Blog — Page 680 of 918 — First Rate Financial Group

23

Mar

Home Mortgage Tips

Is It Still Possible to Get a Mortgage With Zero Down? Yes – and Here’s How

Is It Still Possible to Get a Mortgage With Zero Down? Yes - and Here's How When it comes to investing in a mortgage, the down payment is key in making your investment a reality and proving to lenders that you’re a safe bet. However, while most opportunities for putting zero down on a home have disappeared since the recession, there are still a few ways to buy without putting money down. If you’re currently weighing your options, here’s what you need to know if you don’t have a down payment ready.

Loan Programs With No Down Payment

There are still a number of zero down loan programs for those who qualify. Veterans and families of veterans can often qualify for a VA loan if they prove military service. The United States Department of Agriculture also offers the USDA Rural Development Housing loan, which is designed primarily for low-income buyers looking at homes in rural locations.

What Are The Requirements?

The requirements to get a zero-down loan vary, but because they involve a more significant financial risk for the lender, there are often many restrictions. In many cases, the homebuyer will be required to prove that they have the money to re-pay their loan and they will also have to have a good credit history. As well, because of the convenience of no money down, the homebuyer will likely be paying a higher interest rate than they would if they provided a down payment.

Should You Invest In Zero Down?

The idea of not having to put money down can be very enticing for many homebuyers, but this means that you will be paying a higher monthly payment and have no equity in your home to start out. If you are set on buying a home in the near future but don’t have the money for a down payment, you may want to look into these or other low down payment loan programs. It may also be worth holding off until you’ve saved up as this can be a more financially sound decision for your future.

There are a number of benefits to not putting money down on your home and getting into the real estate market more quickly, but it’s important to consider what’s financially beneficial for you before choosing a zero-down option. If you’re currently on the market for a home, contact one of our mortgage professionals for more information.

22

Mar

By support

Home Buyer Tips

Real Estate Investment: Three Telltale Signs You’re Not Cut Out to Be a Landlord

Real Estate Investment: Three Telltale Signs You're Not Cut Out to Be a Landlord The idea of purchasing a property and having renters can be an exciting business venture that offers lucrative financial rewards. However, there’s a lot involved in being a successful landlord and it’s important to be aware of what’s required before making the commitment. Whether you’re investing in one rental property or five, here are some questions you should ask yourself before getting involved.

Can You Do-It-Yourself?

There’s a lot more to being a landlord than taking the rental check, and one of these things is being there for the tenant when push comes to shove. If there are issues with the heating or the fridge breaks down, you’re going to be the one who has to facilitate or complete the repair, so you’ll need to have the wherewithal to fix problems effectively. While there are many situations where a repairperson can help, having some DIY skills goes a long way towards turning a better profit.

Do You Have The Time?

Weeks and even months may go by where your tenant requires little to nothing from you, but if you own an older property or have several renters, even maintaining the place can get to be quite a bit of a chore. It can be a good expenditure to have a contractor take care of these issues, but you’ll still have to use your time to find the right person and oversee the budget. If you already have a pretty full schedule, being a landlord will add a lot more to the pile.

Can You Deal With The Risk?

It can be easy to turn a profit if you have a renter, but if you happen to own property in a vacation area or a community on a downturn, it may be more difficult to find renters consistently. There may be periods of time where tenants are scarce, and this means that you’ll have to be comfortable with financial instability in order to weather the storm. While the moneymaking months can make up for the off-season, if you doubt your ability to take on the financial risk, this may not be the right choice.

Being a landlord is a considerable responsibility that will require you to take on financial risk and serve your tenants effectively and efficiently.

21

Mar

By support

Home Mortgage Tips

Buying a New Home? Three Major Mortgage Missteps That You’ll Want to Avoid

Buying a New Home? Three Major Mortgage Missteps That You'll Want to Avoid Buying a home is one of the biggest financial investments you’ll make in your life, and it’s important to make sure that you’re doing what will be right for you down the road. If you’re trying to avoid buyer’s remorse and are wondering what major missteps to avoid when diving into the market, here are a few things you may want to watch out for.

Buying Too Much Home

It’s often the case that a homebuyer will get so excited about a home they see that they need to have it, but putting all of your money into one investment can be difficult to sustain over time. Instead of deciding to budget and buckle down on your expenditures, ensure that your monthly budget still leaves room in the event of other expenses or financial setbacks. This will ensure that your home stays as something you can enjoy that won’t become a burden.

Not Saving Up Enough

Many people want to invest in the market right away and get into a home, but it can often be worth the wait to save up so that you have at least 20% for a down payment. Putting 20% down on a house means that you won’t have to pay the added costs for Private Mortgage Insurance (PMI). Not only can this lead to smaller mortgage payments on a monthly basis, it also means that you’ll be able to pay off your mortgage loan that much more quickly.

Forgetting All The Associated Costs

It’s easy to be wooed by the cost of the monthly payment and think that it’s less expensive than you thought, but it’s important not to forget about all the other costs that go into owning a home. In addition to the closing costs of home ownership, there will also be property taxes, homeowner’s insurance and the maintenance fees required for home upkeep. If the monthly mortgage payment is already pushing it, costs like these can make your overall mortgage costs unmanageable.

There are many mistakes that can be made when it comes to purchasing a home, but by being aware of all of the costs of home ownership and taking the time to save up, you’ll be well on your way to owning a home that’s affordable and sustainable. If you’re getting prepared to delve into the real estate market, contact your trusted mortgage professionals for more information.