The home appraisal is an integral part of the home selling process. It helps to determine the “market value” of a property so buyers neither overpay for a house nor get it for a “steal.” The appraisal breaks down into three parts, though this can vary by state:
● Inspection ● Comparables (how other homes in the neighborhood are valued) ● Final report
As you prepare for a profssional home appraisal, here’s what you can do to ensure you get the best possible report and value for your home.
Keep Up Appearances
Ensure the following when an appraiser comes to assign a market value to your home: ● A healthy and hospitable appearance ● Proper drainage away from the foundation and/or basement ● Egress windows in all bedrooms for fire safety ● For homes built before 1978, no lead-based paint concerns ● Handrails on all stairs and steps ● A properly functioning heating system that provides ample comfort ● A roof in good condition
Though home appraisers won’t put a “black mark” in their books for the messiness of your home, it does help to have it organized. They’ll be able to see some of the high selling points if they’re not covered under clutter.
Provide Necessary Paperwork
Appraisers absolutely must have all of the paperwork available about your property before they arrive. If they don’t get this information from your lender or broker beforehand, then you should have it in a folder, ready to hand over. This information includes: ● Major improvements ● Age and condition of the roof, HVAC system and major appliances ● Permits for any DIY projects
The more information they have on-hand about your house, the better they can value it.
List Only Essentials
Never list extra square footage in your overview to the appraiser. While you may think your basement or attic counts as square footage, this isn’t always the case. If you’re unsure, it’s best to hire a home inspector or REALTOR® to advise you on acceptable square footage. You should also take care to provide accurate square footage for individual rooms. While you might be tempted to add a few extra square feet here and there, your appraiser has no problem looking up the actual numbers — and it could hurt you in the end.
Conclusion
Home appraisals aren’t just for sellers; they’re for homebuyers and refinancers too. In the case of a buyer, a buyer’s lender will generally have a different appraiser look through the home and perform an independent assessment. If the buyer’s assessment doesn’t match up against the seller’s, discrepancies may be addressed as needed. It also helps to see where potential problems may lie before listing your home, in case you need to make repairs.
A common misbelief is that one must be rich to invest. It’s easy to invest with little money in a variety of assets and save for your goals. More platforms let you “micro invest” and purchase small amounts of expensive assets.
Even if you only invest a few dollars each month, that money can start building wealth.
Consistently investing small amounts can be more effective than waiting to accumulate a lump sum because you can earn compound interest.
Some people may never invest because they don’t think they have enough money.
In This Article
Best Ways to Start Investing with Little Money
It’s possible to invest as little as $5 at a time and diversify your portfolio. As your financial situation improves, you can increase your monthly investments and try more ideas.
1. Invest in Index Funds
Investing in index funds can be the best option to start investing small amounts of money.
First, index funds let you invest in hundreds of companies with a single investment to quickly diversify your portfolio and minimize risk.
Second, most index funds have low investing fees and expense ratios. For example, a fund with a 0.03% expense ratio costs 30 cents in annual fees.
Most brokers don’t charge trade commissions to buy or sell index funds. Paying fewer fees means you can invest more cash.
Some of the types of index funds you can invest in include:
US stocks
International stocks
Emerging markets
Corporate bonds
Government bonds
Real estate investment trusts (REITs)
The various online stock brokers offer stock and bond index exchange-traded funds (ETFs). These funds trade like individual stocks. The share price fluctuates during the market day and you can buy shares at any time.
Your 401k provider likely offers index mutual funds. The investing strategy is the same except the share price updates once a day after the stock market closes.
Most online brokers offer index funds and don’t charge any trade commissions. However, some can be easier to invest with when you have little money.
Minimum Investment: $5 (varies by broker)
Betterment
Using a robo-advisor like Betterment can be one of the easiest ways to invest in index funds. This fully-automated investing app automatically rebalances your portfolio to maintain your target asset allocation.
You can also enable tax-loss harvesting to minimize your taxable investment income by selling investment losses to offset your investment gains.
You will answer several questions about your age, investment goals and risk tolerance to recommend an investment portfolio of stock and bond index ETFs.
As you grow older, Betterment shifts your portfolio to a more conservative allocation.
Not having to manage your portfolio is one advantage of using a robo-advisor when you don’t have the time or desire to self-manage your investments.
Betterment also offers fractional investing so you can buy partial shares of funds to instantly diversify your portfolio.
Other brokers may require you to buy whole shares which makes buying multiple funds at once difficult if you have limited funds.
You can create a portfolio with $0 and start investing with a $10 initial deposit. The annual account fee for Betterment is 0.25% of your portfolio value.
Acorns
Another unique way to invest in index funds is by using Acorns. This micro-investing app invests your spare change by rounding up your debit and credit card purchases.
You can choose to invest in a premade portfolio of stocks and bonds with different risk levels.
Acorns buys fractional shares of index ETFs when with as little as $5. Taxable and retirement investment accounts are available along with an online checking account.
Monthly plan fees range between $1 and $5 per month.
2. Workplace Retirement Accounts
A workplace retirement account such as a 401k, 403b or a Thrift Savings Plan (TSP), this can be the best place to start investing with little money. See if your employer offers matching contributions. If so, invest enough each month to earn the full match and invest “free money.”
If your workplace doesn’t offer a retirement plan or matching contributions, you can open an individual retirement account (IRA). Most brokers offer IRAs with no account fees or minimum initial deposits. You have multiple investment options.
One perk of investing with a retirement account is the tax benefits. You only pay taxes once. Traditional contributions reduce your current annual income, grow tax-deferred and you pay income taxes when you make a withdrawal. Roth contributions require you to pay income taxes upfront but your withdrawals are tax-free.
Your workplace retirement account investment options can include:
Stock index mutual funds
Bond index mutual funds
Target date funds
Company stock
The investment options are different for each employer yet most plans offer target date funds. Choosing a target date fund that’s nearest to your planned retirement year can be a good option. The fund invests in stocks and bonds and adjusts to a conservative risk tolerance as retirement approaches.
If you only decide to invest in a target date fund, you won’t have to rebalance your asset allocation. However, you should monitor the target date fund performance. You may also decide to self-manage your portfolio by buying index funds to reduce your investment fees.
You can invest as little as $1 at a time into each fund. If you’re uncomfortable managing your own retirement account, Blooom can provide a free portfolio analysis and recommend a portfolio allocation.
Minimum investment: $1
3. Individual Stocks
After establishing an index fund portfolio, you may decide to buy stock in individual companies. There are many online brokers to choose from and most don’t charge account fees or trade commissions to buy or sell shares.
You may decide to buy dividend-paying stocks to earn consistent passive income. Another option is holding companies with strong growth potential that can beat the stock market but may not pay a dividend.
M1 Finance is one of the best free investing apps. You can buy fractional shares of stocks and ETFs with a minimum $25 investment. There are also premade ETF portfolios that can make it easier to diversify. As you invest new money, M1 rebalances your asset allocation.
The minimum initial deposit is $100 for taxable accounts and $500 for retirement accounts to start using M1 Finance.
You can also consider investing with Charles Schwab. You can buy fractional stock slices as small as $5 for many stocks and there are no trade fees or account minimums. But, you will need to self-manage your investment portfolio.
Minimum investment: $5
Tip: Using one of the top investment sites can make it easier to research stocks.
4. Crowdfunded Real Estate
Real estate is a longstanding way to earn passive income without relying on the stock market. However, owning investment properties is expensive and can be time-consuming.
Thanks to real estate crowdfunding, you can invest small amounts of money into commercial and multi-family real estate. These properties have multiple tenants and can provide a more stable income than a single-family rental property. A property manager screens the tenants, collects rent and makes repairs.
You can earn recurring dividends from monthly rent payments. It’s also possible to make money when a property sells for a higher value than the original purchase price.
DiversyFund is one of the best crowdfunding platforms. You can start investing as little as $500. The Growth REIT lets you invest in multifamily apartments across the United States.
One downside of crowdfunded real estate is the multi-year investment commitment. Most platforms require a five-year investment to avoid early redemption fees. As a tradeoff for the long-term commitment, you can earn annual returns that compete with the historical S&P 500 average return of 7% per year.
Minimum investment: $500
5. Small Business Bonds
The bond index funds you invest in hold corporate and government debt. Investing in small business bonds can help you earn a higher yield. Worthy Bonds yield 5% per year and let you invest as little as $10 at a time.
Each bond matures in 36 months but you can sell your position sooner with no early withdrawal penalty.
Read our Worthy Bonds review to learn more.
Minimum investment: $10
6. High-Yield Savings Accounts
It’s wise to keep cash that you need instant access to in a high-yield savings account. Banks are a low-risk way to earn passive income but your returns are not as high.
You might consider keeping your emergency fund in a high-yield savings account that doesn’t charge any account fees. Also, consider opening separate “sinking fund” accounts for various savings goals to avoid borrowing money. A savings account can also be a good place to park cash until you decide where to invest it and earn a higher potential return.
Ally Bank has a competitive interest rate for the high-yield savings account. There are no account fees or minimum balance requirements. The Surprise Savings booster tool can help you calculate a “safe-to-spend” amount and transfer your extra cash into savings.
Minimum investment: $1
7. Certificates of Deposit
Investing in stocks and bonds can provide higher investment returns but carry more risk. A bank certificate of deposit locks in a specific interest rate for the investment term. For example, a 12-month term CD has the same interest rate for the next 12 months.
Instead of keeping your free cash in an interest-bearing savings account, consider opening a bank CD with a similar or higher interest rate.
If the savings account interest rate drops, the CD can earn more interest until the CD matures. Most CDs have early redemption penalties if you withdraw the cash before the term ends. At the end of the term, you can redeem your CD balance penalty-free or renew the CD at the then-current term.
Some banks, including CIT Bank, offer no-penalty CDs. These CDs don’t charge an early withdrawal penalty but may offer lower yields than a term CD.
As bank interest rates are low, the passive income you earn from CDs can be lower than the inflation rate. But earning some interest income can be better than nothing.
Minimum investment: $100
8. Peer-to-Peer Investing
You earn income from savings accounts and bank CDs as the bank lends your money at a higher interest rate. Peer-to-peer lending platforms let you earn a higher rate as you lend directly to the borrower and bypass the bank.
Prosper lets you invest in crowdfunded personal loans with a three-year or five-year repayment term. Borrowers make monthly payments and you make money from the interest payment, minus a 1% service fee. The historical annual returns are between 3.5% and 7.6%.
You can lose money if the borrower defaults on the loan. To avoid losing money, Prosper lets you buy notes in $25 increments and recommends a $2,500 initial investment to properly diversify. You can invest in multiple loans to diversify your portfolio.
Prosper also assigns each borrower a risk rating and you can see basic credit profile details. There’s also an auto-invest feature that spreads your investment across multiple risk ratings. You might be able to easily diversify your portfolio by auto-investing and avoid investing in too many risky loans.
Minimum investment: $25
9. Physical Gold
Precious metals such as physical gold and silver are a popular alternative asset. Unless you invest in gold royalty stocks, you won’t earn dividend income. You make money by selling your precious metal investments above your purchase price.
Buying gold coins and bars can be one of the best ways to invest in gold. Physical gold is expensive and you may not be able to buy an entire ounce or gram at once.
Vaulted lets you buy fractional shares of physical gold bars. Your stash is held at the Royal Canadian Mint. Once your balance is high enough, you can request FedEx delivery to receive your physical gold. There is a 1.8% transaction fee to buy or sell and a 0.4% annual maintenance fee.
It’s also possible to invest in gold trust ETFs that trade on the stock market. Most investing apps let you trade these funds. The share price mimics the price of physical gold.
But most gold ETFs don’t offer physical delivery as the fund family owns the bullion.
Minimum investment: $10
10. Cryptocurrency
When you’re deciding what to invest in first, cryptocurrency probably isn’t going to be at the top of the list. After all, this digital asset is highly volatile and doesn’t earn interest.
Many people who buy crypto do so as an alternative to stocks and gold.
For example, you might buy cryptocurrency as a way to diversify once you hold a sufficient amount of stocks, index funds and gold.
The most popular cryptocurrency is Bitcoin. This cryptocoin has the best name recognition and more merchants accept it as payment instead of paper currency.
There are other “alt-coins” like Ethereum that can also be worth owning if you believe in the long-term potential of cryptocurrency.
It has been fairly difficult to buy cryptocurrency but more platforms are making it easy to buy cryptocurrency. PayPal and Square let you buy Bitcoin and use it to pay for purchases.
However, you won’t be able to move your Bitcoin balance off of their platform.
Another easy way to buy cryptocurrency is through an online broker like eToro. You can trade cryptocurrency futures after a minimum $50 initial deposit.
EToro also lets you copy the investment portfolios of experienced cryptocurrency investors which can improve your income potential.
A third way to buy cryptocurrency is using a digital currency exchange such as Coinbase. Buying directly from an exchange lets you own real Bitcoin and alt-coins. You can transfer them to a cryptocurrency wallet for added security from hackers.
No matter where you decide to buy cryptocurrency, you can buy fractional shares of Bitcoin and other coins. Investment minimums and transaction fees vary by platform.
Minimum investment: $2 (varies by platform)
11. Treasury Bonds
Most investors get exposure to government bonds by holding bond index funds in their brokerage account or 401k workplace retirement plan.
As bonds can be pricey and confusing to buy, bond funds make it easy to earn passive income.
You can have more control over which bonds you own by buying U.S. Treasury bonds. You can choose the maturity date. Each Treasury bond has a $100 minimum investment with a maturity date of up to 30 years.
It’s also possible to buy Treasury Inflation-Protected Securities (TIPs) as a hedge against future inflation.
Another option is purchasing Series I or Series EE Savings Bonds. Both types of savings bonds have a $25 minimum investment.
You can buy Treasury bonds from TreasuryDirect.
Minimum investment: $100 for Treasury notes and bonds ($25 for savings bonds)
12. Fine Wine
A long-term investing idea is owning fine wine. You can open a standard portfolio at Vinovest with a $1,000 minimum initial investment.
Vinovest automatically builds your wine portfolio making it easy to start if you’re unfamiliar with wine investing.
Each bottle in your portfolio remains in climate-controlled cellars across the world and is insured against damages. You decide when to sell your wine. It’s possible to request delivery if you want to open a bottle.
Collectible wine can increase in value as it ages and the scarcity of unopened bottles increases. Wine investing is like owning physical gold and doesn’t earn dividend income.
It can take up to 30 years to earn the best value before you sell a bottle.
Minimum investment: $1,000
13. Fine Art
Another unique investment option is investing in fine art. Masterworks lets you buy shares in classic and modern pieces with a $1,000 minimum investment.
The holding period for most pieces is between three and ten years. You earn a profit if the piece sells for a profit.
Due to the relatively high initial minimum investment and waiting years to earn income, you may invest small amounts of money in other ideas first to make money fast.
Minimum investments: $1,000
Summary
There are many ways to start investing little money today and earn recurring income. Many platforms have small minimum investments which make it easy to try several ideas and diversify your portfolio.
As you increase your income, you can boost your monthly investment.
How do you invest your money? Which idea are you going to try first?
Josh is a personal finance writer and Founder of MoneyBuffalo.com. He has been featured in publications like Student Loan Hero, Well Kept Wallet and the US News and World Report.
Every once in a while I get a question from a reader about how to get rid of a timeshare. Sometimes the person is asking for themselves, but other times, they are trying to help a friend or family member.
The problem is that timeshares aren’t as amazing as the salesperson claims they are. They are expensive, you probably won’t use them as much as you think, timeshare resale values are incredibly low making them hard to sell, and more.
So, if you have been thinking about purchasing a timeshare or if you are wondering how to get rid of a timeshare, today’s article is for you.
Many adults have attended a timeshare presentation, and even more have been asked to attend one. You are usually offered something if you stay the whole time, such as a free vacation, an iPad, a cruise, or something else that is quite enticing. And, that’s how they get you interested.
All you have to do is listen to the presentation and get your free gift. Sounds simple enough, right?
But, after sitting through the timeshare presentation and listening to the salesperson talk about all the “benefits” of owning a timeshare, you may be intrigued.
Even though you told yourself that you weren’t going to purchase anything, the salesperson is well-trained and you can’t resist something that seems like such a good deal.
Many people cannot say no in these situations, and that is why around 10,000,000 households in the United States own a timeshare.
I had no idea that the timeshare business was this large. Maybe I’m missing something, but the negatives that I’m going to explain in this article seem to significantly outweigh the positives. I’m honestly shocked that there are that many timeshare owners out there, and many sadly end up regretting their purchase.
One of the issues with timeshares is that there are different types, some of which you pay for but never actually own. Those are called non-deeded timeshares, and they fall into two categories:
Right-to-use systems- You sign a lease from anywhere from 20 to 99 years and pay for the right to use the timeshare. It would be very difficult to sell something you never own.
Points-based system- You purchase points each year to trade for reservations at different properties owned by a timeshare company. Some companies let you “bank” points that can be rolled over to another year.
There are also timeshares called deeded timeshares. With these ones you share ownership of the timeshare with other people. These usually fall into two categories:
Fixed-week system- You get to use the timeshare for the same specific week each year. That means you will have to be available that same week every year.
Floating-week system– Same as above, but the difference is that you get to pick the week you use your timeshare. You may compete with other people for busy weeks or seasons.
Lately, I’ve been hearing about more and more people buying timeshares. It’s been brought up by my readers, in my Facebook group, and by my friends. But, at the same time, I have seen more and more people asking how to get rid of a timeshare.
Someone I know spent $15,000 on a timeshare. I know of another person who has bought multiple timeshares with their student loans.
I also once read a post on Facebook that said, “Please, help me sell my timeshare!” This person was trying to sell their timeshare for $1 and there weren’t any offers yet. They were looking to Facebook as a last resort and wanted friends to share their post.
Sure, I have an open mind and perhaps sometimes timeshares are an okay idea, so I won’t completely discredit them. However, I’ve never met someone who bought a timeshare and was happy with their purchase years down the line.
I’ve only heard horror stories about timeshares.
Due to this, I’ve never really understood the appeal of timeshares.
And I’m not sure I ever will.
I’m not writing this post to offend anyone. Like I said, I’m sure there are cases that exist where someone has found a great deal on a timeshare and they know they’re going to actually use it. I won’t ignore the possibility of that. However, I know that each and every year many people buy timeshares thinking they are a great deal when in reality most of the time they are not.
If you are interested in learning even more about how to get rid of a timeshare, please read the free guide The Consumer’s Guide To Timeshare Exit.
Related content:
In today’s post, I’m going to talk about why you should skip the timeshare, as well as what to do if you already own one and are looking for a timeshare exit.
Below are 5 reasons not to buy a timeshare.
1. Timeshares are expensive from Day 1.
Timeshares are expensive.
Even the people who’ve bought them told me that their number one hesitation was price, and it goes beyond the upfront cost.
Actually, many people end up taking loans out for their timeshares. This means that your timeshare might end up costing two or even three times the cost over the duration of the loan due to interest.
If you are buying a timeshare, then the cost of owning one is the main upfront costs being the lump sum price you pay to “buy” it. Then, there are also the interest fees if you are using a loan to buy your timeshare and also closing costs.
According to the American Resort Development Association, the average price for a one week timeshare is approximately $21,455, with an average annual maintenance fee of around $1,000 on top of that.
That is a lot of money. No wonder so many people want to learn how to get rid of a timeshare.
2. Timeshares have expensive annual maintenance fees.
Maintenance fees are something that you’ll have to pay if you own a timeshare, and you’ll pay them every year for as long as you own the timeshare. This annual fee is to pay for the cost of operating the resort. This covers the general upkeep up the timeshare property, landscaping, utilities, staffing, plus more for future upgrades and repairs.
As I said earlier, the average annual maintenance fee on a timeshare is around $1,000, and in many cases it can be over $1,000 a year depending on your timeshare agreement. I did some research and found some timeshares that had annual maintenance fees of over $2,000 a year.
Maintenance fees need to be paid year after year, regardless if you use the property or not. If you stop paying them, the resort your timeshare is at can begin the collections process. This can cause long-term negative effects to your credit score and finances.
Also, the annual maintenance fee can increase over time as well, in many cases, at a rate that is higher than inflation. It can more than double in just a few years, and there is no cap on how high a resort or timeshare company can raise your rates.
This is the number one reason that so many people want to learn how to get rid of a timeshare.
3. Timeshares are near impossible to sell.
If you want to learn how to get rid of your timeshare because of the high annual cost, you are tired of paying monthly payments on your loan, or if you simply just aren’t using the timeshare, you will have a hard time selling it.
Timeshares do not appreciate like normal property does. This is another reason I do not think they are suitable for the average household.
You know that person that I said was on Facebook trying to sell their timeshare for $1? That is not uncommon at all.
If you do a quick search online, you will find hundreds of timeshares going for just $1.
If they are such a great deal, why are people trying so hard to get rid of them?
Like I said, the number one reason that people want to sell their timeshares is because of rising maintenance fees. You hear one price when you are sold your timeshare, but the costs keep increasing making it harder and harder to budget for.
This is why people want to sell their timeshares for so cheap – anything to get out of the constant and increasing costs.
Because there are so many people trying to sell timeshares without any luck, there are companies popping up all over the internet claiming to help people get out of timeshares. However, many of these companies are scammers. This presents another danger to consumers who have purchased a timeshare.
4. You may not use the timeshare as much as you think.
When you purchase a timeshare you probably think that you’re going to use it every single year. You might even laugh at someone who says you’ll eventually want to learn how to get out of a timeshare.
You tell them and yourself it will be an easy way to go on an inexpensive vacation and that you’ll actually save money. However, there are many reasons why you might not use your timeshare every year, which then becomes a waste of your money.
Maybe you have a bad income year and can’t afford to travel to your timeshare, an emergency comes up, you want to take a vacation somewhere else, etc.
And, whether you use your timeshare or not, maintenance fees need to be paid year after year.
For every year that you don’t use your timeshare, that’s more money you’ve invested in it with no return, not even a fun vacation. Really, there are much better ways you could have invested your money.
5. You have plenty of other options for your vacation.
Timeshare salespeople try to find buyers by claiming that timeshares are a great way to save money on a vacation. They tell you that every year you’re going to be able to visit this beautiful place and that it will actually save you money.
I do not understand that.
Spending $20,000 or more on a timeshare where you only get around one week annually seems very expensive. In some cases you may struggle to get the week of your choice. And, don’t forget the maintenance costs!
There are PLENTY of ways to go on a more affordable vacation. You could shop around for the best prices on hotels and flights, use credit card rewards, visit during the off season, bundle your trip, and more. I’m sure you could spend less on an annual vacation than what it would cost to own a timeshare.
Plus, if you are still wanting the “timeshare feel,” you can rent timeshares from other owners for a FRACTION of what they have paid. You can usually find them for a couple hundred dollars per week, whereas the owner is still paying the maintenance fees each year that are most likely twice or three times as much.
Related articles:
How to get rid of a timeshare.
Is it hard to get out of a timeshare?
If you currently own a timeshare, you may be wondering how to get rid of a timeshare. If so, then I can help with that today.
I recommend the company Newton Group Transfers to help you learn how to get rid of a timeshare. Newton Group Transfers helps timeshare owners get rid of the timeshare they no longer want by ending your timeshare agreement so that you can stop paying high maintenance fees.
For over 15 years, they have helped thousands of people exit their timeshares, and they have an A+ rating with the Better Business Bureau. Remember, there are lots of scammers out there, so research any company you are thinking about using to make sure it is highly rated and legit.
You can contact Newton Group Transfers in the link above or call them at 888-713-0403.
If you are interested in learning more about this subject, please read their free guide The Consumer’s Guide To Timeshare Exit.
Have you ever been to a timeshare presentation? What do you think of timeshares?
2021 VA Home Loan Limit: $0 down up to $5,000,000* (Subject to lender limits) /2 open VA loans at one time $550,850* (Call 888-573-4496 for details).
How to Apply for a VA Home Loan?
This is a quick look at how to apply for a VA home loan in Solano County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Solano County. If you have any questions, you can call us at VA HLC and we’ll help you get started.
Get your Certificate of Eligibility (COE)
Give us a call at (877) 432-5626 and we’ll get your COE for you.
Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
Get pre-approved, to get pre-approved for a loan, you’ll need:
Previous two years of W2s
Most recent 30 days paystubs or LES (active duty)
Most recent 60 days bank statements
Landlord and HR/Payroll Department contact info
Find a home
We can help you check whether the home is in one of the Solano County flood zones
Get the necessary inspections
Termite inspection: required
Well or septic inspections needed, if applicable
Get the home appraised
We can help you find a VA-Certified appraiser in Solano County and schedule the process
Construction loan note: Construction permit/appraisal info
Building permit
Elevation certificate
Lock in your interest rates
Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
Close the deal and get packing!
You’re ready to go.
What is the Median Home Price?
As of March 31st, 2021, the median home value for Solano County is $510,353. In addition, the median household income for residents of the county is $81,472.
How much are the VA Appraisal Fees?
Single-Family: $600.
Individual Condo: $600.
Manufactured Homes: $600.
2-4 Unit Multi-Family: $850.
Appraisal Turnaround Times: 7 days.
Do I need Flood Insurance?
The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
In Solano County, there are several flood hazard areas, especially around the county’s many wetlands. One such flood hazard area is south of Suisun City which has considerable flood-prone areas south of Rio Vista Highway. In addition, low elevation areas around Carquinez Strait are also considered flood hazards.
How do I learn about Property Taxes?
Marc Tonnesen is the Solano county tax assessor. His office can be reached at 675 Texas Street, Suite 2700 Fairfield, CA 94533. In addition, his office can also be reached by calling (707) 784-6200.
The state of California offers various incentive programs that expand statewide for new, growing, and relocating businesses. Two of these programs are California Competes Tax Credit which offers qualifying businesses tax credit and the New employment Credit program which offers a tax credit for taxpayers who hire full-time employees. These and many other programs help in further diversifying the state’s economy.
What is the Population?
As of 2019, Solano County’s population is 447,643 which has seen an 8% increase in the last decade. Moreover, demographically speaking, 37% of the population is White, with 26% Hispanic, and 16% Asian.
Most county residents are between 18 and 65 years old, with 22% under 18 years old and 16% older than 65.
In total, the county has about 149,067 households, with an average of two people per household.
What are the major cities?
The county has seven cities, including the city of Fairfield which serves as the county seat. There are six other cities in the county which include Benicia, Dixon, Rio Vista, Suisun City, Vacaville, and Vallejo.
About Solano County
Solano County, California is home to strong healthcare, retail trade, and construction employment industries. Hence, the most common types of employment in the county are in the office administrative, sales, management occupations.
When it comes to education, the county is home to eight school districts that offer education ranging from pre-K to senior year in high school. In addition, the county is also home to Solano Community College, Touro University California, and California State University Maritime Academy which provide higher education opportunities. Moreover, the most common concentrations for students in the county are in the Liberal Arts, Biological Sciences, and Business Administration.
In addition to its workforce and education, the county is also home to rich art and culture institutions like the A gallery, Arts Benicia, Fairfield Center of Creative Arts, and Vacaville Art gallery. Moreover, the county is also home to several museums like the Western Railway Museum and the Solano History Exploration Center.
Finally, outside of the city, there are also several recreational areas within the county like Lake Solano Park, Lynch Canyon Open Space Park, and Sandy Beach Park. All of which provides an escape from city life by providing opportunities for water activities, camping, and many other outdoor activities.
Veteran Information
The county is currently home to 32,811 veterans.
Bases Nearby:
Travis Air Force Base
Solano County is home to five VFW post:
Post-2333 Simmons-Sheldon – 427 Main Street, Suisun City, CA 94585.
Post 7244 Lt. Michael Libonati Jr. – 549 Merchant St. Vacaville, CA 95688.
Post 8151 Dixon – 231 N. First St. Dixon, CA 95620.
Post-1123 Carl H. Kreh – 420 Admiral Callaghan Ln. Vallejo, CA 94591.
Post 3928 Benicia – 1150 1st St. Benicia, CA 94510.
VA Medical Centers in the county:
Fairfield VA Clinic – 103 Bodin Circle, Building 778, Travis AFB, CA 94535.
RCS Pacific District Office – 420 Executive Court North Suite A, Fairfield, CA 94534.
Mare Island VA Clinic – 201 Walnut Avenue, Building 201, Mare Island, CA 94592.
County Veteran Assistance Information
Solano County Veteran Services Office – 675 Texas Street, Suite 4700, Fairfield, CA 94533.
Apply for a VA Home Loan
For more information about VA Home Loans and how to apply, click here.
If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.
VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.
VA Approved Condos
Name (ID): ALAMO CREEK (C00837) Address: AKA EDGEWATER
VACAVILLE CA 95688-0000 SOLANO Status: Accepted Without Conditions Request Received Date: 01/01/1983 Review Completion Date: 01/02/1983
Name (ID): BELVEDERE AT NORTHGATE (008331) Address: PHASE 1, 2, & 3
VALLEJO CA 94591 SOLANO Status: Accepted Without Conditions Request Received Date: 08/06/2009 Review Completion Date: 08/06/2009
Name (ID): COSTA DEL ORO III (000138) Address: SEAPORT DRIVE
VALLEJO CA 94590 SOLANO Status: Accepted Without Conditions Request Received Date: 11/09/1993 Review Completion Date: 11/09/1993
Name (ID): ELDORADO 1 & 2 (000058) Address:
VACAVILLE CA 94945 SOLANO Status: Accepted Without Conditions Request Received Date: 04/14/2004 Review Completion Date: 04/15/2006
Name (ID): FAIRFIELD’S CREEKSIDE MANOR (000326) Address: 1810 E. TABOR AVE
FAIRFIELD CA 94533 SOLANO Status: Accepted Without Conditions Request Received Date: 04/02/2018 Review Completion Date: 04/16/2018
As far as I know, only one reader of Get Rich Slowly knows me personally. And last week, I was having lunch with my one-person fan club. (Actually, I am not sure she’s even a fan, but she did buy my lunch. Thanks, Lisa!)
“You really stirred up some controversy with one of your recent posts,” Lisa said, a forkful of salad in hand.
“You must mean the one about not paying for our kids’ college, right?” I said.
“Yes, that’s the one. You know, it really made me think.” Without telling me her opinion on the subject, she said, “What do parents really owe their kids? Financially speaking, of course.”
“I actually wanted to write a blog post on that.”
Though Lisa and I went on to talk about all the financial gifts parents can give their children (we decided that parents taking care of their own futures is a great gift to give their children), this post is about cars. Should parents pay for their children’s transportation costs … or not?
A Car With Strings Attached
When I turned 16, I immediately got my driver’s license. I arrived home with a plastic ticket to freedom burning a hole in my wallet. As I understood it, I would be allowed to drive the family car, so I was totally surprised when my mom said my birthday present was parked out behind the garage. Even though my heart rate increased, I tried not to show my excitement as I nonchalantly walked outside … to find a small matchbox car “parked” in the snow. Ha ha. Very funny, Mom.
So, back to Plan A. Yes, I would be allowed to drive the family car. Yes, my parents would pay for the insurance and repairs, as long as said repairs were not from my own irresponsibility. I would pay for the gas, and I would have to forfeit the family car to my sister as soon as she turned 16. That gave me 22 months to save up for my own car.
“The hard part of this deal,” my dad said, “is that the car is the bargaining chip. When you get grounded, you’ll get grounded from the car. We will pick you up from work, and you’ll have to find your own ride to school or ride the school bus.”
Not that I ever experienced that part of the deal or anything. Ahem.
My husband had a different experience. He had to buy his own car right away and pay for everything. Like most things, we each think the way we were raised worked out best for us. And that always makes for interesting discussions.
Transportation Valuation
The way I see it, we have three options:
1. Buy and give a car to our kids. Pay for everything.
Pros — This gives you an opportunity to pick out the car. It should be something that is reliable, getting up in years, and something low on the cool-meter. I think a four-door sedan that their grandparents would drive is a good choice. Buying the car also allows your child to save money for something else.
Cons — Is it necessary and the best use of the family budget? Would the child take care of it as well as if the child had had to pay for it him/herself? Does this help the child to manage money better or not?
2. Allow our children to use our car like my parents did, but pay for all (or some?) expenses, other than gas.
Pros — The child has a longer time to save up money for other expenses. It’s a good “bridge” between learning to care for a car, pay for gas, and buying his or her own car. It also is a privilege that can easily be removed. (My husband argues that driving privileges can be removed, no matter who owns the car. He is right, of course.)
Cons — The child may not fully grasp the whole cost of car ownership if they only pay for the gas.
3. If the kid wants a car, the kid can buy a car. And pay for everything.
Pros — The child would fully grasp the whole cost of car ownership. I believe this scenario is the one in which the child would take the best care of the car.
Cons — This would require having a cushion in case of unexpected repairs, and careful budgeting to make sure the child can afford all the expenses associated with car ownership. (WOW! This sounds suspiciously like real life!) It does not allow them as much time to save for other expenses.
(As I have mentioned before, we live in a rural area. If you can live without your teenager using a car, that’s great! It would be doable in our case, but not convenient.)
As I look over this list of pros and cons, I am leaning toward something that’s between the second and third options. I would be fine with allowing the child to use our car, but it probably would be more helpful if they had to pay for the gas and a percentage of repairs and insurance. I know I was surprised at how much oil changes, new tires, and wear and tear repairs added up to once I bought my own car.
While we have at least six years to make this decision — and I don’t want to speed this up at all — I would like to start prepping our kids with our expectations so they aren’t surprised when I tell them their birthday present is parked by the garage.
Would you buy your child a car? If so, would you expect the child to pay for any expenses?
Inside: This guide will teach you about the different factors you need to consider when purchasing a home with a 70k salary.
There are a lot of factors to consider when you’re trying to figure out how much house you can afford. Your income, your debts, your down payment, and the interest rate on your mortgage all play a role in determining how much house you can afford.
Your situation will be different than the person next-door or your co-coworker.
Making 70000 a year is a great salary. You are making the median salary in the United States.
It’s enough to comfortably afford most homes and gives you plenty of room to save money each month.
But how much house can you actually afford?
It depends on several factors, including your down payment, interest rate, income, and credit score.
In this ultimate guide, we’ll walk you through everything you need to know about how much house you can afford making 70000 a year.
how much house can i afford on 70k
In general, you can expect to spend 28-36% of your income on housing.
Generally speaking, if you make $70,000 a year, you can afford a house between $226,000 and $380,000.
How much mortgage on 70k salary?
In general, you should expect to spend no more than 28% of your monthly income on a mortgage payment.
Thus, you can spend approximately$1633-2100 a month on a mortgage.
Just remember this is relative to the interest rate, term length of the loan, down payment, and other factors.
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28/36 Rule
But there’s one factor that trumps all the others: The 28/36 rule.
Also known as the debt-to-income (DTI) ratio.
The 28/36 rule is a guideline that says that your housing costs (mortgage payments, property taxes, homeowners insurance, and HOA fees) should not exceed 28% of your gross monthly income.
And your total debt (housing costs plus any other debts you have, like car payments or credit card bills) should not exceed 36% of your gross monthly income.
You must follow the 28/36 rule.
How to calculate how much mortgage you can afford?
If you’re like most people, you probably don’t know how to calculate how much mortgage you can afford.
This is actually a really important question that you need to ask yourself before beginning the home-buying process.
The answer will help determine the price range of homes you should be looking at. Plus know how much money you’ll need to save for a down payment.
Step #1: Check Interest Rates
Research current mortgage rates to get an accurate estimate. You can also check your credit score and search for average mortgage rates based on your credit score.
Right now, with sky-high inflation, you are unable to afford a bigger house when interest rates are hovering around 6% compared to ultra-low interest rates of 2.5%.
With a 70k salary, this can be the difference between $50-100k on the total mortgage amount you can afford.
Step #2: Use a Mortgage Calculator
Use a mortgage calculator to get an estimate of the home price you can afford based on your income, debt profile, and down payment.
Generally, lenders cap the maximum amount of monthly gross income you can use toward the loan’s principal and interest payment to not more than 28% of your gross monthly income (called the “Front-End” or “Housing Expense” ratio). Then, limit your total allowable debt-to-income ratio (called the “Back-End” ratio) to not more than 36%.
You can use a mortgage calculator to a ballpark range of what house you can afford.
Step #3: Taxes, Insurance, and PMI
When planning for a home purchase, it’s important to factor in all of your monthly expenses, including taxes, insurance, and PMI.
This will ensure that you get an accurate estimate of your home-buying budget based on your household annual income.
Don’t forget to include these payments to get a realistic understanding of your monthly budget.
Step #4: Remember your Living Expenses
When considering how much house you can afford based on your $70,000 salary, you must consider your lifestyle and current expenses.
It is important to factor in other monthly expenses such as cell phone and internet bills, utilities, insurance costs, and other bills.
More than likely, you will be approved for a higher mortgage amount than you would feel comfortable with. This is 100% what lenders will do.
They want to provide you with the most you can afford – not what you should afford.
Step #5: Get prequalified
Prequalifying for a mortgage is an important first step to take when estimating how much house you can afford.
It gives you a more precise figure to work with and helps you make a more informed decision based on your personal situation.
Remember that your final amount will vary depending on a number of factors, especially your interest rate, which will be based on your credit score.
Taking the time to research current mortgage rates helps you secure a better mortgage rate, giving you more buying power.
Home Buying by Down Payment
How much house can you afford?
It’s a common question among home buyers — especially first-time home buyers. Use this table to figure out how much house you can reasonably afford given your salary and other monthly obligations.
The assumption is 30 year fixed mortgage, good credit (690-719), no monthly debt, and a 4% interest rate.
Annual Income
Downpayment
Monthly Payment
How Much House Can I Afford?
$70,000
$9,552 (3%)
$1,750
$318,412
$70,000
$16,215 (5%)
$1,750
$324,316
$70,000
$34,058 (10%)
$1,750
$340,581
$70,000
$53,573 (15%)
$1,750
$357,152
$70,000
$75,094 (20%)
$1,750
$375,468
$70,000
$98,933 (25%)
$1,750
$395,731
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Mortgage on 70k Salary Based on Monthly Payment and Interest Rate
How much house can you afford on a $70,000 salary?
This largely depends on the current interest rate of the mortgage loan you’re considering. When interest rates are high, people aren’t actively buying as when interest rates are low.
By understanding these factors, you can better gauge how much house you can afford on a $70,000 salary.
The assumption is 30 year fixed mortgage, good credit (690-719), no monthly debt, and a 20% downpayment.
Annual Income
Monthly Payment
Interest Rate
How Much House Can I Afford?
$70,000
$1,750
3.25%
$406,796
$70,000
$1,750
3.5%
$396,231
$70,000
$1,750
3.75%
$386,101
$70,000
$1,750
4%
$375,994
$70,000
$1,750
4.5%
$357,554
$70,000
$1,750
5%
$339,954
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Home Affordability Calculator by Debt-to-Income Ratio
Around here at Money Bliss, we always stress that debt will hold you back.
In the case of buying a house, debt increases your DTI ratio.
Here is a glimpse at what monthly debt can cause your debt-to-income (DTI) ratio to increase. Thus, making the house you want to buy to be more difficult.
Annual Income
Monthly Payment
Monthly Debt
How Much House Can I Afford?
$70,000
$2,100
$0
$440,085
$70,000
$1,900
$200
$404,584
$70,000
$1,800
$300
$382,334
$70,000
$1,600
$500
$337,883
$70,000
$1,350
$750
$282,208
$70,000
$1,100
$1000
$226,582
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Increase your Home Buying Budget
Here are a few ways you can increase your home buying budget when buying a house on a $70k annual income.
By following these steps, you can increase your home buying budget and find a more suitable house for your income.
1. Pick a Cheaper Home
Home prices vary significantly in different parts of the country.
Moving out of a major metropolitan area with notoriously high housing costs can help you find more affordable homes.
There are plenty of ways to find a home that is cheaper than you would normally expect.
Look for homes that are for sale in less desirable neighborhoods.
Find homes that are for sale by owner or have not been listed yet.
Check for homes that are for sale outside of your usual price range and haven’t sold as they may drop their price.
Move to a lower cost of living area.
2. Increase Your Down Payment Savings
A larger down payment can reduce the amount you have to finance, which lowers your monthly payment.
Plus help you get a lower interest rate and avoid paying PMI.
Putting down at least 10-20 percent of the home sale price can help boost your home buying power. You can also take advantage of down payment assistance programs in your area.
3. Pay Down Your Existing Debt
Paying down your debts such as credit card debts or auto loans can help raise your maximum home loan.
Paying down your debts can help you qualify for a higher loan amount.
This is because when you have lower amounts of debt, your credit score is higher and your debt-to-income ratio is less. This means you are less likely to be rejected for a home loan.
4. Improve Your Credit Score
A higher credit score can lead to lower rates and more affordable payments.
You can improve your credit score by:
Paying your bills on time
Paying down your credit card balances
Avoiding opening new credit before applying for a mortgage
Disputing any errors on your credit report
This is very true! We had an unfortunate debt that wasn’t ours added to our credit report right before closing. While the debt was an error, it still cost us a higher interest rate and forced us to refinance once the credit report was fixed.
5. Increase Your Income
Asking for a raise, seeking a higher-paid position, or starting a side gig can help you increase the amount of home you can afford.
While you need two years of income from a side gig or your own online business to count as income, the extra cash earned helps you to increase the size of your downpayment. Plus it lowers your debt-to-income ratio with the savings you are setting aside.
What factors should you consider when deciding how much you can afford for a mortgage?
How much house can you afford on your current salary and with your current monthly debts?
This is a question that we are often asked, and it’s one that we love to answer.
We’ll walk you through all the different factors that go into this decision so that you can make an informed choice.
1. Loan amount
The loan amount is a key factor that affects the total cost of a mortgage.
If you have no outstanding debt, a 20% down payment, a high credit score, and a 3.5% interest rate from an FHA loan, you could be able to afford up to $508,000.
However, if you have debt, a smaller down payment, or a lower credit score, the loan amount you can qualify for will be lower.
Similarly, if you choose a 15-year fixed-rate loan, your monthly payments will be higher, but you will end up paying less in interest over the life of the loan than with a 30-year fixed-rate loan.
Ultimately, your loan amount will affect the total cost of your mortgage, so it’s important to consider all the factors when making your decision.
2. Mortgage Interest rate
Mortgage interest rates can have a significant impact on the cost of a mortgage. The higher the interest rate, the more expensive the loan will be.
For example, a difference between a 3% and 4% interest rate on a $300,000 mortgage is more than $150 on the monthly payment.
Remember, in the first few years of a mortgage, the majority of the payment goes toward interest rather than trying to reduce the principal amount.
3. Type of Mortgage
The primary difference between a fixed and variable mortgage is the interest rate and the amount of your payment
Fixed-rate mortgages offer the stability of having the same interest rate for the life of the loan.
Adjustable-rate mortgages (ARMs) come with lower interest rates to start, but those rates can change over the life of the loan. ARMs are often a riskier choice, as if the economy falters, the interest rate can go up.
Fixed-rate loans are typically the most popular choice, as the monthly payment amount is more predictable and easier to budget for. The terms of a fixed-rate loan can range from 10 to 30 years, depending on the lender.
Adjustable-rate mortgages (ARMs) have interest rates that can increase or decrease annually based on an index plus a margin. ARMs are typically more attractive to borrowers who plan on staying in the home for a shorter period of time, as the lower initial interest rate can make the payments more manageable.
The Money Bliss recommendation is to choose a 15-year fixed-rate mortgage.
4. Property value
Property value can have a direct effect on how much you can afford for a mortgage.
As the value of the property increases, so does the amount of money you will need to borrow to purchase it. This, in turn, affects the monthly payments and the amount of interest you will pay over the life of the loan.
This is especially important as many people have been priced out of the market with the rising home prices.
Additionally, higher property values can mean higher taxes, which will add to the amount you need to budget for your mortgage payments.
5. Homeowner insurance
Homeowner’s insurance is a requirement when securing a loan and it can vary depending on the value and location of the home.
Additionally, certain areas that are prone to natural disasters or are located in densely populated areas may have higher premiums than other locations and may require additional insurance like flood insurance.
As a result, lenders typically require that you purchase homeowners insurance in order to secure a loan, and may have specific requirements for the type or amount of coverage that you need to purchase.
Before committing to a mortgage, it is important to consider the cost of homeowner’s insurance and make sure it fits into your budget.
This is something you do not want to skimp on as the cost to replace a home is very expensive.
6. Property taxes
Property taxes are calculated based on the value of a home and the tax rate of the city or county where the property resides.
The higher the property taxes, the more you will have to pay in your monthly mortgage payment.
In states with high property taxes, the property tax bill can be a large sum of the mortgage payment.
It is important to consider these costs when comparing different homes and locations to ensure you can afford the home without stretching your budget too thin.
7. Home repairs and maintenance
It’s important to also consider other factors such as the age of the house, since some properties may require renovation and repairs that can cost more than the house price itself.
Beyond the cost of purchasing a home, homeowners will likely have other expenses related to owning and maintaining the property.
Also, many homeowners prefer to do significant upgrades to the home before moving in, which comes at an additional expense.
These can include ordinary expenses such as painting, taking care of a lawn, fixing appliances, and cleaning living spaces, which can add up.
Additionally, it’s advisable to buy a home that falls in the middle of your price range to ensure you have some extra money for unexpected costs, such as repairs and maintenance.
8. HOA or Homeowners Association Maintenance
This is often an overlooked factor by many new homebuyers, but extremely important as some HOAs add $500-800 per month to the total housing budget.
The purpose of a homeowners association (HOA) is to establish a set of rules and regulations for residents to follow as well as maintain the community or building.
These fees are typically used to pay for maintenance, amenities, landscaping, and concierge services.
HOA fees are used to finance community upkeep, including landscaping and joint space development, and can range from $100 to over $1,000 per month, depending on the amenities in the association.
9. Utility bills
When switching from renting to buying a home, you will have to factor in the costs of your monthly utility bills such as electricity, natural gas, water, garbage and recycling, cable TV, internet, and cell phone when calculating how much mortgage you can afford.
In addition, the larger the home, the higher the costs to heat and cool your new home.
Make sure to ask your realtor for previous utility bills on the property you are interested in.
10. Private Mortgage Insurance
The purpose of private mortgage insurance (PMI) is to protect the lender in the event of foreclosure. It is typically required when a borrower is unable to make a 20% down payment on a home purchase.
PMI allows borrowers to purchase a home with less upfront capital, but also comes with additional monthly costs that are added to the mortgage payment. These fees range from 0.5% to 2.5% of the loan’s value annually and are based on the amount of money put down.
PMI can also be canceled or refinanced once the borrower has achieved 20% equity in the home or when the outstanding loan amount reaches 80% of the home’s purchase price.
11. Moving costs
Moving is expensive, but also a pain to do. So, consider the moving costs associated with relocating from one location to another.
Typically fees for packing, transportation, and possibly storage, and can vary depending on the size of the move and the distance the move needs to cover.
Also, consider if by buying a home, you will stop having moving costs associated with moving from rental to rental.
FAQ
When determining how much house you can afford, it’s important to consider several factors.
These include your income, existing debts, interest rates, credit history, credit score, monthly debt, monthly expenses, utilities, groceries, down payment, loan options (such as FHA or VA loans), and location (which affects the interest rate and property tax). Also, think about the costs of maintaining or renovating a home.
Additionally, you should also evaluate your own budget and assess whether now is the right time to purchase a home. Taking all of these factors into account can help you set the maximum limit on what you can realistically afford.
A mortgage calculator can help you determine your home affordability by providing an estimate of the home price you can afford based on your income, debt profile, and down payment.
It works by inputting your annual income and estimated mortgage rate, which then calculates the maximum amount of money you’re able to spend on a house and the expected monthly payment.
Additionally, different methods are available to factor in your debt-to-income ratio or your proposed housing budget, allowing you to get a more accurate estimate of your home buying budget.
The debt-to-income ratio or DTI is used by lenders to assess a borrower’s ability to make mortgage payments.
This ratio is calculated by taking the total of all of a borrower’s monthly recurring debts (including mortgage payments) and dividing it by the borrower’s monthly pre-tax household income.
A high DTI ratio indicates that the borrower’s debt is high relative to income, and could reduce the amount of loan they are qualified to receive.
Generally, lenders prefer a DTI of 36% or less, which allows borrowers to qualify for better interest rates on their mortgages.
To calculate their DTI, borrowers should include debt such as credit card payments, car loans, student and other loans, along with housing expenses. It is important to note that the DTI does not include other monthly expenses such as groceries, gas, or current rent payments.
Closing costs can have an enormous impact on how much home you’re able to afford.
From application fees and down payments to attorney costs and credit report fees, these costs can add up quickly and affect your overall budget. Unfortunately, most of these closing costs are non-negotiable, but you can ask the seller to pay them.
When buying a house, it is important to research the different mortgage options available to you.
You can typically choose between a conventional loan that is guaranteed by a private lender or banking institution, or a government-backed loan. Depending on your monthly payment and down payment availability, you may be able to select between a 15-year or a 30-year loan.
A conventional loan typically offers better interest rates and payment flexibility.
While a government-backed loan may be more lenient with its credit and down payment requirements.
For veterans or first-time home buyers, there may be special mortgage options available to them.
Ultimately, it is important to talk to a lender to see which loan type is best for your personal circumstances.
When it comes to saving for a down payment, it’s important to understand how much you’ll need and how much it will affect your budget.
Generally, you’ll need 20% of the cost of the home for a conventional mortgage and 25% for an investment property. When you put down more money, it gives you more buying power and may help you negotiate a lower interest rate.
For example, if you’re buying a $300,000 house, you’ll need a down payment of $60,000 for a conventional mortgage. On the other hand, if you put down 10%, you can still afford a $395,557 house. But, you will have to pay for private mortgage insurance.
In addition, there are other ways to help you cover these upfront costs. You can look into down payment assistance programs.
Ultimately, the size of your down payment will depend on your budget and financial goals. You should never deplete your savings account just to make a larger down payment. It’s important to factor in emergency funds and other expenses when deciding on the best option.
Eligibility requirements for loan lenders can vary, but in general, lenders are looking for borrowers with a good credit score, a reliable income, and a history of employment or income stability.
For most loan types, borrowers will need to show a history of two consecutive years of employment in order to qualify. However, lenders may be more flexible if the borrower is just beginning their career or if they are self-employed and do not have W2 forms and official pay stubs.
Income verification also needs to be done “on paper”, meaning that cash tips that do not appear on pay stubs or W2s can not be used as income. The lender will look at the household’s average pre-tax income over a two-year period before determining the amount that can be borrowed.
In order to make sure that the borrower is financially secure, lenders will also pull the borrower’s credit report and base their pre-approval on the credit score and debt-to-income ratio. Employment verification may also be done.
For certain government-backed loan types, such as FHA, VA, and USDA loans, there may be additional or different requirements for eligibility. For instance, for FHA loans, the borrower must intend to use the home as a primary residence and live in it within two months after closing. VA loans are more lenient, and may not require a down payment.
The qualifications for VA loans vary based on the period and amount of time the borrower has served. There are many ways to qualify, whether the borrower is a veteran, active duty service member, reservist, or member of the National Guard. For more information on eligibility requirements for VA loans, borrowers can visit the U.S. Department of Veteran Affairs.
A good credit score will mean you have access to more lending options, better interest rates, and more purchasing power.
On the other hand, a poor credit score could mean you are approved for a loan, but at a higher interest rate and with a smaller house.
This means your budget will be more limited and you may not be able to buy as much home as you had hoped for. Additionally, lenders will also look at other factors, such as your debt-to-income ratio, employment history, and loan term, in order to determine your overall affordability.
What House Can I Afford on 70k a year?
As a borrower, you need to consider the interest rate, down payment, credit score, debt-to-income ratio, employment history, and loan term when determining how much house you can afford.
A higher credit score can often mean a lower interest rate, and a larger down payment can bring down the monthly payments.
All of these factors can have an effect on the amount of money you can borrow and the home you can afford.
Ultimately, understanding the impact of different factors can help borrowers make the best decisions when it comes to getting a mortgage.
Now that you know how much house you can afford, it’s time to start saving for a down payment.
The sooner you start saving, the sooner you’ll be able to move into your dream home. But you may have to wait if you are considering a mansion.
By taking into consideration this guide into account, you can make a more informed decision about the cost of a mortgage for your new home.
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Many Americans have income that fluctuates from week to week. When incomes are unsteady, any unexpected expense can leave you coming up short. If you don’t have a fully funded emergency fund, you may find yourself looking around for loans to bridge the gap and get you to your next paycheck. Payday loans are out there, but at a high cost to borrowers. Before taking out a payday loan you may want to first make a budget. You can work with a financial advisor who can help you make a long-term financial plan that you can budget your finances to meet.
Payday Loans: Short-Term Loans with a High Price
What are payday loans? Say you’re still 12 days away from your next paycheck but you need $400 for emergency car repairs. Without the $400 your car won’t run, you won’t make it to work, you’ll lose your job and possibly lose your housing too. High stakes.
If you go to a payday lender, they’ll ask you to write a future-dated check for an amount equal to $400 plus a financing fee. In exchange, you’ll get $400. You’ll generally have two weeks or until your next paycheck to pay that money back. Say the financing fee is $40. You’ve paid $40 to borrow $400 for two weeks.
If you pay back the money within the loan term, you’re out $40 but you’re not responsible for paying interest. But the thing is, many people can’t pay back their loans. When that happens, the money they borrowed is subject to double-digit, triple-digit or even quadruple-digit interest rates. It’s easy to see how a payday loan can lead to a debt spiral. That’s why payday loans are illegal in some places and their interest rates are regulated in others.
When your loan term ends, you can ask your payday loan lender to cash the check you wrote when you agreed to the loan. Or, you can roll that debt into a new debt, paying a new set of financing fees in the process. Rolling over debt is what leads to a debt spiral, but it’s often people’s only choice if they don’t have enough money in their account to cover the check they wrote.
Are Payday Loans a Good Idea?
Not all debt is created equal. An affordable mortgage on a home that’s rising in value is different from a private student loan with a high-interest rate that you’re struggling to pay off. With payday loans, you pay a lot of money for the privilege of taking out a small short-term loan. Payday loans can easily get out of control, leading borrowers deeper and deeper into debt.
And with their high-interest rates, payday loans put borrowers in the position of making interest-only payments, never able to chip away at the principal they borrowed or get out of debt for good.
Payday Loans and Your Credit
Payday loans don’t require a credit check. If you pay back your payday loan on time, that loan generally won’t show up on your credit reports with any of the three credit reporting agencies (Experian, TransUnion and Equifax). Paying back a payday loan within your loan term won’t boost your credit score or help you build credit.
But what about if you’re unable to repay your payday loan? Will that payday loan hurt your credit? It could. If your payday lender sells your debt to a collection agency, that debt collector could report your unpaid loan to the credit reporting agencies. It would then appear as a negative entry on your credit report and lower your credit score. Remember that it takes seven years for negative entries to cycle off your credit report.
Having a debt that goes to collections is not just a blow to your credit score. It can put you on the radar of some unsavory characters. In some cases, debt collectors may threaten to press charges. Because borrowers write a check when they take out a payday loan, debt collectors may try to press charges using laws designed to punish those who commit fraud by writing checks for accounts with non-sufficient funds (these are known as NSF checks).
However, future-dated checks written to payday lenders are generally exempt from these laws. Debt collectors may threaten to bring charges as a way to get people to pay up, even though judges generally would dismiss any such charges.
Alternatives to Payday Loans
If you’re having a liquidity crisis but you want to avoid payday lenders, there are alternatives to consider. You could borrow from friends or family. You could seek a small personal loan from a bank, credit union or online peer-to-peer lending site.
Many sites now offer instant or same-day loans that rival the speed of payday lenders, but with lower fees and lower interest rates. You could also ask for an extension from your creditors, or for an advance from your employers.
Even forms of lending we don’t generally love, like credit card cash advances, tend to have lower interest rates than payday loans do. In short, it’s usually a good idea to avoid payday loans if you can. Instead, consider working on a budget that can help you get to your next paycheck with some breathing room, and make sure you have a rainy day fund.
The Bottom Line
When considering a short-term loan, it’s important to not just look for low-interest rates. Between fees and insurance policies, lenders sometimes find ways to bump effective interest rates to triple-digit levels even if they cap their APRs. The risks of taking a payday loan bring home the importance of working hard to build up an emergency fund that you can draw on.
Tips for Retirement Planning
If you’re not already preparing for retirement then it’s a good idea to create a retirement plan and make sure you’re contributing to it regularly. If you’re overwhelmed or don’t know where to begin, a financial advisor can help you map it all out. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Not sure how much you need to save for retirement? Consider using our free retirement calculator to get the number you need so that you can start making the right progress.
Amelia Josephson
Amelia Josephson is a writer passionate about covering financial literacy topics. Her areas of expertise include retirement and home buying. Amelia’s work has appeared across the web, including on AOL, CBS News and The Simple Dollar. She holds degrees from Columbia and Oxford. Originally from Alaska, Amelia now calls Brooklyn home.
2021 VA Home Loan Limit: $0 down up to $5,000,000* (Subject to lender limits) /2 open VA loans at one time $548,250* (Call 888-573-4496 for details).
How to Apply for a VA Home Loan?
This is a quick look at how to apply for a VA home loan in Sierra County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Sierra County. If you have any questions, you can call us at VA HLC and we’ll help you get started.
Get your Certificate of Eligibility (COE)
Give us a call at (877) 432-5626 and we’ll get your COE for you.
Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
Get pre-approved, to get pre-approved for a loan, you’ll need:
Previous two years of W2s
Most recent 30 days paystubs or LES (active duty)
Most recent 60 days bank statements
Landlord and HR/Payroll Department contact info
Find a home
We can help you check whether the home is in one of the Sierra County flood zones
Get the necessary inspections
Termite inspection: required
Well or septic inspections needed, if applicable
Get the home appraised
We can help you find a VA-Certified appraiser in Sierra County and schedule the process
Construction loan note: Construction permit/appraisal info
Building permit
Elevation certificate
Lock in your interest rates
Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
Close the deal and get packing!
You’re ready to go.
What is the Median Home Price?
As of March 31st, 2021, the median home value for Sierra County is $258,015. In addition, the median household income for residents of the county is $52,148.
How much are the VA Appraisal Fees?
Single-Family: $600.
Individual Condo: $600.
Manufactured Homes: $600.
2-4 Unit Multi-Family: $850.
Appraisal Turnaround Times: 7 days.
Do I need Flood Insurance?
The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
In Sierra County, there aren’t many flood hazard areas other than areas around Davies creek north of the Stampede Reservoir.
How do I learn about Property Taxes?
Laura Marshall is the Sierra county tax assessor. Her office can be reached at 100 Courthouse Square, Room B1 P.O. Box 8 Downieville, California 95936. In addition, her office can also be reached by calling (530) 289-3283.
The state of California offers various incentive programs that expand statewide for new, growing, and relocating businesses. Two of these programs are California Competes Tax Credit which offers qualifying businesses tax credit and the New employment Credit program which offers a tax credit for taxpayers who hire full-time employees. These and many other programs help to further diversify the state’s economy.
What is the Population?
As of 2019, Sierra County’s population is 3,005 which includes 235 veterans Moreover, demographically speaking, 82% of the population is White, with 12% Hispanic, and 2% American Indian.
Most county residents are between 18 and 65 years old, with 16% under 18 years old and 32% older than 65.
In total, the county has about 1,241 households, with an average of two people per household.
What are the major cities?
The county has one city, and ten census-designated places the city of Downieville which serves as the county seat.
About Plumas County
Located in the Sierra Nevada mountains, the county was established in 1852, on land that was once home to the Washoe and the Miwok people. Archeological evidence shows that the area where the county is located had been inhabited for at least 5,000 years.
Eventually, in 1844, the first European Americans arrived in the area after making their way up the Truckee River. By 1847, there was increased migration to the area and in 1848 there was a boom in the local population after the discovery of gold in California.
Today, residents of the county tend to have jobs in the construction, public administration, and health care industries. As a result, the most common types of occupations in the county are in management, construction, and office administrative support.
When it comes to education, the county is home to the Sierra-Plumas Joint Unified School District. This is the only school district in the county and currently has about 411 students in its four educational institutions.
Furthermore, in addition to its education and workforce, the county is also home to various parks and recreational opportunities. Some of these parks are Alleghany Park, Downieville Visitor Center, Kentucky Mine Museum, and Park.
Veteran Information
The county is currently home to 292 veterans.
County Veteran Assistance Information
Sierra County Veteran’s Service Office – 270 County Hospital Road, Suite 206, Quincy, CA 95971.
Apply for a VA Home Loan
For more information about VA Home Loans and how to apply, click here.
If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.
VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.
VA Approved Condos
There are no VA-approved condos available in Sierra County. Although if you’re still interested in getting a condo through the approval process, call us at (877) 432-5626.
The economy is tanking; unemployment claims have topped 30 million. So what’s happening with the housing market?
To wrap our minds around this rapidly-changing housing market, let’s break this down into three sub-questions:
How strong was the housing market before the pandemic struck?
What’s happening now?
Where might it be going?
Here we go!
How strong was the pre-pandemic housing market?
Home values rose steadily after the Great Recession. From 2012–2020, home prices climbed 5.8% annually, according to the US Housing Market Health Check report from Thomvest Ventures. (All stats in this article come from that report unless otherwise indicated.)
Home values hit record-breaking new highs; the current national home price index is valued at 115% of the prior peak in March 2007.
Why did home values skyrocket in the last 8 years? There are many complex reasons, but three major factors include:
Historically low mortgage interest rates. This makes monthly payments more affordable.
Wage growth and consumer confidence arising from the 11-year bull market that just ended.
Limited housing supply, fueled by a decline in new construction.
Let’s talk about that last point, because it’s crucial in understanding how the pandemic will re-shape the market.
In 2005, prior to the Great Recession, home values were skyrocketing and people across the country were drinking the Kool-Aid that says “your personal residence is an investment” (it’s not) and “home values never fall” (they do).
The rapid climb in home values – and ensuing demand from buyers who wanted a slice of the action – led builders to flood the market with a surplus of speculative new construction. Remember 2005 and 2006? You couldn’t blink without seeing a brand-new suburban subdivision arise of out nowhere, seemingly overnight.
The spike in housing supply started fifteen years ago with speculation, and continued through 2008 and 2009, as foreclosures flooded the market.
From 2010 through 2020, that supply has been steadily declining. Okay, fine, “declining” is a polite way to describe the reality. In February 2020, the government-sponsored entity Freddie Mac, an institution that’s not prone to hyperbole, stated the situation bluntly: “The United States suffers from a severe housing shortage.” They called this a “major challenge” and estimated that 2.5 million new housing units would be needed to bridge the gap between supply and demand.
What triggered this shortage? The multitude of reasons could fill an entire article, but one major reason is that the cost-per-square-foot of new construction is prohibitively expensive in some areas, particularly high-cost-of-living cities, squeezing margins so tight that many builders have decided it’s not worthwhile to construct new homes in those areas. As a result, new home construction has trailed household growth every year since the Great Recession ended.
During the last decade, supply has drastically sunk, while demand has steadily risen.
Recipe for a price increase, anyone?
Real estate analysts track a metric called “months of supply.” It’s a measure of how many months it would take for the current inventory of homes on the market to sell, at the current pace of sales.
Historically, six months of supply equals moderate price growth. Fewer than six months of supply, though, correlates with skyrocketing home values. Many sellers receive multiple offers; comparable sales figures climb as buyers attempt to outbid each other. The average-days-on-market shrinks.
If you’ve searched for real estate in the past couple of years, you may have endured the frustration of spotting an amazing listing – only to discover that it went under contract within 24–48 hours of its initial listing.
It was a seller’s market. And that’s now a relic of the past.
What’s happening now?
Cue the curtain for 2020.
As you might expect, both supply and demand have fallen off a cliff. Sellers aren’t selling (‘cuz duh, who wants to move in the middle of social distancing?), and buyers aren’t buying (for the same reason).
But here’s the thing:
Early data suggests that demand may have fallen significantly more than supply. For the first time in a decade, the tables have turned.
To be clear, supply is tighter than ever. Available homes for sale declined 25 percent year-over-year. Nationwide, one million homes were listed for sale in April 2019 vs. 750,000 homes for sale in April 2020.
But the drop in buyers may exceed the drop in sellers.
As early as January 2020, home showings had already dropped by almost half – it dropped 49% – as compared to January 2019. (And that was January!)
Of course, showings are a crude, imprecise metric. Many home buyers – even starting as early as January – began opting to tour homes through Facetime or Skype, or browsing 3D virtual tours.
So let’s take a look at a different metric: the number of people casually browsing home-buying websites such as Zillow or Redfin. Would you expect this number to rise in this work-from-home era? Stay the same? Dip slightly?
The answer: None of the above. The volume of visits to home-buying sites like Zillow and Redfin careened off a cliff after the pandemic struck, dropping an astonishing 40 percent.
It’s not surprising, then, that by the first week of April, pending home sales fell 54 percent year-over-year.
Real estate commentators have differing views on the severity of the current demand decline, which is arguably harder to measure than supply. Housing supply can be tracked by metrics like new construction permits, renovation permits, and the volume of current market listings relative to the pace of sales (months of supply). Demand is estimated through stats like the pace of sales, the number of homes sold at or above asking price, weekly mortgage applications, and web traffic to search portals.
Many analysts view job growth and population growth as strong indicators of an uptick in demand. Job losses, therefore, predict a drop in demand. (Besides, banks don’t like to give mortgages to unemployed people.) And the U.S. is experiencing the worst levels of unemployment since the Great Depression.
For the first time in a decade, it looks like the supply-demand equation is flipped in the buyer’s favor.
“But wait! Are foreclosures going to spike again? Won’t those flood the market?”
It’s natural to expect the current recession to look like the last one. Since the Great Recession was characterized by a rash of foreclosures saturating the market, it’s natural to ask: “are we going to see a firehose of foreclosures flood the market again?”
The answer: probably not, for two reasons – (1) a decade of tighter lending criteria, resulting in highly-qualified borrowers with tinier debt loads, and (2) public opinion.
Let’s examine each one.
First, today’s borrowers are far more qualified than the borrowers of 2008.
Before the Great Recession, between 70–80 percent of mortgage originations were given to borrowers with less-than-excellent credit, defined as scores of 759 or less.
Today that metric has almost flipped. During Q4 2019, almost 66 percent of mortgage originations went to borrowers with excellent credit scores, defined as 760 or higher.
Before the Great Recession, homeowners could qualify for larger mortgages and easily borrow against their home equity through a cash-out refinance. As a result, in 2007, the ratio of mortgage-payment-to-income (the “front end ratio”) stood at 32 percent.
Today borrowers often qualify for smaller amounts (due to tightened lending restrictions) and are reluctant to borrow against home equity. At the start of 2020, the mortgage-to-income ratio was only 21 percent.
Let’s talk for a moment about borrowing against home equity.
In 2007, many borrowers were encouraged to cash-out refinance their home and spend this money on consumer purchases, such as discretionary home upgrades (e.g. building a backyard patio or installing a home theater system). They were advised that this would “boost their home value,” and they were not properly educated about the core financial literacy concepts that their personal home is not an investment and that relying on appreciation is speculation.
Unfortunately, those borrowers couldn’t liquidate their discretionary purchases when the recession struck. Their personal residence upgrades don’t provide a stream of passive income. They quickly found themselves underwater.
(That’s not the only reason many borrowers found themselves underwater in 2007, of course. Some borrowed to cover necessities, such as medical bills. Some found themselves blindsided by prolonged unemployment. Many were misled by lenders, who painted an unduly rosy picture and downplayed the risks of overborrowing. And many bought near or at the peak, such that when neighborhood home values declined, they found themselves holding a loan balance larger than their newly-depressed home worth.)
But the point remains – before the Great Recession, many people borrowed against their home equity for non-investment purposes.
Today that’s a distant memory. Cash-out refinance loans dropped 75 percent after the 2008 recession and remain at historically low levels today.
Foreclosures, bankruptcies and delinquencies are also at historic lows, as of the start of 2020. This January, only 3.5 percent of homeowners were late in paying their mortgage by 30 days or more, the lowest rate in 20 years for the month of January.
Finally, more people are mortgage-free today. In 2007, around 68 percent of homeowners carried a mortgage; by February 2020, that number had fallen to 62 percent.
Let’s review. In early 2020, at the start of the pandemic, the housing market was characterized by:
Highly qualified borrowers
Smaller loans
Healthier debt-to-income ratios
Fewer cash-out refinances or second loans
Low delinquency / more on-time payments
That’s why this isn’t going to be a repeat of 2008. The conditions are different. The housing market entered the 2020 recession from a position of strength.
We’ll briefly touch on the second reason why there won’t be a rash of foreclosures: public opinion and organizational will.
We’re experiencing a loose patchwork of protections intended to protect homeowners (particularly owner-occupants) from facing foreclosure.
Some banks are offering mortgage forbearance programs. Some states are instituting eviction and foreclosure moratoriums. Unemployment payments are fueled with $600 per week in additional benefits, and businesses with PPP funding must keep their workers on the payroll.
While these efforts are far from perfect, they’re – at the moment – adequate to prevent a huge volume of foreclosures.
So far, so good. Current data reflects no significant rise in delinquencies (late payments). If this number starts to spike in the summer or fall, there’s a reasonable chance that public opinion will pressure lawmakers and institutions to offer more protections to homeowners.
Where’s the housing market headed in the next 6-12 months?
Here’s what we’ve learned:
Home values are at historic highs. They’ve climbed steadily over the last decade.
Mortgage interest rates are at historic lows, continuing their pattern from the past decade.
Borrowers are well-qualified, and the likelihood of a 2008-style glut of foreclosures is slim. We’re unlikely to see a housing crash.
Housing supply has been tight for the last decade, but now the supply/demand balance appears to be tilting in favor of buyers.
Synthesis:
If you want to buy a property, the next 6–12 months might be an excellent time to become a buyer.
(And if you want to sell a property, wait. Hold for now.)
The pandemic may be ushering in a new era. Buyers might feel like it’s 2012 again: they can negotiate hard, offer significantly less than asking price, and not worry about getting outbid. They can ask the seller for repairs, concessions, and closing costs. Ahh, the good ol’ days.
Of course, there are people who disagree. Demand was high before the pandemic struck. As a result, some analysts have floated the idea that once mandatory social distancing restrictions loosen, buyers will unleash pent-up demand.
But if the lack of customers flooding back into restaurants, bowling alleys and tattoo parlors in Georgia is any indication, the housing analysts who dream of “unleashed pent-up demand” are … well, they’re dreaming.
When the economy tightens, people tend to become more cautious with their spending.
In the midst of a deep recession, with more than 30 million unemployment claims and a national mood of restraint, I find it unlikely that a huge volume of aspiring first-time homeowners will be eager to spend six-figure sums.
This means the brave buyers who pick up properties at this time may enjoy finding deals and negotiating from a position of strength.
Is it wise to buy in 2020?
In an unstable economy, many people are reluctant to make big-ticket purchases such as cars or homes.
And rightfully so.
Let’s turn this conversation to you. You might be wondering, “is it wise to buy a home in 2020?” – regardless of whether it’s a personal residence or an income property?
The answer: ONLY if you’re starting on a strong financial foundation.
First – If you don’t have an adequate emergency fund, focus first and foremost on building at least 3–6 months of rainy day reserves. If you think there’s a decent chance that you might get laid off or furloughed, or if you’re self-employed, extend this to 6–9 months of expenses.
Even if you’re a relentless optimizer, DO NOT invest this money. Keep this in a high-yield savings account (CIT Bank* is a favorite among our community members). Resist the temptation to throw it into the stock market, no matter how much you want to “buy on the dip.”
You can buy on the dip with a different bucket of funds. Don’t gamble with your emergency fund.
Second – If you’re carrying high-interest credit card debt, this is not the time to distract yourself with a home purchase. Crush your credit card debt first. Transfer your balances to a zero-interest card, and live on a strict budget that allows you to chip away at these balances before the teaser rate expires.
Third – If you anticipate any major big-ticket expenses (for example, if your car is 25 years old and the engine is sputtering, and it’s only a matter of time before replacing it transcends from “someday” to “urgent”), set aside enough cash to cover this cost.
Fourth – This is such a “duh” that I hope it goes without saying, but if you get a company 401k match, contribute at least enough to your retirement accounts to take full advantage of the match.
Fifth – Take stock of your dreams and goals. Everything is a trade-off. Don’t buy a home just because you think “this recession might be a great opportunity!” – that’s not a good enough reason if your heart isn’t authentically excited about it.
If you’re starting from a strong financial foundation AND this is your genuine goal, then 2020 might be the year that you, as an aspiring buyer, have been hoping to find.
(And if you’re selling a home … wait until 2021.)
Our real estate investing course, Your First Rental Property, will re-open for enrollment on Monday, November 30th! This premier 11-week online course will walk you, A to Z, through everything you need to know as a beginner rental property investor.
Read this page for all the details. Join the VIP Waitlist to hear when enrollment dates are announced first. Hope to see you in the fall!
—
Unless otherwise indicated, all research and data conducted by and attributed to the US Housing Market Health Check report, released by Thomvest Ventures and written by Nima Wedlake, Principal.
*Affiliate disclaimer: We’re a proud partner and affiliate. If you use this link, we may earn a small commission (at no additional cost to you) which we use to pay our hardworking team of five, cover operating costs like hosting and software, and invest in keeping this site running.
Check out other counties: Colorado VA Loan Information
How to Apply for a VA Home Loan in Hinsdale?
This is a quick look at how to apply for a VA home loan in Hinsdale county. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA mortgage loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Hinsdale County. If you have any questions, you can call us at VA HLC and we’ll help you get started.
Get your Certificate of Eligibility (COE)
Give us a call at (877) 432-5626 and we’ll get your COE for you.
Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
Get pre-approved, to get pre-approved for a loan, you’ll need:
Previous two years of W2s
Most recent 30 days paystubs or LES (active duty)
Most recent 60 days bank statements
Landlord and HR/Payroll Department contact info
Find a home
We can help you check whether the home is in one of the Hinsdale County flood zones
Get the necessary inspections
Termite inspection: required
Well or septic inspections needed, if applicable
Get the home appraised
We can help you find a VA-Certified appraiser in Hinsdale County and schedule the process
Construction loan note: Construction permit/appraisal info
Building permit
Elevation certificate
Lock in your interest rates
Pro tip: Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
Close the deal and get packing!
You’re ready to go.
As of April 31, 2021, the median home value for Hinsdale County is $341,490. In addition, the median household income for residents of the county is $56,339.
How much are the VA Appraisal Fees in Hinsdale?
Single-Family: $800.
Individual Condo: $825.
Manufactured Homes: $850.
2-4 Unit Multi-Family: $1000.
Appraisal Turnaround Times: 7 days.
Do I need Flood Insurance in Hinsdale?
The VA and lenders require properties to have flood insurance if they are in a Special Flood Hazard Area.
There is currently no digital data for Hinsdale County in the FEMA Flood Map Service Center. The only significant flood hazards are located around Lake Fork, which includes Lake City.
How do I learn about Property Taxes for Hinsdale?
Luke de la Parra is the current Hinsdale County Tax Assessor. His office can be reached at 317 Henson Street, PO Box 28, Lake City, Colorado 81235.
Colorado’s state offers Coloradoans the opportunity to be eligible for the Property Tax, Rent, Heat Credit Rebate (PTC Rebate). Some basic requirements are that applicants live in Colorado for at least one year, be 65 years or older, or the surviving spouse of 58 years of age, or a disabled person. Income and expenses will guide how much is given in the rebate.
What is the Population in Hinsdale?
The county’s population of 820 is 88% White, 5.7% Hispanic, and 3% Mixed Race.
Most county residents are between 18 and 65 years old, with 15% under 18 years old and 31% older than 65.
In total, the county has about 377 households, with an average of 2.2 people per household.
What are the major cities in Hinsdale?
The County has one town, the town of Lake City, which also serves as the county seat.
About Hinsdale County
Most of Hinsdale County is made up of parts of several different national forests and the Weminuche Wilderness Area. The national forests that makeup Hinsdale are the Gunnison National Forest, the Rio Grande National Forest, the San Juan National Forest, and the Uncompahgre National Forest.
Hinsdale County is also the location of several hiking trails where visitors can enjoy the sites of nature that Colorado has to offer. The Continental Divide Trail is a 3,100-mile-long trail that runs between Mexico and Canada. In Hinsdale, the Continental Divide Trail passes through many of the highest regions of the San Juan Mountains.
The County’s economy depends on its largest employment industries: Construction, Public Administration, and Accommodation. As a result, the most common types of jobs are in the Construction, Management, and Office Administration occupations.
Furthermore, when it comes to education, the County’s small size only allows for one school district currently in existence. The one school district in the County is the Hinsdale County School District No. RE-1, which administers one school with about eighty students in total. Thankfully neighboring counties have more educational opportunities for residents.
Veteran Information
The county is currently home to 68 veterans.
County Veteran Assistance Information
VA Home Loan Information
If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.
VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.
VA Approved Condos
Currently, there are no VA-approved condos available in Hinsdale County. However, if you’re interested in getting a condo through the condo approval process, call us at (877) 432-5626. Our team will assist you through the process.