There are quite a few available options out there to purchase a home in the least expensive way. Isn’t that what we all want, anyway? As you likely already know, the housing market is on fire right now! With that being said, it is unfortunate that cheap houses are not readily available like they once were. In order to embrace this changing time, we have some ideas to share with you as to how you can find cash for a down payment and closing cost if you do not have enough saved up. There are even some ways you can finagle to have very little out of pocket expense.

If you are eligible for a VA loan or USDA loan, there will be no down payment required. The requirements for both of these loans are very specific so before you get your hopes up, we recommend you find out if you qualify and what is entailed with them.

If you do not qualify for these loans, there are other loans out there that have a low down-payment mortgage. These down payments can be as low as 3% or 3.5% of the purchase price of the home. If your credit score is not substantial, do not be discouraged as you may still qualify! There are programs available where you can qualify for a grant or loan to pay for your upfront costs. Also, if you are gifted money toward a down payment from a family member, you will save a lot of money as well. (It must indeed be a gift, though…no hidden agenda of it actually be a loan as the giver must write a letter saying it is indeed a gift with no strings attached.)

Some people also get the seller or even the lender to pay for any closing costs. You really have to know what you are doing to make this happen. We would be happy to help if this is an area you might wish to pursue.

No matter which option you choose, if you do not have funds for a down payment or closing cost, do not worry…there are possibilities out there. You may just have to get a little creative!

You may have heard of a cash-out refinance lately, as a great number of people are doing it when they need to borrow a lot of money. However, this only is an option if someone has a lot of home equity available to them. A cash-out refinance is when you take a loan out on the value of your home. This type of loan usually has a lower interest rate than other loans since your house is used as collateral.

If you decide to do a cash-out refinance, you have the ability to decrease the loan term or even change the type of loan program you are using. You also do not need to let anyone know what you are doing with the funds you receive – they can go into other areas of investment or even put into an emergency fund if needed. The funds can also be used for home improvements which would increase the value of the home when/if you decide to sell. You may wind up earning more money by the sale of your home.

Keep in mind that a cash-out refinance really only makes sense if you need cash for something and there would be a benefit for you in refinancing the loan you currently have. Keep in mind that when you do a cash-out refinance, you will have to pay a closing cost. Make sure the money would make sense to you before deciding. The term of your mortgage would also start over. It is like you are purchasing your home for the first time – so make sure you look at it in the manner.

You also want to consider the potential that mortgage rates may increase, which might have an effect on your final decision. It could also decrease again – but more than likely that will not happen.

If you need help figuring out if this option is right for you, we are here to answer any questions you might have!

There are United States Department of Agriculture (USDA) construction loan options available where you can purchase your own land and build your own home on it. This type of loan can even have your long-term mortgage wrapped in it as well. That is a land, build out, and mortgage wrapped into one loan! This type of loan does not require any type of down payment, either. There is also only one set of closing costs instead of three. Unfortunately, these types of loans can be difficult to find as there are a lot of rules and requirements involved and particular eligibility requirements as well.

Like all other ares of life and important decisions that need to be made, make sure you look into all available options to be sure you find the right option that fits your needs. There may be other loan options that are easier to obtain since they have less requirements.

The fact that you can obtain 100% financing for this type of loan is attractive to many people – this even includes the downpayment…it is not required! You are also not required to make payments on the home during construction.

However, there are some drawbacks to this type of loan. Starting with the fact that it can be difficult to find…patience is a must when looking into this type of loan! There are many parties involved so if you have a deadline, you may find some difficulty. It is also likely that the interest rate will be higher than other loan options. (Keep in mind that it is possible you will not have this interest rate forever though!)

We wanted to make sure you were aware of this type of opportunity that may be available to you. It may not work for you or be beneficial – but at least you are aware this opportunity may be out there for you.

Refinancing your home can be a positive move for many people. Refinancing your home before you sell it can be a great move as well! As long as your home is not listed and on the market yet, you will likely have the ability to refinance. One of the reasons some people like to refinance their home before selling it is so that they can take out some home equity for repairs that need to be made before putting the home on the market.

Keep in mind that there are some clauses and rules you should look out for if you choose to refinance your home and then sell it. For example, some refinance agreements do not allow you to sell your home six to twelve months after you refinance. Each agreement is different so be sure to read the fine print! Some agreements may not even have this clause. Some agreements also have a prepayment penalty. This is something else we recommend you look out for in the fine print.

Another important thing to note is that refinancing is not free of charge. It does indeed cost money. You will want to make sure you do the math and make sure you will not be spending more money on refinancing than the profit of selling your home.

One of the reasons refinancing has been such a hot topic lately is because the refinancing rates are at a historic low. (Just like interest rates.)

If you are not sure what the right move is for you, please give us a call and we will go over all of your options. And as with making any important decision, writing out a pro/con list will be very helpful to you. Also talking to someone who has refinanced is a good idea as well!

For some people, now is a great time to buy a home. The home buying market right now is not normal – it is a great time to buy! Mortgage rates are consistently at a record low. Due to the pandemic, many people are still working from home. This means that people can live where they want to with remote work. The downside is the obvious – it is difficult to purchase a home if you are unemployed.

Most people think that mortgage interest rates will continue being low for the next couple of years. Of course, anything can change in a moments notice, but all things point to low interest rates. The market is very competitive right now as low interest rates help people purchase more expensive homes. Getting prequalified for a loan may help you stay above the competition.

Having stable employment and stable income are two of the main checks to check off of your checklist if you are contemplating making the leap. If your employment was affected due to the pandemic, it may be more difficult for you to get a mortgage. Although, having an above average credit score can help.

Do not forget that you also need to be sure you have enough funds to afford not only a downpayment, but closing costs as well. These types of costs are often forgotten about. But they are important to remember and keep in mind as they often add up.

As mentioned before, many people are purchasing homes without seeing them in person. This has always been done but due to the affairs of the world, it is occurring even more often lately. This can be a huge benefit to those who may want to relocate somewhere on a whim due to transitioning to a remote job.

No matter the reason fo wanting to purchase a home in 2021, it is a great time to make the leap!

We are hearing from more and more people who are purchasing a home without looking at it in person. Supply and demand is talking right now! We have also heard about a number of bidding wars on homes that are going on the market. If you are aggressively hunting for a home, purchasing a home without seeing it in person might be a good tactic.

Most people who buy a home in a sight unseen type of manner are definitely looking at photographs and videos before making their final decision. Some people will have friends or family look at the home for them in person as well.

Although the affairs of 2020 were not normal by any means, 63% of those who purchased a home did not view it in person. The pandemic is one of the main reasons people are purchasing sight unseen – but not the only reason. The current increase in supply and demand is another huge reason.

With todays technology, photographs, 360 degree video tours, and FaceTimes provide quality images of the home. Although you will not physically be in the home, you will be able to get a very reliable idea of what the home is like.

Having a home inspection is always recommended, but it is definitely recommended in these sight unseen purchases. The home inspections is also a type of protection for you on the off chance there are more issues with the home than you realized.

We would also recommend using your real estate agent as your representative. If there are certain parts of the home that may be questionable for you, be honest with the agent and have them look into the situations further for you.

No matter what your reason is for wanting to purchase a home sight unseen, you are not the only one!

According to a 2020 Gallup report, there are about 44 million Americans who are self-employed. This number includes freelancers and contract workers. It is quite possible that due to the state of the world in the past year, that this number increases for 2021. Since this number is so high, there are a number of special mortgage programs that exist to help these individuals purchase a home or refinance their current home.

In order to qualify for a home loan, you need proof of at least two years of income. For some individuals, this may be difficult – especially for someone who only has one year of income as a self-employed individual behind them. Bank statement loans are an option for these individuals as neither a W2, nor past year’s tax returns are required. For a bank statement loan options, an underwriter will verify your monthly income by looking at your deposits from your recent bank statements. They will need a minimum of 12-24 months of bank statements, along with other required documentation.

Besides bank statements, you will also need to provide a significant down payment, prove you have savings, a good credit score, a debt-to-income ratio below 55%, a profit and loss statement, and a business license. The business license is only required if it is something needed for your line of work. You will also need a letter for either your accountant or a licensed tax professional that confirms you have filed your taxes properly while being self-employed.

Keep in mind that just because you are self-employed, does not mean this is your only option for a mortgage loan. You can apply just like someone who has a W2. Many self employed individuals tend to write a lot of items off for tax purposes – which is not helpful when applying for a mortgage.

If you fall in this category, we would be happy to help you!

As you likely already know, there are a number of scams going on right now. You probably get daily phone calls from a number of different scam artists. Right now, there are a number of VA loan refinance scams happening. We want to make sure you are aware of them so you can pass it on to others – we do not want anyone falling for it.

Unfortunately, veteran homeowners are targeted frequently by refinancing scams. VA loan guidelines are typically more lenient – so it is easier for lenders to make money fairly quickly. If you are not looking for refinancing offers, be very careful of any offers that might come your way. Ones that are unsolicited need to be taken a closer look at.

If any offers come your way that indicate a low interest rate and no specific terms, something is likely missing from the equation. The monthly payments may be astronomical or the loan cost may be higher than what it should be.

There are many ways deception can find its way in these types of offers. If you get an offer and you are curious about it, be sure to find out: the annual percentage rate, the loan period, the type of mortgage, and any mortgage points that are included on the advertised rate. Keep in mind that you have to apply with the mortgage company to get a custom quote that is tailored to what you quality for. Just because a rate is advertised, it does not mean it applies to you.

Something else to keep your eyes open for is any offers to skip mortgage payments. The Department of Veterans Affairs prohibits lenders from advertising that mortgage payments can be skipped during refinancing. We recommend if you see a company advertising this, it is likely a company you want to avoid.

There are even more warnings that you should be aware of. We would be happy to discuss them further with you!

With the influx of the “skoolie,” tiny house, and RV trend, manufactured homes are starting to get all eyes on them, too. Some people cannot afford the manufactured home outright and need to look into some sort of financing. Before you decide to take the leap, we would suggest you take a look at the regulations where you live. The manufactured home may need to be converted from being personal property to being real property so you can obtain a mortgage. If you want to get a mortgage on a manufactured home, you need to treat it just like a regular home – in the sense of having to pay property taxes, etc. There are other requirements that may play a part, too. For example, the type, age, and location of the manufactured home.

Something else to keep in mind is that there is a difference between a mobile, modular, and manufactured home. It can be confusing to some people. But if you want to have a mortgage on it, it is very important to know the difference. A manufactured home is a home that is built on an off-site location and then permanently installed at your location of choice. Your location of choice can be piece of property that is owned by the buyer. This would make your manufactured home eligible for financing. If you put the home on a leased lot, the home would merely be personal property. If it is considered personal property, it would not be eligible for a mortgage.

There are a handful of other requirements to finance a manufactured home. A very important requirement is that all building standards and rules are up to code. The home must also be build after June 15, 1976 and not have any axles, wheels, or hitches on it. Depending where you live, there is usually a minimum size of the home. You would have to check with the local building department to find out what is acceptable.

If you are seriously considering the manufactured home route, we highly recommend you speaking with your local building department and other authorities in your area if you are looking to finance.

No matter what is going on in the world, the holiday time is always a very special and wonderful time of the year! You may or may not have house guests this year for the holidays. If you do, we have some ideas for you to help prepare your home to be extra cozy and comfortable for your house guests.

To begin with, this is incredibly obvious and you will likely roll your eyes that this is being mentioned, but, make sure you clean your home! A deep clean would be best and very much appreciated by your houseguest. Keep things clean throughout your guests stay would be nice, too. If you have a lot of items around your home that may seem like clutter, free the space up.

It would be nice to decorate a little bit as well. You do not have to go all out or do anything too much, but something little and tasteful will make the home very comfortable and inviting to your guests. You could even do little things like have flowers out around the house as well.

It is always a good idea to have a stocked pantry for your guests! Again, you do not have to go completely out of your way to stock it, but having a few snacks available for them would be very nice and thoughtful. This will make your guests feel welcome and like they are at home.

If you want to make the stay even extra special, you could have a welcome basket for them upon arrival. You could include specific items that your guest would like or warm slippers or a warm blanket for them to use during their stay. Even something little will make them feel very comfortable and mean a lot to them.

Do not forget what is the most important out of your house guests – spending time with them! Make your time special and meaningful.