Tampa is by far one of the finest cities in Florida, and its neighborhoods are some of the best in the state.
Whether you’re looking to immerse yourself in the history of Ybor City or are looking for easy access to Tampa’s nightlife, there are many fantastic areas to call home.
Here are our 10 favorite Tampa neighborhoods.
If you’re looking for a Tampa neighborhood with great schools, consider moving to Bayshore Beautiful. This liberal-leaning community boasts plenty of coffee shops, parks and restaurants for residents to enjoy. It’s a highly walkable district with low crime rates. It is also one of the quietest neighborhoods in the Tampa Bay area.
What makes Bayshore Beautiful even more desirable are its waterfront views and Riverwalk. You can expect to see people biking, walking, jogging and enjoying the Tampa Bay sunset.
The entire Channel District has become increasingly popular over the last few years. It even made the list of the top five Tampa neighborhoods where rent is increasing the most. This highly coveted area is full of condos with panoramic views and local hotspots like Victory Coffee and the District Tavern.
Channel District residents also appreciate being within walking distance of Sparkman Wharf, the Florida Aquarium and Amalie Arena. With all these amenities at your doorstep, it’s easy to see why the Channel District is one of Tampa’s hottest areas.
If you’re looking for an urban community with lots of high-rises, condos and access to first-rate theaters and museums, Downtown Tampa is the place for you. Downtown residents will enjoy having easy access to the city’s business district and major highways.
In addition, there are several dining and shopping options located nearby, and the city’s nighttime hotspots are only a quick taxi ride away.
Although it’s technically a part of Downtown Tampa, Harbour Island truly is a community of its own. Living in this neighborhood is a status symbol by many, and the rental prices reflect that.
Harbour Island has a very low crime rate with access to good schools, which is a strong draw for many residents. Additionally, the Riverwalk area is minutes away.
Tampa’s Hyde Park is an excellent choice for renters looking for a charming place to settle down. This historic area of the city is next to Tampa Bay and attracts young professionals and families alike.
One of the most popular attractions in the neighborhood is Hyde Park Village, which has restaurants, boutiques, bars and specialty stores.
As you might expect, New Tampa is one of the newest communities in Tampa. Close to the University of South Florida, this increasingly popular area of town is a great place to raise a family.
Its easy access to several corporate headquarters also makes this neighborhood popular with professionals. But that popularity comes at a cost, as prices have steadily increased over the past year.
Source: Rent. / Avenue Lofts
North of Downtown Tampa is Seminole Heights, a historic district that honors its roots while maintaining a cool, suburban feel. You’ll find plenty of local bars and restaurants, along with a countless number of antique and second-hand stores.
Due to its popular bar and restaurant scene and its location near the University of South Florida, rent prices in Seminole Heights have increased dramatically in recent years.
Tampa Palms is an excellent option for future Tampa residents who are looking for decent schools and a politically moderate area of town. This enclave has a suburban/urban feel and attracts young professionals and young families alike.
Tampa Palms is highly walkable and known for being a dog-friendly community. Additionally, the neighborhood has a number of local bars and restaurants for residents to choose from. This community also is close to the University of South Florida and its nearby attractions.
If you’re looking for a liberal, family-friendly area of Tampa to settle down in, University Square is a great choice. University Square schools are above average, the neighborhood is known for its safety and the entire area has a good suburban/urban mix. There are also plenty of restaurants, shops and parks, and it’s incredibly close to Busch Gardens and the Museum of Science and Industry.
Convenient to the University of South Florida, this area is also quite popular with students and professors. Furthermore, University Square is near some of the best hospitals in Central Florida.
Source: Rent. / The Warehouse Lofts
Located on the northwest side of Ybor City, Ybor Heights residents enjoy the lifestyle and amenities found in a dense, suburban area. There are plenty of local parks, coffee shops, bars and restaurants and the famous Ybor City Historic District is within walking distance.
Ybor Heights has a good mix of renters and homeowners and is one of the city’s more diverse areas. This young, liberal neighborhood is perfect for renters who can appreciate history while enjoying the famous nightlife. And, although Ybor Heights typically caters to young professionals, the above-average schools make this area attractive to young families, as well.
Find the best neighborhood for you
If you’re thinking about moving to Central Florida, you can’t go wrong by choosing Tampa. The city has amusement parks, world-class universities and hospitals, and some of the best year-round weather in the country. Hopefully, this guide to the best Tampa neighborhoods will help you decide which community is right for you.
Lindsay Mickles is a freelance writer and web designer who has been living in the Tampa Bay area for the past three years. An avid travel blogger, Lindsay enjoys exploring Central Florida’s cities and towns every chance she gets. Whether she’s searching for the area’s best taco truck or discovering the coolest art museums around, Lindsay is determined to experience all that central Florida has to offer.
You may have a preconception about moving to Omaha. But once you’re in the city, it exceeds expectations and is a place you don’t want to leave.
Omahans enjoy outstanding attractions, such as the Henry Doorly Zoo and Aquarium, considered one of the top zoos in the world. With nearly 130 acres of indoor and outdoor exhibits, the zoo claims to have the world’s largest indoor desert dome and the top indoor rain forest in North America. The African Grasslands and Asian Highlands feature animals in natural settings.
The Durham Museum showcases Omaha’s history, such as its early days as a railroad center and the site of the 1898 World’s Fair, a.k.a. Trans-Mississippi Expedition. Outdoor attractions include Fontenelle Forest, with more than 15 miles of natural trails among the bluffs overlooking the Missouri River, as well as the downtown riverfront, which is home to the Bob Kerrey Pedestrian Bridge, one of the longest bridges connecting two states as Nebraska and Iowa meet in the middle of the river.
Omaha’s culinary scene rivals that of many bigger cities in the U.S. With several James Beard Foundation-nominated chefs, you’ll find restaurants featuring fresh handmade dishes from around the world. Farm-to-table dining is popular, with restaurants like The Grey Plume, Dante and Au Courant leading the way. It’s hard to taste better Italian dishes than you’ll find at Lo Sole Mio or Malara’s. South Omaha is ripe with authentic Mexican eateries.
While the city doesn’t have any major league sport, it’s an amateur sports mecca. From the College World Series in June to hosting multiple U.S. Olympics trials, including swimming and curling events, Omaha attracts hundreds of thousands of fans to the area. Omaha is also home to the Storm Chasers, the top minor league baseball team for the Kansas City Royals.
Keep on reading to see if moving to Omaha is a fit, and why you’ll love to live there and strive to keep it “America’s best-kept secret.”
Omaha overview
Omaha is home to four of Forbes Top 500 companies, led by Berkshire-Hathaway. With local billionaire Warren Buffett at the helm, Berkshire-Hathaway is among the top five companies by Forbes. Other top Forbes companies include Union Pacific (No. 141), Mutual of Omaha (337) and Kiewit Corp. (339).
While enjoying major economic success, Omaha maintains a Midwestern small-town feel, where it’s common for people to say hi as they see you on the street and hold the door for you when entering buildings.
While experiencing growth and development in neighborhoods across the city, the Omaha cost of living continues to remain strong, along with steady job growth.
Population: 478,192
Population density (People per square mile): 3,217.9
Median income: $59,266
Studio average rent: $864
One-bedroom average rent: $946
Two-bedroom average rent: $1,173
Cost of Living index: 93.4
Popular neighborhoods in Omaha
Moving to Omaha offers you a chance to explore the city’s history, culture and diversity. While west and southwest Omaha offers the feel of suburbia, Omaha’s most popular neighborhoods remain the oldest and most upscale.
From the riverfront to midtown, you’ll find a mix of older and contemporary apartments and condominiums to call home, while also enjoying easy access to culture, parks, vintage shops and a fun nightlife scene, featuring outstanding eateries and bars.
Old Market: Old Market is the heartbeat of Omaha. The nine-block area hosts one of the Midwest’s longest-running farmers markets each summer and fall. The entertainment district is family-friendly during the day, with restaurants, shops and galleries open, before becoming an adult-centric neighborhood at night, as couples dine out and then hit bars and clubs, creating a fun, party atmosphere.
Benson: One of Omaha’s oldest neighborhoods, Benson is an eclectic mix of art galleries, coffee shops, craft breweries and restaurants. Toss in vintage and unique clothing shops, and you’ve found the city’s “Hipster” area. During “First Fridays,” galleries and other businesses stay open later on the first Friday of each month, along with entertainment and even food trucks lining the streets.
Midtown: Popular with young professionals moving to Omaha, Midtown is a mix of contemporary apartments and condos with older homes. The Midtown Crossing entertainment district is home to some of the best restaurants in Omaha, as well as unique retail outlets. Midtown is the site of the Jazz on the Green festival each summer.
Dundee: Considered Omaha’s first suburb, Dundee is home to classic apartments, as well as modern outlets. With fantastic local eateries, such as Ahmad’s Persian Café, Saddle Creek Breakfast Club and J. Coco, calling the area home, it’s one of the city’s best dining areas. It’s also home to Warren Buffett, whose house in Happy Hollow borders the neighborhood.
Blackstone: Nestled between Midtown and Dundee, Blackstone is one of Omaha’s newest entertainment districts. Heavy on restaurants and bars, such as Noli’s Pizzeria and Butterfish, it also offers excellent spots to relax and enjoy a treat or coffee at Coneflower Creamery and Archetype Coffee.
The pros of moving to Omaha
Omaha offers people excellent attractions, restaurants, outdoor activities and a sports scene that makes other cities jealous. With plans to expand the riverfront, downtown Omaha will rank as one of the most beautiful and fun areas in the Midwest. Here are three reasons why you’ll enjoy moving to Omaha.
Excellent employment opportunities
With one of the lowest unemployment rates in the United States at less than 5 percent, Omaha is home to major leaders in healthcare, transportation, agriculture and insurance. Several people moving to Omaha are with companies, such as Union Pacific, Pacific Life and Aflac.
Tech companies are finding their way to Omaha, with the city earning the nickname “Silicon Prairie,” as Facebook and Google are among companies opening data centers in the area.
Enjoy the commute
Nicknamed the “15-minute City,” Omaha is easy to get around. The commute is actually about 20 minutes, as the city grows and expands its boundary westward. Regardless, the main thoroughfares, such as Dodge, Maple, Pacific and Center streets, run east-west, while the interstate system continues to add lanes to ease morning and afternoon commute issues.
The cost of living is a huge plus
With a cost of living index rating of 93.4, among the best in the United States, moving to Omaha benefits you financially. Everything tends to cost less here than in other cities of similar size, such as groceries, utilities, rent and gasoline. You can enjoy an evening out on the town without worrying about mortgaging the farm.
The cons of moving to Omaha
While Omaha enjoys economic success, the city faces challenges to keep its young professionals in the area, among other issues. Here are three areas of concern when considering moving to Omaha.
Lack of diversity
Whites make up about 66 percent of the population, while the African American community is the largest ethnic minority, accounting for about 12 percent of the city’s population. Hispanics make up about 11 percent, while Asian Americans and Native Americans account for about four percent.
While Omaha hasn’t experienced racial tensions like other cities, people have targeted minorities as a way of gaining political power, including focusing on undocumented workers or perceived high crime rates. Minority residents have protested unfair treatment by law enforcement and the court system.
Public transportation is a challenge
Omaha is a car city. Without a vehicle, you’ll be challenged to easily get around town. While Uber and Lyft are successful in Omaha, the city’s public transportation system is lacking for many residents.
With bus routes that run east-west, focusing on stops toward downtown, the Metro Transit system doesn’t run 24/7, which impacts people who prefer using public transportation. The new ORBT route runs from the Westroads Mall to downtown, but again, it’s not designed for 24/7 service.
Winter can be severe
Winters in Omaha are hit-or-miss — it may snow a lot or just a few inches. However, when it gets cold and snowy, traffic comes to a standstill. Literally. You’ll find parking lots on some of the main routes, because, as people joke, “two inches of snow shuts down the city.” Snow removal is an annual challenge, as well as the potholes that come with the winter season.
How to get started on your move to Omaha
Omaha’s attractions, culinary scene, sports community and commute are winning factors to consider when it comes to moving to Omaha. Regardless of the neighborhood you choose to call home, you’ll only be minutes from most major attractions, parks and restaurants.
To assist with your move as you pack up to head to the Big O, visit our Moving Center to get free quotes and more information about planning your move. Also check out available apartments for rent and homes for sale – you can’t move if you don’t have a place to live, after all.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments. Data was pulled in December 2020 and goes back for one year. We use a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
Population and income numbers are from the U.S. Census Bureau.
Cost of living data comes from the Council for Community and Economic Research.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Tim is an Omaha-based freelance writer, online content creator and author who loves exploring the Midwest and beyond. In addition to writing The Walking Tourists travel blog, he has co-authored three books with his wife, Lisa: 100 Things to Do in Omaha Before You Die, Unique Eats and Eateries of Omaha, and 100 Things to Do in Nebraska Before You Die. Tim is a dad to two daughters and three cat sons. He is an avid sports fan, primarily enjoying football and hockey.
There’s no denying it, the Big Nashty is the place to be.
The Nashville housing market has been a hot topic of discussion in recent years. As the city continues to thrive and attract new residents, buyers and renters need to understand the current state of the housing market and rental market in Nashville.
In this article, we will delve into the key factors shaping the Nashville housing market in 2024, including supply and demand, home prices, rental market dynamics and future projections. Grab your cowboy boots and your trusty six-string because we’re exploring Nashville in all its glory.
Overview of the Nashville housing market
Known to many as Music City, Nashville has experienced significant growth in recent years. With a healthy economy, a legendary music scene and a desirable quality of life, it’s no wonder that people are flocking to this city in search of new opportunities. However, this rapid population growth has put immense pressure on Nashville’s housing and rental market.
Population growth and housing demand
One of the primary drivers of the housing market in Nashville is the city’s population growth. According to the latest data, Nashville has experienced a population increase of over 10% in the past five years. This surge in population has created a high demand for housing, leading to increased competition and rising prices.
Supply constraints and affordability challenges
While the demand for housing in Nashville continues to rise, the supply has struggled to keep pace. This supply-demand imbalance has resulted in skyrocketing home prices and limited housing options for buyers. As a result, affordability has become a significant concern for many residents, especially first-time homebuyers.
Pricing trends in the Nashville housing market
The housing market for homes in Nashville has seen a consistent upward trend in prices over the past few years. This rise in prices can be attributed to a number of factors, including limited inventory, strong demand and other economic conditions. Let’s take a closer look at the pricing trends in different segments of the Nashville housing market.
Single-family homes
Single-family homes have experienced substantial price appreciation in Nashville. The median home price in the city has decreased by 6.1% over the past year, reaching an all-time high of $465,000. This price surge can be attributed to the high demand for single-family homes and the limited inventory availability.
Condominiums and townhouses
The condominium and townhouse market in Nashville has also witnessed significant price growth. With a median price increase of 36.4% in the past year, these properties have become increasingly popular among buyers looking for a more affordable option in the city. However, even with the price appreciation, condos and townhouses still offer a more affordable entry point into the Nashville housing market than single-family homes.
Rental market dynamics in Nashville
In addition to the buying market, the rental market in Nashville is also experiencing its fair share of challenges and opportunities. Let’s explore the key dynamics shaping the rental market in the city.
High demand and low vacancy rates
Similar to the real estate market, the rental market in Nashville is characterized by high demand and low vacancy rates. With an influx of new residents and a limited supply of rental units, competition among renters has intensified. As a result, rental prices have been on the rise, making it increasingly challenging for tenants to find affordable options.
Luxury rentals and amenities
As the demand for rentals continues to grow, developers have been focusing on luxury rental properties with upscale amenities. These high-end rentals cater to professionals and individuals looking for a premium living experience in Nashville. From rooftop pools to fitness centers and concierge services, these luxury rentals offer a wide range of amenities to attract tenants.
Future projections and outlook for the Nashville housing market
Looking ahead, what can we expect for the future of the Nashville housing market? While it’s challenging to make precise predictions, several factors may influence the market in the coming years.
Continued population growth
Nashville’s population is projected to continue growing in the foreseeable future. As more people are drawn to the city’s strong culture and fruitful job market, the demand for housing will likely remain high. This sustained population growth will put further pressure on the housing market, potentially leading to even higher prices and increased competition.
Infrastructure and development
To accommodate the growing population, Nashville has been investing in public infrastructure and large-scale development projects. These initiatives aim to improve transportation, expand housing options and enhance the overall quality of life in the city for all residents.
Find a new place in Nashville
The Nashville housing market is experiencing significant challenges and opportunities in 2024. With a rapidly growing population and limited housing supply, the market is characterized by high demand, rising prices and affordability concerns. Buyers and renters face intense competition, making it crucial to stay informed and prepared. As the city continues to evolve, it will be fascinating to see how the Nashville housing market adapts and thrives in the years to come.
When you’re ready to stake your claim in the Nashville market, you know where to start your search for a Nashville apartment or house.
There are plenty of trends that used to be mostly popular among the low-middle income people that changed when they became popular with rich people. Whether it is a band, a clothing style, or a hobby, nothing remains the same once wealth and status get involved. But what are some of the things that poor people loved before they were spoiled by the wealthy? Here, we look at 20 things that once brought joy to those without much money—until their newfound popularity caused them to be re-crafted as symbols of luxury and extravagance.
1. Industrial, Warehouse Apartments
One user shared, “Living in warehouses in the industrial, rundown side of town.”
Another user agreed and commented, “Yes! They tore down all the real lofts to build condos they call lofts.”
2. Etsy
“Etsy,” posted one user.
Another user commented, “There are SO many accounts for cheap stuff from China that you could get on many other websites as well. No, I come to Etsy for homemade stuff and to support artistic individuals.”
One user added, “Yep, I remember trying to avoid the temptation of Shein by almost buying some unique pearl belly dance waist chains from there for 20 dollars. Dear reader, they were from Shein, without the tags and with a hefty 200% price increase. Thank God for the reviewer who exposed them.”
3. Food banks
One Redditor unfolded the riches’ hack and posted, “Food banks. My local food bank put out a news article basically saying that rich people need to stop using the food bank as a ‘life hack’ to lower their grocery bills.”
One user grasped and commented, “OMG. That’s so evil. Some people really have no conscience.”
4. Living in Arty Neighborhoods
One Redditor shared, “Living in arty neighborhoods.”
Another user replied,” This is what I was looking for. Creative poor people have been investing in poor neighbourhoods forever. They use their talent to make it an excellent place they enjoy living in. The rich say, ‘Hey, I want to be cool, let’s buy this.’ And then they price the poor out of the haven they created and turn it into a stale, crowded, overpriced place. TL;DR—Gentrification”
5. Champion Brand Clothes
“Champion brand clothes. I had a lot when I was a kid because it was the cheapest possible, and now all that s- is considered ‘vintage,’” posted one user.
Another responded, “Reminds me of Fila and Puma.”
6. eBay
An online Redditor commented, “Ebay. It used to be so useful to get all kinds of cheap or unique things. Then more and more big commercial sellers joined the club, and eventually, eBay itself forgot about what and who made their platform a success in the first place.”
“I’ve had my eBay account since ’98 when you had to send physical checks/money orders through the mail. It felt like an online flea market or garage sale where you’d get to know certain buyers and sellers. Feedback was critical, and you never bid on something you didn’t plan to buy because any hit to your reputation was a huge deal.
“It was a nice little collecting community until they allowed resellers of knock-off goods in and turned the whole thing into another Amazon. I occasionally still sell collectibles, but the number of people who don’t bother paying is huge now. I miss old eBay,” stated one user.
7. Blue-Collar Residential Neighborhoods
One user also shared, “Blue-collar residential neighborhoods in the city.”
Another user commented, “Yes! This is my answer, too. Not just houses in general but poor neighborhoods, in particular, are being f- over. You can see the tale here in the property history on Realtor.com. Lots and lots of houses were previously on the market for $50,000, bought, and then flipped and listed for $250k to $300k in a ZIP code where the median income is $34.5k, a good $20k less than the median income for the city. Shockingly, no one wants to spend $300k for a s- remodel in the ‘hood, so most of these houses sit empty unless/until they’re put on Airbnb.”
One added, “I think the problem with gentrification in the US is twofold: a failure to provide a path to ownership for often at-risk residents (which leads to slumlords) and a failure to protect the at-risk pop who DO own property from massive tax hikes.
“No one is opposed to tearing down condemned houses and building new ones, but the neighbours who have been there should not get affected by massive tax increases.”
8. Rural Lake Cabins
“Quiet out-of-the-way country cabins sitting by lakes. Now they are overpriced Airbnbs,” posted one user.
Another user commented, “I’d even say Airbnbs themselves. They started as a potentially cheap alternative to hotels run by people with extra space they aren’t doing anything with. Now people build guest houses specifically for Airbnb and treat It like a full-on rental.”
One user suggested, “If you do decide to go to an Airbnb as a getaway, I’d recommend looking for one on a farm. From what I’ve seen, they’re usually run by the farmers as a sort of side gig and not some company or wealthy person.
“The last one I went to was out in the middle of nowhere with like 70 acres that you’re free to explore, and it was actually at an animal rehabilitation center. They rented out their spare room as an Airbnb as a way to bring in more money to put towards the animals. It was insanely cool.
“They had a ton of animals that were being rehabilitated. The living room had a giant window that looked straight into the snow macaque enclosure. It was their inside feeding area, so you could watch them chill and eat like 2 feet away. There was a flock of chickens that would follow you around; most of them were bald or had b-m legs or other issues that would get them slaughtered at a farm. There were storks, peacocks, a very playful otter, spider monkeys, a d-head heron that kept pecking at my boots, boxes, and a lot more, but they even had tigers. Apparently, they were rescued from a carnival and couldn’t be released into the wild. It was so calm and also sweet to know that you were contributing a bit just by staying there.
“Edit: guess I should’ve included it in the original comment. It’s called ‘The Suite at the Ridge’ in Hocking Hills, Ohio. The Airbnb itself wasn’t crazy lovely or anything, but it was perfectly fine, and you’re there to be around the animals anyways. Unfortunately, I can’t post pictures here because I have some I’d love to share.
“Edit 2: I can’t seem to get the listing to show up in a search, only by looking through messages and it says that the host ‘no longer has access to Airbnb’ so I’m not sure what happened. We went in January, so it wasn’t even a year ago. But if you want to look at other sites, the sanctuary is Union Ridge Wildlife Center.
“Edit 3: Don’t Google the name of the wildlife center unless you want my happy post to become a sad post. Turns out it wasn’t as wholesome as I thought it was.”
9. Van Life and Tiny Houses
One online user stated, “Van life and tiny house living.”
Another user replied, “It’s like they gentrified the trailer park.”
Another user commented, “Not where I live. We still have proper trailer parks loaded with meth, pit bulls and domestic violence.”
10. Modernizing a Historic Home
A user commented, “Buying a “fixer-upper” home and spending weekends working on it. I was really looking forward to that.”
One user responded, “I’ve seen so many nice period houses completely gutted on the inside by modern renovations. If I buy a 1930s house, I don’t want a stupid Scandinavian minimalist interior!”
11. Thrift Shopping
“Thrift shopping. I’m not *thrifting* I’m f- broke,” one user commented.
Another user added, “Sometimes I feel like it’s cheaper to buy clothes at Target or Walmart brand new than it is to buy from a thrift store.”
12. Counterculture-Based Festivals
A Redditor stated, “Counterculture-based festivals. Burning Man was on my bucket list until rich folks started showing up with bodyguards and started establishing private zones.”
One user added, “Counterculture as a whole seems to be getting gentrified. In the Netherlands, there are a lot of places you can go to that have a ‘counterculture aesthetic’ or more specifically, ‘squat aesthetic’ but have exorbitant prices. Squatting used to be vast, and multiple venues in the Netherlands (like Paradiso and Melkweg) have their humble beginnings as a squat. Ruigoord, a village close to Amsterdam that got squatted 50 years ago, also completely lost its soul and is filled with yuppies.
“Counterculture is being gentrified, sanitized and sold back to people at exorbitant prices as something ‘new, weird and hip.’”
13. The Farmer’s Market
One user posted, “Going to the farmers market.” A user replied, “I went to a farmer’s market where only one vendor sold fruits and vegetables. There were three boutique honey stands and an old white lady selling ‘native’ art. St Philips Plaza in Tucson, for anyone who knows what I’m talking about. So dumb.”
14. Houses
“Houses. We poor people would work our entire lives to own one. Property became a great investment and a way to increase wealth, so rich people bought them. Not to live in as intended but to rent to the poor and keep them poor by renting so they will never be able to save enough to afford their own.” a user added to the thread.
15. Fajitas
One Redditor shared, “Fajitas. I remember being able to get skirt steak really cheap and sometimes for free.”
One user replied, “That goes for any ‘cheap’ cut of meat.”
16. Pickup Trucks
“Pickup trucks. They used to be much cheaper,” one user posted.
Another user replied, “They’re luxury minivans now.”
17. Unrestricted Land
One user posted, “Unrestricted land. Everything gets an HOA now, and they try to force you into their jurisdiction.
“My family fought an HOA targeting my grandmother’s house. She had lived there for ten years before the HOA was even an idea, or the new area with big houses was cleared for construction before that.
“We ended up having Rock in her house, skirting, and rock under her deck due to insufficient money to fight an HOA she never signed on to.
“If an HOA comes out where I live (which might happen in the next 15 years), I will fight them tooth and nail for spite alone.”
18. Cheat Cuts of Meat
“Off cuts of meat,” shared one user.
Another user replied, “I remember when chicken wings were 10 cents because they could not give them away. Now, they are an industry. They break a wing in half and call it two wings.”
19. Concerts and Festivals
One user shared, “Concerts and festivals.”
Another Redditor added, “I agree with this one. I have lost all interest in the concert/festival experience.”
20. Brisket Burnt Ends
“Brisket burnt ends. BBQ joints used to toss them or give them away for free,” One commenter added.
Another user replied, “BBQ used to be poor people’s food. Nobody wanted to eat ribs and brisket because they are hard to cook. Now every upper-middle-class person has a smoker, and BBQ costs an arm and a leg.”
Do you agree with the things listed above? Share your thoughts below!
Source: Reddit.
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Both apartments and condominiums share quite a number of traits but differ in ownership. Apartments are often found in large residential complexes owned by a company. These complexes are often operated by professional property managers. Condos are also usually located in large residential complexes, but each condo unit is typically owned by an individual owner.
If you’re browsing the market for a rental, you’ve likely encountered a dazzling array of condos and apartments, and you might rent either type of property. The question of condo vs. apartment gets more complex if you’re debating whether to buy a condo or rent an apartment.
What Is a Condo?
A condo is a residential unit within a collective living community, where each individual condo is owned by a private owner, but the cost of maintaining communal areas is shared by all owners. While condos are often located in high-rise buildings, they can also take the form of a collection of standalone properties, each designated a “condo unit.”
One benefit to renting a condo is that you can deal directly with your landlord rather than a management office, which may mean more personalized attention for your needs.
For buyers, the purchase price for a condo can be significantly lower than the cost of most single-family homes. 💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.
What Is an Apartment?
An apartment is a rental unit within a building, complex, or community. Often, an apartment complex is managed by a property management company, which serves as both landlord and leasing agent for all of the units on the premises. In big cities, “apartment” is sometimes used as shorthand for a condo or co-op unit. If you’re choosing between a co-op and a condo to rent or buy, you’ll want to know how they differ, and whether you’re ready to buy an apartment.
Rental apartments may be located in high-rises but can also be found in larger homes that have been subdivided into separate units.
Renting an apartment offers greater mobility than buying a property, which makes it a flexible option if you’re only planning on staying in an area for a couple of years. A full-time management office or private landlord takes care of leasing, rent payments, and repairs.
Where They Differ
Now that we’ve covered the condo vs. apartment basics, let’s dive deeper into some key dimensions in where they differ.
Ownership
Each unit in a condo development is usually owned by a private homeowner. Unless the condo owner retains the services of a property manager, prospective renters can expect to deal with the condo owner directly when it comes to rental applications, monthly rent payments, and any maintenance issues that arise over the course of their lease.
Apartments are often managed by a property management company that may also own the apartment complex. Effectively, this makes the company the landlord for the entire property. Prospective apartment tenants will usually submit their application and rent payments through the apartment leasing office, while full-time maintenance staffers are on call to deal with any repairs. Of course, some apartments are in smaller buildings owned by individuals. In that case, a renter might deal directly with the property owner just as a renter in a condo does.
In either case, landlords may be amenable to your desire to negotiate rent in order to take you on or keep you. Paring the rent is the main goal in such a negotiation, but you can always ask for other benefits in lieu of a rent reduction.
Property Taxes
Renters aren’t responsible for paying property taxes, making them a non-issue in the apartment vs. condo choice. However, if you’re deciding whether to purchase a condo, understand that you’re responsible for paying property taxes for your unit every year. If you decide to rent your condo out, you should also expect to be taxed on any rental income you collect.
Design
Regardless of structure type, condo owners retain the right to make cosmetic adjustments to the interior of their properties. So if you’re interested in renting in a particular condo complex and you don’t like the design choices an owner has made, consider looking at other units that are available for rent — you may find a very different look and feel in another unit. Apartments within a rental complex, in contrast, typically share similar, if not identical, layouts and designs regardless of which unit you choose.
Amenities
The amenities of both apartments and condos vary widely and often depend on when and how they were built. Generally speaking, condos are more likely to offer customized amenities, like state-of-the-art appliances and granite countertops, that reflect the tastes and habits of their owners.
Fees
Apartments and condos of similar quality and in the same area should rent for around the same cost. Both condos and apartments often charge the following fees:
• Application fee
• First and last month’s rent
• Security deposit
• Credit and background check fee
• Pet fees and deposit
• Parking fee
Renters may find that condo owners are more willing to negotiate on things like fees than apartment management teams, as these are private owners trying to keep their units rented out for income purposes.
Buying a condo will mean paying monthly maintenance fees that cover insurance for and upkeep of common areas, water and sewer charges, garbage and recycling collection, condo management services, and contributions to a reserve account.
Community
Condos usually have a greater sense of community than apartment complexes, given that their residents are likely to stay around longer. In many cases, residents consist of the condo owners themselves.
By contrast, renters living in apartments often intend to stay for only a couple of years. While that’s not to say that there aren’t occasional resident get-togethers at some apartment complexes, you’re less likely to encounter the same faces over several months.
If you’re renting a condo, expect to abide by rules set by the homeowners association. These can sometimes be fairly strict. Apartments have their own set of rules that may be less stringent.
Renting and Financing
Renting an apartment involves one monthly rent payment, in addition to any utilities you’re responsible for. Of course, when you leave the apartment, you leave with just your security deposit, assuming all payments have been made and no damage has been done.
Financing a condo and purchasing the property allows you to lock in your monthly mortgage payments at a steady long-term rate and gives you the chance to start building equity. In exchange, you’ll be required to make a down payment and be responsible for any taxes, insurance, and maintenance fees, among other costs.
Deciding whether it’s better to buy a condo or to rent — or to get a house or condo — is a complicated decision that depends on your personal finances and your lifestyle. If you’re thinking about settling down, have a stable job with steady income, and have enough saved up for a down payment with an emergency fund to spare, buying a condo or house may be the right choice for you. However, if you’re still exploring the area or have variable income with limited savings, it may be best to continue renting. For those trying to decide between renting an apartment and financing a condo or house, a mortgage help center can help provide answers. 💡 Quick Tip: Your parents or grandparents probably got mortgages for 30 years. But these days, you can get them for 20, 15, or 10 years — and pay less interest over the life of the loan.
Maintenance
Most apartment complexes have an on-site building supervisor who can address maintenance issues. Given that the owner of a large apartment complex oversees all of the units, they’re incentivized to employ someone full time to attend to the day-to-day affairs. This often means that apartment owners can react faster than condo owners, who sometimes don’t even live on the premises.
By contrast, condo units are usually owned by landlords, and most of them hire a third-party contractor to come in and make repairs as necessary. In some cases, condo owners may be handy and handle the repairs on their own.
If you buy a condo, you’ll have a regular maintenance fee that covers the shared parts of the property, but because condo owners typically own just the interior of their unit, any repairs in the condo unit will be separate. (It’s a good idea to pore over the covenants, conditions, and restrictions to see exactly what is part of your unit or part of the common elements.)
Condominium vs Apartment: A Side-by-Side Comparison
To help sum it all up, here’s a quick guide to the condo and apartment traits discussed above.
Condo
Apartment
Ownership
Private owner
Property management company, if a large complex; private owner if a smaller building
Property taxes
Paid by condo owner
Paid by building owner
Design
Customized by owner
Uniform across all units
Fees
First and last month’s rent
Security deposit
Credit and background check
Application fee
First and last month’s rent
Security deposit
Pet fees
Community
Typically condo owners and long-term residents
Typically shorter-term renters
Renting & Financing
Condo renters:
Monthly rent
Utilities
Condo owners:
Mortgage payment
Utilities
Property taxes
Maintenance fees
Property insurance
Monthly rent
Utilities
Renter’s insurance
Maintenance
Private owner hires third-party contractors for repairs and maintenance
On-site maintenance staff
Condo vs Apartment: Which One May Be Right for You?
Whether a condo or apartment is right for you depends on your preferred rental experience. If you’re looking for something that feels a little more akin to home and don’t mind dealing directly with your landlord when discussing repairs and rent payments, a condo (or an apartment in a small privately owned apartment building) may be the better option for you.
On the other hand, if you prefer dealing with a full-time staff of property managers, want something more structured, and don’t mind cookie-cutter corporate apartments, an apartment may be the better rental option for you.
Prospective condo buyers will want to keep their finances and monthly budget in mind when deciding if they want to rent or buy. While the idea of building equity is appealing, settling down and committing to a mortgage isn’t for everyone. You’ll want to thoughtfully evaluate your ability to make monthly payments and whether you want to stick around an area.
The Takeaway
In the condo vs. apartment comparison, you’ll pay similar costs when renting properties of similar quality. Things get more complex if you’re debating whether to buy a condo or rent an apartment, as there are myriad added costs for condo owners in exchange for the chance to build equity.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Why are condos more expensive than apartments?
In general, condos and apartments of comparable quality cost around the same amount to rent. A condo owner, however, will likely face higher monthly costs than an apartment renter, thanks to the added costs that come with owning a property, including mortgage payments, taxes, insurance, and maintenance fees. Over time, the added expense may be offset by the equity built through mortgage payments.
Which retains more value, condos or apartments?
Over the long run, both a condo and an apartment in a co-op building can lose or gain value. Whether your specific property appreciates will depend on local market factors and on upkeep of your unit as well as of the larger complex.
Can I get a loan to buy a condo or co-op apartment?
A qualified buyer can finance a condo with a government-backed or conventional mortgage loan. Getting a loan for buying into a housing cooperative can be more difficult. The buyer is purchasing shares that give them the right to live in the unit — personal property, not real property. That’s one reason that some lenders do not offer financing for co-ops.
Photo credit: iStock/Michael Vi
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Despite decades of anti-discrimination legislation and other efforts to fight redlining, create fair lending, and ban racial and other bias, housing discrimination can still exist in many markets throughout the country, especially for first-time homebuyers.
It can be subtle or overt. Either way, housing discrimination holds people of color, immigrants, families with children, and LGBTQ people back by denying them access to safe neighborhoods, good schools, and the generational wealth that comes with homeownership.
This guide offers more information on housing discrimination and what to do if it happens to you.
What Is Housing Discrimination?
Federal law defines housing discrimination as discrimination concerned with renting or buying a property based on race, color, religion, national origin, sex (including gender identity and sexual orientation), familial status, or disability. In other words, if anyone in the house-hunting or mortgage loan process treats a person buying, renting, or selling housing differently because of any of these reasons, they are breaking the law.
Whether first-time homebuyers are buying a starter home or upsizing, they may want to fine-tune their anti-bias antennas and know the laws. 💡 Quick Tip: You deserve a more zen mortgage loan. When you buy a home, SoFi offers a guarantee that your loan will close on time. Backed by a $5,000 credit.‡
Housing Discrimination Examples
Housing discrimination comes in many forms. It could be a landlord who charges higher fees to renters with children, a real estate agent who refuses to show immigrants homes in certain neighborhoods, or a buyer offering less because of the seller’s race.
What’s more, housing discrimination can be subtle, according to the U.S. Department of Housing and Urban Development (HUD), making it difficult to prove and punish. Here are examples of subtle housing discrimination described on HUD’s website:
An African American man speaks on the phone to a landlord who seems eager to rent to him. But when the man meets with the landlord to fill out the application, the landlord’s attitude is different. A few days later, the potential renter receives a letter saying his application was denied because of a bad reference from his current landlord. But his current landlord says he was never contacted.
An Asian man meets with a real estate broker because he is interested in purchasing a house for his family in a specific neighborhood. When he mentions the neighborhood, the broker tells the Asian man that she has wonderful listings in a neighborhood where there are more people like him. When he looks at houses in the neighborhood she recommends, he notices that the majority of residents are Asian. The man files a complaint. Steering buyers to certain neighborhoods because of race is illegal.
Sexual harassment, failure to comply with accessibility requirements, and rules against renting or selling to families with children are also discriminatory.
Equal Opportunity Housing Laws to Know
Housing discrimination by sellers, lenders, and landlords based on race, color, religion, or nationality has been illegal since Congress passed the Fair Housing Act in 1968. The act was expanded in 1974 to include gender and in 1988 to include families with children and people with disabilities. Additional laws concerning discrimination in mortgage lending are included in the Equal Credit Opportunity Act, passed in 1974.
Some situations are exempt from the Fair Housing Act. These include some types of senior housing and housing operated by religious organizations and private clubs. Single-family rental homes are also exempt as long as the landlord does not own more than three homes and does not advertise or broker the rentals. Owner-occupied properties with four or fewer rental units are not governed by the Fair Housing Act.
States and local jurisdictions may have additional laws regarding housing discrimination. For instance, many states and cities ban discrimination based on age, criminal history, immigration status, marital status, or sexual orientation.
In 2020 the Trump administration made several changes to HUD regulations, making it more complicated for people to prove they are victims of housing discrimination. Specifically, victims had to go to great lengths to show that the discrimination was intentional. In early 2021, President Joe Biden signed executive orders aimed at reversing those changes. Housing discrimination continues, however, and in 2023, HUD announced that it was making $30 million in additional funding available to state and local fair housing enforcement agencies across the country to help fight discriminatory practices.
What to Do About Potential Discrimination
First, become familiar with the federal, state, and local laws that may apply. Knowing the laws and how they work is vital to filing an effective complaint and getting a successful outcome.
If you think you are a victim of housing or mortgage lending discrimination, you can file a federal complaint with the HUD Office of Fair Housing Equal Opportunity (FHEO). This office investigates claims concerning any of the protected classes specified in the Fair Housing Act. You can file a complaint online or mail the complaint form to your regional HUD office or call the Housing Discrimination Hotline at 800-669-9777. The complaint form is available in nine languages, including English and Spanish, and any retaliation for filing a complaint is illegal.
The FHEO is supposed to investigate complaints within 100 days. Sometimes complaints prompt the U.S. Department of Justice to file lawsuits against people or companies that may have violated the law.
You may also want to file a complaint with your state attorney general’s civil rights bureau or your city’s civil rights or fair housing commission. This may be more effective than filing solely with the FHEO, especially in areas with extensive housing discrimination regulations. To find out where to file a complaint in your area, start with the National Fair Housing Alliance website for a list of local agencies.
In addition to the FHEO, mortgage lending discrimination complaints can be filed with the Consumer Financial Protection Bureau. 💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.
How to Make Your Case Proving Housing Discrimination
Extensive documentation can help prove housing discrimination. When you are talking to real estate agents, sellers, landlords, or lenders, it’s a good idea to listen carefully and take notes during each conversation. HUD officials suggest looking for what they call red-flag language. This may occur when a real estate agent is trying to steer you away from or into a particular neighborhood. Phrases such as “This wouldn’t be a good fit for you” or “You’d be happier in this other neighborhood” can be red flags.
If you feel you are being “steered,” you can do an online search to learn if a broker failed to show all of the houses in the local housing market in your price range.
If you suspect lending discrimination, such as being quoted a higher rate than you expected, you can check the posted rates online at that mortgage lender and others to see how they compare. You can take screenshots or print this information.
Keep an eye out for and document surprising obstacles that come up in the home buying or renting process. Perhaps a landlord, seller, or agent has said a property is not available but then you find that it is still on the market weeks later. Or maybe your application to purchase a co-op is denied, but you aren’t given a specific reason why. These may be signs of discrimination. You’ll want to document the situation with dated notes from your conversations and screenshots or copies of the ads showing the property still available after you were turned down.
Local housing advocacy and human rights groups also offer help. Organizations such as the Fair Housing Justice Center may help you conduct tests using volunteers of different races to test for disparate treatment in specific locations. These tests can also provide compelling evidence for your case.
Recommended: Home Affordability Calculator
The Takeaway
Longstanding laws and regulations are not enough to eradicate housing discrimination, but informed buyers and renters can fight back. Make sure you advocate for yourself at every stage of the process.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
Photo credit: iStock/zoranm
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
‡SoFi On-Time Close Guarantee: If all conditions of the Guarantee are met, and your loan does not close on or before the closing date on your purchase contract accepted by SoFi, and the delay is due to SoFi, SoFi will provide you $2,000.^ Terms and conditions apply. This Guarantee is available only for loan applications submitted after 6/15/22 for the purchase of a primary residence. Please discuss terms of this Guarantee with your loan officer. The property must be owner-occupied, single-family residence (no condos), and the loan amount must meet the Fannie Mae conventional guidelines. No bank-owned or short-sale transactions. To qualify for the Guarantee, you must: (1) Have employment income supported by W-2, (2) Receive written approval by SoFi for the loan and you lock the rate, (3) submit an executed purchase contract on an eligible property at least 30 days prior to the closing date in the purchase contract, (4) provide to SoFi (by upload) all required documentation within 24 hours of SoFi requesting your documentation and upload any follow-up required documents within 36 hours of the request, and (5) pay for and schedule an appraisal within 48 hours of the appraiser first contacting you by phone or email. The Guarantee will be void and not paid if any delays to closing are due to factors outside of SoFi control, including delays scheduling or completing the appraisal appointment, appraised value disputes, completing a property inspection, making repairs to the property by any party, addressing possible title defects, natural disasters, further negotiation of or changes to the purchase contract, changes to the loan terms, or changes in borrower’s eligibility for the loan (e.g., changes in credit profile or employment), or if property purchase does not occur. SoFi may change or terminate this offer at any time without notice to you. ^To redeem the Guarantee if conditions met, see documentation provided by loan officer.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Existing-home sales fell to their lowest level in nearly 30 years in December—but that didn’t cool red-hot home prices, with the median price reaching an all-time high of $389,800, the National Association of REALTORS® reported Friday.
Existing-home sales—which include completed transactions for single-family homes, townhomes, condos and co-ops—declined 1% month over month in December and are down 6.2% compared to a year earlier, NAR’s latest sales index shows. But lower mortgage rates, which are now below historical norms, likely will set the stage for stronger sales in 2024, NAR predicts.
“The latest month’s sales look to be the bottom before inevitably turning higher in the new year,” says NAR Chief Economist Lawrence Yun. “Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in the upcoming months.”
But home buyers nationwide are still facing a dearth of options. Total housing inventory at the end of December was down 11.5% from November, remaining at historical lows. Many would-be sellers are reluctant to trade in their super-low mortgage rates from just a couple of years ago and make a move at today’s higher rates and home prices. This “lock-in effect” has been blamed for subduing housing inventory, along with sluggish new-home construction that economists say isn’t keeping pace with demographic needs.
With home prices continuing to surge, homeowners are watching their equity grow. Yun says 85 million homeowners saw gains in housing wealth last month. The average U.S. homeowner with a mortgage has built more than $300,000 in equity since their purchase date, according to CoreLogic’s equity report.
However, “the recent rapid, three-year rise in home prices is unsustainable,” Yun says. “If prices continue at the current pace, the country could accelerate into ‘haves’ and ‘have-nots.’ Creating a path towards homeownership for today’s renters is essential. It requires economic and income growth and, most importantly, a steady buildup of home construction.”
Homes Still Selling Fast, More Inventory Coming
Builders are trying to ramp up construction, but there are production swings from month to month. Housing construction fell 4.3% in December but remains above 1 million units, the Commerce Department reported this week. Single-family housing permits—a gauge of future construction—posted an uptick last month, indicating that more new inventory is on the way. Still, it’s likely to be a challenging year for new-home construction due to higher mortgage rates and tight monetary policy, says Alicia Huey, chair of the National Association of Home Builders.
“Moderating mortgage rates are expected to provide a boost to new-home construction in 2024, but an uptick in building material prices and a shortage of buildable lots and skilled labor are serious challenges for home builders,” adds Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis.
In the existing-home market, homes continue to sell fast. Fifty-eight percent of those sold in December were on the market for less than a month, NAR’s latest research data shows. NAR has predicted a stronger housing market for 2024. Here are more key housing indicators from NAR’s December report:
Days on the market: Properties typically remained on the market for 29 days, up slightly from 26 days a year earlier.
First-time home buyers: First-time home buyers comprised 29% of sales, down from 31% in November.
All-cash sales: All-cash sales comprised 29% of transactions, up slightly from last year’s 28%. Individual investors and second-home buyers make up the biggest bulk of all-cash sales, accounting for 16%, NAR’s data shows.
Regional Breakdown
The following is a closer look at how existing-home sales fared across the country in December:
Northeast: Sales remained flat compared to November but were down 9.6% compared to a year earlier. Median price: $428,100, up 9.4% from the previous year.
Midwest: Sales fell 4.3% from the prior month, reaching an annual rate of 900,000. Sales are down 10.9% from last year. Median price: $275,600, up 5.9% from December 2022.
South: Sales fell 2.8% from November to an annual rate of 1.72 million. Sales are down 4.4% when compared to the prior year. Median price: $352,100, up 3.8% from one year ago.
West: Sales rose 7.8% from a month ago, reaching an annual rate of 690,000 in December. Sales are down 1.4% from the year prior. Median price: $582,000, up 4.8% from December 2022.
Ready for homeownership — but looking for something a little bit less overwhelming than a whole house? A condominium might be the perfect fit. But can you purchase a condo with an FHA loan? Yes, under certain circumstances, you can use a loan from the Federal Housing Administration to buy a condo. However, the FHA has to approve condominiums before allowing people to take out FHA-insured loans to purchase them — and finding a condo that’s gone through this approval process (or getting one you have your eye on approved) can be a bit of a challenge. But it’s not impossible! Read on to learn more about FHA-approved condos: what it takes to get approval, where to find condos that have already been approved, and the process of getting an unapproved condo past the finish line.
What Is An FHA-Approved Condo?
To understand what an FHA-approved condo is, it helps to understand what the FHA has to do with purchasing a home in the first place. By offering insurance to lenders, the FHA helps consumers secure low-cost loans with less stringent qualification factors. These FHA loans are commonly used for single-family homes, but can also be used for condominiums, provided the condo is approved by the FHA. Thus, an FHA-approved condo is one that can be purchased with an FHA loan. Pretty simple right? Well, let’s take a closer look.
Benefits of FHA Approval for Condo Buyers
FHA condo approval is beneficial for buyers because finding an FHA-approved condo allows buyers to benefit from the lower overall costs of condo ownership compared to single-family homeownership — and enjoy the lower barrier to entry that an FHA loan can offer to lower-income families, first-time homebuyers, and others facing financial hurdles.
However, not every condo can be approved by the FHA. In order to qualify, it must meet the FHA’s appraisal standards, including safety features as well as financial factors. Entire condominium communities can be approved, and, as of August 2019, an individual unit can also be approved — provided it meets requirements including being “complete and ready for occupancy” and being part of a community with at least five units.
How FHA Approval Impacts Condo Sellers
Sellers, too, benefit from FHA condo approval. Condos that can be purchased with an FHA loan are more attractive to buyers looking for home loans with lower costs and more lenient approval requirements, which means FHA approval is a boon for both parties.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.
Why Does a Condo Need to Be Approved for an FHA Loan?
When the FHA insures loans offered by private lenders, it does so at some level of risk: The loan may never be repaid, in which case it would lose money paying the lost funds back to the lending bank. But borrower delinquency isn’t the only reason a loan might go unfulfilled; if the condominium is falling apart or not financially viable, that could also increase the risk level of the loan. Therefore, the FHA approves condos on a case-by-case basis to help ensure their physical and financial safety for the lender, borrower, and the FHA itself.
How to Get a Condo FHA Approved
If you’re considering buying a condo that doesn’t yet have FHA approval — and you’d like to get that approval to pursue an FHA loan — you can initiate the approval process on a single-unit basis. (Alternatively, you could reach out to the condominium association to see if it is interested in getting the community as a whole FHA approved.) The approval process will require a variety of documentation as well as an appraisal — again, in order to ensure both the physical and financial viability of the community.
Approval Requirements
To achieve FHA approval, condo communities must be demonstrably:
• Insured
• Compliant with state and local law
• In good financial standing
• In good physical standing
• Free of any legal action
For single-unit approval, a condo must be:
• Part of a complex that is not FHA approved
• Completely built and move-in ready
• Part of a community with at least five units
• Not a manufactured home
Minimum Owner-Occupancy Ratios
The FHA maintains minimum owner-occupancy ratios for complexes attempting to get approved. This figure ranges based on a variety of factors, but is usually somewhere between 35% and 50% — meaning between about a third and about half of the condo units must be occupied by their owners.
Financial Stability and Reserve Requirements
The FHA will also assess the financial stability of the condominium complex in order to ensure it’s likely to continue to stay in business for the foreseeable future. For example, 20% of the annual budget must be set aside for reserves, and three years’ worth of financial documents must be provided.
FHA Insurance Requirements for Condos
FHA-approved condos must maintain up-to-date insurance coverage in order to create financial safety for owners and lenders alike.
Restrictions
Condos that don’t meet the eligibility requirements outlined above may not be suitable for FHA approval — and therefore may not be able to be purchased with an FHA loan.
FHA Application and Documentation
In order to get FHA approval, condos will need to prove they meet the requirements with documentation, including financial information, proof of insurance coverage, inspection reports, and more. If you’re attempting to get a single unit approved, the onus may fall on you as the interested party to get this process started. (The seller, if motivated, may also be able to help.)
The Condo Board’s Role in Securing FHA Approval
In order for an entire condominium complex to become an approved FHA condo, the condo board must first meet to decide whether or not board members want to file for FHA approval. If the vote is in favor of seeking approval, the board will need to aid in filing paperwork to begin the application process and to prove the minimum required eligibility factors are fulfilled.
How Long Does it Take for a Condo to Get FHA Approval?
While specifics will vary and delays can occur, the FHA approval process for a condo may take between two and four weeks on average once all the paperwork is in place. 💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.
How to Find an FHA-Approved Condo
Fortunately, it’s pretty easy to determine whether or not a condominium you have your eye on is FHA-approved: The U.S. Department of Housing and Urban Development (HUD) offers a searchable database tool that allows you to simply look the property up by address, community name, condo ID, and more.
Leveraging Realtor Expertise
If you have your heart set on purchasing a condo — and on using an FHA loan to do so — a local real estate agent may have the best sense of which complexes in the area are already FHA approved. Some agents may be game to help you get a unit you’re interested in approved on a single-unit basis.
FHA Loan Alternatives for Condos
If you’ve fallen in love with a condo that is, alas, not FHA-approved, take heart: There are different types of mortgage loans worth considering. Many conventional loans these days come with required minimum down payments as low as 3%, though to avoid paying mortgage insurance, you’ll need a down payment of at least 20% of the home’s value. Fortunately, that goal may be a lot more achievable for a condo than a larger single-family home.
In addition, you may be able to use other types of government-insured loans, like VA loans and USDA loans, to buy condos if you qualify. (VA loans are for veterans and their families, while USDA loans are specifically for properties in designated rural areas.)
Benefits and Drawbacks of FHA-Approved Condos
FHA-approved condos, like any other home, have both benefits and drawbacks to consider.
Pros
• Approved FHA condos can be purchased using an FHA loan, which my offer easier-to-meet qualification requirements and lower costs to borrowers
• Condos may be overall less costly to own than single-family homes
Cons
• FHA-approved condos can be harder to find, especially in competitive, fast-moving housing markets
• Getting a condo FHA approved is a process that takes time and effort, and can be difficult for an everyday consumer to take on
The Takeaway
Purchasing an FHA-approved condo can help buyers hop over some of the primary hurdles to homeownership with lower down payment and minimum credit score requirements. However, not every condo meets the FHA’s strict approval criteria — which means hopeful homeowners may have to choose an alternative mortgage loan type (or keep looking for their dream home).
SoFi offers a wide range of FHA loan options that are easier to qualify for and may have a lower interest rate than a conventional mortgage. You can down as little as 3.5%. Plus, the Biden-Harris Administration has reduced monthly mortgage insurance premiums for new homebuyers to help offset higher interest rates.
Another perk: FHA loans are assumable mortgages!
FAQ
Can you purchase a condo with an FHA loan?
If the condo in question is FHA-approved, yes, you can — but not all condominiums meet the FHA’s requirements. In order to discern whether or not the condo you’re looking at is FHA approved, you can use the FHA’s searchable database, which allows you to search by address, condo complex name, and more.
What does it mean when a complex is not FHA approved?
If a condo complex is not FHA approved, it may not meet the FHA’s requirements — or the board may simply have not yet filed for approval, which does take some time, effort, and paperwork to do. It also means that the condos will not be able to be purchased with an FHA-insured loan, at least until such approval is obtained.
Are there specific criteria for FHA approval of condos in certain regions?
FHA-approved condos must be in compliance with all state and local guidelines, which can vary by region — so yes, the specific criteria may vary slightly.
Photo credit: iStock/benedek
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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If you’re in the market for a home, you may have come across the term “single-family home” and wondered what it means and if that is what you are looking to buy.
Generally, a single-family home refers to a freestanding home set on its own piece of property. It can be occupied by a single individual or a large family, as long as it’s occupied by a single household.
Owning a single family home comes with a number of benefits, including more privacy and space than other types of residential properties. However, this type of home also tends to come with a higher price tag and more responsibility. Here’s a closer look at what single family homes are and the pros and cons of buying one.
What Is a Single-Family Home?
Generally speaking, the term single-family home refers to a home that is designed for, occupied by, and maintained by one person or household. When you buy a single-family home, you will own both the home and the property it sits on. This is in contrast to other types of properties, such as condominiums (condos), where you only own the interior of your unit and share ownership of common areas with other homeowners in the complex.
In most cases, a single-family home is defined as one that is freestanding and not attached to homes owned by other individuals. However, the government has a broader definition. According to the U.S. Census Bureau, a single-family home includes fully detached homes, as well as semi-detached row houses and townhouses. In the case of attached units, the units must be separated by a ground-to-roof wall in order to be classified as a single-family structure. Also, these units must not share heating/air-conditioning systems or utilities.
In some places, a single-family home is defined in part by how many kitchens it has. Depending on zoning laws, adding a second full kitchen to an in-law’s apartment, for example, can cause a house to be redefined as a multi-family building. If you’re planning on doing this type of renovation, be sure to check local zoning laws beforehand.
Whether a home is classified as a single-family or multi-family home can have an impact on the type of mortgages you qualify for. Both single-family homes and two- to four-unit properties fall under residential lending guidelines. (A property with five or more units is considered commercial property.) You can use a conventional mortgage to purchase a home with four or fewer units, whether it’s a single- or multi-family home. If you’re buying a multi-family home with five or more units, you must use a commercial mortgage. Commercial mortgages have different terms than residential mortgages do. 💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
Pros and Cons of a Single-Family Home
As you shop for homes, it’s important to consider the various advantages and disadvantages of a single-family residence.
Some of the advantages are:
• More space Single-family homes tend to offer more space than other types of housing, and it belongs to you alone. They may have large yards where children and dogs can play or where you can plant a vegetable garden. They may also have storage in attics, garages, or basements, which aren’t shared between multiple units.
• Privacy Single-family units that don’t share walls with neighbors offer more privacy. You are less likely to hear neighbors’ activities, and they are less likely to be bothered by yours.
• More design features Single-family homes may be available in a broader range of designs and layouts, from Cape Cods or colonials to ranch homes and contemporary designs. You can also make changes to the building or landscape design without input from neighbors with a shared interest in the space.
• Room to grow Single-family homes may offer you more options for additions if you have a growing family or if aging parents may come to live with you. For example, single family detached homes with larger plots of land may allow additions that wouldn’t be possible in condo units.
• May offer higher appreciation Single-family homes tend to appreciate in value more than condos and townhouses.
• Option to rent As the sole owner of a single-family home, you have the option to rent out the house if you decide to move and wish to hang on to the property.
While these factors are attractive, it’s important to weigh potential disadvantages of buying a single-family home as well. Here are some to keep in mind:
• More expensive Single-family homes tend to be more expensive than other types of homes. That can mean a larger down payment and higher closing costs, and your mortgage payments may be higher.
• More maintenanceUnless your single-family home is part of a homeowner association (HOA) that provides basic services, you’ll be in charge of all home maintenance like lawn mowing and roof repairs. You’ll either have to take the time to do it yourself or hire help.
• Possible HOA fees Planned developments usually require HOA fees to cover the upkeep of common areas and shared structures.
• Less income potential With multi-family homes, you have the option to live in one unit while renting out the others. This allows you to bring in regular income to cover the cost of the mortgage and maintenance expenses.
Finding a Single-Family Home
Before you start looking for a single-family home, you’ll want to first determine how much home you can afford. You might start by calculating mortgage costs and getting prequalified for a home loan; prequalification often only takes a few minutes and provides an estimate of how much you might be able to borrow and at what rate (without impacting your credit).
You’re probably already searching real estate listings online and noting the property types. You might also want to do some research on housing market trends, especially if you live in one of the nation’s real estate hot spots.
You may also want to engage a real estate agent. They have expertise in local housing and zoning laws, know whether a list price is fair or above or below average, and can help you negotiate the price of a home you’re interested in buying.
If there’s any question about how a house is zoned, you can often look up zoning information through a particular city’s website.
Recommended: First-Time Home Buyer’s Guide
Who Should Get a Single-Family Home?
Single-family homes are a good fit for people who can cover the higher price tag, want privacy and flexibility, and are willing to take on a lot of responsibility.
If you qualify as a first-time homebuyer, there may be help available to buy a single-family home in the form of down payment assistance and low- or no-interest loans.
If you’re looking for a more affordable home and don’t mind giving up some privacy, you might want to consider a condo or townhouse.
A condo is like an apartment but is available for purchase. These units share walls with neighboring units, but you generally won’t have to worry about maintaining the property.
A townhouse, on the other hand, has multiple stories and will share one or two walls with other units. Like condos, townhouses are typically less expensive than single-family homes. Unlike a condo, you’ll own the property that the townhouse sits on.
If you’re looking to invest in real estate, you might consider buying a multi-family home. While this will likely cost more than a single-family home, you may be able to recoup the added cost (and, over time, earn even more) by collecting rent from tenants. 💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show the real estate agent proof that you’re preapproved for a mortgage. SoFi’s online application makes the process simple.
If You’re Thinking of Purchasing a Single-Family Home, SoFi Home Loans Can Help
Single-family homes are one of the most popular real estate options and often what people envision when they think about achieving the dream of home ownership.
This type of property typically sits on a parcel of private property and doesn’t share walls with neighbors, affording you a high level of privacy. You generally have more control over making enhancements to your home than you have with other types of properties, and usually have access to extra storage, including exterior storage space like a shed or garage.
However, don’t forget to consider the added responsibilities and costs when deciding on the right type of home for you and your family.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
How much does a single-family home cost?
The median price for an existing single-family home — one that’s already standing, not new construction — was $387,600 as of November 2023, according to the National Association of Realtors.
How much do I need to build a single-family home?
The cost of building a single-family home (not including land) can range anywhere from $42,000 to $900,000-plus depending on the home’s type and size and where you build. On average, the cost to build a house in the U.S. is about $329,000.
Can you get a loan to build a single-family home?
If you’re planning to build a single-family home from scratch, you can apply for a construction loan. With this type of loan, money is usually advanced incrementally during construction, as the home-building project progresses. Typically, you only pay interest during the construction period. Once the construction is over, the loan amount becomes due, and it is converted into a regular mortgage.
Photo credit: iStock/Dean Mitchell
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Homebuyers looking to escape the hustle and bustle of city life may long for a quieter life in the country. But anytime you’re considering making a major lifestyle change, finances can become an issue.
If this sounds like you, you may be able to qualify for a USDA loan. This government-sponsored loan program focuses on houses located in designated rural and suburban areas.
What is a USDA home loan?
A USDA home loan is a type of mortgage for eligible rural and suburban homebuyers. It’s offered by the United States Department of Agriculture. USDA loans are issued through the USDA Rural Development Guaranteed Housing Loan Program.
One of the biggest draws of the Rural Development program is that it doesn’t require any down payment. So, you can purchase your own home with a minimal amount of cash.
If you think this sounds like a good opportunity, you may be right. Keep reading to find out the benefits of applying for a USDA loan.
What are the different types of USDA loans?
The USDA offers three main mortgage programs for people who want to buy or repair a single-family home in a rural area:
USDA Direct Loans: Also known as Section 502 direct loans, these loans are issued to qualifying low-income borrowers with interest rates as low as 1% with certain subsidies and no down payment is typically required.
USDA Guaranteed Loans: Also known as the Section 502 Guaranteed Loan Program, these loans are issued by USDA-approved lenders and offer 100% financing, low interest rates, and minimal down payments to eligible buyers.
USDA Home Improvement Loans: Also known as the Section 504 Home Repair program, these loans are given to qualified homeowners to repair, improve, or modernize their homes. They’re also given to low-income elderly homeowners to remove health and safety hazards. The home improvement loan is up to $$40,000 and grants are also available up to $10,000. Additionally, loans and grants can now be combined for up to $50,000 in assistance.
USDA Streamline Refinance: Those with an existing USDA loan may be able to take advantage of lower rates with a USDA refinance loan. For those who qualify, the USDA streamline refinance is an attractive option as it does not require a home appraisal or income documentation. However, to be eligible, you must already have a USDA loan.
How much can I borrow with a USDA loan?
The majority of loans offered by the U.S. Department of Agriculture (USDA) do not feature loan limits. Direct Loans are the only type of USDA loans with specific limits, but they are a small portion of all USDA loans. Therefore, it is unlikely that you will find any limits on your USDA loan.
For the USDA Direct Loan program in 2024, the loan limit is 766,550 in most parts of the country. However, in more expensive high-cost areas, the loan limits are higher.
4 Benefits of a USDA Loan
Listed below are the four biggest advantages of taking out a USDA loan.
1. No down payment
For many people, the thought of scraping together a down payment is the most significant barrier to buying a home. But with a USDA loan, there’s no down payment required. In comparison, you’ll need a 3.5% down payment for FHA loans and a minimum 5% down payment for conventional loans.
2. Low private mortgage insurance (PMI)
Anyone who buys a home with no down payment must purchase private mortgage insurance (PMI). The costs vary, but PMI generally costs between 0.5% to 1.0% of the total loan amount.
With the USDA mortgage program, you still have to purchase PMI, but the rates are lower than they are with a conventional loan.
3. Low credit requirements
USDA loans also come with more flexible credit requirements than what other lenders look for. If your credit score is at least 640, your application should be approved pretty quickly. And the program is available for borrowers that are short on credit history.
4. Finance your closing costs
When you buy a home, the lender charges closing costs for issuing the loan. The closing costs usually fall between 2% and 5% of the total loan amount. So if you buy a $200,000 home, you can expect to pay at least $4,000 in closing costs.
When you take out a USDA loan, you can roll your closing costs into the loan financing. This means you can finance your closing costs instead of paying them out of pocket.
How do you qualify for a USDA loan?
Taking out a USDA loan doesn’t mean you have to move to the middle of nowhere. There are a wide variety of properties eligible for purchase through the USDA loan program.
While you won’t find any homes located in a major metropolitan area, you may be able to find some in certain suburban areas. But, of course, the most extensive selection is available in rural areas since the purpose of the program is to strengthen these communities.
To find out if a home you’re interested in qualifies, simply input the address into the USDA website. The USDA does have strict requirements the home must meet to be eligible for the program, which we’ll discuss in more detail below.
See also: First-Time Home Buyer Grants and Programs
USDA Loan Requirements
If you can’t qualify for a conventional loan, you may be eligible for either a USDA guaranteed loan or a USDA direct loan. Here is an overview of the borrower requirements for USDA home loan programs:
You must be a U.S. citizen, non-citizen national, or qualified alien.
The home must be located in an eligible location.
You must be purchasing the home as your primary residence.
The loan must be taken out through a USDA-approved lender.
You must be able to meet the minimum credit requirements.
Income limits
USDA loan programs are designed to help low to middle-income families, so borrowers must meet certain income limitations. To qualify, your household income cannot exceed 115% of the median income in your area.
The income requirements for USDA loans are determined by county, so you can check the USDA’s website to determine the requirements in your area. You can also work with a USDA-approved lender to determine your eligibility.
Property Eligibility
The U.S. Department of Agriculture also puts certain restrictions on the type of property you can buy with a USDA loan. Here are the types of properties that are eligible for a USDA mortgage loan:
Single-family homes
New construction homes
Townhomes and approved condos
Planned Unit Developments
Approved modular homes
What credit score do you need for a USDA loan?
If you’re applying for a guaranteed USDA loan, there are a few basic credit requirements you’ll need to meet. The USDA doesn’t set a minimum credit score requirement, but your application will get processed much faster if your credit score is at least 640.
A credit score below 640 doesn’t automatically rule you out, but your application will go through stricter underwriting guidelines. This is to ensure you can handle the monthly payments.
And you’re less likely to be approved if you have any collections on your credit report in the past 12 months. However, you may be granted an exception if you can prove that your credit was damaged because of a medical issue or something outside your control.
And finally, a USDA loan may be a viable option for you if you’re still in the process of building your credit scores. Your application may be approved even if you have a limited credit history if you can supply other credit references, like utility payments or rent payments.
USDA Income Limits
Income limits are set on all USDA loans to ensure the USDA loan program benefits low to middle-income families. These income restrictions are determined by various factors, including the median income for your local city or county. You can check your income eligibility to find out if you qualify.
The size of your family also helps determine your eligibility. If you have a large family, then it’s expected you’ll need a more substantial income to live on, and you’ll receive more leeway.
There are also different tiers of eligibility, depending on the type of USDA loan you’re taking out. For example, USDA guaranteed loans call for a moderate income, whereas USDA direct loans require applicants to fall in the low-income category.
Stable Income
Finally, you must have a stable monthly income to be eligible for a USDA loan. Usually, you need to show a history of stable employment for at least 24 months.
If you have questions about your eligibility, you can contact a mortgage lender that specializes in USDA loans. Just be sure to ask so you don’t waste your time working with a lender who doesn’t understand the nuances of USDA loans.
Real estate agents that work in a rural area may also be able to point you in the right direction, since they’re likely to have more experience with clients utilizing these programs.
Are there any other eligibility requirements?
This article is mainly focused on the USDA’s requirements, but keep in mind, the USDA isn’t lending you any money. Each lender can apply its own requirements as long as they meet the USDA’s basic guidelines. Your lender will want a complete financial picture, as well as your credit history and current employment status.
And one of the guidelines surrounds PITI, which stands for principal, interest, taxes, and insurance. Each of these things are combined to form your total monthly mortgage payment.
This amount can’t be more than 29% of your pre-tax monthly income. So if you make $3,000 per month, your total monthly payment would have to be less than $900.
Debt-to-Income Ratio
Another common requirement is known as your debt-to-income ratio. This is when the lender looks at compares your income to your total monthly debt payments. Ideally, your debt-to-income ratio shouldn’t be higher than 41%.
So if your income is $3,000 per month, your total monthly debt payments should be less than $1,230. And remember, your mortgage will be included in the total debt payments. But you may qualify for a higher debt ratio if your credit score is higher than 680.
Bottom Line
With a USDA mortgage, you can purchase your dream home without having to save up for a down payment. However, not everyone will qualify for this program.
If you’re interested in taking out a USDA loan, you should start by finding out if you meet the income restrictions in your county. And you might consider working with an experienced USDA lender to find out if you’re a suitable candidate for the program.
USDA Loan FAQs
How does a USDA loan work?
USDA loans provide low-interest home mortgages to qualified borrowers. These loans are issued by the United States Department of Agriculture, and are designed to help eligible borrowers purchase homes in rural areas and some suburban areas.
To qualify for a USDA loan, borrowers must typically meet certain income and credit requirements, as well as have a debt-to-income ratio that is lower than the national average. Once approved, the loan is typically issued in the form of a 30-year fixed-rate mortgage, with the interest rate set by the USDA. Borrowers can then use the funds to purchase a home and make mortgage payments over time.
What’s the difference between FHA, VA, and USDA Loans?
FHA loans are mortgage loans insured by the Federal Housing Administration that are available to homebuyers with less-than-perfect credit and relatively low down payments.
VA loans are mortgage loans guaranteed by the U.S. Department of Veterans Affairs that are available to qualifying veterans and military members with competitive terms and no down payment.
USDA loans are mortgage loans offered by the U.S. Department of Agriculture that are available to low-income borrowers in rural areas.
All three loan types require mortgage insurance, but the payment requirements vary.
What is the interest rate on USDA loans?
The interest rate on a USDA loan varies depending on the type of loan, the lender, the borrower’s credit score and other factors. Generally, USDA loan interest rates range from 1.00% to 4.00%.
The current interest rate for Single Family Housing Direct home loans is 3.75%. This fixed rate is based on current market rates at loan approval or loan closing, whichever is lower.
If payment assistance is applied, the interest rate can be as low as 1%. The payback period can be up to 33 years, or 38 years for very low-income applicants who can’t afford the 33-year loan term.
What are the fees associated with a USDA loan?
The upfront guarantee fee is 1% of the amount of the loan, and this fee must be paid at closing. This fee is non-refundable and is not included in the loan amount.
In addition to the upfront fee, there is an annual fee, which ranges from 0.35% to 0.50%. This fee is calculated as a percentage of the loan amount and is generally due each year.
USDA home loans also have other typical closing costs associated with them, such as appraisal fees, title fees, and recording fees.