When It Comes To Shopping For A Condo Do You Know What To Look For

If you are currently on the fence to purchase or not to purchase you better get off that fence quick rates will only be this low for so long.  The values and the interest rates are right now at all time lows, you cannot ask for more just take a look at the prices of the homes in Goleta in the Goleta real estate market.  Other than a free home you can not ask for better buying market.  In any case if you are prepared to try to qualify for one of the many home loans on hand for first time home buyers, just get acquainted with how things work.  You could be considering your options about buying a condo vs. a home because condos are usually cheaper.  As some condos are really eye-catching especialy to those who do not like yard work.  Since condo’s really have no little to no yard.Financing for condos for first time home buyers can be a little tricky.  Some first time home buyers when they start considering buying a home.  With condos being cheaper than homes, people start considering them seriously. Finding the down payment is not as hard.  Just don’t forget that with condos you will get to pay a homeowners Association fee that can be as little as $100.00 to as high as $400.00 depending in your area. Due to the price difference, a down payment is always easier to come up with inspite of the fact that it may come up to as much as owning a home when you factor in the over all payment.Since the HOA payment is added to your over all debt ration, it can be a deciding factor that could decide your qualification for financing.But the most important question is..
Will that condo get FHA financing?

The reason being that you would have to pay more if it does not.  Usually a minimum of 10% down payment vs. 3.5 % down payment, for a FHA loan.  So since you may not have that kind of money to put down, rather than wasting your time, you could go to this website and check whether that condo complex is on the FHA website. Condiering a $100k condo, $3,500 does not seem much.00 than it is $10k, and DO NOT FORGET THAT THIS DOES NOT INCLUDE THE CLOSING COSTS AND IS JUST THE DOWN PAYMENT.   Using this example would mean $10,000.00 in addition to the closing costs.
If you wish to know whether your condo complex is approved or not, just go to this link, https://entp.hud.gov/idapp/html/condlook.cfm

Once you are at the website – The Condominiums page allows users to inquiry for FHA-approved condominium projects by location, name, or status.  The search can be configured to find specific types of projects through the use of the pull-down menus and entry fields. My suggestion would be that you click on the pull-down menu and choose ALL in the status menu (last one).  Projects can have their FHA approval withdrawn for various reasons and you will need to know that information.  Real estate market is presenting itself to be one very good buyers market even in the Goleta homes for sale you can find some very good deals.  Each market is different and the current real estate market has many choices to accept from.  Take a good look at all the condos that exist in your area.  The FHA approval is very vital for the complex in case you are trying to get an FHA loan.  Or else this could just be a total waste of time.

Do You Want Tips For Successful House Flips

Beginners in the business of house flipping, can get themselves in situations that can be a little scary if they make the wrong choices. Most of the time, you’ll feel a bit uneasy or a lack of self-confidence in the first flip, but as time goes on, you’ll be able to master the strategies and processes making you stress-free in doing it.  Some of the homes in Santa Maria that are for sale in the Santa Maria real estate market are actual flips and homes that have been rehabbed.  But just remember every step is a learning experience which will boost your self-esteem, make you optimistic and enable you to succeed. To start achieving success in the house flipping industry, you must start to follow some helpful tips in order to prevent failure regrets and failure in premier flippers.

First, you have to set the appropriate value on the property you are planning to flip and view it in relation to other houses in the same location, with a higher level condition and of the same size. You don’t need to purchase the most beautiful property, instead select one that is distressed and find the best and cost-effective ways to make it eye-pleasant and stylish. Take time to ask your appraiser about things that you want to know such as the home’s existing real value and the value of the property after improving it through renovations or remodelling.

Second, you have to be courageous to gain the interest or admiration of buyers. The business of house flipping is a risky decision to make especially for beginners. But playing too safe will not enable you to reach the goals on your list. All you have to do is to be wise in managing your budget and controlling your expenses without compromising the beauty and quality of the property that you intend to attract a buyer.

Third, a positive attitude or a belief in your self is essential in succeeding. You have to converse with the persons who will inspect the property and the contractors including other experienced flippers for you to be able to make your venture profitable. Trust in your self plays a big role in your success in flipping houses. Make sure to do monitoring of renovations to ensure that you are spending the right amount of money in improving the property. But this doesn’t mean that you should neglect experts’ recommendation in problems with regards to structures of the property to be sold.

Fourth, you must have a firm intention or determination that you can complete the project in flying colors. Being a house flipper is not an easy job to make profit. If you really want to generate a high income, you should tell yourself that you are determined enough to finish the flips with a positive result.

Lastly, you have to feel the excitement. It is one of the most important factors the process of flipping houses. It will give you relief despite of issues that may arise in restructuring the property.  Before you know it you will be flipping homes in Santa Maria or where ever you choose since these prinicples apply every where.

These helpful steps will surely guide you towards successful house flips! Keep them in mind and you’ll be the one to experience the benefits in the end.

How You Need To Go About Buying A Manufactured Home

With the condition that you happen to be a budget-minded homebuyer, there is a strong possibility that you would like the concept of a manufactured home.  Some of the homes in Santa Maria are manufactured homes and you need to get financing a little differently than a regular home.  First thing first you ought to get approved for a mortgage first and that is definitely not simple in the current economic climate.  Even though many of the Santa Maria homes are bargain priced and in many parts of the country financing can still be tricky.

Supposing that you happen to be a budget-minded homebuyer, there is a strong possibility that you would take an interest in the concept of a manufactured home. But for this, you need to acquire a mortgage first and that is definitely not simple in the current economic climate.

Getting a mortgage for a manufactured home can be a touchy proposition in comparison to a conventional home. It is worthwhile mentioning that plenty of financial institutions do not deal with the manufactured housing loans. You want to have a good credit rating if you have any intention of qualifying for manufactured housing loans.

There is a good number  of ambiguity on manufactured housing,  Which is quite a number of times applied to any house with pre-made parts. Manufactured housing or even mobile homes are completely factory built homes that includes one or more units in addition to a steel frame.  The reaity is most of the homes in Santa Maria are not manufactured homes so it can be a litte more complicated and tricky in getting the financing for these homes than a regular home.

Be ready to pay a much higher interest rates regarding a manufactured home loan because these homes are treated more similiar to personal property.  Good news is that both the FHA also VA provide financial backing for these houses. You will discover distinction within the guidelines of FHA relative to the basis of your purchasing plan. The loan term in this scenario is going to be 15 years. 

The VA gives homebuyers an opportunity to borrow up to 90 percent of the buying price of a manufactured house, nonetheless local loan limits are going to play a part in this regard. In bona fide terms, FHA does give permission of down payments of as little as 3.5 percent, but majority of financial institutions will want at least 10 percent down.

Provided that you are looking for a much preferred interest rates, it is preferred that you have rights the land where the manufactured house is going to be located and treat it as a permanent foundation. By taking this avenue, You are not at all going to face any trouble in procuring a Real Property loan. The preferred part with reference to this is that it will assist you in procuring a tax credit in regards to your interest payments.  In case if you are renting, the buying of the place may  come under the category of a Personal Property loan and for that reason you get a preferable rate compared with if it were an investment loan in the form of interest payments.

Majority of financing for manufactured houses is arranged with the help of retailers of such homes. There is also a possibility that you can get financial backing through an independent financial institution, but for that you ought to solve the criteria of a permanent foundation.

Should You Comprehend How Much Of A Deposit To Make When Writting An Offer?

Generally when you make an offer regarding a place that is for sale you will need to write out a check which will be considered Earnest Money Deposit.  Its part of making a contract a contract as well as showing that you have some kind of monetary consideration involved.   This is one of the first realities of when money starts to come into play when buying a home whether it be one of the homes in Santa Maria for sale or anywhere.  First off the deposit must not be made out to the seller or even to your agent or even the other agent involved.  The best idea to do is to make out the check to a 3rd party now this is where your escrow comes in.

Sometimes when you make an offer relative to a place that is for sale you will need to write out a check that will be reagarded as Earnest Money Deposit.  Its part of making a contract a contract as well as showing that you have some kind of monetary consideration involved.   Now the deposit ought not be made out to the seller or to your agent or even the other agent involved.  The preferred suggestion to do is to make out the check to a 3rd party now this is where your escrow comes in.   This keeps every factor much less delicate and keep in mind that your check is simply to show that you are able to make the deposit in the said amount.  It does not at all suggest that your check will be cashed until your contract is approved in addition to you will be opening up escrow.   Ordinarily your broker choose to hold on to the check until your offer is approved and then he will be accountable to delivering the check to the escrow company that you will be utilizing for the escrow transaction relative to the house you are trying to purchase.

The size of the deposit can vary as small as $1,000.00 or as much as your actual down payment if you are procuring a loan or as much as you like assuming that you are acquiring the home in cash.  Many of the Santa Maria homes for sale in Santa Maria, California for example are under $200,000.00 and 1% is usually acceptable.  The the matter of fact is the larger the amount the more of a serious buyer you will appear to be and willing to put up until the close of escrow.   Keep in mind that your deposit is actually going to be part of your down payment so its not something extra and beyond that you have to come up with to acquire the house.

Just keep in mind you may lose the deposit  with the condition that you the buyer fail to act to close the transaction.  But now there are exceptions you could go into escrow for instance.  Here is where your contingencies come into play such as your inspections in addition to your appraisal, basically that you have no issues even with the property or any current terms.  in any case lets say that there are repairs that come into play and then you as the buyer in addition to the seller may not be able to  come to stipulations of those repairs.  Then the cash could be returned to you as long as both you in addition to the seller agree relating to the release of those funds.

Also remember when you are first making an offer in addition to submitting a deposit that this is part of the negotiations.  So the seller may come back for instance along with other stipulations prior to taking your offer to request a higher deposit.  For example you may make an offer on a @200,000.00 in addition to make a deposit of $2,000.00.  The seller could ask that you increase your deposit, that being said you could also come back on a counter offer to offer less than their request or that it stays the similar.

The amount of the deposit will be determined by the climate of the market as well as terms of the purchase.  Good luck pertaining to acquiring your house there are after all a good percentage of grand deals out there.

It Is Okay To Buy A Home After Bankruptcy

 

Have you ever experienced bankruptcy lately? You might be wondering if you will still be able to get a home loan. You may also be wondering if buying home after bankruptcy is a good idea for you.  Many first time home buyers learning how to buy a home after doing a Bankrupcty worry about this.  Reality is that many looking to buy one of the homes in Santa Maria have been in that situation as well.

Most of us always think that bankruptcy is the end of our credit life. But don’t be in despair because some people that have been in to bankruptcy have been able to get up again and rebuild their credit quickly. Most of them have even been able to buy a new house. This is happening mostly because bankruptcies are still on the rise and there are increasing number of people with bad credit who are looking for home financing.

Although it may be difficult to find a bank to give you a mortgage it’s certainly not impossible. Banks want to make money and you may find one that’s willing to take the risk. Bankruptcy can make your mortgage loan approval difficult, but it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.

There are some lenders whom you can approach to, they are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy. Just to give you a bit of an overview here are some very good reasons to consider buying home after bankruptcy:

1. It Increases your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate. After your bankruptcy has been ended for 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.

2. You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working your way towards owing an asset.

3. Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.

4. Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.

It is very tempting to buy a new home, new car, do some renovations, etc., after bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment due to the financial experience that you have.

But it is not that easy so here are some factors to consider before committing yourself to a new house payment.

1. The Pre-payment Penalty- this penalty is usually about 6 months worth of house payments. And usually lasts from 2-3years. Once you sign those mortgage papers you absolutely have to make those payments. If you don’t have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.

2. The Two-Year Mark- keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty. So, if you are within 6 months or so from the 2-year mark, it would be smart to wait it out and have more mortgage loan options.

Borrowing too much is the most common mistake that we usually get into. If you do decide to buy a house, buy one that you know you will be able to afford. Don’t sail yourself through on credit, be inherent in living right up to the edge of your income. If your income suddenly drops, you’ll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.

Bankruptcy will show up on your credit report for 10 years. That means that every mortgage lender will certainly see that fact when evaluating your mortgage application.  But don’t let that stop you from getting your credit in order and taking advantage of the deals in the Santa Maria real estate market as well as today’s real estate market with the low interest rates its a great time to be looking.

 

Rebuilding Credit And Buy A Home After Bankruptcy

Bankruptcy can provide liberation to people in terrible financial strains by releasing them from the obligation to repay their debts. Any one that is trying to learn how to buy a home in the Santa Maria real estate market stresses over whether a bankruptcy will stop them from buying a homeIt’s a drastic move for anyone because bankruptcy will stay on a person’s credit rating for up to 10 years, effectively acting like a warning flag to anyone considering lending that personal money or a line of credit.

The good news of having a bankruptcy record on your credit report does not mean you can’t buy a home. Believe it or not, people who have gone through bankruptcy have been able to encouraged themselves to build credit by taking on debt again. But the bad news is that the debt will be closely scrutinized and may come in smaller amounts and high interest rates. This usually happens because when you experience bankruptcy you are now tagged as high-risk borrower. But these negative thoughts rather facts should not dishearten those with deprived credit account from investigating their home loan options. The conscientious use of credit is the only way up from a bankruptcy filing.

In order to mitigate the risk of providing someone a loan, the lender will charge higher interest rates than they normally would. For instance, an auto loan that might ordinarily carry six percent interest could come with an interest rate of eight percent or higher, but as time passes and small loans and credit card balances are paid off on time, the bankruptcy filing becomes less and less significant to a lender.

However, establishing good credit after bankruptcy is essential. The following will help recent bankruptcy filers regain their financial strength:

Pay bills on time- this is the single and best thing bankruptcy filers can do to build up their credit rating.

Acquire and use a secured or unsecured credit card – just don’t charge any more than you can afford to pay off each month.

Read your credit report- errors are possible, and keeping tabs on your progress will help you stay focused on the goal of rebuilding after bankruptcy. Mortgage companies would want someone with a reassurance that is on safe and responsible track. Many lenders prefer to see three things when considering loaning money to someone following a bankruptcy. First thing is a long stretch preferably two years or more of on-time bill payments. This may be hard due to the case of reliable income. Likewise, with a steady work history and a down payment, even a small one, it would not be impossible for someone just coming out of bankruptcy to secure 100-percent coverage on a home loan.

A down payment is the second thing and a steady income coming in on third. Well this isn’t much as hard as the first one since. Some lenders will be willing to provide a loan sooner than two years if there is evidence of responsible bill payment on a car or secured credit card plus reliable income.

Just keep in mind that after experiencing bankruptcy, buying home is no longer impossible. There are many reasons a person chooses to file bankruptcy. The loss of a job, unexpected medical bills, and overwhelming credit card debt are just a few of the factors that can lead to filing bankruptcy. The mortgage lending industry has created special loan packages and terms for those who have filed bankruptcy in the past. Lenders have little to lose in approving a home loan after bankruptcy. With your home serving as collateral for the loan, the lender can feel confident in approving you for a home loan, often soon after your bankruptcy has been discharged.

In summary, cash will solve this problem, for sure and you wil be shopping for one of the homes in Santa Maria to purchase in no time. However long it takes to gather that cash is how long it will take to get the house. You can start thinking about how you can make money in your spare time, selling on line at eBay, doing freelance work, or starting your own business. You can increase your chances by coming into the deal with a lender with as much cash as possible. The more money you can use as a down payment, the less risk for the bank. There is a level where they’ll lend you the money because the loan is secured by the house and the house is worth more than the mortgage.

Are There Signs That The Real Estate Market Is Recovering?

 

One of the American’s greatest dreams is to own a decent, modest and comfortable house where they can live with satisfaction while spending quality time especially with people they care about. Having two to three kids for an ideal family size, comfortable job, a car to drive daily in going to work and anywhere. It is a reality for a large number of families in the US that this dream is now becoming difficult.  Even for many in the Santa Maria real estate market trying to purchase one of the Santa Maria homes for sale.

The United Census Bureau reveals that 49 out of 50 homeowners are spending a larger and larger amount of their income for housing units than in the previous years. This increase had been true to most of the states in the US except for Alaska which didn’t show any increase. The report also reveals that people are spending 21% of their income for housing needs. This shows an increase of 2% from that of 1999 at 19%.

While everyone seems to be in agreement that the housing fizz is either bursting, or getting ready to burst depending on where you live, housing prices are still up by a remarkable 32 percent since the beginning of the decade. This increase has created a huge problem for first-time buyers who may now be priced high out of housing markets all across the country. Economists point to increasing price for housing units over the last 7 years, as well as the higher interest rates, coupled with stagnant wages over the same period.

Maybe the worst part in the report was the large percentage of people who allocates more than 30% of their income for housing. This figure shows an increase of almost 8%. National guideline reveals that spending more than 30% of their household income for housing needs is excessive and not financially healthy. Thus, this guideline promotes a guideline of 30% of household income as the upper limit of affordability.

Affordability means that a household can meet the requirement of not more than 30 percent of its income for housing. Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care.

Household incomes, on the other hand, have not increased during the period. The same Census report showed that income has actually dropped by 2.8% for the past 7 years. Housing prices tends to grow faster than the family income that caused the slower demand for housing units. Households that spent more than 30% of their income may be led to creating more problems in the future. Since many are spending a greater amount of their income for housing units, this may lead to generate more debts for people of average income in order to cater to their other needs such as education, health, and clothing, among others… especially so if the housing unit that one buys is payable for a number of years.

The lack of affordable housing is a significant hardship for low-income households preventing them from meeting their other basic needs, such as nutrition and healthcare, or saving for their future and that of their families. Worst is, the buyer may not be able to pay his/her housing loan that would lead to its foreclosure and eventually would cause the real estate market to its downfall.  Reality is that during this ecnomic times those that are trying to learn how to buy a home will have a harder time then those only a few years ago.

Most experts agree that until income can not compensate with the rising cost of housing units, the real estate market will remain lifeless. And since real estate is one of the biggest drivers to the overall economy, a weak real estate market means a weak economy. This trend is becoming worst in California. Aside from the fact that they have the most expensive real estate in the nation, 48 percent of California homeowners spend more than 30% of their income on housing related costs.

Until income can begin to grow as quickly as the real estate market, this trend shows no signs of slowing down. This could mean that the upcoming real estate drop could last much longer than anyone predicted.

Did You Know That There Are Loans With No Money Down

A USDA Rural Development Loan is the way to go if you are interested in an economical and obtainable mortgage.  These are loans with NO MONEY down loans not all areas will qualify for these homes. For example the homes in Santa Maria do not qualify for them but only down the road in more rural areas will.  USDA loans are great loans for those just getting out there and trying to learn how to buy a home since it was a loan designed for those with limited resources.

Widely been regarded as a sibling to the FHA home loan program, you will find plenty of restrictions with USDA mortgages. But despite that, it provides certain benefits that you cannot find with FHA loans. The main advantage of USDA mortgages is that it gives you an opportunity to get a zero-down payment mortgage outside of the VA program that is applicable to military veterans.

Another significant thing to note about USDA Rural Development Loans is that it offers you 100 percent financing, with no need of down payment. Interest rates are pretty much in par with the traditional mortgages, although there is a provision of financing fee upfront.

You do not need to worry about the mortgage insurance but yes you do need to pay a yearly fee equal to 0.3 percent of the loan balance. Still it is lot less than the traditional mortgage. When it comes to your income and property types, USDA Rural Development Loans have stricter limits in comparison to FHA mortgages. As evident from the name itself, USDA Rural Development mortgages are only applicable to home buying in rural areas.

In terms of features, these loan packages are only offered to individuals that have low and moderate incomes. The USDA provides an online tool with the help of which you can get a clear idea of property and income eligibility that is associated with your state. With regard to property eligibility, you will find a map that will depict what portions comes under the category of rural. You will not find income limits list up front but yes by submitting your own detail, you will get an idea of whether you qualify or not.

There are no restrictions regarding the loan amount, although program guidelines need that homes purchased should not be lavish and are modest in terms of size and cost. Certain features like swimming pool are not allowed. To qualify for a USDA mortgage, you need to prove that you lack adequate housing at present.

To get the best out of the USDA’s Rural Housing Direct Loan program, it is quite important that your income is less than 80 percent of the local median. This program is tailor made for low-income borrowers. The Direct Loan program provides mortgage terms for more than 35 years on traditional homes or condos and 30 years on manufactured houses. To get USDA Rural Development Loans, you need to contact HUD-authorized lenders.  As well as verify that the homes you are looking at that the areas qualify for USDA financing as stated before not all areas do homes in Santa Maria do not but the small neighboring towns such as Nipomo or Guadalupe do so make sure you check the area as well.

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