You may have heard of an FHA loan, and you probably weren’t sure if you were eligible for one. FHA loans are insured by the Federal Housing Administration which is a part of the United States Department of Housing and Urban Development.
If you have an FHA loan, it includes special mortgage insurance which helps to protect lenders from a loss should the loan be defaulted on.
Why An FHA Loan?
Due to the extra insurance lenders can offer these loans at an lower interest rates. These loans are also easier to qualify for. This makes affordable housing more accessible.
Things To Know About FHA Loans
The minimum credit score depends upon the type of loan that you need.
If you have a credit score of 580 or higher, you can provide a down payment as little as 3.5% with an FHA loan.
If your credit score is lower than 580, you are required to make a down payment of at least 10%.
If your score is lower than 500, you may be ineligible for an FHA loan all together.
FHA loans require a low down payment, which is why it is so enticing to buyers. While these types of loans may have limited availability, it’s good to do your research and see if you’re eligible.
Securing The Down Payment
Generally, buyers use their own savings to make a down payment on a home. Some states have government assistance programs that provide grants to be used for a down payment on a home.
Incentives With FHA Loans
The Federal Housing Administration has special provisions to allow sellers, builders and lenders to pay for some of the other costs incurred while buying a home including the closing costs, appraisal, credit report, or title expenses. This allows builders and sellers to provide incentives to entice buyers. This could have an effect on the interest rates associated with the loan if the lender agrees to pay these costs. Buyers can compare rates with different lenders for these purposes.
Mortgage Insurance And FHA Approved Lenders
The Federal Housing Administration is a provider of insurance and not a lender. You must be sure that you go with an FHA approved lender in order to get your loan in check. This is where it’s important to shop around for benefits, loan standards and rates.
The re are 2 required insurance premiums for FHA loans. The upfront premium is about 1.75% of the loan amount. This is paid at the time the loan is secured and can be financed as part of the loan amount. The second premium is the annual premium which is paid monthly and varies based on factors such as the length of the loan.
As you can see there’s many benefits for home buyers who need additional mortgage insurance and assistance in buying a home. Talk to your lender about how you can secure an FHA loan today and make buying a home a reality.
One problem that just about every homeowner faces is that of a lack of storage space. There’s plenty of hidden storage spaces in your home that you may be overlooking. Sometimes you have to get creative with the space that you do have. Here, we’ll give you some hints and idea as to where you can store things without moving anything in your home.
It’s very easy to extend the shelving in your home upward. If you look up, and there’s a lot of empty space, there’s a lot of possibilities for storage. You can add shelving directly to the wall or replace smaller shelving units with taller ones. Keep a step stool handy in order to reach any items that you may need access to.
The Stairs Go Further Than Up
If you have large spaces under staircases that you aren’t using, you’re missing out on major possibilities for storage. There are ways that you can make an under-the-stairs closet space. You can install shelving and fit a door over the area, completely transforming it. If a door won’t work for you, try a room screen or even a curtain. The best part is that anything you store in the space will be concealed and easily accessed.
Redesign Your Closet
Closets tend to become overfilled quickly. If you peer inside of the closet and see a bunch of wasted space, there's some opportunity for reorganization there. You can add shelving to the back of the closet for additional storage. You can also move rods and other shelving around in order to add more practical space to put things.
Look Under The Cabinets
There’s plenty of storage space under your cabinets. You should get stackable storage bins for under the bathroom sink, for example. It’s a great place to keep extra toothpaste, cleaning supplies, and soap. In the kitchen, be sure that every cabinet has a purpose. Use a spice rack to keep herbs and spices in order. You can use something as simple as a towel bar and install it on a cabinet door to organize pot lids.
Use Your Doors
There’s plenty of clever and inexpensive things that can be used to organize your things using closet and room doors. Everything from hanging baskets to shoe racks and bags can be easily installed just by hanging a unit over the door.
Find The Nooks
Just about everyone has a space in between their fridge and a wall. Depending upon how much space you actually have, you can do some incredible things with this space. Consider every option from a broom closet to a mini pantry that rolls out.
The most important part of organization and storage is that you find what you need easily. Use the above tips to create your own unique storage spaces within your home.
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Selling a home sometimes can be a hassle, particularly if a homebuyer wants to negotiate. Fortunately, expert real estate agents are happy to help you take the guesswork out of a home selling negotiation.
Ultimately, there are several reasons why you should consider hiring a real estate agent to handle a home selling negotiation, including:
1. A real estate agent boasts comprehensive experience with home selling negotiations.
Let's face it – a home selling negotiation can be stressful. But with a real estate agent at your disposal, you can receive plenty of guidance as you make the final push to sell your residence.
A real estate agent is a master of the art of negotiation. As such, he or she will help you seamlessly navigate a home selling negotiation.
Perhaps best of all, a real estate agent can help you up to date as a home selling negotiation approaches its conclusion. This housing market professional will even provide honest, unbiased recommendations, ensuring you can make informed decisions at each stage of a negotiation.
2. A real estate agent will ensure both you and a homebuyer get the best results possible.
As a home seller, your goal is to get the best price for your residence. Meanwhile, a homebuyer likely wants to purchase your residence at a price that suits his or her budget perfectly.
Finding common ground with a homebuyer may prove to be difficult. Lucky for you, a real estate agent will work with both a home seller and a homebuyer to guarantee both parties are satisfied with the end results of a negotiation.
A real estate agent will allocate the necessary time and resources to understand your home selling goals and help you plan accordingly.
Furthermore, this housing market professional will serve as a liaison between you and a homebuyer. He or she will work directly with you and a homebuyer to finalize a home sale agreement that meets the needs of both property seller and buyer.
3. A real estate agent will help you overcome any challenges during a home selling negotiation.
There is no need to let challenges arise during a home selling negotiation. Conversely, a real estate agent will help you identify any potential problems and mitigate such issues before they escalate.
For example, a homebuyer may make a variety of home improvement demands after a property inspection. And if a home seller refuses to complete these property improvements, a homebuyer may walk away from a home sale.
A real estate agent will help a home seller prep his or her house for a property inspection. Plus, he or she can provide details about a homebuyer's demands after a property inspection and help a home seller determine the best way to proceed.
Ready to finalize a home sale? Collaborate with a real estate agent – you'll be glad you did. A real estate agent will go above and beyond the call of duty to assist you during a home selling negotiation and ensure you can optimize the value of your house.
Ready to purchase your dream home? Before you finalize a home purchase, it may be worthwhile to schedule a home appraisal.
With a home appraisal, a property expert will examine a residence both inside and out. The home appraiser then will offer a property valuation.
In some instances, a home offer may be appraisal-contingent. And if the home appraisal valuation falls below the amount of a buyer's offer, the buyer may request a renegotiated price.
A home appraisal may prove to be an important part of the homebuying process. As such, it is paramount for homebuyers to understand what an appraisal is all about and determine whether to conduct an appraisal.
To better understand home appraisals, let's take a look at three home appraisal facts that every homebuyer needs to consider.
1. An appraiser's valuation is his or her opinion of what a residence is worth.
Typically, a home appraiser will use a broad assortment of housing market data as part of a home assessment. The appraiser also will look closely at a residence as part of the home evaluation process.
Although a home appraisal is based on housing market data and a home assessment, it is essential to note that a home valuation is an appraiser's opinion. Therefore, two home appraisers may examine the same housing market data and the same house and come up with two different home valuations.
2. The homes in a neighborhood may affect the valuation of a residence.
Believe it or not, a home's value may be impacted by those around it. Thus, if you intend to buy a home, it often pays to evaluate the neighborhood to better understand whether a house's value will decline, stay the same or increase over time.
Furthermore, what you spend to improve a house is unlikely to raise a house's value proportionately. And if you spend $20,000 on home improvements, there are no guarantees that these home improvements will add $20,000 to a home's valuation.
3. A home appraisal and a home inspection are two very different things.
A home inspection often is considered a must-have during the homebuying process, and perhaps it is easy to understand why.
During a home inspection, a property expert will ensure there are no structural issues with a home and identify any problem areas. Then, a homebuyer can move forward with a home purchase, rescind a home offer or submit a counter proposal based on a home inspection report.
On the other hand, a home appraisal enables a property expert to evaluate the house in its current state. A home appraiser will compare and contrast a home in relation to others in the area and offer a valuation.
If you need help determining whether to conduct a home appraisal, a real estate agent is happy to assist you. With a real estate agent at your side, you can determine whether to set up a home appraisal prior to finalizing a home purchase.