DIY Home Upgrades

DIY home upgrades 

You don’t need a huge budget to make noticeable improvements to your home. You can ride the waves of the real estate market and successfully navigate your way toward a good return, or you can take matters into your own hands by increasing the value of your home. To learn more about ways to increase your home’s value, visit The Housing Hour’s website.

Fortunately, there are many cheap ways to get your home in shape without putting a dent in your wallet. You can make your home cozy, more functional, or more spacious while adding value. A few smart moves can turn time into money in your pocket.

Elbow grease, or sweat equity can significantly add to your home’s value over the years. We’ve outlined a few simple projects that can you can do around your house. If you have the time, these projects can be very fun and beneficial. Checkout this podcast from The Housing Hour to hear about other budget friendly ways to add value to your home.

Painting

Think about a fresh interior or exterior paint job to add value to your home. There are many ways you can use paint to change the feel and appeal of your home. A fresh paintjob on the outside can increase curb appeal, and there are many options for interior paint designs. Use a sponge or a texture to add complexity and warmth to the room. There are so many things you can do with paint that are cheap and easy.

Enhance the Entry

Make your place stand out with an alluring entryway. Draw attention to your home with some extra curb appeal by enhancing your front door. There are many ways to make your entrance stand out. If you want to catch people’s eyes, consider having big hardware on your door, or other accessories. Pick a bold paint or finish color that contrasts well with the home and keep a clear path leading to your door.

Landscaping

One of the biggest factors of curb appeal is your yard. Having a few well-placed shrubs, and an attractive lawn can make all the difference. Not only will landscaping increase the value of your home, as the plants grow over time, so does the value of the property. Any real estate professional will tell you that a home for sale that has a 30 year old maple tree on the property, will have much more value than a home with a 3 year old maple tree on the property. If you aren’t a green thumb or don’t have the time to maintain your yard, consider hiring professional landscapers.

FHA Loans

FHA Mortgage Loans

In 1934, the Federal Housing Administration was created to bring strength to the US housing market and functions today in much the same fashion it did since its inception over 80 years ago. FHA mortgages are government insured loans that allow people to afford moderately priced houses with low down payments. This means that the loans will be insured, so that the lender can recoup any losses if the borrower unexpectedly defaults. Click here for more resources and information on government insured loans.

FHA loans can have down payments as low as 3.5% and have been even lower in recent times. HUD and the FHA have worked together to insure over 34 million home loans for multi-family construction projects since their partnership began. The FHA alone insures just under 5 million single family mortgage home loans, and 13,000 multifamily mortgage loans. Federal Housing Administration loans are great for single families who have less money for a down payment and/or imperfect credit.

Benefits of FHA Loans

From lower interest rates to lower down payments, millions of homebuyers are taking advantage of the opportunity to take out FHA loans.  FHA loans, USDA rural loans and VA loans boast the lowest down payments of all loans. Many homeowners are able to afford homes when they otherwise couldn't, due to strict credit guidelines or hefty down payments. FHA also allows borrowers to have less than perfect credit.  As long as you are three years out of foreclosure and your credit has been stable since then, you have a good chance at getting a loan provided everything else is in order.

Requirements for an FHA Loan

You should always do a little research on your own and consult a real estate professional to learn about which home loan programs you may qualify for. Since FHA mortgages are designed to help low to moderate income families afford homes, you must ask for an amount that falls within the maximum loan range. This amount varies depending on where the loan is being given out. Visit The Housing Hour for more advice on the maximum loan amounts in your area. There is no minimum credit score requirements for FHA mortgages, but you do need to be able to demonstrate the ability and to pay bills on time, and have no major credit problems in the past few years. Also, make sure your debt-to-income ratio is under 45% and have enough cash to make the 3.5% down payment.

The Benefits of Pre-Approval

What is Pre-Approval?

Lenders can give borrowers a pre-qualification letter, but most realtors suggest getting pre-approved for a loan before you even begin seriously shopping for a home. A pre-qualification letter will outline how much a lender thinks you can borrow based on your budget and credit profile. Pre-approval requires extensive documentation and verification by the lender to verify your financial status. Getting pre-approved shows you are serious, well-qualified, and can speed up the home buying process by helping you close quicker. Visit the Housing Hour to learn more about getting a pre-approval.

Prequalification vs Pre-Approval

It’s not hard to confuse pre-qualification with pre-approval. Many people interchange the terms, making it even more confusing. Pre-qualifying for a loan is a precursor to getting pre-approved. Pre-qualifying is more informal and not legally binding. If you are pre-approved, the lender has basically approved your loan, keeping in mind, your credit and financial situation remain the same or better as when applied.

Although this process may be time-consuming, by getting pre-approved, you can speed up the home buying process. You will have already completed two important steps in obtaining a home loan once you have gotten your pre-approval letter. You’ll have finished your credit check and all your documentation will be in place, speeding up the underwriting process once you make an offer on the house.

Advantages of Getting Pre-Approved

The advantages of getting pre-approved definitely outweigh the disadvantages if you are serious about finding a home. We have listed a few good reasons illustrating why getting pre-approved is a smart move. These advantages include knowing your loan amount and what you are able to afford, leverage for negotiating, saving time, and relieving added stress.

Pre-Approved Loan Amount

Obtaining a pre-approval letter from a lender will let you know the exact price range that you can afford to buy. Letting you know the loan amount you qualify for tells you what you can and can’t afford and will save time and money by narrowing down your options.

Leverage for Negotiating

Getting pre-approved lets sellers know you are serious about buying and have the capital to back up your intentions. Since the loan is all but approved, you can offer a price lower than the property is listed for. If someone offers more than you, but is not pre-approved, you still may have the advantage with your credible status as a home buyer.

Being Pre-Approved Saves Time

While the pre-approval process can be lengthy and in depth, at least you’ll have all the documentation you need to be in place for the underwriters to give your loan the go ahead. You can close faster on the home you want with your status as a pre-approved borrower.

Being Pre-Approved Relieves Stress 

Take a lot of the stress and headache out of shopping for a home by narrowing your options. This not only saves you time that could have been wasted shopping for homes outside of your price range, but it can save you time spent worrying about verifying your financial status for the home you want. Visit The Housing Hour to learn more about all things related to home ownership. There, you’ll find a treasure trove of helpful information and resources.

Fireproof Your Home

 

Fireproofing Your Home

According to the National Fire Protection Association , there were 3,420 deaths, and $5.5 billion dollars’ worth of fire-related damage in the year 2000. Luckily these figures have been declining steadily over the past 15 years, due to fire education and prevention. Sources of fire in the home can range from things such as BBQ grills, stoves, gas heaters, water heaters, candles, and other flammable items. Although no house is truly fireproof - because fire has so many common household uses - there are steps you can take to prevent fires. Fireproofing your home can be the deciding factor between life and death. Read further to learn how you can safeguard your house against potential fire damage.

Preventing Household Fires

Faulty wiring is one of the leading causes of household fires. Here are some basic steps you can take to make sure your wires and outlets are safe:

• Check all wires to make sure they are not frayed.
• Don’t pinch or pull on cords with furniture or rugs.
• Never overload your circuits. Be aware of how much power your system can handle, and don’t use too many extension cords.
• Use surge protectors to regulate the electricity of powerful devices, such as personal computers or TVs.
• Always keep a fire extinguisher within easy access, especially in the kitchen.
• Make sure not to keep any flammable plants near an outdoor barbecue.

Smoke Alarms

Smoke alarms are the first line of defense against fires. Smoke alarms can alert you if a fire is starting in another room, whether you are asleep, or in another part of the house. Smoke alarms, also known as smoke detectors, work by testing the air for gases and other particles produced by fire. Smoke alarms are a good choice because they are inexpensive, simple to install, and easy to maintain. Be careful when installing a smoke alarm in the kitchen, unless you want a 30 second alarm clock every time you cook.

Fire Extinguishers

We can see fire extinguishers everywhere; from the walls in churches, to the outsides of schools. Fire extinguishers are all around for a reason. If there is a flare up, it’s important to act fast. Fire extinguishers are one of the most important safety devices for preventing a fire that you can get. Every day in kitchens and small businesses around the country, fire extinguishers are used to quell small fires, and prevent disasters. Fire extinguishers are inexpensive, and very useful.

Reverse Mortgages

What is a Reverse Mortgage?

A reverse mortgage is a type of home loan that lets home owners convert some of the equity in their homes into cash. By taking out a reverse mortgage, the home owner is essentially taking out equity that they built from their investment, and turning it into spending money. There are three different types of reverse mortgages: Single Purpose Reverse Mortgages, Private Proprietary Reverse Mortgages, and Home Equity Conversion Mortgages. The most common of these, and the one that this article discusses, is the Home Equity Conversion Mortgage. These loans do not have to be repaid until the borrower no longer uses the home as their primary residence, or fail to satisfy the conditions of the loan.

Home Equity Conversion Mortgages (HECM) were created to help retired senior citizens who have limited income to use their equity to cover basic living and medical expenses. This is typically what borrowers spend their money on, but there are no requirements on how they should spend their loan. It’s called a “reverse mortgage” because the lender is making payments to the borrower instead of the other way around. To learn all you need to know about reverse mortgages among other things, check out this podcast from the housing hour.

 

Reverse Mortgage Qualifications?

To qualify for a reverse mortgage, you must be a homeowner who is at least 62 years of age, own your own home, and have a mortgage balance that is low enough to be paid off with the funds from the reverse mortgage loan. You must be using the home as your primary residence, and are required to stay current with all property taxes and insurance premiums. Before you make application for a reverse mortgage, you will need to obtain counseling from a qualified HECM counselor.

Benefits of a Reverse Mortgage

With a reverse mortgage loan, you may elect to receive tax free funds as long as you live in the home. You will not have to pay taxes on the money you receive on your HECM because the payments are based on your equity, not earned income.

Also you might want to add maintaining your home as a requirement in addition to living in the home as your primary residence and paying the taxes and insurance.

Give me a call if you have questions.

Insured by the US Federal Government

These loans are very secure and safe for lenders and borrowers. There is no risk of foreclosure for failure to make monthly loan payments because there are no monthly payments due by the borrower. Because the government insures these loans, there is no risk on the line of credit you choose for payment to be withdrawn. The government also guarantees that you receive all of your payments.

Debt Not Transferred to Loved Ones

As mentioned earlier, HECM loans are insured by the federal government's Department of Housing and Urban Development. If the homeowner passes away and the value of the home is priced higher than the amount of the loan, the remaining equity will be transferred to surviving heirs. Also, there will never be any debt passed onto your loved ones in the case you pass away because the value of the loan can never be greater than the value of the home. Visit The Housing Hour to find more resources on home loans and all things home-related.

Advantages of Homeownership

Homeownership

There are many advantages to owning your own home. For Americans, home ownership is a symbol for economic and financial success, as well as personal freedom. It’s been a time honored tradition to set down one’s roots and become a part of a community by owning property. Since the housing bubble burst, millions of Americans have wondered if owning a home is still as beneficial as it was before the housing crisis.

Recent spikes in foreclosure and home value depreciation have put doubts in the psyche of many potential homeowners. Despite these doubts, recent studies suggest that since 2013, the housing market has been making a comeback, and the benefits to owning a home still outweigh the drawbacks. With the gradual recovery of the market, buyers and sellers attitudes are changing, making owning a home as lucrative as ever. Check out The Housing Hour’s Homeownership Matters Series to get tips and other useful information on home ownership.

Benefits To Owning A Home

As a songwriter once said, “When you’re happy, good things happen to you.” Being a homeowner can bring a sense of fulfillment and security that is impossible to put a price on. It can be stressful to own a home, but anything worthwhile takes a bit of effort. Owning your own home can give you a sense of control and accomplishment that is just not possible with renting. There really is nothing like the stability and gratification that comes from turning hard work into a tangible equity. You are in control, and knowing that gives many homeowners a deep sense of satisfaction. To learn more, check out this podcast from The Housing Hour, where Dr. Kim Manturuk gives her expert opinion on the social benefits of owning a home.

Social Status To Homeownership

With your status as a homeowner, you become a vital part of your local community. Having a stable place in the community leads to more social opportunities and pull. Owning a home gives you a voice in the community, opening doors for participation in civil engagements and community events.

Building Home Equity

When you make payments on your home, you are essentially investing in yourself. You can build real equity and cultivate a successful financial future. Besides financial wealth, you will be growing relationships with members of your community, giving you more social capital as well.

Family Advantages To Homeownership

Good quality neighborhoods with high home ownership rates are often in the vicinity of better quality schools. This can lead to more educational opportunities and enhanced social capital. Your children will have the chance to grow up in a safe and nurturing environment, giving them the best chance possible to be all that they can be. Neighborhoods with high home ownership statistically have less crime and more socio-economic opportunities as well. Visit The Housing Hour’s website to learn more about the endless benefits of owning a home.

Buying vs Renting

Advantages to Buying a Home

There are different advantages and disadvantages for both renting and buying a home. What’s best for you depends on your personal and financial situation. Before buying a home, it’s important to understand the benefits and costs to such an important transaction.  Buying a home can enable the homeowner to build equity which is one of the main reasons they jump into the housing market.  However, the level of equity they build may be affected by the real estate market and economy.  Check out this episode of The Housing Hour, to get more in depth information and expert advice about mortgage lending.

Benefits to Owning a Home

• Tax Breaks. Owning a home can offer income tax benefits. Federal and state income taxes you pay when owning a home are fully deductible on your tax return. You can deduct your property taxes as well as mortgage interest.  If you choose to sell your home, the IRS will not apply a “capital gains” tax on the profits of the sale of your home if you meet certain requirements.  You may keep the first $250,000 of profit if you are single and the first $500,000 of profit if married.  Also, if you work from home and have a home office, you may be eligible to take deductions as well.
• Build Equity. Owning a home is a great way to build equity while you pay off the principal. Homes are regarded as safe investments when home values rise and your debt drops. According to NAR (National Association of Realtors), the national median home price has risen every year since 1968. Usually, the value of a home will appreciate along with the rate of inflation, with a couple of extra percentage points. If you intend to stay in your home for at least five to seven years, the cost of purchasing the home is usually offset by accrued equity and increased housing value. If the equity of your home increases 20 – 80 percent loan-to-value, you may borrow against the equity to pay off major purchases such as a second home, medical expenses, your child’s education, or an emergency. Also, another benefit includes that if interest rates drop, you may take advantage of lower rates if you choose to refinance.
• Freedom. If you own your home, you can choose how to make changes such as paint color, possible remodels, adding new features, or how to maintain the home. This can add financial freedom as well knowing you may have equity building with every passing year.

Many people may choose to rent because they don’t understand all the benefits of owning a home. In 2015, federal loan programs have made some dramatic changes making home ownership easier and more affordable than ever. There are various federal loan programs from state to state for potential home buyers, including USDA Rural Housing Loans and THDA loans. Why rent when you can make comparable payments on a home of your own? Read on to discover why many Americans are buying homes at an increasing rate.

• Increase Borrowing Power. For owners who decide to stay in their home for a long time, the equity built up on a home can be useful for many things. You can use it to secure a line of credit, which means you have more power to invest how you see fit. This means you have more cash available for big purchase or emergencies.
• Stability. If you get a home with a fixed rate mortgage, you can have the same payment amount for 30 years. Adjustable rate mortgages have a cap, so homeowners with these types of mortgages can figure out their maximum payment in advance. Owning a home also gives you more pull in your local community, since you’ll be a fixture in your neighborhood.
• More Control. You have more freedom to do as you wish with your home when you own it. You can enjoy the power to change anything you want without having to haggle with the landlord. Grow a beautiful garden or make any other permanent changes that you’d like while adding to your own investment. Visit The Housing Hour to get more tips and info on home ownership.