Navy Fellas Realty Group

Real Estate, Residential sales and purchase

What Is an Assumable Mortgage Loan: What You Need To Know

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What Is an Assumable Mortgage Loan: What You Need To KnowEverything has its benefits and drawbacks, and that includes mortgage loans. There are plenty of options available, and you need to find the best one to meet your needs. You have probably heard about conventional mortgages, FHA loans, and even VA loans. On the other hand, have you heard about assumable mortgages? What do you need to know about this option, and how do you know if it is right for you? 

An Overview Of An Assumable Mortgage

So, what is an assumable mortgage loan? This means that the buyer is responsible for taking over the mortgage obligations of the seller. One of the biggest advantages of this is that the buyer can use the seller’s interest rate and terms. For example, if you have noticed that interest rates have gone up significantly between now and when the seller took out his or her mortgage, you might decide to take on the seller’s interest rate instead of getting your own interest rate. 

How An Assumable Home Loan Works

Now, it is time to take a closer look at how this works. Even though you might want the interest rate that the seller has, you still need to compensate the seller for the equity that he or she has built up. For example, the loan may only have a balance of $200,000, but the seller has already put in $100,000 of equity. As a result, you will either have to take out a second mortgage to cover the $100,000, or you will have to pay the seller $100,000 in cash. Even though you might have to take out a second mortgage for the remainder of the balance, the rest of the mortgage will still have the original interest rate, which could be lower. 

Are All Loans Assumable?

Not all loans are assumable; however, there are some examples of loans that are. For example, FHA loans, VA loans, and USDA loans are assumable. If you want to assume a USDA loan, you have to meet the qualifications to take out a USDA loan. VA loans are only available to veterans, but non-veterans are allowed to assume VA loans, which could help them save a significant amount of money.

 

What To Know About Living In A 55 And Up Community

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What To Know About Living In A 55 And Up CommunityAre you thinking about moving in the near future? If you are approaching your golden years, you might be able to move into a community specifically designed for people 55 years of age and older. What are some of the top reasons to consider this type of community? 

No Maintenance To Worry About

One of the biggest headaches of owning a home is the maintenance that goes along with it. As you get older, you might find that the maintenance gets more difficult, but in a 55 and up community, you might not have to worry about this. Many older communities have teams on staff that will handle the maintenance for you. This could include not only the landscaping but the interior maintenance as well.

A Variety Of Amenities Are Often Available

You might also get access to a variety of amenities in a 55 and up community. For example, if you like to go to the gym, there might be one in your neighborhood. Or, if you don’t want to cook, there could be a dining hall or restaurant in the neighborhood. Of course, you can also live your life in peace, as children are typically not allowed to live in the community. 

Homes Designed To Help You Age With Grace

Finally, many of the homes in a senior living community have been designed to help you age with grace. There might be railings throughout the house to help you keep your balance, and there probably won’t be as many stairs in the home. The floors throughout the house might also be designed with a bit more grip to help you keep your balance and prevent falls from taking place.

Consider Moving To A 55 And Up Community

These are a few of the most important points to keep in mind if you are considering moving to a community for people 55 years of age and older. They might not be right for everyone, but they do come with a host of benefits and amenities. Consider taking a look at some of the communities in your area, and partner with an expert who can help you find the right house for your needs.

What To Know About Living In A 55 And Up Community

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What To Know About Living In A 55 And Up CommunityAre you thinking about moving in the near future? If you are approaching your golden years, you might be able to move into a community specifically designed for people 55 years of age and older. What are some of the top reasons to consider this type of community? 

No Maintenance To Worry About

One of the biggest headaches of owning a home is the maintenance that goes along with it. As you get older, you might find that the maintenance gets more difficult, but in a 55 and up community, you might not have to worry about this. Many older communities have teams on staff that will handle the maintenance for you. This could include not only the landscaping but the interior maintenance as well.

A Variety Of Amenities Are Often Available

You might also get access to a variety of amenities in a 55 and up community. For example, if you like to go to the gym, there might be one in your neighborhood. Or, if you don’t want to cook, there could be a dining hall or restaurant in the neighborhood. Of course, you can also live your life in peace, as children are typically not allowed to live in the community. 

Homes Designed To Help You Age With Grace

Finally, many of the homes in a senior living community have been designed to help you age with grace. There might be railings throughout the house to help you keep your balance, and there probably won’t be as many stairs in the home. The floors throughout the house might also be designed with a bit more grip to help you keep your balance and prevent falls from taking place.

Consider Moving To A 55 And Up Community

These are a few of the most important points to keep in mind if you are considering moving to a community for people 55 years of age and older. They might not be right for everyone, but they do come with a host of benefits and amenities. Consider taking a look at some of the communities in your area, and partner with an expert who can help you find the right house for your needs.

The Top Reasons To Stop Renting And Buy Today

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The Top Reasons To Stop Renting And Buy TodayBuying a house can be expensive, and it can take a long time to save up money for a down payment; however, it might be time for you to stop renting and buy your own place. What are some of the top reasons why it might be time to put down some roots?

Your Rent Is Going Up

The reality is that your rent will go up with time. Every time you renew your lease, it can be frustrating to see that rent check continue to increase. If you are tired of your rent going up, get a mortgage. You could lock in the same payment for 30 years.

You Are Going To Stay Put For A While

Are you planning on staying put for a while? If so, you don’t have to worry about buying a selling a house too quickly. Go ahead and purchase a house! You are going to be here for a while anyway, so you might as well get a stable mortgage.

You Don’t Want To Pay Someone Else’s Mortgage

Did you know that you might be paying someone else’s mortgage with your rent check? Why not use that money to pay off your own mortgage? After all, there’s no reason why you should feel obligated to use your money to pay down someone else’s home loan.

You Want To Build Wealth

If you want to build wealth for yourself and your family, one of the best ways to do so is to own property. Your property should go up in value over time, and 100 percent of the capital appreciation is yours because the value of your loan will remain the same, regardless of the capital appreciation of your house. If you want to build wealth, owning property is one of the best ways to do so.

Stop Renting And Buy Today

Clearly, there are plenty of reasons why you might want to stop renting and consider buying a house. You need to work with an expert who can help you find the right loan option to meet your needs. There are attractive opportunities out there, so if you are ready to build financial wealth, consider buying a house today.

Getting A Mortgage When Self-Employed: What You Need To Know

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getting-a-mortgage-when-self-employed-what-you-need-to-knowThere is a common misconception that someone who is self-employed will not have the tax records or income necessary to qualify for a mortgage; however, that is not necessarily the case. In reality, if you are self-employed, there are a lot of home loan options available to you. It is true that it might require some additional paperwork and planning, but as long as you have the necessary information, you should be able to qualify for a mortgage. 

What Is Necessary To Qualify For A Self-Employed Mortgage Loan?

If you are interested in taking out a mortgage when you are self-employed, you will be held to the same standards as everyone else. This means that the lender is going to require a solid credit score, a long credit history, a favorable debt-to-income ratio, and enough money to cover the down payment. In addition, you will also have to demonstrate a solid income history, just like everybody else. 

That is where the difference comes into play. A W-2 employee may be able to provide a few pay stubs, but someone who is self-employed may be required to provide up to two years of self-employment income. 

How Do I Maximize My Chances Of Getting Approved?

If you are self-employed and want to maximize your chances of getting approved for a self-employed mortgage, there are a few steps you should take. First, you need to make sure your debt-to-income ratio is as low as possible. That way, you can reduce the risk to the lender. You can also improve your chances by preparing financial documents ahead of time. That might mean including profit and loss statements, two years of tax returns, and 2 years of business taxes if you have them. Do not forget that improving your credit score and putting more money down can improve your chances of getting approved. 

Lengthen Your Income History

Finally, if you are serious about getting approved, lengthen your income history. Show that you are willing to provide a longer track record of income, and the bank will feel better about providing you with a self-employed mortgage loan. That way, you have the financing to purchase the house of your dreams. 

 

VA Loans: Are They Assumable?

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VA Loans: Are They Assumable?Members of the military, their family members, and veterans have access to a unique mortgage option called a VA loan. This can be a strong option because it provides borrowers with an opportunity to purchase a house for less than 20 percent down. While not everyone is eligible for a VA loan, there are a lot of people who are wondering, are VA loans assumable? There are a few key points to keep in mind.

What Is An Assumable Loan?

An assumable loan means that the buyer is essentially going to take over the mortgage held by the seller. Essentially, this means that the buyer is going to take over the remaining balance of the loan as well as the interest rate attached to that loan. The buyer will have to compensate the seller for any equity the seller has already accumulated. This means either providing the seller with cash for his or her equity or taking out a second mortgage to cover the difference. The biggest advantage of assuming a loan is that you may be able to secure a lower interest rate than you would in the current market. 

Who Can Assume A VA Loan?

The great news is that a VA mortgage loan is assumable. Even though a VA loan is only available to retired service members, active service members, and members of their immediate families, anyone the lender qualifies to take over the loan can assume it. In general, this means that the buyer needs to have a credit score of at least 580 and a debt-to-income ratio of 45 percent. The buyer and seller must also have at least 12 months without any missed payments. Finally, the person assuming the loan must also occupy the property and the buyer must be willing to take over the terms of the original loan.

Should I Assume A VA Loan?

Assuming a VA loan could be right for you because you can access a lower interest rate and potentially save thousands of dollars on closing costs and expenses if you do not have to take out a second mortgage. On the other hand, this also means that you might need to put more money down to compensate the seller for his or her equity. 

 

The Cost Of Building A House

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The Cost Of Building A HouseAre you in the market for a new house? If so, you might be thinking about building your own house. It can be exciting to go through the process of building a house, as you will be in control of just about everything. On the other hand, how much is it going to cost you to build a house? You need to make sure you have an estimate before you decide to move forward with your project. 

What Is The Actual Cost Of Building A House?

First, it is important to go through the actual itemized list line by line. You will need to purchase land if you are interested in building a house. Then, you need to lay the foundation. The price of all of these options is going to vary depending on your location and the square footage of your foundation overall. 

You will also have to go through the process of framing your house, and you will need to put a roof on your house. Then, you will need to purchase appliances, utilities, and various finishes and fixtures along the way. Remember that you will also have to apply for permits from the city.

What About Financing A New Build?

If you are building your house, you still have the option to take out a mortgage; however, you need to specify when the interest rate on your construction loan is locked in. It will be a process to finish the house, and interest rates could change during the course of the construction. The mortgage company will want to start earning interest as soon as possible, so you will need to negotiate both with the lender and the construction company to ensure you understand the terms.

You will also have to go through the same vetting process as you would for any other mortgage. You need to make sure you have favorable credit, enough income to cover your housing payments, a low debt-to-income ratio, and a sizable down payment. If you are interested in building your house, you will probably be required to put 20 percent down, but if you are willing to put more money down, you may be able to qualify for a lower interest rate. 

Should You Sell Or Rent Your Primary Residence

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Should You Sell Or Rent Your Primary Residence Are you interested in purchasing a rental property? Instead of buying a new one, you might want to convert your primary residence into a rental property, particularly if you plan on moving in the near future. At the same time, you might think it is better to sell the property and take the cash instead. Which option is best for you?

Potential Issues Converting Your Primary Residence To A Rental Property

If you want to convert your primary residence into a rental property, there are a few important issues to keep in mind. First, you must make sure you have lived in the home long enough to qualify for beneficial mortgage rates. Because the property is your primary residence, you probably received a lower interest rate. Check your mortgage contract and make sure you have lived in the property long enough to convert it to a rental property. You don’t want to be accused of mortgage fraud.

Also, remember that your real estate taxes might go up if you convert your primary residence into a rental property. You qualify for lower real estate taxes if you live in the home you own. Once the government realizes you no longer live there, your real estate taxes could rise. 

The Benefits Of Converting It To A Rental Property

If you can navigate these issues, there are a few benefits to converting your primary residence to a rental property. For example, you will have an additional, reliable stream of passive income that you might be able to use to qualify for your next mortgage. Furthermore, the amount of money you may charge for rent could go up over time.

You can hold the property for a longer amount of time, so you will enjoy additional capital appreciation. That means if you wait longer to sell the property, you should get more money for it. 

Think About Your Choices Carefully

You should think carefully about whether you want to sell your primary residence or convert it to a rental property. Each option has its benefits and drawbacks, and you need to think about which choice is best for your needs. Do not hesitate to reach out to an expert who can help you. 

House Poor: What It Means And How To Avoid It

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House Poor: What It Means And How To Avoid ItThere is a good chance you have heard someone described as being house poor. What exactly does it mean? It is important to understand what it means to be house poor and how you can stay away from it.

House Poor Means Spending A Significant Chunk Of Your Income On Housing

Being house-poor means different things for different people. In general, it means spending a significant amount of your monthly income on recurring expenses related to your house. A few examples include your mortgage, the interest on your mortgage, your property taxes, and HOA expenses. Owning a house can be expensive, and it is important for you to budget carefully. In general, you could not spend more than one-third of your monthly pay on your rent or your mortgage. If you are spending significantly more than this recommendation, you might qualify as house-poor. 

How To Avoid Becoming House-Poor

Fortunately, there are several strategies you can follow if you want to avoid becoming house-poor. First, make sure you budget ahead of time. Understand exactly how much money you can spend on your home, and make every effort to stick to that number. Furthermore, before you purchase a house, make sure you get a home inspection completed. There are a lot of people who have their savings wiped out by unforeseen expenses. If you get an inspection before you buy a house, you can plan for those ahead of time. Finally, make sure you reduce your debt-to-income ratio before you buy a house. That way, you can qualify for the best home loan possible.

Do Not Spend More On Housing Than You Can Afford

In the end, it is critical for you to avoid spending more money on your house than you can afford. Remember that you should not spend more than one-third of your monthly pay on housing. If you do, your budget may be stretched thin and other areas, and you might have a difficult time covering other expenses. Do not hesitate to reach out to an expert who can help you find the right house for yourself and your family.

 

How Do You Actually Write The Check To Buy A House?

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How Do You Actually Write The Check To Buy A House?After you have found the right house to meet your needs, you need to make the down payment to complete the transaction. Can you show up at the closing table with a suitcase full of cash? Of course, that would be a bit suspect, so that is not actually how it happens. What do you need to do to actually hand over the funds to buy the house? 

The Down Payment Is Verified Beforehand

First, understand that the down payment is usually verified before you agree to the deal. Your real estate agent will work with you and the seller’s agent to ensure that you actually have the funds needed to buy the house. For example, you might need to send screenshots of your bank balance or investment portfolio as proof that you have the money. Your agent will work with you to ensure your confidential information remains so.

The Funds Are Typically Given Using A Wire Transfer

When it is time for you to complete the actual transaction, the real estate attorney will handle just about everything. The attorney will be responsible for collecting the money from the sale and ensuring that everyone gets the money they are owed. The attorney will provide you with the account information for where you need to wire the money. Prior to the closing date, you need to go to the bank and work with one of their experts to ensure the money is in your account and wired to the correct account destination.

The Real Estate Agent Will Confirm The Process Is Done

It is best not to wait until the last minute to wire the money into the account. Try to do this process ahead of time, and make sure either the attorney or your real estate agent says that the process has been completed. You do not want to run the risk of missing your closing date. If you have questions about the process, make sure you give the attorney’s office plenty of time to respond to you.

Determine Your Budget With The Help Of Your Real Estate Agent

This process is important for making sure you can afford the house you want. Work with your real estate agent to ensure you have the necessary funds for the down payment.