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- Home prices won’t drop, and could surge 15% once mortgage rates fall, Barbara Corcoran says.
- There’s a shortage of homes for sale as people don’t want to give up their cheap mortgage rates.
- The housing market is in good shape, and buyers will pounce once rates drop, Corcoran says.
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Despite grumblings of mortgage credit being overly tight, most Americans now seem to believe it’s easy to get a mortgage.
Fannie Mae released its January 2014 National Housing Survey this morning, which revealed that 52% of respondents thought it would be easy to get a home mortgage today, the highest level in the survey’s three-and-a-half-year history.
[Why mortgages are declined.]
Sure, the survey only extends back to a time when the mortgage industry was grappling with a massive number of defaults and foreclosures, making it mostly unwilling to lend, but it’s welcome news for those thinking about purchasing a home.
The number is also up from 42% back in January 2013. At the same time, 45% still believe it is difficult to qualify a mortgage, meaning we’re a long way from the days of no-doc 100% financing on four-unit investment properties (thank goodness).
The share of those who said they would buy if they move also hit an all-time survey high of 70%, while an all-time low 26% said they’d rent if they moved.
Now if only there were some homes available for purchase…
Expectation for Higher Home Prices Dropping Steadily
While that all sounds like great news, there are a few problems as well.
Consumers are no longer super bullish on housing. In fact, just 65% believe it is a good time to buy, down from 67% a month earlier and 69% a year ago.
The number was as high as 71% during the summer of 2013, but has since fallen as home prices have already surged.
Speaking of home prices, the average 12-month home price change is only expected to be 2%, down from 3.2% in December and 2.4% a year ago.
And only 45% of respondents believe home prices will rise over the next 12 months, compared to 49% in December.
One silver lining is that fewer consumers believe mortgage rates will rise over the next year; just 55% see them climbing from current levels, which is down from 57% a month earlier.
But only 5% see them going down, so there’s not much expectation for things to get any better than they already are.
Americans More Positive About the Economy
Perhaps more important is the fact that more Americans believe the economy is moving in the right direction again.
An improved 39% feel the economy is on the right track, up from 31% in December. And only 54% believe it’s on the wrong track, down from 59% a month earlier.
Additionally, a larger share of respondents believe their personal financial situation will improve during the coming year, which could get more home buyers off the fence.
Taken together, consumers seem to feel that the housing market is healthy again, but after a year of solid (or even unjustifiable) gains, the gold rush appears to be over.
In other words, many would still buy if they happened upon a favorable property at the right price, but few expect to get rich off housing overnight.
While this may sound unappealing, it’s actually nice to hear that consumers are being more modest and realistic in their expectations about the housing market.
We don’t need that bubble mentality to rear its ugly head again so quickly.
Source: thetruthaboutmortgage.com
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Achieving the dream of homeownership takes on a unique flavor when set against the backdrop of the Sunshine State – Florida. Whether you’re drawn to the enchanting coastal allure of Miami Beach condos or the serene suburban vibes of Tampa, FL, houses, navigating the path to owning a piece of Florida paradise comes with its own set of considerations. From the annual dance of hurricane season to the nuances of local architecture and environmental factors, being well-informed through an indispensable home inspection is paramount before buying a home.
Across Florida’s diverse regions, seasoned home inspectors have encountered an array of challenges that potential homebuyers should be aware of. In this Redfin article, we delve into six things to look out for when buying a home in Florida.
1. Regularly assess for mold
“For more than three decades, we’ve been serving the entirety of Florida. Our specialization lies in thorough mold assessments. Given the yearly exposure to hurricanes in our region, homes often experience significant water intrusion and damage from these storms. Unfortunately, some of these issues remain hidden until much later,” shares Inspection Services of Florida LLC.
“We collaborate closely with numerous customers who encounter respiratory problems. In such cases, we conduct assessments to determine if mold is the underlying cause. As a result of the history of hurricanes, we frequently uncover storm-related damage that was either left unaddressed or concealed, often due to house flipping.
Prior hurricanes have taught us a valuable lesson: comprehensive mold inspections are vital before purchasing a home. This step ensures transparency and helps safeguard your investment for the long term.”
Courtesy of Inspection Services of Florida LLC
2. Pest intrusion
“On one of my home inspections I observed a hole in an exterior stucco-covered foam trim board. As I continued my inspection I noticed a Woodpecker flying around the area. So I decided to remove myself a distance away to see what the bird was doing. It only took a few minutes when I saw a Woodpecker land at the entrance of the hole in the trim board. I realized what was happening, the Woodpeckers using its bill to find insects. In this case the material that the Woodpecker was pecking on was easy to penetrate and so it continued to burrow out an entrance into the trim material,” says RTS Inspections.
“Exterior grade cement coated (stucco) foam molding is made of Styrofoam or Polystyrene Foam, which can be fabricated into many different shapes. This product is used nationally in many climates. Foam is easy to cut into and shape as needed. Stucco covered foam trim is very beneficial as a source of insulation and as a decorative element around exterior surfaces of a home, like around windows and doors.
As with all structures, there is always a concern for potential animal intrusion. Animals are very good at finding ways to get into areas to build nests. Rodents for instance will jump off tree branches that are too close to the building and land on roofs. Once they land they search for gaps and holes to enter into.
When inspecting a home it is crucial to look for possible entry points around the house and report on those areas. The next step for the inspector is to observe areas inside the house that might be impacted by those entry points. In the case of this Woodpecker, the damages were limited to just the exterior trim board. In other cases, I have seen gaps in soffits and eaves where animals have penetrated and entered into attics. In the case of animal or pest infestation, a licensed pest removal contractor is recommended.”
Courtesy of RTS Inspections
3. Storm impact
“Whether factual or mere folklore, the moniker ‘Lightning Capital of the World’ is a label frequently associated with Florida,” shares Sherlock Home Inspections. “Given the prevalence of storms in the region, it’s a nickname that holds some truth. However, with these climatic conditions comes a distinctive set of challenges, particularly in the realm of electrical systems.
Take a close look at the copper wires shown below. While discoloration might typically arise due to oxidation, the distinct blue hue of these wires stems from a surge triggered by a lightning storm. Upon more comprehensive inspection, a host of additional issues were brought to light—underscoring the importance of addressing electrical concerns with precision and vigilance in a region renowned for its electrical intensity.
Courtesy of Sherlock Home Inspections
In a state prone to high winds and intense rainfall, addressing roof problems promptly is imperative. Florida’s climatic conditions make it imperative to identify and rectify roofing issues as soon as they arise. It’s crucial to recognize that even minor roof concerns can rapidly snowball into significant complications. Given this reality, securing the services of a knowledgeable Home Inspector becomes paramount. A seasoned professional who understands the intricacies of roofing systems can detect potential red flags, ensuring that minor hitches are nipped in the bud before they evolve into major complications. With the right expertise at your side, you can confidently navigate the challenges of maintaining a secure and resilient roof in Florida’s ever-changing weather landscape.”
4. Termites
“Florida is susceptible to termite problems due to its warm and humid climate, which creates a conducive environment for these pests to thrive. Termite swarms are a common occurrence in Florida during the warm and humid months. These swarms are often a sign of an established colony nearby, and they can be quite alarming to homeowners,” warns Next Step Inspections.
“The two most common termites are:
Subterranean: These are the most common and destructive type of termites in Florida. They build their colonies underground and create mud tubes to access wood above ground. They can cause significant damage to structures if left unchecked.
Drywood Termites: These termites infest dry wood and do not require contact with soil. They can be found in furniture, wooden beams, and other wooden structures. Their infestations can be hard to detect until significant damage has occurred.
We have found that if the wooden structures go untreated for long periods of time and these insects invade the wood, severe damage can impact the integrity and the structure. We have seen areas that are unsafe to walk in the attic due to significant termite damage. In cases where the damage is detrimental, a structural engineer or building contractor will review the damages to recommend the proper repair.
Dealing with termites in Florida often requires professional pest control services. Regular inspections by experienced technicians can help detect infestations early and implement effective treatment plans. We recommend having a Wood Destroying Organism (WDO) Inspection when you are considering the purchase of a property. This inspection can help identify other issues the home inspector may not be qualified to include in their report.”
5. Polybutylene piping
“Polybutylene piping stands as a nightmare for both property owners and the insurance industry at large. As a solution for home re-piping, polybutylene piping emerged on the scene. It offered flexibility, ease of use, and cost-effectiveness during its time. While it had been in use since the 1970s, its popularity soared in the 1980s and 1990s. However, it was eventually discontinued in the mid to late 1990s due to its susceptibility to leaks,” informs Orlando’s Best Home Inspection. “The chlorine present in municipal water systems caused joints and piping to fail. Typically, the interior of the tube is gray or black, while the exterior can range in blue, black, or gray. The lettering ‘PB’ may also be visible, which is the clearest giveaway.
Presently, many homes still feature polybutylene piping, prompting insurance companies to mandate replacement with approved alternatives like PEX, CPVC, or copper piping.
In our practice, we thoroughly assess this issue during both our standard Orlando home inspection and our Orlando 4-point inspection. We frequently encounter cases where partial re-piping work has been carried out on visible portions of the supply system, only to find original polybutylene piping remaining in less accessible areas such as the attic. Correcting this problem is costly and presents a major obstacle in obtaining home insurance.”
6. Stucco cracks and waterproofing
“Most homes in SouthWest Florida feature exterior walls made of concrete block with stucco finishing. It’s common for stucco to develop hairline cracks over time. These cracks are generally not a structural concern as long as they are too narrow to fit a penny. If a penny can fit, it raises some cause for concern,” suggests Golden Rule Home Inspections.
“When cracks in the stucco follow the block pattern, it indicates excessive settlement in the foundation. Again, if these cracks are wide enough to accommodate a penny, they warrant attention.
The waterproofing of SouthWest Florida’s concrete block and stucco homes relies on painting the stucco. If a crack appears in the stucco, the waterproofing becomes compromised, potentially leading to water intrusion and subsequent mold growth. To address this, it’s recommended to repair the crack by applying a small amount of Mor-Flexx caulking or an equivalent product. After applying, gently rub it in with a sponge or foam paint brush to blend it into the wall’s finish, followed by painting the wall. Mor-Flexx boasts a mortar-like appearance that stretches like rubber, retaining its elasticity over the years.”
Courtesy Golden Rule Home Inspections
7. Insurance challenges and regional concerns
“I think the biggest issue in Florida right now is insurance companies leaving the state. They have become very particular about roofs. Even though most asphalt shingle roofs last more than 20 years, they do not like roofs past 15 years old. Even in very good condition. This due to the losses coming from hurricanes in the recent past,” says Pillar To Post Home Inspectors.
“Insurance inspections need to be done on top of getting a thorough home inspection. 4-Point (Roofs, Plumbing, Electrical, and HVAC) Inspections are expected on homes 20 years old or older. Getting a Wind Mitigation Inspection, which is determining the home’s wind resistance, can save a lot of money on insurance costs.
Another thing I think is very regional to the state is mold testing. With the humidity in Florida, this is a common concern. Especially in homes that have been vacant, and the air conditioner is not turned on or set at 78 degrees or higher.”
Source: redfin.com
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Real estate listings platform Zillow says it’s planning to buy and sell homes in the Las Vegas and Phoenix areas as part of a major change to its business model.
The company is working with Berkshire Hathaway and Coldwell Banker to make offers on suitable homes, before selling these to buyers. Zillow will pay commissions and also “make necessary repairs and updates and list the home as quickly as possible.”
Zillow is calling the new program “Instant Offers”, and says it will help provide agents with an opportunity to acquire new listings by hooking them up with motivated sellers who’re taking direct action to sell. The way it works is that interested homeowners can offer to sell their home to Zillow directly. They simply submit their home for consideration, and after a review Zillow will make what it believes is a fair offer to buy that property.
“Across all testing, Zillow found the vast majority of sellers who requested an Instant Offer ended up selling their home with an agent, making Instant Offers an excellent source of seller leads for Premier Agents and brokerage partners,” the company said in its announcement.
The announcement is a big change for Zillow, which mainly acts as a hub of information on properties for sale. By buying and selling homes itself, Zillow is taking on significant costs and risks, which may help to explain why its share price fell by 7 percent on the news. Clearly, some investors are averse to this increased risk.
Nonetheless, Zillow said it was optimistic that the new model would prove to be successful after extensive testing carried out in the last year.
Zillow CEO Spencer Rascoff later told CNBC that the company was “ready to be an investor in our own marketplace”. He said Zillow has a major advantage as it has unique access to a “huge audience” of sellers and buyers.
The move puts Zillow in direct competition with a site called Opendoor.com, which operates a similar business model, buying properties and readying them for the next buyer.
Source: realtybiznews.com
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The good news:
While the exact numbers will vary depending on where you live, the latest survey of real estate experts forecasts that home prices will end 2016 up 4.5 percent on year-over-year basis.
And the bad:
Looking forward, they also expect the annual pace of home value appreciation to slow to 3.6 percent in 2017, 3.2 percent in 2018, 3.1 percent in 2019 and to 2.9 percent in 2020.
America’s two housing markets
House prices have always varied greatly by location, but never more so than during the current housing recovery. Prices are—and have been—rising at very different rates in major markets.
Since the housing boom and bust gave way to recovery, the U.S. housing market has seemingly split into two unequal parts: Middle America, and coastal America. Home values are growing rapidly in markets on both East and West Coasts as hot job markets help keep demand for housing high, and more slowly in the Midwest and Heartland, where negative equity is still pervasive and job growth scant.
As a result, Americans—especially younger millennials—are moving away from Middle America and to the coasts in large numbers, whether for jobs, lifestyle preferences or both.
This June, home prices in San Francisco were rising 9.5 percent on a year-over-year basis while prices in Chicago rose only 1.4 percent.
How long will this trend continue?
More than half of those experts in the survey said they believed this trend has either already begun to reverse or will reverse in coming years.
Another 11 percent said this trend was actually an illusion, and that coastal markets are no more or less popular now than they’ve always been relative to Middle America. Just 25 percent of experts with an opinion said the coastal/Middle America split was likely to be permanent.
Of those experts who said the trend was likely to reverse, a majority (56 percent) said job growth in the middle of the country—driven by companies looking for cheaper alternatives to the coasts in which to expand—would eventually lure residents back to the Heartland.
Similarly, almost a quarter (24 percent) said Americans would migrate inland in search of more affordable housing, and 13 percent said Americans would start to seek the most traditional lifestyle that the middle of the country has to offer. Only 2 percent said climate change is likely to force residents away from the coasts.
In addition to the coastal/inland divide, the housing market has also experienced a notable shift between urban and suburban communities. The suburban home – long a symbol of success, stability, and the American Dream—may be losing some of its luster as urban homes grow in value more quickly.
Local factors, like employment and income growth, transportation infrastructure improvements like new highways and mass transit, and new home construction will have as much or more impact on home prices in your community than national or regional factors.
What this means for you
So far, coastal markets have been doing well. Prices are up, and many have started to think they’re on their way back to pre-crash highs. However, thanks to all the possibilities discussed above, that may not be the case at all.
If you’re in a hot coastal market, this can mean three things for you:
- Thinking about selling your home? 2016 might just be the best year to do so.
- Just bought a home this year? Don’t expect your new home to appreciate as it has been, at least through the end of the decade.
- Looking at buying a home as an investment? You’ll probably get a better rate of return in the stock market. However, these predictions will vary greatly depending on where you live.
This, of course, depends on your location.
Source: totalmortgage.com
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Wage growth also likely remains too high to be consistent with 2% inflation over the long run, which the ESR Group believes will keep monetary policy tight.
Fannie Mae maintains its baseline call for a recession to occur – forecasting it to begin in the first half of 2024. In its July ESR note, Fannie Mae projected a modest recession beginning in Q4 2023 or Q1 2024.
The group upgraded its 2023 real GDP growth outlook to 1.9% from 1.1% on a Q4/Q4 basis and revised its 2024 GDP growth prediction to a 0.2% decline from 0.1% previously, reflecting a recession hitting later than was initially anticipated.
Subdued home sales
Regardless of whether a soft landing is achieved over the coming year, Fannie Mae expects existing home sales to stay subdued and within a tight range.
“With an ongoing tight supply of existing homes for sale and the recent rise in the 30-year fixed-rate mortgage rate to around 7%, we expect home sales in 2023 to remain near the lowest annual level since 2009,” the group said.
Total existing home sales fell 2.2% in July from June to a seasonally adjusted annual rate of 4.07 million. Year-over-year, sales slumped 16.6% down from 4.88 million in July 2022, according to the National Association of Realtors.
“If a recession is avoided, then ongoing limited supply of homes for sale on the market combined with continued affordability constraints and the ongoing ‘lock-in’ effect, whereby existing owners do not want to give up their current low mortgage rates, is expected to lead to a low pace of sales,” according to the ESR group.
Rising mortgage rates will also exert more downward pressure on sales. However, given the already very low pace of sales, the majority of highly interest-rate-sensitive borrowers are already on the sidelines and current sales activity is being supported by less rate-sensitive buyers, Fannie Mae said.
In the case of a recession scenario, interest rates would likely pull back somewhat, lessening the lock-in effect thereby potentially boosting the number of homes available for sale.
However, in a recession, a weaker labor market, tighter credit, and lower consumer confidence would act as downward pressure on housing, Fannie Mae noted.
In contrast, new home sales and construction, while choppy in recent months, have generally been on an upswing.
Single-family housing starts jumped in July by 6.7% to a pace of 983,000 annualized units. This was 9.5% higher than a year prior, the first annual increase since April 2022.
However, based on permits being substantially lower at 930,000, Fannie Mae expects some pull-back in the near term, especially given the recent rise in mortgage rates.
Fanie Mae expects a modest pullback in construction due to a slowing economy, though a similar outcome may occur if instead a soft landing is accompanied by higher for longer mortgage rates leading to slower housing construction and sales.
“In fact, somewhat softer housing construction and sales may be needed to make a soft landing possible,” according to the ESR group.
Mortgage originations forecast little changed
The forecast for purchase origination volume in 2023 is largely unchanged at $1.3 trillion.
For 2024, the ESR group revised upward its forecast of purchase mortgage originations volumes by $25 billion to $1.5 trillion, consistent with upward revisions to the home sales forecast.
Refinance volumes are expected to be $261 billion in 2023 and $456 billion in 2024, representing downgrades of $4 billion and $9 billion, respectively, from the July projections.
Source: housingwire.com
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Washington, DC
CNN
—
Fees on mortgages backed by Freddie Mac and Fannie Mae are set to change next month, in a plan designed to make homeownership more affordable for more people. Broadly, the fees will go down for many with lower credit scores and will increase for many with higher credit scores.
But that doesn’t mean people with lower credit scores will pay less than those with higher credit scores. The changes mean that people with higher credit scores will still pay less based on lower risk to the lenders, but having a lower credit score will now come with less of a penalty.
There are many variables that go into the cost of a home loan, including what kind of property you are buying, how much money you’re putting down and how high or low your credit score is.
These variables help lenders — and government-backed Freddie and Fannie, which buy the vast majority of loans from lenders — price loans for risk. After starting with the basic, or par, rate, additional price adjustments are added in order to account for how risky the loan is for lenders to make.
Pricing hits like this are called a loan level price adjustment, or LLPA, and have been around for a while and are occasionally updated. The price adjustments allow Freddie and Fannie to keep from being undercapitalized and over-exposed to risk. Fannie and Freddie, which guarantee roughly half of the country’s mortgages, do not directly issue mortgages to borrowers, but instead buy mortgages from lenders and repackage them for investors.
Changes to existing fee structure
Last year the Federal Housing Finance Agency, which oversees Freddie and Fannie, increased the fees on loans for which there is less reason for government support, including some high balance loans, vacation homes and investment properties.
In October, the FHFA announced it would eliminate upfront fees for certain borrowers and affordable mortgage products, who tend to be borrowers with limited wealth or income, while putting in place increases to other fees, specifically for most cash-out refinance loans.
Then, in January, the FHFA announced additional updates to the fee structure for single-family homes that made permanent the eliminated fees and spelled out how other fees would be increased.
“These changes to upfront fees will strengthen the safety and soundness of the enterprises by enhancing their ability to improve their capital position over time,” Sandra L. Thompson, director of FHFA said at the time. “By locking in the upfront fee eliminations announced last October, FHFA is taking another step to ensure that the enterprises advance their mission of facilitating equitable and sustainable access to homeownership.”
How the fee change works
For those with lower credit scores, the fee changes will reduce the penalty for having a low score. For those with higher credit scores, more price tiers have been put in place, which in some cases may increases fees.
For example, a buyer who made a 20% down payment with a credit score of 640 would see their fee drop 0.75% from 3% to 2.25% with the updates. Another buyer, also making a 20% down payment, who has a credit score of 740, would see their fee climb by 0.375%, from 0.5% to 0.875%.
The fee will still cost the home buyer with the lower credit score more.
A buyer with a 640 credit score and an 80% loan-to-value ratio will have a fee of 2.25%, while a buyer with a 740 score will have a fee of 0.875%. The difference in assessed fees is about $4,000 more for a buyer with a 640 credit score than for a buyer with a 740 credit score, based on a $300,000 mortgage.
The table outlining the fees based on loan to value ratio and credit score have been posted by Freddie Mac and Fannie Mae.
Some critics say well-qualified buyers are already struggling to enter the housing market.
“Between the lack of supply, interest rates more than doubling in the past year and pricing in most of the country remaining relatively flat, the barrier to entry has never been more difficult to pursue the American Dream,” said Pierre Debbas, managing partner at Romer Debbas, a real estate law firm.
“The intent of providing access to credit to lower-income borrowers with lower credit scores and down payments is an important initiative to help expand the demographic that can acquire a house and theoretically build wealth,” he said. “However, doing so at the expense of other consumers who are already struggling to enter the market is a mistake.”
But that criticism is misplaced, said Jim Parrott, a nonresident fellow at the Urban Institute and owner of Parrott Ryan Advisors, who added that it is “conflating two separate, largely unrelated moves on pricing for the government-sponsored enterprises.”
In a blog post, Parrott explains that the increase in fees for vacation homes and high-value loans allows Freddie and Fannie to reduce fees for some other buyers.
He also points out that the suggestion that fees are lower for those who make a smaller down payment misses a critical point. Any loan with less than a 20% down payment must have private mortgage insurance.
“So those who put down less than 20% pose less risk to the GSEs and should pay less in fees to the GSEs,” Parrott wrote.
Source: cnn.com
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Three Chinese ministries issued detailed rules on Friday regarding the criteria for first-home mortgages, the state news agency, Xinhua, said.
Such mortgages could be based on the number of homes buyers own, rather than their prior mortgage loan records, the agency said, citing a joint statement from the housing regulator, the central bank and the national financial regulator.
The step will allow more homebuyers to access preferential down payments and interest rates for first-home loans, so helping to cut purchase costs, it added.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
Source: devdiscourse.com
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Fall decor that makes a home look expensive definitely doesn’t have to come at a premium price. Interiors knowhow can bring high-end results without a big spend.
An expensive fall look can be an aesthetic rather than the result of purchasing power, and that’s a principle that applies generally, as well as proving applicable to fall decor ideas.
fall decor on a budget? This is what interior designers recommend.
Fall decor that looks expensive
Making a home look expensive relies on understanding how to dress it, and which materials, textures, and objects to choose. Anything that makes your house look cheap is, of course, out of the question.
And whether we’re talking living room fall decor, fall color schemes, fall table decor, fall mantel ideas, or any other part of the home, the same precepts apply when introducing seasonal style. Be inspired by these interior designers’ suggestions to get the high-end look for fall.
1. Atmospheric lighting
The right lighting ideas are crucial to make a home look expensive – and key to creating the right autumnal atmosphere. ‘Fall denotes a particular coziness, and lighting is an easy way to nail it,’ says Dan Mazzarini, principal and creative director of BHDM Design and ARCHIVE by Dan Mazzarini.
‘It’s all about finding that sweet spot where functionality meets aesthetics – light dimmers work wonders,’ he advises. ‘With a simple adjustment, you can create a warm mood or set the stage for a cozy movie night. Our suggestions: Lutron Credenza plug-in dimmer and soft white dimmable light bulbs.’
Find the Lutron Credenza dimmer at Amazon.
2. Rich color schemes
Rich color schemes and muted undertones create a high-end look perfect for the season, says interior designer Artem Kropovinsky, and you can look to the color wheel to put them together. For the living room he suggests forest green complemented by subdued taupe, and for the bedroom: intense wine red contrasted with a mellow beige.
‘Shades like forest green and wine red impart a feeling of affluence and richness,’ he explains. ‘Melding them with understated tones enhances their depth without overpowering the ambience. Such hues mirror autumn’s spirit – the changing foliage and the snug essence of the time. The outcome? A fusion of warmth, plushness, and inviting atmosphere.’
Madison Popper, founder of the global interior design firm Chill Casa.
‘You can elevate the allure of your table settings by ensconcing glass vases with meticulously gilded branches and dried florals, crafting an opulent focal point, or add a heritage charm through the inclusion of resplendent gilded mirrors and carefully curated vintage artifacts, capturing the essence of timelessness and extravagance.
4. Accent wall color
Consider creating an accent wall to elevate a room and transform it for a new season. ‘I love a good accent wall paint color,’ says interior designer Chantelle Hartman Malarkey.
‘The right color in a room can bring it to life. I love one painted accent wall that can be a richer darker color that really looks beautiful during the fall season.’
5. Injections of color
For a chic take on fall decor, consider using accents of color. ‘Instead of the bright red and orange, opt for a neutral palette with selective small pops of color and subtle textures – this allows your fall decor to easily blend in with your existing pieces, making your space feel more cohesive and thoughtfully curated,’ says Jennifer Verruto, founder and CEO of Blythe Interiors.
‘For example, ditch a bright orange vase for a simple gold one instead. Something neutral, yet festive like gold, can easily transition to the following season’s decor. For fall, throw in some gorgeous, dried florals and then swap them out for something more wintery like holly leaves when the time arrives. This will make your decor feel more sophisticated.’
6. Premium seating decor
Dress up the seating around your home for a high-end look. ‘Apt seating adornments can be likened to fine jewelry for interiors,’ says Artem Kropovinsky. ‘Just as the perfect pendant can amplify attire, the ideal blanket or cushion can present furnishings in a more upscale light.’
For the living room, he suggests ‘silken pillows in colors harmonizing with the room, perhaps taupe or wine red’. And for the bedroom, ‘synthetic fur wraps casually placed on a solitary chair or the bed’s edge’.
‘Materials like silk and synthetic fur epitomize luxury. They’re not just visually stunning but also delightfully tactile, enriching the sensory experience,’ he says.
FAQs
How do you decorate for fall classily?
outdoor fall decor. Sophisticated fall weaths and elegant fall front door decor can strike a premium note and boost curb appeal. And for both inside and out, fall craft ideas can create decor that looks expensive but in which you invested just enough for the materials plus your own time.
Source: homesandgardens.com
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When it comes to buying a home, most individuals choose to purchase something already on the market. However, in some situations, it can sometimes be advantageous to buy raw land and have a home built for you from the ground up.
For instance, in a seller’s market when there aren’t too many homes on the market but a huge demand for home purchases, you can bypass the costly process of haggling with sellers and paying way above the asking price for a home. And, of course, you’ll get to design a home that’s exactly the way you want it.
CNBC Select rounded up four of the best construction loan lenders to consider if you’re thinking of building a brand-new home or doing a major renovation of your existing home. We evaluated lenders based on a number of factors including the types of loans offered, customer support and others (see our methodology below).
Best construction loan lenders
Best for in-person service
TD Bank Mortgage
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Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
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Types of loans
Fixed-rate, adjustable-rate mortgage, jumbo loans, construction-to-permanent loan, VA loan, FHA loan, medical professional mortgage
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Terms
Up to 30 years
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Credit needed
Not disclosed
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Minimum down payment
Options as low as 3%
Pros
- Carries loan option that allows for a slightly smaller downpayment at 3%
- Has both online and in-person service
- Online support available
- Mobile app available
- Refinance options available
Cons
- Doesn’t offer USDA loans
Who’s this for? TD Bank is a household name in the banking industry, even calling itself “America’s Most Convenient Bank.” In addition to offering service online and through a mobile app, TD Bank has over 1,100 physical branches throughout the U.S., making it an ideal lender for those who prefer an in-person process.
This lender offers what’s known as a construction-to-permanent loan option. This means that your construction loan converts into a regular mortgage upon completion of the build. This loan option is typically advantageous for many aspiring homeowners since you only have to submit one application and pay one set of closing costs.
TD Bank’s construction loan has fixed-rate and adjustable-rate options and can be used for primary residences of 1 to 4 units and for second or vacation homes.
Best for loan variety
Flagstar® Bank
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Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
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Types of loans
Conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, adjustable-rate mortgages, construction loans, professional loans and Community Loans
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Terms
8 – 30 years
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Credit needed
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Minimum down payment
0% if moving forward with a USDA loan
Pros
- Offers a wide variety of loans to suit an array of customer needs
- Fixed-rate and adjustable-rate mortgages available
- Borrowers who qualify for a jumbo loan can apply for up to $3 million
- Has an online process but also in-person branches
Cons
- Home equity loans are only available in limited geographic areas
Who’s this for? Flagstar Bank offers a couple of different construction loan options: It offers a renovation loan, a construction draw and a one-close construction loan. The renovation loan is meant for those who are purchasing a property that needs significant repairs; instead of applying for two loans (a mortgage and a separate renovation loan) this option lets you roll both expenses into one loan. This way, you’ll pay just one set of closing costs and have just one monthly payment.
The construction draw option lets you pay only interest during the phase where your home is being built (the build must be completed within 12 months, though). Once your build is complete, you’ll need to apply for a mortgage to cover the principal payments plus the monthly interest. This is called an end loan. With this option, you’ll have to submit more than one application and pay more than one set of closing costs.
With the one-close construction loan, you’ll pay interest during the home’s building phase (similar to the construction draw option) except your construction loan will convert to a traditional mortgage upon completion of the build. This means you only have to submit one application and pay one set of closing costs.
Best for a longer construction period
Citizens Bank Mortgage
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Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
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Types of loans
Fixed-rate mortgage, construction loans
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Terms
15 – 30 years
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Credit needed
Not disclosed
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Minimum down payment
Not disclosed
Pros
- 0.125% mortgage rate discount available to existing customers in New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, Pennsylvania, Ohio and Michigan
- Has both online and in-person service
- Online support available
Cons
- Mortgage rate discount isn’t available in all states
Who’s this for? Citizens Bank offers a construction-to-permanent loan option, which means borrowers will only submit one application and pay for one set of closing costs. But the most appealing feature of this loan is that borrowers can take up to 18 months to complete construction on their homes. Typically, construction loan lenders only allow borrowers 12 months to finish construction, so the extra time allows your project to recover from any snags in the plan or delays.
For your permanent financing, you can choose from fixed or adjustable-rate options.
Best for lower credit scores
Cardinal Financial Mortgage
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Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
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Types of loans
Conventional loan, FHA loan, VA loan, USDA loan, jumbo loans and construction loans
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Terms
Not disclosed
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Credit needed
Minimum of 550 for some loan types
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Minimum down payment
Not disclosed
Pros
- Wide variety of home loan options
- More accessible loan options for borrowers with low credit scores
- Online support available
- Down payment assistance available in all 50 states
Cons
- Doesn’t offer HELOC’s
Who’s this for? Cardinal Financial is an online lender that boasts low credit requirements for its various home loan options. According to one blog post on the company’s website, it accepts credit scores as low as 550 for VA and FHA loans. FHA loans typically require a credit score of at least 580. Jumbo loans typically have a credit score requirement of 700 but Cardinal Financial considers jumbo loan applicants with a minimum credit score of 660.
This lender offers construction loans for both home renovations and brand-new home construction.
FAQs
What is a construction loan?
A construction loan is a short-term loan that can be used to cover the cost of building a brand-new home. Typically, the funds get disbursed in increments as the home-building project progresses, and the construction must be completed within 12 months.
This option can be ideal for individuals who want a home that’s extremely customized to their liking, but the process can often be very costly since you’ll need to purchase land to build on.
How do construction loans work?
Once you’re approved for a construction loan, the funds get disbursed to your checking account incrementally as your construction progresses. An appraiser will usually check in during different stages of the build to approve more fund disbursements for you.
During the building stage, you’ll typically only pay interest on the loan. Once the build is complete, the loan converts to a traditional mortgage (if you choose a construction-to-permanent loan) and you make payments toward both principal and interest. If you chose a construction-only loan, you’ll need to apply for a separate mortgage (called an end loan) to pay off the principal on the construction loan, or you can pay the principal off out of pocket in one lump sum.
What is the best credit score for a construction loan?
Most lenders consider a credit score of at least 680 for a construction loan. Some may actually require a minimum of 720. As with any other form of credit, though, a higher credit score means you’re more likely to get approved for your desired funding amount. Plus, you’ll be able to qualify for some of the lowest interest rates offered by the lender.
If your credit score isn’t yet considered to be in a healthy range, it’s recommended that you take steps to improve your score before submitting loan applications.
What is the difference between a construction loan and a regular loan?
A construction loan is used to finance the cost of a property that hasn’t been built yet. A regular or traditional mortgage is used to purchase an existing property. Construction loans are also meant to be short-term loans, lasting only up to 12 months before you’ll have to conclude your build and convert the loan into a traditional mortgage. Regular mortgages, though, are long-term loans, which are typically meant to be paid off in as little as 10 years and as long as 30 years.
Will I pay a fixed rate on my loan?
Various lenders offer both fixed-rate and adjustable-rate loans for new builds. Once you lock in a rate for the construction phase of the project, that same rate typically carries over into the traditional mortgage payment phase as long as you choose a fixed-rate loan.
Can you act as your own general contractor/builder?
Construction loans require a licensed contractor or builder to carry out the construction phase (plans for the home and for the contractor must be confirmed and submitted before you can be approved for a loan). If you are not a licensed contractor, you cannot act as your own general contractor for the construction of your home.
Bottom line
Building a home can be a very exciting but taxing process, especially since construction loans can sometimes be tougher to come by. Still, borrowers should do their homework to make sure they agree with all the terms set forth by a lender and that the loan they ultimately go with is best for their needs.
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Our methodology
To determine which construction loan lenders are the best, CNBC Select analyzed dozens of U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.
When narrowing down and ranking the best construction loans, we focused on the following features:
- Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you’ll lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
- Types of loans offered: The most common kinds of construction loans include construction-to-permanent loans, construction-only loans and renovation loans. Having more options available means the lender can cater to a wider range of applicants.
- Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender. Though some lenders on this list do not charge these fees, we have noted any instances where a lender does.
- Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
- No early payoff penalties: The mortgage lenders on our list do not charge borrowers for paying off the loan early.
- Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches.
- Customer support: Every mortgage lender on our list provides customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
- Minimum down payment: Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders that offer additional specialty loans that come with a lower minimum down payment amount.
After reviewing the above features, we sorted our recommendations by best for in-person service, loan variety, a longer construction period and lower credit scores.
Note that the rates and fee structures advertised for mortgages are subject to fluctuate in accordance with the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee your interest rate and monthly payment remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Source: cnbc.com