Most people can’t afford to buy a home outright — especially not today given how elevated home prices are. If you’re in the market for a home, there’s a good chance you’ll be seeking out a mortgage loan to finance that purchase. And if your credit score is high, there’s a good chance you’ll be approved provided you meet your lender’s income requirements.
But what if your credit score isn’t so great? Unfortunately, a lower credit score could make it difficult to qualify for a mortgage. But that doesn’t mean you’re doomed automatically. You may be able to borrow for a home even if your credit score could use work. Here are a couple of steps you can take if you’re eager to get a mortgage with poor credit.
1. Look outside a conventional mortgage
The minimum credit score for a conventional mortgage is 620. But certain loan programs allow you to borrow for a home with a lower score.
With an FHA loan, for example, you may be able to get approved with a score as low as 500. What’s more, VA lenders are sometimes flexible with credit score requirements, so if you meet the criteria for one of these loans, that may be an option, too.
Of course, if your credit score is close to 620 but not quite there, you could try waiting a few months to apply for a mortgage and boosting that number. Paying bills on time could help your score improve a lot. It also pays to review your credit report for errors. Correcting a mistake (for example, an incorrectly reported delinquency) could result in a higher score in fairly short order.
2. Make a larger down payment
Although 620 is considered the lowest acceptable credit score for a conventional home loan, mortgage lenders can ultimately set their own standards. As such, you may come across a lender that wants a credit score of 640 for the loan size you’re looking to take out.
More: Check out our picks for the best mortgage lenders
In a situation like that, you might manage to get approved for a mortgage by making a larger down payment. The more money you put down on your home, the less risk your lender takes on.
A conversation might help as well
The reason mortgage lenders insist on the credit scores they do is because they want to protect themselves and increase their likelihood of getting repaid. As such, don’t be shocked if your home loan request is denied due to your credit being in bad shape.
Think about it this way. If you have an unreliable friend — they’re always running late and they’re constantly forgetting about obligations — you’re probably less likely to trust them with an important matter. Similarly, it’s hard for mortgage lenders to trust borrowers whose credit is poor.
However, if your poor credit stemmed from a specific situation, it doesn’t hurt to let the lenders you’re applying with know. Maybe you were out of work for a year to recover from an injury or illness, and that’s why your credit took a beating. Or maybe you had to cut your hours temporarily to care for an ailing parent, but you’ve since gone back to full-time work and are in a much better position to pay your bills on time.
In some cases, a mortgage lender might solely look at the number it sees and deny your application if your credit score is too low. But it never hurts to tell your personal story and see if it helps.
U.S. Home Decor Market to Surge at a Robust Pace in Terms of Revenue Over 2027
According to a new report published by Allied Market Research, titled, “U.S. Home Decor Market by Product Type, Income Group, Price, Distribution Channel & Category: Opportunity Analysis and Industry Forecast, 2020–2027,” The U.S. home decor market size was valued at $125,813.0 million in 2019, and is estimated to reach $158,929.1 million by 2027, registering a CAGR of 8.0% from 2020 to 2027. In 2019, the floor covering segment accounted for significant contribution in the U.S. home decor market share, and is expected to grow at a CAGR of 8.4% throughout the forecast period.
The U.S. home decor market has witnessed significant growth over the years, and is expected to grow at a steady pace during the forecast period. This is attributed to the fact that market players are focusing on developing eco-friendly products, owing to rise in environment awareness. The floor covering segment occupied the largest share in the overall home decor market in 2019, and is expected to maintain its leading position throughout the forecast period, owing to the wide adoption of floor coverings,
The home decor market in U.S. is driven by surge in disposable income and improvement in living standards. Moreover, the rise in affinity of consumers toward consumer-friendly home décor products are anticipated to boost the demand for home decor products. However, availability of low-quality and counterfeit products and fluctuations in the prices of raw materials used to manufacture these products restrain the market growth. Conversely, surge in demand for trendy and unique furniture is anticipated to provide lucrative opportunities for the U.S. home decor market growth.
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The U.S. home decor market is segmented based on product type, distribution channel, price, income group and category. Depending on product type, the market is divided into furniture, home textile, and floor covering. By distribution channel, it is fragmented into supermarkets & hypermarkets, specialty stores, e-commerce, and others. Based on the price, the market is segmented into premium and mass. Based on the income group, the market is segmented into lower-middle income, upper-middle income, and higher income. Based on category, the market is segmented into eco-friendly and conventional.
According to the U.S. home decor market analysis the floor covering segment generated the highest revenue in 2019, and is expected to remain dominant throughout the forecast period. The flooring segment is also expected to witness the highest growth rate of 8.4% from 2020-2027.
According to the U.S. Home Decor market forecast based on distribution channel, the specialty stores segment was the highest contributor to the U.S. market in 2019 and is expected to remain dominant through 2020-2027. However, the E-commerce segment is expected to grow at a higher growth rate through the forecast period.
Based on the price, the mass segment was the highest contributor to the U.S. home decor market in 2019 and is expected to remain dominant through 2020-2027. However, the premium segment is expected to grow at a higher growth rate through the forecast period
Based on the income group, the higher income segment was the highest contributor to the U.S. home decor market in 2019 and is expected to remain dominant through 2020-2027. The upper-middle income segment is expected to grow at a notable growth rate through the forecast period.
Based on the category, the conventional segment was the highest contributor to the U.S. home decor market in 2019 and is expected to remain dominant through 2020-2027. The eco-friendly segment is expected to grow at a highest growth rate through the forecast period
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Key findings of the study
The U.S. home decor market was valued at $125,813.0 million in 2020 and is estimated to reach $158,929.1 million by 2027, growing at a CAGR of 8.0% through the forecast period. Based on product type, the floor covering service segment would witness the fastest growth, registering a CAGR of 8.4% during the forecast period. In 2019, based on distribution channel, the specialty stores segment held the highest share, accounting for nearly half of the U.S. home decor industry. In 2019, based on the price, the mass segment was the most prominent segment and is expected to grow at a significant CAGR throughout the forecast period. Conventional segment was the dominant segment in 2019, accounting for a considerable share in the U.S. market.
Reason to Buy: ✅ Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the U.S. home decor market . ✅ Highlights key business priorities in order to guide the companies to reform their business strategies and establish themselves in the wide geography. ✅ The key findings and recommendations highlight crucial progressive industry trends in the U.S. home decor market , thereby allowing players to develop effective long-term strategies in order to garner their market revenue. ✅ Develop/modify business expansion plans by using substantial growth offering developed and emerging markets. ✅ Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those restraining the growth to a certain extent. ✅ Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to products, segmentation, and industry verticals.
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MPA: How does Carolina Ventures navigate economic fluctuations, especially in terms of interest rate changes and housing market dynamics? WB: We don’t dwell on the market or recommend that clients do so, either. With so many buyers looking for new homes, inventory in our area is the bigger challenge, not interest rate fluctuations. Business executives, … [Read more…]
There’s a reason people are cautioned to make sure they’re on solid financial ground before diving into homeownership. The cost of owning property extends far beyond just the expense of a monthly mortgage payment.
In addition to the money you have to send your mortgage lender every month, you’re required to pay for homeowners insurance, maintenance, repairs, and property taxes. And in some states, the latter can be quite expensive.
Take New Jersey, for example. Known for its soaring property taxes, the median homeowner bill in that category was $8,797, as of 2022.
Now, the good news is that homeowners who itemize on their tax returns can take a deduction for property taxes. The bad news, though, is that homeowners in high-tax states may not be able to write off their property tax bills in full.
Your deduction is capped at $10,000
As a result of the Tax Cuts and Jobs Act, the state and local tax deduction (otherwise known as the SALT deduction) is now capped at $10,000 regardless of your state of residence. This means the maximum deduction you can take for property taxes and state income taxes combined is $10,000.
It’s worth noting that the $10,000 limit applies to federal taxes. States can set their own limits for deducting property taxes, and in some states, the threshold is higher than $10,000.
More: Check out our picks for the best mortgage lenders
But still, if you’re someone with a $12,000 property tax bill, you automatically don’t get to deduct $2,000 of that total on your federal tax return under the current rules. If you pay $8,000 a year in property taxes and $7,000 a year in state income taxes, you similarly lose out on a deduction to some degree due to the $10,000 SALT cap.
But that $10,000 cap may not last forever. And come 2026, owning a home in a high property tax state may be more affordable.
The rules might change
The Tax Cuts and Jobs Act limited the SALT deduction to $10,000. But that rule is currently set to expire in 2025 unless lawmakers determine otherwise. As such, come 2026, it’s possible that as a homeowner, you may be able to take a larger tax deduction for your property taxes. And that could result in a world of financial relief.
Granted, this potential change may not impact you if you live in a state with no income tax and your current property tax bill is something like $3,500. But for residents of states with higher property taxes, this change could be huge.
You can also appeal your property taxes
At this point, it’s too soon to know whether the $10,000 SALT cap is here to stay for the long haul. But you should also know that you’re not necessarily stuck with the property tax bill you’re assessed.
As a homeowner, you have the right to appeal your property taxes. The process for doing so differs from state to state, but your local tax assessor should be able to walk you through the process of filing an appeal where you live.
To win a property tax appeal, though, you have to prove that the value being assigned to your home by your local tax assessor is higher than the home’s true market value. At a time when home prices are up on a national scale, that may be tough to do.
However, if the real estate market cools off in the coming months or years, fighting your property tax bill may be more doable. If your home is assessed at $500,000, and you can find proof that comparable homes in your neighborhood sold recently for $420,000, you have a case.
If the SALT cap limit expires in 2025 as it’s currently scheduled to do, then you may find that you’re eligible for a larger tax deduction in 2026. However, don’t go into homeownership now banking on a larger tax write-off in 2026. Instead, crunch the numbers to make sure you can afford the full cost of homeownership — regardless of whether the SALT deduction becomes more valuable in the future.
As a former sorority girl who went to college in the South during the 2010s, I’m no stranger to bows. We wore them loud and proud in our hair and on our clothing and slapped them on all sorts of DIY projects. That may have been 10 years ago, but as they say, all trends come back around eventually. Fast forward to last year when designers Sandy Liang and Simone Rocha debuted their fall 2023 collections at New York Fashion Week with one theme in common: bows. Soon afterward, TikTok became full of videos tagged with #coquetteaesthetic, AKA a romantic, feminine style à la Bridgerton. Think baby doll dresses, pastel colors, lots of lace, and delicate bows tied in your hair.
It’s not just fashion included in this trend, though. Bow home decor is having its moment, too. During the holiday season, it was hard not to scroll through social media and see images of bows tied around Christmas trees, candlesticks, ornaments, artwork, and more. But even though the holidays have passed, the coquette aesthetic is still going strong. If you’re interested in trying out the trend for yourself, keep scrolling for suggestions on how to incorporate bow home decor into your space. No trip to the ribbon aisle of the craft store required.
In this article
Decor & Accessories
Some may argue that a bow is an accessory itself, but this trend takes it a step further. In keeping with the delicate, feminine vibes of the coquette aesthetic, add small touches throughout your home with these bow-adorned decor pieces.
Linens & Pillows
Embrace your feminine energy and create the bedroom of your dreams with blankets, pillows, and curtains all adorned with bow accents.
Rugs
Whether it’s a plush bath mat or a large area rug, a patterned rug adds not only visual interest to a space but it also cozies up otherwise cold, bare floors.
Wallpaper & Artwork
If you’re looking to really lean into the coquette trend, consider using wallpaper or wall art to make a bold statement with bows. The best part is peel-and-stick wallpaper or art prints are easy to change out when trends shift.
However, Kan explained that the stability in rates hasn’t been enough to overcome the challenges posed by limited housing supply and high home prices, which continue to put a damper on the activity of home purchases. “Applications decreased compared to a holiday-adjusted week, driven by a decline in purchase applications that offset a slight increase … [Read more…]
Here’s one solid assumption for mortgage rates for 2024 — they’ll act like a yo-yo. Again.
To see the extremes that home loans go through, my trusty spreadsheet looked at swings in Freddie Mac’s weekly 30-year average fixed rate going back to 1972.
And over the past half-century, the average year’s highest rate was 8.4 percent vs. a 7 percent low. That translates to a typical 12-month period having a 1.4 percentage-point swing between the top and bottom mortgage rate.
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Yes, rate volatility is fairly normal.
Three odd years
But the size of rate gyrations during the past three years has not been normal.
Remember, the Fed aggressively used interest rates to first stimulate a coronavirus-chilled economy, only to then hike rates to fight an overheated business climate.
Well, 2023 was sort of mainstream with rates running from a 7.8 percent high to a 6.1 percent low. That’s a slightly above-average 1.7-point spread, top to bottom.
Still, this was the 11th widest gap in any year during the past half-century.
Yet those fluctuations look tame vs. 2022 when rates ranged from 7.1 percent to 3.2 percent as the Fed ended its cheap-money policy. That 3.9-point chasm was the third-largest rate swing in a half-century. Bigger swings were seen in 1980 and 1982, another period when rate hikes were used to battle inflation.
And somehow all this recent mortgage turmoil followed a far calmer 2021 when the Fed used cheap money to prop up the coronavirus-chilled economy.
Rates moved only between 3.2 percent and the record-low 2.65 percent in 2021 — a half-point spread that was history’s sixth-smallest gap.
Simply stated, history clearly shows mortgage rates rarely move in a straight line.
Make or break
Do not forget, the ups and downs of rates put huge spins on a borrower’s purchasing power. These fluctuations can make or break many a homebuying deal.
During the past half-century, there’s been an average 15 percent difference between the monthly mortgage payment tied to a year’s highest mortgage rate compared to the size of the monthly check at the lowest rate.
Last year, there was a 19 percent swing, history’s ninth-largest gap swing.
And that looks stable vs. a painful 2022 and the largest gyrations of the past half-century — a 55 percent difference due to the Fed increasing rates aggressively.
All that excitement came after a placid 2021 when purchasing power swung only 7 percent.
Still, history strongly suggests that mistiming the mortgage market can be an expensive mistake.
Bottom line, I took this rate-swing history and applied it to 2023’s year-end 6.6 percent average rate to create a forecast range for 2024.
Some simple math suggests the average 30-year mortgage rate will run between 7.3 percent and 5.9 percent in 2024. And that’s without doing much thinking about the Fed’s next moves, how the economy might fare, or what’s next for inflation.
By the way, history says a year’s average mortgage rate landed within this forecast formula’s projected range 80 percent of the time.
Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected].
Across the United States, many homeowners are saying yes to renovating their homes in 2024.
Key findings from Opendoor’s 2024 Home Decor Report reveal that Americans plan to spend an average of $5,635 on home remodeling projects this year. This money will be invested to breathe new life into their existing spaces.
See: 10 Expenses Most Likely To Drain Your Checking Account Each Month Learn: How To Get $340 a Year in Cash Back — for Things You Already Buy
What are Americans prioritizing with their home renovations? GOBankingRates spoke with several experts in the renovation business to learn more about homeowner ideas for improving their spaces in the year to come.
Updated Kitchen Appliances
Investments are being made in the kitchen this year, especially when it comes to updating appliances. According to Opendoor’s report, updated kitchen appliances may potentially help with resale value when and if homeowners decide to sell their homes.
When deciding which appliances to replace, Stephanie Duncan, senior home designer at Opendoor, recommends opting for sleek, stainless-steel appliances. These appliances, like a new refrigerator and stove, should inspire potential buyers to imagine life in that kitchen — and encourage them to make an offer right away.
As an additional shopping pro tip, Duncan said you don’t need to buy the most expensive appliances on the market.
“While it is important to have updated appliances, it is not necessary to buy the top-of-the-line options. Not overspending on the most luxe brands will ensure people see a return on their investment,” said Duncan.
View: 4 Red Flags as You Check Your Bank Statements Every Month More: How To Survive on $500 a Month: A Frugal Living Guide
Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.
Stained Wood Makes a Comeback in the Kitchen
Stained wood tones are making a comeback in kitchens as more homeowners move away from head-to-toe white kitchens. Julie Hampton, interior designer and project director at Freemodel, said some of the popular stains she sees range from light cerused oak to inviting medium hickory shades.
The good news for buyers is that it’s cost-effective to shift cabinet finish from paint to stain. According to Hampton, homeowners who choose stain over paint can save $3,000 to $5,000 on their project.
Related: What Is the 75/15/10 Rule? A Simple Path to Financial Wellness
Upgraded Kitchen Cabinet Hardware
The spotlight is on kitchen cabinets and cupboards this year.
Buyers trying to avoid overspending on their kitchen renovations are recommended by Duncan to upgrade knobs and handles on their cabinets or cupboards. Switching the hardware out is an effective way to upgrade these spaces without needing to buy new pieces.
Storage as a Decorative Element
Buyers this year are getting inspired by organization-themed TV shows, Instagram Reels and TikTok when it comes to kitchen storage for specific purposes.
Amber Shay, national VP of design studios at Meritage Homes, has seen everyday items, like snacks and supplies, being organized into specific pantry containers. Shay said there’s also storage being used as a decorative element with containers in fun colors and designs to match the décor scheme.
For the full kitchen, Hampton said buyers can expect to spend $3,000 to $6,000 on customizing cabinet interiors. Other options to explore, if you have a big budget to work with, include appliance garages or pantries with pullout shelves.
Those on a budget can still customize their cabinet interiors. “Homeowners should budget $150 to $1,200 for each cabinet to add options such as drawer pullouts, appliance lifts or converting a cabinet with doors to drawers,” Hampton recommended.
Read: 5 Frugal Habits of Barbara Corcoran
Sanctuary Bathrooms
The primary bathroom is getting a makeover as a relaxing retreat inside homes.
Buyers seeking to create a luxurious, spa-like atmosphere in their bathrooms are recommended by Shay to explore the following investments:
Adding vintage rugs, art and other décor to make the primary bathroom look and feel like a welcoming place of respite. (Opendoor’s survey notes Americans spend an average of $1,599 per year on home décor.)
Embracing matte black. “A matte black faucet seamlessly blends with on-trend iron and aged brass light fixtures in a bathroom,” said Shay.
Using plants as accessories. This helps bring the outside indoors.
Hotel-Style Living Rooms
Buyers don’t need to spend a lot of money to create a stylish living room that they love.
“Think of items like upscale hotel-style bedding, monogrammed towels, cozy throw pillows or a stylish mirror. You can keep your eye out for original art when you’re on the hunt for furniture at thrift stores,” said Shay.
“Also, consider investing in a high-quality area rug that’s designed to look like a priceless heirloom — it can set the tone for the entire space,” she added.
Discover: 9 Frugal Secrets I Learned From Growing Up Poor
Eco-Friendly Laundry Room Solutions
More homeowners are prioritizing eco-friendly solutions in their laundry rooms.
Hampton uses the example of homeowners choosing to air-dry clothes instead of putting them into the dryer. This choice is both environmentally friendly and causes less damage to garments.
“Laundries may include pullout drying racks that are hidden in the cabinets to maintain the aesthetic,” said Hampton. “Popular systems with installation cost around $1,500.”
Interior Painting Is the Second Remodeling Priority
According to Opendoor’s survey results, kitchens are the number-one remodel priority for homeowners with the number two slot going to interior painting. (New lighting fixtures and new floors take the third and fourth priority spots, respectively.)
As far as which colors are popular with buyers, Duncan said subdued greens and blues are emerging to the forefront. Both shades offer grounding and stability to homeowners.
Shay also agrees with Duncan’s color assessment, adding in her color recommendations of sea blue and darker, moody blues for interior painting.
Buyers who choose sea blue will be able to complement any marble and other natural stones in a space or use it as a fun accent while a moody blue is ideal for a sophisticated and dramatic space. If you dare create a bolder look in your home, Shay said to use dark blue as an interior wall or ceiling color or for painted cabinets and furniture.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Experts: Here Are 8 Home Renovations Buyers Want the Most in 2024
Contradictions abound in respondents’ views The survey also found that 53% said the US economy will improve over the course of the next 12 months – a nearly 180-degree turn from the 51% that expected the economy in 2022 to deteriorate. Michael Minard (pictured), CEO/owner of Delta Media Group, spoke to Mortgage Professional America about … [Read more…]
The average long-term U.S. mortgage rate eased this week, welcome news for prospective homebuyers as the spring homebuying season approaches.
The average rate on a 30-year mortgage fell to 6.63% from 6.69% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.09%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week, pulling the average rate down to 5.94% from 5.96% last week. A year ago it averaged 5.14%, Freddie Mac said.
The cost of financing a home has been mostly easing in the weeks since the average rate on a 30-year mortgage hit 7.79%, the highest level since late 2000. So far this year, the weekly average has ranged between 6.60% and 6.69%.
Jobless claims rise to two-month high
Initial and recurring applications for US unemployment benefits both rose to a two-month high, suggesting some slowdown in the labor market.
Initial claims increased by 9,000 to 224,000 in the week ending Jan. 27, according to Labor Department data released on Thursday. The median forecast in a Bloomberg survey of economists called for 212,000.
Continuing claims, a proxy for the number of people receiving unemployment benefits, rose to 1.9 million in the week ending Jan. 20.
The US labor market has defied economists forecasts over the last year despite elevated interest rates, but there are signs of cooling. Fewer people are quitting their jobs than at the peak of the pandemic recovery and recent high-profile job-cuts announcements from companies including United States Parcel Service Inc. may be early signs that unemployment will pick up in coming months.