What Is an FHA Loan and How Can It Benefit You?
If you’re looking to buy a home, you might consider taking out an FHA loan. I’ll go over what an FHA loan is and why it might be a good option for you as a buyer. Thinking of selling? Get a free home valuationThinking of buying? Search all homes for sale on the MLS If you’re looking to buy a home, you’ve probably heard the term “FHA loan.” Today I’ll go over what an FHA loan is and how it can benefit you as a borrower. An FHA loan is a mortgage that is insured by the Federal Housing Commission that requires a lower down payment on the condition that buyers pay property mortgage insurance as a part of their monthly mortgage payment. The property mortgage insurance allows lenders to offer loans to borrowers at much more attractive interest rates with lower down payments. You can qualify for an FHA loan with a lower credit score as well. The minimum down payment on an FHA loan is 3.5%, but it can be as high as 5%. Borrowers can use their own savings, a gift, or a grant for their down payment. The FHA does allow borrowers to get assistance from their lender, the builder, or the seller to help with closing costs. Although, if the lender helps with closing costs, they typically charge a higher fee on the loan. The FHA is an insurer, not a lender, so it’s important to get your FHA loan from a qualified FHA lender. FHA loans also require a two-part mortgage insurance. The first part is paid at the close of escrow, which is equal to 1.75% of the purchase price and can be rolled into your loan. The second part is paid during the life of your loan. The FHA also has a special loan product for borrowers who are purchasing a private property that may need repairs called the 203K. The FHA is an insurer, not a lender, so it’s important to get your FHA loan from a qualified FHA lender. If you are looking to buy or sell a home, or if you have any other real-estate related questions, please don’t hesitate to give me a call or send me an email. I’m happy to help!
23 Feb 2017
What Should Homebuyers Look for When Buying a Home?
If you’re in the market to buy a new home, what are the important things you need to look for?Thinking of selling? Get a free home valuationThinking of buying? Search all homes for sale on the MLS If you’re a homebuyer out shopping for a new home, what should you look for in that home?First, you should keep the resale value of the home in mind, or the price and affordability for future buyers. You should then consider the neighborhood it’s located in and the size of the home.Next, look for a structurally sound home. Look at the “guts” of the home and not just the design or the materials used in the construction. Examine factors like the plumbing, the electrical framework, and how much life is left in the roof. And don’t forget to order a thorough home inspection.Hire a real estate agent that will help you know what you need to know. Also, consider what kinds of costly repairs may be required on the property and how that will play in negotiations. Look at the condition of the roof, the plumbing, the electrical system, the heating and air conditioning systems, etc.Finally, you need to hire a real estate agent that will show you what things you need to look for when buying a new home.If you have any questions about this topic or are in need of an agent to help you buy or sell real estate, please don’t hesitate to give me a call or shoot me an email. I’d be glad to help you.
13 Mar 2017
What You Need to Know About PACE & Hero Loans
Have you ever considered seeking PACE or Hero Program financing for your home? It's a great government incentive, but it's important to know the finer details before taking on this loan.Thinking of selling? Get a free home valuationThinking of buying? Search all homes for sale on the MLS Today I wanted to take a moment to talk about PACE loans—also known as Hero loans. PACE financing stands for 'property assessed clean energy' and provides local governments the opportunity to provide financing for homeowners that want to do projects that are either energy efficient, water efficient, or integrate renewable energy products into their home. In California, the Hero Program is the most well-known opportunity for homeowners to receive this type of financing. It's considered a tax lien in first position on the property, meaning upon the sale of the home, it will be paid prior to any other creditors involved in the property being paid. This even includes the lender on the home mortgage. “PACE financing lets local government loan money for energy-efficient home projects and features. ” This first position is important because the Federal Housing Financing Agency won't allow Freddie Mac and Fannie Mae to lend on houses that have Hero liens in the first position on the mortgage. This is very important because it can make it difficult for homeowners to refinance on the property or new owners to get financing when the home is sold. Additionally, it's important for people who get Hero financing to contact their mortgage lender right away so they can start taking money to pay that lien into an impound account. If not, you could get behind in your payment and end up having to pay double each month in order to catch up. I hope this helped you understand PACE financing better. If you have any other questions about this financing or you're thinking about buying or selling a home, don't hesitate to give me a call or send me an email today. I look forward to helping you!
6 Jan 2017
The 4 Demands You Should Make to Your Agent
There are four demands you need to make to your agent when buying a home so you get the home you want and pay the right price for it.Thinking of selling? Get a free home valuationThinking of buying? Search all homes for sale on the MLS What four demands should you make to your agent when buying a house?First, talk to them about price. Make sure they help you understand how they’ll get both the seller and the bank to agree to the offer you’re making on the property you want. It’s important that you go in ahead of time understanding the negotiation phase of the seller’s counteroffer and you understand that the bank has to perform their appraisal and agree that the purchase price of the property is what they’re willing to lend on it.Make sure they help you find the right house. Second, make sure they understand your timetable and how soon you need to be out of your current property and into a new one. It can be time-consuming to both sell an old property and buy a new one. Buying a new property means dealing with escrow periods and needing time to both look for a new home and then move into it. Discuss with your agent your plan for how you’re going to work out the logistics of your time in order to move into your new property. Third, make sure they have good negotiating skills and do a good job explaining the different phases of the negotiation process with both the buyer and the seller. Finally, make sure they help you find the right house, even if that means you give them permission to tell you the truth—even if it’s something you don’t want to hear. Make sure they listen to what you’re asking for in your “needs” list for your new house and they’re in tune to whatever else you want. If you have any questions about what demands to make of your agent or you’re thinking of buying or selling a home in San Diego, don’t hesitate to message me or give me a call. I’d love to work with you!
18 Aug 2017
Most Popular Podcasts
Why the Right Contractor Is Key
When choosing a contractor, there are a few things you need to consider before making your final call. Thinking of selling? Get a free home valuationThinking of buying? Search all homes for sale on the MLS There are a few steps you should take to properly vet a contractor for your remodel project. First of all, it’s always a good idea to choose a contractor who has been referred to you by a friend or a professional. Looking at that contractor’s prior work can give you a good idea of what the finished results in your own home will look like.The Internet can also be a great resource for getting to know a contractor and their ability. Do your homework on them by checking out reviews such as the ones on Yelp! or Angie’s List. While you’re checking out their reviews, also look to see if the contractor is part of any contractor associations. Additionally, make sure you get more than one bid for the project. In fact, you’ll probably want three, or even four, bids before you choose the contractor. Choose a contractor who has been referred to you by a friend or a professional. When you do get these bids, make sure the items within them are consistent. Comparing bids that are “apples to apples” will make it easier to choose. Looking at similar bids is the only way to truly see if they are comparable. Also, when you sign the bid, make sure there is an agreed-upon payment schedule. It also may be worth it to use the same contractor for multiple jobs, since you will already know what to expect from their work.If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
8 Aug 2017