homes

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While it is possible to take out a Federal Housing Authority (FHA) loan to purchase a second home, it’s only allowed in a handful of specific scenarios. Many first-time homebuyers choose an Federal Housing Authority (FHA) loan because of its lower credit score and down payment requirements, so when they need to purchase a second home the natural instinct is to look at financing with a second FHA loan. Read on for more details on how FHA loans work and the few exceptions that allow borrowers to qualify for more than one at a time.

What Is an FHA Loan?

An FHA loan is a type of mortgage that’s insured by the federal government and issued by a lender. FHA loans were created in 1934 at the height of the Great Depression to make homeownership more accessible. Since the FHA assumes the risk in case of default, lenders are able to offer more favorable loan terms to borrowers who might not otherwise qualify for conventional home mortgage loans.

With an FHA loan, borrowers with credit scores of 580 or more may qualify for a down payment of 3.5% of the home purchase price. (Borrowers with credit scores between 500 and 579 will be required to put 10% down.) These FHA loan requirements are helpful for first-time homebuyers who haven’t built up their credit or borrowers with less savings to put toward a down payment. FHA loans are one of several options for low-income home loans so consider all your options, whether you are thinking about taking out a first or second FHA loan.

Borrowers must also get mortgage insurance with an FHA loan. FHA mortgage insurance involves an upfront premium and an annual payment that’s added to monthly mortgage payments. The upfront premium is equivalent to 1.75% of the loan, while the annual payment is calculated based on the loan-to-value ratio and loan terms.

Besides the purchase of a home, FHA-insured loans are also available for home renovations and refinancing an existing FHA loan.

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

Recommended: How Do FHA 203k Loans Work?

How You Can Get an FHA Loan for a Second Home?

It’s possible to get an FHA loan more than once. For instance, if you’ve sold a prior home and haven’t owned a home for three or more years, you’d qualify as a first-time homebuyer and be eligible for an FHA loan. (And if you have a conventional mortgage on your first home, you may be able to get an FHA loan for a second home provided your credit score is adequate and your budget can handle the cost of a second mortgage; you would also have to occupy the second home as your primary residence.)

Meanwhile, qualifying for a second FHA loan is more complicated. For one, the purchased property must become the primary residence for at least one borrower. This includes a requirement to occupy the property within 60 days and have it be their primary residence for at least one year. These occupancy requirements mean that an FHA loan can’t be used to buy vacation homes or rental properties.

Here are details on the exceptions that permit borrowers to get an FHA loan on a second home:

•   Relocation: If moving for employment-related reasons, borrowers who financed their current home with an FHA loan may qualify for a second FHA loan on a new home before or without selling their first property. However, to qualify, the job must be performed on-site and the new home must be located at least 100 miles away from the primary residence that was previously purchased with FHA-backed financing.

•   Increase in Family Size: Borrowers may qualify for a second FHA loan to purchase a larger home to accommodate their growing family. This is evaluated on a case-by-case basis but typically requires proof of an increase in legal dependents and having at least 25% equity in the home.

•   Vacating a Jointly Owned Property: Borrowers who are getting divorced or permanently vacating a home they inhabited with a co-borrower may qualify for a second FHA loan.

•   Cosigning: A borrower who cosigned an FHA loan but didn’t live in the property could qualify for another FHA loan to buy their own home.

Recommended: FHA Loan Mortgage Calculator

FHA Second-Home Requirements

For borrowers who can satisfy one of the exceptions outlined above, the next step is meeting financial eligibility requirements for a second FHA loan. With any loan, and especially a second mortgage, lenders will consider the borrower’s ability to afford monthly payments when determining if they qualify. FHA loans can allow a debt-to-income (DTI) ratio of up to 50%, meaning that half of a borrower’s income is going to debt payments. Lenders, however, may look for a lower DTI of 43%, accounting for the cost of both mortgages, to approve a second FHA loan.

Borrowers will need to meet FHA loan credit score criteria to determine whether they’ll need to put 3.5% or 10% down. Besides the down payment, lenders also factor in savings for covering closing costs and monthly payments.

Pros and Cons of Multiple FHA Loans

There are advantages and drawbacks to having FHA loans for borrowers to keep in mind.

Pros

•   A smaller down payment

•   No income limits

•   Lower credit score requirements

•   Can be used to purchase duplexes, triplexes, quadplexes, or condominiums

•   May have lower mortgage insurance premiums than private mortgage insurance

Cons

•   Loan limits of $472,030 to $1,089,300 for a single-family home, depending on the cost of living by state

•   May require an inspection and higher property standards

•   Can only be used for buying a primary residence

•   May require mortgage insurance for the life of the loan

Tips if You’re Considering Multiple FHA Loans

Consider these tips to be prepared to apply for a second FHA loan: To lower your DTI, you’ll either need to increase your income or lower your debt. Using your first home for rental income can demonstrate to lenders that you can afford having two mortgages. When evaluating debt, remember that established credit that’s in good standing is viewed more favorably than newer credit accounts.

Building more equity in the home you currently own is another option to help qualify for a second FHA loan. If possible, aim for at least 25% equity before applying for a second FHA loan, as this is the minimum required if you are citing an increase in family size as the exception.

The Takeaway

Can you get an FHA loan if you already have an FHA loan? Yes, but there are specific exceptions you’ll need to meet in order to qualify, and the new property must be used as a primary residence for at least one year. Not able to take out two FHA loans at once? Don’t worry. There are other options for borrowing that may suit your needs.

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

SoFi Mortgages: simple, smart, and so affordable.

FAQ

What will disqualify you from an FHA loan?

Borrowers could be disqualified from an FHA loan based on a high debt-to-income ratio, poor credit, or insufficient funds to cover the down payment, closing costs, and monthly mortgage payment.

Can you qualify for FHA twice?

Yes, you can get a second FHA loan if you are relocating for a new job, move at least 100 miles away, have an increase in family size, or vacate a jointly owned property. Borrowers who previously co-signed on someone else’s FHA loan may also qualify for FHA twice.

What is the 100 mile rule for FHA loans?

The 100-mile rule allows borrowers to get a second FHA loan without having to sell an existing property with a FHA-backed mortgage if they’re moving for employment-related reasons or buying a new primary residence that’s at least 100 miles away.

Photo credit: iStock/nazar_ab

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

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

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Source: sofi.com

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You don’t need a Hollywood star to enjoy the splendor of the City of Angels. Palm-lined sidewalks, scenic beaches and killer Mexican food are just some of the reasons why Los Angeles is Southern California’s most flocked-to metropolis.

While living in La La Land will cost you 51.9 percent more than the national average, roughly 4 million people living in this desert oasis make it work — and so can you.

If you’ve decided Los Angeles is the place for you, check out how the cost of living really breaks down in this high-demand hometown. Take a look at the community and economic research in these categories:

Los Angeles housing prices

Rent in Los Angeles is considerably higher compared with the national average. In fact, it’s 134 percent above it. This aligns with the current standard in many other major cities like Washington, D.C., and Boston, but doesn’t even come close to the higher prices in San Francisco and Honolulu.

Housing expenses in L.A. are so high that you can expect to pay around $2,807 each month for a one-bedroom apartment and $3,845 for a two-bed. What’s more, both of these monthly costs are up over last year by 6 percent and 5 percent, respectively.

Making housing costs even more challenging, nearby cities don’t often cut you a break, either. Places like Santa Monica, Venice and Hollywood all have higher one-bedroom rents. The typical one-bed rent in Santa Monica is actually $1,000 more than in Los Angeles.

The Los Angeles cost for homes also tells an expensive story. The median sales price in L.A. is at $955,000, up 3.2 percent over last year. The real estate market also continues to stay pretty competitive, too. Most homes are only listed for about a month before selling.

Which neighborhood is right for you?

Among the high-end living, there are hidden gems in Los Angeles, with an average price for rent that’s a little more affordable.

First, avoid some of the city’s most expensive neighborhoods. These are where the cost of living in Los Angeles is highest. Estimated monthly costs for housing put Playa Vista and Brentwood at the top. Here, one-bedroom rents average out to over $4,000.

In other areas like the Hollywood Hills, Westlake and Koreatown, rent runs closer to the city’s average. One-bedrooms across these three neighborhoods averages between $2,510 and $2,800.

It’s also possible to find inexpensive apartments in Los Angeles, underneath the living index you’d expect to pay. In areas like Greater Wilshire and Crenshaw, one-bedroom apartments average less than $2,000. Both communities are also seeing a decrease in rents over last year.

Los Angeles food prices

You can’t talk about eating in Los Angeles without acknowledging the state has its own signature fare. L.A. restaurants embody the traits of California Cuisine. This means a lot of fresh produce, seafood and leaner cuts of meat. It also means most restaurants cost a bit more money. Living in Los Angeles can make for an expensive night out when it comes to eating. Though you can find a deal at an inexpensive restaurant (where the average meal for a single person is $16.50), a three-course meal for two at a mid-range establishment averages $90.

When it comes to groceries, expenses are 13.7 percent above the national average. This is about a 1 percent increase over last year for food expenses. Based on whether you prefer a higher-end grocery store, most items on your list should only be a little more than average.

Basic groceries like a load of bread or a half gallon of milk have average costs of $3.99 and $2.56 respectively, which are pretty close to the price throughout California.

Los Angeles utility prices

Los Angeles apartments rarely include utilities. This is similar to many rentals in big cities around the country. It means housing is always more than what you expect to pay in monthly rent.

Utilities can include a variety of expenses — electricity, gas, water, trash and even internet. All combined, Los Angeles utilities run 9.9 percent higher than the national average.

What keeps this number slightly above the average is the summer. Warmish weather year-round means heating bills are never high but come summertime, expect to keep your air conditioning blasting. Some parts of L.A. reach up to 120 degrees Fahrenheit at the peak of the hot season.

With these particular utility needs, expect to pay about $207.75 per month on total energy costs.

Los Angeles transportation prices

We can’t talk about L.A. without mentioning one crucial detail: its infamous traffic. It feels like people commute to their job all day long, or are always in a rush to get somewhere. Freeways seem perpetually congested.

Overall, transportation expenses in Los Angeles, CA, are 26 percent above the national average. This is consistent with other cities about the same size and includes maintenance costs and gas.

If you do decide to drive your way around the city, a FasTrack pass is your ideal traffic cheat. This pass gives you access to a special express lane on certain highways, potentially shaving time off your drive. The transponder itself costs $40, but you can put that toward your tolls once you set everything up. After that, there’s a $1 monthly fee in addition to what you put into your account to cover tolls.

In addition to paying to drive, you also have to pay to park. Rates for metered parking areas vary between neighborhood — they’re set anywhere between 50 cents to $6 per hour, depending on the location.

Public transportation expenses

Unfortunately, Los Angeles isn’t exactly known for its stellar public transit system, however, it’s certainly possible to get around using the Metro, a network of buses and trains.

On both the bus and the train, a one-way trip costs $1.75. You can also purchase a one-day pass for $3.50 and a seven-day pass for $12.50. Monthly passes, good for 30 days, have a price of $50.

If this works for you, you can save a lot on transportation costs, not to mention the time you’d have to sit in traffic otherwise.

Living the L.A. life on foot

Los Angeles isn’t the best city for walking — its walk score is 79. You’ll find pockets of highly walkable streets and neighborhoods, but overall, walking from Point A to Point B isn’t always easy.

Until recently, biking wasn’t a great option, either. Recent initiatives include putting bike paths on more city streets and offering a bike share program through the Metro. The cost is $1.75 per 30 minutes, but day and monthly passes are also available and only incur extra charges if your ride lasts for more than 30 minutes. L.A.’s current bike score comes in at 65.

Los Angeles healthcare prices

From routine check-ups to unforeseen trips to urgent care, healthcare costs are bound to pop up intermittently. Luckily, you’re in good hands in Los Angeles.

Healthcare costs in L.A. are only slightly higher than the national average at 15 percent above. This is an increase of about 5 percent over the previous year.

Healthcare expenses in Los Angeles without insurance average out to:

  • $130 to see a doctor
  • $127.20 to see a dentist
  • $131.60 to see an eye doctor

Depending on your insurance coverage, and how often you find yourself in a doctor’s waiting room, healthcare will impact your cost of living differently each year.

Los Angeles goods and services prices

Angelenos love staying active, whether that means hiking the surrounding hills, running, cycling or trying out a calming yoga class on the beach. However, this is only one area of all the cost of living elements that create your goods and services category. Everything you like to do, but could live without, fit in here.

What’s good about this particular piece of the cost of living in Los Angeles, is that it’s all optional. If one month the cost of a movie ticket edges your budget into the red you can skip it.

Overall, prices in this category are 15.2 percent above the national average, and the best way to evaluate what you can and can’t do is to look at the individual price of your favorite activities.

For example, if you’re the type of person who likes to see a movie every week, it’s good to know a ticket costs around $17.89. If yoga is your thing, a single class can set you back $21.33. If grabbing a pizza with friends is your ideal night on the town, it’s best to know the average cost for a pie is $12.99.

Taxes in Los Angeles

The cost of living in Los Angeles is greatly affected by taxes. In California, the state sales tax is 7.25 percent. However, localities can add to that total, which can vary your cost of living a lot. In L.A., the sales tax rate is 9.5 percent, but this is only in the city itself. Though some neighboring places still feel like L.A., they can have a completely different sales tax.

This means when you’re out at The Grove and you spend $1,000, you’ll pay $95 in taxes.

The state also has a progressive income tax, where you pay anywhere from 1 to 13.3 percent based on your salary.

How much do I need to earn to live in Los Angeles?

Experts recommend that renters spend around 30 percent of their salary on rent. That means, to afford an average one-bed priced at $2,835 your annual income should come in at or over $113,400.

With the median salary in L.A. of only $65,290, it’s in the best interest of most of those living in Los Angeles, CA, to find apartments or home prices that sit well below average. Luckily, the city provides, and many thrive while having a job that doesn’t yield such a high average salary.

To really see how salary numbers impact the Los Angeles cost of living, use our rent calculator to discover how you can make your budget work in the City of Angels.

Living in Los Angeles

Though the city is famous for its glitz and glam, you don’t need to call yourself a millionaire to live well in this world-renowned place. Although the price is higher than in most around the country, you can find your niche. And, once you do, you’ll have all the benefits of sunny skies, pristine natural parks and a culture unlike any other in enjoy.

The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com

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For first-time buyers — or anyone facing financial hurdles — getting an FHA loan can help make homeownership a reality. With insurance from the Federal Housing Administration, lenders can afford to offer loans with a lower down payment, lower closing costs, and less restrictive qualifying credit requirements.

But can you refinance an FHA loan? Yes, FHA loans are available for those looking to refinance an existing mortgage rather than take out a new one — whether or not that existing mortgage is itself an FHA loan. However, there are a variety of different ways to go about refinancing an FHA loan, and which is right for you will depend on your circumstances. Here’s what you need to know.

Understanding FHA Refinancing

Like any FHA loan, FHA refinancing loans are insured by the FHA — and therefore available with easier qualifying requirements and lower costs than other types of conventional loans may be. Refinancing your mortgage with an FHA refinance loan could help you save money on interest over time by scoring a lower rate, lowering your monthly payments, or even accessing cash by leveraging your home’s equity. And yes, you can refinance an FHA loan, or another type of existing home loan with an FHA refinancing loan. However, the specific FHA refinance requirements vary depending on your circumstances.

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

Types of FHA Loan Refinancing

There are four main options when it comes to FHA loan refinancing: Simple refinancing, Streamline refinancing, cash-out refinancing, and 203(k) refinancing. Which is right for you will depend on what kind of loan you have — and why you’re refinancing in the first place.

FHA Simple Refinance

FHA Simple refinancing is for those whose original home loan is an FHA loan. With an FHA Simple refinance, you’ll simply — as the name implies — refinance your home, using a new FHA loan to pay off the existing one, ideally with a lower monthly payment or interest rate to make it worth your while. You may also be able to switch between fixed and adjustable interest rates.

Unlike some other types of FHA refinancing, you won’t be able to access any cash using this type of refinance, so it’s not a viable option for homeowners attempting to leverage home equity to pay for other expenses. In addition, it has slightly stricter qualification requirements than FHA Streamline refinancing, which requires less credit documentation and underwriting. Although credit score requirements vary by lender, most FHA Simple refinance programs require a minimum credit score of 580.

FHA Streamline Refinance

The FHA Streamline refinancing option also follows the logic of its name: The underwriting and qualification process is less intense than other types of FHA refinancing. In addition, unlike the FHA Simple refinance option, a home appraisal is not required. You can also take out up to $500 in cash against your home equity with an FHA Streamline refinance loan.

To qualify for FHA Streamline refinancing, your original home loan will also need to be FHA insured, and payments must not be delinquent. The FHA also requires that the new loan result in a financial benefit for the borrower. Of course, you wouldn’t be going through the process and expense of refinancing if you had nothing to gain in the bargain.

FHA Cash-Out Refinance

FHA cash-out refinancing allows borrowers to leverage their home equity to take out cash that can be used for any purpose. To make this work, a new, larger loan is taken out, which is used to refinance the existing home loan — which need not be FHA insured — as well as to provide cash value.

Using an FHA cash-out refinance loan, homeowners may be able to lower their payments or interest rates while also accessing lump-sum cash that can be used for just about any purpose under the sun. Again, however, the underwriting and qualification process for FHA cash-out refinance loans may be more intense than Streamline loans — though a cash-out refi is still accessible to most borrowers with a credit score of 580 or higher and a debt-to-income ratio (DTI) of 43% or less.

FHA 203(k) Refinance

Finally, the FHA 203(k) loan, also known as rehabilitation loan, allows homeowners to take out money for the purpose of restoring, rehabilitating, or repairing their home along with purchasing it. FHA 203(k) loans can be used for an original purchase or a refinance, and homeowners with a non-FHA loan can apply for 203(k) refinancing, and may find FHA-insured rates are lower than those of other home improvement loans.
💡 Quick Tip: Lowering your monthly payments with a mortgage refinance from SoFi can help you find money to pay down other debt, build your rainy-day fund, or put more into your 401(k).

Comparing FHA Refinance vs. Conventional Loan Refinance

Why choose to refinance with an FHA loan rather than a conventional one? Or vice versa? There are pros and cons to consider either way you go. For instance, although FHA refinance loans tend to come with more accessible qualification requirements, some types are only available for those with existing FHA loans — and all of them require a mortgage insurance premium (MIP). The important thing is to consider all your options so you can make an informed decision. Let’s take a closer look.

Pros and Cons of Refinancing with an FHA Loan

While there are many benefits to refinancing with an FHA loan, there are some drawbacks to consider, too.

Pros of refinancing with an FHA loan:

•   Lower interest rates and down payments than some conventional refinancing options

•   Easier qualification process

•   Different options available, including cash-out options

Cons of refinancing with an FHA loan:

•   MIP (mortgage insurance premium) required on all FHA loans; conventional refinance loans will not require mortgage insurance if you’ve paid off at least 20% of your home’s value.

•   Some types of FHA refinance loans are only available to those with existing FHA home loans.

Differences in Requirements and Benefits

In addition to the pros and cons of FHA loan refinancing, there are also differences in the requirements and benefits for FHA versus conventional home refinancing loans. For instance, in most cases, FHA loans require a minimum credit score of just 580, whereas conventional loans might have a minimum credit score starting at 620 or higher.

And while FHA loans often come with lower interest rates, they always come with a mortgage insurance requirement — whereas conventional loans may not require private mortgage insurance (PMI), if you already own at least 20% of your home’s equity.

Finally, FHA refinancing loan options may be somewhat limited, depending on your existing home loan and your motivations for refinancing. Some types of FHA refinancing loans are only available to homeowners who already have an FHA-insured mortgage, which may make them inaccessible to other borrowers.

Eligibility and FHA Refinance Requirements

So, what does it take to secure an FHA home loan? While requirements vary by lender, here are some basic rules of thumb:

Qualifying Factors for Refinancing an FHA Loan

As mentioned above, certain types of FHA refinance loans are only available to those who already have an FHA-insured mortgage loan. In addition, only FHA loans that are not delinquent — i.e., you’re up to date on your payments — may qualify for refinancing.

Credit Score Guidelines

While FHA-insured loans tend to have lower minimum credit scores than conventional refinance loans, lenders do still have a minimum. In most cases, it’s 580—though specifics may vary by lender.

Loan-to-Value Ratio (LTV)

A home’s loan-to-value (LTV) ratio refers to what percentage of the home’s current market value you’re taking out a loan for. Ideally, those who are refinancing their homes have a lower loan-to-value ratio — meaning they owe less of their home’s total value than they did when it was first purchased. Still, the LTV is one factor lenders look at when qualifying borrowers for an FHA refinance loan; the lower your LTV, the better.

Employment and Income Verification

Lenders have a vested interest in making sure you’ll be able to repay your loan, so a lender will verify your employment situation and income before qualifying you for a new loan, whether you’re taking out an original mortgage or refinancing.

Debt-to-Income Ratio (DTI)

Your debt-to-income, or DTI, ratio refers to the proportion of your available income each month that goes toward existing debts. While FHA loans have a higher maximum DTI than other types — borrowers with DTIs as high as 57% may still qualify — some lenders may choose not to qualify borrowers with a DTI of 43% or more.
💡 Quick Tip: Your parents or grandparents probably got mortgages for 30 years. But these days, you can get them for 20, 15, or 10 years — and pay less interest over the life of the loan.

Specific Requirements for Streamline Refinance

For the FHA’s Streamline refinance program, certain specific requirements apply, including:

•   The existing mortgage must also be FHA-insured.

•   The refinance must result in a “net tangible benefit” to the borrower.

•   Only up to $500 may be taken out of the loan in cash.

•   In most cases, investment properties are ineligible.

Criteria for Cash-Out Refinance

In order to qualify for an FHA cash-out refinance, you’ll need:

•   To have lived in your home for at least 12 months

•   To own at least 20% of your home’s equity

•   A minimum credit score of 580

•   A debt-to-income (DTI) ratio of 43% or lower

Benefits of Refinancing an FHA Loan

What are the specific benefits of refinancing with an FHA loan? Here are just a few of the reasons people choose to take this route when refinancing a mortgage.

Lower Interest Rate and Monthly Payment

For most homeowners, the primary motivator for refinancing is to save money — either over the long term, by scoring a lower interest rate, or on a monthly basis by choosing a loan with a lower minimum monthly payment. In some instances, you may be able to achieve both goals with the same refinancing loan, particularly if your credit history has appreciably improved since you originally took out your mortgage.

New Loan Terms

Some borrowers refinance to give themselves more time to pay off their home loan with a longer term — or to accelerate their repayment process with a shorter term.

Equity Access with a Cash-Out Refinance

For most consumers, a home is the single most valuable asset they’ll ever purchase. Being able to access the value of that equity with a cash-out refinance option is another important motivator for those seeking to refinance, and FHA refinance loans can make that goal a reality whether or not your original loan is FHA-insured.

Avoid Private Mortgage Insurance (PMI)

For borrowers looking to avoid private mortgage insurance (PMI), take heed: Although FHA loans don’t require PMI, they do require mortgage insurance. The FHA-loan version is called MIP (mortgage insurance premium), and is required on all FHA loans.

Improve Financial Stability

For some borrowers, refinancing can improve overall financial stability by achieving any of the goals listed above — for example, freeing up more discretionary income each month with a lower monthly payment.

Steps to Refinance an FHA Loan

Seriously considering an FHA refinance loan? Here are the steps it takes to turn your ideation into reality.

1. Review Your Current FHA Loan

The first step in shopping for a new loan should always be to review your existing mortgage. After all, that’s the best way to understand what factors would make a new mortgage more favorable for your finances. If your original loan is not FHA-insured, note that you may not qualify for certain types of FHA refinancing loans.

2. Shop for Lenders and Offers

Next up: The actual shopping part. In order to ensure you get the best deal available, it’s worth asking several lenders for refinancing quotes, including a full amortization schedule. That way, you’ll understand exactly how much money you stand to save — or not — by choosing a specific lender.

3. Submit an Application and Required Documentation

Once you’ve settled on a lender, you’ll submit your application, including any required documentation (such as ID and income verification, including bank statements and tax forms). In most cases, this process can be done entirely online.

4. Go Through the Appraisal and Underwriting Process

As part of most refinancing processes, you’ll need to have your home appraised so the lender understands its current market value — and can use that value to calculate important aspects of your application, like the LTV. An underwriter will assess your holistic financial profile to determine whether or not you qualify for the refinance loan.

5. Close the Refinance

Finally, if the terms are favorable and you are approved, you’ll close the refinance loan. The new lender will repay your existing loan, and your new payments will be directed toward this new lender, using the new terms you’ve agreed to.

Tips and Considerations for FHA Loan Refinancing

Want to get the very best out of your FHA loan refinancing process? Here are some tips to help you get the most bang for your buck.

Evaluate Your Financial Situation

Refinancing isn’t right for everyone. In fact, in most cases, the FHA won’t even allow you to refinance with one of its loans unless it results in a net financial benefit for you, the borrower. You can take a few first steps to determine whether or not it will help before you ever get a lender involved.

Using a mortgage calculator, you can determine how much a lower interest rate would save you over time or how much a longer loan term would reduce your monthly payment. Keep in mind that refinancing isn’t free, so unless the savings are substantial enough to eclipse your closing costs, it may make more financial sense to keep your original loan.

Understand Closing Costs and Fees

Loans come with a variety of closing costs and fees, such as application fees, the cost of the appraisal, attorney fees, and more. These costs can add up to about 6% of your overall loan value, and though some of them may be able to be financed as part of your loan, they still have the potential to eat into any savings your refinancing loan might offer.

Time Your Refinance Strategically

When it comes to refinancing your mortgage, timing matters. For example, if interest rates are higher than when you took out your original loan, the timing might not be right. The same could be said if you’re planning on moving out of your home in the near future, in which case, you may not have enough time in the home left to break even on your closing costs.

Common Mistakes in FHA Loan Refinancing

Here are some common errors borrowers make when undergoing the FHA loan refinancing process.

Misunderstanding the Eligibility Criteria

Although FHA loans come with more accessible eligibility criteria than many conventional loans, they do still have standards. If your credit score is less than 580 or your payments are delinquent, you’re unlikely to qualify for an FHA refinancing loan.

Ignoring Closing Costs and Fees

As mentioned, closing costs and fees can really add up — so if you don’t take them into account when you’re considering a refinance, you may wind up with an unpleasant case of sticker shock.

Not Considering Long-Term Financial Goals

Refinancing your home, when done best, is all about saving money over time, which means having enough time for those savings to accrue. If you’re planning on selling your house and moving in three to five years, refinancing may actually end up being more expensive than staying with a higher-rate original loan. Additionally, if you’re refinancing primarily to lower your monthly payment and make ends easier to meet, don’t forget to keep your long-term finances in mind. It may not be worth the extra monthly money to pay thousands more in interest overall.

The Takeaway

FHA refinance loans are available for homeowners whose original loans are FHA-insured—as well as for those who have a conventional original mortgage. FHA loan requirements vary depending on which type of loan you’re considering, and may not be right for everyone. But if you can meet the qualifications and derive a solid financial benefit from an FHA refinance, it may be worthwhile to embark on the process.

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

SoFi Mortgages: simple, smart, and so affordable.

FAQ

Can you refinance an FHA loan without an appraisal?

Yes — but only if you qualify for an FHA Streamline loan, which requires your original loan also be an FHA-insured loan.

What happens if your home’s value has decreased?

Even if your home’s value has decreased, you may still be eligible for a refinance loan through the FHA Streamline program. It all depends on how much you owe on your home and your other qualifying factors. (Keep in mind, too, that this program requires that your original home loan also be an FHA one.)

Can you refinance an FHA loan if you’re behind on payments?

No. All FHA loan refinance programs require borrowers to be up-to-date on their loan payments, with most including provisions that there must not have been any payments more than 30 days late within the last six months.

Photo credit: iStock/gremlin

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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

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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Source: sofi.com

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A MOM has shared how she snagged a Walmart item that rivals a Crate & Barrel buy for a fraction of the price.

She said that it’s a great addition to anyone’s home, so it’s best to buy it soon before it sells out.

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Home decor fan Brittney got a Walmart dupe for $35 dupeCredit: Tiktok/thegloshowfam

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It’s similar to a $150 Crate & Barrel buy and sells out quicklyCredit: Tiktok/thegloshowfam

Mom Brittney (@thegloshowfam) is a home decor enthusiast who loves budget-friendly finds.

She showed viewers in a video how she got a similar style to a popular decorative storage basket.

“It’s back. The Crate & Barrel dupe basket from Walmart is finally back in stock, and it’s not just back in stock, it’s on sale as well,” she said excitedly.

Brittney held up the large cardboard box with the deal item inside.

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“Go run and get it. This is a seriously affordable find,” she said.

For only $35, she got a Walmart look-a-like, the Better Homes & Gardens Closed Weave Polyester White Decorative Storage Basket.

It’s similar to the Crate & Barrel Conway Round White Cotton Storage Basket, $150.

“If you need a gift for someone who’s hard to buy for, this would be a great gift because they could use it in a number of different ways and literally, this basket looks good in everyone’s home,” she gushed.

Most read in Lifestyle

When she unboxed the basket, she couldn’t help but squeal in excitement.

She called it the “dupe of all home decor dupes” in the video caption.

Although it is currently sold out on the Walmart site, it regularly restocks online.

Viewers were intrigued by the great price and offered feedback in the comments.

“Oh gosh! Had no clue it was a popular item. I got it two months ago and use it for laundry basket in bedrooms,” one commented.

Brittney replied: “That’s amazing!”

“I just needed this so bad,” a TikTok user chimed in.

“I’ll wait when back in stock. Thank you for sharing,” a fan praised.

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She said that it looks good in anyone’s homeCredit: Tiktok/thegloshowfam

Source: the-sun.com

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Countrywide announced today that its foreclosure prevention efforts increased markedly over the last six months of the year, helping more than 80,000 borrowers stay in their homes.

“Countrywide is proud of the progress made toward helping our customers sustain homeownership,” said Steve Bailey, senior managing director, Loan Administration at Countrywide, in a statement

“Home retention efforts in the second half of the year increased 148 percent compared to the first six months, and we anticipate helping even a greater number of borrowers in 2008.”

The recently taken-over mortgage lender said loan modifications and other workouts accounted for 69 percent of its home retention efforts in 2007.

One such modification method is to refinance qualified subprime borrowers into prime loans. Hmm…

The Calabasas, CA-based company said it modified home loans for 55,801 borrowers last year, set-up long term repayment plans for 12,110, and put in place other workout efforts for 6,862 homeowners.

According to the company’s data released today, it also executed 7,880 short sales, 1,217 deeds-in-lieu of foreclosure, and 4,621 special forbearance plans.

Since the program was launched in late October, Countrywide has applied home retention solutions to 16,676 mortgages, greater than 20 percent of its total loan modification goal.

“We are eager to continue to work with housing industry professionals, nonprofit organizations and government agencies to communicate to homeowners across the nation that we often can prevent foreclosures, if we are given the opportunity to work with them,” added Bailey.

Recently, Countrywide ironed out deals to work with consumer advocacy groups ACORN and NACA in an effort to help more homeowners avoid foreclosure.

These groups had previously held a number of protests claiming the lender wasn’t doing enough to help stem the problem.

In related news, presidential hopeful Hillary Clinton slammed Countrywide CEO Angelo Mozilo’s proposed pay package ($36.4 million), calling it “outrageous” during an interview with CNBC-TV.

“Executives of a lot of these companies that participated in creating this very difficult set of problems we’re trying to work our way out of should not be rewarded … as they walk away,” Clinton said.

Perhaps some of that money could go towards the home retention efforts…

Source: thetruthaboutmortgage.com

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  • Multiple headwinds kept buyers and sellers on the sidelines of the housing market this year. 
  • But that could change as interest rates fall and builders keep adding inventory.
  • These are Wall Street’s top predictions for where the US housing market is headed in 2024.

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Rising prices and steep borrowing costs in the US housing market kept homebuyers in a year-long limbo, with a national property shortage adding to headwinds in the sector. 

While home prices dropped sharply through 2022, they rallied for nine-straight months beginning in January, recently hitting fresh all-time highs. Meanwhile, as the Federal Reserve raised borrowing costs, mortgage rates jumped to levels not seen sine the mid-2000s.

Finally though, conditions appear poised to shift, especially given mounting bets that the Fed will loosen monetary policy in 2024. 

From supply to price growth, here are top experts’ outlooks for 2024 housing market. 

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Realtor.com: A “bit of a break”

As the Fed turns dovish, the 30-year fixed mortgage rate will average 6.8% next year, Realtor.com predicted in early December. In the last week of the month, the rate slid to 6.61%.

This could have the effect of slowing demand as homebuyers feel less pressure to race against higher borrowing costs. The listing agency expects prices to dip by 1.7%, having risen 3% in 2023. 

“It will be a bit of a break after what have been pretty relentless home price increases,” Chief Economist Danielle Hale said, adding: “Some of the pressure and sense of urgency will start to let up.”

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However, the volume of existing homes for sale will tumble 14%, as the mortgage rates at the level the firm predicts will still be more expensive than what 85% of current borrowers are paying. 

Goldman Sachs: Inventory picks up 

Goldman Sachs estimates existing sales will only dip slightly in 2024, before rebounding to 4.24 million the year after. Meanwhile, new home sales will climb from this year’s 680,000 to 723,000 in 2024.

That’s as housing starts will inch higher, climbing from 1.39 million to 1.335 million in 2024. New home construction has substantially increased this year, as homebuilders jumped on the lack of housing.

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The bank expects muted price growth next year.

Redfin: Prices will fall 1%

The 30-year mortgage rate will average 6.6% by the end of 2024, leading to a 1% drop in home prices, the real estate firm expects. 

“Home prices will still be out of reach for many Americans, but any break in the affordability crisis is a welcome development nonetheless,” Chief Economist Daryl Fairweather said. 

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Meanwhile, home sales will jump 5%, reaching 4.3 million. Still, Redfin says high costs will push rent demand higher, while there could be an uptick in priced-out Americans moving in with their parents.

Zillow: Prices will flatten

Buyers shouldn’t expect home prices to fall much, but the rate of growth will level off and allow Americans’ incomes to catch up, the real estate platform predicted in a late-November note.

Mortgage rates will probably hold at current levels in the coming months, as the persistent slowdown in inflation makes an uptick in rates unlikely. 

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“Taken together, the cost of buying a home looks to be on track to level off next year, with the possibility of costs falling if mortgage rates do,” Zillow researchers said.

Fannie Mae: Price growth will lose steam

Mortgage rates will average 6.7% in 2024, not far off levels seen this summer, the government-sponsored mortgage finance agency predicted.

Total home sales will jump to 4.8 million, fueled by a gradual recovery in existing home sales, Fannie Mae said. A modest economic downturn will cause a shallow decline in new home sales, though the contraction won’t diminish construction volumes in the long run. 

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The agency expects prices to continue appreciating, albeit at a slower pace. Citing an October survey, it forecasts 2.4% price growth next year.

Source: businessinsider.com

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“America’s Finest City” has a price-point, and amenities, that live up to its nickname.

The eighth-most populous city in America, San Diego typically ranks around the same for the cost of living compared to other major cities in the country. Overall, San Diego’s cost of living comes in at 44 percent above the national average.

While that may seem steep, it’s important to realize that within this expensive city, there are plenty of pockets where the cost of living is more affordable. San Diego residents may already know where to look, but it’s something you can calculate, too. It’s all about understanding the price, and whether your expenses are still affordable in the city.

Below, we break down the five factors affecting the cost of living in San Diego to help you discover if “America’s Finest City” is a fit for you.

1. Housing costs and utilities in San Diego

Housing in San Diego doesn’t come cheap. In fact, the uninitiated may experience sticker shock at first glance when it comes to home prices.

Overall, housing costs are a whopping 115.6 percent higher than the national average. This is only slightly below the housing costs in Los Angeles and Orange County, and considerably higher than most California cities.

The average rent for a one-bedroom apartment in San Diego is about $2,887 per month, which is a 1 percent decrease in cost over last year. A two-bedroom is around $3,788 per month on average, a 1 percent increase over last year. Those prices fluctuate depending on the neighborhood and amenities.

If you’re looking to buy a home, the median price in San Diego is $930,000. Home prices are up 3 percent over last year. Most homes in San Diego sell within days, so if you have the means, you need to act fast.

To better understand how housing costs in San Diego compare to the rest of California, the average cost for a two-bedroom apartment in San Francisco is $4,939, over $1,151 more. The average home price in Los Angeles is $975,000, $45,000 more. The San Diego cost of housing may feel high, but it’s definitely not the highest in the state.

Apartment hunting around San Diego County

Although San Diego is an expensive city, prices vary greatly based on the neighborhoods you decide to check out. The difference in living expenses between a more expensive San Diego spot, and the least expensive, is pretty significant.

Trendy North Park, with its vibrant restaurant and nightlife scene, is an expensive neighborhood in the city, with one-bed rental prices at $2,300 per month on average. But, rest assured, there are plenty of areas offering apartments for a fraction of that price.

Case in point, City Heights, located inland and to the east of many better-known San Diego communities, offers one-bed apartments for an average rent of $1,700. Areas like Colina del Sol and Paradise Hills are also on the more affordable side, with one-bed rents averaging the same at $1,650 a month.

Utilities in San Diego

San Diego is known for its beautiful weather. Average temperatures hover around 76 degrees Fahrenheit for most of the year, but you’ll still feel some seasonal change, lots of rain and the occasional cold front.

If you live inland, summer days are scorchers, leading locals to crank up that air conditioning. On the flip side, some nights in the winter get really cold. As a result, a person could pay a hefty price for AC and heat.

Taking this into account, overall utility costs are 13 percent higher than the national average. This is an actually a increase over last year, where this particular piece of the cost of living in San Diego was 10 percent above the national average. Inflation has contributed to this number for every state.

2. Food costs and goods and services in San Diego

San Diego is famous for its diverse culinary scene. Whether you’re more inclined to try a pasta dish in Little Italy, some chile rellenos at an authentic Mexican restaurant in Old Town or fish tacos, a local favorite, you can find a deal on a meal just about anywhere. However, when it comes to casual dining, meals average out to around $25 per person.

Of course, most people don’t eat out all the time. With dozens of quality supermarkets and plenty of neighborhood farmer’s markets, meal planning and finding a deal on food is easy.

Keep in mind that groceries in San Diego run 10 percent higher than the national average. You’ll pay extra for certain staples like milk ($2.17 for a half-gallon), eggs ($4.85 for a dozen), bread ($3.63 for a 24-ounce loaf) and ground beef ($8.08 per pound).

Commodities and entertainment costs

As you tally up expenses in your cost of living calculator, don’t forget to budget for goods and services. This includes all the extras on your monthly expense sheet that you could live without, but really don’t want to deny yourself.

This category includes things like a session at a yoga studio ($24), movie tickets ($12.5 each), dry cleaning ($24) and a trip to the beauty salon ($80).

Overall, goods and services in San Diego cost 10 percent more than the national average, a slight dip of less than one percent over last year.

3. Transportation costs in San Diego

One of the many luxuries about life in San Diego is that the freeways are much calmer than those of Los Angeles. Traffic is tame during most hours of the day, although it gets a bit congested around common commute times. Still, transportation expenses are slightly higher than those in Los Angeles and 30.4 percent higher than the national average.

For any person who decides to use a car to get around the city, be prepared to pay to park. Parking can range from as little as $7 to as much as $32 based on parking type and whether you need to keep your car there overnight.

For those who choose to forgo driving altogether, San Diego offers an accessible public transportation system. The San Diego Metropolitan Transit System provides bus and trolley services across San Diego County, including a dedicated line for the University of California, San Diego.

Bus and trolley fares are the same. One way will cost $2.50, but you can purchase a day pass for $6 or a monthly pass for $72. Family weekends allow you to save a little on transportation. Up to two children, 12 and under, can ride free with a fare-paying adult.

If you just want to get around and enjoy life outside, San Diego’s layout makes it ideal for walking — it’s also convenient for bike enthusiasts. The city has a walk score of 53 and a bike score of 43.

4. Healthcare costs in San Diego

Healthcare is a primary concern in most people’s minds, and in San Diego, you can expect to pay slightly more in this category — about 7.2 percent above the national average. This is a slight dip in overall costs from last year.

Prices now are about 1.4 percent less. It’s also not the highest-priced city in the state by far. Los Angeles and most major cities in Northern California are higher than San Diego’s cost of living for healthcare.

A visit to a doctor will cost you about $145, while a dental checkup will run you around $120. You can also expect to pay a bit more for medications. For example, the median price for a bottle of Ibuprofen is about $13. When you factor in the maintenance appointments you’ll need each year, and your list of prescriptions, the price can add up.

Calculating average healthcare costs for everyone is difficult. Everybody has different needs for their body and healthcare routines vary drastically. As a result, you should consider your typical healthcare routines when creating your cost of living budget, factoring in your medicine regimens and insurance coverage.

5. Taxes in San Diego

Since taxes vary by location, it’s easy to get confused when it comes time to budget accordingly. Sales tax in San Diego is 7.75 percent. However, neighboring cities, where you may go shopping, can vary.

Live in San Diego, but prefer to shop in Oceanside? You’ll pay 8.25 percent in sales tax.

How much do I need to earn to live in San Diego?

Earlier, we discussed the fact that the housing piece to your cost of living in San Diego is quite a bit more than in other locations.

Experts generally recommend you allocate at least 30 percent of your annual income to rent, which means you should know the average salary that aligns with the average rent.

If a one-bedroom in San Diego is $2,879 per month, you’d need a job that pays at least $115,160 per year. You may have to consider a roommate or some creative living situation, given that the median annual income in San Diego is $89,457.

Although lower than what you’d need to pay the average rent, it’s not impossible to live comfortably. Our rent calculator can show you exactly how much you can afford and help you target specific areas within your budget.

Living in San Diego

San Diego is a wonderful place to live if you love warm beaches, temperate climates, great food and a lively club scene. It’s no wonder 35 million people visit each year and some of them end up living in San Diego after their vacation.

Whether those people choose to plant roots depends a lot on budget. What can you afford?

The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2023.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com

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Home decor is a manifestation of personal style, and 2024’s interior design trends provide even more ways to express your point of view—boldly.

The accent walls and mid-century modern furniture that ruled 2023’s interior design trends aren’t disappearing entirely. But in the upcoming year, we can say goodbye to standard design rules and all-minimal-everything. Embrace clashing patterns, chrome counters, ultra-luxurious materials, and maximalism. Whether that means trading in beige soft sheets for a Barbiecore pink bedding set, or adding bow-adorned wallpaper to your kitchen a lá Sandy Liang, nothing is off-limits in 2024.

Like a fun pair of heels or sparkly party dress, 2024’s home trends are all about embracing creativity and fun. With expert input from interior designers and trend predictors, explore the five most popular interior design trends of 2024 that will help you express your individuality through your space.

2024 Interior Design Trend: Kitschy Kitchens

Oleksandr Shcherban//Getty Images

Gone are the days of clean marble and white walls in the kitchen. In 2024, we can expect to see more personality, color, and spunk in this essential area.

“We’re going to say goodbye to farmhouse kitchens, and hello to Kitschy Kitchens, or what we like to call ‘Kitschens,’” says Pinterest global trends and insight lead Sydney Stanback. “A way that people can tap into this trend is through incorporating thrifted finds, vintage appliances and eye-jarring pops of paint into their kitchen designs and cooking areas.”

2024 Interior Design Trend: Plenty of Patterns

Harrison Eastwood//Getty Images

Clean white walls are on their way out. “Having languished in the realm of neutrality for what feels like an eternity, we’ve witnessed the rise and subsequent demise of farmhouse, mid-century modern, and the all-encompassing minimalism craze. The universal aesthetic is teetering on the edge of ‘been there, done that,’” says Danielle Walish, Havely’s VP of merchandising and product design. “People are craving homes with character, personality, and a bit of oomph–a bold departure from the subdued styling that has held sway for too long.” Now, it’s time for a pattern on pattern (on pattern) renaissance.

“We’re not just talking about a small print here and there,” Walish elaborates. “It’s all about mixing it up–upholstery, textiles, wallpaper and beyond. From classic stripes to whimsical florals, modern motifs to organic botanicals. It’s all about making a statement.”

2024 Interior Design Trend: Master Metals

First chrome metallics came for statement earrings, then they came for home interiors. In 2024, metallic hues will enter living spaces in a new, big way.

“A trend that we’ve been seeing pop up recently, specifically within the fashion space–thanks to a certain very iconic artist who was on tour this summer–is cool silver tones. And cool silver tones and bold chrome will continue to grow in 2024, but will also evolve into the home category,” Pinterest’s Stanbuck says. “People trade in their trusty neutrals for something a bit more hardcore. We especially see that Gen Z and Millennials on Pinterest are driving this heavy metal aesthetic.” Aluminum accents are a shortcut to bring the shiny trend into home decor.

2024 Interior Design Trend: Saturated Spaces

asbe//Getty Images

Whether you want a pop of pink or a moody sitting room, 2024 is all about accessorizing with color. “From rich blacks and sultry navies to more lively hues of blues, greens, and even pinks, the color trends of 2024 advocate for a daring approach,” says Havenly design editor Heather Goerzen. “Excitingly, we’re observing a refreshing pushback against the ubiquitous all-white aesthetic. Whether through the application of monochromatic paints or the embrace of deep, saturated color schemes, color in all its glorious shades is reclaiming the spotlight.”

The expert notes that the trend manifests everywhere from painted alcoves and striking wallpapers to deep wood tones and evocative upholstery. “If ever there was a moment to unleash your color perspective,” Goerzen says, “it’s now.”

2024 Interior Design Trend: Updated Luxe Materials

Quiet luxury was never just about fashion; it also crept into the home. “A year ago, everything, everywhere, was light-washed oak, calacutta marble, and matte accents,” Havenly VP of creative and design Shelby Girard reflects. “At first, this felt like such a refreshing scene–it was simultaneously calm and inspiring, collected and effortless. However, with such widespread adoption, particularly with new builds, the aesthetic began to feel a little…expected.” That’s why, in 2024, we’re seeing a return to luxurious materials of yore.

“As traditional design is once again taking center stage, we’ve seen a backlash against the usual materials and a desire to seek out elements that in and of themselves are more unique, dramatic, and notable,” Girard explains. “Think richly veined marbles in a range of striking colors, lush velvets with added dimension, crystal chandeliers for a hint of glamour, dark wood tones that speak to heritage, and un-lacquered hardware for a lovely patina.”

Why trust Harper’s Bazaar?

For more than 150 years, Harper’s Bazaar has been the preeminent fashion, beauty, and lifestyle resource for women at every age. We cover what’s new and what’s next in home by working with the world’s leading authorities in interior and architectural design, textiles, and more. Every story we publish has been thoroughly researched and vetted by our team of editors and industry experts.

Tatjana Freund is Hearst’s Fashion & Luxury Commerce Editor, covering beauty, fashion and more across multiple brands. Previously, she worked at ELLE.com and Marie Claire. She’s a fan of whiskey neat, podcasts that give her nightmares, and one time Zoë Kravitz laughed at a joke she made. 

Source: harpersbazaar.com

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The National Association of Realtors (NAR) releases two widely followed home sales reports.  Existing Home Sales measure transactions of homes other than new construction (i.e. previously owned and occupied homes).  The Pending Sales index is an advance indicator for Existing Homes.  It measures contract signings but not closed sales.

Through a combination of historically low affordability and inventory, both metrics have been operating at the lowest levels in more than a decade (not including the temporary drop in pending sales seen at the onset of pandemic lockdowns). Today’s pending sales update kept the index perfectly unchanged at those long term lows.

There were small regional variations as follows:

  • Northeast… +0.8% versus last month (down 6.4% from last year)
  • Midwest …. +0.5% versus last month (down 2.2% from last year)
  • South……… -2.3% versus last month (down 6.5% from last year)
  • West………. +4.2% versus last month (down 4.9% from last year)

As seen in the chart above, the sharpest deceleration in the pace of sales is likely behind us.  Recent changes have been much smaller by comparison.  NAR is hopeful for 2024, citing the recent decline in mortgage rates.

Additionally, NAR’s Chief Economist Lawrence Yun noted “although declining mortgage rates did not induce more homebuyers to submit formal contracts in November, it has sparked a surge in interest, as evidenced by a higher number of lockbox openings.”

Source: mortgagenewsdaily.com