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USDA Loans Aren’t Just For Farmers

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You wouldn’t be alone in thinking USDA loans were only for rural farmers.

The program is accessible through the United States Department of Agricultural. The Rural Development (RD), which was initially called the Farmer’s Home Administration, administers the program.

Russell Hood, an originator of the Meriden-based company Planet Home Lending, stated that about half of those looking for a mortgage through Planet Home Lending don’t know anything about USDA loans.

It is worth taking the time to find out if you are eligible. You might be surprised at who qualifies. USDA loans can offer many advantages over other programs if you’re eligible.

Most people are aware that USDA mortgages are intended for rural residents. Many people think they won’t be eligible because they don’t consider themselves rural residents.

The definition of “rural” can change between different government programs. For USDA loans, however, “rural” can be a surprisingly low standard. It refers to any town, village or city with fewer then 20,000 inhabitants that isn’t located in a Metropolitan Statistical Area. An MSA is defined by the Census Bureau as a group of counties that surround a city with more than 50,000 inhabitants.

There is also some flexibility for fast-growing areas to remain eligible for “rural” status for a period beyond these points.

This means that 97% of America’s land mass is considered “rural” to qualify for a USDA loan. According to a report, 34% of Americans live in an area eligible. Even suburbs outside of major cities like the western part of Olympia, Washington’s capital, and parts Long Island, New York, are eligible.

USDA loans can also be very useful in helping people who otherwise wouldn’t be able to purchase a home. To be eligible for a USDA loan you must be not eligible for a conventional PMI free mortgage. You’d need to pay a minimum of 20% down payment in order to achieve this, which many people don’t find realistic.

One of the greatest benefits of USDA loans is the fact that you don’t have to make any down payments.

If you are eligible, one final reason to consider USDA loans is that they don’t have as much impact on your finances than other government-sponsored mortgage programs. It’s often a better option if the income and property meet the USDA standards.

The upfront funding fee for most government-backed mortgages is usually 1%. This is lower than the 1.4% to 3.6% charge for VA loans, and 1.75% for FHA loan. FHA loans have an additional fee of 0.45% to 1.5%.

USDA loans are often offered at lower rates. This is partly due to the way RD works together with lenders to provide USDA Guaranteed loans. This is a bad term as it does not guarantee you will get a loan. The USDA “guarantees” up to 90% loan amount. In other words, if you default on your loan, the USDA will reimburse your lender up to 90%.

Although this guarantee does not directly benefit you, it can make things more affordable for you. Lenders are almost guaranteed to recoup some costs in one way or another. This means they can pass lower rates on to you. That could result in significantly lower monthly payment with USDA loans.

USDA Direct loans are cheaper than conventional mortgages. The fixed rates for low-income and very low-income buyers were set at 3.25% as of October 2022. This is compared to 6.65% for a conventional loan. The average USDA loan cost $178,400 in 2021. This is $380 less than what you would pay if you borrowed conventionally.

 

Original Blog: https://finance.yahoo.com/news/zero-down-usda-mortgages-arent-100000653.html?guccounter=1&guce_referrer=aHR0cHM6Ly93cmVuZXdzLmNvbS8&guce_referrer_sig=AQAAAEMfd_s6cf9cnjRg0x12RmnucbOROcR906XA3ztVq5J9aer0l4bSUkxUFB1PFtF6tNXBmMtHZDwWjWCjGfjlYJZKBRyn1jXmUAqGA9qW95XW9lRqq1wR2LFGKnvTYJ2r3MZWVV0zD9OAkyxJbok30FkWB5tB8zeonGDjhM1ifUgf

 

How Lenders View and Treat Financial Gifts

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You might consider asking your parents for some help in buying your first home. Lucky you! The biggest hurdle for most homebuyers is securing the funds to pay the down payment and cover closing costs. However, a little financial help can go a long ways in obtaining a financial boost. It is important to understand how lenders treat financial gifts before you apply for a loan. What’s important?

Lenders will need to verify that the financial gift is legitimate. The lender will match what appears on your paycheck slips with deposits verification from your bank statements if you submit your bank statements. Deposits should appear on the dates you receive your pay, i.e. if you are paid on the 15th and 1st. If you receive a financial gift, however, the money will appear in your account. Lenders will need to know the source of this irregular deposit.

Lenders want you to be sure that the money in your bank accounts is not from a loan. You will have to repay the loan in either monthly installments or one lump sum. This can impact your ability to repay your mortgage, and at the minimum, increase your debt-to-income ratios.

Family members, qualified non-profits, and life partners are all eligible sources for gift funds. No matter what source you may be, you will need to submit a letter from the donor acknowledging that the funds were a financial gift. You are not expected or required to repay them. You may decide to repay the donor in full or in part if you so choose.

You will need to explain where the funds came from when you receive the gift. Lenders have the right of verifying that the donor is able to pay the gift. They can also expect to be paid back. The donor’s source of gift funds will be noted in the gift letter. Simple ‘from our bank’ will suffice.

If you are hoping to get financial assistance from qualified sources, it is important to know that it is not as easy as saying “it came from my bank account.” The funds will be used for financing the purchase of your new house. You’ll need proof that the funds are yours and not to be repaid.

 

Original blog: https://realtytimes.com/archives/item/1045762-understanding-financial-gifts?rtmpage=

Boundary Changes and Property Rights When Water Moves

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Water has been a natural boundary for land throughout human history. Mexico and Texas fought for the Rio Grande River area. The Nueces River was eventually proclaimed the winner. The Mississippi River is part of the border of ten states. Exodus even mentions God telling Moses, “I will set your bounds from Red Sea to the sea of Philistines and from the desert to the river.” John O’Donohue, a poet, observed that a river is “carried by its own unfolding.” The same goes for ocean shorelines. These changes can be gradual or imperceptible. Sometimes they are sudden. These changes can affect property rights in real-estate.

Land that is bordered by water falls under one of the following categories. The term “riparian” refers to “belonging or related to the bank or stream”. A “riparian owner”, is someone whose land is bordered by a river. Similar to “riparian owner”, the term “littoral” refers to land that is bound by the shore of an ocean or sea.

Riparian Tracts

If the call in a deed is to an unnavigable stream or riparian tract, the boundary is the centre or “thread” thereof, unless the deed states otherwise. A description of a “meanderline” is not sufficient to show such intent, unless it is stated in the language of deed.

The State of Texas owns navigable streams. The boundary of a navigable stream/river is to the point at the shore, known as the “gradient border.” Grants affected by the 1929 “Small Bill” are not considered “gradient boundaries”. A navigable river has a minimum width of 30 feet, from the mouth to the mouth.

Riparian Tracts’ Boundaries are changing due to erosion, accretion and reliction

When the stream slowly and imperceptibly erodes the land, it is called erosion. Accretion occurs when solid material, such as sand or mud (alluvion), is deposited, adding to land. Riparian owners lose their land when the land is lost to erosion. The same applies to riparian owners who gain land as it grows through accretion.

When the water submerges, called “reliction” or “dereliction”, it permanently exposes previously submerged land. The riparian owner then gains the newly exposed land. The boundary is now in line with the water body.

A boundary is a body or water that is slowly and imperceptibly altered or shifted by erosion, reliction or accretion.

The navigability of a stream will determine the ownership of an island. It is the state’s property if the stream is navigable. Non-navigable streams have a continuation of ownership for the owners of the stream bed. If the middle stream thread crosses an island, the property line crosses the island as well.

These rules are applicable even if erosion, accretion or reliction has been caused by man. This rule does not apply to accretion that is caused by the owner of the riparian. An owner cannot artificially raise submerged land above the surface to claim his land. This exception is sometimes called the “landfill principle”. The riparian owner has the right to any accretion of or reliction if a dam is built upstream.

There are other exceptions to this rule. If the property description states that the boundary is an object required at a river, the landmark is the object. The stream does not move the boundary, but the boundary is fixed to it.

It is important that title does not change due to seasonal or temporary changes, nor the rising or falling of the stream. The change must be permanent.

Boundaries are not affected by Subsidence and Avulsion on Riparian Tracts

However, streams and rivers can sometimes change their course quickly. A river can change its course suddenly and perceptibly, removing or depositing soil in the process. This is known as “avulsion.” This means that the boundaries of the land are not affected by the river’s movement.

It depends on whether there is a gradual or imperceptible change. It can be gradual or imperceptible if a person notices that something is changing/moving from time to another. It is sudden and perceptible if it can be detected.

This rule is not absolute. The state owns the new bed if a navigable stream leaves the existing bed. The state does not own the riverbed created by the avulsion, but the island is the property of its original owner. All accretions to an island belong to its owner.

Subsidence is the term for sinking land. It has no effect on the boundaries of the earth, regardless of how gradual or sudden the change.

Littoral Tracts

A simplified definition of “shoreline” in relation to littoral tracts is the average daily high water level. The bed is not included in a call to the shoreline of a lake. Property that borders the Gulf of Mexico, bays or tidal water is typically owned by the littoral owner. Land seaward of the shoreline are covered by “navigable water” and the State of Texas.

Littoral Tracts’ Erosion and Accretion Change Boundaries

Like riparian owners and the risk of the shoreline moving over time, each owner is responsible.

The rule of thumb is that the owner gradually acquires or loses title, or imperceptibly adds to or takes from the shoreline. This means that if the shoreline moves inwardly, the littoral owners lose that land. If the shoreline moves to the seaward, the littoral owners’ property grows.

The property owner is responsible for proving that the property has accreted. The state assumes that the land is still in its title, unless it makes a showing. The landfill rule is applicable, as with accretion onto riparian tracts. The landowner may not build the land intentionally and claim the dry land as hers.

Subsidence on Littoral Tracts does not change Boundaries

The boundaries of the land are not affected by subsidence on riparian tracts.

Influence on Mineral Ownership

Most cases would not require litigation to determine the exact boundaries of land that borders streams and rivers.

Many of these laws are based on boundary disputes over mineral rights. Both the mineral estates and the surface are subject to the rules concerning erosion, subsidence, reliction, reliction and accretion.

Other matters not addressed

These rules apply to the land and minerals, but not the water. Other rules determine who owns the water. These rules also do not affect the public’s rights to access beaches or navigable waters.

 

Original Blog: https://www.recenter.tamu.edu/articles/tierra-grande/Moving-Water-2361

The Basics of a Barndominum

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People are looking for flexible, creative living spaces. A barndominium (also known as a barndo) is one option. A barndo can be used as a living space, which allows for living, working, and many other activities.

Fixer Upper made barndos a hit years ago. Fixer Upper was a hit HGTV show. The hosts Chip and Joanna Gaines transformed a barn into a home, generating growing interest.

What is it about these home designs that are so appealing to certain people?

A barndominium, a metal structure with interior living spaces, is an example of a barn. These homes are low-maintenance, energy-efficient, and relatively affordable. Barndominums are sometimes described as a warehouse with charm and features like front porches.

Barndos, apart from Fixer Upper, are very popular because people are seeking more affordable options and living arrangements. They are both economical and versatile in function and design.

The steel buildings are spacious and offer plenty of living space. You have the basics like electricity and plumbing. But there are also more luxurious features such as open-concept floorplans and vaulted ceilings.

You can add a workspace to any design, from a warehouse space to a larger office or workshop area.

Barndos are made mostly from steel and their siding is usually made from sheet metal. They look more like a barn or storage building. The living area is designed around an open area. Modern design is often used for the open space.

Barndominiums can be constructed from steel or solid wood timbers. They are as safe as traditional homes, if they’re not, but still offer the same safety. It offers protection from severe weather, water damage and general wear and tear.

A barndominium is typically built in three phases. First, a concrete slab foundation must be poured. Next, the metal frame needs to be built. Finally, the interior living space is created.

While some homeowners prefer to do the majority of the work themselves, others might hire a professional to pour it. Homeowners often hire professionals to insulate their metal frames, even if they do some of the construction.

Conversions and new builds can take six months. If you need to speed up the process, you may consider purchasing a prefabricated barrndominum that comes with all of the available kits. A kit is convenient, although you can’t customize it as much.

These kits include everything you need to build the shell of your house. While some kits are simple and include only the essential components, others have customizations, overhangs and wrap-around porches.

In most cases, a barndominium will be less expensive than a traditional home. A traditional home costs around $145 per square foot. Barndominiums can cost as little as $70-$80 per square foot.

A loan for a barndo may be more difficult than a mortgage on a home. This is because lenders often view these homes as barns, rather than primary residences. Because there aren’t comparable sales, it makes appraisals more complicated and difficult. Although it is more difficult, financing this type of home is possible.

A barndominium has many benefits, including:

  • These homes are affordable and offer good value per square footage, especially for larger families. You may pay less in taxes and insurance than a traditional home.
  • They are durable and last a long time because they have metal roofing and siding. Barndominiums resist termites, rot and mildew, as well as mold.
  • There are almost limitless options for how to lay out the space.

There are some downsides to a barndominium.

The financing issue was first. They can also be difficult to resell. Bardonminiums may be more popular than ever, but they are still not very appealing to a large number of people. It is difficult to resell these floorplans because they are often very personal to the owners.

Before you decide to build a barndominium, make sure you check the local zoning laws. Because of regulations, they are often allowed in cities. They are less common in rural areas where building codes can be more relaxed.

 

Original Blog: https://realtytimes.com/archives/item/1045714-what-is-a-barndominium?rtmpage=

The Most Volatile Mortgage Rates in More Than Three Decades are Causing Struggle with Homebuyers

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A typical house hunter who began looking in July and closed on their home in September saw their potential mortgage rates fluctuate by approximately half a percentage point every four week, according to a new report of Redfin ( Redfin.com), a technology-powered realty brokerage. This is the most volatile period in three months since 1987 when mortgage rates surged after soaring to an all-time high of almost 19% earlier in the decade. The Fed was working to curb severe inflation.

This could be a good deal for a house hunter who is looking to purchase a home worth $500,000:

  • They expected their monthly payment of $3,051 when they began looking in July. This amounts to $1.098million over 30 years, with a 20% downpayment and the 5.7% mortgage interest rate. 435,777 of that total payment is interest.
  • They expected to pay $2,874 per month when they bought their dream home in August. This amounts to $1.035million over 30 years, with a 20% downpayment and a 4.99% mortgage rate. Interest is the largest component of that $372,143 total payment.
  • Their final monthly payment was $3,202 after they had locked in a mortgage rate in September. This amounts to $1.153million over 30 years, with a 20% downpayment and the current 6.29% mortgage interest rate. 490,382 of that total payment is interest.
  • The buyer’s expected total payment fell by $64,000 (5.8%), but then rose by $118,000 (11.4%) between July and August.

Taylor Marr, Redfin’s Deputy Chief Economist, stated that the challenges facing homebuyers today go beyond the declining affordability due to high mortgage rates and high home prices. It is extremely difficult to plan ahead due to the whiplash in mortgage rates that occurs between when homebuyers decide on their budget and when they make an offering.

The Federal Reserve has been increasing interest rates to reduce sky-high inflation, which is why mortgage rates are fluctuating. Last week, the Fed increased interest rates by three quarters of an percentage point to a range between 3% and 3.25%. This was its third major hike in a row. They also predicted that they would reach 4.4% by year’s end. Freddie Mac’s weekly data shows mortgage rates at 6.29%, the highest since 2008. However, a separate daily gauge shows them at 7.08%.

As the Fed tries to reduce inflation, volatility in mortgage rates is likely to continue for the near future. However, mortgage rates should fall within the next 12-18 months if inflation eases, according to Justin Dimler, Redfin’s mortgage company Bay Equity.

Dimler, who is a regional sales manager at Bay Equity Seattle, said that “the good news for those people who can afford to purchase a home” and could refinance to a lower interest rate within a year or so. I advise house hunters who were approved for a loan a few months ago to have their mortgage advisor requalify them. The change in mortgage rates could mean that they are no longer eligible to borrow the same amount.

Refinancing is a possibility for homeowners in the near future, but buyers should be aware of the potential costs.

 

Original Blog:  https://realtytimes.com/real-industry-news-articles/item/1045729-homebuyers-are-grappling-with-the-most-volatile-mortgage-rates-in-over-three-decades?rtmpage=

A Kitchen Clean Up Pays Off When Selling Your Home

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A kitchen remodel is a great way to sell a house. To make your kitchen more appealing to potential buyers, you don’t need to remodel it. You can make a few small changes to your kitchen and get it sold for more money if you have a great space.

While some people prefer to throw out every appliance they have used in the past week, others will need to clean their counters. Selling a home or kitchen that is not used every day is a major mistake. It is important to remember that the way you sell or show a house will not reflect how you live there. It may seem like an inconvenience, but it can make your home more valuable.

The more empty your counter top is, the better. A few subtle touches can bring your kitchen to life. You should leave enough space for potential buyers to place their belongings in your kitchen.

Consider removing any pots or pans that hang low from ceilings or walls and patching the holes. If the rack isn’t necessary, or if it is decorative that doesn’t block view or hangs too low, you can remove it and create more space.

It sounds so obvious and simple. Many sellers fail to notice this and their counter tops end up sticky or stained. It takes a little effort to remove wine stains or watermarks and make your kitchen look cleaner.

A rolling butcher block island is a great option for those who don’t have enough space to install an island in their kitchen. It will give your kitchen a more sophisticated look and provide additional work space. You may also want to offer some freshly baked cookies along with your flyers for open house.

You might consider adding some pendant lights to your recessed lighting. These lights can give your space a totally different look that can be very attractive.

You can update your home by installing affordable flooring. It doesn’t cost a lot to get the best flooring. However, it is important that your home does not look outdated.

Fresh herbs in simple containers are a beautiful way to add beauty and charm to your home.

The appliances can be sold “as-is“, but a dishwasher that is not working is an issue. Buyers will likely want to pay more or have the appliance replaced.

Even if buyers don’t like cooking, the kitchen is a key area of a home. It is important to make your home stand out by improving it before you sell your home.

 

 

Original Blog:  https://realtytimes.com/archives/item/1015362-20180223-selling-your-home-a-kitchen-clean-pays-off?rtmpage=

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