loans (allowing low income and as little as 3.5 percent down with a 580 credit score); USDA loans (for low-income buyers in rural and suburban areas); VA loans (a zero-down option for veterans and service members); and HomeReady or Home Possible (conforming loans for low-income buyers with just 3 percent down).

I make $25K a year; can I buy a house?

Mortgage experts recommend spending no more than 28 percent of your gross monthly income on a housing payment. So if you make $25K per year, you can likely afford around $580 per month for a house payment. Assuming a fixed interest rate of 6 percent and a 3 percent down payment, that might buy you a house worth about $100,000. But that’s only a rough estimate. Talk with a mortgage lender to get the exact numbers for your situation.

How do I qualify for a low-income mortgage?

Whether or not you qualify for a low income home loan depends on the program. For example, you might qualify for an FHA mortgage with just 3.5 percent down and a 580 credit score. Or, if your house is in a qualified area and you’re below local income caps, you might be able to get a zero-down USDA mortgage. Veterans can qualify for a low-income mortgage using a VA loan. Or, you can apply for the mortgage with a co-borrower and qualify based on combined incomes.

What programs are available for first-time home buyers?

Low income home loans can help first-time home buyers overcome hurdles like low credit or income, smaller down payments, or high levels of debt. A few good programs for first-time home buyers include Freddie Mac’s Home Possible mortgage, Fannie Mae’s HomeReady mortgage, the Conventional 97 mortgage, and government-backed loans like FHA, USDA, and VA. First-time home buyers can also apply for down payment assistance grants through their state or local housing department.

Can the government help me buy a house?

There are a number of ways the government can help you buy a house. Perhaps the most direct way to get help is by applying for down payment assistance. This is a grant or low-interest loan to help you make a down payment. You can also buy a house using a government-backed mortgage, like the FHA or USDA. With these programs, the government essentially insures the loan, so you can buy with a lower income, credit score, or down payment than you could otherwise.

How do I buy a house without proof of income?

You can no longer buy a house without proof of income. You have to prove you can pay the loan back somehow. But there are modern alternatives to stated-income loans. For instance, you can show “proof of income” through bank statements, assets, or retirement accounts instead of W2 tax forms (the traditional method). Many people who want to buy a house without proof of income these days find a bank statement loan to be a good option.

How do you rent to own?

A lease option or rent-to-own home isn’t exactly what it sounds like. You don’t simply rent until the house is paid off. Instead, you usually pay a higher rent for a set period of time. That excess rent then goes toward a down payment when you buy the house at a later date. Rent-to-own might help you buy a house if you don’t have a lot of cash on hand right now or if you need to improve your credit score before applying for a mortgage. However, rent-to-own requires seller cooperation and comes with unique risks.

Can I rent-to-own with no down payment?

Rent-to-own does not mean you can buy a house with no down payment. When you rent-to-own, you’re paying extra rent each month that will go toward your down payment later on. And usually, rent-to-own contracts include an option fee that’s a lot like a down payment. The option fee is smaller. Think 1 percent of the purchase price instead of 3 to 20 percent. And that fee eventually goes toward your purchase. But it’s still a few thousand dollars you must pay upfront to secure the right to buy the home later on.

Can I get a grant to buy a house?

Qualified buyers can get a grant to buy a house. These are called down payment assistance grants. They won’t pay for the whole house, but they can help cover your down payment to make a mortgage more affordable. You’re most likely to qualify for a grant to buy a house if you have a low to moderate income and live in a target area.

What type of low income home loan is the easiest to qualify for?

FHA loans are generally the easiest low income home loan to qualify for. The federal government insures these loans, which means lenders can relax their qualifying rules. It’s possible for a home buyer with a credit score of 500 to get approved for an FHA loan, but most FHA lenders look for scores of 580 or better. And a FICO score of 580 lets you make the FHA’s minimum down payment of 3.5 percent.

How can I get a home loan with low monthly payments?

To get the lowest possible monthly payment, choose a 30-year loan term, find a cheaper home, put more money down, and make sure you have excellent credit before applying for your mortgage. If you can afford a 20 percent down payment, you can avoid PMI premiums, which lower your monthly payments even more. Veterans can get VA loans that require no PMI, regardless of their down payment size.

What’s the lowest amount you can put on a house?

Some home buyers can put no money down with a VA or USDA loan. Conventional loans will require at least 3 percent down, and FHA loans will require at least 3.5 percent down. Down payment assistance grants and loans could help you cover some or all of this down payment.

How much house can I afford if I make $30K a year?

If you make $30,000 a year, you could probably spend about $110,000 on a house, assuming you get a 30-year fixed-rate mortgage at 6 percent. This is a rough estimate. Your unique financial situation may be different. Getting a pre-approval from a lender is the only way to find your actual price range.

What are today’s mortgage rates for low income home loans?

Many low-income mortgage programs have lower interest rates than “standard” mortgage loans. So you might get a great deal.

However, interest rates vary depending on the borrower, the loan program, and the lender.

To find out where you stand, you’ll need to compare loan offers from several lenders and then choose your best deal.

Time to make a move? Let us find the right mortgage for you

Source: themortgagereports.com

Apache is functioning normally

January 15, 2024 by Brett Tams

Want to learn how to make $200 fast? Having some extra income can be useful for unexpected needs or saving up money. Maybe you need money for rent, something broken on your car, or a medical bill. Maybe you have something that you’re saving for, and you just want to make some extra cash. If…

Want to learn how to make $200 fast?

Having some extra income can be useful for unexpected needs or saving up money. Maybe you need money for rent, something broken on your car, or a medical bill. Maybe you have something that you’re saving for, and you just want to make some extra cash.

If you want to make $200 fast, there are many ways to do it: You could sell things you don’t need, create and sell handmade items, use your car or home to make money, and more.

There are lots of ways to make $200 fast!

My top picks to make $200 fast

Selling items from around your home, such as clothing, an old cell phone, furniture, and more. You can learn how to flip your stuff in this free webinar.
Make $65+ per hour in a focus group sharing your opinions with User Interviews.
Rent out your RV with RVShare.
Freelance proofread and learn how to become a proofreader in this free webinar.
Start a blog (this is what I do!) and learn how in my free How To Start a Blog course.

Best Ways To Make $200 Fast

Below are the best ways to make $200 quickly.

Selling items from around your home

The quickest way to make $200 fast is to find stuff you already own and sell it.

When you’re in a pinch for cash, your home can be a treasure trove of items you can sell. Start by gathering gently used items or those you no longer need, such as electronics (phones, laptops), furniture (couches, coffee tables), clothing and accessories (especially branded ones), gift cards, and collectibles and antiques.

You can sell on Craigslist (ideal for bulkier items like furniture, tires, cars, etc., where local pickup is more practical), Facebook Marketplace (great for reaching a large local audience quickly), eBay (perfect for unique or more valuable items where shipping isn’t an issue), thrift stores (get cash on the spot at places like Plato’s Closet), having yard or garage sales (typically get less per item but can get rid of a lot of things at once), and more.

I have sold a ton of used items over the years such as clothing, jewelry, car tires, furniture, and more. It is easy and someone probably wants what you’re selling.

Recommended reading: 16 Best Selling Apps For Selling Stuff Online And Locally

This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.

Rent out your storage space

If you’ve got extra space in your home, be it an attic, basement, or spare room, renting it out for storage is an excellent way to earn extra cash.

A site to use to rent out your space is Neighbor. This website helps you earn money by renting out space you’re not using.

You can make up to $15,000 a year by renting out your garage, driveway, basement, or even a closet with Neighbor. You get to choose the prices and decide which reservations you want to say yes to and host.

Take paid online surveys

Earning $200 a day just by answering surveys isn’t normally possible (unless you are doing focus groups or paid research studies), but you can reach your goal by combining survey earnings with other ideas.

When I was repaying my student loans, I answered lots of surveys each week. I did this before work, during lunch, or after work. It was convenient because I could do it whenever I had free time.

Survey companies pay you for answering surveys, watching videos, and testing products. Sometimes, you might even receive free products to evaluate. The best part is that joining survey companies is free!

Some of the paid online survey companies I recommend are:

Here are 11 Paid Online Survey Sites if you want to learn more.

Answer questions in a focus group

A focus group is like a paid online survey, as I mentioned before, but you can make a lot more money from it.

I’ve done a focus group in the past that paid me around $400 for 75 minutes of my time. While that’s a bit more than usual, most focus groups pay anywhere from around $50 to over $100 per hour. Compensation differs significantly depending on the study’s length and topic, but higher-paying studies do exist.

Lots of consumer research companies pay people like us to share our opinions. The companies use our feedback to make their products and services better.

One focus group company that I recommend is User Interviews. User Interviews recruits participants to answer surveys and share their feedback.

User Interviews pays very well for market research studies and these are some of the highest paying online surveys, with each paying $50 to $100 or more. The average pays over $60.

Play games on your phone

If you’re looking to make $200 quickly, your smartphone can be a surprisingly interesting way. By playing games on your phone, you can earn real money.

Game apps pay real money rewards because they make money from ads and in-app purchases. They share a part of their earnings with you to motivate you to keep playing their games.

The best game apps that pay real money include KashKick, Swagbucks, and InboxDollars.

When picking gaming apps to make money, check reviews and learn about how you get paid. Be careful with apps that ask you to pay to play or promise rewards that sound too good to be true. Also, keep track of the time you spend playing games to make sure it stays worth it.

Rent out your unused RV

If you have an RV that’s sitting idle, you may want to turn it into income by renting it out. Many people have RVs they don’t use very often. Instead of letting it just sit there, you might make extra money by renting it out. Yes, you could potentially make $200 a day by renting your RV to others.

Popular sites such as RVshare work similarly to Airbnb, connecting you with potential renters. They handle the bookings and insurance, making the process easier.

Another idea is to park your RV somewhere and list it on Airbnb. I’ve seen many RVs, campers, trailers, and more on Airbnb available for rent. Just make sure that you can rent it out in the location you want to leave it, as not all campgrounds or neighborhoods may allow it.

RVshare is one of the best money-making sites because it helps travelers save money by cutting out the middleman and offering RV rentals directly from RV owners. If you have an RV that is sitting around, then you may be able to make $100 to $300+ a day.

Proofread

If you like finding mistakes in written content and want to know how to make $200 a day, proofreading could be a good fit for you. It can be a part-time job or a full-time work-from-home career too.

It’s a job where you can make $200 in a day, and many proofreaders earn around $40,000 a year or even more.

Proofreaders check for mistakes in articles, ads, books, student papers, emails, transcripts, and more.

To become a proofreader, all you need is a laptop or tablet, an internet connection, and the ability to spot mistakes and errors.

I recommend signing up for the free 76-minute workshop, where you can learn more about becoming a proofreader. You can sign up for the free How To Become a Proofreader workshop here.

Recommended reading: How To Become A Proofreader And Work From Anywhere

This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.

Virtual assist

A virtual assistant (VA) is someone who helps a person, company, or business owner with administrative and business tasks, making sure everything runs smoothly. They’re just like in-person assistants, but they work from home and online.

I used to work as a virtual assistant for small business owners. I didn’t have prior experience, but I learned the skills while on the job. It not only helped me earn a good income but also allowed me to work from home. I also have virtual assistants who work for me, so I know how helpful they are! This is a very in-demand job field to get into.

Virtual assistant tasks may include:

Managing a company’s Facebook account
Managing a calendar
Scheduling appointments and meetings
Creating slideshows and presentations
Managing an email inbox and handling customer support

And more.

Typically, when you begin working as a virtual assistant, you might earn around $15 to $20 per hour. However, in some cases, you could start with twice or even three times that amount. It depends on the type of work you do and the services you provide.

This can be a full-time job or a side hustle too!

You can learn more at How I Earn $10,000 Per Month From Home as a Virtual Assistant.

Selling handmade goods and crafts

If you want to earn an extra $200 fast, selling the things you make by hand, like crafts or handmade goods, is a great idea.

A popular place to sell handmade goods includes Etsy, which has a worldwide audience looking to purchase unique handcrafted items. You can also sell via social media or even rent a booth at a local craft fair.

You can sell all different kinds of handmade items such as jewelry, soap, furniture, art, photography, clothing, personalized gifts (such as engraved items), and more.

I have personally bought handmade goods all of these ways.

Freelance write

A person who freelance writes can make $200 in a single day.

Freelance writers work for clients, like websites, magazines, marketing teams, book publishers, and others. They write different things such as articles, blog posts for search engine optimization (SEO), marketing content, newsletters, press releases, and more.

You can find freelance writing jobs in many ways such as by searching on Fiverr or Upwork, looking to see if any of your favorite sites are hiring writers, networking with people in the industry you want to write in, and more.

I’ve been a freelance writer for a long time, and many of my friends also have this job. It’s a great way to make $200 a day or more all from home.

You can learn more about how to find freelance writing jobs below:

Transcribe

If you’re looking to make $200 quickly, transcription could be a great option. With a fast typing speed and strong language skills, you can convert audio files to text for pay.

Transcription is when you change spoken words from audio or video into a written document. Many businesses need transcriptionists because they need to convert audio and video into text.

New transcriptionists usually make about $15 per hour when they begin, and the good thing is, you don’t need any previous experience to get started.

Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly

In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.

Blog

Starting a blog doesn’t instantly make you $200 on the first day because it takes time to set it up. However, with time and effort, bloggers can make $200 a day in the future.

A blog is a website with articles, like what you’re reading now. You can create a blog on topics such as personal finance, recipes, travel, pet care, family life, and more. There are many different types of blogs out there.

You can make money from a blog by partnering with companies for sponsorships, showing ads, doing affiliate marketing (for example, selling a product listed on Amazon), and selling products like ebooks, candles, T-shirts, and more directly on your blog.

This is what I do to make money, and I earn well over $200 a day online. It did take me around 6 months to make my first $100 with my blog, so it does take time to get started. It took me about a year to reach around $5,000 a month and around 2 years to get to $10,000 a month.

You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).

Another idea similar to this is to start a YouTube channel, TikTok, Instagram, and more!

Want to see how I built a $5,000,000 blog?

In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.

Dog walker

Becoming a dog walker is a fun way to make some quick cash if you love pets, especially dogs. You can easily get started by signing up with well-known dog walking apps dedicated to connecting dog walkers with pet owners.

Here are some steps to help you begin:

Register on Dog Walking Apps – Platforms like Rover are great for finding dog walking jobs. You could earn around $15 to $18 per hour depending on your experience and the local demand for dog walkers.
Create a Profile – Highlight your experience with dogs and any references you might have.
Set Your Availability – Decide on the days and hours you’re available to walk dogs and set your schedule.

My sister as well as my husband’s mother are both dog walkers on Rover, and they both enjoy this side hustle.

Sell printables on Etsy

Selling printables on Etsy can be a quick way to earn some extra cash.

Printables are digital files that customers can download and print themselves. These can include things like planners, art prints, stickers, learning tools, worksheets, invites, and organizational tools.

You most definitely have used printables in your life, and so have most people. I buy printables all the time because they make my life so much easier – and it’s so nice to just print things out and have them more easily accessible for when I need them.

One great thing about selling printables is that you don’t have to print and send anything yourself. The customer pays for the design, and they print it out on their own.

Here’s how you can get started:

Step 1: Find Your Niche

Determine what kind of printables you’re passionate about. Many people specialize in a certain type of printable, such as home, wedding, organizing, education, etc.
Research what’s popular and in demand. See what kind of printables people are actually buying right now.

Step 2: Create Your Printables

Use design tools like Canva or Adobe Illustrator.
Make sure your design is original and appealing.

Step 3: Set Up Your Etsy Shop

Create a memorable and easy shop name.
Set up shop policies and fill in all the details.

Step 4: List Your Products

Take attractive product photos or create digital mockups.
Write clear and compelling product descriptions so that potential customers can find your printables.
Price your printables competitively.

Step 5: Promote Your Shop

Utilize Etsy’s built-in SEO by using relevant keywords in your listings.
Share your printables on social media platforms.
Consider Etsy Ads for additional promotion.

You can learn more at How I Make Money Selling Printables On Etsy.

Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.

Deliver groceries and food

Grocery delivery is a service that is becoming more and more popular. I’ve used it several times myself when I didn’t have time to shop or didn’t have a car available. This service is likely to keep growing.

If you’re looking to make quick cash, you can try delivering groceries and food. You have the flexibility to create your own schedule, and payment can be received pretty quickly – sometimes even within an hour.

Delivering groceries is a popular extra job, and all you need is a valid driver’s license and a car.

You get paid for each delivery and keep all your tips. Platforms like Instacart and Shipt can help you earn around $15 to $20 per hour.

Here are a couple of options for you to start earning with food delivery:

Instacart: As an Instacart shopper, you can choose to shop for groceries or both shop and deliver to customers. Being able to cash out your earnings instantly is a big plus.
Shipt: Enjoy shopping at stores like Target and CVS? With Shipt, you can earn by shopping for others. It’s a great way to combine earning with a task you already enjoy.

Related to this: You can also deliver restaurant meals in your spare time through companies like DoorDash and Uber Eats.

Drive for Uber or Lyft

Earning $200 quickly may seem hard, but you may be able to reach this goal by driving for ride-sharing services like Uber or Lyft.

Here’s what you need to know:

Sign Up – Both Uber and Lyft require you to have a valid driver’s license, meet age requirements, pass a background check, and have an eligible car.
Flexibility – You have the freedom to choose your working hours. Whether it’s an hour, over the weekend, or throughout the week.
Earnings – Income can vary, but it’s possible to earn between $20 to $25 per hour on average. At this rate, driving for 10 hours can help you reach your $200 target.
Maximize Promotions – Keep an eye out for special promotions or peak time surge pricing (such as by driving during weekend nights or during a baseball game) as these can really boost your earnings.

Expenses like gas and vehicle maintenance will come out of your earnings, so it’s important to work efficiently and choose high-demand times and areas to increase your income.

Tutor

Tutors who know subjects well, like math, language, science, graphic design, and more, help students get better at those subjects.

Becoming an online tutor depends on the subject you want to teach. You need experience in that area, but there are options for beginners too. Tutors for advanced subjects, like calculus or college entrance exams, usually earn more than those teaching simpler topics.

Rates vary from $15 to over $100 per hour, depending on the subject and where you offer your tutoring services.

Read more at 11 Best Places To Find Online Tutoring Jobs (Make $100+ an hour).

Sign up for quick Craigslist jobs

You can make $200 quickly using your local Craigslist, which has short-term jobs and side hustles listed under “gigs.”

Some gigs I’ve seen include painting a room, running errands, passing out flyers, handyman work, loading a moving truck, shoveling snow, pet sitting, transporting a boat, and more.

You can also find quick gig side hustles through a company called Taskrabbit as well!

Note: When using Craigslist for odd jobs, be cautious of scams. If something appears too good to be true, it probably is. For instance, no one is likely to pay you $2,000 for a mystery shop or a 30-minute survey. It’s important to stay alert and choose opportunities that are realistic and trustworthy. Simply skip it if you have doubts!

Get a roommate

If you’re looking to make $200 quickly, getting a roommate can be one way to do so, and if you have an extra room at home, you can make extra money by renting it out on platforms like Airbnb or finding a long-term roommate.

Renting out a room long-term could earn you around $200 or much more, depending on the room and its location. It’s a good way to utilize your extra space for additional income.

I have personally had several roommates in the past, and it was a good source of income. Plus, we had the extra space anyway that was unused. We charged around $400 a month per room, but nowadays you can definitely get a lot more (especially depending on where you live).

Here’s a quick step-by-step guide to finding a roommate and getting paid:

Advertise Your Space – You will need to find ways to get the word out about the spare room you want to rent out. You can do this on Craigslist, your personal Facebook page, placing a post in a local Facebook group, and more.
Vet Potential Roommates – You don’t want just anyone living with you as they will be sharing your space! Here are some ways to vet potential roommates:
- Interviews: Have a conversation to make sure everyone is compatible.
- References: Ask for and check personal and rental references.
Discuss Financials – This is all about money, so money definitely needs to be talked about and agreed on. You’ll want to think about things like:
- Rent: Determine the monthly charge for rent.
- Utilities: Decide how you’ll split costs like electricity, internet, and water. Will the monthly rent include all of the bills or will you split the utilities?
Set House Rules – Rules like quiet hours, guest policies, and cleaning responsibilities help avoid conflicts.
Create a Formal Agreement – Writing an agreement will lay everything out so that there is no confusion later.
- Lease Addendum: If you have a lease, add your roommate officially.
- Roommate Agreement: Outline terms of rent, bills, and house rules.

To learn more about renting out your spare room, I recommend reading A Complete Guide To Renting A Room For Extra Money.

If you want to take it a step further, you could even get into real estate investing. You can learn more about this option at How This 34 Year Old Owns 7 Rental Homes.

Rent out baby items, such as a crib

If you’re looking to make $200 fast, you can rent out your gently used baby items to traveling families. By listing a crib, stroller, or car seat on rental platforms, you can help ease the travel burdens for parents while earning extra cash.

Here are some ideas of what you can rent out:

Cribs
Strollers
Car seats
High chairs
Toys

A website called BabyQuip lets you rent out baby equipment. On average, people using BabyQuip can make about $1,000 a month, and some earn over $10,000 monthly.

Redeem credit card rewards

If you have a credit card, then there’s a good chance that you are earning points by simply spending like you normally do.

Or, you could even sign up for a new card that has a good signup bonus to earn more points.

With rewards credit cards, you can turn your points into cash back. Here’s how it works: whenever you use your credit card to buy something, you earn points as a reward for spending money.

I have rewards credit cards and I earn points every single time I shop or pay a bill, and I don’t have to do anything special. Just pay my bills and expenses like I normally do! In fact, I just signed up for a new rewards credit card with a great signup bonus today with a signup bonus value of over $800.

Two credit cards that I personally like include:

Important note: Making the most of credit card rewards is smart only if you use your credit card responsibly. It’s not a good idea to accumulate debt just to get rewards because debt with interest is neither free nor beneficial. To really earn money from credit card rewards, you will want to make sure to pay your credit card balance in full every month.

Frequently Asked Questions

Below are answers to common questions about how to make $200 quick.

How can I make a quick $200?

If you want to learn how to make $200 fast in a day, then I highly recommend finding items from around your home to sell, like clothing, jewelry, and video games. This is the easiest way to get started as you probably already own things you can sell.

How can I make an extra $200 a week?

If you want to make an extra $200 a week, I recommend freelance work, which might include writing, graphic design, or proofreading. Also, renting out things you already have, like a spare room, can be a great way to make passive income.

What items can be sold to quickly earn $200?

Look around your home for electronics, clothing, or collectibles that are in good condition but you no longer need or want. You may be able to find lots of things to sell (and have a yard sale) and/or find one or two big things to sell.

How to make $200 fast online from home?

I’ve done a lot of things on the list above to make $200 fast online from home, such as freelance writing, blogging, selling items online, taking part in a focus group, and more.

How To Make $200 Fast – Summary

I hope you enjoyed this article on how to make $200 fast in a day.

As you learned above, you can earn $200 fast by doing a lot of different things, such as by freelancing, starting a business, renting out something you already own, playing games, and more.

The key is to choose what fits your life, how much time you have, and your money needs right now.

What do you think is the best way to make $200 fast?

Apache is functioning normally

January 15, 2024 by Brett Tams

Home loans for disabled buyers are widely available

Contrary to popular belief, people with disabilities are not only eligible for mortgages but also have access to specialized home loans and grants to help disabled people buy a home.

These specialized disability home loans often feature more lenient credit score requirements and lower down payments. Some even offer grants to cover closing costs or modifications to make the home more accessible.

Verify your home buying eligibility. Start here

In this article (Skip to…)

Can I buy a home on disability income?

Yes, you can buy a home on disability income, as long as it is stable, reliable, and expected to continue for the foreseeable future. Lenders, including those offering government-backed loans like FHA and VA loans, accept disability income as a qualifying source for mortgage applications.

According to the Fair Housing Act, lenders can’t inquire about your disability. However, they will inquire about your income, which can be a major barrier for disabled home buyers.

Staying within your lender’s debt-to-income ratio limits can be difficult if you have little or no income from standard employment. Fortunately, many mortgage programs will accept disability income on your application.

Verify your home buying eligibility. Start here

Can I buy a house on SSDI or SSI?

You can buy a house on Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). Both SSDI and SSI are stable sources of income, and lenders accept them as qualification for home loans for disabled.

Eligible income sources for a mortgage can come from:

Long-term disability income from an employer or insurer
Supplemental Security Income (SSI) through Social Security
Social Security Disability Insurance (SSDI)

These types of income are allowed under all the major home loan programs, including conforming, FHA, VA, and USDA mortgages.

However, mortgage lenders set their own lending guidelines and may choose not to accept certain kinds of income. So if you’re denied due to disability income on your application, try again with a different lender. You might receive approval elsewhere.

Disability income requirements

Like any other form of income, disability income needs to be properly documented for a mortgage lender to count it on your home loan application.

The most important thing is that you can verify your disability income will continue for at least three years or that you have a guaranteed job once you’ve recovered at the same income level as before. In the latter case, you would qualify for the lower of the two monthly income streams.

Check your home loan options. Start here

If you receive long-term disability income or insurance benefits, your lender will need to see a disability policy or statement from the payer of the benefits (typically the insurance company or a former employer).

The documentation requirements for SSI and SSDI depend on who is applying for the loan.

If the mortgage applicant is the person receiving SSI or SSDI income, you can document it one of two ways:

The Social Security Administrator’s (SSA) Award Letter; or
Proof of current receipt

If the mortgage applicant is not the person receiving Social Security benefits (for example, a parent buying a home for a disabled child), they will need to present both of the documents above. They’ll also need to prove the income will continue for at least three years—for example, by verifying the recipient’s age.

Home loans for disabled home buyers

People with disabilities and parents who want to buy a home for a disabled child can get special mortgages.

Homeownership assistance programs exist for people who are not disabled but live with qualified disabled people. A caregiver or home health care provider who lives with a disabled family member often qualifies for a special mortgage offering.

Verify your home buying eligibility. Start here

If you qualify for Medicaid in your state or get disability payments from the government, you may be able to use one of a number of special mortgage programs. That still holds true if you have a low income despite working.

Who will own and occupy the property and how they will pay their mortgage will determine the program’s requirements. In addition, they vary depending on whether the program is local, state, or federal.

Here are several of the best-known home loan programs for disabled persons.

1. Fannie Mae HomeReady Loan

Fannie Mae HomeReady is a special conventional loan program that helps people with low to moderate incomes and good credit get affordable financing options, including disabled people.

The program aims to help people who want to buy their own home by giving them competitive interest rates, lower down payment requirements (as low as 3%), and more flexible credit rules. HomeReady also helps disabled borrowers by taking into account non-traditional income sources like Social Security and long-term disability benefits.

In fact, Social Security Disability Insurance (SSDI) and Supplemental Security Insurance (SSI) are both acceptable income sources for the HomeReady loan program.

Who qualifies for HomeReady?

To qualify, disabled home buyers need the following:

A credit score of 620 or higher
At least a 3% down payment
Low- to moderate-income (no more than 80% of their area’s median income)
Must occupy the home as a primary residence

The good news is that your down payment money doesn’t have to come out of your own savings. HomeReady lets you cover the entire down payment using grants, down payment assistance funds, or money gifted from a family member or caretaker.

However, many other mortgage programs require the buyer to pay at least some of the purchase price out of pocket. It can be a challenge if your income is fixed.

Buying with non-occupant co-borrowers under HomeReady

Along with its low down payment, HomeReady offers a big benefit: It allows “non-occupant co-borrowers.” A non-occupant co-borrower does not live with you but is included in your mortgage application process.

You can use your non-occupant co-borrower’s credit history or income to help you qualify for a loan if you don’t meet the credit or income limits on your own.

For example, a parent or sibling with strong credit and a high income are often added to their disabled family member’s mortgage. Remember that the total income counted toward your mortgage qualification must remain below HomeReady income limits.

Fannie Mae does not offer HomeReady loans directly, allowing home buyers to shop among lenders for the best rate.

Check your eligibility for Fannie Mae loans. Start here

2. FHA home loans for disabled persons

FHA loans, the Federal Housing Administration backs, make it easy and affordable to become a homeowner by offering government-insured mortgages with low credit scores and low down payment requirements.

These loans are made for people with low credit scores or low incomes who may have trouble getting traditional mortgages. This includes people with disabilities.

FHA loans accept disability income as a qualifying source, provided it is stable and well-documented. FHA loans help disabled people achieve their dream of homeownership by offering low down payment options (as low as 3.5% for qualified borrowers), flexible credit rules, and competitive interest rates. This gives everyone the same opportunities.

Who qualifies for an FHA loan?

FHA loans allow both SSI and SSDI income on your mortgage application. FHA rules say that you can use any of the following documents to prove disability income:

Federal tax returns
The most recent bank statement showing receipt of income from social services programs
A Proof of Income Letter, also known as a “Budget Letter” or “Benefits Letter” that shows income from the SSA
A copy of the borrower’s Social Security Benefit Statement

Another benefit of the FHA loan is that you can cover 100% of the down payment and closing costs using down payment assistance or gifted money. This eliminates the need to save up a large amount of money before you can buy a home.

On the downside, you’d probably have to pay the FHA’s mortgage insurance until you pay off the house—unless you refinance out of the loan sooner.

Verify your FHA loan eligibility. Start here

3. VA home loans for disabled veterans

The U.S. Department of Veterans Affairs-backed VA loan program is among the best home loan programs available. In addition to having some of the lowest mortgage rates available, VA loans don’t require a down payment. This makes VA loans appealing to any veteran or service member.

But there are more VA loan benefits for veterans with medical problems or disabilities caused by their service:

You can include VA disability income on your mortgage application.
You are exempt from paying the VA loan funding fee. Spouses of veterans who died in the line of duty may also be exempt
There are no minimum service requirements. If you have a service-connected disability, there is no minimum time to serve before you’re eligible for a VA home loan
You may be eligible for a property tax exemption and/or a mortgage tax credit to reduce your taxable income. Requirements vary by state, level of disability, and other factors. Check with your state’s tax authority for more information

You’ll also need to meet the VA’s standard lending requirements to qualify for one of these loans.

Income from disability benefits can be used to satisfy VA loan income requirements. Technically, there’s no minimum credit score to qualify for a VA loan. However, many lenders require a FICO score of at least 580 to 620.

Check your VA loan eligibility. Start here

4. USDA home loans for disabled persons

The USDA loan program, which the U.S. Department of Agriculture backs, is another zero-down mortgage that enables qualified borrowers with disability income to purchase a home. The USDA offers two loan programs: USDA Direct and USDA Guaranteed.

USDA Guaranteed Loans

While the USDA backs these loans, they don’t come directly from the federal government. They come from private lenders that the USDA has approved. Many mainstream mortgage lenders can offer USDA Guaranteed loans.

USDA Guaranteed loan requirements typically include the following:

Income is no higher than 15% above your area’s median income
A credit score of at least 640
The home you’re buying must be in a USDA-approved “rural area”

USDA Direct Loans

Homebuyers with disabilities whose income falls below the area’s median income may qualify for a USDA Single Family Housing Direct Loan.

The Direct Loan is a subsidized mortgage program, meaning that the USDA will help pay for a portion of the homeowner’s monthly mortgage payments. The applicant’s household income determines their eligibility for this housing program and how much payment assistance they will receive.

Another significant advantage of the USDA Direct mortgage program is that fixed interest rates can be as low as 1% (when modified by payment assistance).

Who qualifies for a USDA Direct Loan?

USDA-subsidized home loans are available to borrowers, including disabled borrowers, who:

Do not have safe, decent, or sanitary housing
Are unable to get an affordable mortgage
Meet citizen or eligible non-citizen requirements
Are not barred from federal loan programs
Have qualifying low income for their area

In addition, the home being purchased must meet the following guidelines:

Square footage usually can’t exceed 2,000
The home price must be within local loan limits
The home must not be designed for “income-producing activities”

Those who qualify for a USDA Direct Loan can use the funds to purchase a new or existing home. In addition, they can build, repair, or renovate a house.

The payback period ranges between 33 and 38 years. This extended repayment with the low rate help make payments affordable.

How to apply for a USDA Direct Loan

Unlike USDA Guaranteed loans, private lenders do not offer the USDA Direct Loan. You’ll have to apply with your local Rural Development Office. Be aware that application processing times could be longer and the process could be less convenient. Buyers who can qualify for the USDA Guaranteed loan program should try that first.

Buyers with moderate incomes who don’t qualify for the USDA’s subsidized program can still access a USDA Rural Housing loan. It has looser guidelines but still allows zero down and offers below-market mortgage rates.

Check your USDA loan eligibility. Start here

5. HUD Housing Choice Vouchers (Section 8 homeownership voucher program)

The Section 8 program run by the U.S. Department of Housing and Urban Development (HUD) is best known for offering rental housing assistance to low-income families.

But there’s also a lesser-known Section 8 housing program for home buyers, called the “Housing Choice Voucher (HCV) homeownership program.” What’s more, this program provides housing assistance to disabled buyers who meet its eligibility requirements.

“Keep in mind that not all lenders underwrite these types of loans,” cautions Jon Meyer, The Mortgage Reports loan expert and licensed MLO. “You’ll need to use one of the program’s participating lenders.”

People who are eligible for Section 8 rental assistance can use their voucher to buy a home instead, thanks to the homeownership voucher program. In this case, HUD would assist in covering mortgage payments and other homeownership costs instead of rent.

Who qualifies for HUD’s Housing Choice Voucher program?

To qualify for this housing assistance program, you’ll need a current Section 8 voucher. If you do not have one, you can talk to your local public housing authority about meeting with a housing counselor to start the process.

Keep in mind that not all PHAs participate in the HCV homeownership program. Section 8 voucher waiting lists can be lengthy.

Other requirements for the Section 8 homeownership program include:

Household income not below the monthly federal Supplemental Security Income (SSI) benefit for an individual living alone
Buying an acceptable property according to HUD’s guidelines
Participation in PHA’s pre-assistance homeownership and housing counseling program

For qualified home buyers, the homeownership voucher funds can be used for:

Mortgage principal and interest, real estate taxes, and homeowners insurance
Mortgage insurance
Utilities, maintenance, and major home repairs
Costs to make the home accessible for independent living if needed. Home improvements can include building ramps

As a housing voucher holder, you’ll pay around 30% of your adjusted monthly income for housing.

Financial assistance and grants for disabled home buyers

Unless you qualify for a zero-down USDA or VA loan, you’ll likely need to come up with cash for the down payment and closing costs on your new home. Luckily, many programs can help reduce or get rid of these out-of-pocket costs. Additionally, disabled homebuyers have greater access to these programs than other buyers.

Check your home loan options. Start here

Down payment assistance grants

Every state has a selection of down payment assistance programs (DPAs), which offer funds to help cover home buyers’ down payment and/or closing costs. These are typically geared toward first-time home buyers and home buyers with low incomes.

Down payment assistance comes in two different forms:

Grants: Assistance that never has to be repaid
Loans: Assistance that must be repaid. DPA loans typically have low or no interest, and many are forgivable if the homeowner keeps the home a set number of years (often 5-10)

These assistance programs will typically be offered by your state’s Housing Finance Agency or county and local governments. Some non-profit organizations also provide DPAs.

You can learn more about down payment grants here, or ask your real estate agent or loan officer to help you find programs once you’ve started the home-buying process.

VA grants for disabled veterans

The Department of Veteran Affairs has home loan programs and home modification grants to help disabled veterans buy a home or make their current home more accessible.

To qualify for these programs, the veteran must have a service-connected disability and currently live in or purchase the home in question.

Specially Adapted Housing (SAH) Grants: The VA’s largest grant, used to “buy, build, or change your permanent home” (a home you plan to live in for a long time). This grant is only available to 120 disabled veterans each year
Special Housing Adaptation Grants (SHA) Grants: A lower grant amount than the SAH grant, used to “buy, build, or change your permanent home”
Temporary Residence Adaption (TRA) Grants: Intended to help disabled veterans make accessibility upgrades to a family member’s home they’re living in temporarily. To qualify for a TRA grant, you must be eligible for either an SAH or SHA grant

USDA Single-Family Housing Repair Grant

The U.S. Department of Agriculture offers a Housing Repair Grant to help low-income families “repair, improve, or modernize homes, or remove health and safety hazards.”

The USDA Housing Repair Grant can provide eligible homeowners with a grant of up to $10,000 or a loan of up to $40,000 to pay for home repairs and upgrades. The more popular choice, loans, have a 20-year repayment period and a fixed interest rate of just 1%. You can also combine grants and loans to receive up to $50,000 in total assistance.

To qualify, the borrower must:

Be the homeowner and occupy the house
Be unable to obtain affordable credit elsewhere
Have a family income below the “very low limit by county”
For grants, be age 62 or older and not be able to repay a repair loan

Nonprofit help for disabled home buyers

Four major national programs can help low-income families and disabled people become homeowners.

Verify your home buying eligibility. Start here

National Disability Institute

The NDI’s mission is to build better financial futures for people with disabilities and their families. They do so through employment initiatives, technical housing assistance, financial education, and additional resources.

The NDI works with financial institutions, programs run by local and state governments, and other groups to help people with disabilities find housing.

Habitat for Humanity

Habitat for Humanity builds accessible homes as defined by the Americans with Disabilities Act (ADA). It can also provide affordable mortgages to those approved for its program.

You apply through your local Habitat for Humanity affiliate, and you must be willing to take an active role in the process of constructing your new home. This is known as “sweat equity.”

Note that sweat equity is not limited to the physical construction of the home. Habitat says, “Sweat equity can also include taking homeownership classes or performing volunteer work in a Habitat ReStore.” Homebuyers with disabilities qualify for this program.

Rebuilding Together Americorps

Another option is Rebuilding Together AmericaCorps. This agency prides itself on building affordable housing for families with one or more disabled members.

According to its site, 51% of households served by Rebuilding Together “have a resident with a disability, many of whom have mobility issues that make it difficult to remain safely at home.”

In addition to building affordable housing, the organization works to improve existing homes to make them safer and more accessible, so disabled individuals can remain at home more easily.

Homes for Our Troops

Homes for Our Troops gives veterans hurt while fighting overseas after September 11, 2001 a place to live without a mortgage. The program provides “custom homes that are specially adapted” so they can live in “a safe and barrier-free environment.”

To qualify, you must be retired or in the process of retiring and pass a criminal and credit background check. On the Homes for Our Troops website, you can ask for help and find more information about housing for veterans.

Parents buying a home for a disabled child

Parents and caretakers of people with disabilities can access special mortgage programs to buy a home for their adult child.

These programs allow parents to buy the home as an “owner-occupied residence” even though they won’t live in it. This means they can get better mortgage rates and loan terms than if they bought the property as a second home.

Check your home loan options. Start here

Fannie Mae loans for buying a house for your child

Parents who want to buy a home for their disabled child can choose a Fannie Mae-backed conforming loan as one option. With a Fannie Mae-backed loan, a home purchase counts as owner-occupied if it’s a “parent or legal guardian wanting to provide housing for their handicapped or disabled adult child.”

Fannie’s guidelines state, “if the child is unable to work or does not have sufficient income to qualify for a mortgage on his or her own, the parent or legal guardian is considered the owner/occupant.”

Fannie Mae offers a wide range of conforming mortgage loans for parents or guardians wanting to buy a home for their child. Options include:

3% down “Conventional 97” loans
5% down “Conventional 95” loans
10% down “piggyback loans” with no private mortgage insurance (PMI)
20% down conventional mortgages with no PMI

Since the home is owner-occupied, you can finance it at a low rate without the interest rate markups that come with second homes and investment properties.

If a parent or legal guardian gets disability benefits from Social Security for a child or other dependent, they can use this income to qualify for a mortgage.

In order for the disability income to be eligible, the parent or guardian needs to show an SSA award letter, proof of current receipt, and proof that the income will continue for at least three years.

Options for disabled buyers unable to purchase a home

Navigating the housing market is a unique journey for everyone, and the reality is that not all are in a position to purchase a home.

However, for disabled individuals, there’s a silver lining. While the challenges they face can be multifaceted, many may qualify for special housing assistance designed to address their specific mental illness or physical disabilities. Let’s explore these options.

Receiving Social Security Disability Insurance (SSDI) benefits can be a lifeline, especially for those with mental illnesses. These benefits, while primarily serving as income replacement, can be a pivotal resource in securing housing opportunities.

However, keep in mind that Social Security, while providing crucial old age, survivor, and disability benefits, does not directly extend housing assistance to its beneficiaries.

Nevertheless, there exists a range of social programs designed to cater to the needs of low-income individuals, persons with disabilities, and seniors by offering vital housing support.

As a result, a lot of people who get Social Security can use these different programs because they often fall into one or more of these eligible groups. This gives them access to the important housing help they need.

Housing Choice Voucher Program (Section 8)

Section 8 Housing Choice Vouchers are a godsend for many, especially non-elderly disabled individuals. Designed to assist very low-income families and those with disabilities, these vouchers provide subsidies to rent in the private market.

Public housing agencies distribute these vouchers, and they can be a significant step towards accessible housing.

Income, including SSDI benefits, and disability status are taken into account when determining eligibility.

HUD’s Continuum of Care (CoC) program

The CoC program goes beyond just offering shelter. It’s about creating a comprehensive support system that addresses the root causes of homelessness. By offering specialized supportive services tailored to individual needs, the CoC ensures that everyone, from extremely low-income people to very low income individuals, has a shot at stable, accessible housing.

In situations where individuals with disabilities find themselves facing homelessness, the local CoC becomes a vital lifeline, offering essential assistance in finding immediate shelter for safety and rest. Moreover, the CoC goes beyond providing temporary relief and aims to foster long-term stability by connecting disabled individuals to transitional housing programs.

HUD-Veterans Affairs Supportive Housing (HUD-VASH)

The HUD-VASH program provides supportive housing for our disabled veterans, especially those who are at risk.

This initiative, a collaboration between HUD and the VA, provides both housing options and case management services. The combined effort ensures participants receive the care and support they need.

HUD-VASH vouchers function similarly to other Housing Choice Vouchers (HCVs), but with additional benefits and assistance such as dedicated assistance during your housing search.

National Housing Trust Fund and Section 811

The National Housing Trust Fund, along with Section 811, focuses on creating housing options for the most vulnerable, including those with mental illness, physical disabilities, and extremely low income households.

Section 811, in particular, offers supportive housing for non-elderly people with disabilities. These programs provide subsidies and supportive services, ensuring participants have access to affordable and accessible housing.

Allocations of NHT funds are distributed on a state-by-state basis, tailoring support to the specific needs and priorities of each region. If you are interested, the best course of action is to get in touch with your state’s housing finance agency.

HUD’s $212 Million Boost for Section 811 Program

The U.S. Department of Housing and Urban Development (HUD) has recently announced a $212 million funding opportunity aimed at increasing affordable housing options for persons with disabilities. This funding will not only help in creating new housing but also in rehabilitating existing units.

The funds are specifically designated for the Section 811 Supportive Housing for Persons with Disabilities program. This initiative seeks to both expand housing availability and offer supportive services for those with very-low to extremely-low incomes, making it a significant development in the realm of home loans and grants for disabled individuals.

For those interested in taking advantage of this opportunity, further details can be found in the funding notices for the Section 811 Capital Advance Program and Section 811 Project Rental Assistance. It’s important to note that the deadline for submitting applications is February 8, 2024, so timely action is essential.

If you or someone you know is in need of housing assistance, it’s crucial to gather the necessary contact information for these programs. Local public housing agencies, community centers, and online platforms often have directories and resources.

Remember, subsidies, supportive housing, and other services are within reach. It’s all about taking that first step.

Home loans for disabled buyers FAQ

Check your home loan options. Start here

Can someone with a disability get a home loan?

Yes, common home loans for disabled buyers include government-backed options such as FHA loans and VA loans, which offer lenient credit requirements, lower down payments, and competitive interest rates. Also, programs like Fannie Mae’s HomeReady Mortgage and Freddie Mac’s Home Possible Program are designed to meet the needs of disabled and low- to moderate-income borrowers, making homeownership more accessible and affordable.

What assistance is available for disabled people who want to buy a home?

There are special programs like Fannie Mae’s HomeReady Mortgage and Freddie Mac’s Home Possible Program that can help disabled people buy homes. There are also government-backed loans, like FHA and VA loans, that have easier credit requirements and lower down payments. Also, different state and local housing agencies, non-profit organizations, and grants help disabled people become homeowners by giving them money and resources. Disabled homebuyers can also find help through HUD’s local home-buying programs and the National Council of State Housing Agencies.

Are there home loans for disabled people with bad credit?

Yes, there are home loan options available for disabled people with bad credit. Even though it can be harder to get a mortgage if you have bad credit, FHA loans are well suited for disabled people who want to buy a new home. This type of loan is an attractive option for disabled individuals with bad credit, as they accept credit scores as low as 500 with a 10% down payment or 580 with a 3.5% down payment.

Do FHA loans accept disability income?

Yes, FHA loans accept disability income, as long as it is stable, reliable, and likely to continue for at least three years from the date of the mortgage application. Borrowers using disability income to qualify for an FHA loan need to provide proper documentation to verify the source and amount of the income. This documentation may include: award letters, bank statements, and medical documentation, to name a few.

How does the government define disability?

The U.S. government defines disability through the Social Security Administration (SSA) and the Americans with Disabilities Act (ADA). A person is considered disabled by the SSA when they have a medical condition that keeps them from doing substantial gainful activity for at least 12 months or is expected to result in death. The ADA defines a person with a disability as someone who has a physical or mental impairment that substantially limits one or more major life activities. Both of these definitions focus on how the disability affects a person’s ability to do important tasks or take part in everyday activities.

What is disabled as defined by HUD?

The U.S. Department of Housing and Urban Development (HUD) defines a person with disabilities as someone who has a physical or mental impairment that substantially limits one or more major life activities, has a record of such impairment, or is regarded as having such an impairment. This definition excludes individuals currently using illegal controlled substances, those addicted to a controlled substance, or those convicted for the illegal manufacture or distribution of a controlled substance.

What are the requirements to be eligible for disability housing assistance?

To be eligible for disability housing assistance through HUD, an individual must meet HUD’s definition of “disabled,” have a very low income (generally below 50% of the area median income), be a U.S. citizen or have eligible immigration status, and meet other program-specific requirements, which can vary depending on the specific housing assistance program.

Does HUD have a disability assistance program?

Yes, HUD offers several disability assistance programs. One primary program is Section 811, the Supportive Housing for Persons with Disabilities program. This program provides funding to develop and subsidize rental housing with supportive services for very low and extremely low-income adults with disabilities. Additionally, HUD offers other programs and initiatives that cater to individuals with disabilities, ensuring they have access to affordable, accessible housing and supportive services.

Explore all your home buying options

Mortgage lenders can connect you with loan programs that help people with disabilities become homeowners.

Shop with several competing lenders to find the best program and most competitive interest rate for you. There are many assistance programs for disabled home buyers and especially for low-income families or individuals.

In addition, be sure to ask your loan officer, real estate agent, or Realtor about financial assistance programs available in your area. These programs can make buying your own home more affordable than many people expect.

Time to make a move? Let us find the right mortgage for you

Source: themortgagereports.com

Apache is functioning normally

January 14, 2024 by Brett Tams

Landlords or property managers are essential people in the apartment or home rental process. They help you sign and understand the lease, fix and address issues within your apartment, ensure the apartment and complex remain safe and clean and are your go-to person for any problems.

But, it’s important to know the boundaries of what a property manager can and cannot do. Read on for more information about landlord-tenant law and your rights as a renter. Knowing these 10 things a landlord cannot do will help you feel safe in your home.

1. Enter without proper notice

Your landlord is not allowed to enter your apartment without giving proper notice.

In many states, the landlord may not enter without first giving 24-hours notice. The format of notice may vary from place to place. Some apartment contracts state that notice must come in written or electronic form. Double-check your lease before moving in so you can know what to expect.

Once the landlord has permission, the tenant must let them into the apartment. Property managers usually enter to make repairs, to show the apartment to future tenants or to perform a routine check.

The only time the landlord may enter without notice is if there is a true emergency.

2. Force a tenant to leave

While evicting a tenant is legal, doing it without going through proper legal channels is not. This means that the landlord must give the tenant notice before evicting them.

The amount of notice does vary from place to place — ranging anywhere from days to months. If the landlord evicts a tenant without doing it properly, they can face serious consequences.

They also cannot turn off the tenant’s utilities without notice, especially if the apartment is in an area with extreme weather.

3. Raise your rent randomly

Once you sign a lease, it is a legally binding contract. This means that the landlord can not randomly raise the rent without cause.

There are a few instances where the rent can go up —some of these include the addition of a pet or significant remodeling.

The other time rent can go up is if the apartment is within the city’s rent control area. These usually state that landlords can raise the rent only by a certain percentage as specified. This is something you’ll want to check before signing a lease. However, outside of these situations, the rental rate negotiated in your initial lease holds strong.

4. Discriminate against a tenant

Landlords can not discriminate against current or future tenants. According to the Fair Housing Act, landlords cannot discriminate based on nationality, gender, race, disability or family status.

The Fair Housing Act also states that the landlord cannot say that an apartment is not available when it is, can’t harass you and can’t end a lease due to race, gender or family status.

5. Prohibit service animals

If you have a trained service animal according to the Americans with Disabilities Act, a landlord must rent to you even if there is a “no pet” rule.

Service animals, such as seeing-eye dogs, are exempt. You’ll likely have to show paperwork about your service animal, but, you will be able to rent an apartment with one under the law.

6. Allow lead content

Landlords are not allowed to rent apartments that contain lead-based paint or any lead content. This is more common in older homes or apartments but it is still something to consider.

They are responsible for checking the lead content, making repairs and ensuring they do not rent dangerous apartments with lead exposure to people.

7. Use a security deposit for wear and tear

Security deposits are part of almost every leasing contract. They are typically held for the duration of the lease and given back when the lease is over.

The landlord is not allowed to keep the security deposit to recover things such as normal wear-and-tear.

The only time they can keep it is if there are unusual repairs that aren’t normal wear-and-tear or if you break a lease early. They also aren’t allowed to charge a security deposit that is over the state’s limit. This changes from state to state so make sure to double-check what your state limits it at.

8. Refuse to make reasonable repairs

A landlord’s job is to make sure that your apartment is safe and livable. Refusing to make reasonable repairs could end in legal action against them.

Things such as removing mold or lead paint or fixing the utilities are something the landlord must help with. These are repairs that could endanger the tenant.

It is also illegal for landlords to ask tenants to make major repairs such as fixing the balconies or stairs.

9. Use your space

As per your leasing agreement, it is the renter’s right to the space you’re leasing. This means that the landlord cannot withhold space that is legally yours.

Spaces such as parking garages or storage units cannot be used for the landlord’s personal use.

10. Change the locks

Your landlord is not allowed to change your locks without letting you know. If they want to remove you from the apartment, they must go through legal channels to do so. Changing your locks without notice could end in serious legal troubles for the landlord.

What to do if your landlord breaks these rules

If you find yourself with a landlord that breaks any of these laws, you have some options. First, file a claim with the Department of Housing and Urban Development.

Make requests in writing and photograph any damage if your landlord refuses to make repairs. Should your landlord continue to neglect the problems, then you can call your local department of health and report the problems. If your landlord changes the locks without telling you, you can call the police. The landlord does not have the right to refuse you access to your apartment, even if they want to evict you. If you ever file a legal claim against your landlord they are not legally allowed to retaliate against you.

Know your rights

It is so important to know your renters’ rights. There are landlord-tenant laws in place for this very reason. Your landlord can not take advantage of you when renting an apartment. Make sure to do your research on landlord-tenant law and know exactly what a landlord cannot do so you’re not taken advantage of. With this knowledge, you’ll be better served and ready to rent an apartment.

Ashley Singleton is a writer who loves following and writing about current lifestyle, DIY and home improvement trends. You can read some of her other work on the Lady Spike Media website. In her spare time, she performs stand-up comedy in Los Angeles.

Source: rent.com

Apache is functioning normally

January 14, 2024 by Brett Tams

How to pick the best loan for home improvements

Home renovations can be expensive. But the good news is that you don’t have to pay out of pocket.

Home improvement loans let you finance the cost of upgrades and repairs to your home.

Some — like the FHA 203(k) mortgage — are specialized for home renovation projects, while second mortgage options — like home equity loans and HELOCs — can provide cash for a remodel or any other purpose. Your best financing option for home improvements depends on your needs. Here’s what you should know.

Check home improvement loan options and rates. Start here

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What is a home improvement loan?

A home improvement loan is a financial tool that allows you to borrow money for various home projects, such as repairs, renovations, or upgrades.

Unlike a secured loan like a second mortgage, home improvement loans are often unsecured personal loans, meaning you don’t have to put up your home as collateral. You get the money in a lump sum and pay it back over a predetermined period, which can range from one to seven years.

Now, you might be wondering how this is different from a home renovation loan. While the terms are often used interchangeably, there can be subtle differences.

Home improvement loans are generally more flexible and can be used for any type of home project, from installing a new roof to landscaping. Home renovation loans, on the other hand, are often more specific and may require you to use the funds for particular types of renovations, like kitchen or bathroom remodels.

How does a home improvement loan work?

So, you’ve decided to spruce up your home, and you’re considering a home improvement loan. But how does it work? Once you’re approved, the lender will give you the money in a lump sum. You start repaying the loan almost immediately, usually in fixed monthly installments. The interest rate you’ll pay depends on various factors, including your credit score and the lender’s terms.

Be mindful of additional costs like origination fees, which can range from 1% to 8% of the loan amount. Unlike a credit card, where you can keep using the available credit as you pay it off, the loan amount is fixed. If you find that you need more money for your project, you’ll have to apply for another loan, which could affect your credit score.

Home improvement loan rates

Interest rates for home improvement loans can vary widely, generally ranging from 5% to 36%. Your credit score plays a significant role in determining your rate—the better your credit, the more favorable your rate. Some lenders even offer an autopay discount if you link a bank account for automatic payments.

You can also prequalify to check your likely interest rate without affecting your credit score, making it easier to plan for the loan purpose, whether it’s a new kitchen or fixing a leaky roof.

So, whether you’re dreaming of solar panels or finally fixing up your master bedroom, a home improvement loan can be a practical way to finance your projects. Just make sure to read the fine print and understand all the terms, including any potential autopay discounts and bank account requirements, before you apply.

Types of home improvement loans

1. Home equity loan

A home equity loan (HEL) is a financial instrument that lets you borrow money using the equity you’ve built up in your home as collateral. The equity is determined by subtracting your existing mortgage loan balance from your current home value. Unlike a cash-out refinance, a home equity loan “issues loan funding as a single payment upfront. It’s similar to a second mortgage,” says Bruce Ailion, Realtor and real estate attorney. “You would continue making payments on your original mortgage while repaying the home equity loan.”

Check home equity loan options and rates. Start here

This kind of loan is particularly useful for big, one-time expenditures like home remodeling. It offers a fixed interest rate, and the loan terms can range from five to 30 years. You could potentially borrow up to 100% of your home’s equity.

However, there are some cons to consider. Since you’re essentially taking on a second loan, you’ll have an additional monthly payment if you still have a balance on your original mortgage. Also, the lender will usually charge closing costs ranging from 2% to 5% of the loan balance, as well as potential origination fees. Because the loan provides a lump-sum payment, careful budgeting is necessary to ensure the funds are used effectively.

As a bonus, “a home equity loan, or HELOC, may also be tax-deductible,” says Doug Leever with Tropical Financial Credit Union, member FDIC. “Check with your CPA or tax advisor to be sure.”

2. HELOC (home equity line of credit)

A Home Equity Line of Credit (HELOC) is another option for tapping into your home’s equity without going through the process of a full refinance. Unlike a standard home equity loan that provides a lump sum upfront, a HELOC functions more like a credit card. You’re given a pre-approved limit and can borrow against that limit as you need, paying interest only on the amount you’ve actually borrowed.

Check your HELOC options. Start here

While there’s more flexibility because you don’t have to borrow the entire amount at once, be aware that by the end of the term, “the loan must be paid in full. Or the HELOC can convert to an amortizing loan,” says Ailion. “Note that the lender can be permitted to change the terms over the loan’s life. This can reduce the amount you can borrow if, for instance, your credit goes down.”

The pros of a HELOC include minimal or potentially no closing costs, and loan payments that vary according to how much you’ve borrowed. It offers a revolving balance, which means you can re-use the funds after repayment. This kind of financial instrument may be ideal for ongoing or long-term projects that don’t require a large sum upfront.

“HELOCs offer flexibility, and you only pull money out when needed, within the maximum loan amount. And the credit line is available for up to 10 years, which is your repayment period.” Leever says.

3. Cash-out refinance

A cash-out refinance is a viable option if you’re considering home improvements or other significant financial needs. When opting for a cash-out refinance, you essentially take on a new, larger mortgage than your existing one and then pocket the difference in cash.

This cash comes from your home’s value and can be used for various purposes, including home improvement projects like finishing a basement or remodeling a kitchen. However, the money can also be used for other things, like paying off high-interest debt, covering education expenses, or even buying a second home. Importantly, a cash-out refinance is most beneficial when current market rates are lower than your existing mortgage rate.

Check your eligibility for a cash-out refinance. Start here

The advantages of going for a cash-out refinance include the opportunity to reduce your mortgage rate or loan term, which could potentially result in paying off your home earlier. For instance, if you initially had a 30-year mortgage with 20 years remaining, you could refinance to a 15-year loan, effectively paying off your home five years ahead of schedule. Plus, you only have to worry about one mortgage payment.

However, there are downsides. Cash-out refinances tend to have higher closing costs that apply to the entire loan amount, not just the cash you’re taking out. The new loan will also have a larger balance than your current mortgage, and refinancing effectively restarts your loan term length.

4. FHA 203(k) rehab loan

The FHA 203(k) rehab loan is backed by the Federal Housing Administration that consolidates the cost of a home mortgage and home improvements into a single loan, which makes it particularly useful for those buying fixer-uppers.

Check your eligibility for an FHA 203(k) loan. Start here

With this program, you don’t need to apply for two different loans or pay closing costs twice; you finance both the house purchase and the necessary renovations at the same time. The loan comes with several benefits like a low down payment requirement of just 3.5% and a minimum credit score requirement of 620, making it accessible even if you don’t have perfect credit. Additionally, first-time home buyer status is not a requirement for this loan.

However, there are some limitations and downsides to be aware of. The FHA 203(k) loan is specifically designed for older homes in need of repairs, rather than new properties. The loan also includes both upfront and ongoing monthly mortgage insurance premiums. Renovation costs have to be at least $5,000, and the loan restricts the use of funds to certain approved home improvement projects.

According to Jon Meyer, a loan expert at The Mortgage Reports, “FHA 203(k) loans can be drawn out and difficult to get approved. If you go this route, it’s important to choose a lender and loan officer familiar with the 203(k) process.”

5. Unsecured personal loan

If you’re looking to finance home improvements but don’t have sufficient home equity, a personal loan could be a viable option. Unlike home equity lines of credit (HELOCs), personal loans are unsecured, meaning your home is not used as collateral. This feature often allows for a speedy approval process, sometimes getting you funds on the next business day or even the same day.

Check home improvement loan options and rates. Start here

The repayment terms for personal loans are less flexible, usually ranging between two and five years. Although you’ll most likely face closing costs, personal loans can be easier to access for those who don’t have much home equity to borrow against. They can also be a good choice for emergency repairs, such as a broken water heater or HVAC system that needs immediate replacement.

However, there are notable downsides to consider. Unsecured personal loans generally have higher interest rates compared to HELOCs and lower borrowing limits. The short repayment terms could put financial strain on your budget. Additionally, you may encounter prepayment penalties and expensive late fees. Financial expert Meyer describes personal loans as the “least advisable” option for homeowners, suggesting that they should be considered carefully and perhaps as a last resort.

6. Credit cards

Using a credit card can be the fastest and most straightforward way to finance your home improvement projects, eliminating the need for a lengthy loan application. However, you’ll need to be cautious about credit limits, especially if your renovation costs are high.

You might need a card with a higher limit or even multiple cards to cover the costs. The interest rates are generally higher compared to home improvement loans, but some cards offer an introductory 0% annual percentage rate (APR) for up to 18 months, which can be a good deal if you’re sure you can repay the balance within that time frame.

Check home improvement loan options and rates. Start here

Credit cards might make sense in emergency situations where you need immediate funding. For longer-term financing, though, they’re not recommended. If you do opt for credit card financing initially, you can still get a secured loan later on to clear the credit card debt, thus potentially saving on high-interest payments.

How do you choose the best home improvement loan for you?

The best home improvement loan will match your specific lifestyle needs and unique financial situation. So let’s narrow down your options with a few questions.

Check your home improvement loan options. Start here

Do you have home equity available?

If so, you can access the lowest rates by borrowing against the equity in your home with a cash-out refinance, a home equity loan, or a home equity line of credit.

Here are a few tips for choosing between a HELOC, home equity loan, or cash-out refi:

Can you get a lower interest rate? If so, a cash-out refinance could save money on your current mortgage and your home improvement loan simultaneously
Are you doing a big, single project like a home remodel? Consider a simple home equity loan to tap into your equity at a fixed rate
Do you have a series of remodeling projects coming up? When you plan to remodel your home room by room or project by project, a home equity line of credit (HELOC) is convenient and worth the higher loan rate compared to a simple home equity loan

Are you buying a fixer-upper?

If so, check out the FHA 203(k) program. This is the only loan on our list that bundles home improvement costs with your home purchase loan. Just review the guidelines with your loan officer to ensure you understand the disbursement of funds rules.

Taking out just one mortgage to cover both needs will save you money on closing costs and is ultimately a more straightforward process.

“The only time I’d recommend the FHA203(k) program is when buying a fixer-upper,” says Meyer. “But I would still advise homeowners to explore other loan options as well.”

Do you need funds immediately?

When you need an emergency home repair and don’t have time for a loan application, you may have to consider a personal loan or even a credit card.

Which is better?

Can you get a credit card with an introductory 0% APR? If your credit history is strong enough to qualify you for this type of card, you can use it to finance emergency repairs. But keep in mind that if you’re applying for a new credit card, it can take up to 10 business days to arrive in the mail. Later, before the 0% APR promotion expires, you can get a home equity loan or a personal loan to avoid paying the card’s variable-rate APR
Would you prefer an installment loan with a fixed rate? If so, apply for a personal loan, especially if you have excellent credit

Just remember that these options have significantly higher rates than secured loans. So you’ll want to reign in the amount you’re borrowing as much as possible and stay on top of your payments.

How to get a home improvement loan

Getting a home improvement loan is similar to getting a mortgage. You’ll want to compare rates and monthly payments, prepare your financial documentation, and then apply for the loan.

Check home improvement loan options and rates. Start here

1. Check your financial situation

Check your credit score and debt-to-income ratio. Lenders use your credit report to establish your creditworthiness. Generally speaking, lower rates go to those with higher credit scores. You’ll also want to understand your debt-to-income ratio (DTI). It tells lenders how much money you can comfortably borrow.

2. Compare lenders and loan types

Gather loan offers from multiple lenders and compare costs and terms with other types of financing. Look for any benefits, such as rate discounts, a lender might provide for enrolling in autopay. Also, keep an eye out for disadvantages, including minimum loan amounts or expensive late payment fees.

3. Gather your loan documents

Be prepared to verify your income and financial information with documentation. This includes pay stubs, W-2s (or 1099s if you’re self-employed), and bank statements, to name a few.

4. Complete the loan application process

Depending on the lender you choose, you may have a fully online loan application, one that is conducted via phone and email, or even one that is conducted in person at a local branch. In some cases, your mortgage application could be a mix of these options. Your lender will review your application and likely order a home appraisal, depending on the type of loan. You’ll get approved and receive funding if your finances are in good shape.

Get started on your home improvement loan. Start here

Home improvement loan lenders

When considering a home improvement loan, it’s necessary to explore various lending options to find the one that best suits your needs. The lending landscape for home improvement is diverse, featuring traditional banks, credit unions, and online lenders. Each type of lender offers different interest rates, loan terms, and eligibility criteria.

It’s advisable to prequalify with multiple lenders to get an estimate of your loan rates, which generally doesn’t affect your credit score. This way, you can compare offers and choose the most favorable terms for your renovation project.

Among the popular choices in the market, Sofi and LightStream stand out for their competitive rates, easy online application, and customer-friendly terms. Both are equal housing lenders, ensuring they adhere to federal anti-discrimination laws. In addition to these, other lenders like Wells Fargo and LendingClub also offer home improvement loans with varying terms and conditions.

How can I use the money from a home improvement loan?

When you do a cash-out refinance, a home equity line of credit, or a home equity loan, you can use the proceeds on anything — even putting the cash into your checking account. You could pay off credit card debt, buy a new car, pay off student loans, or even fund a two-week vacation. But should you?

It’s your money, and you get to decide. But spending home equity on improving your home is often the best idea because you can increase the value of your home. Spending $40,000 on a new kitchen remodel or $20,000 on finishing your basement could add significant value to your home. And that investment would be appreciated along with your home.

That said, if you’re paying tons of interest on credit card debt, using your home equity to pay that off would make sense, too.

Average costs of home renovations

Home renovations can vary widely in cost depending on the scope of the project, the quality of the materials used, and the region where you live. However, here’s a general idea of what you might expect to pay for various types of home renovations.

Renovation Type	Average Cost Range
Kitchen Remodel	$10,000 – $50,000
Bathroom Remodel	$5,000 – $25,000
Master Bedroom Remodel	$1,500 – $10,000
New Roof	$5,000 – $11,000
Exterior Paint	$6,000 – $20,000
Interior Paint	$1,500 – $10,000
New Deck	$15,000 – $40,000
Solar Panel Installation	$15,000 – $25,000
Window Replacement	$5,000 – $15,000

The information is based on data from HomeGuide.com and is current as of August 2023.

Please note that these are just average figures, and the actual costs can vary. For instance, a high-end kitchen remodel could cost significantly more, especially if you’re planning to use custom cabinetry and high-end appliances. Similarly, the cost of a new deck can vary depending on the size and type of materials used.

Home improvement loans FAQ

Check home improvement loan options and rates. Start here

What type of loan is best for home improvements?

The best loan for home improvements depends on your finances. If you have accumulated a lot of equity in your home, a HELOC, or home equity loan, might be suitable. Or, you might use a cash-out refinance for home improvements if you can also lower your interest rate or shorten the current loan term. Those without equity or refinance options might use a personal loan or credit cards to fund home improvements instead.

Should I get a personal loan for home improvements?

That depends. We’d recommend looking at your options for a refinance or home equity-based loan before using a personal loan for home improvements. That’s because interest rates on personal loans are often much higher. But if you don’t have a lot of equity to borrow from, using a personal loan for home improvements might be the right move.

What credit score is needed for a home improvement loan?

The credit score requirements for a home improvement loan depend on the loan type. With an FHA 203(k) rehab loan, you likely need a good credit score of 620 or higher. Cash-out refinancing typically requires at least 620. If you use a HELOC, or home equity loan, for home improvements, you’ll need a FICO score of 680–700 or higher. For a personal loan or credit card, aim for a score in the low-to-mid 700s. These have higher interest rates than home improvement loans, but a stronger credit profile will help lower your rate.

What is the best renovation loan

If you’re buying a fixer-upper or renovating an older home, the best renovation loan might be the FHA 203(k) mortgage. The 203(k) rehab loan lets you finance (or refinance) the home and renovation costs into a single loan, so you avoid paying double closing costs and interest rates. If your home is newer or of higher value, the best renovation loan is often a cash-out refinance. This lets you tap the equity in your current home and refinance into a lower mortgage rate at the same time.

Is a home improvement loan tax deductible?

Home improvement loans are generally not tax-deductible. However, if you finance your home improvement using a refinance or home equity loan, some of the costs might be tax-deductible.

Disclaimer: The Mortgage Reports do not provide tax advice. Be sure to consult a tax professional if you have any questions about your taxes.

Shop around for your best home improvement loan

As with anything in life, it pays to compare all your options. So don’t just settle on the first loan offer you find.

Compare lenders, mortgage types, rates, and terms carefully to find the best loan for home improvements.

Time to make a move? Let us find the right mortgage for you

Source: themortgagereports.com

Apache is functioning normally

January 14, 2024 by Brett Tams

Today’s mortgage rates

Average mortgage rates fell moderately yesterday. That was a bit of a surprise (though a welcome one) because yesterday’s inflation report would normally have pushed them higher. Read on for why markets might have reacted unexpectedly.

Earlier this morning, markets were signaling that mortgage rates today might fall. But these early mini-trends often switch direction or speed as the hours pass — as we saw yesterday.

Current mortgage and refinance rates

Find your lowest rate. Start here

Program	Mortgage Rate	APR*	Change
Conventional 30-year fixed	7.015%	7.03%	-0.07

Conventional 15-year fixed	6.28%	6.31%	-0.1

Conventional 20-year fixed	6.91%	6.93%	-0.065

Conventional 10-year fixed	6.09%	6.125%	-0.14

30-year fixed FHA	5.875%	6.545%	-0.3

30-year fixed VA	5.99%	6.14%	-0.085

5/1 ARM Conventional	6.31%	7.56%	-0.005

Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.

Should you lock your mortgage rate today?

Yesterday’s fall in mortgage rates showed markets continuing to have faith in a “soft landing,” which will occur if we continue to see falling inflation together with a resilient economy. Indeed, it suggests that faith can’t be shaken even by occasional unfriendly data.

I think a soft landing remains the most likely scenario for 2024.

So, my personal rate lock recommendations are:

LOCK if closing in 7 days
FLOAT if closing in 15 days
FLOAT if closing in 30 days
FLOAT if closing in 45 days
FLOAT if closing in 60 days

However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.

>Related: 7 Tips to get the best refinance rate

Market data affecting today’s mortgage rates

Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data are mostly compared with roughly the same time the business day before, so much of the movement will often have happened in the previous session. The numbers are:

The yield on 10-year Treasury notes tumbled to 3.93% from 4.04%. (Good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were rising this morning. (Bad for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices increased to $74.42 from $72.80 a barrel. (Bad for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Gold prices climbed to $2,065 from $2,036 an ounce. (Good for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — inched lower to 73 from 75. (Good for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are often better than higher ones

*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.

Caveats about markets and rates

Before the pandemic, post-pandemic upheavals, and war in Ukraine, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.

So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today look likely to decrease. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.

Find your lowest rate. Start here

What’s driving mortgage rates today?

Yesterday

I suspect that Wall Street has bought the narrative of a soft landing (see above) and, for now, is prepared to stick to it through thick and thin. That’s my only real explanation for why mortgage rates fell yesterday despite an unfriendly inflation report.

True, some saw the report as less unfriendly than others. The New York Times (paywall), for example, reported it under the headline, “Price Increases Tick Higher, but Show Moderation.”

But the consumer price index (CPI) was undeniably worse than expected. And that would normally exert some upward pressure on mortgage rates. Still, let’s not give this gift horse too close a dental inspection.

Today

Producer price indexes (PPIs) are typically less important than CPIs. But they still sometimes affect mortgage rates.

Today’s PPI showed factory-gate and wholesale prices rising more slowly than expected. And that would normally be good for mortgage rates. However, as we saw yesterday, markets don’t always follow such “rules.”

Next week

Rather like this week, next week starts slowly but contains an important economic report. Things are especially quiet on Monday because bond markets are closed for Martin Luther King Day. And closed bond markets mean mortgage rates shouldn’t move. (So, we shall not be publishing this daily report on Monday.)

Tuesday’s similarly dull with no economic reports scheduled for release.

However, Wednesday is potentially next week’s big day for mortgage rates, led by the retail sales report for December. But, after that, things tail off again.

Don’t forget you can always learn more about what’s driving mortgage rates in the most recent weekend edition of this daily report. These provide a more detailed analysis of what’s happening. They are published each Saturday morning soon after 10 a.m. (ET) and include a preview of the following week.

Recent trends

According to Freddie Mac’s archives, the weekly all-time lowest rate for 30-year, fixed-rate mortgages was set on Jan. 7, 2021, when it stood at 2.65%. The weekly all-time high was 18.63% on Sep. 10, 1981.

Freddie’s Jan. 11 report put that same weekly average at 6.66%, up from the previous week’s 6.62%. But note that Freddie’s data are almost always out of date by the time it announces its weekly figures.

Expert forecasts for mortgage rates

Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.

And here are their rate forecasts for the last quarter (Q4/23) and the following three quarters (Q1/24, Q2/24 and Q3/24).

The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were updated on Dec. 19 and the MBA’s on Dec. 13.

Forecaster	Q4/23	Q1/24	Q2/24	Q3/24
Fannie Mae	7.4%	7.0%	6.8%	6.6%
MBA	7.4%	7.0%	6.6%	6.3%

Of course, given so many unknowables, both these forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.

Important notes on today’s mortgage rates

Here are some things you need to know:

Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.

A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.

Find your lowest mortgage rate today

You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:

“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”

In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?

Verify your new rate

Mortgage rate methodology

The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.

How your mortgage interest rate is determined

Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.

Factors that determine your mortgage interest rate include:

Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate

Remember, every mortgage lender weighs these factors a little differently.

To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.

Verify your new rate. Start here

Are refinance rates the same as mortgage rates?

Rates for a home purchase and mortgage refinance are often similar.

However, some lenders will charge more for a refinance under certain circumstances.

Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.

This creates a tidal wave of new work for mortgage lenders.

Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.

In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.

Also, cashing out equity can result in a higher rate when refinancing.

Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.

Check your refinance rates today. Start here

How to get the lowest mortgage or refinance rate

Since rates can vary, always shop around when buying a house or refinancing a mortgage.

Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.

Here are a few tips to keep in mind:

1. Get multiple quotes

Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.

Some simply go with the bank they use for checking and savings since that can seem easiest.

However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.

So get multiple quotes from at least three different lenders to find the right one for you.

2. Compare Loan Estimates

When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.

You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:

Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs

Remember, the lowest interest rate isn’t always the best deal.

Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.

Also, pay close attention to your closing costs.

Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.

3. Negotiate your mortgage rate

You can also negotiate your mortgage rate to get a better deal.

Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.

You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.

And if they’re not, keep shopping — there’s a good chance someone will.

Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?

Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).

Fixed-rate mortgages (FRMs) have interest rates that never change unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.

Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.

With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.

Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.

In most other cases, a fixed-rate mortgage is typically the safer and better choice.

Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.

How your credit score affects your mortgage rate

You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.

This is because credit history determines risk level.

Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.

For the best rate, aim for a credit score of 720 or higher.

Mortgage programs that don’t require a high score include:

Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down
payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score

Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.

If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.

You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.

How big of a down payment do I need?

Nowadays, mortgage programs don’t require the conventional 20 percent down.

In fact, first-time home buyers put only 6 percent down on average.

Down payment minimums vary depending on the loan program. For example:

Conventional home loans require a down payment between 3%
and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down

Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.

If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.

This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.

But a big down payment is not required.

For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.

Verify your new rate. Start here

Choosing the right type of home loan

No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.

The five main types of mortgages include:

Fixed-rate mortgage (FRM)

Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.

The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.

Adjustable-rate mortgage (ARM)

Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.

Your rate and payment can rise or fall annually depending on how the broader interest rate trends.

ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).

For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.

Jumbo mortgage

A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.

In 2023, the conforming loan limit is $726,200 in most areas.

Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.

FHA mortgage

A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.

VA mortgage

A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.

VA loans allow no down payment and have exceptionally low mortgage rates.

USDA mortgage

USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.

Bank statement loan

Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account. This is an option for self-employed or seasonally-employed borrowers.

Portfolio/Non-QM loan

These are mortgages that lenders don’t sell on the secondary mortgage market. This gives lenders the flexibility to set their own guidelines.

Non-QM loans may have lower credit score requirements, or offer low-down-payment options without mortgage insurance.

Choosing the right mortgage lender

The lender or loan program that’s right for one person might not be right for another.

Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.

Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.

Typically, it only takes a few hours to get quotes from multiple lenders — and it could save you thousands in the long run.

Time to make a move? Let us find the right mortgage for you

Current mortgage rates methodology

We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.

Source: themortgagereports.com

Apache is functioning normally

January 14, 2024 by Brett Tams

Last week, housing inventory grew and the number of price cuts fell, which is expected at this time of the year. I hope the next thing we see is housing inventory grow at the level it typically does in January or February instead of being delayed until March or April. Last year at this time, inventory rose week to week and I was hopeful for a typical spring inventory year, but the seasonal bottom didn’t actually happen until April 14. So let’s hope for more home sellers in 2024.

Weekly housing inventory data

Here is a look at the first week of the year:

Weekly inventory change (Jan. 5-12): Inventory rose from 499,143 to 505,223
Same week last year (Jan. 6-13): Inventory rose from 471,349 to 473,406
The inventory bottom for 2022 was 240,194
The inventory peak for 2023 is 569,898
For context, active listings for this week in 2015 were 931,002

I don’t want to jinx this because active inventory rose last year at this time. In any case, we will keep an eye on housing inventory going out in the future. As you can see, we are still a bit away from my ultimate goal of having total active listings back to 2019 levels.

Price cut percentage

Every year, one third of all homes take a price cut before they sell — there is nothing abnormal about that. However, this data line accelerates when mortgage rates rise and demand gets hit harder. A perfect example was 2022: when housing inventory rose, the percentage of price cuts rose and home sales crashed. This is not what we’re seeing now. Sales aren’t growing much, but they’re not crashing as they did in 2022 so we track this data line religiously every week to get clues.

This is the price-cut percentage for the same week over the last few years:

2024 32.2%
2023 35.8%
2022 21.7%

New listing data

New listings data can grow in 2024, something I talked about on CNBC last year as this data line didn’t trend much lower when mortgage rates were heading toward 8%. We took an affordability hit after July of 2022 and since most sellers are also buyers, it was too expensive to move, or you couldn’t qualify to sell to buy another house, directly impacting housing inventory.

Every year, wages grow and home-price growth has significantly slowed since the madness after COVID-19. We can grow new listings from these depressed levels and get more demand. While this isn’t the Silver Tsunami some have promised, any growth back to 2021-2022 levels is a plus.

2024 39,640
2023 36,804
2022 37,091

Mortgage rates and the 10-year yield

The 10-year yield is the key for housing in 2024. In my 2024 forecast, I have the 10-year yield range between 3.21%-4.25%, with a critical line in the sand at 3.37%. If the economic data stays firm, we shouldn’t break below 3.21%, but if the labor data gets weaker, that line in the sand — which I call the Gandalf line, as in “you shall not pass” — will be tested. This 10-year yield range means mortgage rates between 5.75%-7.25%. This assumes spreads are still bad.

Last week, even with the CPI and PPI inflation data, the 10-year yield stayed in a small range between 3.92%-4.07%. We have already moved lower in a big fashion from 5.04% to 3.80%; that 3.80% level is critical for now. Mortgage ranges have been calm as the spreads have been getting better. Mortgage rates started the week at 6.74%, reached as high as 6.80% and ended the week at 6.69%. We want to watch labor data and track if the spreads improve this year because mortgage rates should be 0.75% to 1.125% lower today but aren’t due to the spreads.

Next week, retail sales could be a driver of the 10-year yield, and therefore mortgage rates. Also, any Federal Reserve presidents talking about slowing down the quantitative tightening process would be a plus. This is something that they have been talking about recently.

Purchase application data

One of the things I have stressed over the years is that nobody should put any weight on the purchase application data during the last few weeks of the year because hardly anyone fills out a mortgage application during Christmas and New Years. And since the data takes a seasonal low dive, it tends to then bounce during the first week of the year, so we should ignore the first week of the year as well.

This is why I stress tracking purchase applications the second week of January to the first week of May. Volumes always tend to fall after May. With that said, purchase applications did have 6% week-to-week growth last week, but what was more encouraging to see is that when mortgage rates fell recently from 8% to almost 6.50%, we had six weeks of positive growth.

We can now officially start the seasonal housing period and the year-to-date counts on how many positive weeks we have versus negative weeks and where rates move. Remember that last year, even with mortgage rates ranging between 6%-8%, we had 23 positive and 24 negative prints and two flat prints for the year. Imagine a year with lower rates, and one where we don’t have a 2% increase in the calendar year. As you can see in the chart below, the bar is low for growth.

The week ahead: Housing week and CNBC

We have a ton of housing data coming up this week, including builders’ confidence, housing starts and the existing home sales report. Retail sales also come out this week, and that report might move the bond market early in the morning. And unless the schedule changes, I will be on CNBC on Thursday on the Exchange segment, talking about the housing starts data.

The key for 2024: track all economic data religiously to see its impact on the 10-year yield!

Source: housingwire.com

Apache is functioning normally

January 14, 2024 by Brett Tams

When people think of the most affordable neighborhoods in Chicago, they don’t always think being close to the lakefront is an option.

In Chicago, most of the pricier rent districts are those closer to the Loop. This means it’s entirely possible to find an apartment in Chicago that’s affordable, safe and close to plenty of nightlife and entertainment options for less than $2,000 a month.

Here are 10 of the most affordable neighborhoods in Chicago, depending on the type of amenities you like within your community.

Photo credit Megy Karydes

Logan Square’s identity has changed so much within the past 10 years. Once a sleepy neighborhood with a large immigrant population, this community is now teeming with young, hip Chicagoans that don’t want to pay top dollar for a home in the nearby neighborhoods of Wicker Park and Bucktown.

Logan Square is also still home to plenty of immigrant families who’ve been living in the neighborhood for years, giving it a true neighborhood feel. Rental rates here are quickly rising, but you can still get more space for your buck and be near the picturesque Logan and Kedzie boulevards.

Logan Square is serviced by Chicago’s Blue Line, giving residents easy access to all of the city’s neighborhoods. The Chicago Transit Authority (CTA) also services the area with a variety of bus routes, making transit a breeze. However, residents rarely need to leave the neighborhood unless they want to do so, as there are plenty of nightlife options, restaurants, shops and amenities within Logan Square.

Photo credit Megy Karydes

Just north of Logan Square and three stops away on the Blue Line is Irving Park. Much of this neighborhood’s charm lies in its beautiful homes and suburban-like setting.

Although it’s still distinctly urban, Irving Park has a much quieter feel than some adjacent areas. If you’re looking for pretty tree-lined streets, old houses and a community vibe, Irving Park is a good option to consider.

In addition to the area’s Blue Line and bus access, Irving Park offers direct access to Interstates 90 and 94, so those who need to drive to get to work will want to consider this convenient option. It’s also home to two Metra lines within Old Irving Park, making it even more convenient for those who want to live in the city sans car but not in the heart of the Loop.

Photo credit Megy Karydes

Avondale is having a moment right now. That said, while you can expect to spend more than $2,000 on rent in some parts of Avondale, you can absolutely find less pricey apartments that still make it among the cheapest neighborhoods in Chicago.

Newer businesses, including music venue/coffee bar Sleeping Village, bowling alley Avondale Bowl and newly-opened membership-based Guild Row, have welcomed those who want entertainment options without having to deal with the crowds or parking issues.

Photo courtesy of Choose Chicago

Like many neighborhoods throughout the city, gentrification is taking hold and causing rent to increase. Humboldt Park is no exception. You’ll know you’re in this West Side neighborhood when you pass under the large Puerto Rican flag metal sculpture or notice the large Humboldt Park swan boats in the park’s lagoon.

Today, you can hear a bunch of men congregating at the corner of the park, chatting and catching up on the day’s events while a young couple walks along the sidewalk with a stroller in tow.

Photo credit Megy Karydes

Pilsen is probably one of the most colorful neighborhoods in Chicago. Its bright and large wall murals can be found along the main streets but also within the neighborhood as single-family homes and apartment buildings use their walls as canvases.

Once a haven for artists seeking low rent and large loft spaces, the area has been slowly gentrifying. Renters have been attracted to its location, just a few miles from downtown, as well as lower rents than other parts of the city.

Pilsen also offers access to employment, entertainment and nightlife options throughout the South Loop, Little Italy, Chinatown and University Village (which is home to the University of Illinois at Chicago). It’s definitely one of the most affordable neighborhoods in Chicago near the Loop. Regardless of the influx of new residents, Pilsen is still home to a proud and rich Latino culture.

Photo credit Megy Karydes

Those looking to live on the north side of the city don’t have a ton of budget-friendly options, but Uptown is a great option for those who want to be close to neighborhoods like Lakeview, Wrigleyville and Andersonville without wanting to shell out a ton of cash.

Uptown’s locale is its main draw, as is its access to Lake Michigan and the northern areas of Lincoln Park (we mean the park, not the neighborhood of the same name).

7. New Chinatown

Photo courtesy of Choose Chicago

Many Chicago residents might refer to New Chinatown as basically the intersection of Argyle Street and Broadway Avenue, or “Asia on Argyle,” within the northern end of the Uptown neighborhood. Part of the Uptown community, “Argyle Street,” as the locals reference it, is home to some of the best pho and other Vietnamese cuisine in the city. Within a few blocks are dozens of Southeast Asian restaurants and businesses — mostly Vietnamese offerings, along with Chinese, Cambodian, Laotian and Thai.

On Thursday nights during the summer, Argyle Street hosts its popular Argyle Night Market, where you can sample food from local restaurants while enjoying live cultural and musical performances.

Photo courtesy of Chicago Park District

The childhood home of former First Lady Michelle Obama, South Shore offers easy access to Lake Michigan, Rainbow Beach and Stony Island Arts Bank — an art gallery, media archive, gorgeous library and community center.

Another perk is that it’s within walking distance to the South Shore Cultural Center, which includes a 65-acre park with a nine-hole golf course, tennis courts, culinary center, nature center and a variety of cultural programming and classes.

Photo courtesy of Choose Chicago

If living in a really diverse neighborhood appeals to you, complete with businesses that cater to a number of ethnic groups, Albany Park might be the perfect neighborhood for you — it’s also among the cheapest neighborhoods in Chicago.

It’s not uncommon to walk along Montrose Avenue, Lawrence Avenue or Kedzie Avenue, the main streets in Albany Park, and pass restaurants selling everything from freshly-made pitas (Sanabel Bakery on Kedzie Avenue) to sweets and Middle Eastern groceries and staples (Dukan International Food Market, right off the Kedzie Brown Line stop) or serving delicious food at restaurants such as Afghan Kabob on Montrose Avenue or Noon-o-Kabab on Kedzie Avenue.

Photo credit Megy Karydes

Rogers Park is another diverse neighborhood, not unlike Albany Park. According to Choose Chicago, more than 40 languages are spoken in this area. Large apartment complexes and three-flats can be found between single-family homes, and there’s a mix of established families with transient neighbors thanks to Loyola University’s campus. It’s also among the cheapest neighborhoods on Chicago’s far north side.

Affordable Chicago neighborhoods

If you’re new to Chicago and looking for the cheapest neighborhoods, take the time to do some research and talk to those who live in the areas you’re considering. There are many ways you can do that now without knocking on doors. Social media platforms often have neighborhood group pages where you can let people know you’re considering a move to the area and would love to know what they like or don’t like about their neighborhood. You’d be surprised how honest people are when talking about their communities.

Source: rent.com

Apache is functioning normally

January 13, 2024 by Brett Tams

Florida’s luxury real estate market is heating up like a jet ski on a hot summer day. And three smart South Florida neighbors decided to cash in on that.

According to the Wall Street Journal, Jorge Luis Garcia, former owner of Orlando Family Physicians, and his adjoining neighbors, Juan Miguel Almeida and Adria Adrian Almeida are listing their Palm Island properties for a combined $150,000,000.

The three waterfront properties — adjacent to each other — are located on the 82-acre gated Palm Island, a man-made island in Biscayne Bay, Florida famous for its Latin Quarter nightclub, which was owned by Barbara Walters’ father, Lou, and is said to have been frequented by the likes of Frank Sinatra and Jane Russell.

Photo credit: Become Legendary courtesy of Coldwell Banker Realty Miami Beach

Garcia reportedly owns two of the $50 million properties, with his neighbors owning the other, and they’re selling them as a package deal. But even if they were to list independently, the asking prices stand out for the area, as Palm Island’s record sale price for a single-family residence is $32 million.

But combining the properties definitely adds to the appeal of the offering.

Beyond bringing their ocean frontage up to 300 feet, the offering allows the right buyer to acquire several existing, already-built properties together — an option that’s becoming increasingly rare in greater Miami.

So let’s take a closer look at each of the three South Florida properties, currently offered as a package deal for a whopping $150 million.

#1 190 Palm Ave, Miami Beach

Photo credit: Become Legendary courtesy of Coldwell Banker Realty Miami Beach

The largest of the three residences, 190 Palm Avenue offers 12,386 square feet of luxuriously appointed living space.

With a total of 7 bedrooms, 8 bathrooms, and 3 half bathrooms, the stately house pairs Mediterranean-style architecture with elegant, modern interiors.

Photo credit: Become Legendary courtesy of Coldwell Banker Realty Miami Beach

#2 198 Palm Avenue, Miami Beach

While just a tad smaller than the neighboring house, at 11,650 square feet, 198 Palm Avenue is equally luxurious.

This one comes with 8 bedrooms, 9 full baths and 2 half baths, and sits on a 30,000-square-foot lot.

Photo credit: Become Legendary courtesy of Coldwell Banker Realty Miami Beach

#3 210 Palm Avenue, Miami Beach

The third and last house has similar characteristics, clocking in at 11,349 square feet, with 6 bedrooms, 8.5 bathrooms, and a 30,000 sq. ft. lot.

Just like its neighbors, it has 100 feet of ocean frontage and has been meticulously appointed with the finest luxury finishes.

Photo credit: Become Legendary courtesy of Coldwell Banker Realty Miami Beach

And while the trio of properties currently stands as one of the priciest residential listings in all of Florida, surpassed only by $187 million newly built mansion in Palm Beach, they wouldn’t set a new state record even if they were to sell at full ask.

The record for the most expensive home sale in Florida is held by billionaire Larry Ellison’s $173 million purchase of the Gemini mansion, the former Ziff family estate in Manalapan.

Nevertheless, the future sale will likely set a record for Palm Island, and bring this Miami Beach enclave into the spotlight, alongside more hyped areas like Star Island or Indian Creek, both holding headlines recently due to notable sales. Spearheading the efforts to make that a reality is Cesar Powell with Coldwell Banker Realty Miami Beach, who holds the listing.

And while the sellers aren’t at all interested in splitting it into three separate listings, we’d be remiss if we didn’t ask: Which one of the three properties do you like the most?

The article Three neighboring properties in Miami Beach eye $150 million sale first appeared on Fancy Pants Homes.

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Source: fancypantshomes.com