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Finding Down Payment Money for Your Home

August 6, 2019 by cdiez Leave a Comment

For my family, down payment and closing costs were the toughest part of owning our next home. Making the mortgage payment was not an issue. Having the money to get started and be able to look for homes with confidence and loan in hand were a challenge. We found our help through family. That was a good day.

David Reed helps us out with more ways to find a down payment for your home. It may be time for you to stop renting. Take a read and see.

One of the biggest challenges, if not the biggest challenge, is coming up with the money for a down payment on a home. Even if someone is taking advantage of the new conventional 3.0 percent down program or the FHA mortgage, most every loan requires some sort of a down payment. While 3.0 percent doesn’t sound like a whole lot, if you’re buying your first home it usually is. On a $250,000 home, that comes out to $7,500. That’s not even mentioning closing costs. But there are sources for down payment funds that might sometimes be overlooked.

The Bank.

Okay, this is the obvious source. From a checking or a savings account, accessing readily available cash from a bank account is the most common. Consumers can save up a little each month until the minimum amount of funds needed have accrued. The lender will ask for copies of the most recent bank statements showing available funds as well as documenting the source of those funds. Most often the deposits are from an employer via direct deposit. Self-employed borrowers who do not receive a regular paycheck on the 1st and 15th will be asked to provide business bank statements as well.

A Gift.

There are those fortunate few who do receive a financial gift from a family member. Gift funds must also be tracked to make sure the funds are coming from an acceptable source. Gift funds can come from a family member, relative, or someone in a committed relationship. Lenders want to make sure the gift funds aren’t a loan that must be paid back at some point in the future. There needs to be a signed “gift letter” included with the loan file stating the amount of the gift, the donor’s name and where the funds are coming from. Lenders won’t ask for bank statements from the donor but do want to know the funds came from an account in the donor’s name.

A Retirement Account.

If someone has a retirement account with an employer such as a 401(k), that person can take out a loan against the fund. This is allowable per lending guidelines but is also subject to the employer’s approval. Most retirement funds allow for someone to borrow up to one-half of the employee’s vested balance in the account. With an IRA, first time buyers can withdraw up to $10,000 without penalty. The withdrawal will still be subject to any income tax due.

An Appraisable Asset.

If someone owns something that can be appraised by an independent third party, the proceeds when selling that asset are an acceptable source. Selling an automobile is acceptable, for instance, because it has an appraised value. Even a highly prized baseball card is an appraisable asset. It’s important to document the transaction from the initial sale to the deposit in the account.

A Down Payment Assistance Program.

Down payment assistance programs are typically overseen and/or issued by a county or state agency. Such programs typically require the borrowers’ gross monthly income to not exceed certain limits and are often available to first-time buyers. These programs can also be geographically targeted to help low to moderate-income communities flourish. Down payment assistance can come in the form of a grant, which means there is no repayment required or a loan which can be forgiven after living in the property for a certain period of time, typically three years or more.

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Purify the Air, Drown out Traffic, and Reduce Stress, All by Adding a Fountain

June 28, 2019 by cdiez Leave a Comment

Let’s face it. The steady sound of running water can be quite relaxing. Jaymi Naciri gives us the 411 on the advantages of adding a fountain to our yard.

We just got back from a lovely vacation to Costa Rica, and, truth be told, we’re already looking to go back. Being on vacation in such a tranquil environment is a pleasure, and coming back to “real life” is…well…all too real.

Until the day comes when we can surround ourselves with hammocks and tropical flora and wild monkeys and Pina Coladas on a permanent basis, we’re on a quest to make our home environment as peaceful as possible. And today we’ve got fountains on the brain.

While fountains are super pretty to look at, there are a number of additional advantages to adding one to your home. Here are a few reasons why you need one immediately.

They can help reduce stress.

Sitting outside watching the fountain bubble and flow is naturally calming. Bring it inside and you’ll get an extra dose of relaxation-inducing properties.

“How exactly do fountains decrease stress? Because not only are you providing soothing sounds of water flow, but you are also filling the air with negative ions, which can help to improve a person’s mood and energy,” said Kinetic Fountains. “Many fountain users report that simply installing a fountain nearby helps them to attain peace of mind, calmness and a certain ‘serene’ feeling.”

They can help drown out the sound of traffic.

If you live on a busy street or have other environmental noises that detract from your happiness or peacefulness, a fountain is a great solution. “You will be amazed at how even a soft flowing water sound can drown out other sounds around you such as traffic, voices in the next room, that dog that always barks at the same time every night and the neighbor in the upstairs apartment who walks loud,” said Serenity Health.

They improve the ambiance.

“An outdoor water fountain can turn any backyard into an oasis,” said Good Changes Now.

They can purify the air.

Add a fountain to your indoor space and it can work to improve the air quality. “In today’s electronic world there are many gadgets that emit negative ions in our homes and offices,” said Serenity Health. “Indoor water fountains can improve the air in your home with negative ions, reducing air pollution. Dust is attracted by the negative ions so your water fountain is actively working to purify the air. The continuous moving water in a fountain will not only relax you with its water sounds but will also rejuvenate you with negative ions.”

They are natural humidifiers.

Let’s face it. Humidifiers are ugly and loud, and can stand out in a room for all the wrong reasons. But, “Dry environments are a catalyst for poor health and irritating for those suffering from dry skin conditions,” said Water Gallery. A fountain makes a great—and much better looking—substitute.

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Save or Splurge? Where You Can Scrimp

June 17, 2019 by cdiez Leave a Comment

Once again Jaymi Naciri writing for Realty Times, has come with something new to keep us thinking about the best ways to spend or scrimp on our home.

Saving money is great. But saving money can also prove problematic. While a piece of furniture that’s not used a lot or a knickknack that is not prominently displayed might be fine, you want to be careful when pinching pennies if it means compromising on quality.

Furniture

This is a mixed bag. You can get away with an inexpensive coffee table, and you may be able to score a killer deal on a dining table that looks far more expensive than it is. But when it comes to upholstery, proceed with caution—especially with large pieces. Cheap textiles can pill, rip, wear out easily, and stain permanently. Plus, the material is often scratchy and uncomfortable.

“The sofa is one of the most significant items you’ll ever buy for your home. It takes up a lot of visual space, it’s important for comfort purposes, and it’s something you could have for two or even three decades,” said The Spruce. “Look for something made with high-quality materials such as kiln-dried hardwood and eight-way hand-tied spring construction, and purchase a classic style so that over the years it can be recovered if you want to update the fabric and give it a different look. Remember the rule that a high-quality sofa should last around 25 years while one of average quality should last about 10.”

Art

Many designers will tell you that money is no object when it comes to art. “Unlike a rug that may get dirty in a couple years or a glass that could end up breaking at your next dinner party, the art you invest in is likely to stay with you for many years, or maybe even a lifetime,” said Real Simple. “The key is to take your time finding art you love, that you’ll want to spend years living with, and that fits your style.”

We agree with all of that, except for the “need to splurge” part. It’s gonna be awhile before we’re playing with Picasso money. In the meantime, we love finding great new resources to buy inexpensive art—especially those that allow us to support emerging artists instead of buying stuff that’s mass-produced. From Society6 to Minted to to Etsy, there are a number of places you can find great stuff without a great expense.

Flooring

Skimp out on your flooring and you might find yourself having to redo it soon—or living with the consequences of a poor choice. Everything from a wood product that is made too thin, and therefore is damaged easily, to poor adhesive, to carpet that doesn’t have the quality to stand up to kids, pets, or everyday use can cause problems sooner than you may expect.

Rugs

“One of the best items to buy cheap is an area rug, Gen Sohr, one half of the husband-and-wife team behind Pencil & Paper Co., a Nashville-based interior design firm, said to Real Simple. “I think there are so many wonderful area rug options that are a complete steal. And really who wants to break the bank on something that’s going to eventually get soiled and need to be replaced?” she says. For an option that’s both affordable and durable, she recommends a natural sisal rug, which also hides the appearance of dirt. A flatweave wool rug is another popular option, and Sohr recommends finding deals on Overstock.com or Rugs USA.”

Mattresses

It can be tempting to go cheap on a mattress simply because it so expensive. But, if you really spend a good third of your life in bed, it’s worth it to pay for quality. If you can’t pay outright, it’s usually possible to get a zero-interest payment plan from a mattress stores if you have decent credit.

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2019’s Housing Market Is Likely to Be Stronger Than We Thought

May 10, 2019 by cdiez Leave a Comment

Clare Trepasso writing for Realtor.com has insight on what will be a great housing market for the rest of 2019.

Despite a real estate slowdown gripping the nation, this year’s housing market is expected to be busier than realtor.com® economists originally predicted late last year. That means more home sales—and higher prices—are on the way.

The anticipated uptick in activity is due to lower mortgage rates, which make homes more affordable for buyers. The economic team expected rates to climb to 5.5% in 2019, but instead, they have hovered around 4%. (They were 4.17% on 30-year, fixed-rate mortgages as of April 18, according to Freddie Mac data.) Economists say rates are now likely to rise a little to 4.5%, still well below what buyers were dreading.

However, it’ll be nothing like the feeding frenzy of recent years.

“It’s still going to be a lukewarm year for the housing market,” says Chief Economist Danielle Hale of realtor.com. “We’re going to see higher prices and slightly higher home sales than we expected. But home sales are still going to decline slightly as a result of the housing slowdown. There’s a gap between what sellers are looking for and buyers are hoping to pay.”

The downside for buyers—and upside for sellers—is that prices are expected to rise more than Hale’s team originally forecast, going up 2.9% in 2019 instead of 2.2%. That’s because the swelling ranks of buyers motivated by those lower mortgage rates will increase demand—and therefore prices.

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First Time Homebuyers are Doing Alright!

April 9, 2019 by cdiez Leave a Comment

Andrea Riquier from Real Estate News gives us a fresh update on first-time homebuyers.

How many first-time homebuyers are there in the housing market?

That’s an important question. A smaller share of first-timers suggests that the market may be too competitive or too expensive – and ultimately not very inclusive. A bigger share suggests market conditions may be a bit easier, and that more Americans are getting a shot at attaining upward mobility.

But it is surprisingly difficult to pin down exactly how many home purchases go to first-timers, and a new set of research reports from the New York Fed attempts to correct that.

The National Association of Realtors, the trade group that’s responsible for what may be the best-known measurements of the issue, publishes an annual survey of characteristics of home buyers and sellers. NAR conducts that survey on a monthly basis and those results are tracked in their existing-home sales release.

Another measure comes from the mortgage industry. Within the mounds of paperwork any borrower must fill out, there’s one form known as the Uniform Residential Loan Application. It asks whether the borrower has had “an ownership interest in a property in the last three years.”

The inclusion of that question in the application process dates back to 1992 when Congress passed legislation known as the Federal Housing Enterprises Financial Safety and Soundness Act. The legislation established a new regulator for Fannie Mae and Freddie Mac, and also set out targets for the two mortgage giants to ensure they were serving all would-be home buyers equally and fairly.

Many analysts who focus on the role of Fannie and Freddie in contributing to the housing bubble of the last decade point to the affordable housing goals of the 1992 legislation as the beginning of that slippery slope. Other analysts, of course, focus more on the role of lenders or believe that there’s blame to go around.

Putting that thorny question to the side for a moment, the historic accident of the URLA’s treatment of a “first-time buyer” as someone who hasn’t owned property within the past three years is still with us.

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Do you Paint your own Kitchen Cabinets or Pay the Professional?

April 5, 2019 by cdiez Leave a Comment

Jaymi Naciri of Realty Times poses the answer to the question of painting your own kitchen cabinets?

Thinking of painting your own kitchen cabinets? You can find dozens—hundreds even—of tutorials and tip lists to show you how. They’ll list out the supplies needed and show you the proper techniques for the best outcome. And many of them even get real about just how intensive and interminable the process can be.

Preparation is key when painting your cabinets, and the number of steps you’ll need to follow to achieve a quality finish can seem impossible. You’ll want to remove the doors, drawer fronts, and hardware. Fill in any holes and smooth out any gouges. Degrease, sand, vacuum, wipe, sand some more, vacuum some more, wipe some more. And maybe then you’ll finally be ready for priming—but not painting on the actual color, because that comes after priming.

Frankly, every step is important, and if you miss one, you could end up with a result you’re unhappy with, or a finish that doesn’t hold up. If you’re the type who isn’t likely to finish what you’ve started, perhaps you shouldn’t embark on this paint-your-own adventure. Your old, dated cabinets are still better than half-old-and-dated, half-done cabinets. But if you still want to go for it, at least be prepared for a few realities:

You’re never going to get a look as good as the professionals

You may come close, and you may fool your friends, but there’s a reason you pay professionals a couple to several thousand dollars for something verging on perfection.

Your arms will hate you

Which is not such a bad thing, really. You can skip a few “arm days” at the gym if you really put your effort into it.

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