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Apache is functioning normally

April 30, 2024 by Brett Tams

Borrower Outreach, Servicing Oversight Products; TPO News; Bank Merger Announced; Brokers and RESPA

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Borrower Outreach, Servicing Oversight Products; TPO News; Bank Merger Announced; Brokers and RESPA

By:
Rob Chrisman

Mon, Apr 29 2024, 11:52 AM

“I accidentally rubbed ketchup in my eyes. Now I have Heinzsight.” In terms of foresight, looking ahead, there are some interesting things going on out there in Mortgage Land! How ‘bout the CapitalW Collective non-profit for women in mortgage capital markets? And Beeline’s Miguel Vega has been in the press lately with, “The Dream of Owning a Piece of America is a Dominant Theme in the Latino Community” and the company launching a Spanish-language version of its home loan experience this week. Something else that continues to be “interesting” is the question, “Are brokers violating RESPA every day?” This question is asked because brokering is a referral of a customer to a lender, right? HUD identified fourteen services normally performed in the origination of a loan (Section II, subsection C of the link above), and brokers usually do five out of the fourteen services, including taking the application, to get around RESPA. Mortgage attorney Brian Levy addresses the broker/RESPA issue in “RESPA, a whole(sale) lot of trouble.” Brokers, be careful that you’re the person actually originating the loan in terms of regulations! (Found here, this week’s podcasts are sponsored by Essex Mortgage. Essex specializes in providing exceptional mortgage subservicing solutions tailored to meet your specific needs. Looking to capitalize on your excess servicing strip? Check out Essex’s servicing offerings today!)

Lender and Broker Products, Software, and Services

In today’s regulatory environment, audits seem to be nonstop: Is your team ready? Clayton’s Servicing Oversight specialists can support your associates as they prepare for regulatory, GSE and investor audits, including customer contact evaluations, yearly validation of PRCI and RCSA and focuses on loss mitigation and foreclosure. Whether you need staff augmentation or help with audit responses, our experts are there for you. Clayton’s Servicing Oversight team provides audit support services across the entire mortgage servicing lifecycle. Contact Clayton’s Samantha Shanaberger to learn more about how Clayton Servicing Oversight can help your team tackle audits.

Winning Agent Business: The lender’s guide to building a strong referral network, updated for 2024! In the aftermath of the NAR ruling, agents are more incentivized than ever to show their clients value. That means they’re actively looking to partner with top-tier lenders in their market. Want to take advantage and grow your referral business? Maxwell just updated its Winning Agent Business eBook with new tips straight from agents to help you better network to create a strong funnel of referral leads. Download your free copy to learn qualities agents value in their lending partners, networking dos and don’ts, ways to become a go-to lender, and more.

In today’s competitive purchase market, the lenders who stand out are providing excellent, personalized, and consistent communication. This approach is key to attracting new business, keeping your current borrowers happy and retaining clients for life. In our new blog, we’re sharing how the Surefire℠ CRM and Mortgage Marketing Engine can help you streamline and improve your borrower outreach even further, so you’re prepared to thrive in today’s competitive purchase market. And by leveraging both Surefire and Encompass®, you’re able to deliver targeted content to the right contacts at the right moment. Read the full blog to gain all the insights.

Mergers and Acquisitions

UMB Financial Corporation (Nasdaq: UMBF) and Heartland Financial, USA Inc. (Nasdaq: HTLF) announced today that they have entered into a definitive merger agreement under which UMB Financial Corporation (UMB) will acquire Heartland Financial USA, Inc. (HTLF), in an all-stock transaction valued at approximately $2.0 billion.

HTLF is headquartered in Denver and has $19.4 billion in assets, $16.2 billion in total deposits and $12.1 billion in total loans, as of March 31, 2024. The combination of companies will create an entity spanning a 13-state branch footprint, adding California, Minnesota, New Mexico, Iowa and Wisconsin to UMB’s existing eight-state footprint, which includes Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas.

Within its 11-state footprint, HTLF does business as: Minnesota Bank & Trust, Wisconsin Bank & Trust, Dubuque Bank & Trust, Illinois Bank & Trust, Bank of Blue Valley, Citywide Banks, Premier Valley Bank, Arizona Bank & Trust, New Mexico Bank & Trust and First Bank & Trust.

UMB will host a call for the investment community on Monday, April 29, at 7:30 a.m. (CT) / 8:30 a.m. (ET). Interested parties may access the call by dialing (toll-free) 833-470-1428 or (international) 404-975-4839 and requesting to join the UMB Financial call with access code 397231. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link: UMB Financial Conference Call. A replay of the conference call may be heard through May 13, 2024, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 182605. The call replay may also be accessed at investorrelations.umb.com.

If Borrowers Opt Out of DU and LP…?

I ran this note on Friday, and it caused a bit of a stir given the implications so I thought it was worth mentioning again. If this bill passes, what will it do to your underwriter staffing and efficiency?

California, which accounts for 20-25 percent of residential lending in the U.S. is considering AB 2930, basically giving consumers the right to “opt out” of automated underwriting tools. It could massively disrupt lending because of the ubiquitous use of DU/LP. California MBA CEO Susan Milazzo writes, “California MBA has concerns with AB 2930 (Bauer-Kahan), a bill that would require lenders to perform impact assessments related to automated decision tools (ADT), provide borrowers disclosure notices on the use of ADTs, and provide alternative manual underwriting options to consumers upon request. The bill would disrupt the availability of credit for California residents by imposing potentially conflicting regulations upon lenders who are already highly regulated by existing federal and state consumer protection laws, and are subject to regulatory oversight for identifying, monitoring, and controlling the risk of discrimination or bias. (Reach out to Susan with questions or to lend support defeating it.)

TPO and Investor News with Planet Home Details

Pennymac updated Jumbo LLPAs, effective for all Best-Efforts Commitments taken on or after Monday, April 29, 2024. View Pennymac Announcement 24-38 for more information.

In conjunction with enhanced enforcement from the GSEs, Pennymac will begin the review and remediation of inaccurate or improperly executed 4506-Cs at loan delivery. In addition to the requirements and best practices that were provided in Announcement 23-37, new requirements are listed in Pennymac Announcement 24-39.

Plaza Home Mortgage® has made updates in BREEZE: Appraisal Reconsideration new link, VVOE Fee Disclosed Upfront and New Buttons added.

Carrington Mortgage Services (CMS) added to its diverse non-QM lending offerings introducing Individual Taxpayer Identification Loans (ITIN) for its retail, wholesale, and correspondent lending customers. Although historically, borrowers seeking ITIN loans have sometimes been vulnerable to excessive interest rate loans, the ITIN loans offered by Carrington provide access to homeownership at fair interest rates for mortgages and normal terms. The product demonstrates the unique benefits of The Carrington Companies’ position as an asset manager gives homeowners, brokers, and sellers access to the company’s respectable liquidity as well as Carrington’s dedication to continually innovate as market conditions evolve.

ITIN borrowers can buy, refinance or invest in real estate with Carrington Mortgage Services.

Non-U.S. citizens who do not have a Social Security Number, but live and pay taxes in the United States and have an Individual Taxpayer Identification Number (ITIN) can now qualify for Carrington’s full suite of non-QM loan products. ITIN borrowers are now eligible for all four of our non-QM loan programs: Carrington Prime Advantage, Carrington Flexible Advantage Plus, Carrington Flexible Advantage, and Carrington Investor Advantage.

In accordance with the recently announced temporary enhancements the GSEs made to the HomeReady and Home Possible programs, Citi Correspondent Lending is accepting loan submissions for these programs with VLIP credit. View the complete announcement addressing both Best Efforts and Mandatory Desk loans.

Introducing a unique opportunity from Angel Oak Mortgage Solutions, a First Lien Business Bank Statement Home Equity Line of Credit (HELOC) tailored specifically for homeowners who own their homes free and clear. Compelling benefits for these homeowners: Competitive rates and terms, Convenient access to funds for various needs, Streamlined application and approval process. If you have clients who own their homes outright and are interested in leveraging their equity with a First Lien HELOC, Angel Oak Mortgage Solutions can assist.

Planet Financial Group, LLC, parent of national mortgage lender and servicer Planet Home Lending, LLC and Planet Management Group, LLC, had quite a first quarter. In the first three months of the year, Planet earned Fannie Mae’s coveted Servicer Total Achievement and Rewards (STAR™) Program recognition, brought to market a suite of proprietary home loan programs targeting the unique challenges facing today’s homebuyers, was awarded Top Workplace USA for the fourth year in a row, and became the #4 Ginnie Mae correspondent lender and #8 Ginnie Mae servicer. The company saw volume grow by 255 percent for the retail retention division, which continues to hold an 89 percent recapture rate, and sub-servicing AUM increase by 33 percent, $11B of non-agency assets.

Planet’s total servicing portfolio ended the quarter at $106.44 billion, up 2 percent from $104.69 billion in the fourth quarter of 2023. At quarter end, Planet was the #8 Ginnie Mae servicer, and #14 servicer overall, according to Refinitiv. Since 2019, Planet’s Servicing division has posted a compound annual growth rate (CAGR) of 42 percent. Residential sub-servicing volume ended the quarter at $10.8 billion, up 33 percent from $7.2 billion at quarter end 2023. Planet manages and services a diverse range of residential and commercial asset classes, including non-QM, Debt Service Coverage Ratio loans, Residential Transition Loans, small-balance commercial properties, multifamily and Single-Family Rental. Planet moved into the Top 10 nonprime servicers and the Top 20 non-agency MBS issuers. Over the past year, Planet’s market share in nonprime has more than doubled from 1.1 percent to 2.4 percent, the latest available Inside Nonconforming Markets data shows.

Planet’s residential origination volume was $4.39 billion for Q1 2024, down 6 percent from the prior quarter, on par with the MBA’s projection for overall origination volume. Recapture originations increased to $323 million in Q1 2024, a rise of 255 percent compared to $91 million in Q4 2023. Planet’s verified recapture rate continued to outpace industry benchmarks, rising to 89 percent for loans originated by the company’s retail branches and 62 percent overall.

Correspondent volume was $3.94 billion, down 11 percent from the prior quarter volume of $4.41 billion. Planet’s correspondent market share rose from 4.2 percent at yearend 2022 to 6.0 percent at yearend 2023, according to the latest data available from Inside Mortgage Finance. Since 2019, the Correspondent division’s CAGR was 32 percent.

The correspondent customer base held steady despite continuing M&A activity and exits in the retail market. Nearly two-thirds of Planet’s correspondent partners lock loans on a monthly basis. Ending the quarter, Planet was the #5 correspondent lender overall and the #4 government correspondent lender, according to data from Refinitiv.

Capital Markets

Last week we learned that in the first quarter Gross Domestic Product growth fell short of expectations at a 1.6 percent annualized pace despite strong consumer spending. Personal consumption increased by 2.5 percent, driven by a 4 percent rise in spending on services. Personal incomes rose by 0.5 percent, while personal consumption increased by 0.8 percent, driven by healthcare and housing. The Personal Consumption Expenditure (PCE) deflator reading rose to a 3.7 percent annualized rate, but March’s personal income report suggested inflation peaked in January and didn’t steadily rise throughout the quarter.

Accordingly, this news, and the news for some months now, suggests that the Fed is expected to remain patient in shifting to a less restrictive monetary policy, with markets adjusting expectations to fewer rate cuts later in the year. Separately and fortunately, home builders are still delivering completed homes despite higher rates, evidenced by new home sales being up 8.8 percent in March.

It’s a big week this week for scheduled economic news, as all eyes will be on the Federal Reserve on Wednesday and the jobs report on Friday. Investors will look for more direction on whether the economy is heating or cooling as well as the Fed’s updated thoughts on inflation. Other highlights this week include the Quarterly Refunding announcement, house prices, consumer confidence, PMIs, ADP employment, construction spending, productivity / unit labor costs, and factory orders. The week gets off to a quiet start with one data point due out later today, the non-market moving Dallas Fed Texas manufacturing for April. We begin the last week of April with Agency MBS prices better .125-.250 from Friday’s close, the 10-year yielding 4.61 after closing Friday at 4.67 percent, and the 2-year at 4.97.

Brokers Wanted

“Mortgage Brokers! 2024 is the year to grow and we want you to join our movement, the #KindMovement! Hear from subject matter experts and leaders about market trends, broker technology, and what’s happening here at Kind and within the mortgage industry. Join us on Friday, May 10th at noon PST (2 CST/3 EST) and hear from our very own Kind Ambassadors, Mary Malloy, EVP of Capital Markets, Mark Russell, CTO and technology visionary, and Delfino Aguilar, Chief Production Officer of TPO. Visit our events page to register and reserve your seat or click here! We hope to see you there!”

Don’t forget that anyone can post a resume for free at www.lendernews.com. Employers can view resumes for several months for the nominal charge of $75.

Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

April 29, 2024 by Brett Tams

It’s no secret that the price tags of single-family homes — the ideal dwelling in terms of space, independence, and resale value — have spiked, and many current homeowners have been reluctant to let go, but a buyer whose heart is set on a single-family home may be able to follow a playbook to find their prize.

Buying a single-family home isn’t dramatically different from purchasing another type of property, but the process has a few variations. Here are some guidelines.

What Is a Single-Family Home?

The definition would seem easy enough, but it does vary according to real estate experts and government sources. The U.S. Census Bureau says single-family homes include fully detached and semi-detached homes, row houses, duplexes, quadruplexes, and townhouses. Each unit has a separate heating system and meter for public utilities, and has no units above or below.

According to other definitions of a single-family home, the building has no shared walls; it stands alone on its own parcel of land. In some places, the number of kitchens the home has informs the definition.

Unlike a multi-family property, a single-family home is meant for one person or household. Among the types of houses out there, including condos, co-ops, townhouses, and manufactured homes, the single-family home remains the holy grail for many Americans.
💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Benefits of Purchasing a Single-Family Home

While condos and townhouses may come with shared amenities and lower maintenance, traditional detached single-family homes come with different perks. When people buy a single-family home, they’re looking for benefits specific to this property type.

Spacious, Quiet, and Intimate

A single-family home is typically larger than a condo or townhome. Moreover, since the property is often on its own lot without shared walls, a single-family home offers more space and more privacy inside and outside the home.

Possibly No HOA

A co-op association or a condo or townhouse homeowners association sets and enforces rules and collects fees to pay for shared amenities. Anyone who buys into an HOA community must live by the CC&Rs: the covenants, conditions, and restrictions. They can be lengthy, and the ongoing fees can constantly rise.

You may be able to buy a detached single-family home with no HOA and paint your mailbox, or house, pink or purple — unless you live in a city like Palm Coast, Florida, that allows only earth tones and light or pastel hues but no colors that are deemed “loud, clashing, or garish.”

Then again, HOAs are becoming more common for detached single-family homes in planned communities. In fact, about 65% of single-family homes built in 2020 were in an HOA, Census Bureau data shows.

Single-Family Home Appreciation

Generally, single-family homes are in higher demand than multi-family or other properties. Because of both the building and demand, when a person buys a single-family home, the value may increase faster.

Possibilities for Renovation and Expansion

When people buy single-family homes, they’re buying into the potential to expand or renovate extensively. If the lot is big enough, single-family homeowners could put an addition on the property.

Single-family homes can be an attractive buy simply because of the option to expand in the future, unlike properties with shared lots or walls.
💡 Quick Tip: Not to be confused with prequalification, preapproval involves a longer application, documentation, and hard credit pulls. Ideally, you want to keep your applications for preapproval to within the same 14- to 45-day period, since many hard credit pulls outside the given time period can adversely affect your credit score, which in turn affects the mortgage terms you’ll be offered.

How to Buy a Single-Family Home

Ready to buy a single-family home? Anyone from a first-time buyer to a seasoned investor may find appeal in a single-family home.

Recommended: First-Time Homebuyers Guide

1. Draw Up Your Financial Priorities

First, it’s important to look at finances. Your credit scores can have a significant impact on getting approved for a mortgage. To get a clear read on credit, but not scores, buyers can request free credit reports from the three major credit bureaus.

Additionally, it can be helpful for a qualified first-time homebuyer — who can be anyone who has not owned a principal residence in three years, some single parents, and others — to look into specialty mortgages to see if they qualify for them.

A loan from the Federal Housing Administration (FHA) may allow a down payment as low as 3.5%. A USDA loan (from the United States Department of Agriculture) requires nothing down, and a VA loan (from the Department of Veterans Affairs) also usually requires nothing down. Some conventional lenders allow qualifying first-time buyers to put just 3% down.

It’s important to know, though, that all FHA loans require an upfront and annual mortgage insurance premium, regardless of the down payment size. VA loans require a one-time “funding fee.” And borrowers with conventional conforming loans who put down less than 20% will pay private mortgage insurance until their loan-to-value ratio drops to 80% and they request removal, or to 78%, when it falls off.

2. Decide on Your Preferred Type of Housing

No two houses are alike, just as no two homebuyers are. Everyone has different tastes and priorities about where they want to call home.

Before hitting every open house in town, consider deciding on must-haves for a single-family detached home, including privacy, proximity to businesses, size, and style. This could help determine if a single-family home is the right fit.

3. Arrive at Your Price Point

Armed with an understanding of the type of house, it’s time to think about the price point. In addition to thinking about the down payment, buyers will want to calculate a monthly mortgage payment and total loan costs.

Figuring out a price point before looking at homes can take the emotion out of the process. That way, buyers have a budget in mind and a “do not exceed” amount before they fall for a home.

4. Search for a Good Real Estate Agent

Buying a single-family home can be fun, stressful, and fast-paced. Working with a trusted real estate agent can make the process a little easier.

To find a real estate agent, you might consider:

• Reaching out to friends for referrals

• Checking out local real estate association websites

• Using an agent selling homes in the area you want to buy in

You might want to interview more than one agent, asking about their experience, availability, and philosophy. The choice of agent will likely come down to a combination of personality match and experience.

5. Find Your Neighborhood

Armed with an agent and budget, it’s time to dive deeper into neighborhoods. Once again, the choice of where to search will come down to the buyer; there’s no one “right” place to buy a single-family home.

As buyers explore neighborhoods, they might prioritize the following:

• School district

• Walkability

• Proximity to workplace

• Community resources

• Budget

An experienced agent can help buyers distill their priorities and even point them in the right direction. Typically, buyers will have to balance the above elements, as it might not be possible to check all the boxes in a single neighborhood.

6. Tour Homes With Your Agent

Once buyers decide what neighborhoods they want to buy a single-family home in, it’s time to start touring properties.

When touring a single-family home with an agent, try to allot between half an hour to an hour. In the case of open houses, prospective buyers can walk in at any time, but private home tours require a buyer’s agent to gain access to the property.

When buying a single-family home, everyone will have their own checklist of what they want, which might include:

• Listing price

• Number of bedrooms and bathrooms

• Storage space

• Floorplan

• Plot of land

• Deck and porch

• Garage and driveway

It could help to take photos or notes while touring a home to refer to them long after you’ve left the property.

7. Choose a House and Bid

Found a place and ready to make an offer? Time to get a home loan in order. Luckily, buyers will have a good idea of what they can offer on a property based on their finances with the upfront legwork.

Your agent can help with negotiating a house price.

How to make an offer? It pays to understand comps and the temperature of the market, and then:

• Figure out the offer price

• Determine fees

• Budget for an earnest money deposit

• Craft contingencies

With an offer drawn up, it’s time to submit it to the seller and wait for the next steps.

8. Review the Process and Get Ready to Move

Buying a single-family home isn’t a done deal once an offer is submitted. Typically there will be a back and forth, perhaps over offer price or contingencies.

Once everything is agreed on, and the inspection is resolved, it’s time to tally moving expenses and pack up.

9. Head to Closing and Move Into Your New Property

The final part of buying a single-family home is closing day. During closing, the buyer and seller meet with their agents to go over paperwork, and settle any outstanding costs, and formally turn over property ownership.

Next, it’s just moving everything in and settling in. Even after closing, homeownership may feel overwhelming, but there are plenty of resources to make it easier.

Ready to Buy a Home Quiz

The Takeaway

Ready to buy a single-family home? The process before you may seem daunting, especially if it’s your first home purchase. But if you break it down to small steps and keep your budget and dream-house priorities top of mind, home sweet home may be closer than you think.

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.

FAQ

How much does it cost to buy a single-family home?

Zillow put the typical value of a single-family home at $354,000 in April 2024. New construction costs more. The median sales price of new houses sold in February 2024 was $400,500, according to the U.S. Census Bureau.

Can you buy a single-family home with no money down?

If a buyer qualifies for a mortgage backed by the Department of Veterans Affairs or Department of Agriculture, or one issued directly by those agencies, they may be able to purchase a home with no down payment.

What are the most important things to consider when buying a house?

Location (including property tax rate, quality of schools, walkability, crime rate, access to green space, and the general vibe), your ability to cover all the costs, duration of your stay, and square footage may be important.

How much should you have in savings to buy a single-family house?

You’ll need to have enough to cover a down payment, closing costs, and moving fees while ideally preserving an emergency fund.

Photo credit: iStock/jhorrocks

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 Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*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.

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.

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.

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

SOHL-Q224-1842723-V1

Source: sofi.com

Apache is functioning normally

April 29, 2024 by Brett Tams

In the heart of Oklahoma’s rolling plains lies Tulsa, a city that resonates with a charm and character all its own. Known as the “Oil Capital of the World,” Tulsa’s history is deeply intertwined with the boom and bust cycles of the oil industry. Whether you’re soaking up the beauty of the Tulsa River Parks, visiting a museum, or enjoying the tunes at a live music venue, Tulsa offers a unique blend of cultural experiences. With all these great qualities, it’s no wonder people are asking themselves, “Should I move to Tulsa?” In this article, we’ll dive into the pros and cons of living in Tulsa to help you figure out if this city’s rhythm matches your own. Let’s explore what makes Tulsa truly special.

Tulsa at a Glance

Walk Score: 39 | Bike Score: 47 | Transit Score: 23

Median Sale Price: $229,000 | Average Rent for 1-Bedroom Apartment: $832

Houses for rent in Tulsa | Apartments for rent in Tulsa | Homes for sale in Tulsa

Pro: Affordable cost of living

Tulsa has a cost of living that’s 12% lower than the national average. Additionally, residents enjoy housing costs that are about $200,000 less than the national average, making homeownership more accessible for many. This affordability extends to everyday expenses, such as groceries and utilities, allowing for a comfortable lifestyle without breaking the bank. The city’s commitment to maintaining affordability ensures that locals can enjoy a high quality of life at a lower cost.

Con: Weather extremes

Tulsa experiences a wide range of weather extremes, from scorching summers to icy winters. The city is also situated in an area known as Tornado Alley, making severe weather events, including tornadoes and hailstorms, a common occurrence. These weather extremes can pose challenges for residents, from the discomfort of high temperatures to the potential dangers and damages caused by severe weather events.

Pro: Exciting cultural scene

Tulsa boasts a plethora of cultural attractions. For example, the city is home to the Philbrook and Gilcrease Museums, which house world-class art collections, and the historic Greenwood District, known as the Black Wall Street. Additionally, Tulsa’s music scene is thriving, with venues like the Cain’s Ballroom hosting a variety of live performances. This rich cultural tapestry provides residents with endless opportunities for entertainment and education.

Con: Public transportation limitations

While Tulsa has made strides in improving its public transportation system, it still faces limitations. With a Transit Score of 23, the city’s public transit options are not as comprehensive or frequent as those in larger metropolitan areas. This can make it challenging for residents without personal vehicles to navigate the city efficiently. This reliance on cars contributes to traffic congestion and can limit accessibility for those who prefer or depend on public transit options.

Pro: Growing job market

Tulsa’s job market is on the rise, with opportunities spanning various industries such as aerospace, finance, and technology. The city has also launched initiatives like the Tulsa Remote program, attracting remote workers with incentives to relocate. These efforts have contributed to a robust job market, offering residents a wide range of employment opportunities and fostering economic growth.

Con: Limited nightlife options

Compared to larger cities, Tulsa’s nightlife options can be somewhat limited. While there are bars, restaurants, and entertainment venues, the variety and scale of nightlife activities may not meet the expectations of those accustomed to the bustling night scenes of bigger cities. This can be a drawback for people seeking a dynamic nightlife without having to travel out of town.

Pro: Green spaces and outdoor activities

Tulsa has an abundance of green spaces and parks, such as the Gathering Place, a world-class riverfront park offering a wide range of outdoor activities. The city’s commitment to outdoor spaces provides locals with ample opportunities for recreation, relaxation, and connecting with nature. Whether it’s hiking, biking, or simply enjoying a picnic, Tulsa’s parks and outdoor amenities enhance the quality of life for its residents.

Con: High allergen levels

For those with allergies, Tulsa’s high allergen levels can be a significant drawback. The city’s location and climate contribute to high pollen counts and other allergens, especially during spring and fall. This can be a considerable concern for individuals sensitive to allergens, potentially impacting their health and daily comfort.

Pro: Unique architectural heritage

Tulsa is renowned for its unique architectural heritage, particularly its collection of Art Deco buildings. This architectural style, prominent in the early 20th century, gives the city a distinctive aesthetic and historical depth. Landmarks like the Boston Avenue Methodist Church and the Philcade Building are just a few examples of Tulsa’s architectural treasures, attracting enthusiasts and contributing to the city’s cultural identity.

Con: Risk of flooding

Located near the Arkansas River, parts of Tulsa are susceptible to flooding, particularly during heavy rain seasons. This risk can affect property values and requires residents to take precautionary measures, such as purchasing flood insurance. While the city has made efforts to improve flood management, the potential for flooding remains a concern for those living in or near flood-prone areas.

Pro: Innovative urban development

Tulsa is at the forefront of innovative urban development, with projects like the Gathering Place Park and the revitalization of the historic Greenwood District. These developments not only enhance the city’s livability and attractiveness but also reflect Tulsa’s commitment to innovation and progress. By investing in urban development, Tulsa is creating a dynamic and sustainable environment for current and future residents.

Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.

Source: rent.com

Apache is functioning normally

April 28, 2024 by Brett Tams

Affectionately known as Indy, Indianapolis is a city that wears many hats, each more fascinating than the last. From the roar of engines at the Indy 500 to the quiet corridors of its renowned museums, the city has something for everyone.

As a place where sports, art, and delicious food intersect, Indianapolis is known for a lot and loved by those lucky enough to buy a home in Indy. As the capital of Indiana, Indianapolis is not just the political center, it’s a hub for growing families, aspiring politicians, and seasoned foodies alike.

Let’s explore ten of the top things that make Indianapolis a standout destination and uncover what the city is really known for.

1. The Indianapolis Colts

Home to the Indianapolis Colts, Lucas Oil Stadium is a cornerstone of the city’s sports scene. Every season, folks don blue and white to cheer on their team. The Colts have been an integral part of the community since relocating from Baltimore in 1984 and have ingrained themselves into the city’s identity.

2. The Indy 500

You can’t talk about the many things Indianapolis is known for without covering the Indianapolis 500. The 500, as it’s often called, is more than just a race; it’s an annual tradition that takes over the city every May. Held at the Indianapolis Motor Speedway, it’s widely considered to be one of the greatest spectacles in racing.

3. Steer-In

The Steer-In restaurant in Eastside Indianapolis is a local treasure, famous for its classic Hoosier pork tenderloin sandwich. This diner has been serving up hearty American fare since the 1960s and became a landmark after being featured on the Food Network. It’s a must-visit for anyone craving authentic Indiana flavor.

4. The Children’s Museum of Indianapolis

As the largest children’s museum in the world, The Children’s Museum of Indianapolis is full of exhibits that educate and excite young minds. From dinosaurs to space travel, the museum’s interactive displays provide fun for the entire family, making it a key reason many people visit Indianapolis.

5. Birthplace of Wonder Bread

Indianapolis claims a unique slice of culinary history as the birthplace of Wonder Bread. Launched in 1921, this iconic brand revolutionized bread production with pre-sliced loaves, making it a staple in American households.

6. Indianapolis Cultural Trail

The Indianapolis Cultural Trail connects the city’s five downtown districts. This urban trail is an ideal path for pedestrians and cyclists, linking neighborhoods, entertainment venues, and restaurants. It’s an innovative example of how the city prioritizes accessibility and recreation.

7. Indianapolis Motor Speedway and Museum

Situated within the famed Indianapolis Motor Speedway, the museum is a haven for motorsports enthusiasts. It houses an extensive collection of race cars and memorabilia, tracing over a century of racing history. The museum is an essential visit for anyone interested in the fascinating evolution of auto racing.

8. Eagle Creek Park

One of the largest city parks in the United States, Eagle Creek Park covers over 3,900 acres of land and water. It supports outdoor activities like hiking, bird watching, and more. The park is a beautiful retreat for nature lovers and those looking to escape the pressures of city life without traveling far.

9. Monument Circle

Monument Circle, located smack-dab in the middle of downtown Indianapolis, is iconic with its towering Soldiers and Sailors Monument. This landmark is a focal point for social gatherings and seasonal events, serving as a scenic backdrop for concerts, festivals, and other community activities.

10. Broad Ripple Village

Broad Ripple Village is Indianapolis’ answer to a lively, bohemian neighborhood, teeming with art galleries, boutiques, and eclectic dining options. This area is particularly popular among younger crowds and the artistically inclined. Its strong nightlife and culture keep the neighborhood buzzing with energy and creativity.

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April 28, 2024 by Brett Tams

Multifamily property has the power to generate cash flow and build wealth. Yet it also has the power to drain you of your free time and become the biggest money pit of your life.

If you’re looking to buy a multifamily property and avoid common headaches, you have your research cut out for you.

What Is a Multifamily Property?

Multifamily property consists of multiple units in a single building. This includes duplexes, triplexes, fourplexes, condominium buildings, student housing, apartment complexes, age-restricted communities, low-income housing, and townhomes. The units in a full multifamily housing property must have separate entrances, kitchens, bathrooms, and utility meters.

Multifamily property investing has declined in the year ending November 2023, due in part to concerns about interest rates, but multifamily properties are still a popular investment vehicle. There’s a reason that individual investors gravitate toward two- to four-unit properties, other than ease of management. Residential loans of 30 years with a fixed rate are available for properties with one to four dwelling units. FHA, VA, and USDA loans are available for those properties if they are owner-occupied.

For five or more units, a commercial loan is required. Commercial loans usually come with a higher down payment requirement, higher interest rate, and a shorter term, meaning significantly higher mortgage payments.
💡 Quick Tip: With SoFi, it takes just minutes to view your rate for a home loan online.

First-time homebuyers can
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Why Buy a Multifamily Property?

Buying a multifamily home can jump-start your own real estate portfolio and investment portfolio. Here’s how.

Recommended: First-Time Homebuyer Guide

Income From Flipping

Multifamily homes can be improved and then resold for a profit, or ”flipped.” Buying a multifamily property, remodeling, and then reselling can be even more profitable than flipping single-family homes because as you remodel, you can increase rents.

Once you increase rents, the property becomes more valuable, both in terms of monthly income, cash flow and overall worth.

The ‘BRRRR’ Method

BRRRR stands for buy, rehab, rent, refinance, repeat. An investor buys a property, renovates it, and rents out the newly refurbished units for more money. After that, they can refinance the property to take out extra cash to buy a new property to renovate.

This method works well with larger multifamily properties because the rehabbing of multiple units can be done while other units that are not being renovated can still bring in some income.

Cash Flow

Multifamily homes were designed for cash flow. Space and amenities are optimized to bring in money for the investor. On the other hand, single-family homes are designed for comfort. The added space of a single-family home may not bring as high of a return as a multifamily property.

Quick Portfolio Expansion

Buying multifamily properties allows investors to acquire multiple units with one transaction, so they may have a favorite in the single-family vs. multifamily comparison. Additionally, investing in multifamily properties can allow an investor to quickly generate income, which could be enough to acquire more properties.

Reduced Risk

A multifamily property lessens risk exposure. When you have single-family homes, vacancies have a bigger effect on your monthly cash flow. With one or more multifamily properties, the risk is spread across a number of properties. In other words, there are units still rented that can help cover the costs of the units that are vacant.

Analyzing the Investment Potential of a Multifamily Property

Investors can use a number of methods to determine if it makes sense to buy a multifamily property or not. Here are some of the most common calculations you can use to make that determination for yourself.

Cash Flow

In real estate investing, cash flow is money that’s generated by the property and money spent on the property. Positive cash flow means income exceeds expenses. You could also call it profit.

Investors have differing amounts that they consider acceptable. Some real estate investors bank on the appreciation of the property instead of the amount of cash flow.

The 1% Rule

The 1% rule states that the gross rents should be 1% or more of the purchase price. The 1% rule is hard to apply in high-income areas where the purchase price of a property is high relative to the rents it generates.

Gross Rent Multiplier

The gross rent multiplier (GRM) is a ratio: the fair market value of a property divided by its gross annual rents. It doesn’t take expenses into consideration and is meant to be a simple calculation to determine if a property is worth exploring further. If you’re comparing two properties for purchase, the one with the lower GRM may be the better investment.

Cash on Cash Return

The cash on cash return is the annual amount earned compared with the amount of cash invested. It’s expressed as a formula: annual net cash flow divided by cash investment. This is helpful for investors who want to know how much cash is brought in by their cash investment each year.

Capitalization Rate

The capitalization rate, or cap rate, is the amount of net operating income divided by the purchase price. This number indicates how long it will take to get back all your money in an investment.

Recommended: What Is Cap Rate and How Do You Calculate It?

Internal Rate of Return

The IRR measures the rate of return over an amount of time. It takes into account both cash flow and expected appreciation.

Recommended: Mortgage Payment Calculator

How to Buy a Multifamily Property

You may be able to use 75% of documented rental income to help finance mortgage interest on your loan. And again, multifamily homes with four or fewer units can be financed more traditionally, while five or more units require a commercial mortgage.

Getting preapproved for a mortgage for your multifamily investment property is one of the best things you can do to get started. After a mortgage officer has examined your finances and greenlighted an amount, you can go shopping for your multifamily investment properties.

Find a Multifamily Home

To narrow your search for a new multifamily property here, you’ll want to decide what it is you’re looking for. Keep a few of these factors in mind:

• Location: Do you have an area that you have expertise in? Are you going to manage the property yourself? These are some questions you’ll want to ask yourself to determine if you can buy a multifamily property near or far.

• Price range: After you’ve looked at where you want to potentially invest, you’ll get a good sense of what properties will cost by looking at real estate listings. Keep in mind that you can count 75% of documented rents toward the purchase price for many loan types, so the price you’ll be looking at will be much different than if you were looking for a single-family home.

• Type of property: Are you looking for a fourplex or an apartment complex? Duplex or 55+ community? There are a lot of choices to make between different property types and whether or not they’ll bring you a profit.

• Profit potential: Are you looking to invest for appreciation or cash flow? Many properties with a lower price tag in the Midwest may be better for cash flow, while properties on the West Coast may appreciate more. Take a look at both and decide on your investment strategy.

• Condition: Do you have the resources and team in place to take on a multifamily property that needs a lot of work? Or would you rather have something turnkey? You’ll want to be sure you know what resources you can commit to the project before you get in over your head.

Choose a Loan

The type of rental property used may determine what type of loan you’re able to get. If this is your first rental, you may want to consider living in one of the units so you can qualify for owner-occupied financing, which usually comes with lower rates and down payment requirements.

Choose a lender that can answer your questions about mortgages.

Make an Offer and Close

Working with a real estate agent, you’ll submit a competitive offer for the property you’ve chosen. Some buyers use cash to make the most competitive offer, while others need financing.

Renovate and Get Ready for Your Tenants

No matter what class of property you buy, the rental units will almost always require some work. Whether it’s a simple clean or a major renovation, these things are both tax-deductible and will improve the value, not to mention rentability, of your property.

Create a Management Plan

To make sure you’re running a business, and it’s not running you, you need to have a solid plan in place for how the rentals will be managed. How are repairs going to be taken care of? What’s your process when a rental turns over? How are you going to keep up with laws and ordinances?

Having a plan helps. Even so, you’ll learn as you go and will need to adjust this plan.
💡 Quick Tip: One answer to rising house prices is a jumbo loan. Apply for a jumbo loan online with SoFi, and you could finance up to $2.5 million with as little as 10% down. Get preapproved and you’ll be prepared to compete in a hot market.

The Takeaway

How to buy a multifamily property? Do your research and choose a property that you’ll have the ability to finance and manage. Investing in rental properties and multifamily investing is not easy, but it can generate cash flow and create family wealth.

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.

FAQ

Is buying a multifamily property a good investment?

Finding a multifamily property that is a good investment will depend on the investor’s analysis of the property. This can include the price, condition, gross rent multiplier, capitalization rate, and a number of other factors that will make renting the units successful.

What are the different kinds of multifamily properties?

• Duplexes, triplexes, fourplexes

• Townhouses

• Apartment buildings

• Condominiums

• Bungalow courts

• Mixed-use buildings

• Student housing

• Age-restricted housing units

• Low-income housing units

What is the best way to finance a multifamily home?

Some would argue that an FHA loan with 3.5% down is one of the best ways to finance a home with up to four units. The owner must live in one of the units to qualify for this type of financing.

Photo credit: iStock/Andrey Sayfutdinov