It’s time to check out “Inspire Home Loans,” which is the lending partner of home builder Century Communities.
They pride themselves on knowing how their parent company’s construction timelines work so your home (and) loan remain on schedule.
In addition, they offer special financing deals that are reserved only for the buyers of properties in their communities.
This means you might be able to get your hands on a low mortgage rate that outside lenders just can’t beat.
Read on to learn more about them to determine if they could be a good fit for your mortgage needs.
Inspire Home Loans Fast Facts
Direct-to-consumer mortgage lender
Offers home purchase loans
Founded in 2016, headquartered in Newport Beach, CA
A wholly owned subsidiary of Century Communities
Parent company is publicly traded (NYSE: CCS)
Licensed to lend in 18 states across the nation
Funded about $2 billion in home loans in 2022
Most active in California, Colorado, Georgia, and Texas
Also operates a title company and insurance agency
Known for offering big mortgage rate buydowns
Inspire Home Loans is a wholly owned subsidiary of Century Communities, which offers to-be-built and quick move-in homes in a handful of states nationwide.
Their parent company consider themselves a top-10 home builder nationally, and is publicly traded under the NYSE symbol CCS.
The lending division has been around since 2016 and is headquartered in Newport Beach, CA.
Their primary focus is providing home purchase loans to buyers of newly-built homes in the many communities they operate throughout the country.
They are licensed in 18 states, including Alabama, Arizona, California, Colorado, Florida, Georgia, Indiana, Louisiana, Kentucky, Michigan, Nevada, North Carolina, Ohio, South Carolina, Tennessee, Texas, Utah, and Washington.
Per HMDA data, they are most active in the states of California, Colorado, Georgia, Nevada, and Texas.
They’ve currently got 63 sponsored mortgage loan originators (MLOs) on their staff per the NMLS.
Similar to other builder-affiliated lenders, Inspire Home Loans also operates a title insurance and settlement company called Parkway Title, and an insurance agency called IHL Home Insurance Agency.
This means you can do one-stop shopping for all your home loan needs, though it’s always prudent to shop around for these third-party services as well.
How to Get Started
You can either visit a Century Communities new home sales office to get paired up with a loan officer, or simply go online.
If you go to their website, you can click on “Pre-qualify Today” to access a loan officer directory that lists the many communities operated by their parent company.
After selecting a state, you’ll be able to select a community to see which loan officers serve that particular development.
From there, you’ll see contact info and you’ll have the ability to get pre-qualified for a mortgage or log in if you’ve already applied.
Their digital loan application is powered by fintech company nCino. It allows you to eSign disclosures, link financial accounts, and complete the app from any device.
Once you’ve applied and been approved, you can satisfy conditions electronically by uploading necessary documents 24/7.
You’ll receive automatic status updates as your loan makes it from underwriting to closing.
You can also lean on your dedicated, human loan team that is available to assist and provide answers whenever you have questions.
They appear to offer a good balance of both tech and human touch to get you to the finish line.
And because they are affiliated with the builder, they’ll be able to communicate freely and keep your loan on track based on construction status.
Loan Programs Offered
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo loans
FHA loans
VA loans
USDA loans
Fixed-rate and adjustable options available
Down Payment Assistance
Municipal Bond Programs
As noted, Inspire Home Loans exists to serve buyers of Century Communities properties.
Since that’s all they focus on, they should have a good handle on the process.
In terms of loan choice, they’ve got all the major loan programs a home buyer could need, including conforming loans, jumbo loans, and the full array of government-backed loans.
This includes FHA loans, VA loans, and even USDA loans if purchasing a property in a rural location.
Both fixed-rate and adjustable-rate mortgage options are available, including the 15-year fixed, 5/6 ARM, and 7/6 ARM.
Additionally, they’ve got access to numerous homebuyer assistance programs, including down payment assistance and municipal bond programs.
These can come in handy if you’re short on down payment funds and/or need help with closing costs.
The Ascent Club
Inspire Home Loans also offers free access to a program called “The Ascent Club.”
It provides financial insights and recommendations to help prospective customers reach their homeownership goals.
This could include learning how to save for a down payment, how to build asset reserves, how to boost credit scores, and even improve your DTI ratio.
The goal is put homeownership within reach if there are certain fixable barriers that are holding you back.
And whether you’re a first-time home buyer or seasoned pro, they conduct free webinars to answer any mortgage questions you may have.
Inspire Home Loans Rates and Fees
They don’t list their mortgage rates or lender fees online, which isn’t atypical. But I do give lenders kudos when they do. It’s a plus from a transparency standpoint.
So we don’t know how competitive they are relative to other lenders, nor do we know if they charge a loan origination fee, underwriting and processing fees, application fee, and so on.
Be sure to inquire about any and all fees when you first discuss loan pricing with a mortgage loan officer.
Once you get a rate quote, that along with the lender fees makes up your mortgage APR, which is a more effective way to compare loan costs from lender to lender.
Despite the lack of information, they do advertise mortgage rate buydowns on their home builder website.
And from what I saw, they were some of the biggest permanent and temporary mortgage rate buydowns around.
One example offered a 2/1 buydown to 3.5% for the first year, 4.5% in year two, and 5.5% fixed for the remaining 28 years.
That’s pretty tough to beat when mortgage rates are close to 7.5 today%
But as always, take the time to shop your rate with other lenders, credit unions, mortgage brokers, and so on.
Inspire Home Loans Reviews
Over at experience.com, Inspire Home Loans has an excellent 4.89/5-star rating from over 1,500 customer reviews.
However, they have a 1.8/5 on Yelp from about 30 reviews, though the sample size is obviously quite small. At Redfin they have a better 4.4/5 from 7 reviews, which again is a small sample.
You can also search their individual offices throughout the country on Google to see reviews by location. This could be more helpful if you work with a particular regional office.
Their parent company has an ‘A+’ rating on the Better Business Bureau (BBB) website and has been accredited since 2015.
Despite the solid letter grade rating, they’ve got a poor 1.05/5-star rating based on over 100 customer reviews. This could have to do with their numerous complaints filed over the years.
Be sure to take the time to read through some of them to see how many pertain to their lending division versus their new home building unit.
Of course, chances are if you’re using Inspire Home Loans to get a mortgage, you’re also buying a Century Communities property.
To sum things up, Inspire Home Loans has the latest tech, a good array of loan programs, and may offer pricing specials that outside lenders can’t compete with.
They have some mixed reviews, but mostly positive ones, though your mileage may vary depending on who you work with.
But even if the process has hiccups, the savings from a big mortgage rate buydown could be worth it.
Still, take the time to shop third-party lenders, brokers, banks, etc. With other offers in hand, you can negotiate and potentially land an even better deal.
Inspire Home Loans Pros and Cons
The Good
Digital mortgage application (can apply for a home loan online)
Mostly paperless loan process powered by nCino
Lots of loan programs to choose from including homebuyer assistance
Mortgage rate specials for buyers of Century Communities homes
Mortgage financier Fannie Mae released a pricing and eligibility update for the home loans it buys, stepping up mortgage underwriting guidelines to better mitigate risk during the ongoing mortgage crisis.
Fannie Mae noted that its purpose is to provide stability and affordability to the housing market in good times and in bad, but added that recent market turbulence has forced it to adjust its risk appetite and tighten eligibility requirements and pricing.
To that end, a minimum credit score of 580 will be required for most loans delivered to Fannie Mae, with certain exceptions such as manually underwritten files with non-traditional credit.
The company is also reducing loan-to-value ratios for three-four unit properties, second homes, combo loans, and certain streamlined refinance loan programs.
Fannie has also noted that because prior foreclosure action indicates a borrower’s likelihood to default in the future, the time elapsed between a foreclosure and re-established credit history will be bumped up to five years from the previous four.
Additionally, loans with excessive prior mortgage delinquencies, defined as any mortgage tradeline that has one or more 60-, 90-, 120-, or 150-day late reported within 12 months prior to the credit report date, will not be eligible for delivery to Fannie Mae.
The GSE is also cracking down on so-called “authorized user” tradelines, and may not consider them in the underwriting decision unless the borrower can provide written documentation that he/she has been the sole payer for at least the prior 12 months.
Most of these changes will be mandatory effective June 1, though mortgage lenders can apply the new requirements immediately.
Buying a home is an incredible accomplishment but it does not come without its challenges. Not only are you on the hunt for your dream house (you know, that one with that perfect yard for the dog and amazing fireplace), you’re likely also taking stock of your finances to figure out what you can afford.
And then there’s getting a mortgage loan, which means finding a good, reputable mortgage lender — one that offers the type of loan program that best suits your needs, and also provides excellent customer service and competitive rates. Finding a mortgage lender is one of the biggest financial decisions you’ll make.
Luckily, there are plenty of viable options for borrowers. There are online lenders, credit unions, direct lenders, and mortgage brokers with a vast array of loan programs to choose from, to name just a few. The trick is narrowing down a crowded field to find a mortgage lender you trust that offers the loan program you want.
If you’re wondering how to find a good mortgage lender, here are five tips on how to find the best mortgage lender for you.
Tips for Shopping For a Mortgage Lender
1. Decide What’s Important
Throughout the process of obtaining a loan, you’ll have a lot of conversations with a bunch of different people. Before jumping in headfirst, take some time to understand what loan programs you may qualify for, the amount of downpayment you have to work with, and if you are a veteran, what lenders offer VA loans.
Once you narrow down the type of mortgage loan program you will be shopping for you can think about what other elements are important to you.
For one thing, there’s the type of communication you’ll want to have with the mortgage lender. Good mortgage lenders should be clear and upfront about the loan process and all associated costs. They should be willing to answer all your questions — and whether you’re a first-time homebuyer or not, you should feel comfortable asking any questions you may have.
You may even want to ask about how a mortgage lender will be communicating with you so you’ll know what to expect. For instance, you could ask them: “Do you communicate by phone, email, or text?” and “How quickly do you respond to questions?”
This is important because there are multiple steps that require back-and-forth correspondence and paperwork when applying for a mortgage. Maybe it’s critical for you to have someone who responds quickly. Ask your potential mortgage lender: “What are your turnaround times on things like pre-approval, appraisal, final approval and closing?” 💡 Quick Tip: Buying a home shouldn’t be aggravating. SoFi’s online mortgage application is quick and simple, with dedicated Mortgage Loan Officers to guide you through the process.
2. Be Prepared
Part of knowing how to find the best mortgage lender is to learn the vital details about the mortgage you want to take out. It’s hard to choose between lenders if you don’t truly know what you’re looking for, especially when there’s as much fine print as is typically involved in taking out a mortgage loan.
First, know the costs involved in taking out the type of mortgage you need in addition to the interest rate. There will likely be various fees associated with taking out a mortgage, such as origination and application fees, appraisal fees, and other third-party fees.
Fees can vary by lender, so have some idea of what is common and what to look out for. For example, if the rate quote is lower, are the fees higher as a result?
Next, it’s smart to have an idea of how much home you can afford and how much of a down payment is required under your preferred type of loan program. Be aware that the same loan program can have different down payment requirements at different lenders.
Knowing this type of information may help you narrow your search to the lenders who best fit your needs. Also, having your financial details in order will tell you how much you have to work with so you can get down to business with the lender of your choice.
How you have managed your credit and the resulting credit scores will come into play throughout the mortgage process. Your credit score may be one of the determining factors on what mortgage lenders you can choose from based on the loan programs you may be eligible to qualify for.
You may want to take some time to make sure your credit profile is in good enough shape for the loan program you want to qualify for before starting the process of searching for a mortgage lender.
3. Know Your Options
Finding the right mortgage lender means being able to navigate who you can work with in the big world of mortgage lending. Here are some of the major types of mortgage lenders out there. Many may offer similar types of loan programs, but possibly with different fees and qualifying criteria.
Mortgage bankers: Bankers work for a financial institution that underwrites loans, but does not take deposits. Mortgage bankers can sometimes also broker out loans.
Retail lenders: Similar to mortgage bankers and also known as direct lenders, retail lenders only originate mortgage products offered by their financial institution.
Mortgage brokers: Mortgage brokers don’t generally work with one institution, but instead act as an intermediary between the borrower and a wholesale lender. For the service of pairing you with a mortgage loan from one of the lending institutions they are approved to work with, the mortgage broker will generally take a commission that is a percentage of the loan amount. The loan is approved and funded by the wholesale lender.
Online lenders: A newer option for borrowers, online lenders like SoFi offer mortgage loans and focus on competitive rates and a more streamlined application.
Correspondent lenders: Typically, correspondent lenders are local mortgage loan companies that have the capital to fund a loan, but then turn around and sell the loan to a major financial institution.
Wholesale lenders: Unlike retail lenders, wholesale lenders don’t interact with borrowers and typically rely on brokers to sell their products.
Portfolio lenders: These lenders originate and fund loans from bank deposits and do not typically resell them after closing. They typically include community banks, credit unions, and savings and loan institutions.
Still, wondering how to find a reputable mortgage lender from these options? One thing you can do is read online reviews, like those on the Better Business Bureau’s website. You can also check to make sure that your lender is registered to originate loans with the Nationwide Multistate Licensing System Registry in your state.
4. Compare Lenders
It’s a good idea to shop around for mortgage rate quotes with a number of different lenders. Check with banks, online lenders, credit unions, and other local independent lenders to compare loan terms, interest rates, fees, and closing timelines. Request quotes in writing.
You can plug offers into a mortgage calculator to get an idea of the total interest costs. With a mortgage calculator, you can also compare different down payment options.
And remember, the interest rate isn’t the only cost to take into consideration. You’ll want to account for all of the fees associated with each rate and program offer.
Third-party fees should generally be the same no matter what lender you choose, so it’s the lenders’ loan terms, (qualifying) rate, and fees to compare apples to apples.
Checking on costs isn’t the only reason to get multiple quotes. It also allows you to experience a number of communication styles, and you’ll have a look into the process for each lender. 💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.
5. Get Pre-approved
Once you’ve narrowed it down to your chosen lender, apply for mortgage preapproval. During pre-approval, you’ll be asked to provide documentation on your financials, such as your paystubs, W2s, tax returns, bank account balances, and credit information.
This step is valuable when placing an offer on a home. A pre-approval letter shows that you have been vetted for the first (credit) portion of the loan process.
Once you apply with a lender you will receive a Loan Estimate laying out the down payment, fees, estimated monthly payment, and more.
This is the time to ask any lingering questions on the terms of the loan such as lending fees, rates, commissions, mortgage points, and any other fine print you may not understand.
Don’t be shy! This is a huge, important decision and you should feel welcome to ask every question twice if you need to.
At this stage, you may even want to consider negotiating your offers. If at all possible, use the competing offers as leverage to obtain better pricing. If the very thought of asking is intimidating to you, just remember that it never hurts to ask and the worst they can say is no. You might be surprised at what you can get by speaking up.
The Takeaway
Finding the right mortgage lender is one of the most important decisions you’ll make in the home-buying process. You’ll want to compare different lenders and choose one you feel comfortable working with and who will answer your questions and get back to you quickly.
The right mortgage lender can help you get the best mortgage, and the best rate, for your needs. Be sure to weigh the options and compare and contrast different loan estimates to find the right deal for you.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
The Credit Cards Competition Act of 2023 is pitting retailers against banks. Proponents say it’ll benefit merchants by lowering some of their operating costs, enabling them to reduce prices. Opponents say that not only are merchants likely to keep those savings to themselves, but credit card companies also may end up slashing the rewards they offer to make up for the revenue they’ll lose.
For now, this is all still speculation. Also up in the air is when this legislation might move forward in Congress. “Your guess is as good as mine,” says Stephanie Martz, chief administrative officer and general counsel of the National Retail Federation, an organization in favor of the Credit Card Competition Act.
Should the Credit Card Competition Act pass, consumers may notice some changes.
The Credit Card Competition Act, in a nutshell
To understand the Credit Card Competition Act, it helps to first understand what happens when you use a credit card to make a purchase. The card issuer, a bank or credit union, actually makes the payment for you, and you later repay the issuer when you pay your credit card bill.
Issuers don’t pay merchants directly, however. Payment networks like Visa, Mastercard, American Express and Discover work as the intermediary, sending purchase information back and forth between the merchant and the card issuer. Payment networks charge merchants interchange fees, also known as “swipe fees,” to do this, and those fees, in part, go toward funding the rewards that your credit card earns.
And here’s where much of the conflict lies. Under the current system, if a merchant accepts credit cards, it is “locked in” to whatever payment network that credit card runs on (the payment network logo that is displayed on the card) — and thus the merchant must pay whatever fee that network charges.
Among payment networks, Visa and Mastercard are the biggest players by far. The Credit Card Competition Act is a bipartisan bill that, according to its backers, is intended to break up what they view as a Visa-Mastercard duopoly. It would require large banks to allow more choice in terms of what payment network can be used for processing transactions that involve their credit cards. So if, for example, a shopper used a Visa card to make a purchase, the merchant could choose Visa as the payment network to process the transaction, or it could opt for another (and possibly less expensive) network.
Supporters of the measure hope that adding this element of competition would bring down interchange fee rates, saving merchants money and allowing those merchants to, in theory, pass along those savings to their customers.
But not everyone agrees that the bill would be a win for consumers.
How it might affect you
If the Credit Card Competition Act passes, there will be no change in how you use your credit cards to make purchases in stores or online. However, experts speculate that consumers could be affected in other ways.
Merchants may pass interchange savings along to shoppers — or not
Supporters of the Credit Card Competition Act cite lower operating costs for retailers as a main benefit, especially small businesses like your neighborhood corner store.
“Swipe fees are the second-highest operating cost, on average, for these businesses. Only labor is a higher cost,” says Doug Kantor, general counsel of the National Association of Convenience Stores. “A big piece of that is that the fees automatically rise with inflation. As we see inflation in the economy, merchants’ costs go up. Convenience store owners are left chasing their tails to try to maintain some profitability with these rapidly rising fees.”
Supporters say lower swipe fees for retailers could get passed down to consumers in the form of reduced, or at least stable, prices. They say consumers could also benefit if retailers opt to reinvest in themselves by hiring more employees, expanding their product offerings and opening additional store locations. Prices may not go down in those cases, but the customer experience could improve.
But the Credit Card Competition Act doesn’t require merchants to pass along the savings, so opponents aren’t convinced it will happen at a large scale. “I frankly sit on the devil’s advocate side, and I don’t see that happening,” says Matt Garfield, managing director within the retail and consumer products practice at FTI Consulting, a business advisory firm.
Garfield anticipates that small merchants will use the savings from lower swipe fees to keep prices stable, increase their cash cushion or put toward business improvements.
Credit card rewards could look different
If you’re a committed credit card rewards optimizer sitting on a pile of points and miles, the possibility that the Credit Cards Competition Act would pass is likely making you sweat. A major concern is that with reduced income from swipe fees, credit card issuers will cut back on their rewards programs and partnerships with airline loyalty programs.
This could result in consumers carrying fewer credit cards, since card offers might be less appealing, and taking fewer leisure trips, since their spending may not earn as many miles, Garfield says. “Credit cards will have to continue to think about how they drive loyalty among their customer base.”
If the Credit Cards Competition Act were to pass, an increase in other non-points-centric perks — like airport lounge access and easier paths to status with airlines — could be one way for credit card issuers to continue to entice consumers, according to Garfield.
Plus, the process of accommodating additional payment networks is more complex, compliance-wise, which also comes at a cost for banks, according to Brock Kannan, an adjunct professor at Wake Forest University School of Law who teaches banking law and regulation. To offset such costs, credit card issuers might have to increase other fees or alter their rewards programs in some way, Kannan says.
Credit access and security are also concerns
The loss in interchange revenue could make banks and credit unions more risk-averse in their lending practices, says Jason Stverak, deputy chief advocacy officer for the Credit Union National Association. “Primarily, our major concern for credit unions is the loss of access to credit for many individuals in this country.”
Opponents also express concerns about security risks to consumers posed by adding additional payment network options. The Credit Card Competition Act does instruct the Federal Reserve to identify card networks that are a national security risk or are operated by foreign state entities. Those networks will not be available options.
In terms of credit access, as a consumer you don’t have much sway when it comes to banks’ risk management decisions. But you can take steps to establish credit or boost your eligibility for credit cards or other loans, such as using secured credit cards or becoming an authorized user on someone else’s account.
When it comes to security, you can also reduce your risk of credit card fraud by routinely checking for suspicious charges on your credit card statements and setting up text alerts that will notify you when a purchase is made on your card. If you spot unusual activity, report it to your credit card issuer immediately.
The average American net worth varies due to many factors, with some people making far more than others. If you’re behind the national average, it may seem difficult to catch up, but whether you have bad credit or a lot of debt, you can still begin building your net worth by learning how to generate passive income.
Passive income is a great way to generate more income, pay down your debt, and start saving and investing for your future. Here you’ll learn what passive income is, as well as different ways to make passive income online and offline. With 25 passive income ideas, there is something for everyone.
25 Passive Income Ideas:
Write an E-Book
Start a YouTube Channel
Try Affiliate Marketing
Create a Blog
Sell Stock Photos and Videos
Create an Online Course
Make Sponsored Content
Invest in Dividend Stocks
Invest in REITs
Invest in Index Funds and ETFs
Try Peer-to-Peer Lending
Stake Cryptocurrency
Utilize High-Yield Savings Accounts
Buy Government Bonds
Invest in Art
Buy Property to Rent
Rent Out a Room in Your Home
Buy Domain Names
License Your Music
Design Custom Products
Rent Out Your Vehicle
Use Your Vehicle as Ad Space
Create an App
Flip Unique Items
Rent Out Your Parking Space
What Is Passive Income?
Passive income is a type of income that comes from sources other than your regular employment, and involves a more hands-off approach. Passive income isn’t a “get rich quick” scheme, though some companies make big claims about generating passive income without any work. Passive income does take work to set up, but the goal is that you can make money without managing it on a day-to-day basis.
You’ll generally do most of the work by setting up your source of passive income. While it may require some upkeep every now and then, like updating a product or maintaining a rental property, you’ll earn the majority of your income while pursuing other endeavors.
Like other sources of additional income, passive income is taxable, but when done correctly, you can make enough passive income to surpass your tax bill.
1. Write an E-Book
Whether you’re a writer or not, an e-book can be a fantastic way to generate passive income. We no longer live in a world where publishers are the gatekeepers of books, so you can self-publish a book that can generate passive income. Various websites let you self-publish books, like Amazon’s Kindle Direct Publishing, Apple Books, and Barnes & Noble. Some of these sites also offer print-on-demand services for customers who want physical copies.
You can write a nonfiction book if you’re knowledgeable about a certain subject, or you can write fiction if you have an interesting story idea. Although this can generate passive income, self-publishing can require a bit of an investment. You’ll need to pay for an editor and book cover designer, and you may also want to pay for advertisements. But if you can do the cover art and marketing on your own, you may be able to save some money.
2. Start a YouTube Channel
There are many ways to make money using social media, but YouTube is one of the best ways to make passive income. YouTube pays content creators to run ads on their videos. In order to qualify for the YouTube Partner Program, you’ll need at least 500 subscribers, three new videos within the last 90 days, and 3,000 watch hours within the last year. Previously, you needed 1,000 subscribers and 4,000 watch hours, but the policy was updated in June 2023 with lower requirements.
Like other sources of passive income, making money from YouTube will require an up-front investment of time and money. You need a stable internet connection, camera, microphone, computer, and editing software. You also need to make consistent videos to qualify for the partner program. You can eventually generate passive income by making evergreen videos, because people will watch old videos that bring in revenue—and the more videos you have on your channel, the more money you can make.
3. Try Affiliate Marketing
Affiliate marketing is when you share a link to a product or service, and the company gives you a percentage of any sales made through that link. You can share these links on your social media pages, blog, newsletter, or anywhere else that allows you to post a link. Affiliate marketing is one of the best online passive income opportunities, and you can combine it with any other online method we mention in this article.
One of the most popular affiliate link programs is Amazon Associates. Let’s say you have a YouTube channel where you review electronics, and you make a video reviewing a new TV or laptop. If you link to that product on Amazon with your affiliate link, you’ll receive a percentage of the sale each time someone uses your link.
This isn’t only limited to Amazon, either. Many companies offer affiliate links, so it can be advantageous to reach out to companies for products and services you use regularly to see if they have an affiliate program.
4. Create a Blog
There are a variety of ways to make money from writing a blog. Like YouTube, old blog posts can generate passive income even if people read the post months or years after you wrote it. If you create your own website to host your blog, you can integrate Google Ads and use affiliate links to make money online.
Platforms like Substack combine blogs and newsletters, so every time you write a new post, subscribers receive an email. You can have paid subscriptions on Substack, so users pay a monthly fee to read your posts, and you can have free posts that go out to non-paying subscribers as well.
5. Sell Stock Photos and Videos
If you’re a photographer or videographer, you can earn money for your photos and videos. There are many different websites that buy stock photos and videos, like Shutterstock, iStock, and Getty Images. One thing to consider is that the website gets exclusive rights to your images or videos, but on some sites you can make between 15% and 45% in royalties.
6. Create an Online Course
Many people have expertise in a certain area, and utilizing your knowledge and skills to create an online course is a great way to make passive income online. For example, you can create a course for how to knit, how to take amazing photos, or how to program an app. Websites like Kajabi and Teachable allow you to host and sell your courses.
You may need to invest some time and possibly money in marketing your course to ensure you find the right audience. Some course-hosting platforms like Skillshare also categorize courses by topic for better discoverability.
If you start gaining a following on social media platforms or through a blog, you may get the opportunity to do sponsored content. Companies want to ensure they target the right audience, so if you have followers who may buy their product or service, they’re more likely to sponsor a piece of content. This typically means you discuss their product in a video or write about it in a caption.
In order to generate passive income from a sponsored opportunity, the company will give you an affiliate link. This allows you to make money up front for the sponsored content as well as passive income from anyone who uses your link to buy the product or service.
This route for passive income may take some time because companies typically want people to have a decent following before sponsoring content.
8. Invest in Dividend Stocks
Stocks can be a great way to make money while also investing in your future. When you buy a stock, you buy a small portion of a company. If the stock price rises and you sell it at a higher price, you make a profit, but the stock can also drop in price and lose you money. Some, but not all, stocks offer dividends, which pay investors a dividend per share if the company has a profitable quarter.
When the stock pays out dividends, you can receive the payment directly from your brokerage or reinvest the dividends by buying more of the stock. Like other investments, this can compound and turn into a lot of money over time if the company continues to profit. As you invest in dividend stocks, keep in mind the companies can raise or lower the dividend percentage at any time.
Use MarketBeat’s dividend calculator to look up specific stocks and estimate dividend returns.
9. Invest in REITs
Real estate investment trusts (REITs) are another investment opportunity. Rather than investing directly in a property, you can invest in a REIT, which is a company that owns and manages real estate.
Similar to other investments, there is risk that comes along with investing in REITs. For example, there’s a possibility your REIT investments will lose money if there’s a drop in the housing market.
10. Invest in Index Funds and ETFs
Index funds and exchange-traded funds (ETFs) are some of the safest investments because they offer diversification. Rather than investing in one company, index funds and ETFs allow you to invest in multiple companies simultaneously.
Legendary investor and founder of Vanguard John Bogle was a major advocate for index fund investing. More specifically, he advised people to invest in the S&P 500, an index of the 500 largest companies in the United States. ETFs are slightly different because there are higher fees, but they allow you to invest in a group of stocks for a specific industry. For example, ARKK is an ETF that holds shares for companies that work on innovative technology.
There is still a risk when investing in index funds and ETFs, but they are often lower risk than other forms of stock investing.
11. Try Peer-to-Peer Lending
Another way to make passive income is to become your own type of “bank” by doing peer-to-peer lending, sometimes called P2P lending. Banks make money on loans by charging interest to customers, and P2P lending allows you to do the same thing. Websites like Prosper and Funding Circle allow everyday people to lend and borrow money with various interest rates.
12. Stake Cryptocurrency
Cryptocurrency investing is a highly volatile form of investing, making it especially high risk. Some cryptocurrency platforms allow you to “stake” your crypto, which is when you allow the platform to hold your crypto and lend it to other people. Similar to P2P lending, you make money off the interest.
Cryptocurrency lending and trading is also high risk because there is little to no regulation. Crypto platforms like Voyager have been known to offer extremely high returns and then go bankrupt, preventing them from paying back their users. In extreme cases, there are stories of fraudulent activity from crypto platforms. But if you have a high risk tolerance, this form of investing can be incredibly lucrative.
13. Utilize High-Yield Savings Accounts
A safer way to make passive income is to open up a high-yield savings account, which allows you to make money simply by holding it in your account. Banks use customer funds to lend out money, but unlike crypto staking, bank funds are backed by the U.S. government via the FDIC. This means that if, for some reason the bank doesn’t have the money when you want your funds, the government would provide the bank with the money to pay you up to $250,000.
Many banks and financial institutions offer high-yield savings accounts, with some offering an annual percentage yield (APY) of over 4%. So if you opened an account with a 4.5% APY and deposited $1,000, you would have $1,045 after a year.
People maximize their passive income by not touching this money because it compounds each year. So using that same example, in the second year, you would then earn 4.5% of the $1,045 rather than the original $1,000. And if you add to the savings account each month, you can make quite a bit of money over time.
14. Buy Government Bonds
Perhaps the safest way to earn passive income from investing is to buy government bonds. A government bond is basically a loan to the federal government that pays you back the original amount with interest over a certain period. The reason government bonds are so safe is because the government backs them. When buying a stock, it’s possible to lose your money if the company goes out of business. Bonds are safer because as long as the government exists, you’ll make your money back.
Although government bonds are very low risk, they also offer low returns. Depending on various factors, government bonds may offer a 3–5% return over two to 30 years. To put that into perspective, S&P 500 index fund investing offers an average return rate of over 7.5%[1] .
15. Invest in Art
Similar to stocks, you can also invest in artwork. One way to do this is to buy works of art that you believe will increase in value later. If you’re knowledgeable about art and can find pieces selling for below their value that you can sell later for a profit, you can make a bit of money. Websites like Masterworks allow you to buy shares of artwork with other investors so you take on less risk.
16. Buy Property to Rent
Many people generate passive income by purchasing properties to rent. If you can afford the initial investment of buying a single-family home or condo, you can then rent them out to tenants for a profit. For example, if you buy a house and your mortgage is only $1,000, you can make a profit by charging any amount over your mortgage cost.
In order to take advantage of the passive income aspect of renting, you may benefit from hiring an individual or company to manage the property. Property managers collect the monthly rent and take care of maintenance issues for a fee. Should you decide to invest in rental properties, it’s helpful to factor in the cost of potential home repairs before, during, and after tenants live there.
17. Rent Out a Room in Your Home
If you don’t have the money for a down payment or don’t want to take on the risk of purchasing a rental home, you can always make some extra income by renting out a room. If you have a spare room in your home, you can rent it out for a monthly fee. This is a great option for families whose children recently moved out.
You can use websites like Airbnb and VRBO to connect you with renters. Although many people use Airbnb for short-term rentals during vacations, you can also offer long-term rentals through the website. These sites also let you vet renters before they move in, so you have control over who rents the room.
18. Buy Domain Names
Buying domain names is a sort of investing, so it does come with some risk. People and businesses buy domain names to host their websites, so you can purchase a variety of inexpensive domain names in hopes of people buying them from you later for more. You can typically buy domain names for less than $10 through websites like GoDaddy, but if they don’t sell, you’ll need to pay the annual cost to keep the name.
While this may be a risky investment, people have made a lot of money flipping domain names. It was a big money-maker during the “dot com boom” in the 1990s, Help.com sold for $3 million and NFTs.com sold for $15 million in 2023. Many domains don’t sell for millions, but you may still be able to make a decent profit off domain names in high demand.
19. License Your Music
If you’re a musician, you can license your music in a similar way to selling stock photos and videos. Some websites like Music Vine pay musicians 30% for nonexclusive deals or more for an exclusive license. There are also websites like Epidemic Sound that market to YouTubers and filmmakers by offering a subscription service for royalty-free music.
20. Design Custom Products
For those who are artistically inclined, you can make money creating designs and selling them on websites that sell custom products. Websites like Redbubble, Teespring, and Society6 offer print-on-demand services for your artwork. These websites sell a wide range of products like T-shirts, coffee mugs, phone cases, and more. You get a percentage of the sale every time a customer goes to the website and chooses your design for any of these products
If you have old artwork you created in the past or simply feel like creating in your spare time, you can generate passive income as long as your art is hosted on these types of websites.
21. Rent Out Your Vehicle
Services like Uber and Lyft are popular side hustles, but you can make passive income by renting out your vehicle instead. When people are traveling or have their car in the repair shop, they often need a vehicle to get around. Rather than going to a rental car company, they can rent a vehicle through other websites like Turo or Getaround.
22. Use Your Vehicle as Ad Space
In addition to renting out your vehicle, you can make passive income by using your vehicle as ad space.
Websites like Wrapify connect businesses and drivers, and depending on how much of your car you’re willing to cover with ads, Wrapify will pay you between $181 and $452 per month. There are also sites like FreeCarMedia.com that pay you for wrapping your vehicle or simply advertising on your rear window.
23. Create an App
If you’re a programmer who can create an app, this may be the best way for you to make passive income. Whether it’s a fun game or an app that provides value and convenience, use your creativity and skills to generate income. Apple and Google allow developers to submit their apps, giving you a percentage of the sale each time someone buys the app.
24. Flip Unique Items
One of the oldest ways to generate passive income is to buy unique items, hold them, and sell them at a later date for a profit. If you’re knowledgeable about a certain type of item or are willing to learn, you can make a decent amount of money by buying and holding items.
This is ideal for people who like shopping at thrift stores or going to garage sales. You may find antique toys, memorabilia, sports trading cards, comic books, or other items for a low price that are either worth a lot of money now or will be in the future.
To sell the items or see how much items are selling for, you can use websites like eBay, OfferUp, Craigslist, or Facebook Marketplace.
25. Rent Out Your Parking Space
Some people are willing to pay for a good parking spot. If you have a space you’re not using or don’t mind giving up, you can make money renting it out—especially if you live in an urban area. Websites like SpotHero allow you to list your space.
What’s the Best Source of Passive Income?
The best source of passive income is unique to each individual. There are many options on this list, and some allow you to capitalize on different skill sets. For example, if you have expertise in certain subjects, the best sources of passive income may be online courses and e-books. If you have knowledge about stocks or are willing to learn, investing may be the best option.
When deciding which passive income sources are right for you, it may be beneficial to weigh out the pros, cons, and risks of each one. Remember that many of these options require an initial investment of money and time to get started. Consider your own risk tolerance and financial situation before going all in on any of these methods.
Do You Need Money to Make Passive Income?
While you’ll need money to get started with many passive income ideas, this isn’t the case for every method. For example, if you own a vehicle or have an extra room in your home, you can start renting them out. If you have a computer and internet connection, you have even more options.
Many people who make passive income succeed because they are willing to learn and can invest time into researching these topics. There’s a wealth of information online where you can learn how to excel at specific passive income opportunities like writing an e-book, succeeding as a YouTuber, or using affiliate links.
The Benefits of Multiple Streams of Income
Depending on your specific situation, you may want more than one source of passive income. Whether you’re already in a healthy financial situation or are trying to build your personal wealth and credit score, more income streams means more financial freedom.
The primary benefit of passive income is that you can make money with minimal effort. This means once you get one source of passive income rolling, you can begin adding others so you have multiple income streams that don’t require too much time or attention.
How Passive Income Can Help Improve Your Credit Score
A poor credit score can lead to many challenges—like making it difficult to get approved for new lines of credit, loans, and rental applications—and cost you a lot of money in interest in the long run. Passive income can help you fix your credit by allowing you to pay off your debts. Lenders also look at your total income, so making additional income can help with approvals for new lines of credit, which can also help improve your score. It’s important to know the current state of your credit health. You can get a free credit report card on Credit.com which breaks down your credit score factors and assigns a letter grade for each area, or sign up for our ExtraCredit® subscription for additional credit tools.
Inside: Are you looking for ways to make money quickly and easily? This guide has you covered with tips on how to double your money in 24 hours.
Doubling your money is an aspiration many investors feasibly target, and it’s critical to your future financial stability.
This enticing objective involves transforming a small amount of money and doubling it for tomorrow. You need cash fast, so that is why you are reading this post.
You will quickly learn there are easy ways to double money in 24 hours and others that over time you can be skilled at and easily double your cash.
Given that 58% of borrowers struggle to meet basic monthly expenses and 70% of borrowers are using loan money for rent and other basic expenses. 1
You want to learn how to double your money before you actually need to, so by inevitably secure financial confidence for upcoming expenses.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
How can I double my money quickly?
Doubling your money in less than 24 hours isn’t straightforward, but it is possible if you’re willing to take high risks.
These are popular methods to double your money:
Engagement in day trading. It’s risky but one of the fastest ways to double your investment.
Try your hand at gambling. Remember, the house typically has the upper hand. This is not recommended as you are more likely to lose more money than you prefer.
Consider investing in digital real estate. This is similar to real-life property flipping.
Most importantly, avoid get-rich-quick schemes; they’re mostly scams. So, do your homework before diving in!
20 Easy Ways to Double Money in 24 Hours
As inflation rises and people are struggling with their budgets, the question of how to double money in just 24 hours often comes up.
While it may sound like a lofty goal, there exist strategies that can significantly boost your financial growth in a surprisingly short time.
However, keep in mind these are not risk-free endeavors, and they each require a good understanding and judicious implementation to yield profitable results.
1. Invest in Stocks
If you’re hunting for opportunities to double your money fast – investing in stocks could be your ticket, especially with the current volatility.
Although there’s a risk factor involved, it’s a time-tested strategy for impressive returns. Learn how fast you can make money in stocks.
Honestly, one of the best ways to improve your net worth is learning how to invest in the stock market. Yet, many people shy away from the idea.
By not investing in stocks, you are slowing your pace to financial freedom. So, why not learn how to invest in stocks for beginners?
The choice entirely depends on your risk appetite, investment horizon, and personal preferences. Start by evaluating your risk tolerance. Personally, I can tell you this is one of the ways I double money in 24 hours consistently.
Motley Fool
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They help millions of people attain financial freedom through their site, podcasts, and premium investing services.
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2. Options Trading
Options trading can double your cash in a mere 24 hours, thanks to its inherent rapid return benefits. However, with the potential for high returns, it also poses significant risks.
Options trading is an advanced strategy for buying stocks with an option contract. Thus, you get the right but not a duty to buy (call options) or sell (put options) a stock at a specific price.
It presents the possibility of doubling, tripling, or quadrupling your money.
This is an avenue to pursue if you want the potential for huge profits, but you must take this investing course to learn the proper way to trade options.
However, you run the high risk of losing the entire investment! So, this is risky for novice investors and you need a brokerage for this type of trading.
Trade & Travel
Learn to trade stocks with confidence.
Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
3. Flip Items for Arbitrage
Retail arbitrage, essentially the practice of buying and reselling goods, is a beneficial way of doubling one’s money in a short time. This can be particularly effective by taking advantage of clearance sales in mainstream stores like Walmart and Kohl’s, and then reselling the products on online marketplaces.
Notable items often flipped include apparel, books, electronics, and toys. You can check a full list of popular items to flip.
According to the Flea Market Flippers, you can use a variety of platforms to sell your flipped items.
4. Rent Out Your Property
Renting out unused property or space can be a lucrative form of passive income. This may include a spare room, or underutilized sections like a garage, with various platforms facilitating such financial transactions like Neighbor or VRBO.
Another example is it is financially beneficial to rent out items, like a lawn mower which costs $500 but brings in $15-20 for each rental. Thus, paying for itself in a short amount of time.
Despite the potential risks associated with property investments, including unpredictability in the real estate market and tenant issues, leveraging a good understanding of the local market can make it quite possible to double your investment over time.
5. Become A Side Hustles Expert
Becoming a side hustle expert requires a clear understanding of your goals and the willingness to trade your time for money. You can identify profitable opportunities which can range from ridesharing to teaching English as a second language (ESL) online.
Honestly, this is best to set up BEFORE you are desperate for cash.
Patience is key as nurturing a side hustle often takes time before it becomes an efficient income-generating endeavor.
To help you out, here are specific side hustles based on your stage of life:
6. Rent Out Your Skills
Renting out your skills is a smart quick-fix to double your money within 24 hours. It’s all about capitalizing on what you can do best and offering it to those who need it.
Start by identifying a skill or knowledge you’re proficient in. Are you a wizard in web design? A maven of SEO?
Select the right platform. Websites like Fiverr, Freelancer.com, and TaskRabbit are excellent for freelancers.
Promote your services. Reach out to your networks or use social media to boost your visibility.
This is a great way to earn $300 fast if you know what you are doing.
TaskRabbit
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7. Deliver with DoorDah or GrubHub
Double your income in a day by delivering with platforms like DoorDash or GrubHub. As a courier, you get paid for each delivery – so the more you do, the higher your earnings.
With a smartphone and transportation, you can start making extra cash immediately. Some top delivery options:
Working with DoorDash
Serving with GrubHub
Remember, it’s all about completing as many deliveries as possible. Every order increases your day’s earnings, potentially doubling them if you put in enough hours.
8. Invest in Cryptocurrencies
Invest in cryptocurrencies like Bitcoin, Ethereum, and Bitcoin Cash holds the potential to double your money in 24 hours due to their volatile nature.
To start:
Keep tabs on crypto trends through monitoring websites or apps.
Buy popular or promising cryptocurrency during their low-cost phase.
The trick to doubling your funds is selling at peak prices.
Remember, trends can change rapidly, so only invest what you can afford to lose. For newbies, it’s beneficial to seek advice from a financial advisor knowledgeable in the crypto market.
9. Take Surveys
Looking to double your money in a day? Consider taking paid surveys. However, you will have to take quite a few surveys to make a significant amount of cash.
To boost your earnings:
Seek high paying surveys – Survey Junkie could bring in up to $3 per survey.
Use free time efficiently – complete quick tasks on Swagbucks.
Refer friends – earn 10% of their earnings on Swagbucks.
Remember, more effort equals higher rewards!
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10. Lend Money on Peer-to-peer platforms
Lending money on Peer-to-Peer (P2P) platforms can be a profitable strategy, offering a unique method for individuals to loan and borrow money without traditional financial institution interference.
Users can sign up as lenders on recognized P2P platforms like LendingClub, Prosper, and Upstart, and yield high-interest returns based on their borrower’s creditworthiness.
However, this process also poses risks such as potential defaults, making it important for the lenders to do their research and diversify their loans across multiple recipients.
11. Do Odd Jobs
Engaging in odd jobs is a practical approach to earning additional income. Whether it’s mowing neighbors’ lawns or offering handyman services, these simple tasks can often pay upward to $30 per hour.
Digital platforms, like TaskRabbit, even allow you to list your talents locally, extending your reach for potential earnings.
All in all, odd jobs provide an accessible door to financial gain without requiring a significant starting capital.
12. Selling High Demand Printables
Selling printables online is a viable way to generate income. It’s important to create a follower base or an email list to successfully promote and sell your products.
With strategic pricing and high-quality content, you could potentially double your initial investment in a short span of time.
Here are the digital products that sell on Etsy that are in high demand.
By creating high-demand printables, you can buy low, sell high, and double your money all within 24 hours!
13. Max Out you 401(k) Match
Maxing out your 401(k) match can double your money in no time. While this may not happen in 24 hours, it can happen the next time you get paid and greatly increase your retirement savings.
When you contribute to your 401(k) plan, your employer might match it by 50% or 100%. You will have to check your Human Resources department to see what your company offers.
Contribute the maximum amount your employer is willing to match. This is free money for you. For instance, if you’re making $100,000 and your employer’s match is up to 3.5% of your salary, put in at least $3,500.
Are you one of the 5 people making this costly mistake? 2
14. Sell Courses and Subscriptions
Selling courses and memberships online is a highly profitable low-risk venture that requires just a small initial investment of your time and money. Once the course is developed, it can continue to generate passive income every month.
Tools such as Podia or Teachable allow you to easily sell and manage your courses, while also offering additional benefits such as digital downloads, subscription plans, and an opportunity to begin selling directly to your followers.
15. Work for Employers
In case you haven’t heard, time is money. And you can trade your time for money at any point.
Working for employers often ensures a steady income which can be supplemented by various benefits.
One of the greatest advantages is the employer match on a 401(k) account, which allows employees to double their contributions effortlessly. This means that if an employee contributes 5 percent of their salary to the retirement account, the employer adds another 5 percent.
Expert Tip: Continually upgrade your skill set to increase your value to employers. More demanding or specialized tasks often command higher pay, propelling you towards your double-money goal quicker.
16. Sell Your Goods
Selling goods online provides a dynamic platform for entrepreneurs, allowing them to reach a wider audience. This involves identifying high-demand products, purchasing from a reliable supplier, and selling them on popular e-commerce platforms like Amazon, eBay, and Etsy.
Get involved in flea market flipping. Hunt for undervalued items at yard sales or flea markets and resell online. Facebook Marketplace could be a goldmine.
Unload used or vintage items. These platforms can help you earn huge profits, especially from expensive items. Don’t let seller fees deter you; big profits are still achievable.
Books are an easy sell. Buy used ones from local or online stores and sell them in different areas or on different platforms. Diversifying the categories you offer can potentially boost your profits.
Pricing is set considering the purchase cost, overheads, and the competitive market.
17. Invest in Collectibles
Investing in collectibles presents a thrilling opportunity to generate significant profit in a short span. The key is identifying profitable niches, such as vintage comic books, rare coins, or baseball cards.
The rarity and condition of an item directly influence the price it can command.
The strategy involves buying low, often from garage sales or online platforms like eBay or Etsy, and selling high. However, one must perform diligent research and be aware of market trends, as failure to do so can lead to risks.
18. Get Rid of Your Most Valuable Items
Selling your own possessions is an effective way to declutter your home while also generating a potential cash flow.
This is one way to accumulate over $1,000 in cash earnings.
This may not be what you want to do, but your possessions are worth money and it may be necessary.
19. Save Money and Increase It
You’ve heard it said: a penny saved is a penny earned. This principle isn’t just about saving but also growing your money as an effective way to double your income.
Here’s how:
First, begin with saving. The more you can put away, the better. Remember, your coffee can strategy may not earn interest, so consider a deposit into a savings account.
Next, let’s talk about compound interest. Suppose you invest $1000 at a 5% interest rate. After a year, your money grows to $1050. The next year, you earn interest on this increased amount. Over time, the effect snowballs, significantly augmenting your investment.
Lastly, protection against inflation is key. Always aim for an interest rate higher than the rate of inflation. This means, in real terms, your money is consistently growing.
Done right, these steps can effectively increase your savings rapidly.
Raisin
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20. Game or Bet on A Sport
While it’s often overlooked, betting on sports or games could be a fast track to doubling your money in less than a day. This risky Vegas plan may be worth the potentially rewarding pursuit.
Beware – while some have been successful, this method is heavily debated due to the significant risk factors. As such you may be better off becoming a referee for youth sports, which is a popular side hustle for men.
Remember, it’s all fun and games until the cash is lost – don’t stake what you can’t afford to lose.
FAQ
Doubling $1,000 quickly calls for some calculated risks and smart choices.
One way is investing in stocks, potentially high-return yet high-risk assets. Another route could be starting a side hustle, like an online course or freelance work, where initial investment is low but returns could be impressive.
This is a hard ask given many people this month. However, doubling $3000 fast can be achieved through smart investments and income diversification.
Using online platforms and flipping high-demand items may yield quick profits. Additionally, utilizing skills for a freelance portfolio or selling an online course can quickly boost initial capital.
Doubling your $5000 swiftly may seem like a daunting task, but with strategic planning, connection establishment, and careful investments, it’s more achievable than you might think.
Here’s how you can try it:
Start by investing in stocks. Rapid-growth stocks or volatile currency pairs can double your money. Invest wisely based on market analyses.
Try real estate flipping. Buy undervalued properties, renovate, then sell.
Entrepreneurship is another avenue. Turn your skills or ideas into a profitable business.
Peer-to-peer lending platforms yield high return rates with the right borrower.
Playing the lottery or gambling could work, but highly risky.
Remember, to double up money quickly, ensure you are knowledgeable in your chosen method and anticipate potential downsides. Do comprehensive research first.
Is Doubling Money in 24 Hours Possible?
Yes, you, dear reader, can indeed double your money in 24 hours! It won’t be a cakewalk though, requiring specific skills, solid strategies, and of course a pinch – maybe a handful – of luck.
You could tap into high-growth potential fields like day trading, selling high-demand goods online, or capitalizing on your skills as a content creator. Remember, this quick win has its fair share of risks too.
Now, make sure to do proper due diligence and check the integrity of whatever way you choose to make more or dive into the gig economy.
Now, learn how to double 10k quickly.
Source
Federal Reserve Bank of St. Louis. “Fast Cash and Payday Loans.” https://research.stlouisfed.org/publications/page1-econ/2019/04/10/fast-cash-and-payday-loans#:~:text=However%2C%207%20of%2010%20borrowers,difficulty%20meeting%20basic%20monthly%20expenses. Accessed November 7, 2023.
Motley Fool. “1 in 5 Americans Are Making a Terrible 401(k) Mistake.” https://www.fool.com/investing/2018/02/09/1-in-5-americans-are-making-a-terrible-401k-mistak.aspx. Accessed November 7, 2023.
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Lower snaps up Universal Lending’s retail and wholesale division | Mortgage Professional Specialty Wholesale expansion plans, adding over 60 loan officers and establishing a strong presence in both the Colorado and Montana markets.” According to a media release, the wholesale division will operate under Lower’s PowerTPO brand. Universal Lending president TJ Kennedy will head both … [Read more…]
A conventional home mortgage loan – one backed by private lenders instead of a government agency – is the most common type of financing used by home buyers. Conventional home loans offer several advantages and disadvantages that are important to understand.
Take the time to learn why many home sellers prefer buyers with conventional mortgage loans, the eligibility requirements, and what to consider if you have a different kind of mortgage loan or face rejection obtaining conventional financing.
Check your home buying options. Start here
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What is a conventional home loan and how does it work?
A conventional mortgage loan is a type of home loan that is guaranteed by private lenders such as banks, mortgage companies, and credit unions. It is not backed by any government agency like the Federal Housing Administration (FHA), Department of Veterans Affairs (VA), or US Department of Agriculture (USDA), which guarantee non-conventional financing like FHA loans, VA loans, and USDA loans, respectively.
Check your home buying options. Start here
Conventional loans follow guidelines set by Fannie Mae and Freddie Mac, federally-backed entities formed by the US Congress. These entities play a pivotal role in bolstering stability, liquidity (consistent access to funds on reasonable terms), and affordability to the mortgage market and the numerous lenders that offer home financing.
Freddie Mac and Fannie Mae facilitate this by purchasing mortgage loans from lenders. They either retain these loans in their portfolios or package the mortgages into mortgage-backed securities that are up for sale.
As with any type of home loan, lenders of conventional mortgage loans provide funds to qualified borrowers to purchase a property. In exchange, borrowers agree to repay the funds with a fixed-rate or adjustable-rate interest attached over a set term, such as 30 or 15 years.
“Because conventional loans are not supported by the government, lenders who offer them want to make sure you can bear the financial cost of paying back your loan, in addition to your other debts. So they impose certain qualification restrictions for conventional mortgage loans,” says Rinal Patel, a real estate investor and founder of Webuyphillyhome.com.
What are the pros and cons of a conventional mortgage loan?
Understanding these pros and cons of conventional loans will empower you to make informed decisions when securing home financing. So, let’s explore the merits and limitations of conventional mortgages to help you navigate this significant aspect of home buying.
Get preapproved for a mortgage. Start here
Conventional loans pros:
A higher loan limit than many government-backed mortgages
A remarkable degree of flexibility in their terms. Repayment periods can range from 10, 15, 20, 25, and 30 years. Some lenders even allow you to pick a customized loan term, such as 8 years.
Conventional loans are available with either fixed or adjustable interest rates. Note that adjustable rates remain fixed, but only for a period of time early in the term — typically the first 3, 5, or 7 years. During this initial fixed-rate phase, homeowners benefit from lower interest rates, potentially saving thousands.
Unlike government loans that can charge an upfront insurance fee ranging from 1% to 4% of your loan amount, conventional loans do not impose an initial mortgage insurance fee, regardless of whether or not you make a down payment of less than 20%. However, If you put down less than 20%, you will need to pay monthly mortgage insurance premiums.
A wider variety of lenders offer conventional loans, making it relatively easier to find lenders offering these loans compared to government-backed alternatives.
Virtually any borrower and home location is eligible for a conventional loan (if you meet the lender’s requirements). On the other hand, to get a VA loan, you must be an active military member, veteran, or surviving spouse, and USDA loans limit the locations where you can purchase a home.
Sellers are typically more willing to accept an offer from a buyer preapproved for a conventional loan.
Conventional loans cons:
You may pay a higher fixed interest rate, especially if you have a lower credit score.
Lenders typically uphold stricter eligibility criteria and may require a higher minimum credit score than those offering government loans.
While some conventional loans can be secured with as little as 3% down, some lenders may require you to make a down payment of at least 20%. Government-backed loans, on the other hand, allow you to secure them with as little as zero down to 3.5%.
You’ll typically need to pay monthly mortgage insurance premiums with a conventional loan if you put down less than 20%. It’s important to note that there are ways to work around this and opt for single premium or split premium MI. In these cases, the MI can be paid for upfront by the buyer, seller or lender. It can even be financed into the loan amount in some cases. USDA and VA loans do not have a monthly mortgage insurance requirement.
Closing costs could be higher for a conventional loan than a government-backed loan.
Who qualifies for a conventional loan?
To be eligible for a conventional mortgage loan, you have to meet particular criteria that demonstrate your financial readiness.
“While credit score requirements may vary, a minimum credit score of around 620 is generally preferred. Aiming for a higher score can bring you better interest rates and terms,” explains Alex Shekhtman, CEO and founder of LBC Mortgage.
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Conventional loan lenders also look closely at your debt-to-income ratio (DTI), which measures how much of your income goes toward debt payments. You may not qualify for a conventional loan if your DTI is over 50%.
Additionally, conventional loan requirements vary across lenders. You may have the option to put down as little as 3%, but if you make a down payment of less than 20%, you will need to pay for private mortgage insurance
“Loan-to-value ratio (LTV) is a factor that lenders evaluate. A lower LTV ratio indicates less risk and showcases your financial stability – strengthening your chances of securing a conventional loan,” adds Shekhtman, who notes that the max LTV allowed for a conventional loan is 97% (which means you will need to put down at least 3%).
Why home sellers prefer conventional loans
There are several reasons why home sellers typically prefer to work with buyers who have conventional mortgage loan financing lined up over other types of financing.
“By offering greater flexibility in fewer restrictions, conventional loans can make the home sale process smoother and more efficient while also providing a sense of financial stability and responsibility on the part of the buyer,” says Adie Kriegstein, a licensed real estate salesperson for Compass Real Estate in New York City.
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Reason #2? “Conventional loans often require higher down payments. A seller can view this as a sign of financial responsibility, which can give them greater confidence in the sale,” Kriegstein continues.
Consider that FHA, VA, and USDA loans may come with more stringent requirements and restrictions, which could make the seller concerned that the deal may not close as expected.
“For example, FHA loans require mortgage insurance premiums, which can increase the overall cost alone,” says Kriegstein. “VA loans may have specific rules around the condition of the property, which can limit the pool of potential buyers or it and USDA loans may only be available for properties in certain rural areas.”
Erica Davis, brand manager for Guild Mortgage in Myrtle Beach, South Carolina, agrees that conventional loans help put sellers at ease.
“When sellers put their home up for sale, they want to ensure that the deal will close quickly and without any unnecessary stress. With a conventional mortgage loan, the process is often more predictable. And conventional loans often come with more flexibility in terms of negotiating prices and contingencies,” says Davis.
Tips for non-conventional loan borrowers
If you can’t qualify for a conventional loan, you can always pursue government financing in the form of an FHA loan, VA loan, or USDA loan, provided you meet the specific eligibility criteria for each loan program.
Truth is, buyers with non-conventional loans can still find sellers who are willing to complete a home transaction with them – even though it may take longer, according to Patel.
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“If you have non-conventional financing, you can improve your chances of convincing a seller to work with you if you make a more serious offer on the house, one that shows that you are ready and intently interested in purchasing the property,” she suggests.
Additionally, “you should work to improve your credit score and save for a larger down payment if possible,” advises Kriegstein.
To improve your odds of getting a seller to accept your offer when a non-conventional loan is involved, “consult closely with a mortgage professional who can help you navigate the financing process,” Shekhtman recommends.
The bottom line
Assuming you qualify for a conventional mortgage loan, you’ll stand a better chance of choosing from a wider variety of homes for sale in various locations and convincing a seller to accept your offer.
But don’t despair if you’re not immediately eligible for conventional financing. Partner with a trusted lending expert who can guide you through the process and recommend alternative loan options tailored to your needs.
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During highly challenging times for mortgage holders as the Reserve Bank of Australia (RBA) hit borrowers with a succession of interest rate rises, the mortgage broking industry continued to deliver strong results.
The Mortgage and Finance Association of Australia’s latest Industry Intelligence Service report found in the 12 months to March 2023, mortgage brokers settled a record $358.68 billion in home loans.
The MFAA said brokers have maintained a strong market share, writing 69.6 per cent of all residential home loans in the March 2023 quarter. Conversely, market share of the major banks declined in the March 2023 quarter to 45.8 per cent following a 2.7 percentage point increase in the December 2022 quarter to 49.9 per cent.
MFAA CEO Anja Pannek said the 16th edition of the report focused on the six-month period from October 1 2022 to March 31 2023, drawing on data supplied by the industry’s leading aggregator brands to provide mortgage broker, industry performance and demographic data.
“The period covered in the report coincided with a period of intense refinancing as fixed rate mortgages reverted to variable, clients encountered serviceability constraints and a moderation of property prices in some markets,” Pannek said.
“This confluence of factors can be seen in this industry research, however, the outstanding service mortgage brokers deliver to their clients has remained a constant throughout this time.”
While another strong result for brokers, the report noted in comparison to the October 2021 – March 2022 period, the total value of loans settled by mortgage brokers declined 8.63 per cent.
However, Pannek said the broker channel still outperformed the overall home loan lending market.
“Whilst the value of home loans settled by brokers declined 8.63 per cent for the period, the lending market as a whole – broker and proprietary channels – declined 10.89 per cent over the same period. This highlights that the broker market is meeting more needs of more consumers in a challenging economic environment,” she said.
Bell Partners is ready to assist if you want a more competitive interest rate with your current lender or are looking to refinance to a different product elsewhere in the market.
Banks have tightened lending standards for most categories of residential real estate (RRE) loans and home equity lines of credit (HELOC) over the third quarter of 2023. The tightening came amid elevated interest rates and uncertainty in economic conditions.
A survey taken by the Federal Reserve showed that a 20%-plus share of banks reported having tightened standards on non-qualified-mortgage (non-QM) jumbo residential loans (23.9%), QM jumbo loans (26%), non-QM non-jumbo (20.4%) and HELOCs (21.8%), respectively, according to the Federal Reserve’s October 2023 senior loan officer opinion survey on bank lending practices.
Government residential mortgage was an exception, where standards remained basically unchanged.
Only 4.2% of banks reported to have tightened standards on government residential mortgages, the report showed.
When banks become less willing to offer credit, it can have the same effect as the central bank raising rates. Households and businesses find it more difficult and costly to borrow, which tends to limit demand for goods and services.
“Banks most frequently cited a less favorable or more uncertain economic outlook; reduced tolerance for risk; deterioration in the credit quality of loans and collateral values; and concerns about funding costs as important reasons for tightening lending standards over the third quarter,” the report said.
Responses were received from 62 domestic banks and 19 U.S. branches and agencies of foreign banks. Respondent banks received the survey on Sept. 15, 2023, and responses were due by Oct. 5, 2023.
The survey, fielded quarterly by the central bank, asks loan officers about topics such as changes in lending terms as well as household demand for loans.
With mortgage rates having climbed past 8% before dropping back down in the 7%-range in the third quarter, demand weakened for all RRE loan categories.
A 40%-plus share of all surveyed banks said they saw weaker demand for all types of RRE loans.
The seven categories of residential home-purchase loans that banks are asked to consider are GSE eligible (42.9%), government (52.1%), QM non-jumbo non-GSE-eligible (57.1%), QM jumbo (56%), non-QM jumbo (63%), non-QM non-jumbo (61.4%), and subprime mortgage loans (71.9%).
While HELOCs have gained popularity as owners leveraged accumulated home equity, rising interest rates dampened the appeal.
The survey showed that 30.4% of banks reported weaker demand for HELOCs as interest rates remain at a 22-year high in a range of 5.25% and 5.5%.