FHA Loans Are Being Looked Over for A Clean Sale

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For home buyers who are facing challenges and barriers, FHA loans provide mortgage insurance to make buying a home more accessible. These loans are a type of federal assistance. FHA loans allow home buyers to finance homes with down payments as low as 3.5%. These types of loans are often very popular with first time home buyers that may need a little more help if they don’t have enough money in their pockets.

The reason that FHA loans are popular for first time home buyers or low-to-moderate-income borrowers is because they require a lower minimum down payment, as low as 3.5%, and lower credit scores than conventional loans.

As of 2021, the requirements for FHA loans are to have a greater than 580 credit score, a down payment of 3.5%, a debit/income ratio of less than 43%, and mortgage insurance. If you have a credit score less than 580 but greater than 500, the down payment is 10%. Proof of steady income and employment are also required to obtain FHA loans.

With the strong nature of a seller’s market that we are in currently, homeowners are prioritizing other offers over others for an easy sale. Buyers are offering all cash offers, paying way above asking price, and waiving contingencies to have the best chances of getting the house in this very competitive market.

The reason why FHA loans might be phased out right now is because FHA appraisals tend to be stricter about home inspections when it comes to health and safety concerns. The trends of the market right now are sellers looking for buyers with more conventional mortgages because they tend to care more about the price, they can sell their house for and knowing the sale of the home will close.

In a seller’s market, the sellers have a big advantage when it comes to deciding who they are willing to sell their house to. Especially when the market is as competitive as it is right now, sellers want the easiest offer and the best price.

There are many contingencies’ buyers are waiving right now to help ensure that their offer gets approved such as waiving the inspection and appraisal contingencies. If a seller has an offer with contingencies waived or an all-cash offer, there is less for them to do so it’s the easiest option.

In this market, buyers are trying to steer clear of FHA loans and go with conventional loans because that might show they will actually go through with the sale and not back out.

In the meantime, buyers should improve their financial profile so when the time comes to getting a loan, they are able to get whatever loan they want

How to Tend to A Garden

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Gardening is a pastime that has been around for ages. Tending to your land and adding plants not only makes your home more inviting but gives you a sense of happiness.

There are a lot of things about your home that you may not be able to change with the snap of your finger and without spending a lot of money, but gardening is one activity that will change your home more than you may think. You can always change up your garden, moving plants to other places and putting in new ones where you think they may look better. Gardening is something that just keeps going on and on.

The first step for putting a garden in is to find a place in your yard, whether it’s the front yard or backyard, that you will see on a daily basis. Being able to see your garden will entice you to work on it more often instead of doing it once and forgetting about it. Before figuring out a place for your garden, inspect your yard to find the best places with the most sunlight. Sunlight is key to most plants. Along with placement of your garden, make sure you are able to run a hose to water the plants. Just like humans, plants need water and sunlight to thrive.

Plants need space to grow into. With that in mind, the plants you choose should be able to have enough space to fully grow. You can always carefully replant if there isn’t enough room, or you decide another place for them later.

Not only do you have to majorly consider where the physical plants should go, but make sure you buy soil that is rich in nutrients for them to be healthy and grow well. If you do not have that much room in the ground itself, consider using containers and pots for your plants. Many edible plants grow well in containers and pots outside of the ground.

Do your research to find out what types of plants grow and survive the best in your climate. You want to make sure the climate isn’t too hot but also isn’t too cold for your specific plants. Knowing your frost dates is essential so you do not freeze your plants and grow them in times of the year they are destined to die in. If you do want to keep a garden during the colder months, keep an indoor garden in a garage or another indoor space. This is also a way to keep plants alive by moving them inside before the first frost.

When choosing what plants to put in your garden, take a walk through your local garden center and see what sticks out to you. Did your eyes immediately go to a certain flower or vegetable? Did your eyes light up when thinking about a certain tree or brightly colored tulip? If so, do you research on how to tend to that specific plant and start the journey. You can either buy seeds or seedlings to plant, whichever you are more comfortable with and go from there.

Like humans, plants need to be nourished and fed as well. Invest in some plant food and after a few weeks, begin to feed your plants to help them grow and survive.

Remember to slow down and breathe when tending to your plants. This type of activity is not meant to be rushed but to be enjoyed. Take care of your garden and plants like they are your own.

Home Prices Continue to Rise as Unique Trends Make Way

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Home prices are significantly rising in this market. We are seeing existing home prices jumping to a new record high of $334,500, according to data from the National Association of REALTORS®. In comparison to the median price of newly built homes that are $330,800, according to U.S. Census Bureau data, it seems as though existing home prices are increasing but not more than newly built homes, despite what the data suggests.

Even though home prices are at a record high, it doesn’t seem to be scaring off home buyers. In fact, the annual price growth reached 17% in March compared to last year. Homes are flying off the market just even after a few days or a week if you are lucky.

All of this is coming from the boom that the pandemic has created with record-low mortgage rates and the demand to move with remote work becoming more normal. With the pandemic forcing people to stay home and in turn, forcing people to save money, people are flowing with cash and wanting to spend it on a new home.

Not only are people buying primary homes, but many buyers are also looking for secondary homes, or vacation homes. The number of buyers who locked in mortgage rates for second homes soared 178% year over year in April, marking the 11th straight month of 80%-plus growth, according to Redfin.

Redfin Chief Economist, Daryl Fairweather, explains that the increase in the buying of vacation homes comes from wealthy Americans working remotely and having the freedom of not being tethered to a specific location for work. This new “normal” is giving them the freedom and opportunity to buy vacation homes as they continue to earn money and work remotely.

If you are being beat out by all cash offers even if you are significantly going over the asking price, hang in there. People just want cash in their pockets and all cash offers are quick and easy. On the flip side, all cash offers highly increases your chances of winning a home in a competitive situation, by 290% according to Redfin.

With how hot the market is right now though, no one is guaranteed that their plan will work. Homes are going for thousands of dollars over the asking price, so it just depends on the situation of whether you are in good shape or not.

Even though the market is crazy and fast-paced these days, contact a real estate agent to guide you through the process with ease!

Tips on How to Get Your Home Ready for Summer

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With the summer season approaching fast and temperatures starting to climb, it’s time to get your home ready for the warmer months ahead. Getting ahead and starting preparations on your home for the summer early will improve the efficiency of your home and potentially save you money that would otherwise burn holes in your pockets.

Clean Your Gutters

The gutters on your home can be filled with leaves and other debris that could block and/or damage them. If your gutters are clogged, it may lead to water damage within your home so carefully clean out your gutters to avoid potential damage. Next time it rains, check for leaks and if there are any, patch them up.

Clean Walkway and Driveway

To spruce up the outside of your home, pressure-wash your walkway to get rid of any dirt and unwanted stains. If you have a brick walkway, replace any damaged bricks if need be, for safety and aesthetic reasons. If you have a concrete walkway, fill in any cracks with crack filler that matches the color of your walkway.

Prep and Clean Windows

Check your windows for any cracks and caulk any gaps in the framing. Doing this will ensure that hot air will stay outside, and your cool air conditioning air will stay inside where it should be. Check to make sure your windows open and close properly. To clean your windows, use a vinegar-ammonia mixture first and then water only. Use a squeegee to properly dry without leaving streaks.

Inspect Your Roof

If you are able to, hop on a ladder and climb up to your roof or stand back on your lawn with a pair of binoculars and inspect for any damage or missing/cracked shingles. If there is any damage, call a roofing company to come and fix your roof so you don’t have to worry about potential water damage.

 Refresh or Update Outdoor Furniture

It’s time to take those covers off your outdoor furniture or take them out of storage. Dust the tables and chairs off and inspect the furniture for any needed repairs. If your old outdoor furniture is beyond repair or you are looking to refresh your outdoor living space, replace your outdoor furniture all together for a whole new summer look!

Spruce Up Your Front Door

Splash some color onto your front door by hanging decorative elements. Planting some inviting flowers or simply putting potted flowers by your front door will give the front of your house a warm and inviting sense to it during the summer months. While you are sprucing up the front door, make sure to check for and caulk any gaps and tighten the hinges with a screwdriver.

Spruce Up the Exterior of Your Home

Inspect your home for any chipped paint or broken shingles/sidings. Power wash the outside of your home if mildew and dirt has accumulated. If the paint job is minor, only fix the portions that are chipped or peeling. If the paint job is major and all over, a full repaint or repair may be necessary.

Overall

Summer is quickly approaching and to ensure your home is aesthetically pleasing and working properly and efficiently, follow these tasks as much as you can. Hire a professional for most if you can afford it. Start on these tasks now so your home is ready for summer!