Home insurance is meant to protect your finances: your house, your belongings and your assets. But not all policies are created equal. What they cover depends on whether you own or rent, and whether the residence is a house, a condo or a mobile home.
Many homeowners insurance policies are based on a set of templates issued by the Insurance Services Office (ISO), which is why these templates are sometimes called ISO forms. (The Insurance Services Office is now part of analytics firm Verisk.) Although you may not see technical terms like “HO-3” or “named perils” when you’re shopping for a policy, knowing the different coverage types can help you better understand what you’re buying.
This guide breaks down the different types of home insurance policies to help you understand which policy is right for your needs.
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Named perils vs. open perils
Before diving into the different types of home insurance and what they cover, it’s helpful to understand how perils work. A “peril” is an event that can cause damage or loss to your home and your belongings.
Some parts of your home insurance policy may operate on a “named perils” basis, meaning you’re only insured against the specific events listed in your policy. Others may operate on an “open perils” or “all-risk” basis, meaning you’re insured against all events except listed exclusions.
Understanding what types of perils a home insurance policy covers is vital. Generally, open peril policies provide the most coverage.
Types of home insurance coverage
Standard homeowners insurance policies generally include these six types of coverage, unless otherwise noted in the policy:
Coverage type
What it does
Typical amount
Covers damage to the home and attached structures, such as a porch.
Enough to rebuild your home.
Covers stand-alone structures on your property, such as a fence or shed.
10% of dwelling coverage.
Pays to repair or replace stolen or damaged belongings.
50% to 70% of dwelling coverage.
Helps pay temporary living expenses while your home is being repaired.
20% of dwelling coverage.
Pays if you injure someone or cause property damage unintentionally or through neglect.
$100,000 to $500,000.
Pays to treat someone injured on your property, regardless of who’s at fault. It also pays if you, a family member or a pet injures someone away from your home.
$1,000 to $5,000.
The most common types of home insurance policies
Insurance providers typically sell several types of home insurance policies, each of which offers varying levels of coverage. It’s important to read the details of your policy to understand what is and isn’t covered.
HO-1: Basic form policy
An HO-1 policy is the most bare-bones type of home insurance. It generally covers the physical structure of your house. It may sometimes include coverage for other structures, personal property, additional living costs and liability.
An HO-1 policy typically covers damage caused by these 10 named perils:
Fire or lightning.
Windstorm or hail.
Explosion.
Riot or civil commotion.
Damage caused by aircraft or vehicles.
Vandalism.
Volcanic eruption.
Even if an HO-1 policy is available to you, many homeowners opt for an HO-3 policy instead because it offers more coverage.
HO-2: Broad form policy
HO-2 policies are sometimes known as “broad form” policies because they cover more perils than HO-1 policies, but their coverage is still limited. In addition to the 10 perils covered by HO-1 policies, the HO-2 policy adds coverage for:
Falling objects.
Weight of ice, snow or sleet.
Accidental overflow or discharge of water or steam.
Freezing of plumbing, heating or air conditioning.
Sudden and accidental tearing apart, cracking, burning or bulging of certain household systems.
Sudden and accidental damage from artificially generated electrical current.
If a peril that damages your house or belongings isn’t explicitly named in the policy, the loss won’t be covered.
Some HO-2 policies also provide personal liability coverage.
HO-3: Special form policy
An HO-3 policy is the most popular type of home insurance. It’s known as a “special form” or “open perils” policy. It insures the structure of your home against all causes of damage except those specifically listed as exclusions in your policy.
Here are common exclusions:
Earthquake.
Power failure.
War and nuclear accidents.
Intentional damage.
Government actions.
Birds, vermin, rodents or insects.
Damage caused by your pets.
Smog, rust or corrosion.
Wear and tear.
Pollution.
Personal belongings like furniture, electronics and clothes are covered on a “named perils” basis. That means only damage caused by events specifically listed in your policy are covered. These typically include:
Fire or lightning.
Windstorm or hail.
Explosion.
Riot or civil commotion.
Damage caused by aircraft or vehicles.
Vandalism or mischief.
Volcanic eruption.
Falling objects.
Weight of snow, ice or sleet.
Accidental discharge or overflow of water or steam.
Sudden or accidental tearing, cracking, burning or bulging.
Freezing of plumbing or HVAC systems.
Damage due to artificially generated electrical current.
🤓Nerdy Tip
You’ll typically need separate flood insurance or earthquake insurance if you live in an area that’s prone to these risks, as they are not covered by standard home insurance policies.
HO-4: Contents broad form policy
An HO-4 policy is commonly referred to as renters insurance. It’s designed specifically for individuals who are renting a home or an apartment. The main purpose of this policy is to cover your belongings, not the building itself.
An HO-4 policy safeguards your stuff — like furniture, clothes and electronics — against the same 16 perils covered by an HO-3 policy. It also includes personal liability and additional living expenses coverage.
The actual building you live in is not covered under your HO-4 policy. It’s your landlord’s responsibility to insure the structure of the building and to have it fixed if it’s damaged.
HO-5: Comprehensive policy
An HO-5 policy is like the gold standard of home insurance. It’s also called a comprehensive policy because it typically offers higher coverage limits for personal belongings and personal liability than an HO-3 policy.
An HO-5 policy covers your personal belongings on a replacement cost basis. So if something happens to them, you get the amount it costs to replace them, not just their current depreciated value. In addition, an HO-5 policy covers your belongings on an open perils basis. It also provides coverage for loss-of-use and medical payments for others.
HO-6: Unit owners policy
An HO-6 policy is for condo owners. It’s often called “walls-in coverage” because it protects what’s inside your condo, like the floors, ceilings, walls and any renovations you’ve made. It insures against the same perils as an HO-3 policy and includes coverage for your personal belongings, additional living expenses and personal liability.
But here’s the catch — this policy doesn’t cover the entire building or common areas. That’s usually handled by your condo association’s insurance. You pay for this through your condo or HOA fees. Check what your association’s policy covers to avoid any gaps or overlaps.
HO-7: Mobile home policy
An HO-7 policy is for mobile homes. It includes coverage for your home, your personal property, other structures, loss of use, personal liability and medical payments.
Similar to HO-3 policies, HO-7 policies work on an open perils basis for your mobile home’s structure and a named perils basis for your belongings. Read more about mobile home insurance.
HO-8: Modified coverage policy
HO-8 insurance is for homes more than 40 years old where it might cost more to rebuild than the house is worth. This includes historic houses or ones built in unique ways.
HO-8 insurance covers your dwelling and personal property on a named perils basis. Instead of paying the full replacement cost for damages to your home’s structure, an HO-8 policy typically reimburses the actual cash value. This means it pays you what your home is worth in cash at the time of the claim, not what it costs to rebuild.
HO-14: Contents comprehensive policy
The HO-14 policy is an advanced version of the traditional HO-4 renters insurance. Unlike the HO-4, which covers named perils, the HO-14 operates on an open perils basis, meaning it covers all risks unless they’re specifically excluded. Also, while the HO-4 provides actual cash value coverage, the HO-14 insures your items at their full replacement cost.
HO-14 insurance may come with unique features like coverage for home-sharing activities, a $500 allowance for bed bug treatments and a $300 provision for hard drive data recovery.
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The difference between HO-3 and HO-5 policies
Both HO-3 and HO-5 policies cover your home’s structure, personal belongings, liability, medical payments and additional living expense coverage. The big difference is how they insure your belongings.
HO-3 policies use open perils for the house’s structure but named perils for personal belongings. If the policy doesn’t specifically exclude a risk for the house, it’s covered. But for belongings, it only covers listed events.
HO-5 policies are more comprehensive. They use open perils for both the home and personal belongings, covering all risks unless specifically excluded. Because HO-5 offers broader coverage, it’s often more expensive than HO-3.
After last Friday’s jobs report, there wasn’t anything on the event calendar that demanded obvious attention until next week’s CPI. The Treasury auction cycle was the thing that traders/analysts talked about because that’s the only thing that was remotely worth talking about. To be fair, there was obviously a pop after the 30yr auction, but it was a stunningly bad auction. Moreover, it was traded back out by the next morning (today). Bonds drifted sideways to slightly weaker on Friday for no particular reason and we’re not interested in trying to fabricate any reasons in light of the entire week’s trading range remaining inside a single day’s trading range from last Friday.
Consumer Sentiment
60.4 vs 63.7 f’cast, 63.8 prev
1yr inflation expectations
4.4 vs 4.2 prev
5yr inflation expectations
3.2 vs 3.0 prev
10:52 AM
Slightly stronger overnight but giving up some gains early. 10yr still down 3.4bps at 4.598. MBS up 2 ticks (0.06).
12:01 PM
Weaker into the PM hours. MBS down 1 tick (0.03) on the day and a quarter point from highs. 10yr down 2 bps at 4.612
01:22 PM
New lows for MBS, but distorted by illiquidity. 6.0 coupons showing more than a quarter point of losses, but probably less than an eighth after factoring out the wide bid/ask. 10yr up to unchanged levels on the day at 4.63.
04:16 PM
MBS bounced back from illiquidity, heading out with 6.0s down only 2 ticks (.06). 10yr yields have been boring by comparison: down 3.5bps currently at 4.736.
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Lender Credit, HELOC, PPE, AI Tools; Wholesale and Correspondent News; Millennial Refi Interview
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Lender Credit, HELOC, PPE, AI Tools; Wholesale and Correspondent News; Millennial Refi Interview
By: Rob Chrisman
Fri, Nov 10 2023, 11:47 AM
My cat Myrtle is enthralled with Artificial Intelligence (AI). Okay, I made that up. She’s only interested to the extent that it impacts the supply of Icelandic Sea Trout into her bowl. AI is a hot topic these days, and in fact today’s Mortgage Collaborative’s “Rundown” at noon PT, 3PM ET, features David Karandish, the CEO of Capacity, discussing that and other trends in mortgage tech. A trend continuing to rifle through the ranks is mergers and/or acquisitions as a handful of well-known residential lending companies crisscross the country in search of small institutions that fit their business models and are ready for a change. Sometimes discretion is the better part of valor in terms of staying in business: Unfortunately, yet another trend is a lack of profitability, especially among small and mid-sized lenders who have gone through their 2020/2021 savings and sold their servicing. Lastly, volume trends aren’t good either: According to Curinos, October 2023 funded mortgage volume decreased 19 percent YoY and 5 percent MoM. (Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures. We drill into this data further here.) Today’s podcast can be found here, and this week is sponsored by nCino makers of the nCino Mortgage Suite. With three products tailored to the needs of the modern mortgage lender, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics unite the people, systems, and stages of the mortgage process. Hear an interview with Millennial homebuyer Megan Sinclair on her lender choices behind her third time financing a residence.
Lender and Broker Software, Products, and Services
They’re back! Foreclosures are fast approaching their previous levels. Today’s market has changed significantly and doesn’t favor struggling homeowners. With trending interest rates well above those experienced over the past several years, relief for borrowers facing default will be significantly strained. Before thinking foreclosures are not an immediate concern, read Clarifire’s recent blog, “Foreclosures are Back!” to understand what’s happening, why this environment is different, and what servicers can do to stave off disruption. It’s time to experience the capabilities needed to manage borrower impact and your cost to service with CLARIFIRE®, truly BRIGHTER AUTOMATION®, delivering a better approach, better results, and better software, today!
Are you ready to take your lending operations to the next level? Join the live event on November 16th @ 2pm EST where we unravel the secrets to optimizing your processes, systems, and resources to achieve unparalleled productivity and cost-effectiveness. You’ll even learn how to save up 80 percent on several of your operations costs through specific automation and optimization strategies. Join industry leaders Taylor Stork, CMB of Developer’s Mortgage, Josh Friend, CEO of Insellerate, and Kirill Klokov, CEO of TRUV. They are ready to share proven strategies to ensure your operations and borrower interactions are optimized for success. Join now!
What’s better than the holidays? Never answering the same question twice. Give yourself (and your team) the gift of Capacity, so in 2024 you can spend less time struggling through the origination process and more time closing loans. Support internal teams, current borrowers, and prospects with secure integrations to over 150 systems, including Encompass and Total Expert. Capacity is designed to streamline lending as your personal assistant. On your behalf, it can read GSE guidelines, retrieve loan information, and assist current and prospective borrowers. Turn a costly, repetitive process into an affordable, scalable one. All you have to do? Ask Capacity. Don’t know where to start? Whether you’re an AI newbie or ready to join the mortgage AI revolution, we’re here to help. Reach out today to ask us about our AI Assessments, or book a demo.
In this market, hustle is everything. You can’t afford to waste a single deal, or a single minute. That’s why ReadyPrice has launched Shop, Lock, Deliver, an innovative platform designed to help independent mortgage brokers and their lenders save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, all on a single platform, at no cost to brokers. It’s already helping brokers around the country thrive and compete in the toughest market. Multiple lenders. One platform. Zero b.s. Come check us out today.
TPO Products for Brokers and Correspondents
Loan officers! You’ve likely heard that The Loan Store pays a whopping 200 bps per HELOC…but do you know HOW to sell a HELOC? You’re in luck: TLS is hosting the second of its 7-part HELOC Mastermind Series next week. This series features Loan Officers sharing their tips/experiences on how they’re using HELOCs to stay in front of clients and generate additional income. Next live event is Thursday, Nov. 16 at 1 p.m. EST. Register here to attend!
Do you need new affordable mortgage solutions in the communities you serve? Rocket Pro TPO’s Purchase Plus program offers first-time homebuyers in many low-income communities $5,250 in lender credits to use toward down payments and closing costs. The program is available in six metro areas: Atlanta, Baltimore, Chicago, Detroit, Memphis, and Philadelphia. Additionally, the introduction of ONE+ by Rocket Mortgage provides an incredible opportunity for Rocket Pro TPO partners and real estate professionals. With this product, eligible clients provide 1 percent toward the down payment and the other 2 percent down payment requirement is covered… Plus clients are not responsible for paying the mortgage insurance! Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO to learn more.
Wholesaler and Correspondent News
As a quick aside, in news for any originator, Down Payment Resource is highlighting 61 down payment assistance (DPA) programs offering up to $120,000 in funds for Veterans and service members. In addition to these programs, Veterans and service members are also eligible for the other 2,256 DPA programs available nationwide.
Overall, the big are getting bigger, often at the expense of smaller companies. Inside Mortgage Finance reports that the top 25 mortgage producers in the second quarter generated $231.95 billion, a 33.2 percent sequential increase. In the second quarter “United Wholesale Mortgage reclaimed the top ranking, which it had lost by a narrow margin to PennyMac in the first quarter, with $31.85 billion in second-quarter production.” In terms of purchase biz, AmeriHome Mortgage and Guaranteed Rate were both up more than 50 percent from the first quarter. Chase nearly doubled its purchase-loan originations after assimilating First Republic Bank into its operations.
Reports show that Cenlar FSB, and Dovenmuehle ruled the roost in terms of subservicing, with $860 billion and $508 billion, respectively.
United Wholesale Mortgage came out with its third quarter results: Revenue of $677.1 million, with originations of $29.72 billion. (The 4th quarter production estimates run from $19-26 billion, which would put 2023 production at $103 to $110 billion range.)
Nations Direct Mortgage has just lowered its NonQM 2nd underwriting fee from $1499 to $995! In addition, Nations Direct Mortgage is pleased to announce their Veterans Special for the month of November! Honoring those who served with a $500 credit at closing on all VA loans submitted in November.
With Amendment No. 7 to DR-4724, issued on 10/13/2023, FEMA provided an Incident Period End Date of 9/30/2023, for a Hawaii county affected by wildfires and high winds from 8/8/2023 to 9/30/2023. See AmeriHome Mortgage announcement 20231006-CL for inspection requirements.
As part of its commitment to maintain the highest quality and security of its client’s data, Pennymac will begin to use Multi-Factor Authentication (MFA) technology to log into the P3 portal. In the coming days, all P3 users will receive an email to complete the pre-registration process. View the Pennymac Announcement 23-71 to review.
United Wholesale Mortgage, (UWM) announced eligibility expansion for its Investor Flex DSCR loan program by allowing borrowers to close in a Limited Liability Company (LLC). “This enhancement allows borrowers looking to expand their real estate portfolios an additional option to separate their personal properties and their investment properties while benefiting from the faster, cheaper, and easier experience of the wholesale channel. Investor Flex allows borrowers to qualify for investment properties based on perspective monthly rental income of the subject property rather than their current income. Investor Flex was later expanded in July 2023 with four additional DSCR loan options. Additional details on the Investor Flex program can be found here.”
Angel Oak Mortgage Solutions shared an innovative solution that could change the way you help your clients achieve homeownership dreams. Angel Oak non-QM Bank Statement Mortgage, tailored specifically for self-employed individuals and business owners, is now accepting Profit and Loss (P&L) statements as a valid form of income verification.
Capital Markets
Why do markets still seem to underestimate the Fed’s resolve? U.S. Federal Reserve Chair Jerome Powell said yesterday in prepared remarks that the central bank will continue to move carefully but won’t hesitate to tighten policy further to finish off inflation. Fed Governor Bowman said that she would support another rate hike in the event of stalling progress on inflation, and Atlanta Fed President Bostic said that the road to 2 percent will still include some “bumps along the way.” Conversely, Richmond Fed President Barkin said that in aggregate, we are still not seeing the full effects of policy.
Even with policymakers trying to cool expectations for rate cuts as the market underestimates their resolve on inflation, Fed funds futures are currently pricing in a less than 10 percent chance of a rate hike in December, and nearly a 20 percent chance of a rate cut at the March meeting. And that is with bond markets seemingly in a “sell any rally” position. Before Fed Chair Powell expressed doubts that policy rates were “sufficiently restrictive,” Treasury yields spiked after an auction of $24 billion in 30-year bonds met much weaker demand than sales of 3-year and 10-year notes over the past two days
On the housing front, NAR reported that single-family existing-home sales prices rose in 82 percent of measured metro areas (182 of 221 areas across the nation) in the third quarter, up from 58 percent in the previous quarter. The national median single-family existing-home price grew 2.2 percent from one year ago to $406,900, while the monthly mortgage payment on a typical, existing single-family home with a 20 percent down payment was up 19.2 percent from a year ago to $2,192. Twenty-five markets, or 11 percent of all markets, experienced double-digit annual price appreciation (up from 5 percent in the prior quarter).
Today’s economic calendar begins later this morning with preliminary November Michigan sentiment where inflation expectations will be closely scrutinized. Two Fed speakers are currently scheduled: Dallas President Logan and Atlanta President Bostic. We begin Friday with Agency MBS prices worse a few ticks (32nds) from Thursday’s close and the 10-year yielding 4.64 after closing yesterday at 4.63 percent.
Employment, Companies Wanted, and Transitions
Kind Lending is seeking a candidate for the position of Director of Non-QM. As Director, you will be responsible for spearheading the growth of our non-QM division. The ideal candidate will have a deep understanding of non-QM lending, and a proven track record of success in the industry. In this role, you will be responsible for program pricing for multiple channels, loan sales, trading, and hedging, overseeing analytics and pricing engines, as well as margin management and reporting for non-QM production. “At Kind Lending, we pride ourselves on providing our partners and customers with the best possible mortgage lending experience. As the Director of Non-QM, you will play a key role in achieving this goal. If you are a motivated and experienced professional looking for a new opportunity, we encourage you to apply today: Click here to learn more about this opportunity!
“Independent Mortgage Banker owners: If you are uncertain how you will survive this winter if rates remain higher, please call me direct to discuss a win-win opportunity. Equity Resources, Inc. is an established mortgage banking company that has been successfully in business for 30 years. We are privately owned and continue to look at growth opportunities. We offer a full marketing team and a media production team to provide best-in-class support to our loan officers and partners. Our history and culture are exceptionally important so let’s have a conversation to see if we may be a fit. We are large enough to offer exceptionally sharp pricing and products, yet we have a boutique feel where you may talk to the owner of the company at any time. We have a successful history of incorporating other companies into our model. Please contact Tom Piecenski, EVP of Sales.”
Mortgage Machine Services, an industry leader in digital origination technology to residential mortgage lenders, announced that Crystal Stanton will manage customer success and onboarding. “Crystal will onboard new Mortgage Machine customers, leveraging a success-centric approach with a commitment to white glove service to ensure a smooth experience and productive outcome.”
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Real estate across the country has certainly been crazy over the past three years, but the housing market in Ohio still looks pretty sane. This isn’t California or Massachusetts, and that’s a good thing for house-hunters: Homes in the Buckeye State are significantly more affordable than in many other states around the country, and prices here tend to be far below national levels. Read on for everything you need to know about the cost to buy a house in Ohio.
How much does it cost to buy a house in Ohio?
The average price of a home in Ohio was $275,461 as of September 2023, according to statistics from Ohio Realtors. That’s quite a bit lower than the nationwide median price for the same month, which was $394,300.
Depending on where you’re hoping to call home in the state, though, your budget may look a bit different. Consider the average sale prices in some of the most popular cities: In Cincinnati, the average was $319,310; in Columbus, $348,569; and in Dayton, $261,583.
Outside the bigger cities, you’ll find a smaller price point. For example, the average sale price was around $203,000 in Ashland and Athens, and less than $200,000 in both Mansfield and Lancaster.
It’s helpful to focus on how a home’s price tag will translate into your monthly payments as its owner, especially with today’s high mortgage rates. Consider the monthly obligation on a $275,000 home, assuming a 20 percent down payment on a 30-year mortgage with a 7.5 percent interest rate: According to Bankrate’s mortgage calculator, that scenario would result in principal and interest payments of $1,538 a month (not including the additional costs of property taxes and homeowners insurance).
Down payment
How much money have you saved for a down payment? This upfront cost is crucial, because the more you are able to pay upfront, the less you have to borrow.
You don’t have to put down 20 percent, necessarily, although that is the magic number to avoid paying an extra monthly premium for private mortgage insurance. Here are the minimum down payment requirements for some of the most popular types of home financing (if you qualify):
Conventional loans: 3 percent
FHA loans:5 percent with a credit score of at least 580, or 10 percent with a credit score between 500 and 579
VA loans: No down payment required for qualifying military service members or veterans
USDA loans: No down payment required if you buy a rural property that meets specific criteria
One piece of good news for first-time buyers: Ohio has some generous first-time homebuyer programs that can help you cover your down payment and closing costs. You’ll need to meet certain qualifications for credit score, income and purchase price to be eligible.
Closing costs
According to data from Core Logic’s ClosingCorp, closing costs in Ohio add on another 2 percent of the purchase price — approximately $5,500 on an average-priced $275,461 Ohio home. That amount isn’t all coming out of your pocket, though. Closing costs are split between buyers and sellers.
Costs that are the buyer’s responsibility will include a variety of fees charged by your lender for things like a credit check and loan origination, as well as a required appraisal of the home’s value. You’ll also want to get a home inspection to verify the home’s condition. Lenders typically like to see a cushion that will keep you protected in the event of an emergency, too, so make sure you set aside some extra cash in reserve.
Cost to move
Don’t forget about the additional expense of moving all your stuff to your new Ohio home. According to HomeAdvisor, the average cost of a local move is just over $1,700. If you’re moving long-distance to get to Ohio, though, you’ll need to set aside a lot more money. A cross-country move has an average price tag of $4,617.
Homeownership costs
Once you buy a house in Ohio, you’ll need to be prepared to pay for its upkeep. While there’s no crystal ball for home maintenance costs, State Farm advises homeowners to budget between 1 and 4 percent of their home’s value for annual upkeep. On an average-priced Ohio home, that means you should plan to set aside up to $11,018 each year for upkeep.
You’ll also need to plan for property tax costs. In Ohio, the typical homeowner paid $3,235 to the government in property taxes in 2022. And don’t forget to budget for your homeowners insurance coverage, too, as well as HOA fees if your new home is part of a homeowners association.
Reducing the costs to buy a house in Ohio
Buying a house can seem overwhelmingly challenging, especially with today’s high mortgage rates. Consider these options to reduce your costs:
Ask for seller concessions: Across the country, more sellers are agreeing to cover a portion of the buyer’s closing costs, according to a report by Redfin. Don’t hesitate to ask a seller if they’re willing to help out with some of your costs. They don’t have to say yes, but they also don’t want to see you walk away from the deal.
Cast a wide net: If you have a flexible work arrangement that doesn’t require you to be in one specific location, look at cheaper locations beyond where your job is based. And if you don’t need a huge amount of space, a condo or townhouse is a great way to achieve homeownership for a lower price than a single-family home.
Hold out for longer: It’s OK to press pause if you think now just isn’t the right time. Mortgage rates are the highest they have been in more than two decades. There’s no guarantee they’ll come down, but taking some time to build your savings and your credit score while you wait might not be a bad idea.
Next steps
While Ohio’s home prices are certainly more appealing than many other parts of the country, buying a house here is not necessarily easy. For example, Redfin data shows that the typical home in Columbus gets four offers, which shows that the Buckeye housing market can feel just as competitive as Big Ten football. With that in mind, make sure you have an experienced local real estate agent on your team.
FAQs
As of September 2023, the average sale price for a home in Ohio was $275,461, according to data from Ohio Realtors.
No, they are increasing. Between September 2022 and September 2023, the average sales price in the Buckeye State rose 5.9 percent, according to Ohio Realtors data.
Yes — buyers pay some portion of closing costs in every state, including Ohio. These typically include an array of fees charged by the mortgage lender, among others.
While it’s possible to accuse mortgage rates of experiencing volatility over the past few days, this week was exceptionally calm compared to last week. So “everything’s relative,” and relatively speaking, that’s a win.
Here’s a snapshot of the action as told by 10yr Treasury yields, which tend to be moving in the same direction as mortgage rates:
As the chart points out, Thursday’s 30yr bond auction brought this week’s only instance of excess volatility. This refers to The Treasury Department’s regularly scheduled auctions of US debt–some of the only interesting items on this week’s event calendar as far as rates were concerned.
In general, Treasuries are the tour guides for the bonds that drive mortgage rates (MBS or mortgage-backed securities). They tend to hang out closer to the tour bus while MBS go off in search of adventure, but everyone is generally moving to the same places at the same time.
In other words, a big, volatile jump in Treasury yields often suggests the same for mortgage rates. Fortunately, this particular jump wasn’t that big, and the 30yr Treasury bond is less correlated with mortgage rates than 5 or 10yr Treasuries. The result was only a modest increase in rates on Thursday and not one that erased too much of the recent improvements.
Of course we should remember that everything’s relative…
The chart above is not intended to rain on any parades, but merely to put them in context. It shows 3 previous instances of rates appearing to top out and push back against long term highs only to be persistently dragged higher. All that to say: it’s promising to see rates mostly holding last week’s improvement, but as far as long journeys go, it’s best viewed a solid first few steps.
In order to continue the journey, the bond market (which dictates rates) will need to see the same things it’s been wanting to see: lower inflation, softer economic data, and for the Federal Reserve to be seeing the same things. This week was very light with respect to data–especially inflation data–but there was an anecdotal mixed bag on Friday in the form of the Consumer Sentiment Survey.
Consumers were more downbeat overall with the sentiment index falling to 60.4 from 63.8 previously. This is LOW territory–not as low as we’ve seen recently, but nonetheless in line with some of the worse levels in more than 10 years.
In and of itself, low sentiment would be good for rates because downbeat economic data tends to suggest slower growth and lower inflation. But if inflation expectations are contributing to the pessimism, it cancels out the good news for rates. Incidentally, the same survey has an “inflation expectations” component for both 1yr and 5yr time frames. The 5yr is fairly boring, but here’s the 1yr:
Consumers aren’t crystal balls, but the Fed does consider consumer inflation expectations in its assessment of inflation. Fortunately, this isn’t the only place they look for that data and Fed Chair Powell has recently mentioned that other indicators of inflation expectations are showing much more promise. Beyond that, this data series tends to be overly-correlated with fuel prices (although there is an odd and notable divergence from that trend at the moment):
Ultimately, consumer inflation expectations are a sideshow compared to the top tier inflation data. The Consumer Price Index (CPI), for example, has proven capable of rocking the rate market more than almost any other economic report apart from the jobs report. And we won’t have to wait long for the next installment (this upcoming Tuesday).
The Fed has been clear and we should take them at their word that rates could be done moving higher if inflation and growth continue to cool, but that rates could easily move right back up if the data surprises to the upside.
All I wanted for Thanksgiving and Christmas was just a few weeks of active inventory growth between 11,000 – 17,000. But even with mortgage rates getting as high as 8%, we’ve yet to hit within that range. With seasonality kicking in, it doesn’t look good for me this year.
Last year, according to Altos Research, the seasonal peak for housing inventory was Oct. 28. We might have reached the peak in inventory this week.
Weekly inventory change (Nov. 3-Nov. 10): Inventory rose from 566,882 to 566,941
Same week last year (Nov. 4-Nov 11): Inventory fell from 575,798 to 572,347
The inventory bottom for 2022 was 240,194
The inventory peak for 2023 so far is 566,941
For context, active listings for this week in 2015 were 1,135,887
The one positive data line for inventory in 2023 is that new listing data has formed a bottom, and no matter how high mortgage rates have gone, we haven’t seen a brand-new low. Seven weeks ago, I said on CNBC that we should be forming a bottom with some flat year-over-year growth prints coming in the second half of 2023. We saw some good growth this week, and hopefully, in 2024, we can close the gap and get back to 2021-2022 data on new listings. That is the critical period for new listing data to grow; remember, most sellers are buyers.
Traditionally, one-third of all homes take price cuts before they sell. When mortgage rates rise and demand decreases, the percentage of homes with price cuts can grow. This is the crazy stat for 2023: even with higher home prices and rates recently, we haven’t been able to catch up to price cuts in 2022 when home prices were falling month to month.
Even as mortgage rates got to 8%, we have consistently been 4% below last year’s levels of price cuts. This explains why home prices fell last year, with crashing sales and a higher percentage of price cuts. This year’s home sales have been falling more slowly, and we have fewer price cuts, so prices have stayed firmer compared to 2022 levels.
2023: 39%
2022: 43%
2021: 28%
Mortgage rates and the 10-year yield
Mortgage rates started to fall on Oct. 23 and went from 8% to 7.38% on Nov. 3.Last week, mortgage rates rose toward 7.56%. We did have a lousy bond auction that sent the 10-year yield higher along with mortgage rates. The 10-year yield got as low as 4.48% before heading 18 basis points higher. In addition, Federal Reserve Chairman Powell gave a presentation where people believed his talking points were hawkish, but still, the real deal this week was the bad bond auction.
The history of mortgage rates and the 10-year yield has been that once the Fed is done hiking rates, the bond market rallies and mortgage rates head lower. So the question is, have mortgage rates peaked and the next move will be to under 7%, not over 8%? I believe this will be the case if the economic and labor data gets softer because the Fed has expressed concern about long-term rates being this high. However, this has always been about the labor market and jobless claims data.
Purchase application data
Purchase application data was up 3% versuslast week, making the year-to-date count 19 positive prints, 23 negative prints, and one flat week. If we start from Nov. 9, 2022, it’s been 26 positive prints versus 23 negative prints and one flat week. Now that we are past Nov. 9, 2023, we can retire this data, as this was the date I believed the housing market dynamics shifted last year.
The week ahead: It’s inflation week and housing starts
We will get CPI and PPI inflation data this week, and the core CPI data might be a bit more firm than some people want to see due to an uptick in medical services data. We will also have retail sales, which came in a big beat last month.
For housing, the builder’s confidence and housing starts are also on tap this week, so it should be a fun week! Another variable to deal with: Moody’s downgraded the U.S. debt to negative on Friday night so let’s see what reaction we get from that move on Monday. We might see some bond market volatility Monday morning from the downgrade, but this should be a short-term event.
Listening intently at the discussion were AIME members attending the group’s sixth annual FUSE conference, a three-day event featuring various panel discussions of interest to industry players, a trade show and motivational speeches from key figures. This year’s iteration of the gathering came amid considerable challenges in the industry, chiefly high mortgage rates fueled by … [Read more…]
Some folks might think of Milwaukee as the quieter, cheaper city to live in that’s “close enough” to Chicago, but this city is so much more than a bedroom community. It’s also not just a brewery city for the rest of us.
Milwaukee has its quirks but she’s one of the nicest waterfront cities on Lake Michigan with loads of Milwaukee secrets and unique hot spots.
There are tons of Milwaukee facts you should know about this city if you want to think of yourself as a true local. Check ’em out.
Milwaukee facts you really ought to know if you want to call yourself a local
1. The first Milwaukee fact is all about winter sports, specifically ice skating. The “Slice of Ice” skating rink in Red Arrow Park downtown is larger than Times Square! The rink allows up to 100 skaters comfortably around the ice at one time.
2. Milwaukee goes by many nicknames. Some of the most well-known include The Mil, Miltown and Brew City. You might also hear mention of Mildoggy, Cream City, Ma-waukee or Milburb, too.
3. Brew City is home to the world’s only Harley Davison museum. Why? Well, a teenager who worked at the town’s bicycle factory (Meiselbach) got the itch for something “better” and built himself an engine, which he attached to a standard bicycle frame. That kid was William S. Harley and he joined forces with childhood friend, Arthur Davidson to create the Harley-Davidson Motor Company. Milwaukee is where the motorcycle was born.
4. The Milwaukee Public Museum is home to the planet’s largest known dino skull – a T-rex skull, accompanied by a full-size replica of the beast’s body.
5. The same museum happens to have been around since 1892, though in a bit more modest form. The museum is home to over 4 million artifacts and specimens, too, making it a pretty impressive history museum for a smaller city like Milwaukee.
6. Cheeseheads might tell you Wisconsin and Milwaukee are all about the dairy and the football, but the town’s nickname of Cream City actually has nothing to do with the dairy industry. The nickname actually refers to the local clay. The area is rich in limestone and magnesium, resulting in beautiful bricks.
7. Milwaukee is known as the frozen custard capital of the world. The city has the largest gathering of frozen custard shops, selling that egg-yolk-based, rich, creamy version of “ice cream” so many of us love loading up with toppings and mix-ins. If you haven’t had custard concrete yet, you’re seriously missing out.
8. Milwaukee didn’t just give us the motorcycle, this magnificent city gave the world the QWERTY typewriter, the precursor to our contemporary computers and keyboards. The inventor, Christopher Latham Sholes, moved to Milwaukee to begin writing for a local paper and decided he needed a typewriting machine to keep up with the workload. So, now we have the typewriter.
9. Milwaukee’s art museum moves more than hearts and souls. It literally moves. Well, part of it does, anyway. The museum is one of the few in the world that has an intentionally moveable part. The wings of the “Calatrava” open in the morning to welcome visitors, then close up at night. It’s worth popping by for a watch, even if you don’t go inside.
10. Another creation birthed in Milwaukee is Carmex lip balm. In the 1930s, the creator, Wilfred Woelbing, whipped up his first batch on his home stove to relieve cold sore pain. Realizing he’d found a good thing, he started selling the product out of the trunk of his car. Eventually, he opened a facility for manufacturing it, and the lip balm is still being created right here in one of the Milwaukee suburbs.
11. What goes well with brewskies? A bowling alley, of course. And Milwaukee happens to have the oldest certified bowling alley in the U.S., located inside the Holler House on Lincoln Avenue. There are only two lanes, though, players score by hand and pinsetters still tend the lanes. You’ll have a pretty long wait to play, but if you’re into booze, you can sidle up to the bar and have a fabulous gab with the bartender. While there, you can check out another bizarre claim to fame: a collection of bras that hangs from the ceiling, started about 50 years ago by the beloved Marcy Skawronski, the late owner of the establishment.
12. How about this Milwaukee fact: There’s a lake under the city. The city, as some folks think, isn’t built on swampland, but over Lake Emily, located under the old Northwestern Mutual home office.
13. Cream City is the unfortunate location of the attempted assassination of former President Teddy Roosevelt, in 1916. Thankfully, his glasses cases and the manuscripts in his chest pocket saved his life. And, undaunted, the former president went on with his speech, despite having a bullet in him.
14. Milwaukee wasn’t always spelled the current way. It was “Milwaukie” in early records. The name itself comes from an Algonquin word, “millioke” which means “good,” “beautiful” and “pleasant land.”
15. The Bronze Fonz, a bronze statue of the character Arthur Fonzarelli from “Happy Days,” stands along the Milwaukee RiverWalk. The city’s proud of its most popular fictional character.
16. Another unofficial Milwaukee nickname is City of Festivals. The town knows how to party! With cultural events along the lake at the Henry Maier Festival Park and the incredible Summerfest, which has earned itself the “World’s Largest Music Festival.” As many as 900,000 folks show up to the amazing event every year. Yeah, approaching a million people at a single party!
17. Another invention to come out of Milwaukee is the answering machine. Joseph Zimmerman and George Danner created the first successful answering machine right in Milwaukee – and some of you reading this probably don’t even know what one of those is.
18. The Polar Plunge has been popular in Milwaukee on New Year’s Day since 1916. Folks strip down and jump into the freezing water of Lake Michigan. Some folks dress up in crazy costumes to up the insane factor for a little extra fun.
19. The city was pretty bummed when their baseball team The Braves moved south to Atlanta in 1966. But in 1969, the Seattle Pilots hit the bankruptcy wall and moved to Brew City to become the Milwaukee Brewers.
20. Located on the campus of Marquette University, there’s a tiny chapel named the St. Joan of Arc Chapel — and it’s older than America’s first official establishment by 300 years! The French village of Chasse built the tiny religious building and sent the ruins of the chapel to America after World War I where it was rebuilt in New York. The owners then gifted the chapel to Marquette University. The building was painstakingly transferred to the campus and installed. It’s the only medieval structure in the Western hemisphere that’s actively used for holding mass services.
21. Random Milwaukee fact: The city is home to the world’s largest collection of antique microphones. You can find them at an electronics store on East National Street — all 1,000+ of them! There are some pretty cool ones here, including one used during an expedition to Antarctica. There’s also an original telephone from Alexander Graham Bell, from 1876.
22. The Oriental Theatre of Milwaukee is a huge fan of the Rocky Horror Picture Show. In fact, the theatre has run the film every single month since January of 1978!
23. The American Family Field, where the Brewers play, has a retractable roof. It’s pretty cool to watch if you get the chance.
24. The walking path along the river downtown has a unique claim to fame: Its skywalk is the only one in the world that exists over boat traffic.
25. By the 1850s, Milwaukee was heavily inhabited by German immigrants and already boasted more than two dozen breweries. Some of them are still in business today, like Pabst, Miller and Schlitz.
26. And speaking of Pabst, in the Brewery District, located around the original site of the Pabst Brewery, is a vibrant community now with loads of Milwaukee apartments for rent here along with loads of nightlife.
27. In the early 1900s, Milwaukee ditched the idea of the two most popular political parties in the country and went with a third option: the Socialist Party. They voted in a Social mayor, Emil Seidel, then again twice more with other social mayors.
28. And speaking of mayors, Milwaukee has only had four mayors since 1960, including interim Mayer Marvin Pratt who only served for three months!
29. You’d think with all the breweries and beer in Beer City, Prohibition wouldn’t have been a thing. Well, you’d be wrong. The 1920s Prohibition laws nearly sank the city. The breweries, however, managed to find a way around this by serving up beer to their Catholic patrons eating fried fish on Fridays, as a means of “washing down” the fish fry. For those breweries wanting to abide by the laws, they served up soda, non-alcoholic beer, candy and even started snow plowing for survival.
30. The area surrounding Milwaukee was originally home to several Native American Nations, including the Menominee, Fox, Ho-Chunk (Winnebago), Sauk and Potawatomi.
31. The first Europeans to come through the area were French Catholic Jesuit missionaries who aimed to minister to the Native Americans and the fur traders of the region.
32. The Basilica of St. Josaphat is in the Lincoln Village neighborhood in Milwaukee, and it’s modeled after St. Peter’s Basilica in Rome. The building boasts one of the largest copper domes in the world.
33. During the second half of the 19th century, Milwaukee became a hub of industry. Flour milling, iron founding and leather tanning were all major industries in the area, bringing prosperity to the city. For a time, Milwaukee was heavily involved in manufacturing automobiles, as well — including the Kissel Kar, the Ogden and the Nash — but that industry has become obsolete in the city now.
34. One of Milwaukee’s most interesting houses from the old days used to belong to Frederick Pabst, founder of Pabst Blue Ribbon. The Victorian-style mansion is on West Wisconsin Avenue and has 14 fireplaces, 10 bathrooms and a study filled with secret compartments.
All right, folks. We gave you the Milwaukee facts, but what have we missed? Leave your comments below!
Whether you’re a beer-drinking cheesehead or a transplant looking for some nightlife, weird museums and historical hotspots, these Milwaukee facts will get you headed in the right direction to sounding like a local in no time. Find your own place to live to enjoy the city now!
Do you want to learn how to make money with a drone? Drones have become more and more popular recently. People use them not just for fun but also for jobs that need pictures and videos from up high. This means there’s a growing opportunity for people to start small businesses to make money with…
Do you want to learn how to make money with a drone?
Drones have become more and more popular recently. People use them not just for fun but also for jobs that need pictures and videos from up high. This means there’s a growing opportunity for people to start small businesses to make money with their drones.
I have had a drone for several years now, and it is so great to be able to take pictures from a different perspective with it. We’ve also used our drone for many purposes – such as inspecting a roof, looking at the top of our mast on our boat (at 68 feet tall, it’s nice to have a drone to check things!), for family pictures, and more.
Whether you fly drones for fun or as a pro, earning money with them can be straightforward. If you have the right knowledge and tools, you can make your hobby pay off and make income.
Below, I will be talking about how to make money with a drone, how to get started, the best drone to make money with, and more.
How To Make Money With A Drone
What is a drone?
A drone, also called an unmanned aerial vehicle (UAV), is a flying machine operated from a distance by a pilot (like you or me) with a remote control (such as your cell phone). Whereas before, helicopters were needed for pictures from high up in the air, drones have made it much easier for the average person to take photos and videos.
Drones are used for many things, like taking amazing pictures from the sky, delivering packages, and inspecting the top of buildings that are high off the ground.
Some popular drone brands like DJI have really good cameras and special features that make them easy to use too.
How much money can you make flying drones?
How much you can earn as a drone pilot depends on how much experience you have, what kind of services you sell, and how much demand there is for those services where you live.
According to Glassdoor, a drone pilot can make around $65,000 a year, with some making well over $100,000 each year.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
13 Ways To Make Money With A Drone
Below are 13 ways to make money with a drone. Whether you want to learn how to make money with drone videos or drone pictures, there are many ideas that you could try.
1. Stock photos
One great way to get started making money with your drone is by selling your drone photos on stock photo sites.
You can make passive income with a drone by taking aerial photos (such as of cities, the outdoors, and so much more) and selling them on stock photo websites such as Shutterstock, Getty Images, and DepositPhotos.
Customers buy stock photos for many different uses, such as on websites, in TV shows, in books, on social media, and in other places.
I buy stock photos all the time for my website and so do millions of other people. They are so nice and helpful to have!
You simply take drone photos, upload them onto a stock photo website (making sure to add relevant keywords), and then the stock photo site does the rest of the work to sell them to customers.
2. Real estate photos
As a drone pilot, you can sell real estate photography services to real estate agents which helps them show the properties that they are trying to sell.
By taking a picture of the property from different angles and heights, real estate agents can show a different view of the real estate that traditional photography can’t provide.
By selling property photography services with your drone, you’re selling a helpful service to real estate companies looking to stand out in a competitive housing market.
More and more homes are being sold with drone photos, and it makes sense – it can really show how great the surrounding area is around a home! Plus, a possible home buyer can see the whole home and property with a drone picture to get a better idea of what the home includes.
3. Building inspection services
Building and roof inspection services are always in high demand, as homeowners and building owners need to look for possible damages or maintenance issues.
Drone operators can inspect roofs and tall buildings safely and quickly with a drone. I personally know a few roof and building inspectors who regularly use drones to help them with their work. Instead of spending a ton of time climbing onto a roof (or going on one that may be dangerous to begin with), they can simply turn on their drone and take pictures in order to get a better idea of what is going on.
After all, drones can go where humans can’t, or at least where it’s risky, time-consuming, or expensive for humans to go.
This is what makes a drone so helpful when it comes to inspecting a building. Drones are so easy to use, and they can take a picture of a hard-to-reach location in just minutes.
Drones are used by others for inspection purposes as well, such as to inspect solar panels by solar installation companies, inspect bridges and wind turbines, as well as inspecting farmlands. A service related to this is that many times utility companies will use drones to inspect their power lines too!
4. Aerial photography and videography
Aerial photography and videography are popular for many different events, such as sports and concerts.
Sporting events and concerts typically pay for drone photos because it helps give them more images of the full picture of the event they are hosting as well as a different perspective. This can help them to sell more tickets in the future and gain more publicity.
5. Instagram
I follow quite a few Instagram accounts that mainly post amazing drone photos from around the world. These content creators are able to make money by building a following and partnering with companies for advertising.
6. YouTube videos
Starting a YouTube channel that shares your drone footage can also earn you income. As you gain subscribers and views, you can earn advertising income and sponsorship deals or paid collaborations.
On your YouTube channel, you may publish videos that include drone videos such as from your travels. Or, you may be teaching others how to use their drone. There are many different avenues you could try.
Recommended reading: How Much Do Twitch Streamers Make?
7. Aerial mapping and surveying
Drones can be used for mapping and surveying tasks, such as creating topographic maps, assessing land for development, and for agricultural inspections.
This is because with a drone you can map out large areas extremely quickly.
I did a quick Google search for the job “aerial mapping drone pilot” and found a lot of different openings too!
8. Drone delivery services
Drone delivery services are a pretty new market, with companies such as Amazon starting to use drones for package delivery.
Sounds pretty crazy, but it is a real thing!
While regulations are still constantly changing, drone delivery services may have some big openings for drone pilots who want to be some of the first.
9. Filmmaking
Drones have completely changed the filmmaking industry by allowing for unique camera angles and movements that were once impossible to achieve (or could only be done before with a helicopter).
Drone pilots can sell services in filmmaking and work on movie sets, TV commercials, and music videos.
10. Hotel photos and ads
Drone photos of hotels and Airbnbs can help to sell more rooms better because customers can see the surrounding area and what the whole building looks like.
This may help a person to see that there is a beach or a mountain nearby, or perhaps that it is close to the center of a city.
11. Wedding photography
More and more couples are wanting drone photography of their wedding. You can sell wedding photography services with your drone, which allows couples to capture their wedding day from different angles.
This could be an add-on if you are already a wedding photographer, or perhaps you can reach out to wedding photographers in your area and sell your services to them as an add-on.
12. Freelance jobs
Drone photographers can use freelance platforms such as Upwork, Fiverr, Droners.io, and PrecisionHawk to sell drone services to clients. By promoting your drone photography portfolio on these sites through creating a profile, you can find freelance jobs and make money.
I did a quick search and you can see examples of drone photographers selling their services on Upwork here to get an idea.
13. Renting drones
If you own multiple drones, you can possibly start renting them out to other drone pilots or people who simply want to take some drone photos.
There are many ways you can rent out your drone, such as to recreational users who want to try out flying a drone, content creators, photographers, researchers, for search and rescue operations, disaster relief, and so many more.
Getting Started With A Drone Business
Starting a drone business can be a great way to make money, especially if you enjoy playing around with drones.
As you read above, drones have been so helpful in many different areas, from real estate to movies, farming, and more.
Starting a drone business is probably simpler than you would think too.
What drone should you buy?
If you want to learn how to make money with a drone, then getting the right drone is helpful. Before buying a drone, think about your budget, the drone’s flight time (how long the drone can fly in the air on a battery charge), your skill level, and the type of services you want to sell.
Some of the best drones to make money with include:
Do you need a license for a drone business?
Yes, if you plan to operate a drone for commercial purposes, you should have a Remote Pilot Certificate from the Federal Aviation Administration (FAA). To get this certificate, you must:
Be at least 16 years old
Be able to read, speak, write, and understand English
Pass an aeronautical knowledge test
Be physically and mentally fit to operate a drone
Complete the FAA’s online application
Once you get your Remote Pilot Certificate, you are required to register your drone with the FAA and you will then get a unique identification number.
You can learn more about how to become a drone pilot on the FAA’s website here.
Do you need insurance to run a drone business?
Having insurance isn’t required by the law, but it’s a good idea to get it for your drone business.
Insurance helps protect you and your clients in case something goes wrong, such as if there is an accident or problems with the drone. Drones can be expensive, so insuring them can help to pay for them in case something happens (for example, you could crash them into a building or lose them in the water).
I have personally lost a drone in the water, and insurance gave me a new one right away, which was very nice.
How much does it cost to start a drone business?
The costs for starting a drone business include:
Drone – $300 to $10,000+
Laptop to edit your photos – $500 to $2,000+
Remote pilot certificate – $175
Drone insurance – $1,000 per year
Other expenses that you may have include a business license, advertising costs, office space, and more.
The amount that you spend to start your drone business will be higher or lower depending on your budget, what kind of drone business you plan on running, and more.
How To Improve Your Drone Skills And Training
Below is how you can become a better drone pilot and get good pictures and videos. Whether you’re a beginner or if you’ve been flying drones for years, the below can help you to improve your business.
Become a skilled pilot
To get really good at flying drones, you need to spend time learning and practicing. Flying a drone is not as simple as it looks – I know because I have had a drone for years, and I have a lot to learn yet. And, I still get nervous when flying it!
If you want to start a drone business, then I recommend taking a drone training course that will teach you everything from basics to advanced skills. There are a lot of features on a drone and it can be overwhelming to learn. A course can speed things up for you.
Also, practicing as much as you can is very helpful, which will help you get better at controlling it. Finding an open space can help you get more comfortable with flying it as well because you won’t be as worried about hitting something with your drone.
This will then help you with the next step – taking photos and videos with your drone.
Video and photography training
Once you’ve learned how to use your drone, the next step is to get better and better at taking pictures and videos with your drone.
You will want to learn as much as you can about your drone’s camera and the different settings that come with it. You should learn how to set up good shots, how to figure out what kind of lighting you need, how to frame pictures and videos, and more.
Here are some tips to improve your video and photography skills with your drone:
Take a course – Sign up for a photography or videography course to improve your knowledge of drone camera settings as well as framing and editing techniques. You can easily find a drone photography course online, such as on Udemy.
Practice regularly – The more you take videos and photographs with your drone, the better you will be.
Learn from others – I recommend joining online forums or drone pilot Facebook groups to talk with other drone photographers. This can help you to learn new tips that you may not have thought of.
If you get better at flying and taking good pictures or videos with your drone, you can start earning money. Of course, it will take time and lots of practice, though!
Frequently Asked Questions About How To Make Money With A Drone
Below are answers to common questions about how to make money with a drone.
Can I sell my drone photos?
Yes, you can sell your drone photos either part-time or even full-time. Many drone photographers earn money by selling their drone photos to people such as real estate agents, advertising companies, and more.
Are drone pilots in demand?
Drone pilots are in demand as drone technology has become easier to use and more affordable. Industries such as agriculture, construction, marketing, and even emergency response use drones for many different purposes.
Can you make good money with a drone? Is a drone business profitable?
Yes, you can make good money with a drone! You can make up to $200 an hour, and the average pay is around $65,000 per year. Profitability depends on factors such as your target customer and the services you sell.
What are the best drone pilot jobs for earning money?
Some of the best drone pilot jobs for making money include aerial footage, real estate photography, mapping and surveying, building inspection, and selling drone photos as a content creator (such as Instagram).
What freelance opportunities are available for drone pilots?
Some freelance jobs for drone pilots include aerial photography, land surveying, and inspecting buildings. You can sell your services through your website, social media, and online job marketplaces such as Upwork, Zeitview (formally known as DroneBase), and FlyGuys.
Is obtaining a Part 107 drone license necessary to earn with a drone? Can you make money with a drone without a license?
If you want to use your drone for a job in the United States, you’ll need a Part 107 license (this is informally known as the commercial drone license). It shows you know how to use your drone safely and follow the rules. Plus, some clients might ask you to have this license before they hire you too. If you are caught selling drone photography without a license, then you could face a fine of $1,100 from the FAA.
What DJI drones are recommended for making money?
Some DJI drones to look into include DJI Air 2S, DJI Mavic 3 Pro, and the DJI Mini 3.
What are the opportunities in drone training and consultation?
As more people use drones, there will be more need for drone training and advice. If you know a lot about drones, you can teach others or help businesses use drones in their work. This can be a good way to make money as well.
How To Make Money With A Drone – Summary
I hope you enjoyed this article on how to make money with a drone.
As you can see, there are many different ways to make money with a drone, such as:
Stock photos
Real estate photos
Building inspection services
Aerial photography
Instagram content
YouTube videos
Aerial mapping and surveying
Drone delivery services
Filmmaking
Hotel photos and ads
Wedding photography
Freelance jobs
Renting drones
Do you want to learn how to make money with a drone?
Rental, Renovation, Fee Collection, Subservicing, Verification Tools; Training and Events
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Rental, Renovation, Fee Collection, Subservicing, Verification Tools; Training and Events
By: Rob Chrisman
2 Hours, 11 Min ago
Yes, WeWork has filed for bankruptcy, but if you look at GDP and employment, our economy is doing pretty well. Did you know that the Dallas metro area is home to the headquarters of companies responsible for originating 78 percent of residential volume? You probably didn’t, as I just made that up out of thin air. Texas’ growth and not having state income tax both help. Here in Dallas at the TMBA Education Symposium, there is plenty of discussion about the industry incorporating non-traditional products into their lineups, such as reverse mortgages, bond programs, buydowns, renovation loans, construction to perm financing, and jumbo loans, all have value to lenders. Meanwhile, loan originators are looking at a “full stack” loan origination & processing platform like Realfinity.io to go “independent” allowing them to get the most competitive pricing directly from wholesale lenders with no overlays due to corporate expenses. (No, this is not a paid ad… Check out this WSJ article which really opened my eyes. To learn more about going independent reach out to Luca Dahlhausen.) Today’s podcast can be found here, and this week is sponsored by nCino makers of the nCino Mortgage Suite. With three products tailored to the needs of the modern mortgage lender, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics unite the people, systems, and stages of the mortgage process. Hear an interview with nCino’s Jay Arneja on the company’s rebrand and the seamlessness of the nCino Mortgage Suite.
Lender and Broker Software, Products, and Services
Is down payment assistance (DPA) actually making an impact in a brutal housing market? The answer is a resounding “yes” according to a newly released Urban Institute (UI) study. UI partnered with Down Payment Resource (DPR) to analyze 2022 HMDA data and DPA data from the 10 largest MSAs. Among the findings, 43.6% of purchase loans were potentially DPA-eligible. 36.7% of declined loans fell through because of DTI. 30.7% of declined loans (46,370) could potentially have been salvaged with DPA. This is especially relevant because it shows that DPA can prevent more declined loans by improving DTI ratios, a growing issue as interest rates rise. To get insight into how many DPA programs are available to help you save declined loans in your service area, schedule a demo with the DPR team.
Servbank is dedicated to creating excellence with every customer and client experience. Having personally experienced how subpar service can negatively impact your businesses and brand, we have consistently elevated our own standards through substantial investments in our people and technology to ensure we are delivering a consistent, best-in-class experience at every interaction point. Our efforts have yielded remarkable results: a 92% first-call resolution rate, a 99% customer satisfaction score, an 85% Net Promoter Score, with wait times of under 10 seconds. This forward-thinking commitment to creating excellence with every experience has positioned Servbank as a market leader and one of the nation’s 10 largest subservicers. As a genuine, collaborative partner, Servbank has the capability and determination to enhance your brand, keep your customers loyal, and improve your bottom line. Ready for a subservicer who goes above and beyond? Partner with Servbank.
Now available: New MERS® Automated Lien Release™ Now, loan servicers and sub-servicers can optimize efficiency and accuracy on process lien releases, all while significantly lowering cost, with the recently announced MERS® Automated Lien Release. Leverage the combined power of the MERS® System and the Simplifile® Document Builder lien release framework to streamline the lien release process for loans registered with MERS®. When a paid-in-full transaction is completed on the MERS® System, this triggers the creation of a compliant lien release package and processing workflow in Document Builder. With pre-populated compliant document templates, Automated Lien Release ensures accuracy and compliance with the latest regulatory requirements. By leveraging the loan updates already sent daily to MERS®, the solution is compatible with the servicing platform you use today, alleviating implementation challenges. Click here to learn more.
While the industry strives for a “fully digital” real estate transaction experience, we cannot lose sight of how important it is to make it easier for loan officers and other staff members to do their jobs. The experts at ICE understand this, which is why any new solution that is developed prioritizes the back-office experience just as much as the front-end experience. As EVP of Product Strategy Sandra Madigan tells HousingWire in a new interview: “You can put the most incredible technology in front of the consumer, but if you don’t work on streamlining the back-end part of the process, you have not delivered effective technology.” Read her full interview here, and see how ICE Mortgage Technology is digitizing the mortgage and servicing processes, while still providing the human-guided experience borrowers want.
It’s no secret. The industry is going through tough times, and Xactus, the leading verifications provider, is here to help guide you in navigating through these challenges. It anticipates credit costs will soon increase as much as 30-100 percent due to several external factors including inflation and out-of-pocket fees. This will, in turn, have a far-reaching impact on all lenders. At the MBA Annual, we heard a lot of “Survive until ’25.” But how is a lender supposed to do that with these rising costs? One way is to work with a partner like Xactus who has the experience to help you strategically review processes to efficiently and cost-effectively manage milestones, improve workflows, optimize outcomes and enhance margins. The right partner can even assist you with capturing market share by helping you mine leads within your existing portfolio and identify more prospects. That’s how lenders will survive until ’25 and eventually thrive. Collaborate more in ’24 with Xactus. Email Xactus today to schedule a consultation!
Sagent’s Five Principles for the Future of Servicing. A better homeowner experience begins, ends, and emanates out of simplified, unified operations, a key component as Sagent delivers on their future-of-servicing model for the industry at large. Check out their COO Marianne Sullivan’s latest blog, where she shares relevant intel about how an open ecosystem provides open opportunities to power a better customer experience while reducing total operational costs and powering real-time compliance for servicers. Read the full piece here where she breaks down their 5 guideposts for servicing innovation. (Spoiler alert: end-to-end servicing tech IS the future.)
Click button, collect fee. It’s as easy as that with Fee Chaser. No more missed appraisal fees. No more awkwardly taking down credit card numbers over the phone. No more data entry into the LOS. With Fee Chaser’s integration into Encompass® by ICE Mortgage Technology™, borrowers get a text message to pay a fee, and everything’s automatically updated including a receipt into the eFolder. Check out the borrower experience here.
Broker and Correspondent Programs
Every lender is looking for a competitive advantage in today’s tight lending environment. With AFR Wholesale® (AFR) take your Delegated Correspondent business to the next level. With competitive best effort and mandatory pricing, our partners can maximize their profitability. AFR will purchase a diverse program catalog, including completed Renovation, Construction, and Manufactured Homes on all program types. We are fully integrated with BAM and Resitrader for those who wish to shadow bid on their loans prior to signing up. Activate AFR in your pricing engine or contact the AFR Bulk Bid desk today or 973-298-8003. Not yet a partner? Sign up today to start taking action! Have questions? Contact AFR at afrwholesale.com, email us or call 1-800-375-6071.
Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.5 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.
Training and Events, In-Person or Virtual
Deephaven Mortgage invites you to join its educational webinar “Opportunities in Today’s Mortgage Market With Deephaven and CoreLogic” on November 9th at 1:00 pm EST. Chief Sales Officer Tom Davis with Deephaven Mortgage and Chief Economist Selma Hepp, PhD at CoreLogic will discuss opportunities in today’s challenging mortgage environment. Selma brings extensive experience in analytics offering actionable and straightforward insights that are important to know. Selma and Tom will provide an update on the housing market, forecasts, demographic trends, and the non-QM products to expand offerings and increase volume. Don’t miss it! Register today.
A good place for longer term conference planning is to start is here, and click on “events” for conferences in the future.
Today, Tuesday, 11/7, is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman. Tune in every Tuesday at 10AM PT to the weekly video show designed to empower mortgage professionals to tap into the millennial market. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. Special guest Jordan Nutter, VP of the Influencer Division at NFM.
Join CAMP on today at 1PM PT to hear expert insurance panelists discuss why insurance companies are leaving California, what new regulations to expect, what are the best practices for your new home-buying clients and what happens if their insurance is cancelled.
Join NYMBA and Proof (formerly Notarize) for a webinar on operationalizing RON in New York, November 7th, 12-1pm. Learn the latest developments in New York State’s rollout of remote online notarization (RON) including the benefits for lenders, attorneys, and your customers. See a live demo of the Notarize platform and learn how RON can help your business from lending to servicing.
Discover what lies ahead in the world of home financing and interest rates with our upcoming webinar, “What Does the Road Ahead Look Like? Navigating Home Financing, Interest Rates, Planning, and More in 2024.” Join us on November 8th: Secure your spot now!
Tomorrow, looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. This week’s episode features respected attorney Brian Levy.
Join Optimal Blue for the next session in its hedging series, Wednesday, Nov. 8th at 11a.m. CT, Hedging 201: The Components of Pipeline Valuation. Take a deeper dive into the different components that make up your pipeline valuation. From data integrity to gain/loss reconciliation, this webinar will cover features and functionality that Optimal Blue’s hedging and loan trading services provide.
On Wednesday, November 8th at 11:30am–12:30 pm PT, join Orrick’s fourth session zoom conversation about what’s next in fair lending enforcement.
Join USDA Rural Development first live, virtual training for fiscal year 2024. Back to the Basics…SFHGLP Overview: 101 on Wednesday, November 8th | 2:00 pm – 3:00 pm ET.
Beginning in 2024, USDA-RD will be offering free monthly virtual live training events: USDA Rural Development 2024 training schedule.
Learn more about HFA Advantage® features and benefits, borrower eligibility, homebuyer education requirements and product enhancements. Register for a free Freddie Mac webinar on Wednesday, November 8, 2 pm – 3:30 pm ET.
The MBA of Eastern Pennsylvania is hosting its annual President’s Banquet on Thursday November 9, welcoming CNBC commentator Ron Insana for the keynote address. This event is open to members and nonmembers. Tickets can be purchased here.
Join Land Gorilla for an upcoming webinar on November 9 at 11 a.m. PT, “Florida Lien Law Overview For Construction Lenders,” which will cover statutory requirements and lender strategies for managing construction loans in the Sunshine State. If you can’t make the live session, register anyway and you will be sent the recording.
In support of the Credit Score and Credit Reports Initiative, FHFA will host a series of stakeholder forums. The initial topics will focus on the historical credit score files and the timing/sequencing of key project milestones. To register for any of the sessions outlined below and to stay up to date on future discussions, send your name, affiliation and contact information to [email protected]. Forum Schedule: Tuesday, November 7, 3-4 p.m. ET: Uses of Historical Data for Stakeholder Analysis. Tuesday, November 14, 3-4 p.m. ET: Sequencing of Project Milestones. Tuesday, November 28, 3 –4 p.m. ET: Uses of Historical Data for Stakeholder Analysis (cont’d). Tuesday, December 12, 3–4 p.m. ET: Sequencing of Project Milestones (cont’d).
In September, the CFPB included Loan Originator Compensation in its supervisory highlights. Are your compensation policies compliant? Register for the MMBA MLO Compensation Program Webinar on November 9th, 10:00 – Noon.
Friday the 10th is The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. This Friday’s features David Karandish with Capacity.
Capital Markets
There was a big rally over the last week as the sentiment that the Fed could be done raising rates swept through markets, allowing Treasuries to build on gains. However, this week opened with substantial sales as a knee jerk reaction to how far bond yields fell over the past seven days. That selling hasn’t really put in a dent in how much yields have risen over the past 18 months and the last time U.S. government bond yields climbed so far, so fast, the nation plunged into back-to-back recessions. And even with markets firmly in “bad news is good news” mode, everyone who has predicted a downturn since early last year has been incorrect. Even with the chance of a rate cut in March increasing to nearly 25 percent, for now, the Fed will continue to feel the pressure to keep rates high to battle price surges.
Today’s economic calendar is light and kicked off with the September trade deficit ($61.5 billion, moving higher). Expectations were for the trade deficit to deteriorate to $59.2 billion from $58.3 billion with consumer credit increasing $15.0 billion following the surprising $15.6 billion decline in August. Later today brings September consumer credit, Redbook same store sales, a Treasury auction of $48 billion 3-year notes, and a litany of Fed speakers. We begin the day with Agency MBS prices better than Monday night by a few ticks and the 10-year yielding 4.62 after closing yesterday at 4.66 percent; the 2-year is at 4.94.
Employment and Transitions
Merchants Bank of Indiana, continues to grow. The Carmel, IN based Bank knows these are challenging times, but also sees opportunity. Having recently reached $16 billion in assets, they continue to leverage their diversified business model to grow market share and assist their lending partners. They offer Correspondent Lending, Non delegated and Delegated; a Dedicated Wholesale platform for Banks and Credit Unions; Retail Lending and Warehouse financing. Their LO centric platform along with the strength and balance sheet of the bank allows them to expand market share in their regional markets. Contact Ron Berry, Retail Sales Leader to learn more about their LO opportunities. With the TPO market experiencing frequent Investor shakeup their committed, focused, and growing TPO channel is worth a look. Contact Rob Wilson, Correspondent Sales Executive to learn more about their Servicing Released Non Delegated, Delegated platforms and their Financial Institutions dedicated BCU Mortgage Services platform.
FHA has two vacancies for a Housing Program Policy Specialist. Duties include monitoring and evaluating agency operations to ensure policies and standards are maintained, up-to-date, and in compliance with respective guidance and procedures. Resolve many types of program policy issues involving single family mortgages and appraisal/valuation requirements presented by field staff, lending institutions, and other housing interests. Collect, review, and analyze a variety of data including statistical information. Announcement 23-HUD-2577-P.
FHA is accepting applications for a Management and Program Analyst, Announcement Number 23-HUD-3104-P. Responsibilities include development of procedures and systems for assessing the effectiveness of programs/management processes. Analyze and evaluate on a quantitative/qualitative basis the effectiveness of line program operations in meeting established goals and objectives. Direct and develop plans for project teams or other groups in accomplishing/producing projects/studies.
FHA is hiring a Single-Family Housing Specialist. This position is responsible for providing technical assistance and advice to the Single-Family Homeownership Centers on matters concerning risk management and monitoring of program participants. Serve as technical expert on established policies and procedures for monitoring lender/servicer performance.
View Job Announcement Number 23-HUD-3102-P for all job duties.
FHA has an open position for a Deputy Director, Quality Assurance Division. Job duties include exercising full managerial authority in assisting the Director in the planning and execution of assigned program operations and functions. Provide technical assistance and advice to the Single-Family Homeownership Centers on matters concerning risk management and monitoring of program participants. Prepare bulletins highlighting notable trends for management in Headquarters and the Homeownership Centers. For details, view Job Announcement Number 24-HUD-141-P.
DocMagic has promoted Chris Lewis to the role of Director of Sales, tasked with “building on DocMagic’s success as a market leader while also driving strategic sales initiatives for the company’s new innovations.” “His primary goal is to lead a team of subject matter experts in offering a consultative approach. This approach assists lenders of all sizes in realizing the cost-saving benefits and operational efficiencies of eClosings, which are becoming more prevalent in the industry.”
Morgan Barnes has joined the Real Estate Connection team as Director of Lender Relations. “As a licensed Real Estate Agent with keen organizational expertise, Morgan is committed to offering streamlined industry support to our lenders and agent partners.”
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