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Apache is functioning normally

Apache is functioning normally

From the towering peaks of its mountain ranges to the hushed elegance of its river valleys, Idaho’s geographical diversity is a testament to the timeless artistry of nature.

Stepping into the vast expanse of Idaho, you’ll be struck by a landscape that oscillates between serene beauty and dramatic grandeur. Whether it’s the lively urban appeal of Boise, the historic charm of Lewiston or the tranquil allure of Meridian, each location in Idaho paints a different hue on the state’s canvas, collectively creating a picture of life that is as varied as it is captivating.

Listed below are seven of the best places to live in Idaho for everyone from young professionals with families to active retirees and everyone in between. Find your favorite spot, schedule an apartment tour and settle down in your new happy place.

  • Population: 240,713
  • Median household income: $98,300
  • Average commute time: 18.4 minutes
  • Walk score: 38
  • Studio average rent: $1,437
  • One-bedroom average rent: $1,450
  • Two-bedroom average rent: $1,768

At first blush, Boise might appear to just be the state’s capital city, another spot on the map where the urban grid has staked its claim. But spend a little time here, wander its streets, listen to its stories and you quickly realize this diverse community is anything but ordinary.

Start in downtown Boise, a place that seems to exist in two eras simultaneously. It’s as though time got wonderfully tangled here, old red-brick buildings rubbing shoulders with sleek, modern edifices, each with their own story to tell. This isn’t simply a downtown—it’s an ongoing conversation between past and present.

And oh, the great outdoors! In Boise, nature is not an abstract concept but a close friend. The Ridge to Rivers trail system stitches the city to the vast expanses of Idaho’s wilderness like a beautifully embroidered seam. On these trails and nearby national parks, city slickers become explorers, trading sidewalks for dirt paths, the hum of traffic for the rustle of leaves.

Then there’s Boise State University, a hub of youth and innovation, its energy spilling over into the college town. You can almost feel the hum of thoughts and ideas, as though the city itself is learning, growing and evolving right along with its scholars.

The beauty of Boise isn’t just in its landscapes or its architecture, but in its spirit. This is a city comfortable in its own skin, unpretentious and genuine. It has its quirks and oddities, but rather than smoothing them out, Boise not only embraces them but celebrates them. This city doesn’t try to be anything other than what it is, and what it is, quite simply, is a great place to call home.

Three great apartment complexes in Boise:

  • Population: 58,242
  • Median household income: $60,984
  • Walk score: 35
  • Studio average rent: $925
  • One-bedroom average rent: $1,720
  • Two-bedroom average rent: $1,995

Coeur d’Alene is defined by its proximity to nature’s grandeur, an undeniably charming downtown and a welcoming community that welcomes folks from all walks of life. Nestled in the northern panhandle of Idaho, with its glittering lake and towering pine forests, it’s a slice of heaven, lifted straight from a storybook and gently settled in Gem City.

The star of the show here is undoubtedly the majestic Lake Coeur d’Alene, spanning 25 miles in length, framed by pine-clad mountains and blessed with a gorgeous swimming beach. Its turquoise waters reflect the ever-changing sky and offer not just spectacular views but a year-round playground for boating, fishing and swimming in summer; ice skating and bald eagle watching in winter. Watch the sunset over the water paint the sky a fiery red, life in Coeur d’Alene really is nothing short of a religious experience.

You can’t talk about Coeur d’Alene without mentioning its charming downtown, steeped in a kind of authentic Americana, where it’s easy to meander through a jumble of local boutiques, art galleries and historic buildings.

But a place is not defined merely by its geography or its buildings. It’s the people who breathe life into the locale. The community in Coeur d’Alene is warm and inclusive, making newcomers feel at home in no time. The small city also hosts myriad events, from art walks to the famed Ironman competition, fostering a sense of belonging that’s often lost in larger cities.

Three great apartment complexes in Coeur d’Alene:

  • Population: 69,450
  • Median household income: $57,412
  • Walk score: 42
  • Studio average rent: $617
  • One-bedroom average rent: $1,040
  • Two-bedroom average rent: $1,675

Idaho Falls embodies the quintessence of small-town America, tucked into an embrace of picturesque landscapes. The city emanates tranquility and serenity. It’s an evolving canvas adorned by the mighty Snake River’s waters, the resilient spirit of its people and the vibrant strokes of its culture.

The city’s heart beats in sync with the Snake River, which etches a serpentine course through its center. The river offers more than a namesake; it contributes to the city’s persona. The city’s waterfalls, cascading from snake river canyon right through the city’s heart, present more than scenic beauty; they are the city’s pulse, their incessant flow echoing the community’s resolve.

Surrounded by the sublime vistas of Idaho, the city serves as a gateway to an extraordinary natural playground, making it an easy choice for one of the best places to live in Idaho. The jagged peaks and spurting geysers at Yellowstone National Park, the untamed wilderness of Grand Teton and the surreal landscapes of Craters of the Moon lie just a short journey away.

However, Idaho Falls isn’t just an Eden for nature lovers, it’s also a burgeoning arts hub. The city’s downtown harmonizes the old with the new, historic buildings standing shoulder-to-shoulder with contemporary structures. From the lush expanse of the Idaho Falls Greenbelt to the myriad artifacts at the Museum of Idaho, the city center is always abuzz with creativity and life.

At its core, Idaho Falls is a tightly-knit community. The residents, imbued with a sense of hardiness and a pioneering spirit, are the city’s greatest strength. The town radiates a unique sense of camaraderie and friendliness. With high-quality public and private schools, lower cost of living and a family-friendly environment, the city provides a splendid backdrop for nurturing a family.

Three great apartment complexes in Idaho Falls:

  • Population: 34,896
  • Median household income: $60,581
  • Walk score: 49
  • Studio average rent: N/A
  • One-bedroom average rent: N/A
  • Two-bedroom average rent: N/A

Lewiston is an unassuming gem nestled in the state’s north central region. It is as if the tranquil rhythm of the Snake and Clearwater rivers has seeped into the very spirit of the former resort town. Lewiston, it seems, has a way of whispering sweetly to those who have the patience to listen. The lush landscape, with its wide-open skies and placid river banks, embodies a distinct and vibrant serenity that is difficult to find elsewhere. This landscape is not just a background but an active participant in the daily life of Lewiston’s residents.

But Lewiston’s charm isn’t confined to its natural beauty. It is found in the way the town retains a distinctive blend of the past and present. Historic downtown Lewiston, with its weathered brick buildings and quaint streets, tells a tale of a storied past. Yet, a blossoming culture imbues the city with fresh energy, where local crafts, eclectic eateries and thriving farmers’ markets create a harmonious blend of the old and the new.

Educational institutions such as Lewis-Clark State College contribute to Lewiston’s vibrancy, offering youthful energy and intellectual stimulation, while the city’s active outdoor recreation culture, ranging from fishing to hiking to boating and more, keeps the community grounded, healthy and engaged.

Despite the common notion of Idaho as a remote outpost for rural living, Lewiston is surprisingly accessible. The Port of Lewiston, Idaho’s only seaport, offers a lifeline to the local economy and a portal to the wider world. In this way, Lewiston seems to exist at a crossroads between wilderness and civilization, the traditional and the modern, the local and the global.

Three great apartment complexes in Lewiston:

  • Population: 129,736
  • Median household income: $89,857
  • Walk score: 26
  • Studio average rent: $1,760
  • One-bedroom average rent: $1,553
  • Two-bedroom average rent: $1,830

At the intersection of pastoral tranquility and contemporary growth lies Meridian, Idaho’s second-largest city. Nestled between bustling Boise and the vast expanses of Idaho’s rural landscapes, Meridian possesses a unique, harmonious balance that resonates deeply with those fortunate enough to call it home, making it a natural pick for the best places to live in Idaho.

The city thrives as a close-knit community where neighbors not only know each other’s names but also share in each other’s joys and sorrows. Despite the city’s impressive growth and ample job opportunities—it’s one of the fastest-growing cities in the region—the residents have managed to retain a sense of camaraderie and mutual support that is a testament to their collective spirit.

On the educational front, Meridian is home to outstanding public schools, a well-regarded private school system and a focus on lifelong learning. This commitment to education echoes throughout the community, nurturing not just academics but also fostering an environment of curiosity and enlightenment.

Recreational opportunities abound in Meridian. From the tranquil respite offered by the city’s many parks to the adventurous hiking and biking trails, Meridian encourages an active, outdoor lifestyle that keeps its residents connected to the splendid nature that surrounds them.

Meridian balances the vibrancy of a thriving city with the intimacy of small-town living. Here, progress and tradition coexist, each respecting the other, each shaping the city’s unique character. The city does not boast or bluster; it invites. It invites residents to build lives of contentment, enrichment and joy amidst its tree-lined avenues and beyond. It is, in its quiet, steadfast way, a testament to the human capacity for creating spaces that celebrate both the simplicity and complexity of life.

Three great apartment complexes in Meridian:

  • Population: 117,082
  • Median household income: $57,552
  • Walk score: 29
  • Studio average rent: $775
  • One-bedroom average rent: $1,342
  • Two-bedroom average rent: $1,525

Nampa feels as if it were crafted from the fabric of a bygone era, while firmly rooted in the present. This robust blend of tradition and progress makes Nampa not just a city, but a living testament to the evolving narrative of the American West.

Nampa’s physical beauty is an undeniable draw. Nestled in the heart of the Treasure Valley, the city is a green oasis surrounded by the grandeur of Idaho’s diverse landscapes. From the lush farmland that flanks the city limits to the distant mountains that frame the horizon, Nampa’s natural setting is a captivating panorama that continually enchants its residents.

The city is a bustling hub of activity, a diverse and bustling place offering tons of recreational opportunities and outdoor activities that tap into the spirit of Idaho’s outdoor culture. From Lake Lowell’s tranquility to the invigorating outdoor pursuits available along the city’s many trails and city parks, Nampa encourages an active, healthy lifestyle for all.

Education and cultural enrichment form crucial components of Nampa’s appeal. The city’s public and private schools both foster an environment of learning and growth, while institutions like Northwest Nazarene University add a rich layer of intellectual vibrancy to the college town thanks to the thriving population of university students. Nampa’s cultural scene, too, is alive and thriving, with the Ford Idaho Center hosting concerts, rodeos and sporting events, ensuring the city is always offering up something fun for its residents.

Nampa stands as a beacon of balance. It merges the comfort of a small town with the opportunities of a growing city. It honors its heritage while eagerly reaching for its future. It celebrates its natural beauty while creating vibrant human-made spaces. It is a city that accommodates and nurtures the many facets of human life, making it a truly appealing place to call home.

Three great apartment complexes in Nampa:

  • Population: 50,323
  • Median household income: $65,592
  • Walk score: 23
  • Studio average rent: $1,275
  • One-bedroom average rent: $1,395
  • Two-bedroom average rent: $1,600

Post Falls sits as a jewel of the Northwest, nestled between the rugged majesty of the Rockies and the tranquil waters of the Spokane River. This city, once a quiet milling town, has grown to become a stunning community that marries the tranquility of a small town atmosphere with the dynamic spirit of a major city, quickly on the rise. Its appeal is multifaceted, drawn from the natural beauty, cultural richness and warmth of its people.

The landscape within the city limits is nothing short of mesmerizing. With waterfalls, rivers and mountains as its neighbors, Post Falls offers a living experience that is like nothing else. The city is a haven for outdoor recreation enthusiasts, with hiking, mountain biking, fishing and boating opportunities that not only provide fun recreation activities but also nurture a profound connection with the environment.

Despite its relatively small size, Post Falls boasts of a diverse range of attractions. The city’s retail offerings range from unique local boutiques to larger shopping centers, catering to a variety of needs and tastes. A fastly growing food scene adds another layer of appeal, with an array of culinary creations that tantalize the palate.

In essence, Post Falls represents the harmonious coexistence of the timeless and the contemporary, the quiet and the dynamic, the natural and the human-made. It’s a city that values its past, cherishes its present and embraces its future, providing an enriching and welcoming environment that makes it a wonderful place in Idaho to call home.

Three great apartment complexes in Post Falls:

Find the best place to live in Idaho

Whether you seek the urban charm of Boise or the rugged beauty of Post Falls, Idaho offers a near-unending selection of stunning possibilities, each holding a unique promise of what it means to call this magnificent state home. The best places to live in Idaho are not just locations, but distinct chapters in the state’s unfolding story, each adding its own unique color to the mosaic of life in the Gem State.

In every corner of the state, you will find that you are always just a stone’s throw from the living, breathing narratives in Idaho’s ever-evolving saga. They are distinct chapters in an enduring tale that grows richer with each new settler and generation. The best places to live in Idaho are not just geographical points on a map, but intricate layers in the richly textured quilt of human experience that comprises this magnificent state.

Source: rent.com

Apache is functioning normally

Apache is functioning normally

You may think that because you have bad credit, buying a house is out of reach for you. But, there are plenty of trustworthy mortgage lenders with good offers willing to loan to people with poor credit.

So, you might just have to start packing sooner than you thought.

Best Mortgage Lenders for People with Bad Credit

LendingTree

For flexible mortgage options with less stringent credit score requirements, check out LendingTree. Instead of serving as a direct lender, LendingTree aggregates multiple mortgage offers after you fill out a single application.

The process is completed entirely online, and you could potentially see up to five different offers from various mortgage lenders. From there, you can compare the interest rates and terms to see if any fit your needs.

LendingTree also offers mortgages from lenders that provide a broad range of home loan types.

In addition to conventional loans, you can also access loans from the Federal Housing Administration (FHA loans) and VA loans. These come with lower credit requirements and lower down payment requirements.

With an FHA loan, for example, you could qualify with a minimum credit score of just 580 and a 3.5% minimum down payment on your new home’s purchase price. Even if your credit score is lower than 580, an FHA loan is still possible if you increase your down payment to 10%.

For multiple home loan options with a quick and easy application process, be sure to consider applying through LendingTree.

Read our full review of LendingTree

CitiMortgage

CitiMortgage has a range of home loan products for people with various credit scores. A unique feature of CitiMortgage is that they consider nontraditional credit situations, such as paying rent and child support on time.

They only approve loans for houses in good condition. This means all construction must be finished, and the roof and windows must be intact.

So, no fixer-uppers, HGTV fans. In addition, there is a $100 application fee and an origination fee, but this is not unusual.

If you can’t put much of a down payment down, CitiMortgage offers what they call a HomeRun loan program. This program allows you to only pay 3% down. Plus, they don’t even require you to pay for private mortgage insurance.

So, a $200,000 house would only require you to put $6,000 down. Applicants must make 80% or less than the neighborhood’s average income. However, it’s available to anyone in low-income areas.

CitiMortgage also offers a conventional loan geared toward those with low income and low credit scores. It comes with no mortgage insurance requirements and highly competitive interest rates. However, origination fees are typically a bit higher.

Read our full review of CitiMortgage

Rocket Mortgage

For those seeking a user-friendly online experience alongside a variety of loan options, Rocket Mortgage is worth considering. As one of the pioneers in the digital mortgage industry, their process is streamlined, allowing you to get pre-qualified in mere minutes.

They offer an array of loan types including Conventional, FHA, VA, and Jumbo loans. Terms range from 8 to 30 years, which includes popular 15-year and 30-year terms.

Those with a credit score of 620 will find themselves comfortably eligible, but Rocket Mortgage also caters to those with scores as low as 580, as long as other criteria are met.

One of the highlights of Rocket Mortgage is their flexibility in property types. Whether you’re looking to buy or refinance a single-family home, a second home, an investment property, or even a condo, they’ve got you covered.

Their user-centric approach is further exemplified by their dedicated Rocket Mortgage app, ensuring easy access to your account.

A potential downside is the hard inquiry they conduct to offer a personalized interest rate, which could have a minor impact on your credit score.

Additionally, they do not provide USDA loans, HELOCs, construction loans, or mortgages for mobile homes. For those eyeing jumbo loans, it’s worth noting that Rocket Mortgage does not manage these accounts post-closure.

However, if a swift online process coupled with diverse loan options appeals to you, Rocket Mortgage stands out as an excellent choice.

Read our full review of Rocket Mortgage

Navy Federal Credit Union

Serving military members and their families, Navy Federal Credit Union makes first-time home buyers their number one priority.

They help would-be homeowners by offering a wide variety of loans. Some of their loans include:

  • Adjustable-rate mortgages
  • VA Loans
  • FHA Loans
  • Interest-only loans
  • 30-year and 15-year fixed-rate loans

Their standout loan is the HomeBuyers Choice. It’s a fixed interest rate 15 or 30-year loan with 100% financing and no mortgage insurance.

There is a 1.75% funding fee that you can get waived if you’re willing to pay a higher interest rate. This is a great option at closing if you need to save some cash.

Like CitiMortgage, Navy Federal evaluates a range of payments for borrowers with poor credit scores, such as rent, cell phone, and utility payments. There is no minimum credit score requirement for VA loans, but it’s 620 for others.

The only real downside is that some borrowers report that it takes longer to close on houses than other mortgage lenders.

This is not incompetency by any means. On the contrary, with such popular mortgage options, they likely have more volume to get through than other lenders.

Read our full review of Navy Federal Credit Union

Best Refinance Lender for Borrowers with Bad Credit

For borrowers with bad credit scores who are considering refinancing their mortgages, we recommend Connexus.

Connexus

By no means just a refinancing company, Connexus is an all-around great credit union with nothing but positive feedback online. With a super strong and user-intuitive web presence, they’re easily one of the trailblazers for next-generation banking.

Connexus offers great mortgage interest rates for anyone, but they do something a little special regarding refinancing. Any homeowner can go to their website and fill out an online form detailing what they currently have.

After only two business days, a loan officer from Connexus Credit Union will call you to discuss every option available. They call this their “No-hassle mortgage comparison.”

If you’re worried about low credit scores, Connexus also considers alternative methods to determine your ability to repay a loan. This includes utility bills, rent, monthly cell phone payments, and child support.

Read our full review of Connexus

Best Mortgage Lenders for Customer Support

Decent customer support seems to be what companies struggle with the most these days. People want 24/7 support, but they don’t want to speak with robots. Two companies that have figured out how to meet customer expectations are HomeBridge and Network Capital.

HomeBridge

At HomeBridge, you can initiate your mortgage application online, where they have various home loan programs to choose from.

You can also learn about the pros and cons of each loan and refinance option through their extensive library of educational content.

Where they really receive their accolades, however, is through their customer support. It’s not something they really boast about, but they are constantly tweaking the process of getting a loan or refinance more user-friendly.

Here’s how.

Any negative feedback a customer provides is addressed as soon as possible by HomeBridge so that every customer can walk away happy. Look for this kind of dedication elsewhere, and you’re going to have a tough time.

Most companies who perform customer feedback questionnaires analyze the results and ask themselves how to resolve the problem moving forward.

HomeBridge not only resolves the problem moving forward but will actually go back to the initial complaint and address that specific issue, too.

Read our full review of HomeBridge

Network Capital

Be advised: Network Capital does have its faults. For example, it only does business in the following states:

  • Alabama
  • Arkansas
  • Arizona
  • California
  • Colorado
  • Delaware
  • Florida
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maryland
  • Minnesota
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Tennessee
  • Texas
  • Virginia
  • Washington
  • Washington, D.C.
  • Wisconsin

It also doesn’t have an online prequalification tool. So if you’re interested, you’ve got to go through the whole process to see if this mortgage lender is even interested in working with you.

Even with these complaints, we still love Network Capital. Why? They’re doing many things right.

For starters, they don’t charge any lender fees.

Secondly, they offer support to you while you’re applying and want you to call and ask questions. Even if it’s just for a small question that will take them three seconds to answer, they want you to call.

Tri Nguyen, the founder, believes that no matter how digital we become, everyone wants to hear a human’s voice during such a significant life decision. So, they are there to answer questions and help you gather documentation.

And they do this all before they even know if they want your business. But don’t worry: the minimum credit score they require is only 600.

Read our full review of Network Capital

Best All-Around Mortgage Lenders for Borrowers with Bad Credit

Taking into account the entire user experience, there are two bad credit mortgage lenders that stand out:

New American Funding

New American Funding is just about everywhere and doing everything right. They have 150 branch locations across the U.S. (except New York and Hawaii) and have a solid web presence.

The loan application can be completed online. You can also get rate quotes, and you can track your loan status remotely.

New American Funding works with down payment assistance programs in numerous states. They also have a vast array of loan products.

Here’s a list of everything they offer:

  • Adjustable-rate loans (5/1, 7/1, 10/1)
  • Bank Statement Loans
  • Conventional and FHA Loans for Renovation
  • Fixed-rate Loans of 10, 15, 20, and 30 years
  • FHA loans, VA loans, and USDA loans
  • Loan refinancing
  • Manufactured home loans

Unlike other mortgage lenders, they still do everything old-school — they evaluate each application individually with (gasp!) a real live human. No algorithms here.

In other words, they’ll look at you holistically despite your bad credit score because they understand that cultures handle money differently.

For example, Latinos tend to pull money from family members when making a large purchase and prefer cash to credit cards.

With a no-debt mindset, of course, you may have a low credit score, but that doesn’t mean you don’t know how to handle money.

A person’s ability to be a responsible homeowner goes beyond what the three major credit bureaus consider. And New American understands that.

Read our full review of New American Funding

Carrington Mortgage Services

Carrington Mortgage Services seems to bend over backward to help people with poor credit become homeowners. They’re even willing to work with you if your FICO score is as low as 550.

Carrington also requires all homeowners to go through a mortgage education program before purchasing, which some people consider a negative.

They do this to make sure all borrowers understand everything that revolves around a home loan so that they’ll be more likely to make better financial decisions in the future.

Carrington considers the typical factors that play into your credit score, like payment history and money owed. However, they also consider job history, job stability, gross income, and down payment size for approval.

Need assistance with a down payment?

Depending on where you live, Carrington may be able to help you. However, the program isn’t available nationwide because some states would require Carrington to sell the servicing rights to the associated loans if they helped with the down payment.

If they did this, it would impact their ability to work with low-income, bad credit borrowers.

It should come as no surprise that Carrington has a solid digital infrastructure, and offers competitive refinance rates. Their customer service is also among the best of the best.

The only cons we can come up with for this company is that it’s not in every state (Alaska, Massachusetts, North Dakota, and Vermont.) Additionally, Carrington can’t offer down payment assistance nationwide.

Bottom line: Carrington Mortgage Services is awesome.

Read our full review of Carrington Mortgage Services

Tips for Applying for a Home Loan With Bad Credit

Many of the mortgage lenders listed in this article are ideal for borrowers with high credit scores. But if you have a lower credit score, know that it’s still possible for you to qualify for a home loan.

Many bad credit mortgage lenders are willing to work with borrowers that have lower credit scores. Here are five steps you can take to get started.

1. Take steps to begin improving your credit score

The first place to start is to request a free credit report from each of the credit bureaus. Your credit reports will give you an idea of where you are currently and the steps you can take to improve your credit score.

Make sure you check your credit report for any inaccuracies or derogatory marks. You can request to have any incorrect information removed. If you have any negative marks on your credit report, you can write your lender a goodwill letter and ask to have them removed as well.

The best way to improve your credit score is by paying down credit card debt and making monthly payments on time. Just taking these two action steps alone should help your credit score, since they account for most of your FICO score.

2. Be realistic about what you can afford

You can still apply for a mortgage with a bad credit score. But be realistic about what you can afford with your current budget.

With a low credit score, most lenders will see you as more of a risk of defaulting on your mortgage, so you will have a higher interest rate. However, if you only request the maximum loan amount you need, you’ll have a better chance of getting approved for your loan.

3. Check out alternative loans

Borrowers with imperfect credit may qualify for a bad credit mortgage loan with alternative homebuyer programs. For example, borrowers can get an FHA loan with credit scores as low as 580. The required minimum down payment is 3.5%.

Veterans with less than perfect credit should look into getting a VA loan. These mortgage loans don’t have a minimum down payment requirement and are easier to qualify for than conventional mortgages.

Finally, USDA loans are designed for low-income homebuyers in rural areas. They typically require a credit score of at least 640.

See also: 14 First-Time Homebuyer Grants and Programs for 2023

4. Save up for a sizable down payment

If you want to increase your odds of approval, then it’s a good idea to save up for a sizable down payment. At least 20% is ideal for convention loans. It will also save you from having to take out private mortgage insurance (PMI).

A down payment won’t compensate for a bad credit score. However, it could help you make your case with some lenders.

5. Consider applying with a qualified cosigner

And finally, you can look into applying with a qualified cosigner. When you apply with a cosigner, that person agrees to take legal responsibility and repay the loan if you can’t. And since that person’s credit score is tied to the loan as well, it increases your odds of approval.

However, cosigning a loan is a risky move. So, you only want to ask someone to do this if you’re confident you can make your monthly mortgage payments. Otherwise, you’re putting that individual’s financial future at risk.

How to Compare Lenders for Bad Credit

Finding the best mortgage lender to fit your financial situation requires careful consideration. You need to be sure about what you need from any bad credit home loan. Along with mortgage rates and loan terms, here are the other major factors to consider when comparing mortgage lenders:

Minimum Credit Score Requirements

Minimum credit scores will vary depending on the mortgage lender and the specific loan product. There are many lenders who will work with a low credit score, including all the lenders we’ve analyzed above. 

Debt-to-Income Requirements

In most cases, the maximum debt-to-income ratio that lenders will work with is around 43%. However, with so many online mortgage lenders today, you will still find mortgage companies that have higher than normal debt-to-income limits.

Make sure you’re clear on where your debt-to-income ratio stands. Then, take some time to see if you can improve it before applying for a loan formally.

Down Payment Requirements

The reality is, if you have a bad credit score, you’ll likely be required to save a larger minimum down payment. Generally speaking, those with a lower credit score who still qualify for lending will need a down payment of 10%.

However, regardless of what your credit history looks like, it’s useful to shop around. This is because most mortgage lenders will consider a range of factors when evaluating your loan application.

Home Buyer Assistance Programs

When considering different mortgage products, make sure to look for any home buyer assistance programs. Many companies have their own programs with benefits. They can range from a lower minimum credit score requirement, lower down payment percentages, or credits toward closing costs.

Fees

The most common mortgage fees include origination fees, application fees, underwriting fees, processing fees, and administrative fees. Some lenders don’t charge these fees, but don’t forget to check what they do charge.

Frequently Asked Questions

What is considered ‘bad credit’ for a mortgage?

According toFICO, which is the biggest credit scoring company, anything below 580 is considered poor credit. Here’s a quick run through of the entire credit scoring range:

  • 300 – 579 – Poor credit
  • 580 – 669 – Fair credit
  • 670 – 739 – Good credit
  • 740 – 799 – Very good credit
  • 800 – 850 – Exceptional credit

However, the definition of ‘bad credit’ can vary between lenders, as they won’t all stick rigidly to FICO scoring. So keep this in mind as you look for loan products to apply for, and make use of online loan quotes that don’t run hard credit checks.

Can I get approved for a mortgage with bad credit?

Absolutely, it is possible to qualify for a mortgage even if you’ve got a low credit score. Your credit score is always an important factor for mortgage lenders. However, alternative credit data such as stable employment and saving a large down payment can sometimes help offset a bad credit score.

Some mortgage products, like FHA loans, come with lower minimum credit score requirements than conventional loans. However, if possible, you should always try to build your credit score before taking out a loan. This can help you significantly improve your mortgage options. It can land you a better interest rate and lower monthly payment, potentially saving you thousands of dollars.

What type of mortgage can I qualify for with bad credit?

There are several types of mortgage products available for those with poor credit:

FHA loans

Government backed loan programs, such as Federal Housing Administration (FHA) loans, are among the most popular options for bad credit borrowers. The majority of people will need a minimum credit score of 580 to qualify, as well as a minimum down payment of 3.5%. However, if you can make a 10% down payment, you could be eligible for an FHA mortgage with a credit score as low as 500.

VA loans

While VA loans don’t have any formal credit score requirement, the reality is that the ideal credit minimum varies between lenders. If you do go for a VA loan, keep in mind that many lenders prefer to lend to those with a higher credit score. However, others will be more sympathetic to lower credit scores.

USDA loans

Another of the popular government backed loans, USDA loans typically require a credit score of at least 640. However, that doesn’t mean it’s impossible to qualify for a USDA-backed loan with a low credit score. It just means your application will have to be processed manually, and may require consideration of alternative credit data.

If your score is high enough, you can use a USDA loan to purchase a home with no down payment.

What is the lowest credit score I can get a mortgage with?

The lowest credit score you can get a mortgage with varies depending on the type of loan and the individual lender’s requirements. Conventional loans usually have a minimum credit score of 620, and for jumbo loans it’s 680. However, FHA, VA, and USDA loans allow lower minimum credit scores and might make more sense for you if your credit is poor.

For lenders who offer bad credit mortgages, a credit score of 500 is generally the lowest that lenders will work with. Your interest rate will be high and you’re likely to need a large down payment to get a mortgage with a score this low.

Source: crediful.com

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Apache is functioning normally

Shopping for a mortgage has never been easier, thanks to the array of online options. Brick and mortar lenders may still be a viable option, but you may find that an online lender has even more to offer.

Furthermore, exploring online mortgage lenders allows you to compare mortgage rates. You can also receive customized mortgage loan offers in your inbox in minutes. Even better, you’ll have direct access to a loan officer in case you have questions.

Who are the top online mortgage lenders for 2023?

If you’re in the market for a new home and ready to start your search for online lenders, here are some reputable options to choose from.

Best Online Mortgage Lenders of 2023

loanDepot

loanDepot is an online lender, but don’t think that means they are lacking in customer service. They provide over 150 loan stores across the country for customers that prefer in-person service.

The lender is a suitable option for anyone who wants to take out a mortgage with the assistance of a loan officer.

loanDepot offers various mortgage products, including fixed and adjustable-rate mortgages. You can also apply for jumbo loans, VA loans, and FHA loans. You’ll need a minimum credit score of 620 to qualify for a mortgage.

loanDepot ranks high in customer satisfaction and most buyers seem to have a good experience working with them. However, they do charge higher fees than other mortgage lenders.

Quicken Loans

This online lender takes the hassle out of securing a mortgage by letting you complete the entire process online.

You’ll need to provide a few key details about your finances using this form to get started. A Home Loan Expert will review your application and contact you to discuss loan options.

And no need to worry about getting overwhelmed. Quicken Loans offers online tools to help you understand loan options and the home buying process. Plus, the customer service is excellent; a live representative is always standing by.

You can also upload all your documents and monitor the status of your application directly from the portal. This means you never have to pick up the phone if you don’t want to.

And when you’re ready to close, you have the option to schedule the closing when it’s convenient for you.

Better.com

If you’re looking for an online mortgage lender, you should check out Better.com. The company uses technology to simplify the lending process for its customers. Better.com promises a fast and transparent mortgage experience.

The lender is willing to work with all different kinds of buyers, including individuals who are self-employed or have unique job situations.

At least a third of its mortgages are taken out by first-time homebuyers, and over 70% of all buyers pay a down payment that is less than 20%.

Better.com mortgages don’t come with any hidden fees; there are no application or origination fees. To get started, you can visit the company’s website and get pre-approved in just a few minutes.

Rocket Mortgage by Quicken Loans

Rocket Mortgage is a division of Quicken Loans. Their key competitive advantage is the asset importer tool, which takes the guesswork out of determining whether you’re approved.

Instead of uploading documents, importing them from the information provider guarantees the accuracy of the numbers and allows you to receive loan offers using real-time interest rates in a matter of minutes.

And once you’ve selected a loan that works for you or created a custom option, you’ll be able to close in record time. Plus, Rocket Mortgage customer service experts are standing by to assist with questions you may have every step of the way.

NBKC Bank

NBKC Bank is not as widely known as many of the other lenders on this list. But that doesn’t mean you should rule them out as a potential mortgage lender.

There are several features that make the Kansas City-based lender a great option. The bank promises fast home closings and provides exceptional customer service.

NBKC Bank focuses mostly on online mortgages and offers its customers competitive interest rates. It does have several brick-and-mortar locations but focuses mostly on processing online mortgages.

You’ll need a minimum credit score of 620 to qualify for a mortgage, so this is a suitable option for borrowers with fair credit. NBKC Bank offers various mortgage products, as well as personal accounts. This makes them a great option for anyone looking for a full-service lender.

Guaranteed Rate

You can apply for a mortgage in a matter of minutes from the homepage of this digital mortgage provider’s site.

All you have to do is answer a few questions about your desired home, credit, and finances to receive a comprehensive listing of loan types and interest rates you may qualify for.

Guaranteed Rate has plenty of no-down-payment loan options like VA loans and USDA loans. They also offer a knowledge center to help you understand mortgages and how the process works.

Once you decide on a mortgage product that best suits your needs, you’ll work directly with a loan expert to upload and sign documents and finalize the loan. If you prefer to meet with a loan expert, there are 170 Guaranteed Rate branches across the United States.

Truist

Truist is known for its brick-and-mortar presence, but they also have an impressive online mortgage platform. Available in English and Spanish, Truist mortgage offers an array of mortgage solutions to choose from.

You can initiate the application process online or directly from your mobile device through the SMARTGUIDE tool.

You can also call 877-907-1020 to speak with a loan officer or chat online from the website. Or if you wish to meet with a loan officer, use the locator tool to find a Truist branch near you.

You can also take advantage of their Doctor Loan program if you’re a medical professional and meet select income criteria.

SoFi Mortgage

SoFi mortgage is another online lender that stands out from the masses. Although they don’t offer government-backed home loans, SoFi mortgage has programs that require a down payment as low as 10 percent, and they do not assess mortgage insurance.

Customers also enjoy a seamless prequalification and application process, along with no origination fees. Even better, it may be possible to close on your loan in under 30 days.

Penny Mac

If you’re searching for flexibility, Penny Mac may be the ideal lender for you. They offer several options to consumers of varying financial backgrounds. To date, they’ve served over 1 million customers and funded over $5 billion in loans in 2017, alone.

You can request a no-obligation free quote online, chat with an expert, or call (888)870-6229 to get started.

Reali

Crediful’s rating

Reali caters to consumers looking to purchase or refinance their homes. Through their Interactive Loan Dashboard, you can apply, upload any documents needed, and track your loan’s progress at the tap of a fingertip.

You’ll also have access to a Home Loan Advisor 24/7 to address any concerns you may have. And because of their streamlined process and low fees, you can expect to close in record time without spending a fortune.

Unfortunately, Reali does not offer government-backed products, like FHA loans, USDA loans, and VA loans.

This can be a turnoff to first-time, credit-challenged, or cash-strapped buyers.

Another major drawback is that they only operate in Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia, and Washington.

The good news is they plan to expand their offerings to more states soon.

Pros and Cons of Online Mortgage Lenders

The rise of the internet has revolutionized many industries, and the mortgage industry is no exception. Online mortgage lenders have steadily been gaining a more substantial market share due to their distinct advantages. However, as with anything, they come with their own set of disadvantages. Here, we break down the pros and cons of opting for an online mortgage lender.

Pros of Online Mortgage Lenders

1. Lower Costs: Operating primarily online, these lenders often have fewer overhead costs compared to traditional brick and mortar lenders. This can translate into competitive mortgage rates and lower lender fees, making online mortgage lenders potentially cheaper.

2. Convenience: The ability to initiate and complete the entire application process online is a significant advantage. You don’t have to schedule meetings with a loan officer or travel to a bank branch. Instead, you can apply anytime, anywhere, which fits well with busy schedules and modern, on-the-go lifestyles.

3. Range of Loan Products: Online mortgage lenders often offer a broad range of loan products, including FHA and VA loans, USDA loans for rural properties, conventional loans, and jumbo mortgages. These lenders often cater to a diverse demographic, meaning whether you’re a first-time homebuyer seeking down payment assistance, a veteran, or someone with less-than-perfect credit, you can often find an online mortgage product that suits your needs.

Cons of Online Mortgage Lenders

1. Technological Hurdles: Not everyone is tech-savvy. If you’re not comfortable navigating online platforms or don’t have reliable internet access, you may find the online mortgage process daunting. The learning curve associated with digital platforms can be a deterrent for some people.

2. Lack of Personal Interaction: Some people prefer a high-touch, personalized service when dealing with significant transactions like buying a home. With online lenders, face-to-face interaction is usually minimal or non-existent, which can be a downside for those who prefer a more traditional approach to their financial transactions.

3. Negotiability of Fees: While online mortgage lenders are often cheaper, certain costs like origination fees and closing costs may not be as negotiable as they could be with a traditional lender. Also, mortgage insurance may still be required for government-backed loans, like FHA or VA loans, and the requirements for jumbo loans may be stricter.

4. Trustworthiness: The online space can be a breeding ground for scams and unscrupulous practices. Not all online mortgage lenders are trustworthy, making it crucial to do your homework. It’s important to research each online lender thoroughly, checking their reputation, reading customer reviews, and ensuring they are registered with appropriate financial oversight institutions.

Despite these potential downsides, many homebuyers find that the convenience, competitive rates, and the ability to shop around from multiple lenders offered by online mortgage lenders outweigh the cons. But the best online mortgage lender for you ultimately depends on your personal finance needs, comfort level with technology, and unique home loan situation.

Factors to Consider when Choosing an Online Mortgage Lender

Finding the right online mortgage lender for your home-buying journey involves more than just hunting for the lowest interest rate. You need to consider a variety of factors, from loan types to the speed of loan processing. Here’s a breakdown of what to look for:

Interest Rates

As a prospective borrower, interest rates are often one of your first considerations. The interest rate can significantly influence your monthly mortgage payment and the total cost of your loan. Due to their lower overhead costs, online mortgage lenders often advertise competitive rates. However, it’s essential to compare rates across different lenders to ensure you’re getting the best deal.

Fees and Hidden Charges

While interest rates play a crucial role in determining your loan cost, it’s equally important to consider fees and potential hidden charges. This could include origination fees, appraisal fees, closing costs, and other service charges. Some lenders may also charge additional fees for rate locks or early repayments. Always ask for a comprehensive cost breakdown and be wary of lenders who are not transparent about their charges.

Loan Types

Each online mortgage lender may offer a variety of loan types, such as FHA loans, VA loans, conventional loans, and more. Depending on your personal circumstances and needs, you might need specific loan products like USDA loans for rural properties, FHA or VA loans for a low down payment, or jumbo loans for larger properties. Ensure that the lender you choose caters to the type of loan that suits your situation best.

Customer Service and Support

Excellent customer service is crucial when dealing with online lenders as your primary communication methods will be via phone, email, or online chats. Lenders who offer high-quality customer service can significantly streamline the mortgage process, making it less stressful for you. Consider checking customer reviews and ratings for insights into a lender’s customer support.

Speed of Loan Processing

The time it takes for online mortgage lenders to process your loan application and close your loan can vary. If you’re working within a specific timeframe, you may prefer a lender known for quick processing. This is particularly crucial in competitive real estate markets, where being able to close swiftly could make all the difference.

Pre-approval Process

A seamless pre-approval process can signify an efficient online mortgage lender. Pre-approval offers you a rough estimate of how much you can borrow and helps you stand out in competitive property markets. Seek lenders that provide easy pre-approvals, preferably with only a soft credit check to avoid impacting your credit score.

User-friendly Technology

With most of your interaction with online lenders taking place digitally, user-friendly technology becomes paramount. Consider factors such as the simplicity of the application process, online document upload functionality, digital signature capabilities, and the ease of online loan tracking. A lender with a robust, intuitive platform can significantly simplify your online mortgage process.

Tips for Applying for a Mortgage Online

Embarking on the journey of applying for a mortgage online can feel overwhelming, especially if it’s your first time. But don’t worry – we’ve got some helpful tips to guide you through the process.

How to Prepare

Before you start your online mortgage application, it’s important to get your financial house in order. Here’s how:

  1. Check your credit score: Your credit score is one of the main factors that lenders consider when evaluating your loan application. Make sure to check your credit reports for any errors and dispute them if needed. If your score is low, you might want to consider improving it before applying for a mortgage.
  2. Verify your income: You will need to provide proof of income, so gather your recent pay stubs, W-2s, or tax returns. If you’re self-employed, you may need to provide additional documentation, like bank statements or profit and loss statements.
  3. Get your documents in order: Apart from income verification, you’ll need other documentation, like identification, proof of assets, and information about your debts. Having these documents ready can speed up the application process.

Navigating the Application Process

Once you’re ready to apply, keep the following in mind:

  • Understand the terms: Make sure you understand the terms of the mortgage, like the interest rate, whether it’s fixed or adjustable, the length of the loan, and any fees involved.
  • Use online tools: Many online lenders offer useful tools like mortgage calculators. These can help you understand what your monthly payments might be based on different interest rates and down payment amounts.
  • Stay organized: Keep track of where you are in the application process. Most online platforms will save your progress, but it’s good to have your own record too.

Questions to Ask Your Lender

Securing a mortgage can often feel like a daunting process, particularly when applying online. To navigate this path with more confidence, it’s crucial to arm yourself with the right questions when engaging with potential lenders. The responses to these questions will not only give you a clearer idea about the mortgage terms but also about the lender’s transparency and commitment to customer service.

What types of loans do you offer?

The world of mortgages encompasses a variety of loan types designed to cater to different borrower needs. This includes conventional loans, government-backed loans such as FHA, VA, and USDA loans, and jumbo loans for larger mortgages.

Understanding the unique benefits and requirements of each type is important. For example, FHA loans may be suitable for those with lower credit scores, while VA loans are primarily designed for veterans. Your potential lender should be able to provide a comprehensive explanation of each option and help guide you towards the loan type that best fits your unique situation.

What are the interest rates and APR?

While the interest rate of a loan often takes center stage, the Annual Percentage Rate (APR) should not be overlooked. The APR provides a more comprehensive measure of cost as it includes the interest rate, lender fees, and other loan charges, offering a more complete picture of the long-term cost of the loan.

What fees are involved?

Beyond the interest rate, mortgages often involve several other fees that can impact the overall cost of the loan. These include origination fees, appraisal fees, home inspection fees, and potentially prepayment penalties. Some lenders may even charge for rate locks, which secure your interest rate for a specified period. It’s critical to ask for a detailed breakdown of all fees involved to ensure that there are no hidden costs that might surprise you down the line.

What Is the estimated timeline for approval and closing?

Mortgage approval and closing timelines can vary greatly among different lenders. Knowing the expected timeline can be crucial, especially if you’re working with a specific move-in date. In a competitive real estate market, a quick approval and closing process could make all the difference when multiple offers are being considered.

What are your minimum credit score and down payment requirements?

Understanding a lender’s minimum credit score and down payment requirements can help you gauge your chances of approval. These requirements can vary greatly depending on the loan type and the individual lender’s policies.

Do you consider alternative credit data?

For those with a limited credit history, some lenders may consider alternative credit data such as utility bill payments or rent payment history. Asking about these possibilities could potentially help you qualify for a loan even with less conventional credit information.

What is your process for loan servicing?

Understanding whether the lender will service your loan or if they intend to sell it to another company is important. If they plan to sell it, knowing who your point of contact would be for any issues or inquiries is crucial.

Bottom Line

Choosing an online mortgage lender is a significant decision that can impact your financial situation for years to come. Therefore, it’s critical to take the time to carefully evaluate each lender. From comparing interest rates to analyzing the type of customer service they offer, there are many factors to consider in this selection process.

We’ve touched upon some of the best online mortgage lenders available today. These lenders were chosen based on their competitive rates, comprehensive loan options, excellent customer service, and user-friendly platforms. However, remember that the “best” lender will vary depending on individual circumstances, and the top choices for others might not be the best for you.

While online mortgage lenders offer convenience and often competitive rates, they also come with their unique set of challenges. It’s vital to remember that transparency, trustworthiness, and a clear understanding of the terms and conditions are paramount in any financial decision, including choosing a mortgage lender.

We encourage you to conduct your own research and take advantage of online tools and resources that many of these lenders offer. Shopping around and comparing multiple lenders will help you find the best mortgage fit for your specific needs.

Remember, a mortgage is a long-term commitment. The time and effort spent in making a careful, well-researched decision now will pay dividends over the life of your loan. Happy home hunting!

Source: crediful.com

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Apache is functioning normally

Buying a house is a dream for many Americans, but it can feel very out of reach for some people. To qualify for a mortgage, you’ll need an adequate credit score and down payment, which many people just don’t have.

That is where the Neighborhood Assistance Corporation of America (NACA) comes in. The NACA has helped hundreds of thousands of people find affordable housing with no money down and no minimum credit score. NACA also provides financial assistance for approved homeowners that encounter financial difficulties.

If you’ve been struggling to figure out how you’ll afford to purchase a home, then the NACA program could help. This article will explain how the NACA mortgage process works and how the organization could help you find your next home.

What is the NACA mortgage program?

The Neighborhood Assistance Corporation of America (NACA), a non-profit organization established in 1988, is dedicated to providing affordable housing options to Americans. Its mission is to combat discriminatory and unjust lending practices. With 45 branches across the United States, NACA assists borrowers with low credit scores in securing affordable mortgages.

NACA offers various solutions such as property improvement and foreclosure avoidance to help achieve this goal. Additionally, the organization helps homeowners reorganize their existing mortgages, preventing them from losing their homes to foreclosure. Nevertheless, NACA’s signature mortgage program remains the most sought-after offering among its services.

How does the NACA program work?

The NACA is known for its purchase program, which it calls the Best in America Mortgage Program. This program is designed to make homeownership more affordable for everyone.

If you applied for a mortgage through a bank or credit union, you would undergo an extensive credit check. But the NACA makes it possible to buy a home with:

  • No down payment requirement
  • No closing costs
  • No requirement for perfect credit
  • No limits on your income
  • No fees – The lender pays the appraisal costs, attorney fees, title insurance, transfer tax, settlement agent fees, and buyer closing costs.

All of this is available at a below-market interest rate. Currently, the NACA is offering a 30-year fixed-rate mortgage of 2.125% APR and a 15-year fixed-rate mortgage of 1.75% APR. You’d be hard-pressed to find a better deal anywhere else.

Bank of America stands as NACA’s largest and most significant partner, providing a major portion of the funding for the loans.

NACA Requirements and Qualifications

Before you assume the NACA mortgage program is too good to be true, there are certain requirements you’re going to have to meet to qualify. Unlike traditional lending practices, NACA evaluates creditworthiness based on character, rather than solely relying on credit scores.

For instance, NACA members won’t be penalized for financial hardship caused by an injury or illness. But you must demonstrate that you can afford to pay your monthly housing expenses.

These expenses include your mortgage payments, property taxes, homeowners insurance, and HOA dues. And your income can’t fluctuate from month to month.

While there are no income restrictions in the NACA purchase program, earning higher than the median income could limit your home buying options to specific regions. It’s also worth noting that owning another property while closing on a NACA mortgage is strictly prohibited.

Furthermore, as a NACA mortgage recipient, you are expected to engage in a minimum of five membership activities annually. These activities include volunteering at NACA offices, participating in protests, or offering support to other members during the home buying process.

Eligible States

Unfortunately, the NACA mortgage program still isn’t available everywhere, though the organization is working hard to expand across the U.S. It’s currently available in the following states:

  • Alabama
  • Arkansas
  • Arizona
  • California
  • Colorado
  • Connecticut
  • District of Columbia
  • Florida
  • Georgia
  • Hawaii
  • Illinois
  • Louisiana
  • Massachusetts
  • Maryland
  • Michigan
  • Minnesota
  • Missouri
  • Mississippi
  • North Carolina
  • New Jersey
  • Nevada
  • New York
  • Ohio
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Virginia
  • Wisconsin

NACA Program Pros and Cons

Here are some of the biggest advantages and disadvantages of taking out a mortgage through the NACA.

Pros

  • Buying a home with no down payment or standard closing costs
  • Snag a below-market interest rate on a 15-year or 30-year mortgage
  • No credit requirements or income limits to apply
  • Receive extensive borrower education and training

Cons

  • Time-consuming application process
  • Program isn’t available in all 50 states
  • There are limits to how much you can borrow
  • You’ll have to pay for property taxes and homeowners insurance

NACA Loan Limits

The NACA home buying program has loan limits that cap your mortgage amount. The purchase price of a home cannot exceed the conforming loan limit, which is $647,200 for a single-unit property in most states. The conforming loan limit for a single-unit home in Alaska and Hawaii is $970,800.

Who qualifies for the NACA program?

The NACA mortgage program is very generous, but there are several steps you’ll need to take before you can close on your home. Here are the seven steps you’ll take to complete the NACA loan qualification process.

1. Attend a free homebuyer workshop

If you’re considering applying for a NACA mortgage, you’ll first have to attend a homebuyer workshop. During this free workshop, you’ll learn more about homeownership and how to qualify for the NACA mortgage program. Then, you can register on the company’s website to reserve your spot.

2. Meet with your housing counselor

Once you’ve completed the homebuyer workshop, the NACA will assign you a housing counselor to guide you through this process. Your housing counselor will help you determine an affordable monthly mortgage payment and help you come up with a reasonable monthly budget. You’ll continue to meet with your counselor until you’ve qualified for the NACA housing program.

3. Attend a NACA purchase workshop

Once you’ve qualified for the mortgage program, you must attend a purchased workshop at the NACA office. During this workshop, you’ll review the home purchase process and work with a real estate agent to help you find the right home.

4. Receive a property qualification letter

Once you’ve chosen the home you plan to buy, you’ll have to get in touch with your housing counselor again. They will help you secure your qualification letter.

This letter states that you are qualified to purchase the home you’re interested in. Your NACA counselor and real estate agent can also help you draft an offer on the home.

5. Get your home inspected

Before you can purchase a home, it must pass a NACA home inspection and pest inspection. If the inspection reveals any problems with the home, you must resolve those issues before you can close on the home.

6. Meet with your mortgage consultant

Throughout this entire mortgage process, you should be saving money, maintaining your income level, and paying your bills on time. At this point, you’re going to meet with your mortgage consultant to prove that you’ve met the required guidelines and are ready to move forward with the mortgage application.

7. Close on your mortgage

Now it’s time to close on your home! There are no closing costs for a NACA mortgage. Additionally, NACA members do not pay private mortgage insurance (PMI).

Instead, your NACA membership provides you with a post-purchase assistance program through NACA’s Membership Assistance Program (MAP). But this is the final step that allows you to close on your new home and finalize the process.

Alternatives to the NACA program

The NACA program may not be suitable for everyone, or you may not qualify. If this is the case, consider other mortgage programs that may be available to you.

FHA Loans

For low-to-moderate income borrowers who may not meet the stringent requirements of conventional loans, the Federal Housing Administration offers the FHA loan program. With lower down payment needs and more lenient credit score standards, these loans provide a viable option for those looking to finance their first home.

USDA Loans

The U.S. Department of Agriculture extends its support to those seeking to purchase a home in rural or suburban areas through its USDA loan program. These loans offer attractive terms such as low or no down payment options and competitive interest rates, with the aim of fostering home ownership in less densely populated regions.

VA Loans

As a way to show appreciation for the sacrifices made by military service members, veterans, and their surviving spouses, the Department of Veterans Affairs provides VA loans.

These loans, exclusive to eligible individuals, boast features such as no down payment requirement, no private mortgage insurance, and interest rates that are often more favorable than those of traditional loans.

First-Time Homebuyer Programs

For those entering the housing market for the first time, many states and local governments offer programs tailored to their needs. First-time homebuyer programs often provide financial assistance in the form of lower interest rates and down payment assistance, as well as other incentives, making homeownership a reality for those who may not have the funds for a down payment otherwise.

Down Payment Assistance

To help alleviate the burden of the upfront costs of buying a home, down payment assistance (DPA) programs are available from government agencies, non-profit organizations, and private lenders.

These programs provide homebuyers with the necessary funds to cover their down payment, allowing them to get one step closer to affordable homeownership.

National Homebuyers Fund

As a non-profit organization, the National Homebuyers Fund offers down payment assistance to low-and moderate-income homebuyers in the form of grants that do not need to be repaid. Their mission is to provide a helping hand to those who may not have the resources to make a down payment on their own.

Chenoa Fund

The CBC Mortgage Agency’s Chenoa Fund is a down payment assistance program that provides low-and moderate-income homebuyers with up to 3.5% of the home’s purchase price. This support is provided through either forgivable or repayable second mortgage loan options.

Bottom Line

If you’re concerned that you don’t have the down payment or credit requirements necessary to apply for a traditional mortgage, a NACA mortgage may be a suitable option. Borrowers that qualify could receive low-interest mortgages with no down payment, closing costs, or fees. The application process is tedious, but the benefits can help you achieve the dream of homeownership.

Frequently Asked Questions

Is there a minimum credit score requirement for the NACA program?

No, NACA does not consider credit scores for mortgage approval. Instead, they look at your payment history and ability to make future mortgage payments.

Is there an income limit to qualify for the NACA program?

There is no strict income limit to qualify for the NACA program. The program is designed primarily to assist low- to moderate-income individuals and families, but it does not set an upper limit on income. The focus is more on your ability to afford the mortgage payments, and whether you meet other program criteria.

How long does the NACA mortgage process take?

The time frame can vary depending on individual circumstances, but generally, it takes several months from attending the initial workshop to closing on a home. The more promptly you can provide the required documentation and fulfill program requirements, the quicker the process will likely be.

How does the NACA mortgage differ from a traditional mortgage?

NACA mortgages typically offer more favorable terms compared to traditional mortgages. They come with no down payment, no closing costs, and no requirement for private mortgage insurance (PMI). The interest rates are often below market rate as well.

Can I use a NACA mortgage to refinance my existing loan?

No, NACA mortgages are designed for the purchase of a primary residence only. They cannot be used for refinancing existing loans or for investment properties.

Source: crediful.com

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Scalability, Insurance, Digital, Servicing, DPA Products; Events, Training, and Webinars

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By:
Rob Chrisman

Tue, Oct 10 2023, 10:26 AM

“I dance like people wish they weren’t watching.” Someone sure is watching, and counting, empty houses. Lack of available housing inventory has helped keep housing costs high throughout many of the nation’s big cities, but nearly 5.5 million homes sit vacant across the nation’s 50 largest metropolitan areas. The average vacancy rate across these 50 metros is 7.22 percent, with New Orleans (13.9 percent), Miami (12.7 percent), and Tampa (12.2 percent) having the highest vacancy rates. Vacancy rates are lowest in Minneapolis, Austin, and Washington, D.C., the only metros in the study with vacancy rates below 5 percent. Just because an area has a high vacancy rate doesn’t necessarily mean that there’s something wrong with its housing market. Roughly one-quarter of vacancies are due to being empty for rent, one-fifth because they’re only used part time, and one-twelfth because they’re being repaired or renovated. (Today’s podcast can be found here. This week’s is sponsored by NotaryCam, your partner for The Perfect Close! Ease of use, additional closing compliance, better borrower experience, reduced timelines, and cost savings, what is stopping you from getting on the RON train with NotaryCam? Listen to an interview with Curinos’ John Sayre on key data points from the residential lending markets and how lenders are utilizing that data to make more informed decisions.)

Lender and Broker Software and Services

“If you’ve got buyers who need just a little more cash, get to know Down Payment Resource and its nationwide database of down payment assistance (DPA) programs for FTHBs, repeat buyers, teachers and first responders to name a few. At MBA Annual, catch DPR’s Rob Chrane on a panel with loan Depot’s Mosi Gatling, FormFree’s Christy Moss, iEmergent’s Laird Nossuli and Movement Mortgage’s Montell Watson to explore DPA’s role in reaching mortgage-ready borrowers (Tues. 10/17 @ 3 pm). Need more now? Schedule a meeting with us at Annual or download this case study on how Gatling produces nine figures working with the Nevada Rural Housing Authority to assist first-time, military and low-income buyers.” (STRATMOR’s current blog is titled, “Mind the Down Payment.”)

There are banks, and there are subservicers. Much rarer is the combination: a bank subservicer, a subservicing partner that also offers the surety and stability that comes with being a depository institution. This is the unique combination that Servbank offers. The great people, great tech, and best-in-class experience that is delivered to customers and clients is strengthened by the “bank subservicer” designation. The distinguishing effect for customers and clients? The safest, most comprehensive, and truly reliable partnership the industry has to offer. Partner with Servbank today.

For more than 30 years, Clayton, a Covius Solution, has been a market leader in loan due diligence, helping mortgage and capital market clients see and evaluate risk in their portfolios. Now Clayton’s best-in-class service and expertise is supported by its new digital platform, Focus. Focus allows clients to efficiently access deal information and seamlessly upload, validate, and work exceptions, all in one place with a single sign-on. From a correspondent lending perspective, the platform offers aggregators real-time access to conditions, loan grades and documents on the loans they are acquiring. Aggregators can also give correspondents viewing and transacting rights to their specific pipelines, while monitoring performance across all counterparties. Contact Tom Coffey, Clayton VP of Business Development, to learn more or to schedule a meeting with him at MBA Annual in Philadelphia Oct. 15-18 or at ABS East in Miami Oct. 23-25.

Boo! LoanCare’s bringing all treats (no tricks) to this year’s MBA Annual Convention in Philadelphia! Join Kevin Cooke, Jr., financial industry-veteran and recently appointed Head of Strategy & Business Development, and key members of Company leadership for the unveiling of two new proprietary consumer-facing digital platforms unlike any other on the market. “I am excited to bring a best-in-class opportunity to our partners to communicate and market products to their homeowners,” said Kevin. “Reach me at Kevin Cooke and let’s see how our seamless blend of tech innovation and exceptional user experiences can serve your portfolio.” Private demonstrations of LoanCare Analytics™ will also be available to those interested.

Matic, a digital home insurance platform built for the mortgage industry, recently announced an exclusive partnership with New American Funding to extend their marketplace of 50 A-Rated carriers into New American Funding customer offerings. New American Funding joins over 100 mortgage lenders, servicers and banks, representing 20 percent of loans processed in the U.S., that partner with Matic to integrate the insurance shopping experience into the homeownership lifecycle. Now more than ever, mortgage leaders are turning to Matic to help them offer value to customers, generate revenue, and reduce costs in a tough housing market. If you’re a mortgage leader, don’t miss out: book a demo with Matic to learn how to add an ancillary revenue stream that removes friction from the insurance process and keeps customers within your existing systems.

In an unpredictable market, forward-thinking mortgage lenders are focused on what can be done now to prepare for the next market growth cycle. In a recent survey conducted by Wolters Kluwer, many lenders point to one key factor: scalability. To ensure they can scale to meet borrower needs, more and more lenders are looking at investment in innovative, flexible technology as the key to increasing ROI and stepping forward as market leaders. Read more about the survey responses today and be sure to schedule a meeting at MBA Annual to speak with an expert.

Training, Events, and Webinars

Like every other month, with roughly a third of the month over with, October if flying by. What’s happening out there? A good place to start is here, and click on “events” for conferences in the future.

Looking to learn all about DSCR loans for the rental market from an industry expert? Join LendingOne’s upcoming webinar events featuring Samuel Bjelac, VP of Third-Party Originations. He offers his valuable insight into DSCR loans, along with a comprehensive overview of how LendingOne is helping mortgage brokers and their clients succeed in the rental market. Tomorrow! Save your spot for October 11th at 2PM. DealDesk: Focus on DSCR Loans for Rental Investment Properties: Register Here. Monday, October 16th at 2PM. Register for this free webinar presentation in collaboration in NAMB: Investment Property Solutions for Mortgage Brokers: Sign Up Today. For more information about the LendingOne Third-Party Originations Channel, call us today to learn more: 866-794-0937 or visit our website.

Home ownership remains the de facto American Dream, and as a credit union you are well-positioned to help your members make that dream a reality. So why do so many members choose to finance their home purchases elsewhere? Join Mark Teteris, CMB, and John Dumonsau from Optimal Blue on Oct. 24 for an ACUMA Inside Track webinar titled “Mortgage Pricing and the Member Journey.” During this knowledge-packed session, you will hear from experienced mortgage industry professionals on how you can position your credit union for mortgage success by creating a structure that provides members with the information, tools, products, pricing, and confidence to secure their home loan with you. Save your seat today.

Today is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman, and sponsored by National MI. Tune in every Tuesday at 10AM PT to the weekly video show designed to empower mortgage professionals to tap into the millennial market. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. Today you’ll hear from Michael Sarracini, the CEO of Keyspire. After building a multimillion-dollar real estate empire by the time he turned 25, he has trained more than 100,000 real estate investors to build wealth through real estate. As a young and successful investor, Michael will bring a unique perspective on how the next generation perceives real estate and the messages they need to step into the market.

Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. Tomorrow’s features Plaza Home Mortgage’s head of capital markets, Mike Modell.

ConFi Today’s third session webinar, Wednesday, October 11th 11:30 am–12:30 pm PT | 1:30 pm–2:30 pm CT | 2:30 pm–3:30 pm ET; Real Talk About Artificial Intelligence: How Will Enforcement Activity Impact the Use of AI in Consumer Financial Services, will focus on the latest issues and enforcement trends related to financial institutions using AI tools.

Friday the 13th is The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT in “The Rundown”. Tom G. and I are joined by Delmar’s head of business development Victoria DeLuce.

PRMG University TPO October Training Calendar: Learn about the FHA 203(h) product, the Mortgage Insurance for Disaster Victims program. Friday, October 13th | 1:00 PM – 2:00 PM PDT. Join PRMG University to learn about PRMG’s non-QM Expanded Access product which provides options for bank statements, express documentation, assets for qualifying, reduced derogatory seasoning and much more. Friday, October 20th | 10:00 AM – 11:00 AM PDT. Join PRMG University and Essent to learn how to review short-term rental income guidelines, when you can use it as income and how to document it. Monday, Oct 23rd | 1:00 PM – 2:00 PM PDT

As we celebrate America’s independence, we have many other reasons to celebrate as well. This October 15-18, we’re taking the original gathering of real estate finance professionals to the birthplace of our country, and we’re celebrating some of the reasons you’re going to love it: MBA’s Annual Convention & Expo 2023.The largest annual gathering of real estate finance professionals, this is the one event you need to gain access to the industry’s power players and innovators. Be inspired and get informed by engaging speakers on the Main Stage. Meet with dozens of exhibitors in THE HUB and get hands-on access to the latest products and services. Dive deep into Breakout Sessions to get the insight you need on all the facets of the business.

Appraisal Buzz new course: Review Case Studies Residential. Apply the review process that you learned in Review Theory-Residential by walking through a case study that focuses on a two-stage review assignment. Day one begins with a quick refresher of review concepts. From there, you will work on an assignment that gets dropped on your desk much like it does in real life. Working in groups, as well as individually, you’ll identify and analyze the components of the case study review assignment. October 16 – 19, 10:00 AM – 2:00 PM CT. 14 Hours DE, 1 Hour exam.

Arch MI October webinars. Google CEO, Sundar Pichai says “AI is more profound than fire or electricity or anything we’ve done in the past.” If you’d like to find out how you can use this powerful tool in your business, register to attend the upcoming Arch MI webinar on Wednesday, Oct 18th. Ginger Bell, CEO, Edumarketing will be sharing how to leverage AI for your marketing. Register here.

Join CoAMP and Deephaven Mortgage as they present NON-QM Best Practices October 19th @ 2:00 PM, MDT. Discover how to incorporate Tech and Traditional Training to become subject matter experts. Cost: Member & Member Guests – $25; Future Members – $50

Join MMBBA for Lunch & Learn: New Homes & Builder Update Thursday, October 19 from 11:00 am-1:00 pm. Hear Zonda’s Nicollette Chapman deliver a powerful and impactful class about the current state of the housing market, the new construction market, local updates, and how to secure more builder business all backed by Zonda’s data.

Join Mortgage Bankers Association of Metropolitan Washington for a fast-paced, fun presentation walking through the Fed’s monetary policy, economy, interest rates and housing as we quickly approach 2024. “Reading the Markets: A Real-time Economic and Interest Rate Discussion” with Bill Bodnar, Thursday, October 19, 10 – 11 am.

Capital Markets

Rates are, at least temporarily, down this morning based on war in Israel, but we’re still talking about the jobs data. Nonfarm payrolls nearly doubled consensus expectations as 336k jobs were added in September and the prior months were revised up. 70 percent of the increase could be attributed to the leisure and hospitality, government, and health care sectors. The unemployment rate, labor force participation rate, and average workweek all remained at their August levels. A resilient labor market and rising wages put pressure on the Fed to keep rates in restrictive territory.

We also learned last week that the number of available jobs also increased unexpectedly to 9.6 million led by a sharp increase in business and professional services. It is possible that the strikes involving major labor unions will add to wage growth later this year although other non-union workers are likely to see slower wage growth this year. Elsewhere, manufacturing continued to contract for the eleventh consecutive month in September, however at a slower pace than prior months. The services sector grew for the ninth consecutive month and production increased at a faster rate. Overall, inflationary pressure remains despite certain areas of the economy having contracted due to the Fed’s tighter monetary policy.

This holiday-shortened week for the bond market brings the $101 billion mini-Refunding (e.g., the Treasury auctioning off securities) as well as updates on inflation, including PPI and CPI, inventories, and Michigan sentiment. The week is also heavy with Fed speakers, while the minutes from the September FOMC meeting will be released tomorrow. Regarding MBS and besides today’s Class A 48-hours, Class B net out is on Friday. We’ll also see bank earnings: JP Morgan, Citigroup, Wells Fargo, and PNC Financial, along with BlackRock.

Today’s economic calendar is already under way with NFIB small business optimism for September (dropped to a four-month low in September, reflecting worsening expectations for the economy and credit conditions). Later today brings wholesale inventories and sales, a Treasury auction of $46 billion of 3-year notes, and no fewer than four Fed speakers. Now that the bond market is back open, we begin the trading week with Agency MBS prices better than Friday’s close by roughly .250 and the 10-year yielding 4.70 after closing last week at 4.78 percent.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

Well, the Consumer Finance Protection Bureau finally released its “Ability to Repay” and “Qualified Mortgage” rules today.

At first glance, they look to be pretty lackluster, and the CFPB seems to be asking more questions than it is giving answers.

As part of Dodd-Frank reform arising out of the latest mortgage crisis, lenders must now ensure that borrowers have the ability to repay their mortgages.

While this sounds like a no-brainer, prior to the crisis just about anyone with a pulse could take out a home loan.

The CFPB included the story of a victimized borrower in its press release, though you have to wonder how many of these homeowners actually knew they couldn’t afford the loans before agreeing to apply for one.

Sure, it went both ways, but it was both lenders and borrowers who were at fault for the crisis.

Ability-to-Repay Rule

The new “Ability-to-Repay rule” requires lenders to underwrite pretty much ALL new residential home loans a lot more stringently than in past years, namely the 2000s.

However, the new mortgage rules are pretty much on par with today’s underwriting standards, which have become much more rigorous in light of past abuses.

I say pretty much all because HELOCs, time-share plans, reverse mortgages, bridge loans, and certain construction-to-perm loans are exempt from the ATR rule.

As part of the ATR rule, lenders must consider and verify eight (8) underwriting criteria:

– Current income or assets
– Current job status
– Credit history
– Monthly payment on mortgage
– Monthly payment on any other loan tied to subject property
– All other debt obligations
– The borrower’s debt-to-income ratio

So basically underwriters need to do their due diligence, which has always been the case.

There is nothing groundbreaking here, just basic underwriting at its purest and best, including verifying that borrowers have sufficient income and assets to take out a sizable home loan.

This means no stated income loans or no doc loans, which were prevalent during the housing boom.

Additionally, lenders can’t use teaser rates to qualify borrowers; only the full principal and interest payment will suffice.

However, if a borrower is being refinanced out of a high-risk loan, such as an ARM, interest-only loan, or option arm, into a more stable loan, the full underwriting process is not necessary.

Certain federal refinancing programs such as HARP 2 will also be exempt from these rules.

What Is a Qualified Mortgage?

The CFPB also released its definition of a “qualified mortgage,” which is presumed to meet the ATR rule requirements as well, and provide the most protection to borrowers (and more importantly, lenders).

Qualified mortgages have even more mandatory features, including the following:

– No excessive upfront points/fees
– No interest-only loans
– No negative amortization loans
– No loan terms beyond 30 years
– Max debt-to-income ratio of 43%
– No balloon mortgages (unless small creditor in rural/underserved area)

For a transitional period (seven years), the DTI limit will not be enforced if the loans are eligible for purchase by Fannie Mae, Freddie Mac, or the FHA.

So in essence, the DTI limit won’t really be an issue for most loans, seeing that the majority are sold to Fannie or Freddie.

*The FHA Qualified Mortgage definition is pretty much the same as Fannie and Freddie’s, except for the APR thresholds, which are detailed below.

Here is a look at the max points and fees for Qualified Mortgages, currently capped at 3% of the loan amount if $100,000 or higher, and a proposal made by the Mortgage Bankers Association to increase them for smaller loan amounts:

Note that many third-party fees for things like title insurance, escrow, appraisal and credit reports aren’t part of the fee calculation (unless they come from a creditor affiliate, the creditor receives compensation, or the fees are deemed unreasonable).

Additionally, discount points may be limited based on the loan’s APR relative to the average prime rate offer (APOR).

It’s all very confusing at the moment, so hopefully over time some of these issues will be clarified.

Types of Qualified Mortgages

Qualified Mortgages with Rebuttal Presumption

This category of QMs covers “higher-priced loans” reserved for borrowers with insufficient or poor credit history. These loans are distinguished as those with APR more than 150 basis points (1.5%) above the “Average Prime Offer Rate” (APOR) benchmark.

Assuming the loan finds its way into default, the borrower can “rebut the presumption” that the lender actually considered their ability to repay the loan.

The CFPB notes that the borrower would have to prove that the lender didn’t consider their other living expenses after the mortgage and other debts were accounted for.

Note: For FHA loans, mortgages with an APR greater than APOR + 115bps + on-going Mortgage Insurance Premium (MIP) are considered Rebuttable Presumption Qualified Mortgages.

Qualified Mortgages with Safe Harbor

The second category of QMs is reserved for lower-priced loans made to borrowers who present little risk. These loans are defined as those with APR less than or equal to 150 basis points (1.5%) above the APOR benchmark.

Lenders will be assumed to have “legally satisfied” ATR requirements, meaning they won’t be on the hook for the loan if it goes bad.

However, borrowers can still challenge the lender if they believe the loan fails to meet the rules of a QM.

In both categories, borrowers also have the right to challenge lenders for violating any other federal protection laws.

Note: For FHA loans, mortgages with APRs less than or equal to APOR + 115bps + on-going MIP are considered Safe Harbor Qualified Mortgages.

More Ability-to-Repay Proposals

The CFPB is also seeking public comment for a number of other proposals, including whether there should be exemptions for non-profit creditors and housing finance agencies promoting affordable housing and community development (grey area).

Exemptions are also being floated for homeownership stabilization programs intended to prevent foreclosures, such as the Making Home Affordable initiative.

Additionally, community banks and smaller credit unions that originate and hold loans in their own portfolios could be given QM status.

Finally, the CFPB wants advice on how best to calculate the loan origination compensation rules, including specific limits on mortgage points and fees.

All said, there are plenty of unanswered questions here, and much of it sounds like the same nonsense all over again. The type of rule making that is circumvented before it’s even written.

Still, it will be interesting to see if “QM loan” becomes a household name, and makes non-QM loans much more expensive.

The Ability-to-Repay rule and proposed amendments are expected to go into effect in January 2014.

(photo: Joe Shlabotnik)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

From charming towns to stunning coastlines.

From historic small towns to modern up-and-coming suburbs, Delaware is a state that has charmed many into laying down roots. Considering the significant benefits of a strategic location on the East Coast, plenty of diverse landscapes from beaches to farmlands and a favorable tax climate, it’s easy to see why Delaware is more than just a place on the map, it’s also a great place to call home.

  • Population: 70,750
  • Average age: 35.9
  • Median household income: $49,354
  • Average commute time: 22.0 minutes
  • One-bedroom average rent: $1,576

As the largest city in the First State, Wilmington certainly makes a compelling case for one of the best places to live in Delaware. It’s much more than just a hub for corporations and banks, though it wears that hat quite stylishly with its skyline punctuated by modern skyscrapers.

Wilmington offers a unique blend of urban amenities and natural beauty, thanks to its proximity to the Delaware River and Brandywine Creek. Foodies will feel right at home, with upscale eateries and cozy cafes offering everything from farm-to-table fare to international delicacies. The Wilmington Riverfront, once an industrial area, has undergone a renaissance to become a hotspot for dining, shopping and leisurely strolls.

Residents of Wilmington can enjoy the best of both worlds: a bustling city life, and the tranquility of suburban and outdoor settings just a stone’s throw away. Schools in the area are highly rated, and the job market is strong, making it a sensible choice for families and young professionals alike. For those seeking active lifestyles, the city is crisscrossed with bike lanes and walking trails, and you’re never too far away from a park. Also, given its central location, Wilmington offers easy access to Philadelphia, Baltimore, and New York City, making it ideal for weekend getaways or even longer daily commutes.

  • Population: 31,155
  • Average age: 24.7
  • Median household income: $60,767
  • Average commute time: 20.7 minutes
  • One-bedroom average rent: $1,482

If you’re looking through lists of the best places to live in Delaware, chances are Newark will appear with some frequency — and for good reason. Known primarily as the home of the University of Delaware, Newark exudes an academic yet laid-back atmosphere that is hard to resist. The town is far more than just a college hub; it’s a community bursting with energy, loaded with parks and equipped with a historic downtown district that can make anyone feel like a local. Whether it’s grabbing a fresh-baked pastry from a boutique bakery or attending a live outdoor concert, Newark serves up small-town charm and big-city conveniences in a unique mix.

Newark’s educational assets are not confined to its well-known university; local schools are highly regarded and offer a top-tier education for the younger crowd. The job market here is solid, especially for those in science, technology and healthcare, due in part to the university’s strong emphasis on research and innovation. The city is a paradise for nature enthusiasts, offering a multitude of walking and biking trails. Plus, with Wilmington just a short drive away and Philadelphia less than an hour’s commute, Newark is strategically positioned for those who like to expand their horizons.

  • Population: 38,992
  • Average age: 33.8
  • Median household income: $48,500
  • Average commute time: 26.0 minutes
  • One-bedroom average rent: $1,302

As the capital city of Delaware, Dover has an appealing mix of political prowess, rich history and contemporary amenities, making it an intriguing option for the title of one of the best places to live in Delaware. Aside from being the administrative heart of the state, Dover also stakes a claim in aerospace and manufacturing, thanks to its close relationship with Dover Air Force Base. And let’s not forget NASCAR; the city roars to life twice a year during the races at Dover Motor Speedway, attracting fans from all around the country. A blend of classic and modern, Dover’s Historic District showcases 18th-century architecture, while its growing retail and restaurant scenes keep things decidedly 21st-century.

Everyday life in Dover provides a bit of something for everyone. For families, excellent schools and a variety of recreational options — including abundant parks and nature reserves — make for an enriching environment to raise children. Professionals will appreciate the stable job market, and with the average commute time clocking in at less than the national average, work-life balance is more than achievable.

  • Population: 21,397
  • Average age: 36.7
  • Median household income: $76,920
  • Average commute time: 27.2 minutes
  • One-bedroom average rent: $1,885

If you’re considering the best places to live in Delaware but want to steer clear of bustling city centers, Bear might just be the diamond in the rough you’re seeking. Once a small farming community, Bear has evolved into a suburb with an interesting mix of residential developments, shopping districts and open spaces.

It’s a hit with families, thanks in part to its excellent school system and various recreational opportunities. Whether you’re interested in kayaking at Lums Pond State Park or enjoying an afternoon picnic with the family, the great outdoors are always within reach when you live in Bear.

What really sets Bear apart, though, is its versatility. This unincorporated community offers the calm and scenic views of suburban living along with the convenience of nearby city amenities—Wilmington and Newark are just a short drive away. Bear is more than just a place to hang your hat; it’s a place to build a life. With a strong sense of community and a wide variety of housing options to suit different tastes and budgets, Bear provides an inviting atmosphere for skilled professionals, growing families and newly minted retirees alike.

  • Population: 1,151
  • Average age: 62.1
  • Median household income: $137,783
  • Average commute time: 35.0 minutes
  • One-bedroom average rent: $1,250

Dubbed the “Nation’s Summer Capital,” Rehoboth Beach isn’t just a vacation hotspot; it’s also a contender for one of the best places to live in Delaware. With its iconic boardwalk, beautiful sandy shores and unparalleled ocean views, living here feels like a year-round holiday.

However, don’t mistake it for just another beach town; Rehoboth Beach is as well-rounded as they come. It offers exceptional dining options that range from seafood shacks to gourmet restaurants, boutique shopping that rivals much larger cities, and a ton of community events and festivals that keep the community engaged throughout the year.

Schools in the area are highly rated, making it a viable option for families. For the health-conscious, the town provides ample outdoor activities — think paddleboarding, cycling and of course, swimming, all at the drop of a hat. The local job market is surprisingly diverse, boasting opportunities in tourism, retail and even tech. Plus, the low property taxes and no sales tax add an extra layer of allure for those looking to stretch their dollar to the max.

  • Population: 6,987
  • Average age: 42.1
  • Median household income: $131,603
  • Average commute time: 29.9 minutes
  • One-bedroom average rent: $1,384

Pike Creek offers an appealing blend of winding roads, upscale homes and scenic vistas, including panoramic views from the popular White Clay Creek State Park. Far from being just a pretty face, Pike Creek is known for its quality schools, making it an educational haven for families. Local fitness centers, golf courses and even a shopping center carved from a renovated barn add a distinct flair to this undeniable Delaware gem.

Everyday life in Pike Creek balances convenience with a sense of community. The area is exceptionally safe, and local amenities range from family-run grocery stores to highly rated medical facilities. Job opportunities in nearby Wilmington and Newark make for an easy commute, and Pike Creek itself is home to a range of businesses, from local restaurants on the rise to established retailers.

  • Population: 3,420
  • Average age: 66.4
  • Median household income: $78,125
  • Average commute time: 35.9 minutes
  • One-bedroom average rent: $3,100

With a history dating back to 1631, Lewes wears its title as the “First Town in the First State” with pride, and it’s easy to see why it’s frequently dubbed one of the best places to live in Delaware. The town’s coastal charm comes from a potent mix of historic sites, scenic beaches and maritime character.

The Cape May-Lewes Ferry not only offers picturesque views but also a practical connection to New Jersey. But the ferry isn’t the only water-bound vessel here; the town is a hub for boating and fishing. Local fish markets, quirky boutiques and cozy restaurants line the streets, offering a taste of small-town living with a uniquely appealing maritime twist.

A strong focus on quality education and healthcare makes Lewes an ideal location for families and retirees alike. The town has become increasingly popular for its low property taxes and affordable cost of living, all while offering a high quality of life. Those with a passion for the outdoors will find a range of activities, from kayaking to bird-watching at Cape Henlopen State Park. Lewes is more than just a seasonal destination; it’s a great place to lay down roots and live out your life in peace. Plus, it’s an absolute paradise for leaf peeping.

  • Population: 14,172
  • Average age: 46.9
  • Median household income: $158,063
  • Average commute time: 23.1 minutes
  • One-bedroom average rent: $1,773

Perched in the northern tip of Delaware, Hockessin effortlessly claims its spot among the best places to live in Delaware. Known for its rolling hills, lush green spaces and upscale homes, this sweet spot draws people in with its serene ambiance. Hockessin boasts an interesting blend of history and modernity, with sites like the Ashland Nature Center and numerous upscale dining and shopping outlets. Whether it’s the annual Fourth of July Relays or the panoramic views from the Auburn Heights Preserve, Hockessin never falls short of leaving an impression.

Hockessin is known for its commitment to education, with several top-rated schools making it a magnet for families. The local farmers market is a testament to the town’s dedication to fresh, local produce, while a slew of fitness centers and wellness outlets cater to the health-conscious. With its strategic location, Hockessin offers convenient access to Philadelphia and Wilmington, providing ample opportunities for work and recreation.

  • Population: 24,164
  • Average age: 39.7
  • Median household income: $93,750
  • Average commute time: 36.6 minutes
  • One-bedroom average rent: $1,745

Once a sleepy farming village, Middletown has transformed into a buzzing hub and, as a result, become indisputably one of the best places to live in Delaware. This growth hasn’t robbed it of its charm; instead, Middletown effortlessly blends the conveniences of urban living with the tranquility of its rural roots.

The historic Everett Theatre, which has been the centerpiece for entertainment for over a century, is a surefire hotspot every weekend. Couple this with the town’s shopping centers, locally loved restaurants and the much-anticipated annual Peach Festival, and it’s clear that Middletown has it all and then some.

Families thrive here, thanks to the community’s outstanding schools, myriad parks and an array of recreational programs. The town places a strong emphasis on community engagement, evident in its many events and gatherings throughout the year. As the cherry on top, Middletown’s strategic location along the Route 301 corridor offers ease of access to major employment areas in Delaware, Maryland and New Jersey.

  • Population: 13,149
  • Average age: 36.5
  • Median household income: $63,794
  • Average commute time: 34.8 minutes
  • One-bedroom average rent: $1,050

Strategically positioned between Wilmington and Dover, Smyrna is more than just a waypoint; it’s steadily gaining recognition as one of the best places to live in Delaware. This town is a treasure trove of history, evident in its well-preserved architecture and the rich stories housed within the Smyrna Museum. But Smyrna is not one to rest on its historical laurels. The town has embraced the future with an evolving array of attractions, from bustling shopping centers to eclectic eateries, ensuring residents have everything they need right at their doorstep.

The community radiates a close-knit, small-town feel where neighbors are more like family, and yet, the conveniences of urban living are never far away. Lake Como, the heart of local outdoor activities, sees residents flocking for a peaceful stroll, fishing or simply soaking up nature’s splendor. Proximity to major highways ensures that bigger cities, with their job markets and recreational options, are within easy reach.

Find your dream Delaware apartment

In a state brimming with scenic beauty, historical significance and modern conveniences, selecting the best places to live in Delaware is no small feat. Each location mentioned offers its unique flavor, promising an enviable quality of life.

Whether it’s the coastal allure of Rehoboth Beach or the historical charm of Smyrna, Delaware ensures its residents don’t just live, but thrive. As you consider the next place to call home, remember that in Delaware, every town and city offers more than just an address — it promises an experience.

Source: rent.com

Apache is functioning normally

Apache is functioning normally

In May 2021, the median price for a home was $350,300. That reflected a 23% increase year-over-year, demonstrating that the housing marketing was bustling after the impact of the COVID-19 pandemic. But it’s not just a rise out of the pandemic that has created a competitive housing market in 2021 and beyond. The record high in May 2021 followed 111 months of year-over-year gains, starting in March 2012. 

In 2021 and 2022, the housing marketing has been awash in demand. But there aren’t enough homes to go around, leading to bidding wars and other challenges for buyers. Looking at this landscape, you may wonder, can you buy a house with bad credit?

The Challenges of Buying a Home with Bad Credit

Mortgage lenders look at a lot of factors to determine if you qualify for a home loan. Of course, your annual income and debts are crucial, but your credit score is also a significant factor. Applicants with great credit scores—750 or higher—tend to have an easier time getting approved for a mortgage and getting the most competitive interest rates available. Applicants with credit scores below 650 may have a more difficult time getting approved for a mortgage or securing low interest rates.

For a mortgage lender, all applicants present some sort of calculated risk. Lenders perceive those with higher credit scores as being at lower risk of foreclosure or defaulting on their home loans. As a result, people with high scores can get a lower interest rate and more favorable terms on a loan. Unfortunately, those with bad credit scores are automatically perceived to be a higher risk and—if they can get a loan—may end up paying higher interest rates and having to agree to less appealing terms that come with a bad credit mortgage.

COVID-19’s Impact on Buying a Home

The pandemic had some impact on the mortgage-buying process. That’s true for individual buyers as well as the entire process.

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Homebuyers may have faced financial struggles during the pandemic, for example. Job or income loss could have led to difficulties paying bills or the need to take out loans to cover living expenses short-term. Those situations can impact credit and your ability to get a home loan.

At the same time, the Federal Reserve dropped interest rates in 2020 to help support the struggling pandemic economy. One result was that buying a house became very attractive, in part due to the lower overall cost of the loans.

Bad Credit in a Competitive Market

But now rates are increasing again—and may continue to rise throughout the year. Increasing rates may decrease competition between buyers, but they can make it more difficult for someone with less-than-great credit to buy a home for a number of reasons, including:

  • You may not be able to outbid others. Lenders may be willing to take a risk on someone with poor credit, but that risk is usually fairly limited. That means you may not be able to get approved over a certain amount, limiting how much you can pay for any home.
  • Your loan options may limit you. Buying a house with bad credit often means leveraging a government-backed loan, such as FHA or USDA loans. These loans must follow certain requirements about loan-to-value ratios, inspections and other steps to buying a home. In today’s housing market, having to stick to strict requirements can put you at a disadvantage.
  • Sellers may not choose your offer. Even if your offer is competitive, if you’re bidding with an FHA loan or other such financing, sellers may opt for a cash offer or one backed by a traditional commercial loan. Right or wrong, there’s some perception that cash or traditional loan offers are more likely to go through.

How to Buy a House with Bad Credit

It’s not all a lost cause, though. There are options for buying a home with poor or bad credit, such as Federal Housing Administration (FHA) loans. That’s true even in a competitive market.

FHA Loans

FHA loans have some of the most lenient qualification requirements. And they’re available to any homebuyer, not just first-time buyers. 

To be eligible for an FHA loan, you need a credit score of at least 500. You’ll also have to meet other requirements, including appropriate debt-to-income ratios and not having certain types of open collection accounts in your credit history. Overall, you need to demonstrate to the lender that you’re reasonably able to pay the mortgage associated with the loan.

If you have a credit score between 500 and 579, the loan-to-value ratio is limited to a maximum of 90% on any FHA loan you might be approved for. That means you’ll need to come up with at least 10% of the purchase price as a down payment. For example, if you buy a home for $200,000, you’ll need at least $20,000 for the down payment.

If you have a credit score of 580 or above, you could be eligible for maximum financing. That means you may be able to get a loan with as little as 3.5% down.

VA Loans

Veterans Administration loans are available to military veterans and qualified spouses. The VA doesn’t set a specific credit score requirement for its programs, though it does state that borrowers will need to meet creditworthiness requirements. At the very least, the lender must determine that you have the means to pay the mortgage. 

Some benefits of VA loans include:

  • They don’t necessarily require a down payment
  • No requirement for PMI, even if you don’t put down 20%
  • Competitive interest rates you might not be able to access elsewhere

USDA Loans

The United States Department of Agriculture offers mortgages to home buyers in eligible rural areas whose incomes fall in the low-to-average income range for their areas.  The USDA doesn’t publish a minimum credit score requirement. It simply states that borrowers must have the willingness and ability to repay the loan, as demonstrated in part by their credit history. USDA lenders must look at three years of credit history.

Other Options

There are ways to increase your chances of getting approved for a mortgage with bad credit, even if you don’t want to go with one of the above government-backed options. Consider saving up for a larger down payment. A larger down payment reduces the amount you need to borrow and increases your likelihood of getting approved for a mortgage. 

You may also be able to avoid the need for Private Mortgage Insurance with a higher down payment. Bypassing the need for PMI can easily save you $1,000 per year or more. It also frees up more money so you can pay down other debts, which can improve your credit.

Know Your Credit Score

If you’re thinking about trying to buy a home in the near future, the first step you should take is finding out where your credit stands. Begin by looking at your current credit reports and carefully reviewing them. Specifically, be on the lookout for any mistakes or errors on your report.

If you notice something incorrect on your report, you can file a dispute—most credit bureaus let you file a dispute online. You should also take the time to calculate how much of a mortgage you can reasonably afford before applying for one.

If you’re not sure what your credit score is, you can see your credit score for free on Credit.com. You also get a free credit report card that shows you ways to improve your credit score in each of the five areas that factor into how your score is calculated.

For even more information about where your credit stands, consider signing up for ExtraCredit®. You’ll get access to 28 of your FICO® scores, including the type of scores used by lenders to evaluate you as a mortgage borrower. 

Once you know where you stand with your credit score and have done what you can to improve it, you can start shopping for mortgage rates and loans.

Source: credit.com