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Compliance, CRM, LOS, Servicing, Workflow, Internal Audit Products; Non-QM and Jumbo News

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Compliance, CRM, LOS, Servicing, Workflow, Internal Audit Products; Non-QM and Jumbo News

By:
Rob Chrisman

Tue, Dec 5 2023, 11:33 AM

My cat Myrtle doesn’t have a lot of rizz, and there are those that will argue that no cat has any charisma whatsoever. But plenty of marketing people do, or can create it, and even if you’re not in marketing, there are some clever marketing people out there. Creative minds as well, and if you’re looking for a Christmas present, here are the “best inventions of 2023” per Time Magazine. There is also cleverness and creativeness in the modular home manufacturing industry, probably far outpacing the ability of state and local government to issue permits. Meanwhile, lenders are facing a winter trying to figure out if they are in the “Survive until ‘25” camp or the “Grow more in ‘24” mindset? The credit industry is reeling as lenders grapple with soft versus hard pulls, renegotiating pricing, and bundled deals. And for some reason LO comp continues to be unsettled: dual comp, MLOs as real estate agents, transferring pipeline data when changing jobs, different fee structures within the same state, and so on. (Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Hear an interview with Mayer Brown LLP’s Holly Spencer Bunting on RESPA happenings and how the industry can get to better regulation.)

Lender and Broker Products, and Services

Out with the old; in with the new! One of the things we most look forward to in December (besides the holidays, of course!) is the opportunity to envision and plan for a great future. We’ve curated a killer panel of industry execs who will share best practices and their favorite secrets to help you usher in 2024 at the highest possible note. TrustEngine’s Dave Savage hosts Dustin Owen of Waterstone Mortgage and Brian Covey of Revolution Mortgage in “Chaos to Clarity”, a sure-to-be deliciously juicy webinar that will inspire and energize you to end 2023 with a bang and move powerfully into the new year. Register now to save your seat!

What’s an internal audit anyway and do you need one? An internal audit acts as a third line of defense for your mortgage operation. It provides comprehensive assurance based on the highest level of independence and objectivity to evaluate the effectiveness of management’s internal controls. This function should advise your mortgage operation on plans to achieve the company’s strategic, operational, financial and compliance goals. An effective internal audit should go far beyond just checking a compliance box; it should be an integral part of protecting your company. If you want to ensure you’re adhering to regulatory requirements and demonstrating good faith business practices, a Richey May internal audit is a good fit. If you’re looking to be Fannie Mae approved in the future or want to maintain your approved status, it’s required. If you’re unsure whether you need an internal audit, ask one of Richey May’s experts today or learn more here.

“Is it a challenge getting what was promised out of your current subservicer? New regulations are always moving the compliance goal posts and your customers are craving the newest technology and high-quality customer experience to meet their needs. After all, aren’t those the reasons you contracted with them? Perhaps it’s time for a change. Come meet Servbank at the MBA Servicing Solutions 2023 and let us show you how our cutting-edge, fully transparent and award-winning servicing platform (SIME), combined with our family of caring Customer Care reps, will protect your company from regulatory misses and keep your customers loyal by delivering a superior experience every time. If your current subservicer promised to make life easier for you, but continues to miss the mark, now is the time to partner with Servbank, the nation’s only fintech bank subservicer, who can meet your unique needs. Stop by booth #601, or schedule a meeting with Servbank.”

Right in time for the holidays, Floify has launched Floify Broker Edition, a one-stop lending platform that makes it easy for brokers to manage loans in one place. Wrapped in Floify’s famously sleek interface, Floify Broker Edition is packed with magical features that save precious time and money, such as automated mortgage call reporting, dual AUS functionality, and PPE and wholesaler integrations. Just like Santa’s elves, automated workflows advance loans behind the scenes so brokers can spend more time spreading the joy of homeownership and less time pushing paper. Treat yourself (and your borrowers!) this holiday season with a lending platform that’s a joy to use. Experience the magic of Floify Broker Edition firsthand and book a demo today.

Take advantage of more opportunities by adjusting your business to match the market. Recently, lenders who could quickly scale their home equity products were able to capitalize on the increased demand. Are you maximizing home equity lending in your system of record? Encompass® by ICE Mortgage Technology® is the only solution on the market that can be easily configured without any development efforts to support a user’s unique products and workflows for each of their channels, including retail, consumer direct, HELOC, wholesale and correspondent. This means you can quickly react to market changes and manage your business in your own way. Click here to read our recent blog that shares strategies to maximize your home equity lending business and how Encompass makes it easy.

A borrower’s servicing experience is only as good as the back-office environment that supports it, which is only as good as the technology that powers it. That’s why ICE is actively moving servicing forward through digitizing the consumer experience and streamlining back-office operations. The mortgage technology experts at ICE understand that effective servicing solutions are built from the “outside in”, designing with the customer in mind and working until the same level of convenience is brought to those working behind the scenes. Read the new blog from Sandra Madigan, Chief Digital Officer at ICE Mortgage Technology, to see how ICE is engineering with empathy, and helping people achieve and maintain the dream of homeownership.

In Naples, people hurl plates, appliances and even furniture out of their windows on New Year’s Eve to symbolize making room for the new. If your LOS has been causing you strife, take a cue from the Neapolitans and chuck it out the window. Dark Matter Technologies is here to help you usher in a more prosperous 2024 with its Empower LOS. A fully cloud-based system, Empower brings your tech ecosystem together in one place and intelligently orchestrates delightful borrower experiences and efficient loan production. Schedule a demo with the Dark Matter team to learn how Empower can elevate your business in the year ahead.

Two things come to mind when looking for strategies to help LOs today. First, understand home buyers in the context of uncertainty in the market today. Get back to basics of why homeownership still makes sense: pride of ownership, building equity for the future, and a better environment for their family to live and grow. Next, be able to articulate good solid strategies to make home buying more affordable, both down payment strategies and ARMs to lower payments. It’s also important to understand buyer’s bias against ARMs and counter with common sense arguments. Usherpa, the #1 ranked mortgage CRM in customer satisfaction and loyalty, is offering these FREE printable handouts with informational scripts to use when talking with your homebuyers and valuable resources you can easily send them about ARMs.

ActiveComply is thrilled to introduce a brand-new product, WebCompass™, to discover and manage your websites for branding, compliance, and accessibility. The same power as SocialShield™ for Social Media but now for website and brand compliance. With WebCompass™ you can discover and monitor company and employee websites & web pages, protect your brand with website content scans and compliance tracking, uncover rogue or unauthorized websites, and streamline reporting demands during regulatory examinations. Sign up today for a demo and the first 25 customers will receive a discount. ActiveComply cloud-based solutions help highly regulated industries confidently manage their social media and website compliance and virtual inspections.

Non-QM, DSCR, Jumbo Broker and Correspondent Program News

Can we continue our same ad please: Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.5 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.

PRMG offers several Non-QM resources such as product matrices, job aids, trainings, calculators, worksheets, and other information to assist with using Non-QM loan products. Access the TPO Non-QM Resources page for detailed information.

Angel Oak Mortgage Solutions announced the release of its Blended Rate Calculator, providing borrowers with a quick and straightforward tool to estimate potential loan scenarios.

In tandem with its Angel Oak Mortgage Closed End Second Loans program, the Blended rate calculator helps you show borrowers what their 1st and 2nd payments, as well as LTV and blended rates, will be for both mortgages. This tool enables borrowers to easily assess how they can tap into their home’s equity while retaining their first mortgage.

PHH Mortgage announced new products for Non-Agency offering as of November 28th. Go to the company library to view the information.

A Jumbo option designed to empower homebuyers in high-value markets to secure their dream homes. Explore the advantages of Plaza’s new Jumbo Champion loan program, featuring top-notch pricing, loan amounts up to $3 million, and eligibility for FICO scores starting from 720.

LendSure Mortgage Corp., a Non-QM wholesale lender, announced the launch of its new Profit & Loss (P&L) Loan Program offering “a simplified and user-friendly process for business owners seeking capital in a complex financial landscape.” LendSure’s P&L Loan Program is designed to cater to business owners and self-employed investors with fluctuating seasonal income or cash businesses. It eliminates the need for a self-employment questionnaire, simplifying and speeding up the application process and making it more convenient for borrowers to secure financing. “We aim to empower business owners, redefining industry standards and facilitating their path to financial success… The program offers two tiers of loan amounts, giving borrowers the choice to provide only P&L statements for loan amounts up to $1,000,000 or supply two months of bank statements with P&L statements for loan amounts up to $1,500,000. This flexibility enhances the broker-customer relationship by providing a straightforward, efficient solution for business owners. Reach out to LendSure for more information.

First time home buyer/ first time investors now have a chance to buy an investment property with no income. Hometown Equity Mortgage offers a Bridge for First time home buyers; up to 75 percent LTV on a purchase, no ratio DSCR product, NO VOR/VOM, allowed to live rent free. FICO down to 650, Flexible guidelines, 12-24 month I/O with no prepay or EPO.

HighTech Lending Wholesale is now offering Jumbo Reverse Mortgages the Platinum Reverse which comes in three variations: Maximum LTV Fixed Rate, Adjustable Rate with a Line of Credit, and Reduced LTV with a lower Fixed Rate. The minimum age for the Platinum is 55 in most states, but some require the borrower to be 60 or 62.

Capital Markets

First Community Mortgage has named Jeff Pancer to the new position of Executive Vice President, Capital Markets. Congratulations!

Markets finally paused recent optimism that has been riding on the assumption that the Fed will lower interest rates in 2024. Until yesterday, that optimism had fueled rallies in both stocks and bonds over the past few weeks, with investors continuing to overlook Fed rhetoric and bet on deep interest rate cuts next year. Fed Chair Powell on Friday reiterated that it is too early to consider cutting rates, and that the Federal Open Market Committee plans to keep policy restrictive for some time. Despite his stance, markets are still at odds with the Fed, pricing in the first rate cut as early as March and 125 basis points of rate cuts in total for 2024. Remember, sticky inflation can prevent the Fed from cutting.

The Fed is widely expected to leave rates unchanged for the third consecutive FOMC meeting next week, in what would be no change for the fourth out of the past five meetings. However, the post-meeting statement will likely continue to indicate that additional tightening is possible. The fear is that the Fed declaring victory too early while the economy is growing, and the labor market is tight is a risk if inflation spikes back up. The Fed has entered its blackout period ahead of the meeting, so we won’t get any more chatter from FOMC members until after the meeting. Additionally, there will be no Treasury note or bond auctions this week. This week will be dominated by the jobs report on Friday where expectations are for an improvement from October’s report: an increase of 180,000 jobs in November and no change in unemployment.

Today’s economic calendar has a lot of non-market moving releases: Redbook same store sales for the week ending December 2, final November S&P Global services PMI, expected to decline slightly, ISM non-manufacturing PMI for November, expected to tick up, and JOLTS job opening for October, supposedly sliding to 9.35 million from 9.55 million in September. We begin the day with Agency MBS prices better by .125-.250, the 10-year yielding 4.23 after closing yesterday at 4.29 percent, and the 2-year yield down to 4.52 as investors continue to believe, perhaps mistakenly, that the Fed is not only done raising rates but will come around to cutting them.

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Source: mortgagenewsdaily.com

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Lately, some mortgage lenders have pitched “buy now, refinance for free” offers to get more home buyers to take the plunge.

The thinking is mortgage rates will be lower in the near future. And when that time comes, you won’t have to pay any lender fees.

This can even sway the decision to buy a home, assuming you’re on the fence about renting vs. buying because it feels too expensive today.

These offers sound like a win-win for the home buyer, as they’ll get a lower interest rate and avoid potentially thousands in closing costs.

But there are quite a few issues with this line of thinking that are worth discussing.

Nobody Knows If Mortgage Rates Will Rise or Fall

Last I checked, mortgage rate predictions have been a tough game. Prior to early 2022, mortgage rates defied the forecasts.

While most expected them to rise, they hit fresh all-time lows and stayed at those levels for much longer than expected.

Then the Fed announced an end to it Quantitative Easing (QE) program and the start of Quantitative Tightening (QT), which sent shockwaves through the mortgage market.

Accompanied by 11 Fed rate hikes, the 30-year fixed surged from around 3% in January 2022 to as high as 8% in October 2023.

Once again, no one expected this, and most predictions called for improvements in 2023 after a rough 2022.

Instead, mortgage rates climbed even higher, leading to the lowest mortgage demand in decades.

People stopped buying homes and virtually nobody refinanced their mortgage. Even worse, existing owners won’t sell because they don’t want to lose their ultra-low interest rate.

This so-called mortgage rate lock-in effect has stifled inventory, which was already low to begin with.

It also partially explains why home prices remain so high, in spite of much more expensive mortgage rates. There’s no supply.

To entice buyers, some real estate agents and mortgage lenders have pitched the phrase, marry the house, date the rate.

The logic is you can still buy your forever home today, while mortgage rates are high. But refinance that pesky high mortgage rate once they fall again.

Problem is they haven’t fallen. And those predictions didn’t pan out. At least not yet.

Speaking of, take a look at the 2024 mortgage rate predictions if you think they’ll be of any use.

Mortgage Rates Are About 1% Below Their Recent Peak

Over the past month and change, the 30-year fixed has come down about one percentage point.

It surpassed 8% in mid-October before falling precipitously, thanks to favorable economic data.

Several reports hinted at possible weakness in the economy, pushing bond yields down from their recent highs while mortgage rates followed.

At the same time, the Fed is expected to cut rates several times in 2024 as the economy cools.

The thought is inflation has peaked, and restrictive monetary policy can ease somewhat.

This is all good news for mortgage rates, which tend to fall when inflation is low, or when the economy is showing signs of weakness.

But there’s still no guarantee mortgage rates will come down. Nor is there a guarantee they’ll fall by an amount necessary to make a refinance worthwhile.

I don’t subscribe to a refinance rule of thumb, but generally you’d want an interest rate at least 1% below your current rate for it to be worth it.

Once you factor in the closing costs, you’ll need to realize some decent monthly payment savings to make it worthwhile. And to break even on those upfront costs.

These Refinance for Free Later Deals Have Some Issues

  • Will mortgage rates fall enough in the future to make the refinance work?
  • Will this lender still be in business and agree to the terms of the deal?
  • Will anything change that limits your ability to refinance (credit score, property value, etc.)
  • What if a different lender has a lower rate in the future?
  • Could this type of offer pressure you into buying a home today if you’re unsure or not ready?

To make a refinance more compelling, or at least easier to pencil, some mortgage lenders are offering a free one in the future if you use them for a home purchase loan.

It seems like a no-brainer. Why not take them up on the deal, right? Well, there are myriad issues with these types of offers.

For one, you have to use the same lender twice. And you have to use the lender offering the free refinance deal to begin with.

So their “refinance for free” deal might stop you from shopping your rate with other banks, lenders, brokers, etc.

The next problem is this lender might not even be in business once it comes time to refinance. Trust me, many lenders have closed their doors as business has dried up.

And if you do use them again in the future, you’ll need to hope they have the lowest rate compared to other lenders. What are the chances of that?

Then there is the pesky issue of mortgage rates. Remember, nobody is very good at predicting them.

Sure, they could drop. But they might not. Or they may not fall enough to make the refinance worthwhile.

At the same time, you’ll need to qualify for the refinance. What if home prices fall between now and then, and you’ve got negative equity to deal with?

Or something else comes up that limits your ability to refinance? Perhaps a lower FICO score, a gap in employment, etc.

Ultimately, you’re probably better off going with the lowest combination of rate and fees you come across today.

And if and when the time comes to refinance in the future, do the same exact thing. Look for the best deal in front of you.

There are simply too many variables and unknowns to bank on a free refinance in the future.

Source: thetruthaboutmortgage.com

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The now defunct First Guaranty Mortgage Corporation (FGMC) and former employees – who sued the mortgage lender in a class-action suit after an abrupt layoff – are seeking a Delaware bankruptcy judge to settle a Worker Adjustment Retraining Notification (WARN) Act lawsuit for $1.75 million.

In June 2022, laid off employees filed two separate district court actions alleging WARN Act violations related to their abrupt employment terminations. The WARN actions were merged into a single case a day after FGMC laid off about 80% of its workforce in a virtual meeting in June 2022. Less than a week after the staff reduction, the lender and its affiliate Maverick II Holdings filed for Chapter 11 bankruptcy protection.

The class-action suit, representing more than 400 staff members, sought damages accounting for 60 days’ pay and employee retirement income security benefits of more than $4 million.

FGMC denied violating the WARN Act and claimed various and affirmative defenses to the WARN action. These included “unforeseeable business circumstances” and “faltering company” statutory reductions to the WARN Act’s 60 day notice requirement.

After more than a year since the suit was filed, FGMC and the ex-employees are now seeking the green light from the Delaware Bankruptcy Court for a settlement of $1.75 million in relief for all class members, according to a joint motion filed Nov. 20.

The administrator of the class counsel’s choice will distribute the settlement amount to the class members. Class representatives will receive a one-time combined total payment of $27,000 for their service on behalf of the class members.

In exchange, former employees will agree to release all WARN Act claims following the court’s approval – resolving the suit against FGMC. 

“Continued litigation will be complicated, protracted and expensive,” according to the joint motion. 

“The proposed settlement amount is $1.75 million, which is at the upper end of the WARN reserve under the [$2.5 million claims] plan. If the plaintiffs were not to succeed, they’d lose the benefit of the settlement agreement and access to the WARN Reserve.” 

Attorneys for FGMC and former employees representing the class didn’t respond to comment.

Source: housingwire.com

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Many people want to buy a home but think it isn’t possible because they don’t have money to put toward a down payment. Traditionally, lenders require a 20% down payment toward your mortgage.

But a 20% down payment adds up to a lot of money. For example, if you plan to purchase a $150,000 home, you’d need to come up with a $30,000 down payment. Many people cannot afford this, but fortunately, the 20% rule is a lot less common than you might think.

Is a buying a house with no money down possible?

The National Association of Realtors (NAR) reports that 39% of non-owners believe they need a 20% down payment or more and 22% believe they need a 10% to 14% down payment.

But neither of these are true. Many mortgage lenders will let you buy a home by putting down as little as 3%. And some lenders will let you skip the down payment altogether.

NAR also found that 61% of first-time homebuyers made a down payment between zero and 6%. So, it’s safe to say that a 20% down payment isn’t the standard anymore. But unfortunately, many consumers choose not to pursue homeownership because they believe this down payment myth.

Weighing the Pros and Cons of No Down Payment Mortgages

Is there any reason to aim for 20% down when most home buyers buy with a down payment less than 20%? If you can afford it, yes, the 20% rule is still a wise choice.

The more money you put toward your mortgage, the less debt you’ll have to repay and the less your monthly payment will be. Plus, there are several drawbacks to putting down less than 20%:

  • Less favorable rates: If you pay less than 20%, lenders will probably see you as a risky investment. And they will take this into consideration when calculating your mortgage rates. In general, you can expect to pay a higher interest rate if you put down a smaller down payment.
  • Higher closing costs: Closing costs are based on the size of your mortgage. So, the smaller your down payment is, the higher your closing costs will be. However, you may be able to get around this if you live in a state where it’s typical for the seller to pay the closing costs.
  • Private mortgage insurance (PMI): Private mortgage insurance is a type of mortgage insurance designed for borrowers who make a down payment lower than 20%. It protects your mortgage lender in case you end up defaulting on your loan.

PMI can cost as much as 1% of your total monthly mortgage payment. So for a $150,000 mortgage, you’ll end up paying $150 per month.

However, this may not be that bad, especially if you have a less expensive mortgage. And once you reach 20% home equity, you can cancel your PMI and get rid of these extra payments.

Check Out Our Top Picks for 2023:

Best Mortgage Lenders

How to Buy a House With No Money Down

Fortunately, there are several lending programs that do not require a down payment. Here are five payment assistance programs that will help you buy a home with little to no down payment.

1. VA Loans

VA loans are a valuable option for eligible military veterans, active-duty service members, and certain surviving spouses. These government-backed loans offer several benefits, making homeownership more accessible and affordable through the use of a VA loan.

100% Financing and No Down Payment

One of the most significant advantages of VA loans is the 100% financing, meaning you won’t need to make a down payment when utilizing a VA loan. This can save borrowers a substantial amount of money upfront, making it easier to enter the housing market.

No Private Mortgage Insurance (PMI) Requirement

Unlike conventional loans that require PMI for down payments less than 20%, VA loans do not require PMI. This can save borrowers hundreds or even thousands of dollars per year in mortgage insurance premiums when using a VA loan.

VA Funding Fee

While VA loans offer numerous benefits, there is a one-time funding fee charged to help offset the costs of the program. The funding fee is 2.15% of the total loan amount for first-time users of VA loans and 3.3% for subsequent uses.

This fee can be financed into the VA loan, reducing the out-of-pocket expenses for the borrower. In some cases, borrowers may be exempt from the funding fee, such as those with service-connected disabilities.

Certificate of Eligibility

To apply for a VA loan, borrowers need to obtain a Certificate of Eligibility (COE) from the Department of Veterans Affairs. The COE verifies the borrower’s eligibility for the VA loan program based on their military service or, in some cases, the service of their spouse. The COE can be requested online through the Department of Veterans Affairs website, by mail, or through an approved lender.

Additional Benefits

VA loans also offer competitive interest rates, more lenient credit requirements, and flexible underwriting guidelines compared to conventional loans. Additionally, there are no prepayment penalties, allowing borrowers to pay off their VA loans early without incurring additional fees.

2. Navy Federal Credit Union

Navy Federal Credit Union’s loan program is similar to what the VA offers. It offers a zero down mortgage and no mortgage insurance. And Navy Federal’s funding fee is only 1.75%.

Navy Federal offers a 30-year loan and a 30-year jumbo loan. 30-year loans have a loan limit of $424,100 while jumbo loans are available up to $1 million. However, you will have to be a Navy Federal member to qualify.

3. USDA Loans

If you’re looking to move to a rural area, you might qualify for a USDA loan. The United States Department of Agriculture Housing Program was designed to aid rural development and is aimed at low-income families. USDA loans offer 100% financing with low interest rates.

Here are the eligibility requirements you must meet to qualify for a USDA loan:

  • When buying a home it must be within the USDA’s boundaries: Although this loan targets rural areas, some suburban areas may still qualify. You can look at this map on the U.S. Department of Agriculture’s website to see if your location falls within the USDA’s geographical boundaries.
  • Your household income can’t exceed a certain threshold: This applies to everyone living in the household, even if they won’t be listed on the mortgage. For instance, if you have a parent living with you who collects Social Security, this counts toward the gross income of all members of a household. The maximum household income varies by state and county so you can find out if you qualify here.

See also: Best Home Loans for Low-Income Borrowers

4. Lease-Option

A lease-option (also known as rent-to-own) allows you to rent a home with the option to buy it at a predetermined price after a certain period. A portion of your monthly rent may be applied toward the purchase price or down payment. This can be a solid option if you need more time to save for a down payment or improve your credit.

5. Seller Financing

In some cases, the seller may be willing to finance the property for you, allowing you to purchase the home without a traditional mortgage. This arrangement typically requires a contract outlining the terms of the loan, including the interest rate, payment schedule, and any potential penalties.

Seller financing can be a viable option if you have a strong relationship with the seller or if the seller is having difficulty selling the property.

6. Crowdfunding

Crowdfunding is a method where you raise money from multiple individuals, typically through online platforms. You can set up a campaign to raise funds for your down payment or even the entire purchase price. This method may work best if you have a strong network of friends, family, and supporters who are willing to contribute to your home-buying goal.

7. Shared Equity Agreements

Shared equity agreements involve partnering with an investor who provides a portion or all of the down payment in exchange for a percentage of ownership in the property. When the property is sold or refinanced, the investor receives a return on their investment based on the agreed-upon share of equity. This can be an attractive option if you can’t afford a down payment but are willing to share future appreciation in the home’s value.

8. Housing Assistance Programs

There are numerous local, state, and federal housing assistance programs that offer grants, low-interest loans, or other forms of financial support to help eligible individuals purchase a home with no money down. These programs often have specific requirements, such as income limits, property location, or first-time homebuyer status. Be sure to research and apply for any programs for which you might be eligible.

Low Down Payment Loans

If you’re unable to buy a house with no money down but can afford a small down payment, consider these low down payment options that can help make homeownership more accessible.

1. 97% LTV mortgages

97% LTV mortgages is a loan program that is offered to first-time homebuyers by Fannie Mae and Freddie Mac. They require a 3% minimum down payment and private mortgage insurance.

Here are the guidelines for the program:

  • You’ll need a credit score of at least 680
  • One of the borrowers must be a first-time homeowner
  • Manufactured housing isn’t permitted
  • Gifts, grants, and other funds may be used toward the down payment

2. Federal Housing Administration (FHA) Loans

The Federal Housing Administration (FHA) was established in 1934 to reduce the requirements to qualify for a mortgage. This government-backed mortgage program offers flexible requirements, making it an attractive option for first-time homebuyers.

Here are the guidelines you’ll need to meet to qualify for an FHA loan:

Credit Score Requirements

The minimum credit score required to qualify for an FHA loan is 500. The specific down payment requirements depend on your credit score:

  • If your credit score is between 500 and 579, you’ll need to make a 10% down payment.
  • If your credit score is 580 or higher, you’ll have to make a 3.5% down payment.

Seller Contributions

FHA loans allow sellers to contribute up to 6% of the closing costs. This can help reduce the upfront costs for the buyer and make it easier to afford the purchase.

Mortgage Insurance Requirements

Mortgage insurance is required for an FHA loan, protecting the lender in case the borrower defaults on the loan. However, once you build 20% equity in the home, you can refinance to a conventional loan to eliminate the mortgage insurance requirement.

Debt-to-Income Ratios

FHA loans accept high debt-to-income (DTI) ratios, allowing borrowers with significant existing debt to still qualify for a mortgage. The FHA typically requires a maximum DTI of 43%, but exceptions can be made for borrowers with compensating factors, such as substantial savings or a history of making large payments on time.

3. HomeReady Mortgage

The HomeReady mortgage is a Fannie Mae program designed for low-to-moderate-income borrowers. It requires a down payment as low as 3% and offers flexible underwriting guidelines, making it an attractive option for first-time homebuyers or those with limited credit history.

4. Home Possible Mortgage

Similar to the HomeReady mortgage, the Home Possible mortgage is a Freddie Mac program that allows for a down payment as low as 3%. It is designed to help low-to-moderate-income borrowers achieve homeownership and offers flexible underwriting guidelines.

5. State and Local Homebuyer Assistance Programs

Many state and local governments offer homebuyer and down payment assistance programs that provide grants or low-interest loans to help cover down payment and closing costs. These programs typically have income and property location requirements, so be sure to research and apply for any programs for which you might be eligible in your area.

Each of these low down payment mortgage options has its own set of eligibility requirements and potential benefits. Be sure to research and compare these options to determine which one best aligns with your financial situation and home-buying goals.

Preparing for Homeownership

Before jumping into the home buying process, it’s essential to prepare yourself financially and mentally. This section covers tips for improving credit scores, creating a budget, and managing debt to make the home buying process smoother.

Credit Score Improvement Tips

Improving your credit score involves checking your credit report for errors and disputing any inaccuracies. Ensure that you pay your bills on time and reduce outstanding debt as much as possible. Keep credit card balances low, avoid opening new credit accounts, and consider requesting a credit limit increase without increasing your spending.

Creating a Budget

Creating a budget requires tracking your income and expenses to understand your spending habits better. Categorize your expenses and set realistic limits for each category. Allocate funds for saving and investing, including a down payment and emergency fund, and regularly review and adjust your budget as needed.

Managing Debt

Managing your debt effectively involves prioritizing high-interest debt and paying more than the minimum payment. Consider debt consolidation or refinancing options to secure a lower interest rate. Avoid taking on new debt before applying for a mortgage and create a debt repayment plan that you can stick to.

Understanding the Total Cost of Homeownership

Understanding the total cost of homeownership means factoring in property taxes, insurance, maintenance, and utility costs. Estimate homeowners association (HOA) fees if applicable and consider the costs of furnishing and updating the home. Prepare for potential increases in expenses over time, such as property tax hikes.

How to Choose the Right Mortgage Option

With various mortgage options available, it’s crucial to select the one that suits your financial needs and long-term goals. This section discusses factors to consider when choosing a mortgage, such as loan term, interest rates, and mortgage insurance.

Fixed-Rate vs. Adjustable-Rate Mortgages

Fixed-rate mortgages have a consistent interest rate for the loan’s duration, providing stability and predictable monthly payments. In contrast, adjustable-rate mortgages (ARMs) have an initial fixed-rate period followed by periodic rate adjustments, which may result in lower initial payments but potential rate increases over time.

Mortgage Term: 15-Year vs. 30-Year

The mortgage term plays a crucial role in determining the overall cost of your mortgage. 15-year mortgages typically have lower interest rates and allow for faster equity buildup, but require higher monthly payments. 30-year mortgages offer lower monthly payments, but result in more interest paid over the loan’s lifetime.

Mortgage Insurance Considerations

PMI may be required for conventional loans with less than a 20% down payment. Loans backed by the federal government, such as FHA, VA, or USDA loans, may have different insurance requirements or fees.

Assessing Your Long-Term Goals

When choosing a mortgage option, consider how long you plan to live in the home and whether your financial situation or housing needs may change. Evaluate the potential for home value appreciation and the impact on your future financial goals.

Planning Your Next Steps

Assess Your Financial Situation

The amount of money you choose to put toward a down payment is a personal choice. If you feel ready for homeownership but know that a 20% down payment isn’t feasible for you, there are many options available to help you.

The best place to start is by looking at your monthly budget and seeing what you can realistically afford. Use a mortgage calculator to reverse engineer your goal and find your ideal home purchase. Consider factors like property taxes, insurance, and maintenance costs, as well as any debts you currently have.

Get Pre-Approved

Get pre-approved for a mortgage before you start house hunting. This will give you an idea of how much you can afford, and it will show sellers and real estate agents that you’re a serious buyer.

To get pre-approved, you’ll need to provide your lender with documentation such as pay stubs, bank statements, and tax returns. They’ll then assess your credit score and financial history to determine how much they’re willing to lend you.

Shop Around for the Best Mortgage

Shop around for the best mortgage rates and terms. Don’t just settle for the first lender you come across. Compare different lenders and loan programs to find the best fit for your financial situation. Look for competitive interest rates, low fees, and flexible repayment terms.

Work with a Knowledgeable Real Estate Agent

A good real estate agent can help you find a home that fits your needs and budget. They’ll also guide you through the home buying process, making it less stressful and ensuring you don’t make any costly mistakes.

Attend First-Time Homebuyer Classes

Consider attending first-time homebuyer classes or workshops. Many local organizations and government agencies offer educational resources for first-time homebuyers. These classes can help you understand the ins and outs of the home buying process and give you the knowledge you need to make informed decisions.

Save for Unexpected Expenses

Even if you’re able to buy a home with no money down, it’s a good idea to have some savings set aside for unexpected expenses. These might include moving costs, home repairs, or furnishing your new home.

Build an Emergency Fund

In addition to saving for unexpected expenses, it’s also important to have an emergency fund in place. This should be enough to cover three to six months’ worth of living expenses in case you lose your job or face another financial emergency.

Be Patient and Stay Disciplined

Home buying is a complex process, and it can take time to find the right home and secure financing. Stay focused on your goals, be disciplined with your spending, and remember that homeownership is a long-term investment.

Conclusion

Buying a home with no money down is possible, but it may not be the best choice for everyone. Consider your financial situation, your long-term goals, and the various mortgage options available to you before deciding on a zero down payment mortgage. With careful planning and preparation, you can make your dream of homeownership a reality, even if you don’t have a large down payment saved up.

Source: crediful.com

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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

The statute of limitations on debt typically ranges 3 – 6 years, depending on the debt type and the state you live in.

Is there a statute of limitations on debt? It depends on the type of debt and which state’s law governs it. Find out more about the statute of limitations on suing to collect a debt by state below.

Table of contents:

What is a statute of limitations on debt?

A statute of limitations on debt limits how long creditors or collection agencies can only take legal action against you to collect a debt. The length of that period depends on the statute of limitations in the state where the debt originated.

Statutes of limitations are laws that govern the deadlines for certain legal actions. But don’t be mistaken—you aren’t off the hook for a debt just because the statute of limitations has passed. The debt might still show up on your credit report, and if you don’t pay it, you could face trouble getting future credit, especially a mortgage.

The statute of limitations does prevent you from being successfully sued for time-barred debts. That means the creditor won’t be able to get a judgment against you that allows them to garnish wages or levy your accounts.

The four types of debt

The type of debt you are dealing with determines which statute of limitations might be relevant. Read on to learn about the four different types of debt.

Oral agreements

​​Oral agreements occur when you borrow money from someone and agree to pay it back according to specific terms, but the agreement isn’t in writing.

This is the proverbial handshake agreement, and it’s not extremely common between traditional lending organizations and borrowers today. This is mainly because they’re difficult to prove. Oral contracts are more likely to exist between family members or friends.

Written contracts

Written contracts record the details of a lending agreement, including the borrow amount and date, the purpose of the loan, interest amount, when and how to make payments and other terms. Both parties involved in the contract—the borrower and the lender—sign the document to validate it.

Written contracts are easier to prove than oral contracts. Vehicle loans are written contracts. Medical debt or payments for services you agreed to in writing are also written contracts.

Promissory notes

Promissory notes are similar to written contracts but with less detail. In addition, they only need to be signed by the borrower to be enforceable. You generally sign a promissory note when you take out a mortgage or student loan.

Open-ended accounts

Typically, these are revolving accounts such as credit cards or lines of credit. Open-ended accounts remain open for an undetermined length of time as long as you are making regular and agreed-upon payments. You can also carry a balance on these accounts as long as you make regular minimum payments.

Statutes of limitations by state

This guide to statutes of limitations on debt collection by state is for informational purposes only. Debt laws change from time to time, and you should always check with a legal professional or your state Attorney General’s office for current information.

State Oral Agreements Written Contracts Promissory Notes Open-Ended Accounts
Alabama 6 years 6 years 6 years 3 years
Alaska 3 years 3 years 3 years 3 years
Arizona 3 years 6 years 6 years 6 years
Arkansas 3 years 5 years 5 years 5 years
California 2 years 4 years 4 years 4 years
Colorado 6 years 6 years 6 years 6 years
Connecticut 3 years 6 years 6 years 6 years
Delaware 3 years 3 years 3 years 3 years
Florida 4 years 5 years 5 years 5 years
Georgia 4 years 6 years 6 years 6 years
Hawaii 6 years 6 years 6 years 6 years
Idaho 4 years 5 years 5 years 4 years
Illinois 5 years 10 years 10 years 5 years
Indiana 6 years 6 years 10 years 6 years
Iowa 5 years 10 years 10 years 5 years
Kansas 3 years 5 years 5 years 5 years
Kentucky 5 years 10 years 15 years 10 years
Louisiana 10 years 10 years 10 years 3 years
Maine 6 years 6 years 20 years 6 years
Maryland 3 years 3 years 6 years 3 years
Massachusetts 6 years 6 years 6 years 6 years
Michigan 6 years 6 years 6 years 6 years
Minnesota 6 years 6 years 6 years 6 years
Mississippi 3 years 3 years 3 years 3 years
Missouri 5 years 10 years 10 years 5 years
Montana 5 years 8 years 5 years 5 years
Nebraska 4 years 5 years 5 years 4 years
Nevada 4 years 6 years 3 years 4 years
New Hampshire 3 years 3 years 6 years 3 years
New Jersey 6 years 6 years 6 years 6 years
New Mexico 4 years 6 years 6 years 4 years
New York 6 years 6 years 6 years 6 years
North Carolina 3 years 3 years 3 years 3 years
North Dakota 6 years 6 years 6 years 6 years
Ohio 6 years 6 years 6 years 6 years
Oklahoma 3 years 5 years 6 years 3 years
Oregon 6 years 6 years 6 years 6 years
Pennsylvania 4 years 4 years 4 years 4 years
Rhode Island 10 years 10 years 10 years 10 years
South Carolina 3 years 3 years 3 years 3 years
South Dakota 6 years 6 years 6 years 6 years
Tennessee 6 years 6 years 6 years 6 years
Texas 4 years 4 years 4 years 4 years
Utah 4 years 6 years 6 years 4 years
Vermont 6 years 6 years 6 years 6 years
Virginia 3 years 5 years 6 years 3 years
Washington 3 years 6 years 6 years 6 years
West Virginia 5 years 10 years 6 years 5 years
Wisconsin 6 years 6 years 10 years 6 years
Wyoming 8 years 10 years 10 years 8 years

Source: The Balance

When does the statute of limitations clock start?

According to the Federal Trade Commission, the statute of limitations clock starts when you fail to make an agreed-upon payment. However, you can reset the statute of limitations clock in some cases by making a payment on the debt or agreeing to make such payments in response to a debt collector contacting you.

Before you make any promises or make a payment on old debt, ensure you understand your rights under the Fair Debt Collection Practices Act and the statute of limitations on your debt.

Delinquent debt and your credit report

In most cases, negative items such as delinquent accounts or unpaid collections will fall off your credit report after seven years. That’s seven years from the date that the account first became delinquent.

As you can see from the table above, many states’ statutes of limitations are below seven years. That means that your credit could reflect an account that is past the date for legal collection methods. If you legitimately owe the debt in question, your choices include:

  • Pay the debt off to have it show up as paid—which can be better in the eyes of potential creditors;
  • Try to negotiate with the creditor, potentially for a pay for delete or a settlement that lets you pay less than you owe to have the account marked paid in full; or
  • Wait for the item to fall off your credit report.

FAQ

Below are a few common questions about the statute of limitations on debt.

What can restart the debt statute of limitations clock?

Making a payment on a debt in some states will restart the statute of limitations clock. In addition, promising to pay a debt also revives the old debt, and a new statute of limitations will begin.

Why are there statutes of limitations on debt?

Statutes of limitations set a time limit for when debt collectors and creditors can take legal action against a borrower who defaulted on their debt. After the statute of limitations time limit has expired, creditors and debt collectors can no longer file a lawsuit to collect on the debt. These limitations help protect borrowers from being liable for old debts.

What happens after 10 years of not paying debt?

Typically, after 10 years of not paying debt, the statute of limitations will have passed. This means that while you technically still owe the debt, debt collectors may try to collect it, but they typically cannot pursue legal action against you.

The statute of limitations varies by state, so be sure to reference your state’s specific statute of limitations to determine what legal action a creditor can take against you.

Talk to a professional if you have questions

If a collection agency contacts you about a debt after the statute of limitations has passed, they typically have no legal standing to sue to collect the debt. That doesn’t mean they may not try to collect, and if you’re dealing with an aggressive creditor or aren’t sure how the law impacts your debt, you may want to contact a professional. Additionally, if a collection agency is reporting very old debts to the credit bureaus, you might be able to dispute the information to improve your credit profile. Work with Lexington Law Firm to learn more about credit repair and how to ensure the accuracy of your credit report.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Reviewed By

Sarah Raja

Associate Attorney

Sarah Raja was born and raised in Phoenix, Arizona.

In 2010 she earned a bachelor’s degree in Psychology from Arizona State University. Sarah then clerked at personal injury firm while she studied for the Law School Admissions Test. In 2016, Sarah graduated from Arizona Summit Law School with a Juris Doctor degree. While in law school Sarah had a passion for mediation and participated in the school’s mediation clinic and mediated cases for the Phoenix Justice Courts. Prior to joining Lexington Law Firm, Sarah practiced in the areas of real property law, HOA law, family law, and disability law in the State of Arizona. In 2020, Sarah opened her own mediation firm with her business partner, where they specialize in assisting couples through divorce in a communicative and civilized manner. In her spare time, Sarah enjoys spending time with family and friends, practicing yoga, and traveling.

Source: lexingtonlaw.com

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The Offer

  • Citi Premier is offering 10x points on select travel bookings until June 30, 2024.
    • Hotels
    • Car rentals
    • Attractions

Our Verdict

Flights being excluded kills this deal for most people.

Hat tip to VFTW

Source: doctorofcredit.com

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Loan workouts carried out by the Hope Now alliance broke the one million mark, Treasury Secretary Henry Paulson said as part of his address to the National Association of Business Economists this morning.

The group, which includes companies like Countrywide Financial and Litton Loan Servicing, helped more than one million homeowners avoid foreclosure since July through loan modifications or repayment plans, including 638,000 subprime borrowers.

“According to today’s information, HOPE NOW’s progress is accelerating,” said Paulson, in a statement. “In January, there were 167,000 work-outs, up 11 percent from December.”

“Loan modifications alone increased 19 percent from December to January. By comparison, foreclosure starts increased just 5 percent during the same period.”

“I am encouraged that the number of borrowers receiving help is rising faster than the number entering foreclosure.”

Paulson also explained that through the implementation of the American Securitization Forum’s fast-track framework, Hope Now was able to focus on subprime borrowers, a group that represents a significant chunk of the foreclosure starts despite accounting for only a sliver of the total outstanding mortgages.

“While subprime mortgages make up only 13 percent of outstanding mortgages, about 50 percent of the foreclosure starts in the third quarter 2007 were subprime loans,” said Paulson.

“And more astonishing is the fact that, while subprime ARMs are only 6.5 percent of mortgages, they represent 40 percent of third-quarter 2007 foreclosure starts.”

Paulson added that Hope Now members modified 45,000 subprime loans, a 16 percent increase from December, and plans to streamline more borrowers so resources are available to tackle more dire situations.

“Before the creation of HOPE NOW, servicers were sending letters to delinquent borrowers and getting only a 2 to 3 percent response rate,” he said. “The alliance now sends out letters on HOPE NOW letterhead, and gets closer to a 20 percent response.”

“They’ve sent over 1 million letters to struggling borrowers who had previously avoided contact, and the higher response rate means almost 200,000 borrowers have reached out for help.”

Good news…

(photo: gemsling)

Source: thetruthaboutmortgage.com

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Instead of giving the typical toys, video games, and clothes this holiday season, have you considered giving shares of the companies that make the products?

While toys might break, and batteries can run out, stocks may help the gift receiver take a first step in getting their money right. Plus, you don’t have to brave the crowds during holiday shopping!

For 2023, the annual gift tax exclusion is $17,000 per person ($34,000 per married couple).

The Gift That Keeps on Giving

You can simply buy an actual stock certificate to gift it. Some financial institutions allow you to create a custodial account to transfer or buy stocks into. SoFi does not offer gifting of stock at this time.

Learn more about how to budget better this holiday season with SoFi’s Holiday Spending Guide.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

Source: sofi.com

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If making a move to or within Wisconsin is in your near future, there are some cities to consider at all price points. Here are the 10 cheapest places to live in Wisconsin.

Wisconsin average rent prices

While some cities throughout Wisconsin have experienced a significant increase in rent over the past year, fortunately, most cities have kept their rent increases below double-digit percentages and some rent prices reduced immensely. In fact, Wisconsin as a whole has seen a monthly rent decrease in the last year. Luckily, the average one-bedroom apartment is $1,151 — down 5.7 percent since last year.

The cheapest cities in Wisconsin for renters

Budget-conscious renters can expect to pay between $726 to $1,028 for a one-bedroom apartment in the top 10 cheapest cities in Wisconsin.

If living in one of the most hospitable Midwest states is on your agenda, here are the 10 cheapest cities to live in Wisconsin, based on current one-bedroom rent prices.

10. Waterford

Photo Source: Explore Waterford / Facebook
  • Average 1-BR rent price: $1,028
  • Average rent change in the past year: 0 percent

Situated between Milwaukee and Lake Geneva in the southeastern part of Wisconsin is Waterford, a city that includes 1,100 acres of navigable water to enjoy by canoe or kayak. The family-friendly community actively hosts farmer’s markets, golf outings, corn hole tournaments and more to residents.

If you want to live in a tight-knit and community-oriented city, complete with a downtown Heritage District, Waterford is worth exploring.

Find apartments to rent in Waterford
Buy a house in Waterford

9. Marshfield

Photo Source: Visit Marshfield / Facebook
  • Average 1-BR rent price: $975
  • Average rent change in the past year: 8.9 percent

For those who want a bit of a suburban feel but easy access to cities like Stevens Point, Marshfield provides residents with a great healthcare system through the Marshfield Clinic Health System, strong elementary and high schools and great “Main Street” shopping along Central Avenue, too.

The city even has its own free zoo — the Wildwood Park and Zoo.

Find apartments for rent in Marshfield
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8. Kronenwetter

Photo source: Village of Kronenwetter, WI / Facebook
  • Average 1-BR rent price: $971
  • Average rent change in the past year: N/A

Next on our list of the cheapest places to live in Wisconsin is one that’s really a village in Central Wisconsin called Kronenwetter. The town of Kronenwetter gets its name from Sebastian Kronenwetter — a state legislator and prominent pioneer resident of Marathon County.

Residents enjoy several parks and recreation centers throughout the area and the village serves two public school districts: one that serves students in the northern half of the village and one for the southern half.

The active village residents help plan events ranging from movies under the stars in nearby parks to farmers markets.

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7. Waukesha

Photo source: The City of Waukesha / Facebook
  • Average 1-BR rent price: $970
  • Average rent change in the past year: -2.5 percent

The city of Waukesha is a rich mix of neighborhoods, offering residents excellent schools, a variety of shopping choices, a diverse industrial base, an active arts community and beautiful parks and recreational amenities.

Just 18 miles west of Milwaukee, Waukesha has an urban suburb feel filled with young professionals and families attracted to the strong school system, parks and restaurants.

Find apartments for rent in Waukesha
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6. De Pere

Photo source: De Pere Parks, Rec & Forestry / Facebook
  • Average 1-BR rent price: $894
  • Average rent change in the past year: 9 percent

Whether you love to go on long walks or hikes, runs, cycling or in-line skating, there is a trail for you to enjoy in De Pere since it has three separate trail systems of almost eight miles to enjoy year-round.

Here, swimmers can enjoy either the VFW Aquatic Facility or Legion Pool. Additionally, in De Pere, art lovers will appreciate the rich public art throughout the city. Moreover, this suburb of Green Bay has its own unique homes and restaurants, schools and shops.

Find apartments for rent in De Pere
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5. Fond Du Lac

Photo source: Fond du Lac County Historical Society / Facebook
  • Average 1-BR rent price: $789
  • Average rent change in the past year: -1.4 percent

A family-friendly community with a strong sense of history, Fond du Lac residents enjoy several amenities including a public library and active sporting centers with year-round programming. With all that said, Fond du Lac is a perfect city to call home.

The Fond du Lac County Historical Society helps connect residents to the town’s local history and there are plenty of restaurants and bars for locals and visitors to enjoy.

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4. Hales Corner

Photo source: Hales Corners Recreation Department / Facebook
  • Average 1-BR rent price: $785
  • Average rent change in the past year: -7.70 percent

Located just over 10 miles from Milwaukee, Hales Corner in the state’s southeastern part has a small suburban feel where it’s easy to meet and get to know your neighbors.

Expect to find great brewpubs, greenery in the form of parks and hiking trails and even a botanical garden here. The Boerner Botanical Gardens features 11 specialty gardens — including a bog walk and rose garden, too.

A one-bedroom apartment in Hales Corner decreased by 7.7 percent since last year. Fortunately for renters here, it’s possible to find an apartment for less than $800 a month.

Find apartments for rent in Hales Corner
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3. Merrill

Photo source: City of Merrill, Wisconsin / Facebook
  • Average 1-BR rent price: $778
  • Average rent change in the past year: 17.3 percent

Nicknamed “The City of Parks,” thanks to its many parks located throughout Merrill, the city is also home to approximately 10,000 residents. Merrill is on the Wisconsin and Prairie rivers.

The active community hosts several year-round events for its residents, from a farmers market to parades. Since there are so many parks and nearby rivers to enjoy, there are plenty of opportunities for outdoor activities from fishing and kayaking to hiking and birding, too.

Merrill is also home to several businesses included Agra Industries, Church Mutual Insurance Company, Lincoln Wood Products and Merrill Manufacturing.

Find apartments for rent in Merrill

2. Racine

  • Average 1-BR rent price: $758
  • Average rent change in the past year: 1.20 percent

Located on the shore of Lake Michigan and just 22 miles south of Milwaukee, Racine takes advantage of its proximity to the lake with many opportunities to enjoy lakefront activities, whether it’s yoga or swimming at one of its popular beaches or canoeing or kayaking.

Art and architecture fans will appreciate having close access to the Racine Art Museum, home to the country’s largest contemporary crafts while visitors from all over the world make the trek to Racine to see the S.C. Johnson’s world-renowned architecture headquarters, designed by Frank Lloyd Wright.

And, of course, residents have bragging rights to kringle, the oval-shaped Danish pastry produced mostly in bakeries in Racine County. Furthermore, you can’t come to Racine without having a kringle or two.

Its downtown area is charming and filled with independent boutiques and restaurants. In addition to being home to S.C. Johnson, other businesses such as Twin Disc, Modine and In-Sink-Erator have locations in Racine.

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1. Wisconsin Rapids

Photo source: Wisconsin Rapids Downtown Farmers Market / Facebook
  • Average 1-BR rent price: $726
  • Average rent change in the past year: 13.1 percent

Most people don’t know cranberries grown in the United States come from Wisconsin, New Jersey, Massachusetts and Washington and the Wisconsin Rapids area is well-known as cranberry country.

Besides cranberries, Wisconsin Rapids is an attraction magnet. There is the award-winning Wisconsin Rapids Aqua Skiers, a show waterski team, the Wisconsin Rapids Municipal Zoo and even the Tri-City Curling Club, one of only 80 facilities in the country that offers training and competitions for locals and visitors to enjoy.

Additionally, Wisconsin Rapids is also known for its arts and cultural institutions. A downtown farmers market takes place twice a week from early June through end of September, as well as many unique shopping opportunities and family-operated restaurants, cafes, food trucks and taverns.

Luckily, there is no shortage of fun and activities in the Wisconsin Rapids area and more people flock to this area as a one-bedroom apartment increased in rent by more than 13 percent over the past year. Even with the double-digit increase, it’s possible to find a place for around $726 a month.

Find apartments for rent in Wisconsin Rapids
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The most expensive places to live in Wisconsin

It’s possible to find a one-bedroom apartment in Wisconsin for less than $1,500 a month. Even some of the most expensive places to live in Wisconsin, such as Saint Francis or Kenosha, offer a one-bedroom apartment for $1,469 and $1,436 respectively.

If budget is a concern, here are some of the most expensive places to live in Wisconsin.

Methodology

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory as of June 2021. Our team uses a weighted average formula that more accurately represents price availability for each unit type and reduces the influence of seasonality on rent prices in specific markets.

We excluded cities with insufficient inventory from this report.

The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com