Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
The United States Department of Veterans Affairs (or VA for short) doesn’t have set credit requirements for loans. Yet, “What is the minimum credit score for a VA loan?” remains a common question. This is because there are private lenders who also offer VA loans—and who typically have specific credit requirements for borrowers.
Most private lenders are willing to work with applicants who have at least a 500 credit score. The higher your score, the more likely you are to obtain a loan. Here, we’ll discuss the nuances of credit scores and the military‘s requirements for VA loans. We’ll also share how Lexington Law Firm can assist you on your credit-building journey.
Key takeaways:
The VA doesn’t require a minimum credit score for loans. Private lenders, however, will use your credit score to gauge your eligibility and set your interest rate. Applicants with higher credit scores tend to receive better rates, and private lenders tend to look favorably on applicants with good credit scores (670 – 739, according to the FICO® model).
That said, it’s still possible to get a loan with bad credit. Applicants with low credit scores can make a higher down payment if they have the capital to do so. Applying with a cosigner is also another valid alternative; lenders will look at the creditworthiness of both signees when deciding whether or not to approve you.
VA loans have unique qualifiers besides credit scores that applicants will need to keep in mind. Since the Department of Veterans Affairs primarily works with service members who’ve already retired, many active-duty service members may not be eligible for VA loans.
Below, we’ll break down the eligibility criteria for VA loans by category.
We know the VA doesn’t have strict limits on credit, but they do require proof of income. Applicants will also have much better odds if their debt-to-income ratio is below the 44 percent threshold.
So long as an applicant wasn’t dishonorably discharged from service, they are eligible for a loan. Unless a service member was deemed insane when they were charged, title 38 of the United States Code (38 U.S.C. § 5303) states that individuals are susceptible to a statutory bar to benefits if they were released or discharged for any of the following reasons:
You’ll need a certificate of eligibility (COE) to apply for a VA home loan. Once you gain a copy of your discharge/separation papers, you can request your COE by mail, phone, through a lender or via the VA’s online portal.
The requirements for this category will vary depending on your relationship with the military.
The VA has specific occupancy requirements to deter people from misusing their loans. VA loans are intended for primary residences, not investment properties or vacation homes. To that end, applicants can only secure VA for their primary residence and will need to submit proof of homeownership in most instances.
Applicants will also have 60 days after closing on a property to move in and occupy it as their primary residence. In certain circumstances (such as if an applicant is on active duty), this 60-day window will be extended.
VA loans provide a host of advantages to anyone who can secure them. Several examples include:
We’ve established that private lenders prefer applicants with good credit. FICO, one of the most respected credit reporting companies in the world, defines good credit scores as any that fall between 670 and 739.
If your score isn’t already in that range, here are a few strategies to help you along the way.
FICO considers payment history to be the most important factor when determining what affects your credit score. VantageScore®, a credit reporting company founded by Equifax®, Experian® and TransUnion®, also holds payment history in high regard.
Missing a payment can drastically hurt your credit. On the other hand, consistently making payments on time, even if it’s just the minimum payment, will steadily yield positive results.
Credit utilization looks at your credit borrowing trends—your current balances compared with your total credit limit determines your credit utilization rate for a given period. FICO and VantageScore urge borrowers to keep their utilization rates below 10 percent, though 30 percent and below is the next best option.
Errors can appear on your credit report that can dramatically lower your credit. It’s possible to challenge these errors and potentially have them removed, though many people may need help handling credit disputes.
Lexington Law Firm works to help people address these errors on their reports. Plus, we can also contact the major credit reporting bureaus on your behalf.
Low credit scores may make it harder to secure a VA loan. However, it’s never too late to improve your credit and bolster your eligibility. Lexington Law Firm offers unique credit repair services for veterans and service members whose credit may have altered during their time in the military.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Source: lexingtonlaw.com
Turn your passion for playing video games into a career by attending one of the top game design colleges in the country.
Game design is an in-demand industry, with new video games for gaming systems, tablets, and phones continually being developed and released. Here, we’re exploring 20 of the best gaming development programs you might want to consider.
If you’re looking into colleges for video game design, you’ll quickly realize that not all programs are created equally. Some schools only offer a class or two in game design, while others go deep into the field, offering internships and hands-on experiences.
If you’re interested in attending a game design school, it’s important to research schools and programs prior to making your decision. Make sure to look into the specific type of degree you want (undergraduate degree or certificate, for example), the length and commitment of the program, what current and former students have to say about the program, the helpfulness of the faculty and staff, and more.
Luckily, we’ve done the work for you and have narrowed down the top colleges offering game design programs.
There are several video game design colleges and programs in the United States. Here, we’ve created a list starting with the most affordable game design colleges all the way up to those with higher tuition expenses.
Shawnee’s Game Design School has made it on The Princeton Review’s Top Undergraduate Schools for Game Design list for 13 consecutive years, and with such low tuition, it might be a great bargain. Located in Portsmouth, OH, you can elect to study Game Programming or Game & Simulation Arts.
• 1 year of tuition: In-state $9,621.52; Out-of-state $16,156
USV is available on-campus in the heart of Silicon Valley or 100% online. The university offers Bachelor of Arts degrees in both Game Design and Game Art, as well as a Bachelor of Science in Game Engineering. After graduating, students are qualified for roles including animator, modeler, game writer, computer programmer, and more.
• 1 year of tuition: $27,850 for both in-state and out-of-state students
ASU’s Bachelor of Arts in Interdisciplinary Studies offers a concentration in Computer Gaming with three tracks to choose from: Programming, Art, or Education. Located in stunning Tempe, AZ, courses in the program include Introduction to Graphics and Game Development, Fundamentals of Game Art, Game Engine Architecture, and 3D Modeling and Texturing.
• 1 year of tuition: In-state $12,051; Out-of-state $32,193
The Utah Division of Games, located in Salt Lake City, is a college for game designing that combines art, humanities, social science, and computational research and practice to prepare students for careers in the field. Students can choose from multiple gaming bachelor’s degrees, a master’s degree, and even a minor in gaming. The Bachelor of Science in Games includes courses like Survey of Games, Ethics in Games, and Alternative Game Development.
• 1 year of tuition: In-state $9400; Out-of-state $31,104
💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.
USC’s Interactive Media & Games program offers three undergraduate options: a BFA in Themed Entertainment, a BFA in Game Development and Interaction, and a BFA in Game Art. Located in sunny Los Angeles, the program also offers four graduate degrees and nine minors.
• 1 year of tuition: $33,320 for both in-state and out-of-state students
Laguna College of Art and Design Game Art program, located in Laguna Beach, CA, prepares students for employment in any studio or software environment. Students learn the fundamentals of storytelling at every phase of the creation process, how to use a workflow methodology, and how to solve problems in concept challenges.
• 1 year of tuition: $37,500 for both in-state and out-of-state students
Full Sail’s Interactive Technology Bachelor of Science Completion Program in Winter Park, FL offers a Game Design concentration that includes high-level game design and production courses that prepare students to work in game studios after graduation. Recognized as a Top Game Designs Schools by The Princeton Review, the program offers multiple start dates throughout the year and has an accelerated schedule for students looking to finish early.
• 1 year of tuition: $38,750 for both in-state and out-of-state students
Drexel University in Philadelphia offers a Bachelor of Science in Game Design & Production, and is recognized as one of the country’s top undergraduate game design programs. Students learn skills like scripting and storytelling, computer programming, computer graphics, animation, motion capture, and more.
• 1 year of tuition: $38,862 for both in-state and out-of-state students
Bradley University in Peoria, IL offers both a BA and a BS in Game Design. During your studies, you’ll have the opportunity to intern for a design company, participate in competitions, and show your work at an annual exhibit.
• 1 year of tuition: $39,248 for both in-state and out-of-state students
SCAD’s Interactive Design and Game Development degrees offer locations in Atlanta and Savannah, GA with the option to study abroad in Lacoste, France. Students can study at any of the three locations each semester, with the option to switch locations during their time in the program. Courses in the program include Digital Communication, Visual Culture in Context: Pre-Modern Global Perspectives, Aesthetics, and Core Principles: Game Art.
• 1 year of tuition: $41,130 for both in-state and out-of-state students
MSU offers a Game Design and Development Program, a Top 10 Ranked program by The Princeton Review, that was founded in 2005. Students can choose from a Bachelor of Arts in Games and Interactive Media, a Minor in Game Design and Development, or a Serious Games Graduate Certificate. All students get the opportunity to design prototypes and conduct research on the effects of gaming.
• 1 year of tuition: In-state $16,051; Out-of-state $43,435
Recommended: How to Complete the FAFSA Application
The Bachelor of Science degree in Game Design & Interactive Media at UC Irvine includes coursework in game programming, game design and development, visual design, interactive storytelling, data science, and game studies. Students graduate the program well-prepared for a career as a designer, developer, and industry leader. Students also get access to well-respected industry mentors.
• 1 year of tuition: In-state $17.205.74; Out-of-state $32,574
Champlain’s Bachelor of Science in Game Programming provides hands-on experience, with students collaborating to create and complete game projects. Located in gorgeous Burlington, VT, Champlain was named a “Most Innovative School” by U.S. News & World Report in 2022. Upon graduation, students are well-prepared to work in gaming studios.
• 1 year of tuition: $47,400
Level up your creativity with Quinnipiac University’s Game Design & Development Program. Ranked as one of The Princeton Review’s Top Game Design Programs, students can choose a concentration to focus on, including programming, technology, design process, art, game studies, and more. Located in Hamden, CT, the program also gives students the chance to collaborate with partners both within and outside the community.
• 1 year of tuition: $50,400
Recommended: Financial Benefits of Community College
The Game Design, Development, and Arts program at RIT has been rated one of the best programs in this field of study by many organizations, including U.S. News & World Report. Degree options include 3D Digital Design, Film & Animation, Illustration, New Media Interactive Development, and more.
• 1 year of tuition: $56,136
💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.
The Interactive Media and Game Development (IMGD) program at WPI dives into different aspects of gaming design, including digital painting, 3D modeling, writing for games, game audio, artificial intelligence, and virtual reality. Located in Worcester, MA, the program is recognized as one of the oldest gaming programs in the country.
• 1 year of tuition: $57,960
New York University’s BFA in Game Design has three primary areas of study: Game Studies, Game Design, and Game Development. You can also choose from one the following Production Areas: Programming, Video Design, Audio Design, and Game Business. Though tuition here is a bit higher than at some of the other schools, you can pay for it with a federal or private student loan.
• 1 year of tuition: $60,438
The Game Design undergraduate program at Carnegie Mellon in Pittsburgh, PA will give you a solid foundation in game systems and mechanics design, interactive narrative and character development, visual and audio asset creation, game programming, interface design and user testing, and collaboration and the iterative design process.
• 1 year of tuition: $62,260
In USC Santa Cruz’s Bachelor of Science in Computer Science: Computer Game Design, you’ll learn about the construction and design of interactive computer games. In your final year of study, you’ll be immersed in an intensive year-long game project sequence.
• 1 year of tuition: In-state: $30,567; Out-of-state: $65,148
Recommended: Student Debt Guide
Cornell, another of the best game design colleges located in Ithaca, NY, offers a minor in Game Design that includes classes like Intro to Computer Game Architecture, Advanced Computer Game Architecture, Analytics-Driven Game Design, Graphics and Art, the Psychology of Gaming, and Human-Computer Interaction.
• 1 year of tuition: $65,204
With so many game design colleges available, it might be hard to make a decision. Factors to keep in mind include the type of program, the location, the faculty and staff, and the cost.
However, don’t let cost deter you from going to the school of your choice. To pay for school, you can look into federal student loans, scholarships, and grants.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
Shawnee State University offers a nationally acclaimed game design program with low tuition. Tuition for in-state residents is $16,156 per year.
Cornell University has one of the most expensive game design programs in the U.S. at over $65,000 per year.
Game design schools can range from $16,000 per year all the way up to more than $65,000 per year.
Photo credit: iStock/fizkes
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
SOIS0124011
Source: sofi.com
Average mortgage rates sunk across the board from a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all receded.
While it’s expected that rates will gradually come down this year, the path might be bumpy.
At its Jan. 31 meeting, the Federal Reserve announced it would hold off changing rates, but could cut rates in the future. At their March 20th meeting, the Fed will update their outlook on rates. Rate fluctuations affect many areas of the economy, including the 10-year Treasury, a key benchmark for fixed-rate mortgages.
“Where the 10-Year Treasury yield goes, mortgage rates will follow,” says Ken Johnson of Florida Atlantic University. “In roughly the last two months, the 10-year Treasury yield is up 50 basis points. Depending on the source, the 30-year mortgage rate is up 48 basis points. Treasurys’ path remains a coin toss at this point.”
Rates accurate as of March 8, 2024.
These rates are Bankrate’s overnight average rates and are based on the assumptions here. Actual rates listed within the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Friday, March 8th, 2024 at 7:30 a.m.
Today’s average rate for the benchmark 30-year fixed mortgage is 7.03 percent, down 15 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was higher, at 7.17 percent.
At the current average rate, you’ll pay a combined $667.32 per month in principal and interest for every $100,000 you borrow. That’s down $10.11 from what it would have been last week.
Standard lending practices defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers buying a home as it allows the borrower to spread payments out over 30 years, keeping their monthly payment lower.
The average rate for a 15-year fixed mortgage is 6.52 percent, down 12 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost $872 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
The average rate on a 5/1 ARM is 6.31 percent, ticking down 4 basis points from a week ago.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for people who expect to refinance or sell before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.31 percent would cost about $620 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
The average rate for a jumbo mortgage is 7.04 percent, a decrease of 7 basis points from a week ago. Last month on the 8th, the average rate was greater than 7.04 at 7.23 percent.
At the average rate today for a jumbo loan, you’ll pay $667.99 per month in principal and interest for every $100,000 you borrow. That’s $4.72 lower, compared with last week.
The average 30-year fixed-refinance rate is 7.05 percent, down 14 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.18 percent.
At the current average rate, you’ll pay $668.66 per month in principal and interest for every $100,000 you borrow. That’s down $9.45 from what it would have been last week.
With inflation still above the Fed’s 2 percent goal and the job market holding strong, the Fed isn’t likely to cut rates at its March meeting.
“The Federal Reserve will not cut interest rates in the first half of this year, in my view,” says Lawrence Yun, chief economist of the National Association of Realtors, “but rate cuts of three, four or even five rounds will be possible in the second half of the year as rent measures will be much more well-behaved.”
The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
Source: bankrate.com
The CIRT 2024-L1 covered about 28,000 single-family mortgage loans that had an outstanding unpaid principal balance of around $9 billion. This covered loan pool included collateral with loan-to-value (LTV) ratios of 60.01% to 80% that were acquired from January 2023 – April 2023. These loans were fixed-rate, generally 30-year term, fully amortizing mortgages. Through the … [Read more…]
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
A balance transfer fee is a charge that occurs when you transfer an outstanding balance from one account to another. Balance transfer fees are based on the amount of money you’re attempting to migrate. Normally, fees are around 3 to 5 percent of your outstanding balance.
Boosting your comprehension of credit card terms and conditions, balance transfers and interest rates can help you avoid overpaying with balance transfer fees. This guide will explore these fees in detail and offer strategies to make the most of your credit cards without breaking the bank.
Key takeaways:
Table of contents:
To help you better understand what a balance transfer fee is, we’ll break this term down:
Balance transfer fees range from 3 to five percent of the amount you wish to transfer. The exact price will vary from one instance to the next, but you can find more specific information in your lender’s terms and conditions for balance transfers.
Finding and using a card that doesn’t charge a fee is the most straightforward way to avoid balance transfer fees altogether. These cards may also have a 0 percent APR offer for a set amount of time, which can save you lots of money in the long run.
Another alternative to initiating a balance transfer is utilizing a debt consolidation loan. Rather than keep track of multiple accounts with varying interest rates, this option can help you consolidate credit card debt in one place. However, keep in mind that consolidation loans can have high requirements for applicants, and your accounts might be frozen while the process takes place.
Initiating a balance transfer won’t affect your credit alone, though the result may cause your scores to fluctuate. One factor it may affect is your credit utilization, which compares your current balance against your total credit limit and makes up 30 percent of your FICO® credit score. Transferring funds to even out the balances on your credit cards can improve your credit utilization and positively affect your credit health. It’s best to aim for a credit utilization rate of less than 30 percent, if you can.
Conversely, applying for a new credit card typically triggers a hard inquiry on your credit profile, which can temporarily hurt your credit. Inquiries can stay on your credit report for up to two years, but they shouldn’t hurt your credit very much or for very long.
Lastly, the fee generated from initiating a balance transfer can take away from funds that you would’ve used to pay down a balance. Missing or being late on a payment can negatively impact your credit, as payment history makes up 35 percent of your FICO score.
Balance transfer fees are often worth it if you’re transferring money onto a card with low or no interest at all. Let’s say you currently have a card with a 30 percent APR and a balance of $1,000. If you have a 30-day billing cycle, that balance would generate $24.95 each cycle.
If you transferred that balance to a card with 0 percent APR, that balance would generate $0 each cycle for a one-time balance transfer fee of $30 to $50. In essence, balance transfer fees might be worth it if you have a balance that you’ll need to pay off over a long period.
The best balance transfer cards offer much more than a promotional 0 percent APR incentive. How these cards function long-term can also help you determine if they’re right for you. Below, we outline several important factors to keep in mind when shopping around for a balance transfer card.
The terms and conditions of a new credit card will outline a wealth of helpful information for you to keep in mind. You can typically find these documents digitally, or have them mailed to you. Here, you can see your card’s specific parameters for balance transfers along with your credit limit and APR.
As previously mentioned, balance transfers normally float between 3 and 5 percent of the transfer amount. However, minimum fees can kick in if you transfer a small amount of money. Normally, these minimum fees range from $10 to $15.
Annual fees can vary for different types of credit cards. Some don’t charge anything, while others can cost hundreds of dollars. When transferring funds onto a new card, be sure that you can manage the annual fee that might come with it.
Balance transfer fees are often inconvenient and occasionally confusing. Speaking with a financial expert can take much of the guesswork out of handling account balances, so you may want to look into this.
Additionally, Lexington Law’s services can help you review your credit report and keep an eye out for any inaccurate negative items that may be affecting your credit. You can also refer to our library of articles about credit and other financial topics for more information.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Source: lexingtonlaw.com
There are many types of scholarships, from academic to athletic and need-based to identity-specific scholarship programs. Recipients typically don’t need to repay the funds they receive in the form of scholarships, which makes this type of funding particularly appealing.
In a 2023 Sallie Mae survey, How America Pays for College, it found that 61% of U.S. families used scholarship funds to partly pay for college. The average scholarship award amount across school, state, and company or nonprofit sources was $8,005.
Despite this available aid, 29% of students who didn’t use scholarship funding said they didn’t apply because winning didn’t seem plausible. However, with so many different types of scholarships available, you might find one that can help you pay for school.
Academic scholarships, also referred to as merit scholarships, are awarded to students who’ve demonstrated academic excellence or exceptional skill in an area. For example, a merit-based scholarship might be based on an applicant’s cumulative GPA.
This kind of scholarship is provided by numerous sources, including:
Some high schools provide academic scholarships to their top graduating seniors. Additionally, the college you’re attending might have scholarships available.
Nationally recognized organizations offer federal academic scholarships based on different criteria and specifications.
Students might also find scholarships sponsored by their state, county, city, or local associations.
💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.
Athletic scholarships are offered to student-athletes by their college. These full- and partial-scholarship programs are offered to a select few students who have shown exceptional skill in their sport.
Typically, when participating in an athletic scholarship you’re expected to maintain satisfactory academic performance to continue receiving funding. Note that fewer than 2% of high school athletes are awarded athletics scholarships to compete in college.
Recommended: Balancing Being a Student Athlete & Academics in College
Students who participate in extracurricular activities might be able to find scholarship opportunities for their unique interests. For example, scholarships for students who dance, act, draw, or participate in Boy Scouts, Key Club, and more exist.
There are many types of scholarships that are based on the student’s personal situation or affiliation. Some of these kinds of scholarships include:
For example, your specific religious denomination. These scholarships are generally available to students who are actively involved in a faith-based community, or who are pursuing religion-based college courses.
Students who are the first in their family to attend college may qualify for specific scholarships.
These scholarships are exclusively for students whose parents or close family members are alumni of the same institution.
In addition to the student-specific scholarships discussed above, scholarship programs are also available based on a student’s personal identity. Some identity-based categories include BIPOC, Women, and LGBTQIA+.
Scholarships are available based on heritage. Students of Hispanic or Latinx heritage may be able to qualify for specific heritage-based scholarships like those offered by the Hispanic Scholarship Fund.
Specific scholarships are available for African American students as well.
Scholarships for women are another subset of options.
LGBTQIA+ identifying students may be eligible for scholarships as well.
These scholarships are available to select students who have diagnosed learning and attention issues. For example, the National Center for Learning Disabilities offers scholarships.
One of the most popular types of scholarships for college are need-based. These scholarships are accessible to applicants who have a demonstrated financial need, and a program might ask for proof, such as income documentation or FAFSA® information.
You can find need-based scholarships from national organizations, as well as within your state, local community, and even through your own school.
Recommended: What is Need-Based Financial Aid?
Employer scholarships are offered to employees of a company or an employee’s college bound student. Aside from having an affiliation with the employer, students might need to meet other eligibility criteria to be selected for an award.
Private and public entities sponsor military scholarships for students who currently serve or have served in the U.S. armed forces. If you’re a first-time freshman and participated in Reserve Officer Training Corps, consider reaching out to your school’s ROTC officer to learn about your options.
STEM scholarships are accessible to students who are pursuing a college education in a science, technology, engineering, or math discipline. Some scholarships programs are offered specifically to students who identify with a particular group; for example, STEM scholarships for minority students.
Regardless of what you’ve chosen as your college major, there’s likely a scholarship suited for you. These scholarships are provided by some college departments, the school itself, or private organizations who want to encourage students to pursue a particular area of study.
This kind of scholarship explicitly doesn’t include a written essay or personal statement component. You might prefer this type of scholarship if writing isn’t your forte, but there might be another required component in its place, such as a video or other creative submission.
There are various types of scholarships for college, which means there are just as many different requirements and deadlines to stay on top of. When applying to a scholarship, double check that you meet the basic eligibility criteria as a student.
Depending on the type of scholarship, it might require a minimum GPA, or it might ask for proof that you have financial needs, for example. After confirming that you meet the applicant requirements, review the steps needed to apply.
Some scholarship programs might ask for a personal statement or other academic or creative submissions. Similarly, some might request additional paperwork as part of your application, like a copy of your school transcripts.
Finally, make sure you note each scholarship’s deadline and submit your application on time. The last thing you want is to have done all of the work only to be denied because of a missed deadline.
If you’d like to diversify your financial aid sources, there are alternative aid options, like loans for undergraduates and graduate students, as well as grants. To apply for federal financial aid, fill out the Free Application for Federal Student Aid (FAFSA) each year. Schools may also use the information provided on the FAFSA to award school-specific scholarships. Here are a few other options for paying for college.
Grants are provided by federal, state, school, and private sources. Like scholarships, they typically don’t need to be repaid.
Federal student loans are available to undergraduate and graduate students, as well as parents of dependent undergrads. They’re funded by the U.S. government, and most federal loans don’t require a credit check. In addition to offering fixed rates, they provide access to income-driven repayment plans and loan forgiveness programs.
When scholarships, grants, and federal student loans aren’t enough to cover the total cost of college, a private student loan could help. These loans are funded by private lenders, and offer fixed- or variable-rate loans at different terms. These loans typically require a credit check or the addition of a creditworthy cosigner. Keep in mind that private student loans aren’t required to offer the same benefits, like income-driven repayment plans, as federal student loans.
If you’re short on aid for your upcoming academic year, consider searching for unclaimed scholarships. There are a variety of scholarship types to consider, so you’ll likely come across at least a handful that you’re eligible for.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
SoFi private student loans offer competitive interest rates for qualifying borrowers, flexible repayment plans, and no fees.
Common types of scholarships for college are merit-based scholarships, need-based scholarships, and athletic scholarships. However, within these categories are sub-categories of scholarships based on specific eligibility factors.
There are millions of scholarships being offered each year. According to Educationdata.org, more than 1.7 million scholarships are awarded annually.
Competitive scholarships are prestigious national scholarship programs. They are often merit-based and are awarded to exceptional students who’ve demonstrated academic excellence, leadership, and who are considered the nation’s top students.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
SoFi 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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
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.
Photo credit: iStock/Edwin Tan
SOIS0324001
Source: sofi.com
President Joe Biden has proposed an annual tax credit that would give Americans $400 a month for the next two years to put towards their mortgages.
Addressing the affordability crisis in the housing market in his State of the Union address on Thursday, Biden said: “I know the cost of housing is so important to you. Inflation keeps coming down, and mortgage rates will come down as well.
“But I’m not waiting. I want to provide an annual tax credit that will give Americans $400 a month for the next two years as mortgage rates come down, to put towards their mortgage when they buy their first home, or trade up for a little more space.”
Home prices skyrocketed during the pandemic, driven by relatively low mortgage rates, high demand and low inventory. At their peak, the median listed price for a home in the U.S. reached $465,000 in June 2022, according to data from the Federal Reserve Bank of St. Louis (FRED).
While the housing market experienced a price correction between late summer 2022 and spring 2023, prices remain historically high, propped up by lingering low supply. In June 2023, the median listed price for a home in the U.S. was $448,000. As of January 2024, this was $409,500, according to data from FRED.
While home prices have stayed high for the past three years, a rise in mortgage rates driven by the Federal Reserve’s aggressive hike rate campaign last year has led to many aspiring homebuyers being completely squeezed out of the market. In December last year, the reserve said that it would have stopped rising rates, but mortgages are yet to significantly come down.
High mortgage rates, together with the historic shortage of homes in the U.S.—due to the fact that the country hasn’t built enough homes to meet demand since the housing crash of 2008—have contributed to the current affordability crisis.
In late 2023, J.P. Morgan said that, based on then-current trends, housing affordability could be restored in 3.5 years. Newsweek contacted J.P. Morgan for comment by email on Friday morning.
Biden is now calling on Congress to provide a one-year tax credit of up to $10,000 to middle-class families who sell their starter home—a home below the median home price of the area where it is located—to another owner or occupant. The White House said that this proposal could help nearly 3 million American families.
On Friday, Biden’s announcement on the tax credit was met with a standing ovation and roaring applause by Democratic lawmakers, while about half of the House stayed seated.
The president also mentioned other measures to address the housing affordability crisis in the U.S. These included down-payment assistance for first-generation homeowners, tax credit to build more housing, and lowering costs by building and preserving millions of homes.
“My administration is also eliminating title insurance on federally backed mortgages,” Biden told lawmakers on Friday.
“When you refinance your home, you can save $1,000 or more as a consequence. We’re cracking down on big landlords who break antitrust laws by price-fixing and driving up rents. We’ve cut red tape, so builders can get federal financing,” the president said among the cheering of some lawmakers.
Update, 3/8/24, 8 a.m. ET: The headline on this article was updated.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Source: newsweek.com
The Biden Administration has just unveiled a number of proposals to make homeownership more affordable.
Aside from legislation to build and renovate more than two million homes, they are calling on Congress to approve a pair of new “mortgage relief credits.”
One targets prospective home buyers grappling with significantly higher mortgage rates, while the other addresses home sellers dealing with mortgage rate lock-in.
Both are intended to increase the supply of homes for sale, which has been below healthy levels for several years now.
The question remains whether incentivizing home buying is what’s necessary for the housing market at the moment.
The mortgage relief that targets home buyers would provide a tax credit of $5,000 for two years to first-time home buyers.
Generally, this is defined as someone without ownership interest in the three years preceding the home purchase.
In total, these new home buyers could snag $10,000 in tax savings over the first two years.
A tax credit directly reduces your tax bill, unlike a deduction, which simply reduces your taxable income.
This piece of legislation is intended to tackle the high mortgage rates currently available, which nearly tripled from below 3% to above 8% recently.
Per the White House fact sheet, the $10,000 in savings is the equivalent of reducing the borrower’s mortgage rate by more than 1.5 percentage points on a median-priced home.
At last glance, the median home was valued at roughly $418,000. Of course, these savings only exist for two years. More on that in a moment.
The Biden administration believes this credit could help more than 3.5 million middle-class families purchase their very first home over the next two years.
The other mortgage relief credit would incentivize home sellers, many of whom have been reluctant to sell because of their very cheap mortgages.
Known as the mortgage rate lock-in effect, it’s the concept of staying put for fear of losing your existing mortgage rate if you move. And having to replace it with a much higher one.
To offset this lock-in effect, middle-class families who sell their “starter home” to another owner-occupant would receive a tax credit of up to $10,000.
They define a starter home as one valued below the area median home price in the county where it’s located.
The Biden administration thinks this could unlock homes that no longer fit the needs of many households nationwide, and help an estimated three million families i the process.
On top of these tax credits, they are still pushing for $25,000 in down payment assistance to first-generation home buyers.
And they’re targeting the elimination of certain closing costs, such as lender’s title insurance, which could save the average homeowner $750 when refinancing.
While the new proposals might be well-intentioned, one has to wonder if they won’t simply stoke demand at a time when supply remains far too low.
Sure, there’s an incentive to both buy and sell a home with these tax credits, but it’s unclear how many existing owners would sell just to get the $10,000 tax credit.
After all, if they’re sitting on a 2-3% 30-year fixed mortgage rate, it wouldn’t take long for the $10,000 to be absorbed via their new, much higher housing costs.
Just pretend a family holds a $300,000 mortgage set at 2.75%. Their monthly principal and interest payment is $1,224.72.
If they sold and then bought another property for say $400,000 with a rate of 6.5%, their new monthly P&I would be $2,528.27.
That’s a difference of over $1,300 per month, which would eat up the $10,000 credit in less than eight months!
These sellers would also have to incur moving costs, closing costs on a new mortgage, and compete with other home buyers to find a replacement property.
The credit for first-time home buyers could also arguably result in hotter demand, even if more homes were coming online.
Lastly, it seems they’re banking on lower mortgage rates in the near future, at which point these first-time buyers would be able to get more permanent savings beyond year two via a rate and term refinance.
In the end, it appears we’re stuck between a rock and a hard place. Ultimately, the accommodative interest rate policy of the past decade created a serious divide of haves and have nots.
And without a lot more inventory, or perhaps slightly lower mortgage rates that allow transactions to occur naturally again, it might be a while before things normalize again.
Source: thetruthaboutmortgage.com
President Joe Biden’s new plan to lower housing costs includes a pilot program that waives the requirement for lender’s title insurance on certain refinance transactions, according to the White House. The plan will be announced during his 2024 State of the Union address on Thursday night.
However, that’s a controversial topic for the mortgage industry and it’s already facing resistance from trade groups. Regulators believe reducing title requirements would cut closing costs, but title and mortgage companies challenge the argument and point to elevated risks.
On Thursday afternoon, the White House announced that the Federal Housing Finance Agency (FHFA) has approved policies and pilots to reduce closing costs, including the pilot to waive lender title requirements.
The program “would save thousands of homeowners up to $1500, and an average of $750,” unlocking “substantial savings for homeowners as mortgage rates continue to fall and more homeowners are able to refinance,” the White House estimates.
Regarding the risks of waiving title requirements, it also mentioned an independent analysis showing that title insurance typically pays out only 3% to 5% of premiums in claims to consumers, compared to more than 70% in other types of insurance.
Following the announcement, FHFA director Sandra Thompson clarified that the pilot only impacts lender’s title policy or legal opinions, focuses on low-risk refinance transactions and will be subject to “robust oversight.”
Government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac’s attempts to launch title waiver programs, which aim to improve affordability by reducing closing costs, have faced resistance from trade groups since 2023 due to allegedly increased risks.
However, according to Thompson, the pilot “does not impact a borrower’s title risk since it only applies to certain refinance loans where the borrower has title to the property already.” The FHFA director added that these are “low-risk refinance transactions where there is confidence that the property is free and clear of any prior lien or encumbrance.”
In addition, Thompson said that lenders will “retain the option to provide evidence of clear title through other options, such as title insurance or an attorney opinion letter (AOL). Meanwhile, homeowners can always purchase their title insurance policy or AOL if they choose.
In March 2023, a report from PoliticoPro showed that Fannie Mae was considering piloting a program to bypass traditional title insurance and AOLs, which drew resistance from trade groups. The introduction of AOLs had already frustrated groups representing the title industry the previous year. In August 2023, Fannie Mae said it was no longer considering the pilot program.
Following the White House announcement, Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit said the trade group has “significant concerns that some of the proposals on closing costs and title insurance could undermine consumer protections, increase risk, and reduce competition.”
In an emailed statement, the American Land Title Association (ALTA) called the program a “purely political gesture offering a false promise of savings for homeowners while exposing consumers, lenders, and taxpayers to greater financial risk.”
“The approval of this waiver is a hollow attempt by the White House to placate Americans’ current economic frustrations,” the statement continued. “By announcing this only hours before the State of The Union address, without outreach to, or engagement with, the title insurance industry, the Administration has reduced the crucial role of the industry to nothing more than a politicized talking point.”
The trade group also noted that federal lawmakers introduced a bill in October 2023 that would require title insurance on all mortgages purchased by the GSEs.
“Since the waiver program was first reported, the FHFA has faced strong bipartisan opposition,” the statement read. “The Administration should not be playing politics with the American Dream.”
In her statement, Thompson said, “As with any pilot undertaken by an Enterprise, this effort will be subject to robust oversight by FHFA to monitor the effectiveness of the pilot in meeting its desired outcomes.”
Source: housingwire.com
The originators who are weathering the industry headwinds told HousingWire that a significant decline in mortgage rates is no longer expected.
“Generally speaking, originators did not expect mortgage rates to be as high as they are right now. But look, I think a lot of it is wishful thinking. The refinance boom lasted three years. Why would the higher rate environment not last as long?” said Craig Strent, former CEO of Apex Home Loans and head of the faculty of mentors at The Loan Atlas, a mortgage coaching platform.
“A lot of people are going after not a lot of deals, and it’s easy to fall into a race to the bottom and get commoditized. It’s a survival of the people that are doing the right things,” Strent added.
The high-performing LOs are not putting a lot of focus on a potential decline in mortgage rates. Rather, their priorities are buyer education and the nurturing and building of more referral relationships to expand their market share, loan originators who spoke to HousingWire said.
“For every five phone calls I have, only one out of five of those will actually supply paperwork. They want to know what the rates are and they say it’s too high,” said Justin Wood, production manager at CMG Financial.
Many of his buyers are still waiting for rates to come down before seeking preapproval for a mortgage. On the other hand, some buyers see the value of getting a higher-rate mortgage in the current environment.
Having a fully preapproved mortgage, buyers will be able to jump on the opportunity more quickly when they find the home they’ve been looking for, Wood explained.
These are the borrowers who know it’s unrealistic to get mortgage rates as low as 3% and realize a drop in mortgage rates will entail a rise in list prices due to lower levels of housing inventory.
What’s changed about first-time homebuyers is that they no longer expect to get mortgages at 4% levels like they did during the COVID-19 pandemic, said Khash Saghafi, a loan officer at Liberty Home Mortgage Corp.
Saghafi has clients who recently decided to pull the trigger and move to a bigger house by selling their home that had a 2.375% mortgage rate.
The couple was quoted 7% for a $500,000, three-bedroom home in early March, and they decided to go ahead with the purchase as they expect to refinance the mortgage when rates eventually decline.
“What I tell all loan officers, no matter who I talk to, is that there’s no foreclosure crisis coming on the horizon,” Saghafi said. “For that reason, real estate prices are only going in one direction — and that’s up. So, whatever you’re looking at today, it’s going to be more expensive 12 months from now.”
Educating borrowers on the reasons why they should be in the market now is crucial in adding value, Saghafi and other mortgage professionals emphasized.
“Even though the rates are higher now, I think it’s a great market for a first-time homebuyer,” Saghafi said. “Interest rates going up definitely cooled the market, but overall, that is not the problem.”
The rationale behind this thinking is that if a borrower can afford their current monthly mortgage payment, they can always refinance when rates drop, rather than waiting until rates decline only to see home prices soar.
“I have spoken to multiple people that feel trapped in their home,” Strent said. “They say, ‘Why would I sell my $600,000 home at 3.5% to buy a $1 million house at 7%?’ That 7% rate is high now, but you’re going to refinance. If you wait for rates to drop to 5%, that $1 million house is going to be $1.4 million because everybody else is going to want it.”
Mike Simonsen, founder and president of real estate analytics company Altos Research, expects home prices to climb for the rest of the spring and peak in June.
“There are buyers on the sidelines and if rates were to finally fall again, you’ll see inventory fall with new bidders, you’ll see fewer price reductions and you’ll see the leading indicators of home sales prices … climb over last year,” Simonsen wrote in recent commentary.
According to Michael Clark, vice president at Primary Residential Mortgage, there’s no secret to grabbing market share — it’s about doing outbound sales activities, addressing agents’ fears and adding value for them.
“Our philosophy is, ‘Go help agents that are sending you buyers.’ Market their listings; go to their listings. By doing so, you are adding value to their marketing efforts and getting them a contract even if you don’t write a loan on that home,” Clark said.
When an agent sees this effort, they will be more likely to send buyers, refer the loan officer to other agents through word of mouth, and even pick up some clients at an open house.
Clark’s team of 73 loan originators who cover the East Coast funded $81 million in loans in January 2024, up 35% from January 2023. More than 20 of his LOs produced at least $1 million in volume during the opening month of this year and 10 of them topped $2 million.
“All those guys weren’t doing that much volume in 2019,” Clark noted.
U.S. mortgage origination volume is expected to be $2 trillion in 2024 and $2.3 trillion in 2025, according to forecasts from the Mortgage Bankers Association (MBA). For comparison, lenders funded $2.4 trillion in first-lien mortgages in 2019, prior to the pandemic.
“Buyers are shopping left and right, but we don’t get shopped. Why? Because there’s an actual relationship — we are their mortgage adviser,” Clark said. “We’re not just some transaction coordinator that is trying to push paper to a closing table.”
“I always tell our loan officers and our team, activity breeds activity,” Wood said. “There’s a tough market out there for sure, but I think it’s creating a lot of good opportunities for people that are ready to go and serious about buying.”
Source: housingwire.com