Last week we touched on the topic of seniors and retired people having the ability to qualify for mortgages, even if income is limited and they are on Social Security. There are many options available. We went through some options and ideas last week but some of you have asked for even more ideas. If you ask, we deliver! As you know, we are giving a very brief overview. Please get in touch with us if you would like to work with us one on one to discuss.

Fannie Mae has an option where someone can use their retirement assets to help them qualify for a mortgage. This can be 401(k)s or other types of retirement accounts. If they are using these accounts already, they must be able to prove that the income will be coming in for the next three years on a steady basis. If the person is not using the income, that amount can be included as a stream of income.

Freddie Mac also has some options available when someone has limited income but they may have substantial assets. These options make it possible for IRAs, 401(k)s, other retirement accounts, and money earned from a business sale to qualify for a mortgage. If it is decided to use these options, the borrower must be able to prove that there is no penalty to withdraw the money early.

Another option to qualify for a mortgage is to use investment funds. Most lenders will only use seventy percent of the value of these funds in an effort to qualify for a mortgage. So be sure to keep in mind that the full amount will not be used in the calculation.

We hope that we were able to give you more options and more ideas for helping a loved senior qualify for a mortgage!

There are many seniors and retirees who are taking out new home loans. One of the main reasons for this is the low interest rates and tax breaks that have been available lately. There are also many options available for those who are on just a Social Security income. Thanks to the Equal Credit Opportunity Act, lender do not have the ability to deny someone a loan or the opportunity to refinance a house due to age. This act means that anyone, at any age has the same chance to qualify. Seniors, however, may have to prove more than a younger person does. This has to do with providing proof of income – especially if there are various income sources the senior has.

As mentioned earlier, an income from Social Security or even long-term disability, can help a senior qualify for a mortgage. This type of income is not taxable. Since it is not taxable, the qualifying amount can be rounded up by ten to twenty five percent. This is huge! Be sure to ask your lender about other non-taxable income options as well. There are other non-taxable options other than just Social Security.

If a senior is having trouble qualifying for a mortgage, if they add a co-signer to your mortgage application, this can help significantly. This will be especially helpful if the co-signer has a significant income. Fannie Mae has even provided a new loan option specifically for co-signers being involved.

Seniors may also qualify for a property tax break. The rules and qualification of this depend on the state you are applying for a mortgage in. Each state is a little different. Be sure to get with your local tax authority or even financial planner to find this out.

If you need even more ideas for helping a senior in your life qualify for a mortgage, please let us know. There are other options and ideas available that we have not discussed yet.

Have you had your house appraised, whether you are buying, selling, or refinancing, and it appraised at a lot lower than you expected? That is very unfortunate if it happens. But this is okay! You do have some options, no matter what boat you are in. The appraised value of your home is very important as it affects quite a few things – and what it affects does depend on the type of loan you have. The loan-to-value ratio dictates how much the lender will finance. This ratio must stay within certain limits.

There are a few options as a buyer, if the the home you want appraises for less than what you are going to purchase it for. To start, you can renegotiate the price of the home. This is something that should be looked at from the start as it is only fair! You also have the option to cancel the contract if both the buyer and the seller cannot come up with some sort of agreement. Most contracts have an appraisal contingency in the off chance this type of situation happens. As a buyer, you want to make sure you have an appraisal contingency in your contract as it definitely has the ability to help you.

If you are the seller, you have a few options if your home appraises less than expected. To start, you may want to lower the price you are asking for. Potential buyers will not want to purchase a home for more than it is worth. You also have the ability to order another appraisal. But you do risk not getting the answer you are looking for. Since we are currently in a buyer’s market due to inventory being low, you do have that on your side!

One of the great things about this potentially happening is that you do have options! You are not stuck buying or selling the home if it appraises at lower than anticipated.

Have you heard of a “green mortgage” before? Well, if you have not, now you have! It is considered to be an energy efficient mortgage. It is a home loan for an environmentally-friendly home…that is, a home that meets energy-efficiency standards. You can even qualify for this type of mortgage if you are improving a home you currently own.

There are many reasons you may want to make these types of improvements in your home. One of the biggest reasons is that you will save money on energy costs. Okay, another reason is that you will be reducing adding pollution into the world. It has also been found that these types of homes are typically rated better – which means if you were to sell it in the future, you are adding value into your home.

Some of the newer homes that are available are already compliant according to Energy Star.  Energy Star is a program that is sponsored by the government. You may have seen their logo on lightbulbs.

All of the major home loan agencies offer an energy efficient mortgage program. Depending on the program, depends on the rules and guidelines for each. For the most part, the process is relatively similar. 

As mentioned earlier, you can save money with these energy efficient upgrades. It will depend on where you live and how much energy is there. In some reasons, the monthly savings may not be grand but when you add it up throughout the year, it may be a few hundred dollars! When making the decision, make sure you factor in the long-term savings.

Also, stay firm in not paying a higher mortgage rate just because you are purchasing an energy efficient home. That should not play a factor at all. As always, be sure you weigh both pros and cons into your final decision. 

Closing costs come as a huge surprise to some people – especially first time homebuyers. If you are saving for a down payment you may wind up dedicating a large chunk of what you saved to the closing cost. There are some grants and loans available that are dedicated to closing costs specifically. These grants and loans may be on the local, state, and even federal level. These grants and loans may be up to thousands of dollars!

We would recommend you ask your real estate agent or loan officer for what types of programs may be available in your area. Do not dismiss looking into these options – they are not for first time home buyers only. They are also not specific to low or moderate income buyers, either…especially in cities that are very expensive. 

You can also look at options at your Housing Finance Authority in your state. Through the Housing Finance Authority, the options are usually for first-time home buyers, but again, that is not always the case. And if that is how it is in your state, they may be able to give you other resources or places to take a look. Some of the fine print may also be that you have not own a property in the last three years. 

If you are unable to find any assistance, you may want to think about asking the seller if they would b willing to pay for some of the closing costs. This is actually a common practice. If this is what you wish to do, work with your real estate agent so they can negotiate – they may have experience in it as well.

Another option, which some do not like, is to have your lender add the closing cost into your loan. If you decide to do this, keep in mind that your interest rate will likely be higher. This option is known as lender credit.

We would be happy to help you explore these types of options if it is something you are wanting to explore!

Some people have been asking us if there was a “magic number” for how much income they need in order to buy a home. (Not a super expensive home – but an average, every day home.) According to the National Association of Realtors, the average cost of a house is close to $340,000. That can seem unrealistic and overwhelming for many people. 

We have some good news for you though! And it may ease some of your stress. If you have a great credit score, a minimum of 20% as a down payment, your income can be just about $46,000. If both your credit score and down payment is less, you will need more of an income.

Did you know that in just the first quarter of this year, the cost of a house has risen by 3.5%? And within the last year, it has risen 12.6%! Many people have been wanting to purchase a home – that is what has led to the increasing of prices. Another factor that has played into this is the fact that over the last couple of years, the interest rates have been the lowest in quite a long time.

There really is no minimum income requirement to purchase a home. Most mortgage loans are very flexible. So like we mentioned earlier, if your income is not very high, you can compensate in other ways. Having a debt-to-income ratio that is low, can play a part in affording a more expensive mortgage.

The loan program you decide to go with also plays a large part in what you will or will not be qualified for. We will be there for you every step of the way – this includes finding out which loan program would be the best fit for you. When you come to the initial meeting, bring all of your questions with you as well!

Did you know that there are many moving scams out there? It is a real thing! Unfortunately, we have heard from many of our clients that they have struggled with getting their belongings from a company that was suppose to help them move. We just want to spread the awareness and make sure you know that this is something to potentially look out for. Also, if you have a specific name of a company that you have had this type of problem with, please let us know so we can pass the information on to our clients.

We have heard stories like this…unless the client pays more money, the mover will not open the truck and you cannot get your belongings. It has been said that one in ten consumers fall for this type of scam, according to the Federal Motor Carrier Safety Administration. Wow…that is a lot of people! There is a way around this – make sure you have a contract written up and the terms are in writing! Be sure you have a copy of what both you and the company signed. And be sure that the contract is very specific and does not include a clause with any potential additional fees.

Speaking of hidden fees, this is very important to mention! There are scams out there were a breakdown of costs are not on an original quote. Before the move occurs, the company will send a new quote that includes costs that were not on the original quote. These types of fees may be: gas fees, assembly, disassembly, bulk items, supplies, storage fees, weight, etc.

We also want you to look out for quotes that seem too good to be true! If you get a quote from a company that does not seem right because it is so inexpensive, there is a reason to be concerned! After you have paid a deposit, there are some companies that will sell your information to another company.

We hope you have never been a victim of one of these types of scams! But now that you are aware of them and know what to look for, you should feel more safe and secure in choosing a moving company.

According to the National Association of Realtors’ 2021 Profile of Home Staging, the most popular room to stage is the master bedroom. The second most popular room to stage is the living room. This takes us to the third most popular room to stage – the kitchen! For some, that is where a whole lot of time is spent and a very important area for many families. Just like with any trend, they change with the times. This includes what is popular with kitchens.

If you want to update your kitchen, we have some ideas to share with you. This is especially important if you are in the process of selling your home. It will help make the kitchen more desirable for potential buyers.

To start with, take a look at the countertops! A simple idea which would give you more options for creativity, is to do with a simple countertop but spruce things up with a fun and vibrant backsplash! The opportunities are endless when it comes to backsplashes. If you want to take a different approach, marble countertops that are heavily veined and quartz countertops are both “in” right now.

This year, when it comes to colors in the kitchen, dark colors are popular, especially blacks. This includes black walls, cabinets, and other accents. The contrast helps to give the kitchen a more glamorous type of look.

Unique and special lighting can also have a profound effect on a kitchen. There are many different fun options to choose from – and many different places to accent. As of now, the globe shaped lighting and sphere shaped lighting are two very popular options. Either option will look classy.

The last idea we have for you as to how to show off your kitchen, is to show off your shelving! Instead of having a cupboard that is behind a door, show it off! This trend is to help you stop hiding behind a digital lifestyle and sharing decorations, art, books, etc. that are important to you and show others your personality a bit more.

Have you come across any other current kitchen trends that you have fallen in love with? We would love to share them with our readers!

Is your home considered a historic home? Or are you interested in purchasing a home that is considered to a historic home? Many people like to purchase and remodel historic homes for the vintage feel of the home. However, this can cost a pretty penny. There may also be some other red tape you have to cross. One of the positives is that there are some grants, loans, and even tax incentives that are available to restore historic homes. As with any program you have to apply for, some are more difficult to qualify for than others.

For the most part, historic home grants are usually not available to individual people, but rather nonprofit organizations or other types of groups. As an individual person, there may be some grants available from your county, state, or even national level. These grants are usually pretty competitive and require details from the homeowner as far as what they propose to get done.

Renovation loans are also available for historic homes, just like any other renovation. This loan may be part of your mortgage and backed by the federal government. This type of renovation loan is called a FHA 203k rehab loan – it is the most popular. Mortgage insurance is something you will have to have with this type of loan. However, you will be able to bundle everything together if you are purchasing the home for the first time. For example, you will be able to include both the cost of the home and the renovation into one loan. This will make it much easier and less confusing when it comes to the details and specifics of the loan.

Be sure to also take a look at any tax breaks you may be able to save on! There are quite a few tax break incentive options out there.

No matter which route you want to take, be sure you look into all options available and talk to someone qualified and knowledgeable about the subject matter. You would even recommend you speak to someone who has done it before so you can get an idea as to how the experience was for them.

Buying your first home can be stressful, especially when you do not know what to expect! Be sure you work with someone who helps you throughout the process and answers all of the questions you get along the way. To help alleviate some of your stress now, we will go over some basic requirements and things to think about when it comes to buying a home. Most of these requirements are fairly easy to meet – especially if you are able to prepare for them ahead of time.

To start with, having a decent credit score to qualify for a mortgage program is something that will be looked at. You do not necessarily have to have a high score, as all loan types have different requirements. Scores between 580 and 640 are average credit score minimums. It is possible that you qualify for a mortgage with a lower score, as there are other things that are taken into consideration as well.

Having a steady income and employment may be an obvious, but necessary mortgage requirement as well. What may not be as obvious is that most lenders want you to have the same employment for a minimum of two consecutive years. If you are self employed, make sure you are able to shower a consistent amount of income for two consecutive years as well. The income amount should be stable or increasing.

Another requirement is being sure you are able to make a minimum down payment. The down payment amount will depend on the final cost of the home. There are also some lenders and programs that do not require a down payment. With down payment costs, there are also closing costs! Be sure you are saving enough money for both.

Your debt-to-income ratio will also be looked at and a factor in qualifying for a mortgage. The ideal debt-to-income ratio is 36%-43% as it depends on the loan you decide to go with.

You will also need to supply documentation to your lender to purchase a home. This documentation includes, but may not be limited to: past tax returns, past paystubs, W-2s, employment verification letter, bank statements, other asset statements, identification, rental history, etc. If you are self employed you will need to provide a year-to-date profit and loss statement.

We hope that by laying this out for you, you will be less stressed and anxious when it comes to being a first time homeowner!