Inside: Ever wondered how much rent you can afford on a particular hourly wage? Use the rent calculator to see what you can afford on $20 an hour. Find out from the experts in this guide.
Honestly, this is something most people don’t think about until after they get themselves in a troubling situation.
Determining rent affordability is paramount in your financial planning. It’s important to strike a balance between comfortable accommodation and fiscal responsibility to avoid financial strains down the road.
There exists a direct correlation between your income and the rent you can afford to pay. Higher income opens doors to pricier accommodations while lower wages might enforce budget constraints. Understanding this relationship is crucial.
It guides your housing decisions and helps maintain a stable financial footing.
By calculating your rent affordability, you can set a clear budget, establish your housing needs, and navigate the real estate market with ease.
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How much rent can I afford making $20 an hour?
If you make $20 an hour, based on a standard 40-hour work week, your gross income would come up to approximately $3,467 per month.
If you follow the 30% rule, this means you should allocate a maximum of $1,040 each month for rent.
$3467 x 30% = $1040
However, remember this is a rough estimate and your specific expenses and financial obligations should also be taken into consideration before deciding on a rent budget.
What Percentage of My Income Should Go to Rent?
This is a good question to consider.
Even better when you are trying to figure out how much to save before moving out.
The 30% Rule Explained
The 30% rule is a simple guideline suggesting that one should allocate no more than 30% of their gross (before taxes) monthly income toward rent.1
This rule of thumb has been widely adopted as a measure of rent affordability. The beauty of the 30% rule lies in its simplicity and ease of use, allowing for quick budgeting while maintaining room for other essential expenses.
Be Conservative and Stick with 20%
According to Money Bliss budgeting percentages, adopting a more conservative approach to budgeting by allocating only 20% of your income towards housing costs can be more beneficial.
If you follow the 20% rule, this means you should allocate a maximum of $693 each month for rent.
$3467 x 20% = $693
This strategy helps to account for additional expenses such as utilities, unexpected repairs, and other costs that often accompany home ownership or renting.
This reduced allocation promotes being smart with your money to avoid unnecessary financial stress.
When to Consider Stretching the 30% Rule
At times, it might be necessary to stretch the 30% rule particularly in high-cost areas or during short-term situations. It’s crucial, however, to understand the potential ramifications and adjust other spending habits to compensate.
A temporary overshoot could be justifiable if it leads to significant future benefits, like proximity to a well-paying job. Always remember, that this should be an exception rather than the norm.
How Does the Rent Calculator Work?
A rent calculator is a practical tool that aids in estimating the rent you can afford.
This simple calculator is based on your hourly income and spending either 20-30% of your gross income on rent.
Fine-tuning your budget is possible by adjusting the percentage you wish to spend on housing. Remember, the final number serves as a guide and may require adjustments based on your financial situation.
Breaking Down Your Monthly Budget
For savvy budgeters, adhering to the 50/30/20 rule can provide a clear framework for managing your expenses and growing your savings. While at Money Bliss, we went a step further to define it as the 20-50-10-20-0 budget rule. (save-basic expenses-give-fun spending-debt).
This approach gives a precise breakdown of your monthly budget, ensuring that you are living within your means while also setting funds aside for future financial security.
Housing Costs
The basic 50/30/20 rule suggests dividing your monthly net income into 50% for necessities such as rent and groceries, 30% for personal wants like clothing or travel, and designating the remaining 20% for savings goals or debt repayment.
By adding these to your housing budget, you get a realistic picture of your monthly accommodation costs.
When budgeting for rent, one must account for other housing costs. These may include utilities like gas, electricity, and water, as well as internet, cable TV, and trash collection. You might also need to factor in the renter’s insurance and potential parking fees.
Essential Living Expenses
In addition to housing, remember to consider essential living expenses in your budget. These include food, transportation, health insurance, and childcare.
In addition, we advise our readers to put aside about 15-25% of their net income for savings. Accounting for these factors ensures you don’t stretch your budget to the limit solely on rent.
Discretionary spending
While you need to cover essential living expenses, it’s also important to allocate funds for discretionary spending – we call it FUN spending.
This category involves non-essential purchases like eating out, entertainment, vacations, and shopping. Using the 50/30/20 rule as a guideline, 30% of your net income can be put towards these wants, allowing you to enjoy your income while staying financially sound.
Factors Influencing Rent Affordability
There are many factors that impact how much you can spend on rent. As such, this will vary from person to person as situations vary. While these numbers are gross income, you need to realize the amount of money coming out for taxes. Many people don’t understand gross income vs net income.
Furthermore, the cost of living and rental prices in your chosen location can greatly impact how much you can afford. So, use the rent affordability calculator!
Location and Rent Prices
The location of a home greatly influences its rent prices. HCOL vs LCOL is a real thing!
Proximity to the city center, schools, parks, and shopping centers typically equate to higher costs. For example, renting trends in 2023 indicated an increase in prices the closer you get to these amenities.2 By choosing to live a bit further out, you may be able to find more affordable rent payments.
Areas with higher crime rates will have lower rents but these tend to come with more issues.
Size and Type of Housing
The size and type of your dwelling can also significantly affect your rent. Large houses with multiple rooms naturally cost more, whereas smaller apartments or studios are less expensive.
The type of housing also plays a role; for instance, a modern, furnished apartment might cost more than an unfurnished one. Tailoring your choice to your needs and budget allows for comfortable living without overspending.
If you have a pet, don’t forget it may cost more plus you have a pet deposit.
Lease Length Considerations
Lease length can directly impact your rent. Longer leases often equate to lower monthly rents, offering landlords a sense of security. On the contrary, short-term or month-to-month leases typically come with a higher price tag due to their inherent flexibility.
Assess your personal situation and potential need for flexibility before deciding on the lease term.
Also, the amount you need to put down as a security deposit can be negotiated.
Tips to Maximize Your Rent Budget
Plan your budget carefully taking into account factors like income, potential expenses, and the cost of living in your chosen location. So, if you are thinking $5000 is enough to move out, you may be surprised.
Use the 30% rule as a guide but be aware that in high cost of living areas, you may need to adjust this percentage. When searching for a rental, compare the cost and amenities of different apartments in your preferred areas and see if there are nearby neighborhoods with cheaper rental costs.
Also, you may need to embrace cost-saving measures such as cooking at home and shopping frugally to free up more income for rent.
You can learn more about those areas on our site.
Tip #1 – Reducing Costs and Saving
There are several ways to reduce housing costs and save more in this tough rental market.
Consider downgrading to a smaller place or moving to a less expensive area.
Negotiate a longer lease term for a reduced monthly rent.
Maybe even consider becoming a permanent housesitter to free up your budget.
Small changes can lead to substantial savings over time.
Tip #2 -Planning for Future Rent Increases
Each year when your lease is about to renew, always factor in the possibility of future rent increases, which could be influenced by trends in the real estate market and inflation.
Ensuring your income can keep up with these increases is necessary for maintaining affordability. Continually reassess your rent affordability, especially during annual lease renewals or job changes.
Tip #3 – Get Roommates
Sharing your space with a roommate is a practical way to cut down on your living expenses substantially. By having one or more people to share the rental costs, utilities, and even groceries in some instances, you are likely to free up a considerable portion of your budget.
However, it’s important to clearly set boundaries and expectations to maintain a smooth living arrangement.
FAQ on Rent Affordability
Spending more than 30% of your income on rent is generally not advisable. It risks leaving you cash-poor, having insufficient resources for other important expenses like groceries, utility bills, health expenses, retirement savings, or emergency funds.
However, in certain scenarios like living in high-cost areas or prioritizing proximity to work (thus lowering your need for a car), bending the rule temporarily might be justifiable. Always reassess your budget to account for flexibility.
Yes, an increase in your hourly wage can slightly affect the amount of rent you can afford. The raise translates to an increased monthly income, which may enable you to comfortably afford higher rent.
However, it’s important to ensure this does not erode financial stability because lifestyle creep is real. Aim to maintain the key balance between comfortable living and responsible saving.
It’s recommended to reassess your rent affordability annually or when there’s a significant change in your financial situation.
Such changes could be a raise or decrease in income, new financial obligations, or plans to save for major future expenses. Regular evaluations ensure your housing budget aligns with your current financial realities.
Is $20 an hour a livable wage?
Given the average rent in the United States is $1702, $20 an hour is not a livable wage, especially in San Francisco or New York. As such, the maximum you should be spending on rent is $1040.
If workers are unable to afford to live in the communities they work in, it puts the whole system under stress. While there have been movements to create low-income housing, it is slow to happen and for many, difficult to apply.
Ultimately, whether this wage allows for a comfortable lifestyle depends largely on your financial habits, commitments, and where you live.
With good financial planning, including a solidly crafted budget that factors in rent, savings, and living expenses, a $20 hourly wage can indeed cater to a decent lifestyle.
Remember to reassess your budget regularly and adjust as necessary to meet changing financial landscapes.
Making wise financial decisions now can lead to a financially secure future. Now, do you have the habits needed to be financially stable?
Source
FiftyThirtyTwenty. “About.” http://fiftythirtytwenty.com/about.html. Accessed November 13, 2023.
Rent. “Rent Growth in Half of Suburbs Outpacing Metro’s Core City.” https://www.rent.com/research/suburban-growth-outpacing-core-city/. Accessed November 13, 2023.
Rent Cafe. “Average Rent in the U.S.” https://www.rentcafe.com/average-rent-market-trends/us/. Accessed November 13, 2023.
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It’s not uncommon to hit a moment in your financial life when you could use some cash…like, right away. Maybe you have a slew of unexpected expenses, get laid off, or need to help a loved one in need. Whatever the case, you may be craving a quick cash infusion.
To help out, here’s a list of 23 ways to get some money flowing your way ASAP. Some are online methods, others are in-person, but all can help you out when you are in a pinch.
Read on to see which of these ideas may suit you, plus tips on staying safe as you go after those additional funds.
When You Need Quick Cash
Many people hit a time when they could really use some additional cash. Perhaps you moved to a new town and need to put down a security deposit on a rental as well as pay your movers. Or you are a freelancer, and one of your clients is slow to pay. Or you need pricey dental work which isn’t fully covered by your health insurance. Or perhaps you just went overboard on holiday gift buying, and now your credit card bill is due.
Whatever the reason, if you need to get money fast and don’t want to break out your high-interest plastic to see you through, don’t panic. There can be an array of ways to bring in cash quickly. Some are online (taking marketing surveys), some are in person (dog walking), but there is likely to be at least a couple that suit your preferences and your situation.
💡 Quick Tip: An online bank account with SoFi can help your money earn more — up to 4.60% APY, with no minimum balance required.
Online vs Offline Money-Making Opportunities
As you look into ideas for how to get money fast, one key consideration is whether you want to do so online or offline. Perhaps both ways suit you, but many people have a preference.
If you have a job, are caring for dependents, or otherwise are under time constraints, you may prefer to squeeze in your money-making activities here and there. Online opportunities may suit you well, since some are available 24/7. For example, you could upload items you want to sell on eBay at any hour.
For others, offline work is more suitable. If, say, you are a brilliant guitar player and have a knack for sharing your skills, music lessons could be a good path, and you might find doing these in person more rewarding than via Zoom. Or holding a yard sale and selling off unwanted stuff could bring in a good amount of cash quickly.
Making Money Online
To help you scope out opportunities, consider this list of online ways to make quick cash.
1. Take Online Surveys and Market Research
From the privacy of your home, at your convenience, you could be earning small amounts of money (which can add up) by taking online surveys, watching videos, or even sharing your search history. These typically help marketers gain insight into consumer behavior and opinions Some places to sign up: Branded Surveys, Inbox Dollars, and Survey Junkie sites.
2. Sign Up for Freelancing Platforms
Do you have a skill to share…and sell? You might be able to offer your writing, social media, web design, translation, or other talents on a platform like Upwork, and get paid for freelance gigs. This can be an especially good way to make money even with no job.
3. Sell Products on E-Commerce Websites
If you are artsy or craftsy, you might try posting your work for sale online. Whether you make necklaces, take great nature photos, or knit beautiful baby sweaters, Etsy is a popular option. Just keep in mind that e-commerce websites typically have posting fees and then take a cut of your sales.
4. Offer Online Tutoring and Courses
You might be able to make quick cash by teaching online. Did you score in the top percentile on a standardized test or ace high-school physics? Are you pretty much fluent in French, or can you make bake-off-worthy cakes? You might be able to do remote tutoring or offer a class online. The key to bringing in quick cash here will be marketing your services well, so do a little online research upfront about how to bring an audience your way.
5. Try Affiliate Marketing
Do you love social media and have a strong presence, whether as a gamer, sharer of clothing hauls, or a guide to neighborhood businesses? If so, you could make quick cash via affiliate marketing. This means that you earn a commission on every visit, sale, or sign-up that you generate for a brand or merchant. You can learn more at affiliate marketing sites such as SemRush.
6. Find Unclaimed Money
Did you know that unclaimed funds, whether from forgotten-about bank accounts or insurance benefit checks that were never cashed, can wind up with the state government and sit, waiting to be claimed? It may be a bit of a longshot, but it can’t hurt to check out this unclaimed funds website and see if there is any cash in your name that you might collect.
7. Claim App Referrals
You may be used to those “Refer a friend and get $25!” offers online. If the shoe fits, as they say, wear it! For instance, if a buddy signs up for a PayPal or a Swagbucks account at your recommendation, you could benefit with a small chunk of change heading your way as a thank you.
8. Open a Bank Account
The personal finance business can be competitive these days, and some banks will offer you a tidy sum to open an account with them. This is among the more common bank bonuses, and while amounts will vary, you could earn a quick $250 this way. These offers are often at online vs. traditional banks. Just be sure to read the fine print before you sign up to make sure that there aren’t fees or minimum balances that would be challenging for you.
9. Sell Unused Gift Cards
Here’s a slightly weird way to make money. Do you have a gift card or two, maybe sent by a well-intentioned relative, sitting unused? Perhaps you never go to the coffee chain the card is for, or you don’t have a branch of the store nearby. You might recoup some of the card’s value by selling it on a site like CardCash, ClipKard, or GiftCash.
10. Get Paid Sooner
Need more ideas for how to make quick cash? This one doesn’t exactly bring in more money but can give you access to your earnings sooner. Some financial institutions will make your paycheck available up to 48 hours early when you sign up with direct deposit. Again, this isn’t a sum beyond what you earn, but it can let you, for instance, pay bills on time when you otherwise couldn’t.
11. Work as a Virtual Assistant
In this age of automation, many jobs can be done remotely as long as you have computer and wifi access. That includes being someone’s assistant and helping with tasks like scheduling, correspondence, and travel arrangements. Look for listings on sites like FlexJobs and LinkedIn.
💡 Quick Tip: If your checking account doesn’t offer decent rates, why not apply for an online checking account with SoFi to earn 0.50% APY. That’s 7x the national checking account average.
Making Money Offline
Need more inspiration on how to make quick cash? There are plenty of ways to do so in the real world instead of online. Here is an assortment of ideas for getting some money into your bank account, where it’s needed most.
12. Do Local Odd Jobs and Gigs
Are there any services, whether one-off or ongoing, that you could offer? You might be able to help a senior with shopping, do yard work, assist someone with cleaning out their basement before they move, or set up for a party. Take a look at sites like Fiverr, Craigslist, or Nextdoor, as well as locations like community bulletin boards at cafes and other locations.
13. Sell Unused or Unwanted Items
Your junk could be someone else’s treasure that they might be willing to pay for. You could have a yard sale or visit one of the many places to sell your stuff. Items that could be sale-worthy include good condition electronics, cookware, clothing, sports equipment, housewares, home decor, your vinyl collection, and more.
14. Pet Sit or Walk Dogs
Here’s another idea for how to make quick cash, and it’s perfect for animal lovers: Do some pet sitting or dog walking. Using a well-known social networking site or a pet sitting site could help get attention and build the business; you might also try posting flyers in your neighborhood offering dog-walking services. Cash payments can make this a good gig for those who don’t want to wait for their money.
15. Tutor or Skill Share
As mentioned above, if you have a skill or talent (from speaking great Spanish to coding), you could tutor or offer instruction. Local schools and community centers could be a good place to market your skills; think about what credentials you can tout to show prospective students that you have the know-how.
16. Recycle for Cash
In this era of eco-consciousness, there are plenty of opportunities to recycle for cash. This can be as simple as gathering your own and your neighbors’ unwanted cans and bottles and redeeming them, or you might get scrap metal via Craigslist or Freecycle and then sell it to a scrap yard. And who knew? You might even earn quick cash via recycling cardboard at BoxCycle.
17. Take Care of Children or Elders
Could you do some babysitting, childcare, or eldercare to bring in cash? You’re likely to have some warm and fuzzy feelings too after doing gigs like these and helping others. Caregivers may have to go through an in-depth vetting process to sign up with an agency like Care.com, so be prepared to answer lots of questions (Do you have experience? What would you do in an emergency? Will you cook and clean?) and provide background information and ID.
18. Pawn Items of Value
Let’s say you have an urgent car repair bill and unfortunately haven’t got enough saved in an emergency fund. You could get cash quick by pawning an item (think jewelry, wristwatches, electronics, and musical instruments). This means you take it to a pawn shop, get cash, and if you come back and repay the loan in a certain time frame, you retake possession of the item. If you don’t, the pawn shop can sell it. This practice could benefit you when you need money fast.
19. Rent Out Extra Space
You’ve probably heard about the sharing economy, which can allow people to monetize their unused space. For instance, if you live in a popular area and have an extra bedroom, you might rent it out on Airbnb to people visiting your town for a few nights. You may even be able to rent out your unused parking space on Spacer.
20. Deliver Food
It’s a sign of the times: Food delivery, from groceries to restaurant meals to bubble teas, is on the rise. You might be able to make some fast money by doing this kind of delivery via a service like DoorDash, UberEats, InstaCart, and GrubHub, among others. This can be a good way to use your free time to bring in some cash when you need it quickly.
21. Drive Rideshare
Similarly, if you have access to a car, you could drive a rideshare for a company like Uber or Lyft. Whether ferrying people to the airport, work, or out to dinner, it can be a good way to monetize your free time.
22. Flip Free Items
Are you handy? Here’s a way to get some money flowing your way: You could snag items from Freecycle, Craigslist, Nextdoor, or even the curb, and refurbish and sell them as a low-cost side hustle. Maybe someone is getting rid of an old coffee table or nightstand that’s in rough shape. You could refinish or paint it and sell it at a profit. Yes, it takes a bit of time to do this work, but the opportunity to bring in perhaps a couple of hundred dollars for your effort is real.
23. Cash in Your Coins
Here’s an easy idea for making quick cash: Look around your house for that coin jar that many people have shoved in a closet or on a windowsill. If you have a stash of quarters somewhere, you might be surprised by how much it can add up to. Getting it to the bank or a retailer that offers coin counting and redemption services could bring you a good infusion of cash.
Combining Online and Offline Opportunities
Now that you’ve read this list, you can begin to think about which ideas spark the most interest or best suit your situation. When you want to make quick cash, you don’t have to try just one method.
Feel free to mix up online and offline techniques to make money fast. You might drive a rideshare on Sundays and tutor via Zoom twice a week. It’s all about what works best for you.
Balancing Your Time
One thing to remember as you work to bring in extra cash is that it is possible to overdo it. Whether you have a job and/or a family or are unemployed and single (or anything in between), remember that you do need downtime and rest. Don’t overschedule yourself with odd jobs and other money-making tasks. You need to balance your time. And if you are sleep-deprived and exhausted, you can’t do a good job making money anyway!
Tips for Staying Safe While Making Quick Cash
A word or two of warning as you look for ways to make quick cash: There are occasionally scams and dangerous situations out there. Be savvy as you move ahead.
Avoiding Scams
If an opportunity to make money sounds too good to be true, it probably is. There are quite a number of employment scams out there, so be vigilant. Work-from-home scams and overpayment scams are common; check out Fraud.org’s site to learn more and protect yourself.
When selling items, also proceed with caution. There are also fraudsters using overpayment and money order trickery to get something for nothing.
Managing Personal Information
If you are applying for gig work, be cautious about to whom you send your personal information (such as your Social Security number and banking details). Do your research and vet the recipient of this info; otherwise, you might be dealing with a scammer who is trying to commit identity theft.
The Takeaway
Many people encounter a moment when they could really use some cash quickly. Happily, there are many ways to get money flowing your way, both online and offline. From dog walking to selling your unwanted stuff, from tutoring to taking surveys on your laptop, there are likely several options that can suit your needs.
And once you make that extra moolah, make sure it’s working hard for you and earning you some interest, thanks to a good banking partner.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with up to 4.60% APY on SoFi Checking and Savings.
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Bad credit can feel like the end of your ability to borrow, especially if you are trying to secure a home loan. However, there are options available for borrowers with bad credit to fund the purchase of their dream home.
One of those options is the VA home loan. Luckily, securing a VA loan with bad credit is not impossible. Let’s dive into the details of securing your VA home loan with bad credit.
What is a VA loan?
First, let’s talk about the details of a VA home loan. These types of home loans are an offered benefit to both veterans and current service members.
Va loans make qualifying for financing easier for veterans. Additionally, the VA loan offers other benefits such as a no down payment option which can be beneficial. If you’ve had trouble saving up a hefty down payment, then that benefit will come as a relief.
Although the Department of Veterans Affairs makes VA loans possible, the agency itself does not issue the loan. Private lenders issue the loan to the borrower, but the loan is guaranteed by the Department of Veterans Affairs. Based on this guarantee, VA loans do not carry private mortgage insurance that is typically required without a down payment of 20%.
All of these benefits can add up to a great deal for veterans looking to purchase a home. Even if you have bad credit, it is possible to take advantage of the benefits that a VA loan has to offer.
Who is eligible for a VA loan?
Before you apply for a VA home loan, you’ll need to obtain a Certificate of Eligibility. With this, you’ll be able to prove to your lender that you are in fact able to obtain a VA home loan.
Luckily, the process is not very complicated and almost every member or veteran of the military is eligible. Additionally, members and veterans of the reserve and National Guard are usually eligible. Finally, spouses of military members that died on active duty or from a service-related injury may be eligible for the VA loan.
If you are an active-duty military member, then you will need to serve approximately 6 months before you are eligible.
Keep in mind, you will need to use this home as your primary residence and move into the new home within 60 days of purchase. Sometimes exceptions are made to this general rule, but it will require a case-by-case evaluation. If you do not intend to use this home as your primary residence, then the VA home loan is not a viable option.
What are the credit requirements for a VA loan?
The Department of Veterans Affairs does not require a minimum credit score for VA loan borrowers. As far as the VA is concerned, the most important requirement is the certificate of eligibility. Other than that, the VA requires that borrowers have made on-time payments for the past 12 months. The VA also prefers that borrowers have not declared bankruptcy in at least two years.
However, private lenders are the entity underwriting the loan, not the VA. VA home loan lenders are usually willing to work with credit scores much lower than the mid-700s that conventional loans require.
Still, most lenders prefer applicants with a credit score of at least 620 for VA home loans. A 620 credit score is much lower than most lenders will accept without the VA guarantee to back the loan.
Don’t be discouraged if you have a lower credit score. Applications are evaluated on a case-by-case basis and there are other compensating factors considered. In some cases, a lender may be willing to work with you even if your credit score is below 620. Here are the other factors that VA lenders look at:
Debt to income ratio. If you have a high debt burden, then lenders are less willing to work with you. Generally, VA borrowers should have a debt to income ratio of less than 41%. If you have a low debt burden then your application will be stronger.
Free cash flow. The VA suggests to lenders that the monthly free cash flow of applicants is evaluated. Your free cash flow is based on your income minus all monthly obligations which might include childcare, taxes, insurance, and more.
Job history. The stability of your current job may come into play. If you’ve had a stable high paying job for over 2 years, that can help to strengthen your application.
Evidence of credit improvement. Even if you have poor credit, the lender may consider you an acceptable credit risk if you have been making payments on time for the past 12 months. Plus, if you are working on a Consumer Credit Counseling plan that can improve your application.
Past bankruptcies. If you have declared bankruptcy recently, that will negatively affect your application. Generally, the bankruptcy will prevent you from obtaining a VA loan for at least 1 to 2 years.
Most VA home loans carry a funding fee between 2 and 3.5% of the total loan. Typically, this fee is bundled into the loan, but some lenders may require it upfront. It can be an added expense on an already expensive home purchase process. Make sure to factor this in before you accept the terms of your loan.
VA Loan Choices
If you already have a home loan but are intrigued by the benefits of the VA home loan, don’t worry! You may have the opportunity to refinance an existing home loan into a new VA home loan.
If you are seeking a lower interest rate, then the Interest Rate Reduction Loan (IRRRL) might be a suitable option. Sometimes lenders refer to this loan option as a VA Streamline Refinance loan. The refinancing process through the VA is extremely straightforward. Plus, it is possible to complete the entire process without any out-of-pocket fees.
If you are seeking to take cash out of your home’s equity, then a cash-out refinance loan through the VA may be a practical option. You can use the cash to pay for home improvements and other obligations.
Both types of VA refinance options could help you reach your financial goals. Like the standard VA home loan, lenders may be willing to work with you even if you have less-than-perfect credit.
Other Options for Home Loans with Bad Credit
The VA home loan is not your only option if you have bad credit. Luckily, there are other programs on the market that you may be able to work with if you have bad credit. It is a good idea to check out all of your options. As you are looking, keep interest rates and down payment requirements in mind. You never know which will be the best option until you take a closer look.
FHA
With a minimum credit score requirement of 500, FHA loans are a suitable option for those with bad credit. If you have a credit score above 580, then you may even be able to qualify for a reduced down payment.
FHA loans are backed by the Federal Housing Administration. First-time homebuyers with bad credit are encouraged to use this program to secure their first home purchase. VA loans have more benefits associated with them, but FHA loans are still worthwhile.
USDA
USDA loans can also be a viable option if you have bad credit. The catch is that you must be willing to live in a rural area.
Typically, you’ll need to have a 640 credit score to have your application approved. However, it is not a hard cut-off. If you are planning to live in a rural area, then you might qualify for these U.S. Department of Agriculture-backed home loans.
Start Your Search
When you are ready to start looking through your mortgage options, it is important to get quotes from multiple lenders. Remember, even the smallest reduction in your interest rate can save you thousands of dollars over the course of your loan.
Here are a few places to get started:
LendingTree
LendingTree is not a lender, but the company can connect you to countless mortgage lenders across the country. They’ll match you to your options based on your credit score, debt-to-income ratio, and more.
It is a great resource to find several lender options within just a few minutes. If you want to compare many of your options easily, then LendingTree is a great place to start.
Find out more in our full review of LendingTree.
New American Funding
New American Funding may be the best option for veterans with poor credit. The company works with customers to individually review each loan application and the entire underwriting process.
It may take longer to close if you are working with a human underwriter. However, if you have a poor credit history, the reviewer may be able to stay flexible and push for an approved application.
Find out more about New American Funding in our full review.
Can’t find a lender?
If you cannot find a lender that is willing to work with you, then you may have to accept that your credit scores need improvement. Luckily, there are many ways that you can work to improve your credit score.
Start by checking over your credit report for mistakes. If you find an error, then make sure to have it removed from your credit report by disputing it with the credit bureaus. Next, make an effort to pay all of your bills on time. Timely payments can significantly boost your credit score.
Finally, start paying down your debts. Not only will this help improve your credit history, but also can bring some relief to your heavy load.
As your credit score starts to improve, your approval odds will continue to increase. When the time is right, apply again!
Bottom Line
Owning your home can be a milestone of American success. When you have a place to put down roots and grow into your community, it can be a wonderful feeling.
It is especially important for veterans to achieve this milestone. After their sacrifices made in service to our country, it’s remarkable to see them come home and build their lives. Take action today and start looking for a lender to fund your VA home loan.
Want to learn how to make money on maternity leave? Parental leave can be a time of joy and excitement with a new baby around, but it can also mean money stress for parents. While you spend time taking care of your newborn, you may also need to find ways to make extra money to…
Want to learn how to make money on maternity leave?
Parental leave can be a time of joy and excitement with a new baby around, but it can also mean money stress for parents. While you spend time taking care of your newborn, you may also need to find ways to make extra money to pay for your expenses.
I had a baby not too long ago (she is currently 1.5 years old – time flies!), and being able to work while taking care of her has been a lifesaver. So, I understand why you’re reading this article – because I also had to work with a newborn.
The good news is that there are plenty of ways to make extra money while still being present for those early months with your new baby.
Why You May Need Extra Money On Maternity Leave
Many families have to take unpaid maternity leave, and others may find their leave is simply not long enough and want to extend it longer (many families in the U.S. get 3 months or even much less time).
Not only that, but maternity leave is an expensive time with medical bills coming in, the cost of baby essentials (diapers aren’t free!), and everyday living costs.
Also, there might be unexpected costs that weren’t part of your maternity leave budget. Perhaps your baby needs special formula or medication, or maybe your car broke down. These unplanned costs can put a dent in your finances, especially when your income may already be reduced during your maternity leave.
Or, you might also be looking to create a financial cushion for the future such as by saving for vacations or even starting a college fund for your baby. So, finding ways to make extra money during your maternity leave can be very helpful.
Recommended reading:
How To Make Money On Maternity Leave
When trying to earn money during maternity leave, here are three things to think about:
Flexibility is key – Choose work that can adapt to unexpected baby-related needs. It should let you manage your time effectively.
Think about earnings and growth – Think about how much you can make, how quickly, and if there’s room to grow.
Pick something you like and fits your goals – Do you enjoy the work? You may want to find work that matches your interests, skills, and future plans.
Read further to learn how to make money on maternity leave.
Top ways to make money on maternity leave
There are 27 ways to earn extra money on maternity leave listed below. If you want to skip the list, here are some jobs that you may want to start learning more about first:
1. Start a blog
Blogging is my favorite way to make money from home, and this is what I do while also raising my daughter.
Being a blogger involves creating content for online readers. You have the freedom to write about a topic you’re interested in (such as finance, travel, lifestyle, or family,) and freedom to decide how you want to make money on your blog – there are many different ways available such as affiliate marketing or displaying ads.
Blogging is my main source of income, and it has completely changed my life. I have the freedom to travel whenever I want, set my schedule, be my own boss, and I can spend all day with my daughter.
Learn more at How To Start A Blog FREE Course.
2. Sell printables on Etsy
Creating and selling digital printables on Etsy is a great way to work on your own schedule and earn money.
Plus, it is fairly passive income as you only have to make one digital file for each printable, and you can sell it as many times as you like. Another positive is that you can start it very affordably because you only need a laptop and internet.
So, what is a printable? They are digital items that you can download and print at home, such as grocery shopping checklists, budget planners, wedding invitations, wall art, and more.
I recommend signing up for Free Workshop: How To Earn Money Selling Printables. This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
Recommended reading: How I Make Money Selling Printables On Etsy
Other than printables, there are many other things you can sell on Etsy as well, such as soap, candles, jewelry, and more.
3. Transcription work
Transcription jobs are flexible and can be done from home. By turning audio files into text, you can earn money when it’s most convenient for you.
An online transcriptionist listens to audio or video recordings and writes down exactly what is being said. This process is called transcribing. The goal is to do this without any errors in spelling, grammar, or punctuation.
If you want to learn how to make money on maternity leave, this can be a great option as you can do this at home.
I recommend watching Free Workshop: Is a Career in Transcription Right for You? to learn more.
Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly
4. Freelance writing
Freelance writers write articles, website content, social media posts, or even ebooks for clients.
I was a freelance writer for many years before switching to working full-time at writing here on Making Sense of Cents. It is a great career path where you can work from home and make your own schedule, such as writing while your baby is sleeping.
Recommended reading: 14 Places To Find Freelance Writing Jobs For Beginners
5. Virtual assistant
One of my first side hustles was working from home as a virtual assistant. This is a great way to work from home and have your own schedule.
Virtual assistants do many different kinds of tasks for clients, such as answering emails, scheduling appointments, managing websites, sending invoices, and so much more. It simply depends on what the person who is hiring you needs done.
If you want to become a virtual assistant, I recommend watching the free training 5 Steps To Become a Virtual Assistant.
Recommended reading: Best Ways To Find Virtual Assistant Jobs
6. Bookkeeper
If you’re good with numbers, you could sell bookkeeping services online or for small businesses, either on a freelance or part-time basis.
Bookkeepers are individuals responsible for managing financial things for businesses. This includes recording sales, tracking expenses, and generating financial reports.
If you want to become a bookkeeper, I recommend watching the free training How To Become A Bookkeeper.
Recommended reading: How To Find Online Bookkeeping Jobs
7. Freelance graphic design
With design skills, you can create logos, website designs, business cards, marketing materials, and more for clients and make money even during your maternity leave.
Recommended reading: How To Make Money As A Digital Designer
8. Data entry
Data entry clerks are like computer organizers. They enter, update, and double-check information in lists or tables. They type things like numbers and names to keep everything neat and organized.
Data entry jobs pay around $15 to $20 an hour, on average.
9. Create Canva templates
A Canva template is a pre-made design you can sell for things like social media graphics, ebooks, and presentations. It’s a handy starting point if a person is not great at designing from scratch.
Businesses, advertising professionals, social media influencers, and more all buy Canva templates all the time.
Canva templates have blank spaces where you can add your own words and pictures. You can also change colors and fonts to suit your preferences. They’re really useful for making things look good without spending a long time on it.
With Canva templates, you can sell a single design an unlimited amount of times. If you are looking for something passive, this is a great way to learn how to make money on maternity leave.
Recommended reading: How I Make $2,000+ Monthly Selling Canva Templates
10. Tutor
Tutoring students can be a great way to make money while on maternity leave, as there are many options to tutor from home. You may be able to create your own schedule and pick how much or how little you would like to work.
You can find online tutor jobs on websites such as Tutor.com. If you’d prefer to do in-person tutoring, you can call or email local tutoring companies in your area or share your tutoring services on social media or in local Facebook parent groups for your area.
Recommended reading: 11 Best Places To Find Online Tutoring Jobs (Make $100+ an hour)
11. Rent out your baby gear
Since you have a baby, you probably have a lot of baby gear.
Did you know that you can make extra money by renting it out?!
Renting out your baby gear on sites like BabyQuip can be a game changer when it comes to making extra income during maternity leave. This site allows you to share your baby items with families in need (such as a person on vacation), turning your baby gear into a source of income.
From strollers and cribs to high chairs and toys and more, you can list many different items on BabyQuip’s site.
Plus, you don’t need to have a lot of baby gear in order to get started – you can start with as little as a crib (which is the most commonly rented item).
According to BabyQuip, the average person can earn around $1,000 a month, and some are able to make over $10,000 per month.
12. Baby sleep consultant
As you already know, sleep is so important for a baby (and for the parents!).
You can earn a living while on maternity leave by becoming a sleep consultant. This is where you help other parents by helping them improve their baby’s sleep habits and routines.
Pediatric sleep consultants are experts in helping children sleep better and they make a big difference in families’ rest.
Read more at How To Become A Sleep Consultant And Make $10,000 Each Month.
13. Deliver groceries
If you want a flexible side gig while on maternity leave (and you also have someone to watch your child), then you may want to look into delivering groceries and food.
This can be a flexible side hustle because you can choose your hours and how much you’d like to work each week.
Services like Instacart need grocery shoppers, and the average shopper makes $15 to $20 an hour to deliver groceries. Drivers are paid per order, and you get to keep 100% of your tips. With Instacart, you would be physically going into grocery stores, picking out the food items yourself, checking out, and then delivering the groceries to your customer.
You can also learn more at Instacart Shopper Review: How much do Instacart Shoppers earn?
There are other food delivery gigs that you can do as well, such as GrubHub, Uber Eats, and DoorDash.
14. Airbnb host
If you have a separate space to rent in your home, such as an in-law’s quarters or an apartment above a garage, then you may be able to make money during your maternity leave by renting this space out.
You can learn more about this at What You Need To Know About Renting A Room In Your House.
15. Pet sit
If you are a pet lover, consider pet sitting for friends, family, or through an online service. It’s a great way to make some extra cash while you’re home and can be a fun addition to your day if you already have pets and babies at home.
If you’re interested in watching pets or dog walking, Rover is a platform where you can list your services and find clients.
16. Answer surveys
While answering online surveys and focus groups isn’t a way to make a ton of money, it can be a way to earn some extra money with whatever spare time you have from your newborn (such as when they are sleeping).
You simply share your opinions and answer simple questions, and in return, you can get cash or rewards like Amazon gift cards.
The survey companies I recommend include:
Survey Junkie
Swagbucks
Branded Surveys
InboxDollars
PrizeRebel
American Consumer Opinion
User Interviews – These are the highest paying surveys with the average being around $60.
Recommended reading: 18 Best Paid Survey Sites To Make $100+ Per Month
17. Affiliate marketing
If you want to learn how to make money while on maternity leave, one of my favorites is affiliate marketing.
I have been an affiliate marketer for years through this blog, and it is what allows me to stay at home with my daughter.
Affiliate marketing means making money by sharing a referral link on your website, YouTube channel, social media account, and more. When people use your referral link to purchase something, you then earn money.
For instance, consider sharing books from Amazon on your blog. You give your readers a link to a particular book and encourage people to buy it through your affiliate link. Companies like Amazon value affiliates who bring in high-quality traffic because they appreciate the extra support in helping them make more sales.
If you want to learn more about affiliate marketing, I recommend Affiliate Marketing Tips For Bloggers – Free eBook.
18. Proofread and edit
If you have an eye for detail, you may be able to sell your services as a proofreader or editor for different types of content.
Writers, business owners, and more hire proofreaders and editors to improve their work. There’s a big need for these types of positions, and you can find jobs through many different platforms.
If you want to become a proofreader, I recommend joining the free 76-minute workshop – Learn How to Become a Proofreader…and Start a Freelance Proofreading Business.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year)
19. In-home childcare
One great way to make money while on maternity leave is to provide childcare services for other families in your area, either part-time or full-time.
This is one of the best stay at home jobs for someone on maternity or paternity leave because it allows you to stay home with your kids while making money at the same time.
Depending on your location, you might need specific licenses. But you could potentially begin without the extra legal steps by working with just one or two children. Just be sure to verify with your local city or state regulations beforehand. It’s also very important to make sure that your home is safe for children and that you are CPR certified.
20. Sell baked goods
Do you like to cook? You may be able to make money at home by starting a home bakery for people and/or pets. You can sell homemade baked goods at local farmers’ markets or online too.
You can read more at How To Make Extra Money By Starting A Home Bakery. Here, you’ll learn about the equipment you need to start a home bakery, food laws, how much to price your baked goods at, and more.
If you are interested in baking goods for pets, then I recommend reading How I Earned Up to $4,000 Per Month Baking Dog Treats (With Zero Baking Experience!).
21. Stock photo photography
Selling stock photo photography can be a great way to learn how to make money on maternity leave. This is because you would be working for yourself and can take pictures in your free time.
Stock image sites are popular sites for photographers to sell their photos. These sites allow customers to purchase pictures for various uses like websites, TV shows, books, and social media.
One great thing about stock photo sites is that they can be a great form of passive income. You can take pictures, upload them, and earn money from an older photo for months or even years in the future.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
22. Social media manager
Social media managers handle businesses’ social media accounts with the goal of attracting new customers and helping a business grow.
They might share images or videos showcasing products or the company, take part in popular social media trends (like on TikTok) to increase visibility, and respond to common customer questions.
23. Book reviewer
Book reviewers read books and share what they think through paid reviews.
Yes, there are websites where you can receive payment (as well as a free book) for sharing your thoughts about books. Some companies that pay for book reviews are Online Book Club, Kirkus Reviews, and BookBrowse.
Recommended reading: 16 Best Ways To Get Paid To Read Books
24. Flea market flipper
A flipper buys items from places such as garage sales, Facebook Marketplace, or thrift stores and resells them online for a profit.
You may be able to earn extra money by flipping items for resale or possibly earn a full-time income! You can even be able to make this a more flexible gig, such as only working during nap times.
A helpful free training that I recommend is Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business In As Little As 14 Days.
25. Rent out storage space
If you have unused space in your home, you can sell it as storage for rent to people in your local area. This can be a garage, driveway, closet, basement, or even an attic.
You can use a site called Neighbor to list any extra space you have available for rent and have the potential to make up to $15,000 per year.
You can sign up at Neighbor for free here and list your space.
You can also learn more about Neighbor at Neighbor Review: Make Money Renting Your Storage Space.
26. Sell an online course
Selling an online course is a great option for stay-at-home moms and dads who want to have control over their schedule and earn a somewhat passive income.
Some topics that you can teach in a course are:
Fitness and exercise programs
Time management and productivity hacks
Parenting
Arts and crafts
Languages
Programming
Personal finance
Traveling
Photography and photo editing
Plants and gardening
Baking and pastry making
And so much more!
You can sell a course in many different ways, such as through Udemy or Teachable.
27. Rent out your unused RV
Instead of letting your RV sit in your driveway unused, you can list it on RVshare and make some semi-passive income. My sister has rented a few RVs from this site, and she has had a great experience each time!
Renting out an RV can earn you anywhere from a couple hundred dollars to a couple thousand dollars each month.
How To Manage Your Money On Maternity Leave
Managing your money while on maternity leave can be tough at times. If you are looking for more things that you can do other than only learning how to make money on maternity leave, you do have some options.
Below, I will be talking about how to cut your budget so that you can save money, as well as your rights and benefits on maternity leave.
Cut your budget
During parental leave, cutting your budget can be a great way to manage your finances while adapting to life with a newborn.
Here are a few ideas to help reduce your expenses during this time:
Evaluate your current spending habits to determine where you can make adjustments – This might involve tracking your spending for a month or looking back at bank statements. You’ll likely find areas where you can save, such as dining out, entertainment, or shopping.
Cut back on subscriptions and memberships – Assess each subscription and determine the must-haves and those you can temporarily suspend or cancel.
Batch cook freezer meals before the baby comes – This is where you make a bunch of meals before the baby is born and freeze them. This can give you an easy meal to pop in the oven before the baby comes.
Cook at home – Getting food delivered can be convenient, but it’s usually more expensive than making your meals at home. Plus, cooking allows you to control ingredients and portion sizes.
Buy in bulk – When possible, get the items you use most frequently in bulk. Items like diapers, baby wipes, and nonperishable foods have a longer shelf life, and buying them in larger quantities can offer considerable savings.
Get secondhand and borrowed items – Instead of buying new baby gear and clothing, try borrowing from friends or family, or shopping at thrift stores like Once Upon A Child. Babies grow quickly, and they often outgrow items before they wear out.
Negotiate medical costs – If you have medical bills, you can try to negotiate them. Medical providers may be open to setting up payment plans or giving discounts for paying up front.
Short-term disability insurance
You may want to look into short-term disability insurance options before your maternity leave starts to help cover lost wages during your time off.
In some cases, your employer may provide this benefit, or you can purchase a policy separately. These policies typically cover around 60% to 80% of your regular income and may have a waiting period before benefits start (so, you will need to have the policy before you get pregnant).
Government assistance programs
There are government assistance programs that could help you during your maternity leave. For example, the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) has nutrition education, breastfeeding support, and healthy food benefits for eligible families.
You can also check to see if you qualify for financial assistance from your state or other programs related to maternity and family support.
Find charities for help
During maternity leave, managing money might be tricky, but there are places that can help, like charities and groups that want to support new parents. You can find them online or at local community centers. Libraries, online parent groups, and special organizations are also great places to get help.
Remember, asking for help is a strong and smart thing to do, and there are lots of resources out there to help parents during this special time.
I recommend reading:
Know your state and federal law rights
I recommend learning about relevant state and federal laws governing maternity and family leave. The Family and Medical Leave Act (FMLA) allows eligible employees to take up to 12 weeks of unpaid, job-protected leave for the birth or adoption of a child. The law also says that you cannot be replaced or overlooked for pay raises and other promotions during your leave.
However, paid maternity leave policies differ by state and company. Some employers may offer a certain amount of paid leave, while others may offer none. Make sure to review your state’s laws and your employer’s policies to understand your rights during your maternity leave.
By knowing your rights, insurance options, and the benefits available to you, you can better plan your financial strategy during your maternity leave.
Frequently Asked Questions About How To Make Money on Maternity Leave
Below are commonly asked questions about how to make money while on maternity leave.
Can I make money while on maternity leave? Are you allowed to make money while on maternity leave?
If you are in the U.S., then yes, you should be able to make money on maternity leave. If you are unsure, check your employment contract or talk to your employer’s human resources department to be positive.
Before starting any side income streams, if you’re worried about whether or not you are allowed to make extra money while on maternity leave, then double-check your company’s policies and your leave agreement to make sure that earning money during your time off is permissible. Some employers may have restrictions on outside work or income during your leave.
How do I survive financially during maternity leave?
To survive financially during your maternity leave, you may need to find ways to cut your budget as well as learn how to make money on maternity leave.
Does unpaid maternity leave qualify for unemployment? Can you collect unemployment after having a baby?
This depends on why you are no longer working at your job. If you simply stopped working because of your pregnancy, then you may not be able to receive unemployment pay.
However, if you are pregnant or recently had a baby and were fired or laid off, then you may qualify for unemployment pay.
What are some ways to make money while on maternity leave? How can I make money while taking care of my baby?
There are many ways to make money while on parental leave, such as by working online, selling photography, renting out storage space or an RV, and more.
How can new mothers use their time efficiently while working from home?
Time management is important for new moms working from home. I recommend creating a routine, setting realistic goals (if you are working and watching your baby, it won’t always go perfectly), and designating work hours during the baby’s nap time to help manage work alongside childcare responsibilities. It’s also important to take regular breaks to avoid burnout and feeling stressed. Working while also taking care of a child can be very tiring.
How to Make Money on Maternity Leave – Summary
Federal law, specifically the Family and Medical Leave Act (FMLA), does not require employers to give paid maternity leave. Eligible employees are allowed to take up to 12 weeks of unpaid leave, and because of this, you might be worried about money during your maternity leave or feel like you can’t afford to take the full 12 weeks.
There are many ways to make money while on maternity leave, which may help you to pay your bills without sacrificing quality time with your new baby.
For example, you can sell handmade items or even sell consulting services. Remote jobs and work-from-home jobs are also an option (and my favorite), allowing you to use skills like graphic design or writing to make money.
Remember, it is possible to make money while on maternity leave. Yes, it will most likely be very hard at times and even feel impossible. But, you do have many options to try and make it work.
Do you want to learn how to make money on maternity leave?
The full name of this program is USDA Rural Housing Guaranteed Loan Program. We’ll simplify its name here to the USDA Loan. If you prefer, our office calls it the Meat Loan.
This is the first of two articles. Article number one introduces the program’s benefits. Article two covers the qualifying aspect, which is easier than most consumers anticipate. We’ll need a program to compare to USDA, so we’ll use its closest relative, the FHA loan program.
Let’s get to the first USDA loan benefit:
1. No down payment required
That’s right, USDA loans require no down payment and have a standard 30-year fixed term.
2. Nominal mortgage insurance
In 18+ years of lending I’ve encountered zero home buyers who want or like mortgage insurance. Compared to similar down payment options across other programs, USDA loans require lowest-in-class mortgage insurance. Government loans split their mortgage insurance (MI) between an upfront fee, financed into the loan amount, and the MI that contributes to the payment amount. The MI that contributes to one’s payment is known by different names, but we’ll call it the mortgage insurance factor or MI factor.
USDA’s MI factor, also called its Guarantee Fee, is 0.35%. This program requires 0% down.
USDA’s upfront fee is 1.00% or 0.01 times the loan amount, financed into the loan.
FHA’s MI factor, also called its Mortgage Insurance Premium is 0.55%. This program requires at least 3.5% down.
The upfront government fee for FHA is 1.75%, also financed into the loan amount.
When compared with FHA, the math above illustrates that the USDA loan saves 0.75% off the top of your closing costs. That’s a decent chunk of change for enhancing your appliances or interior decorating budget.
As of the writing of this article, rates are still volatile, and we’ll just use 7.50% for illustrating this comparison. When in doubt, ask your lender about your current rate scenario.
We’ll omit the unknown taxes and insurance from the payment, as their addition to payment is the same. Let’s compare the principal, interest & mortgage insurance (PIMI) payment between FHA (3.5% down) and USDA (0% down).
You read that correctly. The combined savings from 0.75% in closing costs and cheaper mortgage insurance brings this 0% ($0) USDA down payment within ≈$12 per month of its competing 3.5% ($9,500) FHA down payment.
3. Max loan amount calculation
Besides requiring zero down and its lower mortgage insurance, there is one more facet that makes the USDA program shine: its max loan amount calculation. Other Agency (Conventional or Government) loan programs base the max loan amount on the lesser of the purchase price versus appraised value.
USDA loans are unique as they base the max loan amount solely on the property’s appraised value. Supported by an appraised value that accommodates the purchase price + settlement costs (closing costs + prepaid expenses), there is truly no money required at closing. The program’s ability to finance settlement costs is unique to the USDA loan program. Ensure that your lender does not overlay guidelines that supersede any of the program’s benefits.
4. Qualifying
USDA’s program generally follows FHA’s guidelines, but the agency’s goal is to support rural housing. In doing so, they have two distinct qualifiers:
a. Property Eligibility
Let’s look at an example: My hometown of Madison, Wisconsin, is considered ineligible for USDA financing. That ineligibility spans through the Madison-metro area. Beyond metro areas is generally fair game, until you get to other metro areas, such as Milwaukee
These ineligible areas are based on recent census data and then polished with criteria that USDA keeps to themselves. Keep in mind that USDA definition of “rural” is relative. In the Cheese State “rural” is different than “rural” in New Jersey, as population densities are far different.
Try zooming to various areas on USDA’s Property Eligibility map to familiarize yourself with its interface. Madison is located at mid-bottom of WI, if you want to check out my example. Prospective FHA home buyers are often surprised by the areas that report as eligible for the USDA program.
Note: Beware of external sites that claim USDA eligibility mapping. These sites simply scrape USDA’s data, so they lag behind. Stick to the .gov source.
b. Household Income Caps
This program’s guidelines distinguishes between two separate tiers of household income caps: 1-4 and 5+ person households. Married with 3 dependents? You’re in the 5+ (higher income cap) tier.
Even when income calculations exceed the USDA caps, know that there are deductions to help your scenario fit.
Subtracting documented childcare expenses is the most common deduction for lowering your household income calculation. There is a handy USDA calculator that accounts for common deductions.
Your USDA lender can help define and calculate deductions so help them earn their paycheck.
Note: USDA does not maintain a centralized database with approved lenders. If you think this program could be a good fit for your scenario, just ask your current preferred lender about it.
This information isn’t all-encompassing, so spend some time speaking with a lender who’s fluent in USDA guidelines. When home buyers’ scenarios fit into this program, financing homeownership gets a little easier.
Imagine your budget allows you to seamlessly fit your student loan repayments into your day-to-day life. Here are a few tips to redo your budget.
Determine your financial goals
How can you budget if you don’t know where you’re going? Setting financial goals can help give your money a purpose. Consider short- and long-term goals, such as paying off loans in a specific period of time, or saving up for a specific purchase or life event.
Calculate your income
How much do you make after taxes? All you have to do is look at a paystub and any other income, such as from a side hustle. You might have investments that pay you dividends or other forms of income. Whatever you have, add it all up!
Review your expenses
How much money flows out of your checking account every month? Look at loan payments, insurance costs, mortgage payments or rent, utilities, food, childcare, healthcare, IRA deductions, and everything else that belongs in the category of expenses.
Make adjustments
Consider where you can make adjustments based on your income and expenses so your student loans nestle right into your budget.
What percent should go toward student loans? Keep the 50/30/20 budgeting rule in mind:
• 50% toward needs
• 30% toward wants and discretionary expenses
• 20% toward savings and paying off debt
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.
Are you looking for the best side jobs for teachers? Teaching is a great career choice and teachers are very much needed in the world. Unfortunately, though, it is not the highest-paying job that exists. Due to that, you may be looking to find ways to make extra money as a teacher. Side hustles for…
Are you looking for the best side jobs for teachers?
Teaching is a great career choice and teachers are very much needed in the world. Unfortunately, though, it is not the highest-paying job that exists. Due to that, you may be looking to find ways to make extra money as a teacher.
Side hustles for teachers are great because they can help you make extra income, pay off debt, save for a vacation, and more.
Teachers have many useful skills, which make them a great fit for many different side hustles alongside their main teaching job.
Quick Summary on Side Jobs For Teachers:
Online tutoring and selling lesson plans are popular side jobs for teachers that use their existing skills
Selling crafts, selling printables, or teaching online courses can be a nice creative outlet
Short-term and seasonal side gigs like coaching sports or teaching summer school may be better for your schedule than year-round gigs
Best Side Jobs For Teachers
There are 36 side jobs for teachers listed below. If you want to skip the list, here are some jobs that you may want to start learning more about first:
Below are 36 side hustles for teachers.
1. Sell educational printables
Selling educational printables can be a great way for teachers to make extra income and it is great for anyone who wants to learn how to make passive income as a teacher.
An educational printable is a teaching resource, either digital or physical, that educators create to help with learning.
Other teachers buy these for their classes and so do parents.
Educational printables are things like math problems, vocabulary cards, and science experiments. They work for different grades and learning goals, making it an easy way to add to regular teaching or homeschooling. You can share these resources online or print them for in-person classes, making them a helpful tool for improving education.You can learn more at How I Make $400,000 Per Year Selling Educational Printables.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
2. Tutor online or in person
Tutoring services or helping kids get ready for standardized tests either online or in person can be a great side hustle for teachers.
This option can be a natural fit, as you can use your teaching skills to tutor students.
To start, check out different online tutoring websites like Tutor.com or you can also do in-person tutoring sessions. For in-person tutoring sessions, you can contact local tutoring companies or promote your services on social media or in local Facebook parent groups for your area.
3. Sell your lesson plans
As a teacher, you already make lesson plans for your classes. You can actually sell your lesson plans, earn extra money, and help other teachers.
The most popular platform for this kind of side job is Teachers Pay Teachers (TPT). Here, you can upload your lesson plans, activities, assessments, and other educational resources. Each time someone purchases one of your items, you’ll earn some income.
Lesson plans need to be well-organized, easy to understand, and tailored to specific grade levels and subjects (such as fifth grade math). You should include clear objectives and step-by-step instructions to make your lesson plans more appealing to potential buyers.
4. Coach a school sport or other after-school program
Coaching a school sport is something that you can do within your own school district as many schools are in need of help with their sports teams.
Some sports and after-school programs that can be a teacher’s side hustle include soccer, basketball, volleyball, and track-and-field, as well as clubs such as yearbook, chess, choir, and more.
5. Start a dog bakery
Starting a dog bakery can be a fun side job for teachers who love both dogs and baking.
You can make an extra $500 to $1,000, or even more, each month by making treats for dogs. You can make dog treats like cupcakes, cookies, cakes, and more.
You can learn more at How I Make $4,000 Per Month Baking Dog Treats (With Zero Baking Experience!).
6. Sell crafts on Etsy
Selling crafts on Etsy can be a great way to make extra money by being creative.
Etsy is a website where people from all over can buy and sell handmade and digital products.
Some ideas for products you can create and sell on Etsy that are teaching-related include:
Classroom decor items
Educational games and activities
Customized planner pages and stickers
Flashcards and study materials
Of course, you can create things that aren’t related to teaching at all, such as knitwear, jewelry, and more.
7. Sell on Teachers Pay Teachers
Teachers Pay Teachers (TPT) is a site specifically for educators to buy and sell educational materials, and this is a popular teacher side hustle. If you’ve developed lesson plans, worksheets, or other teaching tools for your classroom, you can share and earn from them on TPT.
I know I talked about selling education printables and lesson plans above, but I want to talk more about Teachers Pay Teachers in its own section because it is such a popular teacher side hustle.
You can sell:
Lesson plans and unit studies
Worksheets and printable activities
PowerPoint presentations and interactive notebooks
Posters, charts, and visual aids
For example, I looked on Teachers Pay Teachers and searched for third grade lesson plans. There, I found over 49,000 results such as math lesson plans about rounding, substitute teacher plans for third graders, reading comprehension lesson plans, and more. Here’s an example of one that you can look at.
The average teacher on Teachers Pay Teachers can make around $300 to $500 extra, but there are some teachers that make hundreds of thousands of dollars extra each year.
8. Babysit
As a teacher, you may find that babysitting is an easy side job to pick up, and, depending on where you live, you may be able to earn around $15 to $25 an hour. Parents love hiring teachers as babysitters because they have so much experience with children.
While babysitting, you’ll find that your existing skills from teaching make a difference in providing the best care possible.
9. Teach English as a second language online
Teaching English as a second language (ESL) online is a popular side job for teachers. As an online ESL teacher, you can help students learn English and work from home.
Most jobs require you to be a fluent English speaker with a bachelor’s degree.
10. Teach summer school
One of the obvious ways for teachers to make extra money in the summer is to teach summer school.
It’s a great way to make use of your teaching skills while earning extra income. Plus, summer school takes place during summer break, so it should fit well with your schedule of already being off from school.
11. Summer camp counselor
Another great option during the summer months is to become a summer camp counselor.
As a counselor, you’ll supervise children in activities such as sports, arts, and crafts. Camps are always looking for instructors with teaching experience, making this a good side job for educators.
12. Grade papers
Grading papers as a side job may appeal to you if you’re looking for a more flexible, at-home option.
Companies such as Measurement Inc. hire teachers to grade student work, such as essays and test answers.
They are hiring evaluators to score in the subjects of English, mathematics, science, and more and pay starts at $15 per hour.
13. Work at a restaurant
If you’re looking for something completely different from teaching, you could take a part-time job at a restaurant.
Working in restaurants can be a good fit for teachers because they often offer flexible hours that can align with your teaching schedule. You can choose jobs like being a server, host, and more.
14. Proofread
As a teacher, you are probably already a great proofreader and are able to spot mistakes easily. With these skills, proofreading can be a great side job. By proofreading, you can help authors, website owners, students, and more improve their writing while earning some extra income.
Even the most skilled writers can make mistakes in grammar, punctuation, and spelling. That’s why hiring a proofreader can be very helpful for pretty much anyone and everyone.
If you want to find online proofreading jobs, I recommend watching this free 76-minute workshop all about how to get started proofreading.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners (Earn $40,000+ A Year).
15. Blog
Blogging can be a fun way for you, as a teacher, to make extra money from home. Many blogs are run by teachers, and I completely get why – you can blog in your spare time and you don’t have to stick to any formal schedule.
To start your own blog, first, choose a topic that you’re interested in writing about, maybe something related to your teaching field or a hobby you enjoy.
You can make money from your blog in ways such as:
Affiliate marketing – Share links to products or services related to the topic you are writing about, and earn a commission for sales generated from your referral links.
Advertising – Include display ads or sponsored posts on your blog.
Courses and ebooks – You can create courses or ebooks related to your area of expertise, and sell them through your blog.
Since I began Making Sense of Cents, I’ve made more than $5,000,000 from my blog, and it all started as a side job.
Learn more at How To Start A Blog FREE Course.
Similar to blogging, a teacher could also start a YouTube channel, a TikTok, and more.
16. Freelance write
If you are looking for side jobs for teachers from home, then becoming a freelance writer can be a great choice.
Freelance writers write content for blogs, websites, magazines, newspapers, advertising companies, and so much more.
You can find different writing jobs on platforms like Upwork and Fiverr, or even find clients on your own, such as by reaching out to websites that you are interested in writing for.
Recommended reading: 14 Places To Find Freelance Writing Jobs – (Start With No Experience!)
17. Transcribe
An online transcriptionist’s job is to listen to video or audio files and then type out everything that they are hearing. There are many different types of transcriptionists, such as legal, general, and medical transcriptionists.
This job requires strong typing and listening skills, and you can work from home on your own schedule.
Transcriptionists earn around $15 to $30 per hour on average.
I recommend watching FREE Workshop: Is a Career in Transcription Right for You? You’ll learn how to get started as a transcriptionist, how you can find transcription work, and more.
Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly
18. Flip used items for resale
Flea market flippers find underpriced items at flea markets, yard sales, and thrift stores, then resell them for a profit. This job requires a good eye for finding valuable items that you believe can be sold for a higher price.
As a teacher, you could find and sell items in the evening, on the weekends, over holiday breaks, and in the summer. You get to make your own schedule, and it can be however many or few hours as you want.
Some items that you can resell include:
Vintage furniture
Collectibles, such as toys, coins, stamps, books, and more
Sporting equipment
Clothing
Electronics
I recommend signing up for a helpful webinar on this topic, How To Turn Your Passion For Visiting Thrift Stores, Yard Sales & Flea Markets Into A Profitable Reselling Business.
19. Bookkeep
Bookkeepers are people who keep track of all the money-related things for businesses. Bookkeepers do tasks like:
Tracking income
Organizing expenses
Making financial reports
This is typically a flexible job that you can do from home on your own time.
You can join the free workshop that focuses on finding virtual bookkeeping jobs and how to begin your own freelance bookkeeping business by signing up for free here.
Recommended reading: How To Find Online Bookkeeping Jobs
20. Sell Canva templates
Creating and selling Canva templates online allows you to work from home in your free time.
A Canva template is like a pre-designed layout that you can use for creating things like social media graphics, Pinterest pins, ebooks, or presentations. It is a helpful starting point if you’re not very skilled at designing from scratch. Business owners, marketing professionals, nonprofit organizations, educators, event planners, restaurants, and more buy templates all the time.
Canva templates come with blank spaces where buyers can add their own words or pictures, adjust colors and fonts, and more. They’re useful for people who want their graphics to look high quality without spending a lot of time in the process (or perhaps they don’t know how to do it so templates help them a lot!).
Making and selling Canva templates can be a great way to earn extra money as you only need to create them once, and then you can sell them as many times as you’d like.
Recommended reading: How I Make $2,000+ Monthly Selling Canva Templates
21. Rover (walk and watch pets)
Rover is a website that links pet owners with pet sitters and dog walkers. You can do this job on the weekends throughout the year, or simply only open up your schedule during the summer months. It is up to you.
Getting started is easy on Rover – you set up a profile that talks about your experience with pets and the services you can provide, like dog walking, pet sitting, and house sitting.
Then, you will receive requests from customers and talk about pricing. Rover takes care of processing payments, and you’ll receive payments directly into your account.
You can sign up for Rover here.
22. Care.com
Another platform for finding pet and house sitting side jobs is Care.com. Care.com is not limited to pet care and includes other caregiving services, such as childcare and senior care.
You can browse available jobs in your area and apply to those that match your skills and interests. Care.com also allows clients to contact you directly for your services after you’ve created a profile. Once a job is completed, you’ll receive payment through the site.
23. Be a virtual assistant
A virtual assistant provides administrative, technical, or creative support to clients from home.
Some of the tasks you might do as a virtual assistant include managing schedules, responding to emails, making travel arrangements, handling social media accounts, and even writing articles or creating presentations.
If you want to become a virtual assistant, I recommend taking the free workshop called 5 Steps To Become a Virtual Assistant.
Recommended reading: Best Ways To Find Virtual Assistant Jobs
24. Be a food photographer
Food photography can be a fun and creative way to earn extra income during your free time. Food photographers do just that – take pictures of food.
Whether you’re working directly for restaurants, magazines, or on a freelance basis, this job allows you to use your skills and interests to create beautiful images.
You can learn more at How To Become a Food Blog Photographer And Earn Over $50,000 Each Year.
25. House sit
As a teacher, you might be looking for ways to make some extra money during breaks or weekends. One option to consider is house sitting, and this is when you watch someone’s home (such as watering their plants and collecting mail) and sometimes take care of pets while their owners are away. People also hire house sitters so that their homes aren’t sitting empty because a visible presence can deter potential thefts.
To get started in house sitting, you can join house-sitting websites to find opportunities in your area, or ask friends and family for referrals (you might want to start by house sitting for people you know and then ask for references that you can use to broaden your job search).
26. Rent out an unused room in your home
If you have a room in your home that you are not using, then you may be able to rent it to someone on either a short-term (such as by becoming an Airbnb host) or long-term basis (getting a full-time roommate).
I have rented out rooms many times in the past, and it was a great way to make some extra income for space that I wasn’t using.
You can learn more at What You Need To Know About Renting A Room In Your House.
27. Rent your garage space
If you have empty storage space, such as a garage, driveway, closet, basement, or attic, you may be able to rent it out and make extra money. This can be a lucrative side hustle where you don’t have to use up much of your spare time.
You can use Neighbor to list your extra space for rent and make up to $15,000 per year by doing so. With Neighbor, you can rent out your garage, driveway, basement, or even a closet.
You can sign up at Neighbor for free here and list your space.
You can also learn more about Neighbor at Neighbor Review: Make Money Renting Your Storage Space.
28. Rent out a photo booth
Renting a photo booth can be a fun side job for teachers.
To get started, you will need to buy a photo booth as well as things like backdrops and props for people to hold in the picture (such as hats, signs, fun things to hold, etc.).
On average, photo booth rentals can range from $500 to $1,000 per event, and in some cases, even more for specialized events or packages with additional features.
I have personally rented a photo booth for an event in the past, and it was a lot of fun!
29. Online surveys and focus groups
Taking online surveys and answering questions for focus groups is very part-time and can be a way to side hustle for teachers.
You share your thoughts plus answer questions and can earn cash or free gift cards.
The survey companies I recommend signing up for are:
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
Pinecone Research
PrizeRebel
User Interviews – These are the highest paying surveys with the average being around $60.
Recommended reading: 18 Best Paid Survey Sites To Make $100+ Per Month
30. Voice over act
A voice-over actor is the person whose voice you hear but don’t see in YouTube videos, radio ads, educational videos, and more.
Different companies need a wide variety of voices, and that’s where you come in.
Recommended reading: How To Become A Voice Over Actor And Work From Anywhere
31. Mystery shop
I was a secret shopper in the past, and there were often mystery shops that gave me $100 to put toward a free dinner. I always looked forward to these, as I was living paycheck to paycheck, and I used these restaurant mystery shops to reward myself every now and then.
There were other mystery shops that paid me actual money, and some paid me in free items, such as makeup, movie theater tickets, and car oil changes.
Companies hire mystery shoppers to get an understanding of their customer’s experience. Companies want to know a real product opinion, how the customer felt they were treated at their business, how phone calls were handled, and more.
Basically, mystery shopping is a way to anonymously test the entire shopping experience.
You can learn more at How To Become A Mystery Shopper.
32. Fitness trainer
Fitness trainers help people reach their health goals through customized exercise plans and nutrition advice. This is typically a job where you can choose your schedule, so you can choose to work hours outside of your teaching job, such as in the evenings and on the weekends.
I actually know a few teachers who are fitness trainers on the side, so it must be a good fit!
Another positive is that you can even choose between in-person and online coaching. Online coaching can mean that you can work remotely, making it a more flexible side job for teachers looking to earn extra income.
33. Find random gigs on Craigslist
As a teacher looking for side jobs, you can look for random gigs on Craigslist to earn some extra income. To begin your search, simply go to the Craigslist website and select your city from the home page.
Here are some jobs I found through a quick search:
Cleaning a house
Help assembling furniture
Taking down a shed in a backyard
Garage cleanup
Mover
Handyman
Movie extra
Sign holder
You can even post your own services on Craigslist if you have a skill you’d like to share with others, such as giving music lessons or tutoring.
34. Deliver groceries with Instacart
Grocery delivery services are popular because there are more and more people who want someone to do their grocery shopping for them.
Services like Instacart need personal grocery shoppers, and the average shopper makes $15 to $20 an hour to deliver groceries. Drivers are paid per order, and you get to keep 100% of your tips. You also get to choose your schedule, so a teacher could choose to work in the evenings or on weekends. Or, you could choose to only deliver groceries during the summer.
You can click here to sign up to be an Instacart Shopper.
You can also learn more at Instacart Shopper Review: How much do Instacart Shoppers earn?
There are many other gig ideas that you can try out too, such as Uber Eats and DoorDash.
35. Real estate agent
Some teachers are real estate agents on the side of their full-time job as a teacher. This is because you can list and sell homes on your weekends, during breaks, at night, and over the summer.
Selling homes can be more difficult, though, as your clients may want your full attention during the day occasionally and you would be busy teaching, so this is something to think about.
36. Driver’s ed teacher
A common side hustle for teachers is teaching driving lessons to teenagers and adults. As a teacher, you may be able to check if the high school near you is in need of a teacher for this subject. Or, you can reach out to a local driving school to see if they are hiring.
Driving instructors make around $20 an hour more or less, depending on where you live.
Frequently Asked Questions
Below are answers to common questions about side hustles for teachers.
How can I make money on the side while teaching?
Some good side jobs for teachers include tutoring, freelancing, transcribing, blogging, selling lesson plans, and more.
What can teachers do to make extra money?
Teachers can do a lot of things to make extra money, such as jobs like tutoring, freelance writing, blogging, or creating educational printables.
What is a second career for teachers?
Second careers for teachers can include jobs such as educational consultants, curriculum developers, or even working in corporate training and development.
Do most teachers have 2 jobs?
Many teachers have two jobs. This is for many reasons, such as the typically low pay of a teacher as well as teachers wanting to make money while they are off in the summer.
How to make extra money on Teachers Pay Teachers?
Teachers can make extra money on Teachers Pay Teachers by selling lesson plans and printables.
How can teachers make money in the summer?
Teachers can make money when they’re off in the summer by teaching summer school, helping students with test prep, babysitting, selling lesson plans, working at a restaurant, working as a real estate agent, and more.
What to do after quitting teaching? How do you pivot out of teaching?
Quitting teaching and moving on to something else will take a few steps, and you can begin by thinking about your skills and interests. Then, start exploring different job options and connect with people in the field you’re interested in, attend industry events, and consider getting any certifications that you may need.
How can teachers earn extra income through online tutoring?
Sites like Tutor.com look for teachers to tutor students remotely, and you can even offer your services through social media.
How can a teacher make six figures by utilizing their skills?
While it’s not always easy for teachers to earn a six-figure salary, it is possible if you find ways to make extra income or by starting a business of your own.
What opportunities do music educators have for side income?
Side income ideas for music educators can include jobs like giving private music lessons or working as a weekend or evening instructor at a music school. Music educators can also sell lesson plans (I found some examples on Teachers Pay Teachers here).
What are some good side jobs for teachers?
I hope you enjoyed this article on the best side jobs for teachers.
Whether you are looking for side jobs for teachers from home, side jobs for teachers in the summer, or if you want to learn how to make passive income as a teacher, there are many ways to make extra money as a teacher.
Some of the best side hustles for teachers include:
Sell educational printables
Tutor online or in person
Sell your lesson plans
Coach a school sport
Start a dog treat bakery
Sell crafts on Etsy
Sell on Teachers Pay Teachers
Babysit
Teach English as a second language online
Teach summer school
Summer camp counselor
Grade papers
Work at a restaurant
Proofread
Blog
Freelance write
Transcribe
Flip used items for resale
Bookkeep
Sell Canva templates
Rover (walk and watch pets)
Virtual assistant
Food photographer
House sit
Rent out an unused room in your home
Rent your garage space
Rent a photo booth
Online surveys and focus groups
Voice over act
Mystery shop
Fitness trainer
Find random gigs on Craigslist
Deliver groceries
Real estate agent
Driver’s ed instructor
What do you think are the best ways for teachers to make extra money?
While some states offset the high cost of college with substantial financial aid programs, Rhode Island’s offerings are much more limited. In fact, it has one of the lowest rates of state grant aid per full-time undergraduate student; Rhode Island provides about $170 in funding per student, the seventh-lowest amount in the country, according to a 2022 College Board report.
To put that in perspective, consider that South Carolina — the state with the highest level of state grant aid — provided about $2,590 per student.
Though limited, there are still some state aid programs. Whether you have your heart set on attending Brown University, The University of Rhode Island or the Rhode Island School of Design, here are the available financial aid programs specific to Rhode Island.
The cost of education in Rhode Island
There are 13 public and private non-profit colleges and universities in Rhode Island.
Higher education in Rhode Island tends to be much more expensive than it is in other states. Even public universities and community colleges, which are typically lower-cost options, are costly.
Based on the average rates of tuition, fees and room and board for the 2020-2021 academic year, here’s how much you can expect to pay, according to data from the National Center for Education Statistics:
Public four-year school (in-state): $26,946 per year, about 26% more than the national average of $21,337.
Private four-year school: $61,692 per year, about 33% higher than the national average of $46,313.
Community college (in-state): $4,806 per year, about 37% higher than the national average of $3,501. (Community college costs don’t include room and board.)
Several factors are behind the high college costs. In addition to Rhode Island’s high cost of living and limited financial aid, it’s also home to several well-known private universities with hefty price tags that drive up average tuition rates. For example, a student’s estimated total cost for the 2023-2024 academic year at the Rhode Island School of Design is $81,810 — nearly double the national average for private schools.
Financial aid options in Rhode Island
Although public schools are more expensive in Rhode Island than in other states, attending a public university is still cheaper than private school — but only if you qualify for in-state tuition.
You qualify for in-state tuition if you meet one of the following criteria:
You attended an approved Rhode Island high school for at least three years.
You graduated from an approved Rhode Island high school.
You lived in the state for at least 12 months prior to enrollment.
Unlike some states, Rhode Island extends residency to undocumented students, including those with Deferred Action for Childhood Arrivals (DACA) status. As a result, undocumented and DACA students are eligible for in-state tuition and state aid in Rhode Island if they meet the other residency requirements.
Students may also have trouble finding funding opportunities in Rhode Island because its aid programs aren’t listed in one central location. Programs are usually provided through partnerships with other organizations, so they’re often listed on non-government websites that can be difficult to find if you don’t already know about them.
Although Rhode Island’s options are more limited than those of other states, you may be able to use one or more of the following programs to finance your education:
529 plans.
In-state tuition.
Scholarships.
Tuition waivers.
Student loans.
Other aid programs.
Student loan repayment assistance.
529 plans
Rhode Island doesn’t have a prepaid tuition plan, but families can use a CollegeBound Saver 529 account to save and invest for a child’s future education. The money can grow tax-deferred in a CollegeBound Saver account, and the withdrawals are tax-free as long as they’re used for qualifying education expenses. Beneficiaries may use the funds at any U.S.-accredited college; they aren’t limited to Rhode Island schools.
Rhode Island has a higher-than-usual maximum contribution limit; families can contribute to an account until its total market value reaches $520,000 per beneficiary.
The CollegeBound Saver 529 has two other benefits:
State income tax deduction: Rhode Island taxpayers who contribute to this account may qualify for a state income tax deduction. They can deduct up to $500 in contributions individually, or $1,000 if they are married and file a joint return.
Starter Bonus: If you have a newborn or recently adopted a child, Rhode Island will contribute $100 if you open a new CollegeBound Saver account and deposit at least $100.
In-state tuition
The average total cost of attendance for in-state students at Rhode Island public schools is less than half the average cost of attending a private school.
However, students who want to attend college outside of Rhode Island may qualify for the New England Board of Higher Education’s Tuition Break program. Students who are residents of member states — Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont — can enroll in an eligible program at a public community college or university in another participating state at a reduced rate.
According to NEBHE , the average full-time student saves $8,600 per year with Tuition Break. Exact savings depend on the program and state. You can view the eligible programs and schools on the NEBHE website.
Rhode Island scholarships
Rhode Island offers just two state scholarship programs, both of which are awarded based on academic merit and financial need. The programs are typically very limited in scope and are only available to students at particular schools.
The two Rhode Island scholarship programs are:
Rhode Island Promise Scholarship Program
Through the Rhode Island Promise Scholarship Program, the state will cover up to the full cost of tuition and fees for qualifying students who attend the Community College of Rhode Island (CCRI) full-time for two years..
To qualify, students must be Rhode Island residents and enroll full-time at CCRI for the semester beginning immediately after their high school graduation.
Rhode Island College Hope Scholarship
The Rhode Island College Hope Scholarship is a state-funded award offered to eligible students at Rhode Island College (RIC). It is a last-dollar award, meaning it covers the student’s remaining tuition and fees after other grants and scholarships are applied.
To qualify, students must be Rhode Island residents and in their junior or senior years at RIC with a GPA of at least 2.5. Applicants must be on track to graduate or earn an approved certificate in a total of four years.
Adult students who have earned at least 60 credits within a four-year period at RIC are also eligible for the scholarship over a duration of two years or less.
The Hope Scholarship is a pilot program; currently, it’s set to expire in 2028 unless the state government provides additional funding.
🤓Nerdy Tip
Although state-funded financial aid is limited in Rhode Island, there are scholarships and grants available from other sources. The Rhode Island Foundation maintains a database of scholarships provided by individuals, organizations and companies that are specifically for Rhode Island residents.
Tuition waivers in Rhode Island
If you are eligible for one of Rhode Island’s tuition waiver programs, a portion of your tuition costs will be waived at select schools.
The following groups are eligible for tuition waivers in the Ocean State:
Senior citizens
Permanent Rhode Island residents who are 60 or older can take courses at any public institution within the state, and the full tuition will be waived. Admission into particular courses is at the discretion of the university and is based on available space. All other expenses, including textbooks and living expenses, are the student’s responsibility. The program is restricted to those with a household income less than three times the federal poverty level.
Disabled veterans
Under Rhode Island’s Disabled Veterans Tuition Waiver, veterans with a qualifying service-connected disability who permanently reside in the state can receive a waiver for the full cost of tuition at Rhode Island’s public colleges and universities. Students must apply for and use other financial aid before the waiver is applied.
National Guard service members
Current National Guard members in Rhode Island can qualify for the RI National Guard State Tuition Assistance Program (STAP). This is a waiver that covers up to five classes per semester at Rhode Island’s public colleges and universities. Other expenses, such as fees and textbooks, are the responsibility of the student.
To qualify, you must be an Army or Air National Guard service member pursuing an associate, bachelor’s or master’s degree from the Community College of Rhode Island, Rhode Island College or the University of Rhode Island. Guard members must serve a one year military commitment after leaving school for every 12 course credits completed with the waiver.
Unemployment recipients
If you were laid off from work and filed for unemployment within the last 60 days, you may be eligible for a waiver of tuition costs at Rhode Island’s public schools. You can check your eligibility and download a tuition waiver certificate on the Rhode Island Department of Labor and Training website.
Rhode Island student loans
The Rhode Island Student Loan Authority (RISLA) is a non-profit agency that issues private student loans for undergraduate students, graduate students and parents. It also provides student loan refinancing for borrowers with existing education debt.
Although there are special benefits for Rhode Island residents, RISLA issues loans to borrowers nationwide with competitive rates. Borrowers can take out loans between $1,500 and $50,000 per year, and can use the funds to pay for education expenses at public or private schools.
Some of RISLA’s stand-out benefits include the following:
Income-based repayment: RISLA is one of the few private lenders to offer an income-based repayment option for borrowers who can’t afford their monthly payments. This plan bases your payments on a percentage of your income, and your loan term can be extended up to 25 years. If you still have a balance after 25 years of qualifying payments RISLA will discharge the remaining amount. Borrowers must demonstrate financial hardship to qualify for this repayment plan.
Nursing Reward Program: If you are a new nurse working in Rhode Island and have RISLA student loans, RISLA will lower your interest rate to 0% for up to four years. Any payments you make during this time will solely go toward the principal, helping you save money and pay off your debt faster.
Loan Forgiveness for Internships programs: If you’re a Rhode Island resident or attend a college within the state and complete a qualifying internship, RISLA will forgive up to $2,000 of your student loans held by the lender.
Other financial aid programs in Rhode Island
Despite Rhode Island’s sparse financial aid roster, three other financial aid programs offered by quasi-state agencies could help some students pay for college:
Wavemaker Fellowship
Offered by the Rhode Island Commerce Corporation, a quasi-state agency, the Wavemaker Fellowship provides qualifying individuals with a tax credit certificate worth the value of their annual student loan payments for up to four years, up to a maximum determined by the borrower’s education level:
If your highest degree is an associate degree, the maximum is $1,000 per year.
If your highest degree is a bachelor’s degree, the maximum is $4,000 per year.
If your highest degree is a master’s degree or higher, the maximum is $6,000 per year.
The fellowship was designed to incentivize graduates to pursue careers or launch new businesses in Rhode Island in science, technology, engineering, mathematics, design or healthcare. You can view the list of eligible job titles and career paths on the organization website.
Health Professional Equity Initiative
The Health Professional Equity Initiative is a new pilot program launched by the Executive Office of Health and Human Services, in partnership with the Rhode Island Office of the Postsecondary Commissioner and Rhode Island College.
The initiative provides financial assistance for paraprofessionals pursuing careers as licensed health professionals through programs at Rhode Island College. It can help cover the cost of tuition, but it also provides funds to cover other expenses, such as childcare or transportation, so that individuals can complete their education.
Knowledge for College Scholarship
In addition to loans, RISLA also operates the Knowledge for College Scholarship program. This isn’t awarded based on merit or financial need; instead, applicants complete steps to be entered into a drawing, and the winners are randomly selected.
Selected winners receive $2,000 to cover some of their education expenses with proof of enrollment. To qualify for the award, students must be residents of Rhode Island or attending college in Rhode Island. Students must also register for an account and answer three questions about financial literacy.
Student loan repayment in Rhode Island
In Rhode Island, the average student loan balance is $31,780 per borrower — about 8% less than the national average of $34,577.
Rhode Island only has two student loan repayment programs, and both are partially funded by the federal government:
John R. Justice Prosecutor and Defender Incentive
The John R. Justice program gives states federal funds to dole out to qualifying attorneys with outstanding student loan debt. In Rhode Island, eligible residents who can take advantage of the program include those employed as full-time federal or state defenders, and state or municipal prosecutors handling any phase of juvenile or adult criminal prosecution or defense (federal prosecutors are not eligible).
Funds can only be used to repay federal undergraduate or graduate loans; Parent PLUS Loans are not eligible. Funding varies, but in recent years, the average max award in Rhode Island has been $2,000 per individual.
Health Professional Loan Repayment Program (HPLRP)
Through Rhode Island’s HPLRP, eligible primary care, dental and mental health clinicians can receive financial help with their student loans in exchange for working in high-need areas for a specific period.
In Rhode Island, workers must commit to working in federally-designated health professional shortage areas for at least two years. Participants can apply for service extensions and serve for a maximum of six years.
Award amounts vary by profession, but some healthcare professionals can qualify for up to $20,000 per year for up to four years.
How to apply for financial aid in Rhode Island
To apply for financial aid in Rhode Island, follow these steps:
Complete the FAFSA or the Rhode Island alternative aid application: Most of Rhode Island’s programs require students to submit either the FAFSA or the Rhode Island Alternative Application for State Postsecondary Student Financial Assistance. Although Rhode Island doesn’t have a submission deadline, some programs issue awards on a first-come, first-served basis, so it’s wise to submit your application as soon as possible.
Review other requirements: The majority of Rhode Island’s financial aid programs are offered in partnership with other organizations or agencies, so they all have different application requirements. Visit the issuing organization’s website to find out what information is required and program deadlines.
Reach out to your college financial aid office: Some financial aid options are only offered through a specific college. You can contact your college’s financial aid office to find out what programs are available and what you need to do to apply.
Frequently asked questions
What is the FAFSA deadline for Rhode Island?
Rhode Island is one of the few states that doesn’t specify a deadline. To find out when you need to submit the FAFSA to qualify for state-based aid, contact your selected college’s financial aid office.
Who needs to fill out the Rhode Island Alternative Application for State Postsecondary Student Financial Assistance?
Rhode Island designed the Alternative Aid Application for those who don’t meet the FAFSA’s citizenship requirements. Students can submit the Alternative Aid Application instead to apply for financial aid programs.
Rhode Island allows undocumented and DACA students to qualify for in-state tuition and state-based financial aid. However, many of those programs require the FAFSA, and students who aren’t citizens and do not have Social Security numbers are ineligible for the FAFSA.
Does Rhode Island have free community college?
Rhode Island offers free tuition to qualifying students attending the Community College of Rhode Island through the Rhode Island Promise Program. Students can complete two years of full-time study at the school without having to worry about tuition costs.
My name is Steven Wynands and I’m the co-founder and CEO of Peer Reputation. Over 60,000 real estate agents and brokers use our platform to discover and leverage their professional relationships. This is my personal reflection on what happened over our first 12 months that finally gave me the courage to believe in myself and pursue this project full-time. I hope you find it interesting and that it helps you if you’re going through the same decision.
Facing The Big Decision
I never thought I’d find myself in this position. Saddled with student loans, credit cards, a mortgage, and childcare for two, it would be very irresponsible for me to leave my cushy, government job to pursue my own startup ambitions. I tried to delay this decision as long as possible. I sacrificed sleep so that I could be there for my family and deliver everything my job expected of me. Wishfully, I hoped that the universe would take care of it for me by turning the startup into an overnight success or burying it to the ground. Neither of those things happened, but I did get plenty of signs that helped me make a decision.
Getting Inspired (Again)
I was just one year removed from an unsuccessful real estate startup that spanned two years. I had no intention of jumping into another project, but one afternoon of phone calls changed everything. The first phone call was from a buyer’s agent whose clients were interested in one of my listings. Her call made me uneasy and I wanted to protect my sellers so I made a few more calls of my own.
I reached out to other listing agents who had recently worked with this buyer agent and was surprised by the responses. I wasn’t connected to these other agents in any way yet they openly shared detailed warnings with me about working with this buyer’s agent. They were eager and grateful for the opportunity to protect other agents and consumers from reliving their nightmares and wished there was an easier way to do so. Thankful and inspired, I called up my friend Steve with an idea.
Starting Up, Extra Lean & First Signs from The Universe
I’ve known Steve since middle school. We worked together throughout secondary school as well as college where we studied computer engineer together at Virginia Tech. We continued working together on projects after graduation including the recent unsuccessful real estate startup. At this point we were each raising two small kids and a bit burned out from long nights and weekends so I approached him with a very simple project based on the phone calls I just had that afternoon. We discussed the backstory and basic specs and agreed to meet a few days later to test out my idea.
The basic premise was simple. I wanted to know if other agents were just as eager to share their feedback to protect other agents and consumers too. To test out this idea I created a list of 600 recently sold homes along with the listing and selling agent information, and Steve coded up a test project to request feedback between these cooperating agents. We built this out on Saturday and Sunday and were ready to launch the following Monday.
Immediately after launching our test I was prepared to throw in the towel. I thought the experiment had failed and I was just happy to know that we had only spent a few days on it. It turned out that the only failure was my uninformed expectations and analysis. I showed the results of our testing from that day to my brother who enjoys marketing as a Product Manager for Zappos and he was blown away! He said that we were hugely successful by achieving a 70% total email open rate and 20% email click rate.
I still wasn’t sure exactly what we were building but I knew enough from his reaction that we had to keep on going. The next week we doubled the sample size and tweaked some wording in our emails and achieved an 80% total open rate and 27% click rate! It was very clear that we were building something that people wanted. We just had to keep it going while we figured out exactly what that thing was.
Product? Market? Fits!
Over the next few weeks, we increased our survey sample sizes and maintained high open and click rates. We received over 10,000 responses in our first month! The manual data loads were becoming so overwhelming that we didn’t have time to work on the platform. I buckled down and focused on creating a web scraper to automate the data routines while Steve worked on building out the infrastructure that could house a richer experience.
Four months after conducting our first test we finally had our platform shell in place. We relaunched our feedback platform more broadly in the same local market and watched the results come in immediately. Now that we finally had a user dashboard, agents were registering and interacting directly with us. A thousand agents registered the first month and I knew we had a hit when they were telling us how surprised they were that this kind of platform hadn’t existed before. They were also asking us for more features! We could not believe how smoothly everything was happening! Things were continuing to ramp up based on user demand.
Traction and Scaling
Eight months into our project, things were going very smoothly. Peter joined us as a co-founder and freed us up to be more strategic and engaged with the user community. Our friends saw their friends using our platform from social media and asked if they could help with our startup. We all had fun learning and growing together while watching thousands of feedback and hundreds of new users register every week, but I could feel the transformation of startup project to company taking place.
10 months into the project, I was spending nights and weekends at Steve’s house again. We’d plan and program into the morning hours and then I would sleep just enough that I could drive home safely and spend time with my family. I was also working nights and weekends to deliver on my full-time job and doing 20 real estate transactions on the side. I knew it was time to come out of the startup honeymoon and figure out if this thing was going to last before I burned out again and so we put ourselves through a major test-expansion.
For the first ten months, we only served one market as we built and fine-tuned the platform. We had grown at a compound monthly growth rate of 27%, and we were ready to find out if we could replicate our success nationally. We expanded to a few test markets and were thrilled to see that the email open and click rates stayed high as we increased our registered users 42% over the previous month! Everything was going so well but I couldn’t seem to take the leap of faith and work on this project full-time. This is around the time that the universe sent more signals my way.
Our Users Established Our Product Messaging
As an engineer who got into PropTech and then became a top-producing real estate agent, I’m keenly aware of how sensitive the real estate industry can be. I studied how RedFin pulled its Scouting Report project and how Keller Williams opposed AgentMatch. But I also saw how NAR and Houston Realtors had tried moving forward with ratings, and that the agent performance analysis was enough to propel HomeLight to a $40M Series B. Since our platform was built on top of agent-to-agent ratings, I didn’t feel comfortable taking the full-time plunge yet and thrusting myself into major industry scrutiny. That changed very quickly with one phone call from a real estate agent.
Every week we receive feedback from tens of thousands of real estate agents. We also get lots of phone calls and emails about our platform that I answer personally. After I finished my usual explanation on one of these phone calls, the agent responded, “Oh, it’s about professionalism? That’s awesome.” That was the key. Although our system was built on top of ratings that’s not really what we stood for. I learned from our users that they were actually utilizing it for professionalism and accountability. We finally had a message that we could promote publicly with great confidence and it came just in time for the next big moment.
Coming Out of Stealth Mode (Product Timing & The Parker Principles)
On April 2, 2018, Inman News published The Parker Principles: A Real Estate Manifesto. It was created based on input from agents, brokers, companies, and associations from around the country as a series of principles to make real estate better. It echoed so many tenets of our startup: Quality, professionalism, and accountability in real estate. When I read The Parker Principles I felt like these industry leaders were screaming for the solution our team had built. The universe was clearly telling me to pop out of my shell and so I did. I reached out to Inman News about our platform and they covered us two months later in June. I had outed myself as the real estate agent behind Peer Reputation and there was no going back now.
Something’s Gotta Give
We were about 11 months removed from the weekend project that turned into a full-blown startup and the major Inman Connect real estate conference was coming up in mid-July. I knew we had to keep the momentum going so I took a week off from work and flew out to San Francisco to mingle with the industry I had just revealed myself to.
On the second day of Inman Connect I was standing in the lobby of the Hilton when the COO of Remine, Jonathan Spinetto, said, “Follow me.” He led me through a series of halls and we stopped outside of a suite. When the suite doors opened a few minutes later, MLS executives walked out and I walked into a dim room lit blue by a portable projector and populated with the CEO, COO, and CFO of Remine. Jonathan handed me a display cable and said, “Demo.”
We went over the platform, the processes, team, and potential roadmap. At one point during our discussion I remember that Mark Schacknies, then-CFO and now-CEO, told me, “You need to sleep.” It actually wasn’t the first time I had heard something like that. When Gill South interviewed us for the Inman News article, she told me that I should devote my full attention to the startup. Smart industry folks were telling me that I needed to quit my full-time job and I was finally ready to consider it.
The Tipping Point & Decision
A few weeks after coming back from Inman Connect, my boss called me into his office and asked me, “Do you have outside employment?” I responded openly and honestly and from there my work life began to unravel. My telework was cut in half which meant I spent more time driving through grueling DC area traffic. I wasn’t prepared to scale back on my startup activities when things were going so well so I just continued sleeping less.
I was tired. The startup was going great and the work environment was souring. Why couldn’t I just quit and focus on the startup? The answer was that I wanted to provide a stable environment for my wife and children, and that requires income. I had been so focused on building the platform and acquiring users that I hadn’t considered income until now. Now I was motivated, confident, and ready to take a leap. On October 17th, 2018 Peer Reputation welcomed its first paid subscriber. 10 days later, I quit my job.
Fast Forward
It’s been 9 months since I quit my job and I don’t regret it one bit. Things have not slowed down and continue to look better and better. I’d love to write more about it but, unfortunately, I’m out of time! I’ve got to get back to preparing for some major events. I’m heading to Inman Connect in Las Vegas where we’ve been selected as a finalist for the Inman Innovator Award. I’ll also be pitching onstage at the conference as one of eight selected startups at Tech Connect. If you’re going to the conference as well please swing by our table in Startup Alley to say hi! (I still can’t believe this is all happening!)
The U.S. housing market is short by at least 6.5 million homes. After more than a decade of under-building relative to population growth, there are simply not enough affordable entry-level and first-time move-up options available for buyers. Renters are finding themselves priced out of areas within a reasonable commuting distance to work.
The scarcity of housing has driven home prices and rents prices to an all-time high and pushed affordability to a multi-decade low. Over the next decade, there will be more than two million adults added annually to the U.S. population, due to a combination of aging and immigration. This shift will drive a voracious need for more housing, especially among entry-level and first-time move-up homes at lower price points given structural affordability challenges.
Reasons for the housing shortage plentiful
Housing has been materially unbuilt for the past 15 years. Most production builders have focused on ever larger and more expensive new homes, and relatively few new homes have been built that cater to lower-income households and entry-level buyers, especially in high-cost coastal markets.
Most recently, rising interest rates have intensified the fight for housing. From February 2011 to April 2022, mortgage rates never rose above 5%, making the cost to borrow money and buy a home very cheap. However, since 2022, there has been a rapid rise in rates that has created a “lock-in effect” and stalled many families who would have otherwise considered moving. Homeowners who “locked-in” a mortgage rate of 3-4% during the pandemic are unwilling to buy a home at a 7%+ on a new mortgage, which means even fewer homes are going on the market as existing homeowners choose to stay put.
For those hoping to buy a home for the first time, the rise in rates means that monthly payments are effectively double what they would have been a year ago, a reality that has priced many people out of buying. Couple that with rising costs of home insurance and the general price inflation, and there is a massive housing affordability problem facing the majority of the country.
A need for alternatives
This persistent housing shortage has generated a pressing need for alternatives that can bridge the gap between demand and supply, while accounting for a limited availability of land in top areas.
Enter the Accessory Dwelling Unit, commonly known as an ADU, or more informally called an in-law suite, granny flat or backyard home. ADUs are small, self-sufficient structures that usually have one to three bedrooms, a private entrance, and all the amenities that a resident would require including kitchens and bathrooms. ADUs are one of the most effective ways to add density and rental properties in a higher cost market. These generally detached structures can be built in less than a year and cost far less to build than primary homes. Depending on where you live, there are also various state-run programs such as the CalHFA ADU Grant in California that can bring down building costs tremendously.
For homeowners, ADUs offer an opportunity to provide affordable housing on the rental market or house relatives that would otherwise be unable to afford the neighborhood. These structures can generate rental income to offset rising mortgage payments, and create more long-term rental supply, ultimately lowering the average rental cost for tenants. For local governments, ADUs can increase the number of tenants in areas where high-rise dwellings are not a desirable option. ADUs also offer a compelling option for multi-generational living, which can be a tremendous help with families that want to reduce burdens of childcare and senior care.
Changing policies good for ADUs
Fortunately, we are seeing many government authorities focusing on changing housing policies and zoning codes to make ADUs a more actionable solution. It’s a rare example of government housing policies driving the private market to solve a critical problem. For example, California’s changes in laws and regulations have made ADUs much easier to build. The momentum from these regulations has resulted in a large increase in ADU construction activity: permits for ADUs in California have increased nearly 22x from around 1,100 in 2015 to nearly 24,000 in 2022 and roughly 68,000 ADUs were built across California between 2017-2021. As a result, there are a large number of new housing units that have been added to high-cost locations where people hope to live and work.
Nationwide, many local and state governments are starting to follow the California example. Washington, Oregon, Florida, and Colorado, to name a few states, are starting to make ADUs a more prevalent part of solving the housing affordability issue. Ultimately, ADUs alone won’t solve decades of housing issues. But they can close the gap between the number of people looking for affordable housing and the number of homes available for rent or purchase.
Sean Roberts is CEO of Villa, an ADU builder in California.
This column does not necessarily reflect the opinion of RealTrends’ editorial department and its owners.
To contact the author of this story: Sean Roberts at [email protected]
To contact the editor responsible for this story: Tracey Velt at [email protected]