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lostinfantasyworlds · 4 months

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Life Update

Heyyyy it’s been a while! I never really expect anyone to notice when I fuck off for long periods of time, but in case you did and happened to be wondering why I was mostly MIA for most of 2023, here's what I've been up to.

The short version: My husband and I sold our first house over the summer and bought our “forever” home! It worked out so much better than I could have hoped, but it turns out that prepping a house to sell and moving = lots of stress and chaos...which caused me to tumble off the deep end mentally for a while afterwards and I’m only just starting to recover.

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Before I elaborate, I feel like I have to give a disclaimer because the last thing I want is to come across like I'm complaining or ungrateful. I'm very aware of how lucky and privileged I am to be a homeowner, so I am by no means asking for sympathy or trying to act like "buying/selling a house is so stressful, woe is me!" I understand that homeownership is a pipe dream for a lot of people, especially in the current economy, and I don't take that for granted. I'm genuinely grateful that I even have the opportunity to be stressed about something like this, but I can't deny that it was stressful.

If anyone is wondering how I managed to buy a house at all, I'm happy to answer that in a separate post. The abridged version is extremely lucky timing plus countless hours of hard work put into fixing up our first house that we bought for cheap back when the market was way more balanced (2016).

When I talk about the stress of last year, it's almost entirely in regards to my own mental health which is something I've always struggled with. I get overwhelmed VERY easily by regular life, let alone when I go through a major change (no matter how positive it is). Every big transition period in my life has triggered intense anxiety disorders and/or depression for me, so that's the main reason why things felt so difficult.

If you happen to be thinking something along the lines of "shut the fuck up, no one cares you were stressed, you're so privileged to even be able to own a house," ...believe me, I've already said to myself a million times. That is part of why I end up so depressed in the first place, because I feel like I “don’t have the right” when my life is so wonderful. But thanks to therapy I understand more about my mental illnesses and I'm trying to be less hard on myself now.

Still, I don't want anyone to get the wrong idea 😅.

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Anyways! If you want to know more about our house/see some pics, the long version with all of my rambling is below the cut!

The long version:

My husband and I bought our first house in 2016, right after getting married. It was conveniently located right across the street from where we had been living with 4 of our friends (which is how we were able to save enough money to buy a house), but it was in such bad condition that it didn't even meet the FHA minimum property standards so we had to use a special type of mortgage to purchase it. We always meant for it to a long-term flip, planning to live there while renovating it so that we could sell it after a few years and use the profit to buy a house that would be more permanent.

We put so much literal blood sweat and tears into that house. In the beginning we spent every single hour of our spare time fixing up the house. We do all renovation work ourselves because my dad and husband have experience with demolition, electrical, and plumbing. And anything we don't know how to do we just figure out as we go along. The only time we hired a contractor was to replace the roof that had extensive water damage.

(This is the water damage discovered down the whole back of the house a few weeks after we bought it 🙃)

(One before-and-after out of many to avoid making this post absurdly long. The contractors finished the ceiling when they did the roof but otherwise we did all the work on that bathroom ourselves, including moving the shower wall back 6 inches so that the shower door wasn't mounted to the window trim 🤦🏻‍♀️)

Over a few years we worked on remodeling each room until we eventually we got super burnt out, and then the pandemic happened and we both fell into a deep depression. Finally, in 2022 I got myself a therapist and started clawing myself out of the dark place I was in, and at the start of April 2023 we started prepping the house to sell. I had been watching the market steadily increase to absolutely insane levels and knew it was kind of a “now or never” situation, even though I still felt very fragile mentally so I was worried how I would handle such a large undertaking.

I never could have imagined just how amazing it would turn out. We truly couldn't be happier with our new home, it’s pretty much everything we were hoping for and I still can’t believe how lucky we are to have gotten it. I was prepared to have a hard time finding an affordable house. I had heard of all kinds of horror stories and the crazy competition going on in the market was intimidating. I thought we were gearing up for the long haul, and prepared myself for a lot of disappointment. Our house was the first house we put an offer on (the third one we looked at in person) and we somehow got it! It’s insane, I'm so fucking grateful.

The only catch is that it's a lot more of a fixer upper than we had originally planned on buying. I didn’t think that we would ever buy another house that required as much renovation as our first one did, because that shit was intense and we are now in our 30s and very tired 😂. But our new house has so many features that were on our “would-love-to-have-but-probably-won't-find-in-this-economy” list like laundry upstairs and an attached garage (also a pond??!?! We have a fucking pond and I love it so so much🥹). So we knew we could turn it into a home we’d love spending our lives in if we put in the work. Plus it was actually well below our budget (probably because of the condition it was in).

We decided to offer what we were willing to pay, which was well above asking but we still didn't think we'd have a chance because the market is so competitive. I don’t know if our real estate agent just worked some magic (she was amazing), but we were genuinely stunned when she told us we got the house.

(Our beautiful pond🥹 🥰)

After that, things moved SO fast. The timing made it overlap with the prepping/listing of our first home, which was really stressful to juggle all at once on top of our full time jobs. I thought selling was going to be the easy part since the market is so skewed towards sellers right now. And it did go amazingly well once we listed (64 showings and 12 offers in one weekend, fucking nuts?!?!!), but the months leading up to listing the house were CRAZY. I knew it would be a lot of work to prep the house since we had a bunch of unfinished projects, 4 open permits with the town that we needed to get closed, and had accumulated so much shit over the years, but I definitely underestimated how intense it would be, especially with the overlap of buying our new house. I had used up all of my PTO for the year by June in order to deal with house things and felt like I was constantly on the verge of a mental breakdown. I pushed myself way past my limits and knew I would pay for it eventually.

But we made it through the chaos and officially moved in July. Let me just say that I hope I never have to move again😵‍💫. It was 90+ degrees (F), 95% + humidity that weekend, and then POURING rain on the day of the move🙃. But other than that, everything went pretty smoothly! After a couple weeks of getting settled and sleeping in the living room, we started on the renovations in early August.

(Before and after of our living room that we are using as a hobby room for D&D, music, art, etc I love it so much!)

(Before and after of the downstairs bedroom which we use as our office)

We remodeled two whole rooms in about 6 weeks, which was wayy too much. We had been going nonstop since April and by the time we got to October, I hit a wall. Because my mental health was incredibly fragile to begin with, surprise surprise I ended up stuck in another bout of horrific burnout-fueled depression for a solid 2+ months after we finally paused to take a break. I've struggled with my mental health since I was a teenager, having periods of depression, panic disorder, and GAD on and off. Also over the past year, I’ve started to suspect that I may have undiagnosed ADHD so there's a lot going on with my brain. I've always been a very sensitive person, and my mental health is the first thing to suffer if I don't take care of myself.

I started feeling a bit better in December, but then things got crazy again with work and the holidays, so I ended up back in burnout land yet again. Now I think I'm finally starting to truly recover as I enter the slow season at work. We are easing back into renovations but I've been trying to take it as easy on myself as possible to avoid falling back into that dark place, which is why you haven't seen much of me on tumblr. It bums me out, and I often feel frustrated with my own limitations when I see everyone posting and chatting and creating and I want so badly to join in, but I sadly just haven't had it in me for a long time. But I'm still lurking and forever obsessed with InuKag and hope to be recovered enough to participate in fandom stuff more soon!

I've still been writing and drawing here and there whenever I get a bit of inspiration. I actually just finished an Inuyasha redraw that I'll be posting soon! I've also been writing a lot more recently, or at least thinking a lot about my WIPs😂. The main one I've been working on is If It Kills Me, which I am dying to share with you all. But it's a mystery/thriller/actiony type of story with plot points that still need to be figured out, so once those pieces fall into place I will hopefully be able to wrap it up. I'm going to be working on it a lot in February, so we'll see what happens.

I would love to share my other main WIP The First and Last this summer (since it's a summer-based story), but we'll see how things go. The next major renovation project is the kitchen 😵‍💫, so fandom things might have to sadly take a backseat again during that. But I'll still be lurking here and missing you all! ❤️

#personal #home renovation #update #I don't expect anyone to read this whole thing but thank you for listening to me ramble if you do xD #I'm an overexplainer sorry can't help it #anyways I missed being involved in the fandom last year so much #happy to finally feel regulated again #it was a busy year and my brain sucks but it was amazing

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reasoningdaily · 9 months

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The days of legally sanctioned race-based housing discrimination may be behind us, but the legacy of attitudes and practices that kept nonwhite citizens out of some neighborhoods and homeownership remains pervasive. Redlining, one of these practices, is especially notorious in U.S. real estate history.

What is redlining? Technically, it refers to lending discrimination that bases decisions on a property’s or individual’s location, without regard to other characteristics or qualifications. In a larger sense, it refers to any form of racial discrimination related to real estate.

America’s discriminatory past can still be present today with nonwhite mortgage borrowers generally getting charged higher interest rates and the persistence of neighborhood segregation. These trends can be traced in part to redlining, an official government policy dating from the 1930s, which codified racist attitudes in real estate finance and investment, and made it more difficult for nonwhites to purchase homes.

Redlining and racism in America have a long, complex and nuanced history. This article serves as a primer on the policy’s background and how it continues to affect real estate and nonwhite homeownership today. It also includes suggestions to reduce redlining’s lingering effect.

Key takeaways

Redlining refers to a real estate practice in which public and private housing industry officials and professionals designated certain neighborhoods as high-risk, largely due to racial demographics, and denied loans or backing for loans on properties in those neighborhoods.

Redlining practices were prevalent from the 1930s to the 1960s.

Ostensibly intended to reduce lender risk, redlining effectively institutionalized racial bias, making it easier to discriminate against and limit homebuying opportunities for people of color. It essentially restricted minority homeownership and investment to “risky” neighborhoods.

Though redlining is now illegal, its legacy persists, with ongoing impact on home values, homeownership and individuals’ net worth. Discrimination and inequities in housing practices and home financing still exist.

What is redlining?

Redlining — both as a term and a practice — is often cited as originating with the Federal Home Owners’ Loan Corporation (HOLC), a government agency created during the 1930s New Deal that aided homeowners who were in default on their mortgages and in foreclosure. HOLC created a system to assess the risk of lending money for mortgage loans within particular neighborhoods in 239 cities.

Color-coded maps were created and used to decide whether properties in that area were good candidates for loans and investment. The colors — from green to blue to yellow to red — indicated the lending risk level for properties. Areas outlined in red were regarded as “hazardous” (that is, high risk) — hence, the term “redlining.”

Redlined areas typically had a high concentration of African-American residents and other minorities. Historians have charged that private mortgage lenders and even the Federal Housing Administration (FHA) — created in 1934 to back, or insure, mortgages — used these maps or developed similar ones to set loan criteria, with properties in those redlined areas incurring higher interest rates or not qualifying at all. Real estate brokers often used them to segregate buyers and sellers.

“This practice was widespread and institutionalized, and it was used to discriminate against minorities and low-income communities,” says Sam Silver, a veteran Santa Clarita, Calif.-based Realtor, real estate investor and commercial lender.

The impact of redlining on the mortgage lending industry

Following World War II, the U.S. had a huge demand for housing, as many returning American servicemen and -women wanted to settle down and begin raising families. Eager to help these veterans, the FHA expanded its financing and loan-insuring efforts, essentially empowering Uncle Sam to back lenders and developers and reducing their risk when offering construction and mortgage loans.

“That lower risk to lenders resulted in lower interest rates, which granted middle-class people the ability to borrow money to purchase homes,” says Rajeh Saadeh, a real estate and civil rights attorney and a former Raritan Valley Community College adjunct professor on real estate law in Bridgewater, New Jersey. “With the new lending policies and larger potential homeowner pool, real estate developers bought huge tracts of land just outside of urban areas and developed them by building numerous homes and turning the areas into today’s suburbs.”

However, many of these new developments had restrictions stated in their covenants that prohibited African-Americans from purchasing within them. Additionally, there were areas within cities, already heavily populated by minorities, that were redlined, making them ineligible for federally backed mortgages (which effectively meant, for affordable mortgages, period). Consequently, people of color could not get loans to buy in the suburbs, nor could they borrow to purchase homes in areas in which they were concentrated.

“Redlining was part of a systemic, codified policy by the government, mortgage lenders, real estate developers and real estate agents as a bloc to deprive Black people of homeownership,” Saadeh continues. “The ramifications of this practice have been generational.”

The (official) end of redlining

During the mid-20th century, redlining predominated along the East Coast, the eastern sections of the South and the Midwest, and several West Coast metropolitan areas. Black neighborhoods and areas adjacent to them were the ones most likely to be redlined.

Redlining as a sanctioned government practice ended with the passage of the Fair Housing Act in 1968, which specifically prohibits racial discrimination in the housing industry and among professionals engaged in renting, buying, selling and financing residential properties. The Act’s protections were extended by the Equal Credit Opportunity Act (1974) and the Community Reinvestment Act (1977).

The Department of Housing and Urban Development (HUD) — specifically, its Office of Fair Housing and Equal Opportunity (FHEO) — investigates reports of redlining. For example, prompted by a complaint filed by the non-profit National Community Reinvestment Coalition, HUD has been examining whether several branches of HSBC Bank USA engaged in discriminatory lending practices in Black and Hispanic neighborhoods in six U.S. metropolitan areas from 2018-2021, HSBC recently disclosed in its Form 10-Q for the second quarter 2023.

Bankrate insights

In October 2021, the Department of Justice announced its Combatting Redlining Initiative, working in partnership with the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency. It has reached seven major settlements with financial institutions to date, resulting in over $80 million in loans, investments and subsidies to communities of color.

How does redlining affect real estate today?

The practice of redlining has significantly impacted real estate over the decades in several ways:

Redlining has arguably led to continued racial segregation in cities and neighborhoods. Recent research shows that almost all formerly redlined zones in America remain disproportionately Black.

Redlined areas are associated with a long-term decline in homeownership, home values and credit scores among minorities, all of which continue today.

Formerly redlined areas tend to have older housing stock and command lower rents; these less-valuable assets contribute to the racial wealth gap.

Redlining curbed the economic development of minority neighborhoods, miring many of these areas in poverty due to a lack of access to loans for business development. After 30-plus years of underinvestment, many nonwhite neighborhoods continue to be seen as risky for investors and developers.

Other effects of redlining include the exclusion of minority communities from key resources within urban areas, such as health care, educational facilities and employment opportunities.

Today, 11 million Americans live in formerly redlined areas, estimates Kareem Saleh, founder/CEO of FairPlay AI, a Los Angeles-based organization that works to mitigate the effects of algorithmic bias in lending. He says about half of these people reside in 10 cities: Baltimore, Boston, Chicago, Detroit, Los Angeles, Milwaukee, New York City, Philadelphia, San Francisco and San Diego.

“Redlining shut generations of Black and Brown homebuyers out of the market. And when members of these communities did overcome the barriers to purchasing homes, redlining diminished their capacity to generate wealth from the purchase,” says Saleh. “To this day, redlining has depressed property values of homes owned in minority communities. The enduring legacy of redlining is that it has blocked generations of persons of color from accessing a pathway to economic empowerment.”

“Also, due to redlining, African-Americans who couldn’t qualify for government-backed mortgages were forced to pay higher interest rates. Higher interest rates translate to higher mortgage payments, making it difficult for minorities to afford homes,” Elizabeth Whitman, a real estate attorney and real estate broker in Potomac, Maryland, says. “Since redlining made it more expensive to obtain a mortgage, housing wasn’t as easy to sell and home prices got suppressed in redlined areas.”

Data from FairPlay AI’s recent “State of Mortgage Fairness Report” indicate that equality in mortgage lending is little better today for many nonwhite groups than it was 30 years ago — or it has improved very slowly. For example, in 1990, Black mortgage applicants obtained loan approvals at 78.4 percent of the rate of White applicants; in 2019 that figure remained virtually unchanged — though it did rise to 84.4 percent in 2021.

Although there’s no official federal risk map anymore, most financial institutions do their own risk assessments. Unfortunately, bias can still enter into these assessments.

“Lenders can use algorithms and big data to determine the creditworthiness of a borrower, which can lead to discrimination based on race and ethnicity. Also, some real estate agents may steer clients away from certain neighborhoods based on their racial makeup,” Silver points out.

With the rise of credit rating agencies and their ubiquity, how do we know it’s a fair system? I don’t think, at my core, that African-Americans are predisposed to be poorer and less financially secure. — Rob Roseformer executive director of the Cook County Land Bank Authority in Chicago

Insurance companies have also used redlining practices to limit access to comprehensive homeowners policies. And the home appraisal industry has also employed redlining maps when valuing properties, which has further repressed housing values in African-American neighborhoods, according to Whitman.

Furthermore, a 2020 National Fair Housing Alliance study revealed that Black and Hispanic/Latino renters were more likely to be shown and offered fewer properties than White renters.

Redlining’s ongoing legacy

Even without conscious bias, the legacy of redlining — and its impact on the accumulation of assets and wealth — can put nonwhite loan applicants at a disadvantage to a disproportionate degree. For example, studies consistently show that Black borrowers generally have lower credit scores today, even when other factors like education and income are controlled for. Credit scores, along with net worth and income, are of course a key factor in determining mortgage eligibility and terms.

As a result, it remains more difficult for Black borrowers to qualify for mortgages — and more expensive for those who do, because they’re usually charged higher interest rates. Other minorities are also much more likely to pay a higher interest rate than their White counterparts.

Because home appraisals look at past property value trends in neighborhoods, they reinforce the discrimination redlining codified by keeping real estate prices lower in historically Black neighborhoods. That, in turn, makes lenders assume they’re taking on more risk when they extend financing in those areas.

“The single-greatest barrier in helping to break out of these neighborhoods is the current appraisal process,” says Rob Rose, former executive director of the Cook County Land Bank Authority in Chicago. “The appraisers are trying to do the best that they can within the parameters that they’re given, but it’s a broken system and industry that’s built on a faulty foundation.”

African-American homeowners pay hundreds of dollars more per year in mortgage interest, mortgage insurance premiums and other fees than White homeowners — amounting to $13,464 over the life of their loan, according to “The Unequal Costs of Black Homeownership,” a 2020 study by MIT’s Golub Center for Finance and Policy.

What can be done to reduce the impact of redlining?

The current housing financing system is built on the foundations that redlining left in place. To decrease the effects of redlining and its legacy, it’s essential to address the underlying biases that led to these practices.

“This can be done through Fair Housing education and training of real estate professionals, increased enforcement of Fair Housing laws, and investment in communities that have been historically redlined,” suggests Silver.

Others insist that the public and private sectors need to play a bigger role in combating prejudice and discrimination.

“Federal regulators likely will continue to put pressure on financial institutions and other stakeholders in the mortgage ecosystem to root out bias,” says Saleh. “The Department of Justice’s Combatting Redlining Initiative shows the government’s commitment to supervisory oversight. There are also policy and regulatory moves, such as the recent push by regulators encouraging lenders to use Special Purpose Credit Programs — lending programs specifically dedicated to remedying past discrimination. Similarly, various federal task forces have been actively addressing historical biases and discriminatory practices in the appraisal industry.”

Also, financial institutions could adjust their underwriting practices and algorithms to better evaluate nonwhite loan applicants, and help level the playing field for them. For example, in late 2022, Fannie Mae announced it had adjusted its automated Desktop Underwriter system — widely used by bank loan officers — to consider bank account balances for applicants who lack credit scores. Fannie and its fellow mortgage-market player, Freddie Mac, now may also consider rent payments as part of borrowers’ credit histories.

Such efforts won’t eradicate the effects of redlining overnight, of course. But they can be a start towards helping more people towards a key piece of the American Dream.

If you believe you are the victim of redlining or another sort of housing discrimination, you have rights under the Fair Housing Act. You can file an online complaint with or phone the U.S. Department of Housing and Urban Development at (800) 669-9777. Additionally, you can report the matter to your local private Fair Housing center or contact the National Fair Housing Alliance.

#What is redlining? A look at the history of racism in American real estate #redlining #Racial disparities in homeownership #white supremacy in banking #american hate

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stkvlog07 · 3 months

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Demystifying Mortgages for First-Time Buyers

Understanding Mortgages: A Primer

What is a Mortgage?

A mortgage is a loan provided by a lender, typically a bank or mortgage company, to help individuals purchase a home. The borrower pledges the property as collateral, and the lender provides funds for the purchase, which the borrower then repays over time with interest.

Types of Mortgages

There are various types of mortgages available to homebuyers, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), government-backed loans (such as FHA loans), and specialized programs for first-time buyers. Each type has its own terms, interest rates, and eligibility requirements.

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naturalrights-retard · 1 year

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Who’s left to buy overvalued houses? Too few to prop up bubble valuations

If as many posit the Federal Reserve has an unstated mandate to generate a “wealth effect” by propping up housing, they’ve managed to create a no-win situation. As longtime correspondent K.M. recently documented, roughly half of the 50+ million home mortgages in the US were refinanced in 2020 and 2021 to lock in historically low interest rates of less than 4%, with many around 3%.

Closed-end originations (excluding reverse mortgages) increased in 2020 by 65.2 percent, from 8.3 million in 2019 to 13.6 million in 2020.

Almost 25% of homeowners refinanced in 2021.

About half (51%) of homeowners have a rate under 4%.

As K.M. observed:

“That doesn’t include the millions who bought houses 2020 – 2021 at rates below 4%, who similarly are unlikely to sell unless rates drop well below 5%. Those who got rates below 3% or thereabouts, may be permanently off the market.

Think about it – why would I sell and surrender a 2.75%, 3.00% or 3.25% 30-year mortgage, only to move into another house with a loan at 5.5% – 6.5%? I’m locked into my house and loan for years if not decades.

And then there are reverse mortgages, which essentially lock the elderly in their houses for life. That’s been a housing stock reduction force for years now and may explain the increase in the number of houses in obvious disrepair.

I think you can see where I’m going with this. The artificially low rates of 2020 – 2021 have at least semi-permanently (and permanently in millions of cases) removed many millions of housing units from the market.”

We all know what happened to housing valuations as mortgage rates plummeted and post-pandemic panic-buying swept through the market: valuations skyrocketed, pushing housing affordability to near-record lows. (See chart below of the Case-Shiller Index which shot up from below 100 to 174 in the 2020-2022 bubble mania.)

This was not “market forces”–this was outright intervention by the Federal Reserve and federal housing agencies. As the chart below of mortgage-backed securities (MBS) held by Federal Reserve banks shows, the Fed went from owning zero MBS prior to the bursting of the first housing bubble in 2007-08 to owning roughly 20% ($2.6 trillion) of the entire US mortgage market for conventional single-family homes: ($13 trillion).

Federal agencies such as the Federal Housing Administration (FHA) and Veterans Administration (VA) offer low-down payment mortgages and other incentives. The mortgage-backed securities are guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae, quasi-governmental agencies. The entire state-central-bank financial machinery has worked together to inflate a housing bubble that makes those who bought long ago feel wealthy while making housing unaffordable to younger buyers who don’t have the luxury of getting help from wealthy parents.

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gcamortgagesblog · 1 year

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Buying A House With A FHA 203k Loan Explained

If you're in the market for a new home, you may have heard of the FHA 203k loan. This type of loan allows you to purchase a home that needs some renovations with a single loan that covers both the purchase price and the cost of the renovations.

What is an FHA 203k Loan?

An FHA 203k loan is a type of mortgage that allows you to purchase a home and finance the cost of renovations at the same time. There are two types of 203k loans: the standard 203k loan and the limited 203k loan. The standard 203k loan is for more extensive renovations, such as structural repairs, while the limited 203k loan is for smaller repairs, such as replacing appliances or installing new flooring.

With an FHA 203k loan, you'll need to work with a contractor to create a detailed renovation plan as per FHA loan requirements, which will be submitted to the lender for approval. Once the loan is approved, the funds will be disbursed to the contractor as the work is completed. This means that you won't have to pay for the renovations out of pocket, and you'll only have one loan payment to make each month.

Step 1: Determine if You're Eligible for an FHA 203k Loan

Before you can apply for an FHA 203k loan, you'll need to make sure you meet the FHA loan requirements. To qualify for this loan, you must:

Have a minimum credit score of 580

Have a debt-to-income ratio of no more than 43%

Have a down payment of at least 3.5%

Use the loan to purchase a property that will be your primary residence

Have a reliable source of income

Step 2: Find a Property That Needs Renovations

Once you know you meet all the FHA loan requirements for an FHA 203k loan, you can start searching for a property that needs renovations. It's important to keep in mind that not all properties are eligible under FHA loan requirements for this type of loan. The property must meet the following requirements:

It must be a one- to four-unit property that has been completed for at least one year.

The property must be located in a community that meets certain standards for safety and livability.

The cost of the renovations must be at least $5,000.

The renovations cannot include any luxury items, such as swimming pools or outdoor kitchens.

It's important to work with a real estate agent who is experienced in working with FHA 203k loans, as they can help you identify properties that meet these FHA loan requirements.

Step 3: Work with a Lender to Get Pre-Approved for a Loan

Once you've found a property you're interested in, you'll need to work with a lender to get pre-approved for an FHA 203k loan. During this process, the lender will review your credit score, debt-to-income ratio, and other financial information to determine how much you can borrow.

It's important to work with a lender who has experience with FHA 203k loans, as the process can be more complex than a traditional mortgage. Your lender can help you navigate the process and answer any questions you may have.

Step 4: Get a Home Inspection and Create a Renovation Plan

Before you can apply for an FHA 203k loan, you'll need to get a home inspection and create a renovation plan. The home inspection will identify any issues with the property that need to be addressed, and the renovation plan will outline the scope of work and estimated costs.

It's important to work with a licensed contractor to create the renovation plan, as this will be submitted to the lender for approval. The renovation plan must be detailed and include all of the work that will be done, as well as the estimated costs.

Step 5: Close on the Property and Begin Renovations

Once your loan is approved and you've closed on the property, you can begin the renovations. The funds from the loan will be disbursed to the contractor as the work is completed. It's important to work closely with your contractor throughout the renovation process to ensure the work is done to your satisfaction.

Buying a house with an FHA 203k loan can be a great option if you're interested in a fixer-upper. By following these steps and working with experienced professionals, you can successfully navigate the process and create the home of your dreams.

#united states #gca mortgage #usa #refinances #gustancho associates #real estate #property #fha loan #va loans #fha 203 k loans #homenuyers #first time home buyer

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firsttimehomebuyerpros · 1 year

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First Time Home Buyer Pros

At First Time Home Buyer Pros, we understand how daunting it can be to take the first step towards buying a home. As experts in providing Home Loans, Mortgages and assisting with FHA Loans for FTHBs in Temecula, CA, our team of Loan Officers and Real Estate Agents are here to help guide you through the process. Our mission is to make your journey as smooth as possible by offering tailored advice based on your situation and needs. We pride ourselves on our deep knowledge of the market in Temecula, CA, enabling us to guide you on what type of loan would best suit you while also helping negotiate the best price for your new home purchase. With years of experience under our belts and a passion for helping people achieve their homeownership goals, trust us to be there every step, from finding that perfect property until signing those final papers.

At First Time Home Buyer Pros, we pride ourselves on being a trusted resource for individuals in the Temecula, CA area interested in purchasing their first home. Buying a home can be an overwhelming and confusing process, especially for those who have never gone through it before. That's where we come in - our team of Loan Officers and Real Estate Agents is dedicated to providing personalized guidance to help you find your dream home.

We offer services tailored specifically to our client's needs as FTHBs in Temecula, including assistance finding suitable loan options, such as FHA loans or other mortgages that fit individual situations. Our experts are here to walk each step of the journey with you, from calculating what type of costs will be involved upfront (down payment, etc.) to all necessary paperwork submissions like getting pre-qualified for financing to negotiating better homes they desire.

We believe everyone deserves the chance to own their real estate and build wealth over time through homeownership. With free service consultations at every appointment provided by expert agents that also specialize solely towards serving people looking into buying homes using different forms, which include FHA Loans or traditional mortgages, we're able to share relevant information about neighborhoods within this community so prospective buyers feel confident enough not just when making offers but negotiations too!

Contact Us: First Time Home Buyer Pros 32209 Camino Herencia Temecula CA 92592 +1 949-357-5029 [email protected] http://fthbpros.com/

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harrisbarbara2828 · 1 year

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Advice On How To Get A Renovation Loan For Your Project In Houston

Do you need a loan for a renovation project you have coming up? We must have thought of you. While many people find the process of applying for a remodeling loan to be tedious, we make it very simple in this post.

This article discusses the numerous loan requirements, different forms of renovation loans in Houston, and expert suggestions for a successful project if you didn't know you could receive a loan for your restoration work or believed it would be difficult to secure a loan.

A 203(K) FHA loan

The most well-liked and reasonably priced loans in the US are FHA 203(L) loans. And the reason for this is because they are supported by the government and have the most favourable qualification standards. You can refinance or purchase a primary residence using an FHA 203(k) loan, and you can add the whole cost of the modifications to your mortgage to pay for them over time.

Loans for Home Equity

You can borrow money based on the value of your property with a renovation home equity loan. Your equity house payment will need to be made separately if you already have a mortgage because it doesn't cancel off the previous loan. Applying for a home equity loan may make sense if you have accumulated a considerable amount of home equity or if you need to finance a significant one-time project.

Individual Loan

A personal loan is yet another option to pay for your home remodeling. Using an unsecured home renovation loan has the benefit of not requiring security for the loan. They are also the easiest loans to obtain because of this. Despite having higher interest rates, personal loans can be repaid over durations of two to five years and have flexible rates (fixed and adjustable). in order to be eligible for an unsecured personal loan.

Employ Qualified Personnel

Your remodeling expense can easily balloon and spiral out of control without a proper plan. Working with experts is beneficial in this regard. At Smart Remodeling, we make an extra effort to develop a plan that works for your circumstances and make sure we stick to that plan throughout the remodeling process to get the desired outcomes. Additionally, we'll work with you to prevent unforeseen catastrophes and ensure that the project is completed successfully and under budget.

Select the Best Loan for You

Make important to search around and become familiar with the conditions of each loan before applying for any home renovation loan. You shouldn't take out a loan that will take you a lifetime to pay back or, worse yet, one that you're likely to fail on. Should you refinance your mortgage or combine your savings with your remodeling loan, or would you want to cash them out? Compare the many financing options and choose the one that best suits your needs.

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wellingtonhomez · 1 year

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Do you know why an FHA loan is great, especially for first-time home buyers? See everything you need to know about FHA loans, including the significant advantages of this mortgage.

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homeratemortgagetennessee · 1 year

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homeratemortgagetn · 2 years

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youtube

Business Name: HomeRate Mortgage

Address: 7506 E Brainerd Rd

City: Chattanooga

State: Tennessee (TN)

Zip Code: 37421

Country: United States

Phone Number: (423) 805-9100

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chimprerealesatategroup · 1 day

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What are some tips for investing in rental properties in Atlanta?

Investing in rental properties in Atlanta can be a profitable venture, given the city's growing population and robust economy. Here are some tips to help you succeed in this market:

Research the Market:

Understand Trends: Keep an eye on real estate trends in Atlanta, including property values, rental rates, and vacancy rates. This information will help you make informed decisions about where and what to buy.

Neighborhood Analysis: Identify neighborhoods with high rental demand and good potential for appreciation. Consider factors like proximity to schools, public transportation, and employment centers.

Choose the Right Property Type:

Single-Family vs. Multi-Family: Decide whether you want to invest in single-family homes, multi-family units, or apartment buildings. Each has its pros and cons regarding management, risk, and return on investment.

Condition and Age: Consider the property's condition and age. Older properties may require more maintenance, while newer mls listed properties might have higher upfront costs but lower maintenance expenses.

Calculate Your Budget and Financing:

Budgeting: Determine how much you can afford to invest, including the down payment, closing costs, and reserves for unexpected expenses.

Financing Options: Explore various financing options, such as conventional loans, FHA loans, or investment property loans. Ensure you get pre-approved to streamline the purchasing process.

Conduct Thorough Due Diligence:

Property Inspection: Always get a professional inspection to identify any potential issues with the property.

Title Search: Conduct a title search to ensure there are no liens or legal issues with the property.

Evaluate Rental Income: Assess the potential rental income and compare it to similar properties in the area. Ensure that the rental income will cover your mortgage, taxes, insurance, and other expenses.

Understand Local Laws and Regulations:

Landlord-Tenant Laws: Familiarize yourself with Georgia’s landlord-tenant laws and regulations, including tenant rights, eviction procedures, and property maintenance requirements.

Zoning and Permits: Check local zoning laws and permits required for rental properties, especially if you plan to make significant changes or add units.

Develop a Management Plan:

Self-Management vs. Property Management: Decide whether you will manage the property yourself or hire a property management company. Professional management can save you time and handle tenant issues, but it comes at a cost.

Maintenance and Repairs: Have a plan for regular maintenance and handling emergency repairs. This ensures the property remains in good condition and keeps tenants satisfied.

Screen Tenants Carefully:

Background Checks: Conduct thorough background checks on potential tenants, including credit history, employment verification, and rental history.

Lease Agreements: Use a comprehensive lease agreement that outlines all terms and conditions, including rent payment dates, security deposits, maintenance responsibilities, and rules for the property.

Consider Long-Term Appreciation and Exit Strategy:

Property Appreciation: Look for properties in areas with strong potential for long-term appreciation. Investing in up-and-coming neighborhoods can yield significant returns over time.

Exit Strategy: Have a clear exit strategy, whether it's selling the property for a profit, refinancing, or holding it for long-term rental income.

Network with Local Investors and Professionals:

Real Estate Groups: Join local real estate investment groups or associations to network with other investors and stay informed about market trends and opportunities.

Professional Team: Build a team of reliable professionals, including real estate agents, attorneys, accountants, and contractors, to help you manage your investment effectively.

Stay Updated and Adapt:

Continuous Learning: Stay informed about changes in the real estate market, economic conditions, and rental demand. Attend seminars, workshops, and online courses to continuously improve your knowledge and skills.

Adapt Strategies: Be ready to adapt your investment strategies based on market conditions and tenant needs. Flexibility is key to long-term success in real estate investing.

By following these tips, you can make informed decisions and increase your chances of success when investing in rental properties in Atlanta. Contact Chimpre Real Estate Group to learn more about get the answer for all your query.

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litem-legalis · 2 days

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What important criteria do lenders take into account when evaluating your eligibility for a mortgage loan?

When evaluating your eligibility for a Mortgage Loan, lenders typically consider a variety of criteria to assess your financial stability and ability to repay the loan. The most important factors include:

Credit Score: Lenders use your credit score to gauge your creditworthiness. Higher scores generally indicate a lower risk to lenders, potentially leading to better interest rates and loan terms. A score above 700 is usually considered good, but the minimum score required can vary by lender and loan type.

Credit History: This includes your record of repaying debts. Lenders will review your credit reports to see your history of borrowing, including the types of credit accounts you have, the amount of available credit you're using, and any history of late payments, defaults, or bankruptcies.

Income and Employment History: Lenders need to ensure you have a stable income to make your mortgage payments. They'll look at your current income, employment history, and job stability.

Debt-to-Income Ratio (DTI): This ratio compares your monthly debt payments to your gross monthly income. Lenders use it to assess your ability to manage monthly payments and repay debts. A lower DTI ratio indicates less risk. Generally, lenders prefer a DTI ratio below 36%, though some may allow up to 43% or higher depending on other factors.

Down Payment: The size of your down payment can impact your eligibility and loan terms. A larger down payment reduces the lender's risk. Conventional loans typically require at least 5-20% down, while FHA loans may require as little as 3.5%.

Loan Amount and Property Type: The amount you want to borrow and the type of property you're purchasing (e.g., single-family home, condo, multi-family property) can influence lender decisions. Some properties may be considered riskier investments.

Savings and Assets: Lenders want to see that you have enough savings to cover the down payment, closing costs, and reserves for emergencies. They may review your bank statements, investment accounts, and other assets.

Current Debts and Liabilities: Lenders will consider your existing debts, including car loans, student loans, credit card balances, and other obligations. High levels of existing debt can negatively impact your eligibility.

Loan Type and Terms: Different types of loans (e.g., fixed-rate vs. adjustable-rate mortgages, FHA, VA, USDA loans) have varying requirements and eligibility criteria. The loan term (e.g., 15 years vs. 30 years) can also affect approval.

Property Appraisal: The property being purchased must be appraised to determine its market value. Lenders want to ensure the property's value is sufficient to cover the loan amount in case of default.

Mortgage Insurance: If your down payment is less than 20%, you may be required to obtain private mortgage insurance (PMI) to protect the lender in case of default. This can affect the overall cost and approval of your mortgage.

Understanding these criteria can help you prepare and improve your chances of getting approved for a mortgage loan.

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