When You Donate Blood, You Save Lives and Earn Gift Cards

One pint of blood can save three lives. That alone is what drives people to roll up their sleeves and get that needle prick. But there’s another good reason to sign up to be a regular blood donor: Gift cards.

You get a lot more than a T-shirt and some peanut butter crackers these days when you donate blood. Blood collection organizations routinely give out $20 worth of gift cards to Amazon, restaurants and major retailers at blood drives. You can give blood every 56 days, or six times a year.

So, a couple can average $240 in perks and save 36 lives in one year. For a family of four with kids above 16 and old enough to donate, that’s about $500 in gift cards per year and 72 lives saved.

“One time we went to Kohl’s and there was a blood drive in the parking lot,” said Beverly Mattis of Wake Forest, N.C. “They gave us each a $20 Kohl’s gift card so my daughter and I went in and did some shopping afterward.”

A man wearing a face mask shows off his gift certificates after donating blood.
Exavier Jones shows off his $10 gift certificate after donating blood at a OneBlood Big Red Bus in St. Petersburg, Fla. Chris Zuppa/The Penny Hoarder

Exavier Jones gave blood recently at a OneBlood mobile collection bus outside casual dining restaurant Carrabba’s Italian Grill in St. Petersburg.

“I’m type O. That’s always needed, so I try to give as often as I can,” he said, explaining that any blood type can accept type O blood. He received a $10 Carrabba’s gift card and a $10 e-gift card to use at one of a variety of retailers.

How to Get the Perks of Being a Regular Blood Donor

If you register to be a blood donor with the blood collection organization in your area, you will receive texts or emails with dates of upcoming blood drives and the perks. There are many blood collection organizations around the country. Here are three of the biggest, and how to register:

There’s no requirement that you give a certain number of times a year, but there is encouragement.

OneBlood, which collects blood in the Southeast, partnered with Carrabba’s to give $10 gift cards each time someone donated between January and April. Those who gave twice received an additional $25 gift card along with the two $10 cards.

“I got $10. I’m going to go inside and have a lasagna dinner tonight,” said Bill Howard after donating at the Carrabba’s in St. Petersburg.

The gift cards are nice for sure, he said, but the main reason he gives regularly is because he was stabbed during the Vietnam War and needed a lot of blood to survive. He wants to save others like a stranger’s blood once saved him.

A man wearing a camouflage hat poses for a portrait outside of a blood donation bus.
Bill Howard donates blood regularly because his life was saved by a person who donated blood after he was stabbed in the Vietnam War. Chris Zuppa/The Penny Hoarder

“I would say most of the time at almost all of our drives our intention is to have a donor gift,” said Pat Michaels, OneBlood director of media relations. “It could be Carrabba’s, Publix, Red Lobster. We have built up some wonderful partners,” he said.

OneBlood also gives out tickets donated by the Miami Dolphins, Tampa Bay Buccaneers, Jacksonville Jaguars, the Daytona 500 and Carowinds amusement park near Charlotte, N.C.

Along with gift cards and tickets, many blood collection groups also give out swag such as beach towels, fleece blankets, car sun shades and insulated water bottles.

Vitalant, which is based in Scottsdale, Ariz., is the largest nonprofit blood service provider in the country serving 40 states. It hosts more than 30,000 blood drives a year and offers a variety of perks and incentives for blood donors.

Vitalant is partnering with the Arizona Diamondbacks to encourage high school students there to organize blood drives at school. The team will host more than 1,000 students from blood drive committees. Organizers from the two schools who achieve the most donations will share a party suite at a Diamondbacks game.

Vitalant is also encouraging women to organize a blood drive with friends the same as they might host a party at their homes selling jewelry or clothes. An organizer can invite eight friends to a private party at a collection center that’s catered with fun food where donors receive gift cards and other swag.

For donors with a sweet tooth, Vitalant recently promoted a pint-for-a-pint offer. Donors who gave a pint of blood received a voucher for a free pint of frozen custard at Culver’s.

The American Red Cross recently offered $5 Amazon gift cards to some donors, and their names were entered for a chance to win a trip for four to the 2022 Indianapolis 500. Winners will receive pit credentials, airfare, hotel accommodations and a $500 gift card. Other Red Cross blood drives enter donors’ names in a drawing for a chance to win a $1,000 e-Gift card to one of several stores.

More Perks for Donating Platelets

Platelets are small cells that stop bleeding by forming clots. Donated platelets are used for cancer patients, transplants, burn patients and traumatic injuries.

When someone donates platelets, a machine extracts them from whole blood then returns the rest of the blood back to the donor. The process takes about three hours.

Because it takes longer than donating whole blood, more perks are offered for people who give platelets, which can be donated every seven days. OneBlood recently challenged platelet donors to a two-month program offering gift cards valued at $25 for their second donation, $50 for their third and $75 for their fourth.

It is also promoting a three month challenge, offering gift cards valued at $25 for the second donation, $50 for the third, $75 for the fourth, $100 for the fifth and $125 for the sixth. That’s a total of $375 in gift cards in three months.

People line up at a blood donation bus to donate blood.
According to Givingblood.org, only 37% of the U.S. population can donate blood. Less than 10 percent of those people donate blood at least once a year. Chris Zuppa/The Penny Hoarder

Constant Need Increased During the Pandemic

Even in typical times, blood collection organizations are constantly trying to recruit more donors. Only 37% of the U.S. population is eligible to donate blood, and less than 10 percent of those people do so at least once a year, according to Givingblood.org.

Numerous impacts of COVID-19 made it even harder to reach and encourage donors, according to Michaels at OneBlood.

“There has been every reason for there to be a shortage of blood drives,” he said. Blood drives at colleges, high schools and office buildings were cancelled for months on end because they were closed.

“We had to recover by creating new partnerships,” Michaels said. OneBlood worked with county elections offices across the country as well as hundreds of homeowners associations to connect with groups of people who would sign up for blood drives, he said.

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Source: thepennyhoarder.com

7 Things to Do After College Besides Work

Numerous college students have a trajectory in mind for navigating life after college. For some, getting a job is their top goal. But, are there other things to do after college besides work?

Beyond looking for a traditional entry-level job, there are alternative choices for new grads—including internships, volunteering, grad school, spending time abroad, or serving in Americorps.

Naturally, the options available will differ depending on each person’s situation, as not all alternatives to work come with a paycheck attached.

Here’s a look at these seven things to do after college besides work.

1. Pursuing Internships

One popular alternative to working right after college is finding an internship. Generally, internships are temporary work opportunities, which are sometimes, but not always, paid.

Internships may give recent grads a chance to build up hands-on experience in a field or industry they believe they’re interested in working in full time. For some people, it could help determine whether the reality of working in a given sector meets their expectations.

Whatever grads learn during an internship, having on-the-job experience (even for those who opt to pursue a different career path) could make a job seeker stand out afterwards. Internships can help beef up a resume, especially for recent grads who don’t have much formal job experience.

A potential perk of internships is the chance to further grow your professional network—building relationships with more experienced workers in a particular department or job. Some interns may even be able to turn their short-term internship roles into a full-time position at the same company.

Starting out in an internship can be a great way for graduates to enter the workforce, “road testing” a specific job role or company.

2. Serving with AmeriCorps

Some graduates want to spend their time after college contributing to the greater good of American society. One possible option here is the Americorps program—supported by the US Federal Government.

So, what exactly is Americorps? Americorps is a national service program dedicated to improving lives and fostering civic engagement. There are three main programs that graduates can join in AmeriCorps: AmeriCorps NCCC, AmeriCorps State and National, and AmeriCorps Vista.

There’s a wide variety of options in AmeriCorps, when it comes to how you can serve. Graduates can work in emergency management, help fight poverty, or work in a classroom.

However graduates decide to serve through AmeriCorps, it may provide them with a rewarding professional experience and insights into a potential career.

Practically, Americorps members may also qualify for benefits such as student loan deferment, a living allowance, education awards (upon finishing their service), and skills training.

It may sound a bit dramatic, but AmeriCorps’ slogan is “Be the greater good.” Giving back to society could be a powerful way to spend some time after graduating—supporting organizations in need, while also establishing new professional connections.

3. Attending Grad School

When entering the workforce, graduates may encounter job postings with detailed employment requirements.

Some jobs require just a Bachelor’s degree, while others require a Master’s–think, for instance, of being a lawyer or medical doctor. Depending on their field of study and career goals, some students may opt to go right to graduate school after receiving their undergraduate degrees.

The number of jobs that expect graduate degrees is increasing in the US. Graduates might want to research their desired career fields and see if it’s common for people in these roles to need a master’s or terminal degree.

Some students may wish to take a break in between undergrad and grad school, while others find it easier to go straight through. This choice will vary from student to student, depending on the energy they have to continue school as well as their financial ability to attend graduate school.

Graduate school will be a commitment of time, energy and money. So, it’s advisable that students feel confident that a graduate degree is necessary for the line of work they’d like to end up in before they apply or enroll.

4. Volunteering for a Cause

Volunteering could be a great way for graduates to gain some extra skills before applying for a full-time job. Doing volunteer work may help graduates polish some essential soft skills, like interpersonal communication, interacting with clients or service recipients, and time management.

Another potential benefit to volunteering is the ability to network and forge new connections outside of college. The people-to-people connections made while volunteering could lead to mentorship and job offers.

Volunteering is something graduates can do after college besides work, while still fleshing out their resume or skills.

New grads may want to volunteer at an institution or organization that syncs with their values or, perhaps, pursue opportunities in sectors of the economy where they’d like to work later on (i.e., at a hospital).

On top of all these potential plus sides, volunteering just feels good. It makes people feel happier. And, after all of the stress that accompanies finishing up college, volunteering afterward could be the perfect way to recharge.

5. Serving Abroad

Similar to the last option, volunteering abroad can be attractive to some graduates. It may help grads gain similar skills they’d learn volunteering here at home, while also giving them the opportunity to learn how to interact with people from different cultures, try to learn a new language, and see new perspectives on solving problems.

Though it can be beneficial to the volunteers, volunteering abroad isn’t always as ethical as it seems. And, not all volunteering opportunities always benefit the local community.

It could take research to find organizations that are doing ethically responsible work abroad. One key thing to look for is organizations that put the locals first and have them directly involved in the work.

6. Taking a Gap Year

According to the Gap Year Association , a gap year is “a semester or year of experiential learning, typically taken after high school and prior to career or post-secondary education, in order to deepen one’s practical, professional, and personal awareness.”

While a gap year is generally taken after high school or after college, one common purpose of the gap year is to take the time to learn more about oneself and the world at large—which can be beneficial after graduating from college and trying to figure out what to do next.

Not only might a gap year help grads build insights into what they’d like to do with their later careers, it may also help them home in on a greater purpose in life or build connections that could lead to future job opportunities.

Graduates might want to spend a gap year doing a variety of activities—including:

•   trying out seasonal jobs
•   volunteering
•   interning
•   teaching or tutoring
•   traveling

A gap year can be whatever the graduate thinks will be most beneficial for them.

7. Traveling Before Working

Going on a trip after graduation is a popular choice for graduates that can afford to travel after college. Traveling can be expensive, so graduates may want to budget in advance (if they want to have this experience post-graduation.

On top of just being really fun, travel can have beneficial impacts for an individual’s stress levels and mental health. Research from Cornell University published in 2014 suggests that the anticipation of planning a trip might have the potential to increase happiness.

Traveling after graduation is a convenient time to start ticking locations off that bucket list, because graduates won’t be held back by a limited vacation time. Going abroad before working can give students more time and flexibility to travel as much as they’d like (and can afford to!).

With proper research, graduates can find more affordable ways to travel—such as a multi-country rail pass, etc. It doesn’t have to be all luxury all the time. Budget travel is possible especially when making conscious decisions, like staying in hostels and using public transportation.

If graduates are determined to travel before working, they can accomplish this by saving money and budgeting well.

Navigating Post Graduation Decisions

Whether a recent grad opt to start their careers off right away or to pursue one of the above-mentioned things to do after college besides work, student loans are something that millions of university students have taken out.

After graduating (or if you’ve dropped below half-time enrollment or left school), the reality of paying back student loans sets in. The exact moment that grads will have to begin paying off their student loans will vary by the type of loan.

For federal loans, there are a couple of different times that repayment begins. Students who took out a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, will all have a six month grace period before they’re required to make payments. Students who took out a Perkins loan will have a nine month grace period.

When it comes to the PLUS loan, it depends on the type of student that’s taken one out. Undergraduates will be required to start repayment as soon as the loan is paid out. Graduate and professional students with PLUS loans will be on automatic deferment while they’re in school and up to six months after graduating.

Some graduates opt to refinance their student loans. What does that mean? Well, refinancing student loans is when a lender pays off the existing loan with another loan that has a new interest rate. Refinancing can potentially lower monthly loan repayments or reduce the amount spent on interest over the life of the loan.

Both US federal and private student loans can be refinanced, but when federal student loans are refinanced by a private lender, the borrower forfeits guaranteed federal benefits—including loan forgiveness, deferment and forbearance, and income-driven repayment options.

Refinancing student loans may reduce money paid to interest. For graduates who have secured well-paying jobs and have improved their credit score since taking out their student loan, refinancing could come with a competitive interest rate and different repayment terms.

Graduating from college means officially entering the realm of adulthood, but that transition can take many forms. There are various financial tips that recent graduates may opt to look into.

Thinking about refinancing your student loans? With SoFi, you could get prequalified in just two minutes.



External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SoFi Student Loan Refinance
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF SEPTEMBER DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. CLICK HERE FOR MORE INFORMATION.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. SoFi Lending Corp. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.

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Source: sofi.com

Robot Vacuums: Fun Floor Cleaning Technology for Your Apartment

Wouldn’t it be nice to have a robot maid to clean your apartment for you, just like Rosie the Robot on “The Jetsons?” While cleaning technology hasn’t come quite THAT far, there are some modern-day solutions that make floor cleaning less of a chore.

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We take a look at some cleaning technology for apartments that makes the robot maid seem plausible. (Who knows? You may be able to talk to your robots, someday soon, and they may complain right back!)

How do they work?
Robot vacs use infrared sensors and multiple motors to assess and cover the room in which they are left to do their dirty work. While the exact formula for determining how long the device should roam is unknown to all but the manufacturer, the theory seems to be that enough time spent zigzagging in a systematic pattern should allow the machine to reach every accessible inch of a room. (Sensors warn and divert the device when an obstacle like a drop-off comes near.)

Like any vacuum, the robot collects dirt and dust. The latest models return to a home base to empty themselves and recharge. Current techie wisdom about robot vacuums is that they are much improved from their early days, but still somewhat hit or miss when left to their own devices to cover an entire room.

The Roomba and other iRobots
The Roomba by iRobot is the first product many think of when they hear the term “robotic vacuum.” It was the first of its kind to market and has won a lot of loyal fans. Once the Roomba is charged, it goes to work cleaning your floors and can be programmed to clean carpet or hardwoods.

Like the idea of a robotic maid, but have more of a mobile mop in mind? Look into iRobot’s Scooba. The Scooba has a squeegee-vacuum system that washes floors without pushing around dirty water, as a conventional mop would. (This might be the way to go if your apartment is carpet-free.) The iRobot Mint is another robotic cleaner which uses microfibers to sweep and mop hard floor surfaces.

More on cleaning your apartment:
10 Tips to Detox Your ApartmentTips to Keep Your Apartment Allergen-Free17 Cleaning Essentials for Your ApartmentHow to Get Your Space Cleaned in a Hurry10 Ways to Eliminate Home Allergens

Neato Automatic Vacuum Cleaners
The Neato line of robotic vacuum cleaners share a lot of the features of their competitive counterparts. They also map a room (using their own proprietary formula), clean in a pattern and work on different types of flooring. While Neato only offers vacuums, they have come out with a special pet and allergy model for those who desire a deep level of clean.

Samsung’s Smart Tango Corner Clean
As of this writing, Samsung has just announced its new Smart Tango Corner Clean. Along with the usual functions found in robotic cleaners, this automatic vacuum has special attachments that are designed to clean corners, spots that are traditionally difficult for robotic vacuums to reach.

No matter which robotic vacuum or cleaner you want to purchase, do your homework first! Check out reviews by editors and users on sites like CNET, PCWorld, or Amazon. Make your informed choice, and then sit back, relax and let your personal robot assistant do the floor cleaning for you!

Photo Credit: Shutterstock / Jirsak

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Source: apartmentguide.com

From Bitcoin to GameStop to SPACs: 8 Tips for Mania Investing

Market speculation is seemingly everywhere.  From new SPACs being issued, to the prevalence of Reddit stocks such as GameStop to the popularity of electric vehicle stocks and the rise of cryptocurrency – speculation is alive and well in the markets today. 

“Mania” is a good word to describe the energy surrounding these types of investments.  Dramatic daily swings are the new normal in these holdings.  Hollywood elites and business moguls are attaching their names to crypto and the latest SPAC investments. 

The top mania investment areas are electric vehicles, cryptocurrency, Reddit stocks, space, SPACs, precious metals and pot stocks.  The dictionary definition of mania describes “excessive or unreasonable enthusiasm.”  That seems about right.  The result has been a meteoric rise in value not tied to business fundamentals but tied to hype, expectations or projections. 

Investors looking to boost performance often wonder how much exposure to these types of investments should they have.  With strong appreciation in some of the holdings, it is tempting to get into the game.  Here are our top eight tips for mania investing. 

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1. Admit that it is a mania

A woman is swept away on waves of water.A woman is swept away on waves of water.

Have some honest reflection about the investment environment you are in.  Mania investing can be fun, it can be thrilling and, ultimately, it can be painful.  But mania investing is not your conventional long-term investing strategy.  Admit you are being swept up in a mania and acknowledge what that might mean regarding your tactics.  It’s impossible to explain to yourself or your friends the fundamentals of a company with no earnings, so stop trying to make sense of it.  It is a mania, not an investment based on fundamentals. 

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2. Have an exit strategy & set a price target

Price tags.Price tags.

How far are you willing to watch your investment drop before you pull out?  Set a price target and stick to it.  Some of the biggest mistakes happen with investors who fall in love with a company or a product and hold it while closing their eyes.  Mania investments are not typically long-term plays, and you must plan for how much risk you are willing to take.  Set a target to get out and limit your downside exposure.

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3. Limit your overall portfolio exposure

A colorful pie chart.A colorful pie chart.

If you are going to be a mania investor, maybe you limit your exposure to 3%, 5% or 10% of your total portfolio.  Understand it is the high-risk portion of your portfolio and do not allocate more than you are willing to lose.  The older you are and the closer to retirement, the less you can afford to lose.  The younger you are, the more you might be willing to allocate to more aggressive strategies. 

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4. Diversify your manias 

A woman balances a bitcoin on a red tightrope.A woman balances a bitcoin on a red tightrope.

Maybe you like cryptocurrency — go ahead and invest in it, but buy into three different types, instead of just one, to diversify.  Maybe you like electric vehicles. If so, consider adding some exposure to space or precious metals as well.  Even in your mania investing, you do not want to concentrate all that allocation to just one mania strategy.  Diversification can help reduce risk even in a risky space.  Although, be careful of too much diversification.  In a world like electric vehicles, there is a possibility of there being few winners and many losers. 

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5. Understand performance in context 

Woman standing under an orange umbrella in the rainWoman standing under an orange umbrella in the rain

The S&P 500 10-year average over the past 100 years is around a 10% return per year.  Warren Buffett has averaged about 15% per year.  If your mania investments have made 100% in a year, understand how rare that is and that the odds of duplicating that performance year after year are incredibly remote.  Part of good investment performance is not just making money in good times, but also weathering losses during challenging times. 

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5. Know the difference between investing and speculating

A stack of gambling chips tumbles over.A stack of gambling chips tumbles over.

Investing for the long term carries its own set of disciplines and rules and expectations.  Mania investing is more akin to speculating or even gambling.  It often has dramatic movements in price over a short period of time.  It might include hype in the media, memes on social networks and inexperienced people giving investment advice.  Be careful and realize speculating is a high-risk game — it is not the same as sound investment on fundamentals.   

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6. Take some winnings off the table

A man cashes in his gambling pot.A man cashes in his gambling pot.

Maybe you own one of the stock names that have doubled or tripled in value over the past year.  Consider selling some of the holdings and locking in your gains.  Maybe reduce your exposure by 50%.  Keep some of the holdings a bit longer, but diversify into something more stable or consistent.  Setting a price target on the upside can be just as important as setting one on the downside. 

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7. Do not gamble the farm

The sun sets over the red barn of a farm.The sun sets over the red barn of a farm.

A smart gambler, if they go to Vegas, will set their own personal limit on what they are willing to lose.  Whether that is $100, or $10,000 — set a limit when it comes to mania investing.  Also, do not raid all your retirement money on a whim to chase manias.  While a portion could make sense, the lion’s share of your retirement should be focused on fundamental investment strategies that are consistent.  Pulling all your retirement money to buy into different manias would likely be a crazy idea, just like putting your house keys in the pot of a poker table would be ill advised. 

Investing in some of these sexy stocks and industries has appeal, and there is money to be made.  But there is also money to be lost, and it is important to have a rule set for investing even if you are investing in mania stocks.  Finally, know how risk taking can fit in your overall financial plan and realize that the risk you are willing to tolerate is likely to be different from someone else. 

Investing carries an inherent element of risk, and it is possible to lose principal and interest when investing in securities. Strategies are used to assist in the management of your account. Even with these strategies applied to the account, it is possible to lose money. No strategy can guarantee a profit or prevent against a loss. There may be times when the strategy switches between equities or fixed income at an inopportune time, causing the account to forfeit potential gains.

CEO – Senior Wealth Adviser, Sterling Wealth Partners

Scot Landborg has over 17 years of experience advising clients on retirement planning strategies. Scot is CEO and Senior Wealth Adviser for Sterling Wealth Partners. He is host of the retirement planning podcast Retire Eyes Wide Open. Scot is a regular contributor to Kiplinger.com and has been quoted in “U.S. News & World Report,” Market Watch, Yahoo Finance, Nasdaq and Investopedia. He also formally hosted the nationally syndicated radio show “Smart Money Talk Radio.”

Investment Adviser Representative of USA Financial Securities. Member FINRA/SIPC A Registered Investment Advisor. CA license # 0G89727 https://brokercheck.finra.org/

Source: kiplinger.com

What to Know about FHA 203K loans

Buying a fixer-upper is sometimes romanticized by pop culture. While it’s fun to dream, the reality of home renovation is that it can be laborious and draining, especially if the home needs serious help.

Repair work requires energy and resources, and it can be difficult to secure a loan to cover both the value of the home and the cost of repairs—especially if the home is currently uninhabitable. Most lenders won’t take that sort of chance.

But if you have your heart set on buying a fixer upper, an FHA 203(k) loan can help.

The Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD), insures loans for the purchase and substantial rehab of homes. It is also possible to take out an FHA 203(k) loan for home repairs only, though it might not be your best option if that’s all you need.

If you have the vision to revive a dreary house, here’s info about FHA 203(k) loans and other home improvement loan options.

What Is an FHA 203(k) home loan?

Section 203(k) insurance lets buyers finance both the purchase of a house and its rehabilitation costs through a single long-term, fixed- or adjustable-rate loan.

Before the availability of FHA 203(k) loans, borrowers often had to secure multiple loans to obtain a mortgage and a home improvement loan.

The loans are provided through HUD-approved mortgage lenders and insured by the FHA. The government is interested in rejuvenating neighborhoods and expanding homeownership opportunities.

Because the loans are backed by the federal government, you may be able to secure one even if you don’t have stellar credit. Rates are generally competitive but may not be the best, because a home with major flaws is a risk to the lender.

The FHA 203(k) process also requires more coordination, paperwork, and work on behalf of the lender, which can drive the interest rate up slightly. Lenders also may charge a supplemental origination fee, fees to cover review of the rehabilitation plan, and a higher appraisal fee.

The loan will require an upfront mortgage insurance payment of 1.75% of the total loan amount (it can be wrapped into the financing) and then a monthly mortgage insurance premium.

Applications must be submitted through an approved lender .

What Can FHA 203(k) Loans Be Used For?

Purchase and Repairs

Other than the cost of acquiring a property, rehabilitation may range from minor repairs (though exceeding $5,000 worth) to virtual reconstruction.

If a home needs a new bathroom or new siding, for example, the loan will include the projected cost of those renovations in addition to the value of the existing home. An FHA 203(k) loan, however, will not cover “luxury” upgrades like a pool, tennis court, or gazebo (so close!).

If you’re buying a condo, 203(k) loans are generally only issued for interior improvements. However, you can use a 203(k) loan to convert a property into a two- to four-unit dwelling.

Your loan amount is determined by project estimates done by the lender or the FHA. The loan process is paperwork-heavy. Working with contractors who are familiar with the way the program works and will not underbid will be important.

Contractors will also need to be efficient: The work must begin within 30 days of closing and be finished within six months.

Mortgage LoanMortgage Loan

Temporary Housing

If the home is indeed unlivable, the 203(k) loan can include a provision to provide you with up to six months of temporary housing costs or existing mortgage payments.

Who Is Eligible for an FHA 203(k) Loan?

Individuals and nonprofit organizations can use an FHA 203(k) loan, but investors cannot.

Most of the eligibility guidelines for regular FHA loans apply to 203(k) loans. They include a minimum credit score of 580 and at least a 3.5% down payment.

Applicants with a score as low as 500 will typically need to put 10% down.

Your debt-to-income ratio typically can’t exceed 43%. And you must be able to qualify for the costs of the renovations and the purchase price.

Again, to apply for any FHA loan, you have to use an approved lender. (It’s a good idea to get multiple quotes.)

Home Improvement Loan Options

The FHA 203(k) provides the most comprehensive solution for buyers who need a loan for both a home and substantial repairs. However, if you need a loan only for home improvements, there are other options to consider.

Depending on the improvements you have planned, your timeline, and your personal financial situation, one of the following could be a better fit.

Other Government-Backed Loans

In addition to the standard FHA 203(k) program, there is a limited FHA 203(k) loan of up to $35,000. Homebuyers and homeowners can use the funding to repair or upgrade a home.

Then there are FHA Title 1 loans for improvements that “substantially protect or improve the basic livability or utility of the property.” The fixed-rate loans may be used in tandem with a 203(k) rehabilitation mortgage.

The owner of a single-family home can apply to borrow up to $25,000 with a secured Title 1 loan.

With Fannie Mae’s HomeStyle® Renovation Mortgage, homebuyers and homeowners can combine their home purchase or refinance with renovation funding in a single mortgage. There’s also a Freddie Mac renovation mortgage, but standard credit score guidelines apply.

Cash-Out Refinance

If you have an existing mortgage and equity in the home, and want to take out a loan for home improvements, a cash-out refinance from a private lender may be worth looking into.

You usually must have at least 20% equity in your home to be eligible, meaning a maximum 80% loan-to-value (LTV) ratio of the home’s current value. (To calculate LTV, divide your mortgage balance by the home’s appraised value. Let’s say your mortgage balance is $225,000 and the home’s appraised value is $350,000. Your LTV is 64%, which indicates 36% equity in the home.)

A cash-out refi could also be an opportunity to improve your mortgage interest rate and change the length of the loan.

PACE Loan

For green improvements to your home, such as solar panels or an energy-efficient heating system, you might be eligible for a PACE loan .

The nonprofit organization PACENation promotes property-assessed clean energy (or PACE) financing for homeowners and commercial property owners, to be repaid over a period of up to 30 years.

Home Improvement Loan

A home improvement loan is an unsecured personal loan—meaning the house isn’t used as collateral to secure the loan. Approval is based on personal financial factors that will vary from lender to lender.

Lenders offer a wide range of loan sizes, so you can invest in minor updates to major renovations.

Home Equity Line of Credit

If you need a loan only for repairs but don’t have great credit, a HELOC may provide a lower rate. Be aware that if you can’t make payments on the borrowed funding, which is secured by your home, the lender can seize your home.

The Takeaway

If you have your eye on a fixer-upper that you just know can be polished into a jewel, an FHA 203(k) loan could be the ticket, but options may make more sense to other homebuyers and homeowners.

SoFi offers cash-out refinancing, turning your home equity into renovation money.

Or maybe a home improvement loan of $5,000 to $100,000 seems like a better way to turn your home into a haven.

Check your rate today.



SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

SoFi Home Loans
Terms, conditions, and state restrictions apply. SoFi Home Loans are not available in all states. See SoFi.com/eligibility for more information.

Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
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Source: sofi.com

Managing Your Money, Together

To learn more about how our Minters are achieving their financial goals, we reached out to everyday Mint users, just like you, to hear their stories. Whether it’s paying off student loans, or working toward buying a home, we’re so inspired by the dedication this community has shown in working toward your goals and dreams.

One of the Minters we connected with is Jordan. He shared with us how he’s used Mint to reach a number of his financial goals. Check out his #EmpowerMint story:

My wife and I have been interested in getting out of debt ever since the day we took on student loans. With the desire to pay those loans off, we strived to learn more about budgeting and personal finance.

As we grew in our journey, there were many financial things we questioned that felt ‘normal.’ We heard so many messages that emphasized the need to have the newest toys to be happy, that having debt is normal, and that most people live paycheck to paycheck. We realized that we didn’t feel comfortable with any of that, and that we found satisfaction in being content with what we have. 

Knowing that money issues were often a problem area for couples, my wife and I started using Mint shortly after we got married in 2010 to ensure transparency and partnership from the beginning. We found Mint to be a terrific tool for us to have a complete picture of our financial situation. During this time, I was working full-time and my wife was finishing up her last year in nursing school. Mint was an immediate help in keeping track of where our money was going and in starting budget discussions that have proved to be invaluable in our marriage. It also helped initiate discussions on both near-term and long-term goals, which have been so key in helping us plan both strategically and aspirationally. 

As time went on, Mint was instrumental in helping us achieve so many of our goals including:

  • Paying off student loans
  • Paying for grad school with cash
  • Preparing for kids
  • Starting a 529
  • Saving for a down payment
  • Buying a home

Our current goal is to complete our 15-year mortgage in under 5 years. A combination of Mint, aggressive savings, overtime shifts, and side hustles have helped put us in a position to achieve this goal within the next 12 months. Once that goal is complete, we’re excited to have a little fun and celebrate this accomplishment, and then prepare for the next chapter in our financial journey. 

In addition to this goal, we also have various net worth milestones we would like to achieve in the next 1-, 5-, and 10-year periods. We are very excited about the concept of financial independence, and would like to be in a position where we have the opportunity to focus our attention on things outside of work, such as further investing in our family and causes that are important to us. With Mint, we can see how the choices we’re making are helping move us closer to achieving these goals. 

Today, we check Mint on a daily basis in order to stay on top of our expenses and monitor for any fraudulent activity. Years ago, Mint helped me identify a fraudulent charge almost immediately, enabling me to notify our bank and get the issue resolved. Reviewing our expenses enables us to stay within our budget, catch fraudulent activity, and follow the ‘every dollar’ budgeting rules that have been so helpful for us. In addition, linking our accounts has automated what would otherwise be a very manual and time-intensive process. 

I have also loved using the trends feature to have full visibility into exactly how our money is being spent and to help ensure we’re always partnering as we work towards our financial goals, rather than feeling like one person is pulling the other along. We can budget with transparency and not feel any need to hide transactions for personal expenses and rewards or small splurges. 

The trends feature has also allowed us to get a sense of what our typical spending has been in different categories. We periodically review our budget, and being able to easily see our historical spending in different categories has helped us set realistic targets, as well as track our progress when we are attempting to change habits. Lastly, being able to see changes in our net worth over the years has been inspiring, as we have been able to see in real-time how decisions to save or forego immediate gratification can have long-term benefits.

Beyond that, we have found a great deal of joy in doing things ourselves, whether it is cooking meals for the week, doing our own car maintenance, or trying to fix something ourselves before calling someone. Additionally, the satisfaction has compounded as we’ve seen that making these choices has helped us not only learn new things, but also in achieving our goals. 

Knowing what we know now, we’re really excited to pass these values on to our kids, and we’re happy to discuss them with anyone who asks. Additionally, I can see a ‘life’ after work that involves volunteering in some form in the personal finance field, whether that is teaching folks about budgeting or just encouraging them in their financial journey.

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Source: mint.intuit.com