Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
The recent rise of the average long-term U.S. mortgage rate, which poses a new obstacle to aspiring homeowners hoping to purchase a property during this homebuying season, could have dramatic consequences on the country’s housing market.
The national weekly average for 30-year mortgages, the most popular in the nation, was 6.88 percent as of April 11, according to data from the Federal Home Loan Mortgage Corp., better known as Freddie Mac. That was 0.06 of a percentage point higher than a week before and up 0.61 compared to a year before. The national average for 15-year mortgages was 6.16 percent, up 0.1 of a percentage point compared to the previous week and 0.62 compared to a year before.
Read more: How to Get a Mortgage
On Monday, experts monitoring mortgage rates on a daily basis noted that the national average for 30-year fixed mortgages reached 7.44 percent—the highest they’ve been so far this year and close to the 23-year weekly record of 7.79 percent reached on October 25, 2023. On Monday, the 15-year mortgage rate was 6.85 percent. At its peak on October 25, 2023, it had reached 7.03 percent.
“Big one-day jump,” commented journalist Lance Lambert on X, formerly known as Twitter. “The average 30-year fixed mortgage rate ticks up to 7.44 percent. New high for 2024.”
The rise in mortgage rates comes as homebuying season, a time when the number of homes listed for sale increases, is heating up. This climb in inventory starts in spring and normally peaks in summer before declining as the weather gets colder, marking one of the busiest times of the year for home sales. But higher mortgage rates could have an early chilling effect on the market.
Read more: Compare Top Mortgage Lenders
The median monthly U.S. housing payment hit an all-time high of $2,747 during the four weeks ending April 7, up 11 percent from a year earlier, according to a report from real estate brokerage Redfin last week. It noted that the average 30-year fixed mortgage rate, then at 6.82 percent, was more than double pandemic-era lows.
There’s not much hope that mortgage rates will come down soon, as the U.S. Labor Department said last week that inflation has risen faster than expected last month, at 3.5 percent over the 12 months to March. That was up from 3.2 percent in February.
“For homebuyers, the latest CPI [consumer price index] report means mortgage rates will stay higher for longer because it makes the Fed unlikely to cut interest rates in the next few months,” said Redfin Economic Research Lead Chen Zhao. “Housing costs are likely to continue going up for the near future, but persistently high mortgage rates and rising supply could cool home-price growth by the end of the year, taking some pressure off costs.”
Jamie Dimon, CEO of JPMorgan Chase, voiced concern last week over “persistent inflationary pressures” and said the bank was prepared for “a very broad range of interest rates, from 2 percent to 8 percent or even more, with equally wide-ranging economic outcomes.”
While the jump in mortgage rates appears modest, it makes a huge difference for borrowers, who might end up paying hundreds of dollars a month more on top of what’s already one of the most significant expenses in their lives.
Many might decide that they can’t afford to buy a home—which is what happened when mortgage rates suddenly skyrocketed between late 2022 and early 2023 as a result of the Federal Reserve’s aggressive interest rate-hiking campaign.
Between late summer 2022 and spring 2023, a drop in demand caused by the unaffordability of buying a home led to a modest price correction of the housing market. But prices have since climbed back due to the combination of pent-up demand and historic low inventory.
While the Federal Reserve doesn’t directly set mortgage rates, these are hugely influenced by the central bank’s decision to hike or cut interest rates. The Fed left rates unchanged in March and is considered unlikely to cut them this month considering the latest data on inflation.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Source: newsweek.com
Connecticut’s rich historical heritage is evident in its well-preserved landmarks and museums. For example, the Mark Twain House in Hartford offers a glimpse into the life of one of America’s most beloved authors. This deep historical context provides residents and visitors alike with a unique window into the past.
Connecticut’s cost of living surpasses the national average, with notable spikes observed in housing, healthcare, and transportation expenses. In Greenwich specifically, the median sale price stands at $2,181,250, while the average rental price for a one-bedroom apartment hovers around $3,710, underscoring the challenges of affordability in the area.
Connecticut is home to some of the nation’s top educational institutions, including Yale University in New Haven. This access to quality education from primary levels through to higher education institutions ensures residents have ample opportunities for academic and professional development.
Connecticut’s winter weather can be harsh and unforgiving, with frequent snowstorms and freezing temperatures making outdoor activities challenging. Residents often contend with icy roads, hazardous driving conditions, and increased heating costs during the colder months. Cities like Waterbury often face significant snow removal challenges, impacting residents’ mobility and comfort.
Connecticut boasts natural beauty that captivates residents and visitors alike, from the picturesque coastline along Long Island Sound to the tranquil forests of the Litchfield Hills. Iconic destinations such as Gillette Castle State Park, with its stunning architecture set amidst lush woodlands, and the charming coastal town of Mystic, known for its historic seaport and maritime heritage, showcase the state’s diverse landscapes.
Major cities in Connecticut and the surrounding areas, such as Stamford and Hartford, often experience heavy traffic congestion. This can lead to long commute times and increased stress for residents. The congestion is particularly noticeable during peak hours on highways like I-95 and Route 15.
Connecticut’s vibrant arts and culture scene thrives with a plethora of museums, galleries, and theaters that cater to diverse tastes and interests. For instance, the Wadsworth Atheneum Museum of Art in Hartford stands as the oldest public art museum in the United States, showcasing a rich collection spanning thousands of years. Additionally, the Goodspeed Opera House in East Haddam is renowned for its world-class productions of musical theater, attracting theater enthusiasts from across the region.
Compared to larger metropolitan areas, some parts of Connecticut offer limited options for nightlife. While cities like New Haven and Hartford have some lively spots, smaller towns may lack the variety and vibrancy found in bigger cities, leading to fewer entertainment options in the evenings.
Connecticut’s outdoor recreation opportunities are abundant, offering residents and visitors a chance to explore the state’s natural wonders. From hiking along the Appalachian Trail to kayaking on the Connecticut River, outdoor enthusiasts have endless options to enjoy the great outdoors. Moreover, destinations like Sleeping Giant State Park with its scenic trails and Hammonasset Beach State Park with its sprawling beaches provide opportunities for hiking, swimming, picnicking, and birdwatching.
Connecticut’s seasonal allergies can pose challenges for residents, particularly during the spring and fall months. Pollen from trees, grasses, and weeds can trigger allergic reactions such as hay fever, sneezing, and itchy eyes for those sensitive to airborne allergens.
Connecticut’s transportation options offer residents convenient and accessible ways to navigate the state and beyond. With an extensive network of highways, including Interstate 95 and Interstate 91, commuting to neighboring cities like New York City and Boston is relatively straightforward. Additionally, the state’s Metro-North Railroad provides efficient rail service connecting major cities, while local bus systems offer reliable public transportation within urban areas.
Connecticut faces occasional natural disasters, predominantly hurricanes and severe storms, which can pose risks to residents and property. Coastal areas are particularly vulnerable to flooding and storm surges during hurricane season, necessitating preparedness and evacuation plans. Additionally, the state experiences occasional earthquakes, although they are less common and typically result in minimal damage.
Methodology : The population data is from the United States Census Bureau, walkable cities are from Walk Score, and rental data is from ApartmentGuide.
Source: apartmentguide.com
Inside: Learn how to save money quickly, even on a tight budget. Get practical tips for how to save money fast on a low income. Simple savings ideas to implement today.
Saving money on a tight budget can feel like a high mountain to conquer, especially when you’re trying to do it fast.
Many people earn just enough to cover their essential costs, leaving little room for savings. However, with the right strategies, saving money fast on a low income doesn’t have to be a pipe dream.
This is something I started when we decided to pay off debt. Then, we choose to continue saving that money and investing it.
By understanding the flow of your money – where it’s coming from and where it’s going – you can make informed decisions that maximize your savings potential.
By prioritizing your spending and forecasting future expenses, budgeting can reduce the stress of financial uncertainty and introduce a sense of control and confidence in your money management skills. Thus, leading to you starting to save.
On a low income, the best way to save money is to thoroughly understand your expenses and prioritize your needs over wants.
In addition, by planning and tracking your finances meticulously, you can identify where each penny is going. Thus, allowing you to analyze your expenses. Once you have a clear picture of these, start looking for areas to trim down.
Remember, saving money is about being proactive and consistent. These small but steady steps can build up over time to help you save money fast, even on a low income.
Before you can decide where to cut costs or how to allocate your funds, you need to know what’s most important to you.
What is your why for doing what you need to do? Is it building an emergency fund, saving for a down payment on a home, or maybe preparing for retirement?
Whatever your goals, outline them clearly. This is how you will save money.
To budget effectively on a low income, it all starts with a cold, hard look at your numbers.
Every dollar saved from unnecessary splurges is a dollar that can be put towards your savings.
Use budgeting apps or tools to keep a real-time record of your spending. These can help you stay disciplined and provide a visual reminder of your progress.
Now, you must meticulously and ruthlessly cut out the non-essentials.
Identify patterns and spot the recurrent, unnecessary expenses that are draining your funds.
It’s time to slash these expenditures.
Cutting these expenses is like giving yourself a raise.
Living in smaller, more affordable housing to decrease rent or mortgage might be exactly what you need.
Opting for a smaller, more affordable space is a practical approach to significantly lower your rent or mortgage payments. When you choose to live in a compact setting, not only do you reduce the square footage costs, but often, utility and maintenance expenses decrease as well due to the reduced size of the living area.
Saving money on utilities might sound challenging, but you can often achieve substantial savings with a few strategic home adjustments. Let’s explore some cost-effective strategies and modifications you can make to your living space that could help reduce your bills.
Not only do these simple home adjustments lead to savings on your utility bills, but they also contribute to a more environmentally friendly lifestyle.
Cooking at home instead of dining out is an excellent way to save money, especially on a low income. When you eat at a restaurant, you’re not just paying for the food; you’re also covering the cost of service, ambiance, and the establishment’s overhead.
Plan a balance between meal prepped home-cooked meals and the occasional dinner out to keep your budget in check while still enjoying life’s little pleasures. Here are some frugal meals to get you started.
Remember, you don’t have to eliminate eating out entirely.
Stop draining money on services you don’t actively use. It’s surprisingly easy to forget about these auto-renewing expenses, so taking the time to audit your subscriptions can reveal opportunities for savings.
Recently, we tracked over $100 a month in my mother-in-law’s unused subscriptions and membership!
As such, it’s important to periodically evaluate your subscriptions and memberships to ensure they are still serving your interests and goals. If not, give yourself permission to cancel and save that money for something that offers tangible benefits in return.
Investing in quality items that last longer is a strategic way to save money over time. While the initial cost may be higher, durable products can prevent the cycle of frequent replacements, ultimately contributing to long-term savings and less waste.
Remember, not every purchase necessitates the highest quality option. Examine which items you frequently use and can benefit from in the long run. For instance, driving a Toyota or buying higher quality shoes.
Once you’ve identified these, invest in quality for those and enjoy the satisfaction of a purchase that lasts.
To optimize grocery shopping and manage your food budget effectively, start by thoroughly checking your current pantry supplies and making a precise shopping list to deter impulse purchases.
By shopping smartly, you have the power to drastically lower your monthly food bill. Just remember, the key is preparation and discipline.
Repairing items instead of replacing them can be a significant money-saving tactic, especially when budgets are tight. It’s often more cost-effective to fix a piece of furniture, mend a garment, or troubleshoot an appliance than it is to buy new one.
Consider the condition and value of each item before deciding to repair it. If the cost of repair approaches the price of a new item, or if it’s beyond your skill set, researching community resources or seeking professional help may be a wise choice.
Putting the brakes on impulsive buying can significantly boost your savings, and practicing the 30-day rule is a tried-and-true method to control those urges.
Before you make any non-essential purchase, wait 30 days.
If after a month you still feel the purchase is necessary or meaningful, then consider buying it.
Remember that the goal isn’t to deny yourself enjoyment but to ensure that each purchase is considered and valued. This conscious approach can lead to more satisfaction with the items you do choose to buy and a healthier bank balance.
Opting out of a car loan and finding alternative modes of transportation, such as cycling, walking, or using public transportation, can lead to significant financial savings.
Without a car payment, individuals can redirect the funds that would have gone towards monthly installments, insurance, and maintenance into their savings account.
This strategy can be particularly impactful for those with a goal in mind or working with a low income, as every dollar saved moves them closer to financial stability. Furthermore, the elimination of auto loan interest charges and potential debt can provide a more secure financial footing and peace of mind.
Utilizing public transportation or carpooling can be significant in reducing fuel costs, particularly when you’re committed to saving money on a low income. These alternatives to solo driving not only save on fuel but also on parking fees, and wear and tear on your vehicle.
Another option is embracing car-sharing services, especially if you find that you don’t require a car on a daily basis. Services like Turo and Getaround offer the flexibility of having a car when you need one without the constant financial responsibility associated with ownership.
Remember, it’s all about what suits your lifestyle and frequency of need. By assessing how often you need a vehicle and comparing it with the total costs of ownership, car-sharing could be an excellent way to save money.
Selling unused or unwanted items is a fantastic way to declutter your space and earn extra cash. You might be surprised how much money you can make by letting go of things you no longer use or need. From clothes you’ve outgrown to homeware that’s gathering dust, each item sold can inch you closer to your savings goal.
Take advantage of this opportunity; a thorough home audit could reveal a treasure trove of sellable items right under your nose. Not only does this increase your income, but it also helps you consider future purchases more carefully.
Leveraging free entertainment and community events is a delightfully frugal way to enjoy yourself without breaking the bank. From concerts and exhibitions to workshops and meet-ups, there’s often a wealth of activities that won’t cost you a penny.
In fact, here at Money Bliss, I have the most popular list of things to do with no money.
With a little creativity and resourcefulness, you can uncover a variety of enjoyable and inexpensive things to do.
Automating your savings is a hassle-free way to ensure you consistently contribute to your financial goals.
By setting up an automatic transfer from your checking account to a savings account, you’re essentially paying your future self first.
This ‘set and forget’ approach helps grow your wealth with minimal effort.
Many service providers are open to negotiating prices if it means retaining a customer. Whether it’s your cable package, insurance, or even a credit card interest rate, it’s worth having the conversation.
Remember, the worst they can say is no. But often, companies will offer helpful options when they realize you are considering alternatives due to cost concerns.
One phone call could save you $1000 a year – just like when I decreased my cable bill!
When evaluating insurance policies, it’s critical to regularly assess your coverage needs and shop around for the best rates. Comparing policies from different providers annually can reveal opportunities for lowering premiums or finding more suitable coverage.
Utilize online tools and independent insurance agents to ensure a comprehensive review of available options.
Remember to inquire about bundling policies, as this can often lead to significant savings while consolidating your insurance needs effectively.
By allocating some time each week to plan your meals, you can ensure that you only buy what you need, thereby minimizing waste and cost.
Learning to meal plan starts with looking at a calendar and a local sales flyer to find the low cost deals.
By creating a weekly plan and incorporating budget-friendly recipes, you can not only eat healthier but also avoid the costlier option of dining out.
By choosing reusable items over single-use ones, you cut down on waste and habitual spending on disposables. This is also known as frugal green.
For instance, investing in a reusable water bottle, rather than buying single use water bottles.
By integrating sustainable products into your life, you also promote a culture of conservation and mindfulness, inspiring others to make eco-friendly choices.
This is key! Especially when shopping with kids or a significant other!
Shopping for groceries with a list is a golden rule to avoid impulse buys, which can quickly derail your budget. By planning your purchases beforehand, you stick to the essentials and resist the temptation of sale items that aren’t on your list or don’t fit your meal plan.
Bonus Tip: Remember to always shop on a full stomach – hitting the grocery store hungry is a surefire way to end up with impulse purchases that aren’t on your list!
Opting for generic brands rather than name brands is a straightforward and effective way to save money on everything from groceries to over-the-counter medications. These products are often of similar quality and effectiveness but come at a significantly lower cost.
By making the switch to generics, especially for regularly used items, the aggregate savings can be substantial over time.
When you buy in larger quantities, the cost per unit typically decreases, leading to savings that add up over time. Bulk buying works best for non-perishable goods or products you use consistently.
Make a point of buying non-perishable items or products with a long shelf life in bulk to avoid waste and ensure that you truly save money with each bulk purchase.
Just make sure you are going to use it!
DIY methods for personal care are not just a trend – they’re a practical and often healthier alternative to store-bought products. By creating your own beauty and personal care items, you can significantly trim costs and take control of what goes on and into your body.
Even if you’re not the crafty type, consider starting small with something like a DIY sugar scrub or homemade toothpaste. This is something I did over ten years ago. You might discover a new hobby that enhances both your well-being and your budget.
Keeping on top of maintenance schedules helps prevent major breakdowns that can lead to expensive repairs down the line.
By making regular maintenance a non-negotiable part of your routine, you protect your investments and save yourself from future financial headaches.
I keep a list in my digital to do list, so I never lose track.
Shopping at thrift stores, garage sales, or second-hand websites is an excellent way to acquire items at a fraction of the retail cost. Not only are you being financially savvy, but you’re also participating in the circular economy, reducing waste, and often supporting charitable causes.
Shopping second-hand first is not just about saving money—it’s a lifestyle choice. With patience and persistence, it’s amazing what quality items you can find without impacting your wallet heavily.
Mastering the basics of sewing to mend your clothes is a skill that pays off in multiple ways. You save money by extending the life of your garments, reducing waste, and developing a practical capability that can come in handy in various situations.
Honestly, sewing a piece of clothes is a very simple thing. Something that must be learned by the younger generations.
Consider setting aside some time to learn sewing basics via online tutorials, community classes, or even from a friend or family member—it’s a practical step toward financial savings and sustainable living.
Using coupons and discounts strategically can lead to significant savings on your shopping bills. With a little planning and some savvy shopping techniques, you can ensure you never pay full price for essentials and other purchases.
Remember to only use coupons for items you were already planning to purchase; otherwise, you’re not saving money, you’re just spending less on something extra.
Debt consolidation can be a strategic financial move to lower your overall interest rates and simplify your monthly payments. By combining your debts into one loan with a lower interest rate, you can streamline your bills and potentially save significant amounts of money over time.
Make sure to shop around for the best debt consolidation options and read the fine print. The goal is to find a consolidation plan that truly puts you on a faster track to being debt-free without any hidden costs.
Addressing high-interest debts is paramount in optimizing your financial strategy. Such debts, often from credit cards or payday loans, can spiral out of control if not managed promptly due to their compound interest rates, which can quickly exceed the original amounts borrowed.
This is known as the debt avalanche.
By zeroing in on high-cost debts, you ensure your income is spent more effectively and not wasted on steep interest fees, accelerating your path to financial freedom.
Selecting the right high-yield savings account for your emergency fund is an essential move for growing your savings. High-yield accounts offer interest rates significantly higher than standard accounts, ensuring your emergency fund doesn’t stagnate and keeps pace with inflation as much as possible.
This is one of the bank accounts you need.
The Envelope System is a budgeting method that involves physically dividing your cash into envelopes for different spending categories.
Utilizing the cash envelope system promotes disciplined spending by providing a tangible limit on various expense categories, ensuring you stay within your pre-determined budget and facilitating more intentional money management.
This method also offers immediate visual feedback on spending patterns, which can lead to better financial habits and incremental savings as any leftover cash from each envelope can be added directly to a savings fund, making the act of saving more rewarding and motivating.
The use of cash-back envelopes takes the traditional envelope budgeting system a step further by rewarding yourself with savings.
Whenever you spend less than the allocated amount in a budget category, you place the cash difference into a “cash-back” envelope, which can be used for saving or investing.
Adopting the cash-back envelope strategy can provide a rewarding twist to budgeting, making it a fun challenge to spend less and save more.
Boosting your income can provide substantial financial relief, particularly when you’ve maximized your ability to cut costs and still find your expenses stretching your budget thin.
Generating extra income, be it through a side hustle or achieving a raise enhances your ability to save and invest.
With additional streams of revenue, you gain more financial flexibility to achieve goals like paying off debt faster, saving for a significant purchase, or building an emergency fund.
Exploring a side hustle or part-time job is a proven way to supplement your income. In today’s gig economy, there are numerous opportunities for flexible work that can be customized to fit your skills and schedule.
A side hustle can not only pad your wallet but also provide an outlet for creativity and passion, possibly even offering a new career trajectory down the line.
Exploring gig work and passive income streams can accelerate your savings efforts, especially when your regular income isn’t enough to reach your financial goals. These alternative income ideas often provide the flexibility to work on your terms and build up earnings over time.
These revenue channels provide a proactive approach to increasing your disposable income. Researching and choosing the best options for your skills and financial situation can help you build a sound extra income strategy.
Banks often offer attractive incentives to new customers, and high-interest savings accounts can grow your deposits at a faster rate than traditional accounts. The same is true for credit card issuers offering big bonuses.
Taking time to research the best offers and account terms can net you a nice bonus and put your money to work earning more money.
Learning how to invest your money is paramount to building wealth over time. While it can seem intimidating at first, understanding the basics of investing can enable you to take advantage of compounding interest and market growth to increase your savings exponentially.
Start small, stay disciplined, and continually educate yourself as you grow your investment portfolio. Over time, your investments can become a significant source of wealth and financial security.
Learn how to invest in stocks for beginners.
Setting realistic savings goals is a key to financial success, particularly when managing a low income.
Determine what you can feasibly save without overstretching your budget. Whether it’s $5 or $50 per week, every bit helps.
Celebrating your achievements, no matter how small, can inspire continued discipline and dedication towards your financial objectives.
Being realistic and flexible with your budget will help you manage your finances more efficiently, ensuring that you set aside money for future growth, even when funds are tight.
This is a great step towards habits of financially stable people!
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Source: moneybliss.org
Michigan has a beautiful array of landscapes, ranging from the Great Lakes’ expansive shores to the lush forests of the Upper Peninsula. Its cities, like Grand Rapids with its craft brewery scene and Ann Arbor as a vibrant center of education and innovation, present diverse living environments. However, navigating life in Michigan has its hurdles. In this ApartmentGuide article, we’ll uncover the pros and cons of calling the Great Lakes State home, giving you insights on whether you’ll want to call this state home.
Michigan’s cultural heritage is deeply rooted in its history, from the Motown Museum in Detroit that showcases the city’s musical legacy to the numerous festivals celebrating its diverse communities like the East Lansing Film Festival. Along with festivals, the state’s history of innovation and manufacturing, particularly in the automotive industry, is displayed in museums like The Henry Ford in Dearborn.
Michigan experiences extreme winters with heavy snowfall and below freezing temperatures, particularly in the Upper Peninsula. This weather can lead to difficult driving conditions, increased heating costs, and the need for regular snow removal, impacting daily life during the winter months.
The state is home to stunning natural landscapes, including the Great Lakes, over 100 state parks, and thousands of miles of beaches. Places like Sleeping Bear Dunes National Lakeshore and Pictured Rocks National Seashore offer breathtaking views and a plethora of outdoor activities such as hiking, fishing, and camping.
Michigan ranks among the states with some of the highest humidity levels in the nation. Humidity can lead to discomfort and exacerbate existing health conditions for some residents. The combination of heat and humidity can make outdoor activities feel more oppressive and challenging. Additionally, increased humidity can contribute to issues like mold growth and indoor air quality concerns in homes and buildings.
Michigan boasts a vibrant arts and music scene, with Detroit known as the birthplace of Motown music. The state hosts numerous art fairs, music festivals like the Detroit Jazz Festival, and live performances throughout the year, reflecting its rich cultural diversity and artistic talent.
Infrastructure in some parts of Michigan, including roads and bridges, requires significant improvement. The state has faced challenges with aging infrastructure due to climate change, leading to concerns over safety and the need for extensive repairs and upgrades. This can pose as a challenge to residents who commute.
Michigan is home to prestigious universities and colleges, including the University of Michigan and Michigan State University. These institutions offer a wide range of programs and contribute to research, innovation, and the state’s educational landscape.
Michigan’s weather is famously erratic, with residents often experiencing dramatic shifts in temperature and sudden weather changes. From unexpected snowstorms in April to heatwaves in October, predicting the weather can be a challenge. This variability can impact daily life, requiring residents to be prepared for a wide range of conditions throughout the year.
Michigan is a haven for sports enthusiasts, hosting professional teams like the Detroit Lions and Detroit Tigers, as well as offering numerous recreational activities such as boating, fishing, and skiing. The state’s diverse landscapes provide the perfect backdrop for a wide range of outdoor adventures.
Michigan’s lush natural landscape brings with it seasonal allergies, with pollen levels often peaking during the spring and summer months. For allergy sufferers, this can mean dealing with symptoms like sneezing, itchy eyes, and congestion. While the state’s beauty is undeniable, those prone to allergies may need to take precautions during peak pollen seasons to minimize discomfort.
Michigan’s proximity to Lake Huron, Lake Michigan, Lake Superior and Lake Erie offer residents unparalleled access to recreational opportunities, including swimming, boating, and fishing. The vast expanses of freshwater provide not only stunning natural beauty but also opportunities for water-based activities year-round.
Outside of major cities, Michigan’s public transportation options are often limited, leaving residents reliant on personal vehicles for commuting and travel. In fact, in Ferndale, the transit score is 13, meaning the city is car-dependent where almost all errands require a car. This lack of comprehensive public transit infrastructure can pose challenges for those without access to cars, particularly in rural areas.
Methodology : The population data is from the United States Census Bureau, walkable cities are from Walk Score, and rental data is from ApartmentGuide.
Source: apartmentguide.com
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Fri, Apr 12 2024, 11:24 AM
When I win the lottery, I am going to buy one of these to heat my blankets at home. Of course, that would mean that I will have to start playing the lottery, so until then I’ll just have to rely on my cat Myrtle to prep things. Just because you own a home, doesn’t mean you’re wealthy; some homeowners live in poverty. A LendingTree analysis shows that more than 3 million families who live in owner-occupied homes in the U.S. earn incomes below the poverty threshold for their family. 7.4 million families across the nation earn incomes below their poverty threshold… nearly 9 percent living in poverty! Of the families in poverty, 41 percent live in owner-occupied housing units and 59 percent live in renter-occupied housing units. Montana, Vermont, and Idaho have the largest share of impoverished families living in owner-occupied homes, 55 percent on average. New York, Connecticut, and New Jersey have the smallest share of impoverished families living in owner-occupied homes at 29 percent on average. (If you want to dig into what “poverty” means, here you go.) (Found here after 8:30AM ET, this week’s podcasts are sponsored by PHH Mortgage. From subservicing to correspondent lending, MSR/co-issue transactions, portfolio retention, reverse mortgages, and commercial servicing, PHH has solutions for the entire mortgage lifecycle. Hear an interview with MCT’s Phil Rasori on the current state of the capital markets and the “holy grail” for pricing technology.)
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ACES Q3 2023 Mortgage QC Trends Report Finds Critical Defect Rate Declines for Fourth Consecutive Quarter: Despite mortgage interest rates and volume concerns, critical defect rates have maintained a downward trend, ending the quarter at 1.67 percent. Summary of Findings include the overall critical defect rate declined 2.91 percent ending the quarter at 1.67 percent, defects in Credit & Liabilities categories increased for the 3rd straight quarter, income/employment continues to lead all defect categories, and defect share increased across all loan types except conventional. “While fewer loans may afford lenders the opportunity to intensify their focus on quality, it’s clear that maintaining high standards amidst market fluctuations remains paramount. The persistence of this trend underscores the industry’s adaptability and dedication to ensuring the integrity of lending practices.”- ACES Executive Vice President Nick Volpe. Read the Report
“The Arizona sun isn’t the only thing heating up. Total Expert is bringing the hottest tech in retail mortgage to HousingWire The Gathering 2024! The Total Expert team will be on-site to show you how we can help make the most of every opportunity as the market looks to rebound in 2024 and beyond. Three ways to connect with us at the show: stop by our kiosk to grab some pickleball swag; catch our Founder & CEO Joe Welu’s session on The Modern Marketing Strategy in Retail Lending during the Vanguard Forum in Salon A-G, Monday at 4:15 p.m.; and grab a drink on us at the Pickleball viewing party at 3:00 p.m. on Tuesday. Schedule a meeting to connect with us at the show.”
“Rocket Pro TPO is hosting a special edition Pro Talks event during the week of the 2024 NFL Draft in Detroit, MI. On April 24th, 2024, at 2PM ET tune in virtually to hear from Mike Fawaz, Executive Vice President of Rocket Pro TPO, and featured guest Kirk Herbstreit, a renowned sports analyst known for his insightful commentary on ESPN’s College GameDay and Thursday Night Football on Prime. Herbstreit will explore the parallels between the sports and business worlds, offering his take on strategy, teamwork and what it takes for professionals, athletes, and business alike, to succeed. Don’t miss this opportunity to gain unique perspectives from Kirk Herbstreit. Sign up now for this special edition of Pro Talks! For more information, contact Rocket Pro TPO today!”
Want to cut your home equity origination times down from 45 days to as few as 5 days? Heading to the MeridianLink User Forum in Nashville later this month? FirstClose, the fintech provider of one-of-a-kind home equity workflow solutions for mortgage and home equity lenders nationwide, is proud to be a Platinum sponsor of this year’s event. Lenders using FirstClose Equity have experienced a 35 percent increase in online applications, a 25 percent increase in pull-through and a 77 percent reduction in time to close from application to funding. So if you’re looking to up your “equity game” or get into the space, schedule a meeting with us at the show so we can discuss your home equity needs.
FINOFR (formerly Rate Reset) launched its patented Reset technology with Vantage West Credit Union. What is a Reset? A “Reset” eliminates the process of a refinance and can be completed by the homeowner in 90 seconds. FINOFR has forever changed Mortgage Banking (for the better) solving mortgage retention. FINOFR has a 90 percent retention rate and has completed over 22,000 Resets with over $22 billion in volume. If you own portfolio mortgage loans, and want to see a demo, contact Foster Kelly.
“The Mortgage Bankers Association Secondary & Capital Markets Conference Expo is nearly a month away. Have you scheduled time to meet with Spring EQ Correspondent Lending? Contact Joe Garcia or Rick Martinez today and meet with them during the conference at the Times Square EDITION Hotel! Spring EQ Correspondent is offering delegated and non-delegated options to qualified correspondent sellers, with maximum premiums paid up to 3 percent. The need for home equity solutions is surging among borrowers, so make sure your business is prepared to meet this demand by partnering with the experts in home equity at Spring EQ. Interested in a correspondent partnership? Click here. We look forward to seeing you in New York City!”
Government Lending News
USDA Rural Development Bulletin discusses GUS changes and updates to HB-1-3555, Chapters 8, 12, and 15. Additionally, the bulletin announces revisions to technical Handbook-1-3555, Chapters 8, 12, and 15. These changes became effective upon the recent issuance of a Procedure Notice (PN).
FHA published extensions to its temporary regulatory waiver and related Single Family Housing Policy Handbook 4000.1 waiver, which allow mortgagees to utilize alternative methods for conducting meetings with borrowers in accordance with FHA’s early default intervention requirements. These alternatives provide practical and useful methods for conducting meetings with borrowers while ensuring they still receive needed information directly from their mortgage servicer.
Pursuant to APM 17-06 and Chapter 3, Part 21 §B(1) Ginnie Mae monitors its counterparties portfolios to ensure Ginnie Mae Issuers meet acceptable risk parameters. Ginnie Mae has observed increased prepayment activity in some elements of its program. Ginnie Mae posted reminders to Issuers in Ginnie Mae News and Notes on prepayment activity monitoring.
Speaking of Ginnie, Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.56 trillion in March, including $32.4 billion of total MBS issuance, leading to $12.5 billion of net growth. March’s new MBS issuance supports the financing of more than 101,000 households, including more than 45,000 first-time homebuyers. Approximately 68 percent of the March MBS issuance reflects new mortgages that support home purchases because refinance activity remained low due to higher interest rates. More information is available in this Ginnie Mae Press Release.
Capital Markets
It has certainly been a rough week for those hoping for relief from high rates. After March consumer prices caused a CPI-inspired selloff on Wednesday, it was much the same story again yesterday as investors continued to walk back the timing of Fed rate cuts. Inflation at the wholesale level rose 0.2 percent in March and 2.1 percent year-over-year, according to the Producer Price Index. Even with the smaller than expected month-over-month increases, the headline PPI rate accelerated from 1.6 percent in February while core PPI accelerated to 2.4 percent from 2.1 percent.
Bond traders are bracing for a potential rise in 10-year Treasury yields beyond 5 percent, as the scenario of no rate cuts by the Fed this year looks increasingly possible. Pricing in Fed Funds futures now implies less than a one-in-five chance that the Fed will cut rates by a quarter point in June. Prior to Wednesday’s CPI report, pricing implied more than a 50 percent chance of a June rate cut. Richmond Fed President Barkin said yesterday that recent inflation figures raise questions and that he is reluctant to declare victory over inflation. New York Fed President Williams said that he expects inflation to move closer to 2.0 percent in 2025, but that there’s no need to ease in the “very near term.”
March import and export prices kicked off today’s calendar (expectations were for both to increase 0.7 percent versus 0.3 percent and 0.8 percent previously) but are totally overshadowed by the CPI and PPI data this week. Later today brings preliminary April Michigan sentiment (which includes forward-looking inflation expectations), and remarks from multiple Fed speakers.
Bank earnings also kick off with JP Morgan, Citigroup, and Wells Fargo reporting before the open along with BlackRock and State Street Wall Street is expecting a subdued earnings season as global growth picks up. A solid domestic economy is expected to fuel a rise in profit growth for S&P 500 companies, and strong margins from big tech will be a key driver. We begin the day with Agency MBS prices better than Thursday by about .125, the 10-year yielding 4.52 after closing yesterday at 4.58 percent, and the 2-year yielding 4.91.
Employment
“A non-QM investor is seeking to hire for a Capital Markets Strategy role responsible for growing our market share with existing originator clients by leveraging the firm’s capital markets and product development capabilities. The ideal candidate will have 5-10+ years of experience at a non-agency investor or experience as a senior capital markets or product development professional within an originator. Remote or New York City based. The company is rapidly growing and currently purchasing ~$3bn/yr. across Non-QM, DSCR and 2nd liens.” Interested parties should send a confidential note to Chrisman LLC’s Anjelica Nixt for forwarding.
“While competitors have struggled to keep their doors open, Sierra Pacific Wholesale’s team has continued to grow. This last quarter, our Wholesale Channel welcomed 8 new Account Executives including Jason Wood, Sharlee Stemmons, Fay Hoffman, Denise Tully, Jeff Dolby, Steve Munster, Greg Neidhart, and Melanie Rocha. We also hired industry veteran Jonathan McCash as Regional Vice President – TPO Sales East. These new additions have brought a wealth of mortgage experience and align with the core values that are foundational to the ONE Sierra company culture. From cutting-edge technology and full-service operational support to a corporate commitment to continual growth, we equip our employees with the tools and resources they need to be successful in any market. If you’re an Account Executive looking for an opportunity to work with some of the best leadership in Wholesale today, send a note to Rob Saunders (EVP – TPO Production).”
Since 1902, OceanFirst Bank has believed in supporting and growing the local communities it serves. Initially, the focus was helping neighbors realize the dream of owning a home. Now, the Bank is fulfilling those dreams and assisting families with all of their financial needs during every stage of life. OceanFirst is a $13.5 billion regional bank providing financial services throughout New Jersey and in the metropolitan markets of Philadelphia, New York, Baltimore, and Boston. Recently, OceanFirst was recognized as being one of the best regional banks in the country by Newsweek. Thus, making the Bank a great place for top producing Loan Officers to take their careers to new levels. Contact John Costa, Senior Vice President and Head of Mortgage Sales or dial 609.444.6121 for this exciting opportunity.
FDIC | Equal Housing Lender | Equal Opportunity Employer.
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Source: mortgagenewsdaily.com
From the scenic shores of Cape Cod to the historic streets of Boston and the lush Berkshires, Massachusetts has an array of landscapes that cater to every lifestyle. Its cities, such as Worcester with its cultural heritage and Cambridge as an intellectual and innovation hub, offer unparalleled living experiences. However, living in Massachusetts presents its own unique set of challenges. In this ApartmentGuide article, we’ll examine both the pros and cons of calling the Bay State home, providing insights to help you make informed decisions about if this state is right for you.
Population | 7,001,399 |
Avg. studio rent | $2,161 per month |
Avg. one-bedroom rent | $2,330 per month |
Avg. two-bedroom rent | $2,748 per month |
Most affordable cities to rent in Massachusetts | Holyoke, Chicopee, Springfield |
Most walkable cities in Massachusetts | Cambridge, Somerville, Boston |
Massachusetts is steeped in American history, offering an abundance of historical sites and landmarks. From the Freedom Trail in Boston to the witch trials in Salem, the state provides a unique journey through the nation’s past, making it a haven for history buffs and educational trips.
Home to world-renowned institutions such as Harvard University and the Massachusetts Institute of Technology (MIT), Massachusetts offers unparalleled educational opportunities. The state’s prestigious universities not only provide top-tier academic programs but also foster innovation and research, contributing to Massachusetts’ reputation as a leader in education and technological advancement.
Massachusetts, especially the Greater Boston area, is notorious for its traffic congestion. Commuting can be a time-consuming and frustrating experience, with the city frequently ranking high on lists of worst traffic in the United States. You’ll want to plan accordingly as the rush hour gridlock becomes a daily reality for those residing there.
With a rich array of museums, theaters, and galleries, Massachusetts boasts a vibrant cultural scene. Events like the Boston Marathon and various music festivals like Green River Music Fest in Greenfield highlight Massachusetts’ diverse cultural offerings all over the state.
Massachusetts experiences harsh winters, with heavy snowfall and cold temperatures often reaching below freezing. This can lead to disruptions in daily life, from transportation delays to increased heating costs, affecting residents’ comfort and safety.
Despite its urban centers, Massachusetts offers easy access to nature and outdoor activities, providing residents with a welcome escape from city life. Whether exploring the sandy shores of Cape Cod, skiing down the slopes of the Berkshire Mountains, or hiking along the picturesque trails of the Appalachian Trail, Massachusetts has a diverse array of landscapes and recreational opportunities to suit every preference and season.
The availability of affordable housing in Massachusetts is limited, making it challenging for many people to find suitable living arrangements. This issue is exacerbated in metropolitan areas, where the demand for housing continues to be competitive. Furthermore, as housing prices continue to rise, particularly in desirable urban neighborhoods, residents may face a lack of affordable housing.
Massachusetts has a strong and diverse economy, with sectors such as technology, education, and healthcare leading the way. This economic strength provides a wealth of job opportunities and contributes to a high standard of living for many residents. Additionally, Massachusetts’ reputation as a hub for research and development attracts top talent from around the world.
Seasonal allergies can be a significant issue for residents of Massachusetts, particularly in the spring and fall. The high pollen count during these seasons can affect people’s health and quality of life, making it uncomfortable for those with allergies. The top allergies in Plymouth are Elm, Juniper and Poplar trees which can trigger allergic reactions.
The state has a rich sports culture, with passionate fan bases for teams like the Boston Red Sox, New England Patriots, and Boston Celtics. This creates a vibrant community atmosphere, bringing residents together in celebration of their beloved teams and shared sporting traditions.
Massachusetts residents face relatively higher property taxes compared to the national average, placing an additional financial strain on homeowners. With an average effective tax rate of 1.12%, surpassing the national average of 0.99%, the cost of homeownership in the state becomes notably more burdensome. These elevated property taxes contribute to the overall higher cost of living in Massachusetts, posing challenges for those aspiring to achieve homeownership in the state.
Methodology : The population data is from the United States Census Bureau, walkable cities are from Walk Score, and rental data is from ApartmentGuide.
Source: apartmentguide.com
Vermont’s scenic landscapes blend seamlessly with the urban sophistication found in its cities, creating an inviting atmosphere for renters. Vermont offers a unique living experience, where the beauty of nature meets the convenience of urban living, making it an ideal destination for those looking to call the Green Mountain State home. From the charming streets of Burlington to the small town of Montpelier, this ApartmentGuide article will highlight the pros and cons of living in Vermont.
Vermont’s landscape is a playground for outdoor enthusiasts, offering a plethora of activities from skiing and snowboarding in the Green Mountains to hiking the Long Trail. The state’s natural beauty, including the serene Lake Champlain, provides a perfect backdrop for adventure and relaxation.
Vermont is known for its brutally cold winters that can present challenges for residents. The heavy snowfall and below-freezing temperatures in the winter months can make daily commutes difficult and increase heating costs significantly.
In Vermont, there’s a strong emphasis on community and localism. Farmers’ markets, community events, and local festivals are commonplace, fostering a close-knit environment where neighbors support each other. This sense of community is especially palpable in towns like Essex Junction.
Compared to larger states like neighboring Massachusetts and New York, Vermont offers fewer options for nightlife and entertainment, particularly in its smaller towns and rural areas like Wilder. While Burlington boasts a more vibrant scene, other parts of the state may lack variety for those seeking extensive nightlife activities.
Vermont is a leader in environmental conservation and sustainability, boasting extensive green spaces, parks, and a commitment to renewable energy. The state’s efforts to preserve its natural resources and promote sustainability can be seen in its policies and community initiatives, such as the Vermont Clean Energy Development Fund, which supports renewable energy projects statewide, and the Vermont Land Trust, which conserves thousands of acres of land for public use and ecological preservation.
Despite its many attractions, Vermont has a higher cost of living compared to the national average. This is reflected in its housing, healthcare, and general expenses. Residents may find themselves spending more on daily necessities than they would in other states. In popular metros like Burlington, the average rental price for a one-bedroom is $1,800, which can be a significant expense for those looking for housing options.
Vermont is famous for its quality local foods, including maple syrup, cheese, and craft beer. The state’s focus on farm-to-table dining means residents and visitors can enjoy fresh, locally-sourced ingredients at restaurants and markets throughout the state. In fact, if you’re craving something sweet, you should try a scoop of Ben & Jerry’s ice cream, which was founded in Burlington.
Public transportation options in Vermont are limited, especially in rural areas. This can make it challenging for those without personal vehicles to navigate the state, particularly during the winter months when weather conditions can disrupt travel. Even in larger cities like Burlington, the transit score is 39, making it a car-dependent location.
Vermont’s stunning fall foliage is a major draw, as the state’s landscape transforms into a vibrant tapestry of reds, oranges, and yellows during the autumn months. Iconic locations such as the scenic Route 100, the quaint town of Stowe, and the picturesque shores of Lake Champlain offer breathtaking views of Vermont’s foliage at its peak.
The state’s economy is relatively small, which can limit job opportunities in certain sectors. While Vermont has a thriving agricultural and tourism industry, those seeking careers in more diverse fields may find fewer options compared to larger states.
Vermont’s residents place a high value on health and wellness, contributing to the state’s reputation as one of the healthiest in the country. This is supported by a wide range of outdoor activities, health food stores, and community wellness programs. Additionally, Vermont’s commitment to organic farming and sustainable agriculture ensures access to fresh, locally sourced produce.
Some may find Vermont’s rural character and small-town feel isolating, especially those accustomed to the hustle and bustle of larger cities. The state’s tranquil setting and slower pace of life, while appealing to many, may not suit everyone’s social and professional needs.
Methodology : The population data is from the United States Census Bureau, walkable cities are from Walk Score, and rental data is from ApartmentGuide.
Source: apartmentguide.com
Located on the historic shores of Massachusetts Bay, Boston stands as a beacon of American culture, innovation, and resilience. From the iconic Freedom Trail to the towering skyscrapers of the Financial District, Boston offers experiences unlike any other. With world-class universities, a thriving arts scene, and a passionate sports culture, Boston captures the essence of both tradition and progress. So, if you’ve been asking yourself, “Should I move to Boston, MA?” you’re in the right place. In this article, we’ll discuss the pros and cons of living in Boston to help you decide if this city is right for you. Let’s dive in.
Walk Score: 83 | Bike Score: 69 | Transit Score: 72
Median Sale Price: $735,000 | Average Rent for 1-Bedroom Apartment: $3,780
Boston neighborhoods | houses for rent in Boston | apartments for rent in Boston | homes for sale in Boston
Boston’s rich history is palpable in its cobblestone streets and historic landmarks. The Freedom Trail offers a walk through the city’s revolutionary past, connecting 16 sites that played a pivotal role in America’s fight for independence. This unique blend of history and urban living provides residents with a sense of connection to the nation’s beginnings, making it a unique place to call home. Living in Boston means being surrounded by stories and monuments that shaped the United States, offering an educational and inspiring environment.
Boston ranks in the top 10 of U.S. cities most at risk of storms. This means that the winters in Boston can be particularly harsh and can present a significant challenge for its residents. The city is known for its heavy snowfalls and cold temperatures, which can disrupt daily life, from commuting issues to increased heating costs. Snowstorms can lead to significant snow removal efforts and occasionally, city-wide shutdowns. This aspect of Boston living requires residents to be prepared for a level of winter that goes beyond the picturesque first snowfall, turning into a months-long ordeal.
Boston is a global hub for higher education, home to prestigious institutions like Harvard University and MIT, among others. This concentration of top-tier universities attracts a diverse and dynamic community, fostering an environment of innovation and academic excellence. For residents, this means access to cutting-edge research, public lectures, and cultural events that are hard to find elsewhere. The presence of these institutions also contributes to the city’s job market, especially in fields like technology, medicine, and education.
While Boston’s public transportation system, the MBTA, connects much of the city and its suburbs, it’s often criticized for its reliability issues. Delays, maintenance problems, and overcrowding can make commuting a frustrating experience for some. Despite efforts to improve service and infrastructure, the system’s challenges remain a significant con for locals who rely on public transit for their daily commute. This aspect of city living can affect quality of life and accessibility within Boston.
Boston’s cultural scene is vibrant and diverse. From the Boston Symphony Orchestra and the Museum of Fine Arts to smaller galleries and theaters, the city is a haven for arts and culture enthusiasts. The annual Boston Marathon, one of the world’s oldest, draws participants and spectators from around the globe. This rich tapestry of cultural offerings enriches the lives of Boston residents, providing countless opportunities for entertainment, learning, and community engagement.
One of the significant drawbacks of living in Boston is its high cost of living. In fact, the cost of living in Boston is 47% higher than the national average. Housing prices are among the highest in the country, making it challenging for many to afford a home in the city. The cost extends beyond housing, with high prices for groceries, utilities, and other essentials. This financial barrier can make it difficult for some individuals to enjoy all that Boston has to offer.
The job market in Boston is robust, driven by industries such as technology, healthcare, and education. The presence of world-renowned universities and hospitals fosters an environment of innovation and research, creating numerous job opportunities. This dynamic job market attracts individuals from around the world, making Boston a city of diverse talents and ideas. For residents, this means access to a wide range of career opportunities and the chance to be at the forefront of their fields.
Parking in Boston can be a nightmare, with limited availability and high costs deterring even the most patient drivers. The city’s narrow, winding streets, a remnant of its colonial past, were not designed to accommodate modern traffic volumes, leading to congestion and frustration. For residents who own cars, this means dealing with the daily hassle of finding parking and navigating through heavy traffic, which can be both time-consuming and stressful.
Boston is home to an array of stunning green spaces and public parks, offering residents a respite from urban life. The Boston Common, America’s oldest public park, and the adjacent Boston Public Garden provide scenic walking paths, recreational facilities, and seasonal beauty. The Emerald Necklace, a series of connected parks designed by Frederick Law Olmsted, encircles the city, offering miles of greenery. These spaces not only enhance the city’s beauty but also promote a healthy lifestyle and community gathering.
For many Boston locals, the changing seasons bring the challenge of seasonal allergies. The city’s abundant green spaces, while beautiful, contribute to high pollen counts in the spring and fall. This can be a significant inconvenience for those sensitive to allergens, affecting their quality of life and ability to enjoy the outdoors during these times. Managing allergies becomes a part of daily life for many, requiring preparation and sometimes limiting participation in outdoor activities.
Boston’s sports culture is legendary, with a passionate fan base for its professional teams like the Red Sox, Celtics, Bruins, and Patriots. The city’s deep sports history and the fervent loyalty of its fans create an exciting atmosphere, especially during game days. Living in Boston means being part of this spirited culture, whether you’re attending a game at Fenway Park or watching with friends at a local bar. This shared passion brings the city together, creating a sense of belonging and community pride.
While Boston offers a wide range of dining and entertainment options, the cost of enjoying these amenities can be high. From upscale restaurants in the Back Bay to tickets for shows in the Theater District, indulging in the city’s cultural offerings often comes with a steep price tag. This aspect of Boston life means that residents may have to budget carefully to enjoy the city’s culinary and entertainment scenes, potentially limiting access to these experiences for some.
Source: rent.com
*Rates and APYs are subject to change. All information provided here is accurate as of March 28, 2024.
Our writers and editors have invested thousands of hours analyzing and vetting lenders offering VA loans. Through exhaustive research, we’ve come up with a list of the best VA mortgage lenders for military members and their families, including Navy Federal, Rocket Mortgage and Veterans United. Read on for our Best VA loan lender reviews and a comprehensive lending guide on how to find and apply for a VA loan.
HIGHLIGHTS
Why we chose it: A combination of low lender fees, several loan assistance programs and a wide selection of mortgage loans make Navy Federal Credit Union our best VA loan lender overall.
Navy Federal Credit Union offers military families low rates on financial products, such as personal loans, auto loans and credit cards. The credit union’s VA home loan program features a fast pre-approval process and loan options with no down payment. No PMI is required, either. Navy Fed also recently introduced its no-refi rate drop, where you could qualify for an interest rate reduction without going through the refinancing process.
Additionally, Navy Federal’s Shop & Lock feature allows you to lock in your rate for up to 60 days while you shop for a home, plus an additional 60-day lock once you’ve submitted a purchase agreement. Other perks include up to $9,000 cash back for working with a real estate agent at RealtyPlus, the credit union’s real estate service and a rate match guarantee where Navy Federal will match a better rate offered by another lender or give you $1,000 if all qualifying conditions are met.
Membership is required to use Navy Federal’s services. All active duty, retired and veteran service members of all armed forces branches — plus their families, immediate relatives and some household members — are eligible. Membership is also open to Department of Defense civilian personnel. To become a member, you simply open a savings account with a minimum of $5.
HIGHLIGHTS
Why we chose it: Rocket Mortgage’s (formerly Quicken Loans) fully online application and closing process, along with its multiple tools for keeping track of your in-process and existing loans make it our pick for best online VA loan lender.
Rocket Mortgage is an online lender that stands out for its relatively seamless online mortgage application process. While the experience may vary depending on each borrower’s situation, Rocket Mortgage’s website and mobile app allow you to submit all of your paperwork digitally and track every step of your loan’s processing.
While you have the option of speaking with a live representative, you can also communicate with Rocket Mortgage through online or mobile messaging.
Although Rocket Mortgage doesn’t have the broadest loan offering, it does work with all the major VA loans (purchase, refinance, IRRRL) and considers credit scores as low as 580 and debt-to-income ratios as high as 60%. Borrowers buying a home through Rocket Homes and financing through Rocket Mortgage could get a 1.25% closing credit, up to a maximum of $10,000.
For more detailed information, read our full review of Rocket Mortgage (Quicken Loans).
HIGHLIGHTS
Why we chose it: Veterans United offers more veteran-focused mortgage options than the standard purchase, refinance and streamline products, making it our choice for best VA loan lender for VA loan variety.
Veterans United guarantees more loans than any other VA-approved lender, according to The Department of Veterans Affairs. The VA compiles a list each month of the top lenders, and Veterans United Home Loans hasn’t budged from its number-one spot in more than six months.
In addition to its reasonable qualifying credit score and income requirements, Veterans United offers a wide variety of loan types: purchase, refinance, IRRRL (streamline) VA loans, Jumbo VA loans, VA energy-efficient mortgages and VA cash-out refinance loans.
Jumbo VA loans can be a good option for veterans who no longer have their full VA entitlement, which means that their VA loans have a limit placed on the total amount borrowed (unlike veterans with full entitlement). Energy-efficient mortgages are not common to VA loans and are a good option for anyone looking to add energy-efficient improvements to their new home.
HIGHLIGHTS
Why we chose it: PenFed currently offers the lowest mortgage rate for a 30-year fixed-rate loan, which makes it our pick for the best VA loan lender for competitive rates.
When it comes to VA loans and mortgages, PenFed Credit Union stands out for offering some of the lowest rates across the board on conventional, FHA, VA, Jumbo and adjustable-rate mortgages. Eligible borrowers may qualify for zero down payment. Additionally, PenFed doesn’t require borrowers to acquire private mortgage insurance (PMI).
You must be a member of PenFed to use PenFed’s VA loan services, but joining is an easy process: Simply open a savings account at the credit union with a minimum of $5.
For more detailed information, read our full review of Penfed.
HIGHLIGHTS
Why we chose it: North American Savings Bank is dedicated to servicing customers in the Kansas City, MO area, but it extends its mortgage services to individuals all over the U.S. Notably, NASB works with borrowers with credit scores as low as 600, lower than what other many lenders allow.
No origination fees are charged on VA loans from NASB, but a VA loan funding fee may be required. Many loans don’t require a down payment, either. NASB offers a loan payment calculator on its site where borrowers can see potential VA home loan rate scenarios.
In addition to standard VA loan products (purchase, IRRRL, cash-out refinance), North American Savings Bank offers the widest variety of mortgage options for individuals who are unable to provide “traditional” credit and income data, such as people who are self-employed.
HIGHLIGHTS
Why we chose it: For those looking to refinance their existing VA loan, USAA offers all of the possible options with competitive rates and terms.
USAA stands out as a VA loan refinance leader for offering all the available options: VA Interest Rate Reduction Refinance Loans (IRRRL), VA Jumbo Interest Rate Reduction Loans, VA Cash-Out Refinance Loans and Jumbo VA Cash-Out Refinance Loans. With either cash-out refinance, you can refinance up to 90% of your home’s value. With IRRRLs, you can refinance up to 100%.
However, rates at USAA aren’t the lowest among the lenders in our top picks. Still, the company’s rates are within the typical range for the market and the option to finance your VA funding fee into your total loan amount is available with all four refinance types.
USAA offers additional financial products and services, such as insurance, banking and investing. All of its products are available only to members. Military members, veterans, their spouses, children, and pre-commissioned officers are eligible.
Members also get discounts for bundling (e.g. home and auto insurance) as well as discounts on car rentals, travel packages, home security, moving services, select retailers and more.
*USAA does not disclose the credit score, loan amount or down payment of its advertised rates. To get a better estimate of your potential monthly payment, use the USAA VA Home Loan Mortgage Payment Calculator.
HIGHLIGHTS
Why we chose it: LendingTree is an online marketplace that allows you to compare rates on multiple products, from mortgages to personal loans and even credit cards, making it our pick for the best marketplace for comparing VA loan rates.
LendingTree stands out from its competition due to its more than 1,500 partnered mortgage lenders and easy-to-use mobile app.
Borrowers can request multiple quotes (up to three at the same time), which include projected rates and closing costs all in one place. It is also free to use and doesn’t impact your credit score.
The only notable downside to LendingTree’s services is that the company is not a loan servicer or originator, meaning that its customer support will not handle most issues that may come up during your loan process.
LendingTree does not provide sample rates for VA loans specifically. However, you can use the online marketplace’s mortgage comparison tool to check potential rates.
For more details read our full review of Lending Tree.
HIGHLIGHTS
Why we chose it: New American Funding is our top pick for low credit score requirements for VA loans. While its 580 minimum credit score requirement is not unique on the list, it has a vast selection of mortgage loans. Beyond the VA Purchase Loan, there’s also a VA Native American Direct Loan, VA Energy Efficient Mortgage, VA Streamline Refinance Loan and VA Cash-Out Refinance.
Notably, it offers what NAF refers to as an “I CAN” loan, which allows you to choose a custom fixed loan term between eight and 30 years. It also offers a “buydown mortgage” option for VA loans, which allows borrowers to reduce the interest rate on their mortgage for the first one to three years of their loan.
To get a quote, you must contact a representative online or by phone, which requires providing personal information — first and last name, email address and phone number.
For more detailed information, read our full review of New American Funding.
HIGHLIGHTS
Why we chose it: Fairway Independent Mortgage’s presence in 48 out of 50 U.S. states makes it our top pick for in-person mortgage loan servicing.
Fairway Independent Mortgage is notable for its many branches across all but two U.S. states (Alaska and West Virginia), making it an ideal choice for individuals who prefer in-person service. The company offers VA mortgage loans with 100% financing if you have full VA entitlement.
A down payment will be required if you don’t have full VA entitlement or the loan exceeds the VA county limits. Like other VA loan lenders, Fairway Independent Mortgage also considers factors such as credit score and income when determining loan terms.
Fairway also offers a broad range of mortgage products which can be helpful for those who are unable to qualify for a VA loan. Among these loan products are specialized physician loans aimed at medical professionals still working through repaying their student loans.
For more detailed information, read our full review of Fairway Independent.
While there are many mortgage lenders with outstanding products and features, they don’t necessarily have everything that could make them one of our top picks.
We reviewed the following lenders, and while they meet some of our criteria for “Best VA home loan lenders” (low rates, VA loan experience, good customer service), they ultimately didn’t make the cut.
Why Freedom Mortgage didn’t make the cut: The lender has over 2,800 complaints lodged with the Consumer Financial Protection Bureau since March 2021. The Better Business Bureau has received over 1,200 complaints about the lender in the last three years and its accreditation was revoked.
Freedom Mortgage is a fully online lender that offers standard mortgage products such as conventional purchase and refinance loans, FHA, VA and USDA loans. What makes it stand out is its credit score requirement of 550 for VA loans, which is the lowest of any lender we considered.
Why Veterans First didn’t make the cut: The higher-than-average credit score requirement (mid-600s) was a deciding factor in keeping it out of our top list.
Thanks to its fully online mortgage process, Veterans First (NMLS ID 449042) is a great choice for military members deployed overseas. Its focus on VA loans also means that the company is better prepared to attend to the specific needs of military members and veterans during the mortgage process.
Why Paramount Bank didn’t make the cut: Its general lack of upfront information about rates, fees and credit score requirements kept it out of our top lenders.
Paramount Bank (NMLS ID 551907) waives the lender’s origination fee ($1095) on all of its VA loans, making it an option worth considering. There are no prepayment penalties, either.
Why Flagstar Bank didn’t make the cut: Flagstar’s lack of branches in almost half of the U.S. and limited rate and fee information on its website kept it out of our top picks. For more details, read our full review of Flagstar Bank.
Flagstar Bank (NMLS ID 417490) is a notable mortgage lender thanks to its wide variety of mortgage loans offered and its collaboration with several special mortgage programs such as down payment assistance and home loan grants.
Why PNC didn’t make the cut: While full details aren’t available without speaking to an agent, PNC’s rate calculator shows rates slightly higher than many of our top picks.
PNC (NMLS ID 446303) has a standard offering of mortgage products, including conventional, FHA, VA, refinance and HELOC loans. PNC only offers a partially online loan application process. You can perform a digital income and asset verification, but you must speak with a loan officer to go over your loan details.
Why LoanDepot didn’t make the cut: Its website doesn’t disclose credit score and other loan eligibility requirements. For more details, read our full review of LoanDepot.
LoanDepot (NMLS ID 174457) is a primarily online mortgage loan lender with several affiliate branches across the U.S. Its loan products include conventional purchase mortgages, FHA, VA, ARM (adjustable-rate) and 203k (FHA home renovation) loans. LoanDepot’s digital income and assets verification tools can significantly speed up the loan approval process in some cases.
Why Guild Mortgage didn’t make the cut: No rate information is publicly available; you must contact Guild for details. For more information, read our full review of Guild Mortgage.
Guild Mortgage (NMLS ID 3274) offers a variety of mortgage options beyond VA loans, including bridge mortgages that can help you sell your current home while shopping for a new one and energy-efficient mortgages.
Guild is also a good choice for people who prefer in-person service, since they have branches in all but seven U.S. states. Notably, Guild services its loans, which is something that not all mortgage loan originators do.
Why Guaranteed Rate didn’t make the cut: Its VA loan product offerings are limited.
Guaranteed Rate (NMLS ID 2611) is a mortgage lender that allows borrowers to fully process their loan applications online, from start to finish. Individuals who prefer in-person service can also go to one of its 500+ locations across 46 states.
Why Movement Mortgage didn’t make the cut: Rate information isn’t publicly available to potential borrowers; you must contact the company for details. For more information, read our full review of Movement Mortgage.
Movement Mortgage (NMLS ID 39179) is an online mortgage lender that claims to be able to fully close on a loan in under two weeks, though these results will depend on each borrower’s situation. Notably, Movement considers credit scores as low as 580 for VA loan applications, well under the VA’s suggested 620.
Besides its VA loan products, Movement also has several down payment assistance and high-balance mortgage options, which are helpful for individuals looking to purchase in high cost-of-living areas.
Why NBKC Bank didn’t make the cut: Its VA loan rates are a bit higher than those of our top picks. For more details, read our full review of NBKC.
NBKC Bank (NMLS ID 409631) is a Kansas/Missouri regional bank that extends its mortgage services nationwide. While its loan offerings are standard (conventional, FHA, VA), it offers specialty home loans for pilots.
Notably, it is one of the few lenders that allows customers to obtain mortgage rates for credit scores under 500, although you’re not guaranteed results below that threshold. Its mortgage rates are also considerably higher than average (up to 1.5% higher).
A VA loan is a home loan issued by private lenders and backed by the U.S. Department of Veterans Affairs (VA). Read on to learn more about VA home loans, their pros and cons, the associated costs and how to apply.
VA loans are one of the main benefits the government provides to active duty and retired members of the armed forces. Eligibility will depend on the borrower’s years of service. There are also property requirements that must be met. Read more on VA loans to find full details and see how a VA loan can help you achieve your homeownership goal.
Beyond military service requirements, some VA loan lenders require specific standards of creditworthiness. These details will vary by lender, but can include a credit score of 620 or higher and a debt-to-income ratio of 41% or less. (You can calculate your specific percentage using our debt-to-income ratio calculator.)
VA loans offer two big advantages for qualifying homebuyers. There is no required down payment, and the mortgage rates tend to be lower than those on conventional mortgages or FHA loans. Both of these features make a VA loan a more affordable financing option, especially for first-time homebuyers.
The VA no longer places maximum loan limits, but your VA mortgage lender might. In most U.S. counties, the maximum loan amount for 2024 is $766,550, but it can be as high as $1,149,825 in more expensive areas. Jumbo loans will have a higher limit.
The U.S. Department of Veterans Affairs offers four different types of mortgages — VA purchase loan, interest rate reduction refinance loan (IRRRLs), cash-out refinance loan, and Native American direct loan — each with its own set of requirements and limitations. Evaluate all loan options before deciding which best VA mortgage lender suits your needs.
Purchase loans are used to finance the buying of a primary residence, make energy-efficient upgrades to an existing home or buy property to build a house. They cannot be used to buy investment properties, vacation homes, rental properties or fixer-uppers in need of significant repairs.
To learn more, read our guide on VA purchase loans.
Designed to refinance an existing VA mortgage, a streamlined refinance can get you a lower interest rate, reduce the loan term, or go from a variable-rate to a fixed-rate mortgage.
A VA cash-out refinance allows you to access the equity you’ve built up in your home by applying for a new mortgage with a higher balance. The proceeds of the new loan will pay off your old mortgage and you’ll receive the excess amount in the form of a lump sum payment.
Learn more about how to tap into your home equity with a VA cash-out refinance or read our guide on on how to refinance a VA loan to get more information on refinancing.
NADL is the only VA loan managed and funded directly by the government entity. Veterans who are Native American (or whose spouses are Native American) are eligible for this loan. Borrowers can use this loan to buy, build, or improve a home on federal trust land.
As of this writing, there is no limit to the amount of money that can be borrowed with this program (aside from the limitations imposed by creditworthiness, DTI, and general Fannie Mae/Freddie Mac conforming limits, though borrowers can access higher limits if they choose to make a down payment).
VA Energy Efficient Mortgage (EEM)
Finance energy efficient home improvements, such as a solar water heater, solar panels, storm doors on windows and furnace efficiency modifications, through an EEM. Ineligible home upgrades include A/C units, vinyl siding and new roofing or shingles.
VA renovation loan
Also called a VA rehab loan or a reno loan, a VA renovation loan is a way to include the cost of home repairs and improvements in your VA home loan amount. No luxury upgrades are allowed. This loan is intended for repairs such as heating and cooling system replacement, upgrades to make the home more accessible for people with disabilities and the replacement of old appliances.
VA loans for manufactured homes
You can get financing for a manufactured home, also known as a mobile home or a modular home. However, there is a 25-year maximum loan term on larger units, and a 20-year loan term limit on smaller units. Lender credit requirements for VA mobile home loans may also be higher than loans for conventional homes. The mobile home must also have a permanent foundation and comply with safety standards set by the U.S. Department of Housing and Urban Development (HUD).
To explore other home loan options or check out current mortgage rates, our page of the best mortgage lenders can be an excellent place to start.
There are specific requirements you must meet to qualify for a VA home loan.
There are specific requirements you must meet to qualify for a VA home loan.
The VA home loan program and its military benefits are available for:
A VA home loan does not have a minimum credit score requirement, but most participating VA loan lenders require a minimum credit score of 620. Our advice? Always check your credit report and debt-to-income ratio before applying for a loan and improve it if you can. (Be sure to read our guide on how to dispute your credit report.)
VA loan eligibility depends on the length of service of the applicant. These are the requirements as set by the VA:
In all cases, once deemed eligible, you must apply for a Certificate of Eligibility (COE). The COE proves to the VA mortgage lender that you meet the VA’s eligibility requirements.
After confirming eligibility for a VA loan, take the following steps to apply:
Once your lender accepts your application, they’ll work with you to select a title company (or entity) to close on the house.
If you have any questions that your lender can’t answer, please call your VA regional loan center at 877-827-3702. You can also watch a video on the official U.S. Dept. of Veteran Affairs’ YouTube page to learn more about VA home loans and how to apply.
Some lenders will issue a VA loan to veterans and service members with credit scores as low as 580 or lower. Freedom Mortgage, for example, will accept a credit score as low as 550. However, most lenders will require a minimum credit score of 620.
If you don’t meet the minimum credit score required, you should work on improving your personal finances. Paying the bills on time, paying off any debt you currently have and contacting the reporting agency to fix any errors are some steps that can help improve your score.
A VA loan is a no-down-payment mortgage military benefit partially backed by the Department of Veterans Affairs (VA). Borrowers can use the loans for the purchase of a primary residence or to refinance an existing mortgage.
To qualify for a VA loan, you or your spouse must meet the basic service requirements set by the Department of Veterans Affairs (VA), have a valid Certificate of Eligibility, and meet the lender’s income and credit requirements.
You can use a VA loan more than once but only to purchase or refinance a principal residence, provided you meet the availability requirements. However, you may be able to use a partial entitlement for a second loan if you haven’t used it all on your first mortgage. Remember that using a partial entitlement may mean you’ll need to shell out a down payment and a higher VA funding fee.
Because VA loans are backed by the U.S. government, they can be assumed by a new lender even if they are not active military or veterans. In order to assume a VA loan, the new borrower must have a minimum credit score of 580, a DTI of 45% or lower, pay the VA funding fee and ensure the home will be their primary residence. In some cases, a down payment may also be required.
VA loans typically take a little longer than a traditional mortgage loan to close. Although the experience may vary from one person to another, VA loans take about 50 to 55 days to close on average. However, it is possible to close on a VA in as little as 30 days in some cases.
No, VA loans do not require private mortgage insurance or any other type of mortgage insutance that is required by other loan types, such as conventional and FHA loans. The lack of an insurance requirement is one of the main benefits of obtaining a VA loan, along with not having to make a down payment.
Yes, VA loans have closing costs, which can amount to 3% to 6% of the loan amount. These costs include fees associated with the loan origination and underwriting, title insurance and recording fees and the VA appraisal fee, among others. The VA funding fee, which ranges between 1.25% and 3.3% of the loan amount, is also due at closing but can be rolled into the loan. The home seller can pay up to 4% of the closing costs on a VA loan.
Given that many mortgage lenders offer similar products across the board, we narrowed our search criteria to three factors: rates, experience and customer service.
We also made sure that our picks are registered with the Nationwide Multistate Licensing System and Registry (NMLS) and meet the minimum certification requirements for mortgage lending.
Though we always try to include accurate and up-to-date information on regulatory and legal actions, we don’t claim this information is complete or fully up to date. Interest rates and annual percentage rates are subject to change. As always, we recommend you do your own research as well.
Source: money.com
What if you could secure a USDA home loan that allows you to buy a house with no down payment, competitive mortgage rates, and reduced mortgage insurance costs?
It might sound like a dream, but it’s entirely possible with the USDA mortgage program. Designed to assist low- and moderate-income Americans in becoming homeowners, USDA loans provide incredibly affordable financing options for eligible buyers.
Essentially, USDA mortgages empower individuals to transition from renting to owning, even when they thought homeownership was out of reach.
Verify your USDA loan eligibility. Start here
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>Related: How to buy a house with $0 down: First-time home buyer
USDA loans are mortgages backed by the U.S. Department of Agriculture as part of its Rural Development Guaranteed Housing Loan program. The USDA offers financing with no down payment, reduced mortgage insurance, and below-market mortgage rates.
Verify your USDA loan eligibility. Start here
The USDA mortgage program is intended for home buyers with low-to-average household incomes. In order to qualify, you must also purchase a home in a “rural area” as the USDA defines it. Those who are eligible can use a USDA mortgage to buy a home or refinance one they already own.
USDA loans offer nearly unbeatable benefits for qualified borrowers. So if this program sounds like a good fit for you, it’s worth getting in touch with a participating lender to find out if you’re eligible.
The U.S. Department of Agriculture insures USDA loans. Thanks to government guarantees and subsidies, lenders can offer 100% financing and below-market interest rates without taking on too much risk.
Verify your USDA loan eligibility. Start here
Although the USDA backs this program, it typically isn’t the one lending money. Instead, private lenders are authorized to offer USDA loans. That means you can get a USDA mortgage from many mainstream banks, mortgage lenders, and credit unions.
The application process for a USDA mortgage works just like any other home loan. You’ll compare rates and choose a lender, complete an application (often online), provide financial documents, wait for the lender’s approval, and then set a closing day.
The only exception is for very low-income borrowers, who may qualify for a USDA Direct home loan. In this case, you’d go straight to the Department of Agriculture to apply rather than to a private lender.
For eligible individuals and families looking to buy, build, or renovate a home in a rural area, the USDA offers three main mortgage loan types. The loan programs are as follows:.
Verify your USDA loan eligibility. Start here
Approved private lenders, such as banks and mortgage companies, provide USDA loan guarantees to qualified borrowers. A USDA guaranteed loan is one in which the government backs a portion of the loan, lowering the lender’s risk and allowing them to offer more favorable terms to the borrower. These loans frequently have low interest rates, no down payment, and more lenient credit requirements. The property must be in an eligible rural area as the USDA defines it, and borrowers must meet household income requirements that vary depending on location and household size.
The USDA also offers the Single Family Housing Direct loan through the Section 502 Direct Loan Program. These loans are meant to help low-income families buy, build, or fix up small homes in rural areas. The USDA, rather than private lenders, provides funding for direct loans as opposed to guaranteed loans. These loans have favorable terms, such as low interest rates (as low as 1% with payment assistance) and long repayment periods (up to 38 years for eligible applicants). Income, creditworthiness, and the property’s location in an eligible rural area determine eligibility for direct loans.
The USDA’s Single Family Housing Repair Loans and Grants program, also known as the Section 504 program, provides financing for home improvements. This program provides low-interest, fixed-rate loans and grants to low-income rural homeowners for necessary home repairs, improvements, and modifications that make their homes safer, more energy-efficient, and more accessible. However, if you’re looking for one, you might have a difficult time finding this type of USDA home loan. They are not widely available from lenders.
To be eligible for a USDA home loan, you’ll need to meet a number of requirements that vary depending on whether you are applying for a USDA loan guarantee or a USDA direct loan.
Verify your USDA loan eligibility. Start here
Some general requirements, however, apply to all USDA loans, specifically those based on both buyer and property eligibility.
The USDA defines an eligible area in rural America as having a population of 20,000 or fewer. To check if the property you’re considering falls within these designated areas, the USDA’s eligibility site provides all the necessary information. We also provide a USDA eligibility map below.
USDA loans are exclusively available for primary residences. Neither investment properties nor second homes are eligible for this program.
The property must adhere to the USDA’s minimum property requirements, which focus on safety, structural integrity, and adequate access to utilities and services.
You must meet USDA monthly income limits, meaning your household income can’t exceed 115% of the area median income. Conforming to USDA income eligibility requirements ensures the program is accessible to those it’s intended to serve.
Applicants are required to demonstrate a stable and dependable income, typically for at least 24 months, before applying. This helps ensure borrowers can maintain their loan payments.
Although USDA loans are known for their flexible credit requirements, creditworthiness is still important. Lenders usually seek a minimum credit score of 640 for guaranteed loans, with USDA Direct Loans potentially having more lenient criteria.
Your monthly debt, including future mortgage payments, generally should not exceed 41% of your gross monthly income. However, lenders may make exceptions based on credit score and available cash reserves.
Applicants need to be U.S. citizens, U.S. non-citizen nationals, or qualified aliens with a valid Social Security number to qualify for a USDA loan.
The USDA eligibility map is a valuable online resource for potential borrowers. It helps them identify if a property is situated in an area of rural America that qualifies for USDA home loans.
Verify your USDA loan eligibility. Start here
Users can enter a specific address or explore areas of the map to see if they qualify for USDA guaranteed loans or direct loans by using this interactive map.
1 Source: USDAloans.com, based on Housing Assistance Council data
Compared to other home loan programs, USDA mortgage interest rates are some of the lowest available.
Check your USDA loan rates. Start here
The VA loan, specifically tailored for veterans and service members, stands alongside the USDA loan as one of the few government-backed loan programs offering competitively low rates. Due in large part to the security that government subsidies and guarantees provide, both the USDA and VA programs are able to offer interest rates below the market average.
Other mortgage programs, like the FHA loan and conventional loan, can have rates around 0.5%–0.75% higher than USDA rates on average. That said, mortgage rates are personal. Getting a USDA loan doesn’t necessarily mean your rate will be “below-market” or match the USDA loan rates advertised.
Strengthening your financial standing is essential for obtaining the best USDA loan rates. Here are some helpful techniques for improving your personal finances:
When it comes to financing a home purchase with a USDA loan, it’s not just the mortgage rate that you need to consider. You’ll be responsible for various fees and costs, which can add up over time. Understanding these costs upfront can help you make a more informed decision and plan your budget accordingly.
Here’s a breakdown of the expenses you can expect:.
The USDA guarantees its mortgage loans, meaning it offers protection to approved mortgage lenders in case borrowers default. But the program is partially self-funded. To keep this loan program running, the USDA charges homeowner-paid mortgage insurance premiums.
Verify your USDA loan eligibility. Start here
One of the first costs you’ll encounter is the upfront guarantee fee. This fee is a percentage of the loan amount and is required by the USDA to secure the loan. It’s usually around 1% but can vary. You can either pay this fee upfront or roll it into the loan balance.
Unlike conventional loans that may not require mortgage insurance, USDA loans come with a monthly mortgage insurance premium. You can expect to pay a 0.35% annual guarantee fee based on the remaining principal balance each year.
The annual fee is broken into 12 installments and included in your regular mortgage payment.
As a real-life example, a home buyer with a $100,000 loan size would have a $1,000 upfront mortgage insurance cost plus a monthly payment of $29.17 for the annual mortgage insurance. USDA upfront mortgage insurance is not paid in cash. It’s added to your loan balance, so you pay it over time.
Before the loan is approved, the property will need to be inspected to ensure it meets USDA property eligibility requirements. This inspection can cost anywhere from $300 to $500, depending on the location and size of the home.
Closing costs are a mix of fees that include loan origination fees, appraisal fees, title search fees, and more. These costs can range from 2% to 5% of the home’s purchase price. Some of these costs can be rolled into the loan amount, but it’s best to be prepared to pay some of them out-of-pocket.
Qualifying for a USDA home loan can be a great way to finance a home, especially if you’re looking to buy in a rural area. These loans offer attractive benefits like zero down payments and competitive interest rates.
However, the USDA loan approval process involves several steps and specific eligibility criteria. Here’s a guide on how to apply for a USDA home loan.
Check your USDA loan eligibility. Start here
Before diving into the application process, it’s important to determine if you meet the USDA’s eligibility requirements. These typically include:
You’ll need to provide various documents to prove your eligibility, including:
Contact a USDA-approved lender to get pre-qualified for a loan. During this qualifying process, the participating lender will review your financial situation to give you an estimate of how much you can borrow.
Check if you’re eligible for a USDA loan. Start here
Both pre-approval and pre-qualification can give you a better idea of your budget and show sellers that you are a serious buyer.
Once pre-qualified, you can start looking for a property that meets USDA guidelines. Keep in mind that the home must be your primary residence and be located in an eligible rural area.
Working with a real estate agent who has experience with USDA loans can be a big advantage.
After finding the right property, you’ll need to fill out the USDA loan application. Your lender will guide you through this process, which will include a more thorough review of your financial situation and the submission of additional documents.
The lender will arrange for an appraisal to ensure the property meets USDA standards. An inspection may also be required to identify any potential issues with the home.
Once the appraisal and inspection are complete and all documentation is verified, you’ll move on to the loan approval stage. If approved, you’ll proceed to closing, where you’ll sign all necessary paperwork and officially secure your USDA home loan.
With the loan secured and the keys in hand, you’re now ready to move into your new home!
By following these steps and working closely with a USDA-approved lender, you can navigate the USDA home loan process with confidence. Always remember to consult with your lender for the most accurate and personalized advice.
USDA loans and conventional loans both have fixed terms and interest rates, but they’re different when it comes to down payments and fees.
USDA loans don’t ask for a down payment, unlike conventional mortgages, which usually require a 3% down payment. FHA loans require a 3.5% down payment. VA loans, like USDA loans, also don’t require a down payment.
Both USDA loans and conventional loans need an appraisal from an independent third party before the loan is approved.
The home appraisal for a conventional loan determines whether the loan amount and the home’s value match. If the loan amount doesn’t measure up to the market value of the home, the lender can’t get back their money just by selling the house. If you want to know more about the home’s condition, like the roof or appliances, you need to get a home inspector.
For a USDA loan, the appraisal does two things:
If you’re looking for a detailed report on the house, hiring a home inspector is still a good idea.
While conventional loans charge private mortgage insurance (PMI) when you make less than a 20% down payment, this isn’t the case with USDA loans. You don’t need PMI for USDA direct or guaranteed loans.
However, USDA guaranteed loans have a guarantee fee of 1% at closing and then an annual fee of 0.35% of the loan, added to your monthly payment. You can roll the initial fee into your loan amount.
The term for a USDA guaranteed loan is 30 years with a fixed rate. If you get a USDA direct loan, you can have up to 33 years to pay it back. If you’re a very low-income borrower, you might get up to 38 years to make it more affordable.
Verify your USDA loan eligibility. Start here
The USDA Rural Housing Mortgage, officially known as the Single Family Housing Guaranteed Loan Program, is a rural development loan aimed at helping single-family home buyers. It’s often referred to as a “Section 502” loan, based on the Housing Act of 1949 that created this program. Designed to stimulate growth in less-populated and low-income areas, this rural development loan is ideal for those looking to buy in eligible rural areas with the possibility of a zero-down payment.
The income limit for USDA home loans is based on your area’s median income. To be eligible for a USDA loan, you can’t exceed the median income by more than 15 percent. For example, if the median salary in your city is $65,000 per year, you could qualify for a USDA loan with a salary of $74,750 or less.
USDA lenders have to send each loan file to the Department of Agriculture for approval before underwriting. This can add around two to three weeks to your loan processing time.
No, cash-out refinancing is not allowed in the USDA Rural Housing Program. Its loans are for home buying and rate-and-term refinances only.
The USDA does not set loan limits, but your household income and debt-to-income ratio have a limit on the amount you can borrow. The USDA typically caps debt-to-income ratios at 41 percent. However, the program may be more lenient for borrowers with a credit score over 660 and stable employment or who show a demonstrated ability to save.
You can find a USDA loan lender by visiting the U.S. Department of Agriculture’s website, which maintains a list of approved lenders for the Rural Housing Program. The USDA Rural Housing loan offers a 30-year fixed-rate mortgage only, with no 15-year fixed option or adjustable-rate mortgage (ARM) program available.
Yes, USDA rural development loans allow both gifts from family members and non-family members for closing costs. Inform your loan officer as soon as possible if you’ll be using gifted funds, as it requires extra documentation and verification from the lender. Additionally, the USDA Rural Housing Program permits sellers to pay closing costs for buyers through seller concessions. These concessions may cover all or part of a purchase’s state and local government fees, lender costs, title charges, and various home and pest inspections.
No, the USDA loan program is designed specifically for primary residences and cannot be used for vacation homes, investment properties, or working farms. The Rural Housing Program focuses on residential property financing.
If you are a W-2 employee, you are eligible for USDA financing immediately, as there’s no job history requirement. However, if you have less than two years in a job, you may not be able to use your bonus income for qualification purposes. Self-employed individuals can also use the USDA Rural Housing Program. To verify your self-employment income, you will need to provide two years of federal tax returns, similar to the requirements for FHA and conventional financing.
Yes, the USDA loan program can be used for various purposes, including making eligible repairs and improvements to a home (such as replacing windows or appliances, preparing a site with trees, walks, and driveways, drawing fixed broadband service, and connecting utilities), permanently installing equipment to assist household members with physical disabilities, and purchasing and installing materials to improve a home’s energy efficiency (including windows, roofing, and solar panels).
Yes, along with U.S. citizens, legal permanent residents of the United States can also apply for a USDA loan.
USDA mortgage interest rates consistently rank among the lowest in the market, next to VA loans.
USDA loans can be particularly attractive to borrowers seeking optimal financial terms, especially in an environment with elevated interest rates. Prospective homebuyers who meet the criteria for a USDA loan may be able to secure a great deal right now.
To find out whether you qualify for one and what your rate is, consult with a trusted lender below.
Time to make a move? Let us find the right mortgage for you
1 Source: USDAloans.com, based on Housing Assistance Council data
Source: themortgagereports.com