Author: Jack Leachman

Today, we're dedicating our post to the brave men and women who have served our country. As a veteran, you have access to unique mortgage options tailored to your service and sacrifice. This guide aims to navigate the various loan choices available to you, helping you find the path to homeownership that best suits your needs. VA Loans - A Prime Option for Veterans VA loans stand out as one of the most beneficial mortgage options for veterans. Administered by the Department of Veterans Affairs, these loans offer several advantages: No down payment: Most veterans can purchase a home with no down payment. No private mortgage insurance (PMI): This can significantly lower your monthly payments. Competitive interest rates: VA loans typically have lower rates compared to conventional loans. Flexible credit…

The housing market is making affordability a big issue for many would be buyers. This can make buying a fixer-upper a lot more tempting. We’ve all seen the home make-over shows with amazing before and afters, but should you do it? Here are a few things to consider: 1. Know Your Limits How much of the work can you do. How much time do you have to put into renovations. Are you prepared to live in a work zone for a while 2. Work Out Costs In Advance Have a contractor walk through the inspection with you and get a written estimate for work he would do. If you are doing the work yourself price the costs of supplies, either way add 15% to the costs because surprises are likely.…

Today we are going to discuss two common mortgage loan products, and the pros and cons of both FHA and Conventional Loans. Many people are familiar with the 20% down, good credit 30 year fixed conventional loan scenario. FHA loans on the other hand are designed for people who might have difficulty qualifying for a conventional loan to still get funding to buy a house. FHA Loans offer down payments as low as 3.5% and are more lenient on credit scores and past financial issues. Borrowers can qualify for FHA loans with as low as 580 credit scores. One of the downsides of FHA loans are mortgage insurance requirements, if you put down less than 10% you will be required to pay monthly insurance for the duration of the loan,…

Throughout the country (and in some areas more than others) low inventory in the housing market and high rent prices have many home owners adding or considering adding ADUs (which stands for Accessory Dwelling Units). ADUs often called granny flats, are guest houses or rooms added to garages to create rental income for home owners. Home owners typically add ADUs to increase cash flow, as well as looking for their property value to appreciate. Whether ADUs are right for you, depends on a number of factors. ADUs often costs at least $100,000 to build so being in a high rent market helps to offset the initial investment. You’ll also need to make sure local ordinances allow them and what the regulations are. The old real estate adage about location stays…

A lot of young Americans went to college, studied hard but in addition to getting a diploma, they also graduated with debt. Having loans is not a deal breaker but it will factor into the important debt-to-income (or DTI) ratio, and mortgage underwriters are primarily looking at the numbers so having it be student loan debt isn't different from a car loan in the math. Strategies to get approved with student loan debt Pay it down - this maybe easier said than done but if you have extra money or got a raise then try to pay down the debt Consolidate it - if you can consolidate your debt and lower your monthly payment (even not the overall loan amount) this will help your monthly DTI ratio Co-sign - this…

The home-buying journey usually starts with a preapproval. This preapproval not only reflects your seriousness about purchasing a house but also provides clarity about how much you can afford. However, as the home hunt progresses, you might need to increase the preapproved amount. What is Mortgage Preapproval? Mortgage preapproval is essentially a promise from the lender that you are likely to qualify for a mortgage, based on your financial situation. This involves a basic application where you submit details about your assets, income, and debts. This is not a guarantee, but a significant step indicating your creditworthiness. Determining the Preapproval Amount The preapproval amount is primarily influenced by factors like your credit score, income, debt load, and assets. An appraisal of the property ensures its value justifies the mortgage amount.…

The dream of owning a home is a cherished one for many individuals and families across the United States. However, the soaring median existing-home price of around $400,000 can often make it seem like an unattainable goal, especially when faced with the prospect of a substantial down payment. Traditional mortgage loans typically require a 20 percent down payment, equating to a significant sum, but there is good news – down payment assistance (DPA) programs exist to help prospective homeowners bridge the financial gap. In this blog post, we will explore what DPA programs are, how they work, and the steps to access this valuable assistance. What is a Down Payment Assistance (DPA) Program? Down payment assistance programs are financial tools designed to provide aspiring homebuyers with the necessary funds to…

The news from the Federal Reserve this week is a pause on rate hikes and while the Fed does not set these rates outright, its monetary policies and decisions inevitably echo through the housing market. This relationship has been notably evident through the 11 rate hikes since early 2022, leading to the Fed's recent announcement of a pause in September. A Glimmer of Hope for the Housing Market Housing economists have found solace in this pause, with anticipations that the steep incline in mortgage rates may be nearing its terminus. Mike Fratantoni, the Chief Economist at the Mortgage Bankers Association, states, “We anticipate a continual decline in inflation, aligning it closer to the Fed’s target. Concurrently, the job market is projected to decelerate, reflecting expectations that the Fed’s 2024 movements…

What's a 10/1 ARM? An ARM is a mortgage with an interest rate that can adjust over time in response to changes in the market. The 10/1 ARM has a fixed interest rate for the first decade, followed by annual rate adjustments for the next 20 years. This makes it distinct from traditional fixed-rate mortgages which lock in one rate for the entirety of the loan term. The beauty of the 10/1 ARM lies in the balance it offers: the certainty of a fixed rate for a substantial period and the potential savings from rate adjustments thereafter. How the 10/1 ARM Rate Works: Essentially, the interest rate on a 10/1 ARM is determined by a combination of a fixed margin rate and a variable index rate. The index rate reflects…

Home ownership is part of the American dream and often thought of as a step towards financial stability. For parents, the thought of helping their child set foot on this path can be both appealing and daunting. Here's an in-depth look at why and how parents can provide that initial boost. Why Consider Gifting a Down Payment? In 2022, the National Association of Realtors revealed an intriguing statistic: 22% of first-time homebuyers were aided by gift funds from family or friends. This underscores the trend of families stepping in to aid the next generation in achieving their homeownership dreams. In today's environment, skyrocketing rents, expensive homes, and the looming shadow of student debt make saving for a down payment increasingly challenging for many young people. A down payment gift is…