Locking in favorable terms with a fixed-rate mortgage. As of this writing, interest rates are at their historical rock-bottom. Receiving a fixed-rate mortgage lets you potentially lock in the most affordable terms we’ve seen.
The Money-Saving Secrets of the Home Purchase
If you’re tired of throwing rent toward the landlord, you can keep some of that money by putting it toward the principle of your very own home mortgage. Why bother? Here are some of the money-saving secrets that homeowners can enjoy:
Get pre-approved for a mortgage to do your research first. Ready to shop around? There’s no pressure. Get pre-approved for a mortgage and find out how much home you can afford—these are essential next steps that convince a home seller that you mean business.
Buy the home you can afford. When you know your total monthly liabilities, your income, and your credit rating, you can easily calculate just how much home you can afford. This will help ensure that you buy a house that remains a long-term blessing and not a strain on your budget.
The Stats: What You Need to Know Before You Buy a Home
Homeownership is common. In fact, statistics from 2019 show that the homeownership rate was a staggeringly high 65.8%, which means the majority of people have gotten out of the rent cycle and into their own home.
You don’t need experience. First-time home buyers constitute one-third of all home buyers, which means that you don’t have to feel intimidating by the home buying process, even if it’s your first time. It’s far more common to be going through this process for the first time than you might imagine.
The average length of time is low. Have house fever? You’d be surprised how quickly things can move. The average length of time between someone visiting a potential home for purchase and the closing date was only 73 days, or two and a half months.
Are you interested in finding out if a home purchase makes sense for you? Are you ready to join the ranks of homeowners and lock in potentially low rates?
What You Need To Know About A Home Purchase
Can I do the work myself?
No. Both types of 203(k) loans require a licensed contractor to complete the work.
Is there a maximum dollar amount for repairs?
There is no maximum repair amount. However, your loan amount will be determined by several factors, including the FHA County Loan Limit.
What if we can’t live in our fixer-upper while we renovate? Would I need to start making mortgage payments right away?
The short answer is: No! With the Standard 203k, you can finance up to six months of mortgage payments into your loan, provided that your HUD Consultant (a third-party plan reviewer required on Standard 203k Loans) determines that the home is uninhabitable. This would eliminate the need for you to make two housing payments at once.
When and how does my contractor get paid for the work?
With the Standard 203K loan, no funds are given to the contractor in advance. Draws to the contractor are made as work progresses and phases are completed. Draw inspections will verify that the work has been completed. Up to five draws can be taken.