The so-called “Foreclosure Prevention Act of 2008” introduced by senators Christopher Dodd and Richard Shelby has been fast-tracked by the Senate and could be voted on as early as next week.
The legislation contains a series of provisions to combat the rising foreclosure epidemic in the United States, including FHA reform so borrowers have better access to affordable housing.
“Senator Shelby and I have worked diligently over the past 24 hours to develop legislation that will help provide solutions to the housing crisis which is forcing millions of homeowners into foreclosure, freezing up the liquidity in our markets, and causing a tightening of credit,” said Dodd in a statement on his website.
Included in the bill is FHA modernization that would increase the FHA loan limit permanently from 95 percent to 110 percent of the area median home price, capped at 132 percent of the GSE limit (conforming loan limit), which is currently $550,000.
Additionally, a down payment of 3.5 percent would be required for any FHA loan and counseling requirements would be enhanced to help promote stable homeownership.
A whopping $4 billion would be provided to communities hardest hit by foreclosures and $100 million would be allocated to housing counseling agencies throughout the nation to better connect borrowers with loan servicers.
The bill also includes a standard property tax deduction, enhanced mortgage disclosures, and the controversial extension of net operating loss carry-back (tax break) to homebuilders and other businesses affected by the ongoing mortgage crisis.
Lastly, a tax credit of $7,000 would be offered to those who buy homes already in foreclosure, a measure the senators believe will help buoy flagging property values.
The average American net worth varies due to many factors, with some people making far more than others. If you’re behind the national average, it may seem difficult to catch up, but whether you have bad credit or a lot of debt, you can still begin building your net worth by learning how to generate passive income.
Passive income is a great way to generate more income, pay down your debt, and start saving and investing for your future. Here you’ll learn what passive income is, as well as different ways to make passive income online and offline. With 25 passive income ideas, there is something for everyone.
25 Passive Income Ideas:
Write an E-Book
Start a YouTube Channel
Try Affiliate Marketing
Create a Blog
Sell Stock Photos and Videos
Create an Online Course
Make Sponsored Content
Invest in Dividend Stocks
Invest in REITs
Invest in Index Funds and ETFs
Try Peer-to-Peer Lending
Stake Cryptocurrency
Utilize High-Yield Savings Accounts
Buy Government Bonds
Invest in Art
Buy Property to Rent
Rent Out a Room in Your Home
Buy Domain Names
License Your Music
Design Custom Products
Rent Out Your Vehicle
Use Your Vehicle as Ad Space
Create an App
Flip Unique Items
Rent Out Your Parking Space
What Is Passive Income?
Passive income is a type of income that comes from sources other than your regular employment, and involves a more hands-off approach. Passive income isn’t a “get rich quick” scheme, though some companies make big claims about generating passive income without any work. Passive income does take work to set up, but the goal is that you can make money without managing it on a day-to-day basis.
You’ll generally do most of the work by setting up your source of passive income. While it may require some upkeep every now and then, like updating a product or maintaining a rental property, you’ll earn the majority of your income while pursuing other endeavors.
Like other sources of additional income, passive income is taxable, but when done correctly, you can make enough passive income to surpass your tax bill.
1. Write an E-Book
Whether you’re a writer or not, an e-book can be a fantastic way to generate passive income. We no longer live in a world where publishers are the gatekeepers of books, so you can self-publish a book that can generate passive income. Various websites let you self-publish books, like Amazon’s Kindle Direct Publishing, Apple Books, and Barnes & Noble. Some of these sites also offer print-on-demand services for customers who want physical copies.
You can write a nonfiction book if you’re knowledgeable about a certain subject, or you can write fiction if you have an interesting story idea. Although this can generate passive income, self-publishing can require a bit of an investment. You’ll need to pay for an editor and book cover designer, and you may also want to pay for advertisements. But if you can do the cover art and marketing on your own, you may be able to save some money.
2. Start a YouTube Channel
There are many ways to make money using social media, but YouTube is one of the best ways to make passive income. YouTube pays content creators to run ads on their videos. In order to qualify for the YouTube Partner Program, you’ll need at least 500 subscribers, three new videos within the last 90 days, and 3,000 watch hours within the last year. Previously, you needed 1,000 subscribers and 4,000 watch hours, but the policy was updated in June 2023 with lower requirements.
Like other sources of passive income, making money from YouTube will require an up-front investment of time and money. You need a stable internet connection, camera, microphone, computer, and editing software. You also need to make consistent videos to qualify for the partner program. You can eventually generate passive income by making evergreen videos, because people will watch old videos that bring in revenue—and the more videos you have on your channel, the more money you can make.
3. Try Affiliate Marketing
Affiliate marketing is when you share a link to a product or service, and the company gives you a percentage of any sales made through that link. You can share these links on your social media pages, blog, newsletter, or anywhere else that allows you to post a link. Affiliate marketing is one of the best online passive income opportunities, and you can combine it with any other online method we mention in this article.
One of the most popular affiliate link programs is Amazon Associates. Let’s say you have a YouTube channel where you review electronics, and you make a video reviewing a new TV or laptop. If you link to that product on Amazon with your affiliate link, you’ll receive a percentage of the sale each time someone uses your link.
This isn’t only limited to Amazon, either. Many companies offer affiliate links, so it can be advantageous to reach out to companies for products and services you use regularly to see if they have an affiliate program.
4. Create a Blog
There are a variety of ways to make money from writing a blog. Like YouTube, old blog posts can generate passive income even if people read the post months or years after you wrote it. If you create your own website to host your blog, you can integrate Google Ads and use affiliate links to make money online.
Platforms like Substack combine blogs and newsletters, so every time you write a new post, subscribers receive an email. You can have paid subscriptions on Substack, so users pay a monthly fee to read your posts, and you can have free posts that go out to non-paying subscribers as well.
5. Sell Stock Photos and Videos
If you’re a photographer or videographer, you can earn money for your photos and videos. There are many different websites that buy stock photos and videos, like Shutterstock, iStock, and Getty Images. One thing to consider is that the website gets exclusive rights to your images or videos, but on some sites you can make between 15% and 45% in royalties.
6. Create an Online Course
Many people have expertise in a certain area, and utilizing your knowledge and skills to create an online course is a great way to make passive income online. For example, you can create a course for how to knit, how to take amazing photos, or how to program an app. Websites like Kajabi and Teachable allow you to host and sell your courses.
You may need to invest some time and possibly money in marketing your course to ensure you find the right audience. Some course-hosting platforms like Skillshare also categorize courses by topic for better discoverability.
If you start gaining a following on social media platforms or through a blog, you may get the opportunity to do sponsored content. Companies want to ensure they target the right audience, so if you have followers who may buy their product or service, they’re more likely to sponsor a piece of content. This typically means you discuss their product in a video or write about it in a caption.
In order to generate passive income from a sponsored opportunity, the company will give you an affiliate link. This allows you to make money up front for the sponsored content as well as passive income from anyone who uses your link to buy the product or service.
This route for passive income may take some time because companies typically want people to have a decent following before sponsoring content.
8. Invest in Dividend Stocks
Stocks can be a great way to make money while also investing in your future. When you buy a stock, you buy a small portion of a company. If the stock price rises and you sell it at a higher price, you make a profit, but the stock can also drop in price and lose you money. Some, but not all, stocks offer dividends, which pay investors a dividend per share if the company has a profitable quarter.
When the stock pays out dividends, you can receive the payment directly from your brokerage or reinvest the dividends by buying more of the stock. Like other investments, this can compound and turn into a lot of money over time if the company continues to profit. As you invest in dividend stocks, keep in mind the companies can raise or lower the dividend percentage at any time.
Use MarketBeat’s dividend calculator to look up specific stocks and estimate dividend returns.
9. Invest in REITs
Real estate investment trusts (REITs) are another investment opportunity. Rather than investing directly in a property, you can invest in a REIT, which is a company that owns and manages real estate.
Similar to other investments, there is risk that comes along with investing in REITs. For example, there’s a possibility your REIT investments will lose money if there’s a drop in the housing market.
10. Invest in Index Funds and ETFs
Index funds and exchange-traded funds (ETFs) are some of the safest investments because they offer diversification. Rather than investing in one company, index funds and ETFs allow you to invest in multiple companies simultaneously.
Legendary investor and founder of Vanguard John Bogle was a major advocate for index fund investing. More specifically, he advised people to invest in the S&P 500, an index of the 500 largest companies in the United States. ETFs are slightly different because there are higher fees, but they allow you to invest in a group of stocks for a specific industry. For example, ARKK is an ETF that holds shares for companies that work on innovative technology.
There is still a risk when investing in index funds and ETFs, but they are often lower risk than other forms of stock investing.
11. Try Peer-to-Peer Lending
Another way to make passive income is to become your own type of “bank” by doing peer-to-peer lending, sometimes called P2P lending. Banks make money on loans by charging interest to customers, and P2P lending allows you to do the same thing. Websites like Prosper and Funding Circle allow everyday people to lend and borrow money with various interest rates.
12. Stake Cryptocurrency
Cryptocurrency investing is a highly volatile form of investing, making it especially high risk. Some cryptocurrency platforms allow you to “stake” your crypto, which is when you allow the platform to hold your crypto and lend it to other people. Similar to P2P lending, you make money off the interest.
Cryptocurrency lending and trading is also high risk because there is little to no regulation. Crypto platforms like Voyager have been known to offer extremely high returns and then go bankrupt, preventing them from paying back their users. In extreme cases, there are stories of fraudulent activity from crypto platforms. But if you have a high risk tolerance, this form of investing can be incredibly lucrative.
13. Utilize High-Yield Savings Accounts
A safer way to make passive income is to open up a high-yield savings account, which allows you to make money simply by holding it in your account. Banks use customer funds to lend out money, but unlike crypto staking, bank funds are backed by the U.S. government via the FDIC. This means that if, for some reason the bank doesn’t have the money when you want your funds, the government would provide the bank with the money to pay you up to $250,000.
Many banks and financial institutions offer high-yield savings accounts, with some offering an annual percentage yield (APY) of over 4%. So if you opened an account with a 4.5% APY and deposited $1,000, you would have $1,045 after a year.
People maximize their passive income by not touching this money because it compounds each year. So using that same example, in the second year, you would then earn 4.5% of the $1,045 rather than the original $1,000. And if you add to the savings account each month, you can make quite a bit of money over time.
14. Buy Government Bonds
Perhaps the safest way to earn passive income from investing is to buy government bonds. A government bond is basically a loan to the federal government that pays you back the original amount with interest over a certain period. The reason government bonds are so safe is because the government backs them. When buying a stock, it’s possible to lose your money if the company goes out of business. Bonds are safer because as long as the government exists, you’ll make your money back.
Although government bonds are very low risk, they also offer low returns. Depending on various factors, government bonds may offer a 3–5% return over two to 30 years. To put that into perspective, S&P 500 index fund investing offers an average return rate of over 7.5%[1] .
15. Invest in Art
Similar to stocks, you can also invest in artwork. One way to do this is to buy works of art that you believe will increase in value later. If you’re knowledgeable about art and can find pieces selling for below their value that you can sell later for a profit, you can make a bit of money. Websites like Masterworks allow you to buy shares of artwork with other investors so you take on less risk.
16. Buy Property to Rent
Many people generate passive income by purchasing properties to rent. If you can afford the initial investment of buying a single-family home or condo, you can then rent them out to tenants for a profit. For example, if you buy a house and your mortgage is only $1,000, you can make a profit by charging any amount over your mortgage cost.
In order to take advantage of the passive income aspect of renting, you may benefit from hiring an individual or company to manage the property. Property managers collect the monthly rent and take care of maintenance issues for a fee. Should you decide to invest in rental properties, it’s helpful to factor in the cost of potential home repairs before, during, and after tenants live there.
17. Rent Out a Room in Your Home
If you don’t have the money for a down payment or don’t want to take on the risk of purchasing a rental home, you can always make some extra income by renting out a room. If you have a spare room in your home, you can rent it out for a monthly fee. This is a great option for families whose children recently moved out.
You can use websites like Airbnb and VRBO to connect you with renters. Although many people use Airbnb for short-term rentals during vacations, you can also offer long-term rentals through the website. These sites also let you vet renters before they move in, so you have control over who rents the room.
18. Buy Domain Names
Buying domain names is a sort of investing, so it does come with some risk. People and businesses buy domain names to host their websites, so you can purchase a variety of inexpensive domain names in hopes of people buying them from you later for more. You can typically buy domain names for less than $10 through websites like GoDaddy, but if they don’t sell, you’ll need to pay the annual cost to keep the name.
While this may be a risky investment, people have made a lot of money flipping domain names. It was a big money-maker during the “dot com boom” in the 1990s, Help.com sold for $3 million and NFTs.com sold for $15 million in 2023. Many domains don’t sell for millions, but you may still be able to make a decent profit off domain names in high demand.
19. License Your Music
If you’re a musician, you can license your music in a similar way to selling stock photos and videos. Some websites like Music Vine pay musicians 30% for nonexclusive deals or more for an exclusive license. There are also websites like Epidemic Sound that market to YouTubers and filmmakers by offering a subscription service for royalty-free music.
20. Design Custom Products
For those who are artistically inclined, you can make money creating designs and selling them on websites that sell custom products. Websites like Redbubble, Teespring, and Society6 offer print-on-demand services for your artwork. These websites sell a wide range of products like T-shirts, coffee mugs, phone cases, and more. You get a percentage of the sale every time a customer goes to the website and chooses your design for any of these products
If you have old artwork you created in the past or simply feel like creating in your spare time, you can generate passive income as long as your art is hosted on these types of websites.
21. Rent Out Your Vehicle
Services like Uber and Lyft are popular side hustles, but you can make passive income by renting out your vehicle instead. When people are traveling or have their car in the repair shop, they often need a vehicle to get around. Rather than going to a rental car company, they can rent a vehicle through other websites like Turo or Getaround.
22. Use Your Vehicle as Ad Space
In addition to renting out your vehicle, you can make passive income by using your vehicle as ad space.
Websites like Wrapify connect businesses and drivers, and depending on how much of your car you’re willing to cover with ads, Wrapify will pay you between $181 and $452 per month. There are also sites like FreeCarMedia.com that pay you for wrapping your vehicle or simply advertising on your rear window.
23. Create an App
If you’re a programmer who can create an app, this may be the best way for you to make passive income. Whether it’s a fun game or an app that provides value and convenience, use your creativity and skills to generate income. Apple and Google allow developers to submit their apps, giving you a percentage of the sale each time someone buys the app.
24. Flip Unique Items
One of the oldest ways to generate passive income is to buy unique items, hold them, and sell them at a later date for a profit. If you’re knowledgeable about a certain type of item or are willing to learn, you can make a decent amount of money by buying and holding items.
This is ideal for people who like shopping at thrift stores or going to garage sales. You may find antique toys, memorabilia, sports trading cards, comic books, or other items for a low price that are either worth a lot of money now or will be in the future.
To sell the items or see how much items are selling for, you can use websites like eBay, OfferUp, Craigslist, or Facebook Marketplace.
25. Rent Out Your Parking Space
Some people are willing to pay for a good parking spot. If you have a space you’re not using or don’t mind giving up, you can make money renting it out—especially if you live in an urban area. Websites like SpotHero allow you to list your space.
What’s the Best Source of Passive Income?
The best source of passive income is unique to each individual. There are many options on this list, and some allow you to capitalize on different skill sets. For example, if you have expertise in certain subjects, the best sources of passive income may be online courses and e-books. If you have knowledge about stocks or are willing to learn, investing may be the best option.
When deciding which passive income sources are right for you, it may be beneficial to weigh out the pros, cons, and risks of each one. Remember that many of these options require an initial investment of money and time to get started. Consider your own risk tolerance and financial situation before going all in on any of these methods.
Do You Need Money to Make Passive Income?
While you’ll need money to get started with many passive income ideas, this isn’t the case for every method. For example, if you own a vehicle or have an extra room in your home, you can start renting them out. If you have a computer and internet connection, you have even more options.
Many people who make passive income succeed because they are willing to learn and can invest time into researching these topics. There’s a wealth of information online where you can learn how to excel at specific passive income opportunities like writing an e-book, succeeding as a YouTuber, or using affiliate links.
The Benefits of Multiple Streams of Income
Depending on your specific situation, you may want more than one source of passive income. Whether you’re already in a healthy financial situation or are trying to build your personal wealth and credit score, more income streams means more financial freedom.
The primary benefit of passive income is that you can make money with minimal effort. This means once you get one source of passive income rolling, you can begin adding others so you have multiple income streams that don’t require too much time or attention.
How Passive Income Can Help Improve Your Credit Score
A poor credit score can lead to many challenges—like making it difficult to get approved for new lines of credit, loans, and rental applications—and cost you a lot of money in interest in the long run. Passive income can help you fix your credit by allowing you to pay off your debts. Lenders also look at your total income, so making additional income can help with approvals for new lines of credit, which can also help improve your score. It’s important to know the current state of your credit health. You can get a free credit report card on Credit.com which breaks down your credit score factors and assigns a letter grade for each area, or sign up for our ExtraCredit® subscription for additional credit tools.
Do you want to learn how to make money with a drone? Drones have become more and more popular recently. People use them not just for fun but also for jobs that need pictures and videos from up high. This means there’s a growing opportunity for people to start small businesses to make money with…
Do you want to learn how to make money with a drone?
Drones have become more and more popular recently. People use them not just for fun but also for jobs that need pictures and videos from up high. This means there’s a growing opportunity for people to start small businesses to make money with their drones.
I have had a drone for several years now, and it is so great to be able to take pictures from a different perspective with it. We’ve also used our drone for many purposes – such as inspecting a roof, looking at the top of our mast on our boat (at 68 feet tall, it’s nice to have a drone to check things!), for family pictures, and more.
Whether you fly drones for fun or as a pro, earning money with them can be straightforward. If you have the right knowledge and tools, you can make your hobby pay off and make income.
Below, I will be talking about how to make money with a drone, how to get started, the best drone to make money with, and more.
How To Make Money With A Drone
What is a drone?
A drone, also called an unmanned aerial vehicle (UAV), is a flying machine operated from a distance by a pilot (like you or me) with a remote control (such as your cell phone). Whereas before, helicopters were needed for pictures from high up in the air, drones have made it much easier for the average person to take photos and videos.
Drones are used for many things, like taking amazing pictures from the sky, delivering packages, and inspecting the top of buildings that are high off the ground.
Some popular drone brands like DJI have really good cameras and special features that make them easy to use too.
How much money can you make flying drones?
How much you can earn as a drone pilot depends on how much experience you have, what kind of services you sell, and how much demand there is for those services where you live.
According to Glassdoor, a drone pilot can make around $65,000 a year, with some making well over $100,000 each year.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
13 Ways To Make Money With A Drone
Below are 13 ways to make money with a drone. Whether you want to learn how to make money with drone videos or drone pictures, there are many ideas that you could try.
1. Stock photos
One great way to get started making money with your drone is by selling your drone photos on stock photo sites.
You can make passive income with a drone by taking aerial photos (such as of cities, the outdoors, and so much more) and selling them on stock photo websites such as Shutterstock, Getty Images, and DepositPhotos.
Customers buy stock photos for many different uses, such as on websites, in TV shows, in books, on social media, and in other places.
I buy stock photos all the time for my website and so do millions of other people. They are so nice and helpful to have!
You simply take drone photos, upload them onto a stock photo website (making sure to add relevant keywords), and then the stock photo site does the rest of the work to sell them to customers.
2. Real estate photos
As a drone pilot, you can sell real estate photography services to real estate agents which helps them show the properties that they are trying to sell.
By taking a picture of the property from different angles and heights, real estate agents can show a different view of the real estate that traditional photography can’t provide.
By selling property photography services with your drone, you’re selling a helpful service to real estate companies looking to stand out in a competitive housing market.
More and more homes are being sold with drone photos, and it makes sense – it can really show how great the surrounding area is around a home! Plus, a possible home buyer can see the whole home and property with a drone picture to get a better idea of what the home includes.
3. Building inspection services
Building and roof inspection services are always in high demand, as homeowners and building owners need to look for possible damages or maintenance issues.
Drone operators can inspect roofs and tall buildings safely and quickly with a drone. I personally know a few roof and building inspectors who regularly use drones to help them with their work. Instead of spending a ton of time climbing onto a roof (or going on one that may be dangerous to begin with), they can simply turn on their drone and take pictures in order to get a better idea of what is going on.
After all, drones can go where humans can’t, or at least where it’s risky, time-consuming, or expensive for humans to go.
This is what makes a drone so helpful when it comes to inspecting a building. Drones are so easy to use, and they can take a picture of a hard-to-reach location in just minutes.
Drones are used by others for inspection purposes as well, such as to inspect solar panels by solar installation companies, inspect bridges and wind turbines, as well as inspecting farmlands. A service related to this is that many times utility companies will use drones to inspect their power lines too!
4. Aerial photography and videography
Aerial photography and videography are popular for many different events, such as sports and concerts.
Sporting events and concerts typically pay for drone photos because it helps give them more images of the full picture of the event they are hosting as well as a different perspective. This can help them to sell more tickets in the future and gain more publicity.
5. Instagram
I follow quite a few Instagram accounts that mainly post amazing drone photos from around the world. These content creators are able to make money by building a following and partnering with companies for advertising.
6. YouTube videos
Starting a YouTube channel that shares your drone footage can also earn you income. As you gain subscribers and views, you can earn advertising income and sponsorship deals or paid collaborations.
On your YouTube channel, you may publish videos that include drone videos such as from your travels. Or, you may be teaching others how to use their drone. There are many different avenues you could try.
Recommended reading: How Much Do Twitch Streamers Make?
7. Aerial mapping and surveying
Drones can be used for mapping and surveying tasks, such as creating topographic maps, assessing land for development, and for agricultural inspections.
This is because with a drone you can map out large areas extremely quickly.
I did a quick Google search for the job “aerial mapping drone pilot” and found a lot of different openings too!
8. Drone delivery services
Drone delivery services are a pretty new market, with companies such as Amazon starting to use drones for package delivery.
Sounds pretty crazy, but it is a real thing!
While regulations are still constantly changing, drone delivery services may have some big openings for drone pilots who want to be some of the first.
9. Filmmaking
Drones have completely changed the filmmaking industry by allowing for unique camera angles and movements that were once impossible to achieve (or could only be done before with a helicopter).
Drone pilots can sell services in filmmaking and work on movie sets, TV commercials, and music videos.
10. Hotel photos and ads
Drone photos of hotels and Airbnbs can help to sell more rooms better because customers can see the surrounding area and what the whole building looks like.
This may help a person to see that there is a beach or a mountain nearby, or perhaps that it is close to the center of a city.
11. Wedding photography
More and more couples are wanting drone photography of their wedding. You can sell wedding photography services with your drone, which allows couples to capture their wedding day from different angles.
This could be an add-on if you are already a wedding photographer, or perhaps you can reach out to wedding photographers in your area and sell your services to them as an add-on.
12. Freelance jobs
Drone photographers can use freelance platforms such as Upwork, Fiverr, Droners.io, and PrecisionHawk to sell drone services to clients. By promoting your drone photography portfolio on these sites through creating a profile, you can find freelance jobs and make money.
I did a quick search and you can see examples of drone photographers selling their services on Upwork here to get an idea.
13. Renting drones
If you own multiple drones, you can possibly start renting them out to other drone pilots or people who simply want to take some drone photos.
There are many ways you can rent out your drone, such as to recreational users who want to try out flying a drone, content creators, photographers, researchers, for search and rescue operations, disaster relief, and so many more.
Getting Started With A Drone Business
Starting a drone business can be a great way to make money, especially if you enjoy playing around with drones.
As you read above, drones have been so helpful in many different areas, from real estate to movies, farming, and more.
Starting a drone business is probably simpler than you would think too.
What drone should you buy?
If you want to learn how to make money with a drone, then getting the right drone is helpful. Before buying a drone, think about your budget, the drone’s flight time (how long the drone can fly in the air on a battery charge), your skill level, and the type of services you want to sell.
Some of the best drones to make money with include:
Do you need a license for a drone business?
Yes, if you plan to operate a drone for commercial purposes, you should have a Remote Pilot Certificate from the Federal Aviation Administration (FAA). To get this certificate, you must:
Be at least 16 years old
Be able to read, speak, write, and understand English
Pass an aeronautical knowledge test
Be physically and mentally fit to operate a drone
Complete the FAA’s online application
Once you get your Remote Pilot Certificate, you are required to register your drone with the FAA and you will then get a unique identification number.
You can learn more about how to become a drone pilot on the FAA’s website here.
Do you need insurance to run a drone business?
Having insurance isn’t required by the law, but it’s a good idea to get it for your drone business.
Insurance helps protect you and your clients in case something goes wrong, such as if there is an accident or problems with the drone. Drones can be expensive, so insuring them can help to pay for them in case something happens (for example, you could crash them into a building or lose them in the water).
I have personally lost a drone in the water, and insurance gave me a new one right away, which was very nice.
How much does it cost to start a drone business?
The costs for starting a drone business include:
Drone – $300 to $10,000+
Laptop to edit your photos – $500 to $2,000+
Remote pilot certificate – $175
Drone insurance – $1,000 per year
Other expenses that you may have include a business license, advertising costs, office space, and more.
The amount that you spend to start your drone business will be higher or lower depending on your budget, what kind of drone business you plan on running, and more.
How To Improve Your Drone Skills And Training
Below is how you can become a better drone pilot and get good pictures and videos. Whether you’re a beginner or if you’ve been flying drones for years, the below can help you to improve your business.
Become a skilled pilot
To get really good at flying drones, you need to spend time learning and practicing. Flying a drone is not as simple as it looks – I know because I have had a drone for years, and I have a lot to learn yet. And, I still get nervous when flying it!
If you want to start a drone business, then I recommend taking a drone training course that will teach you everything from basics to advanced skills. There are a lot of features on a drone and it can be overwhelming to learn. A course can speed things up for you.
Also, practicing as much as you can is very helpful, which will help you get better at controlling it. Finding an open space can help you get more comfortable with flying it as well because you won’t be as worried about hitting something with your drone.
This will then help you with the next step – taking photos and videos with your drone.
Video and photography training
Once you’ve learned how to use your drone, the next step is to get better and better at taking pictures and videos with your drone.
You will want to learn as much as you can about your drone’s camera and the different settings that come with it. You should learn how to set up good shots, how to figure out what kind of lighting you need, how to frame pictures and videos, and more.
Here are some tips to improve your video and photography skills with your drone:
Take a course – Sign up for a photography or videography course to improve your knowledge of drone camera settings as well as framing and editing techniques. You can easily find a drone photography course online, such as on Udemy.
Practice regularly – The more you take videos and photographs with your drone, the better you will be.
Learn from others – I recommend joining online forums or drone pilot Facebook groups to talk with other drone photographers. This can help you to learn new tips that you may not have thought of.
If you get better at flying and taking good pictures or videos with your drone, you can start earning money. Of course, it will take time and lots of practice, though!
Frequently Asked Questions About How To Make Money With A Drone
Below are answers to common questions about how to make money with a drone.
Can I sell my drone photos?
Yes, you can sell your drone photos either part-time or even full-time. Many drone photographers earn money by selling their drone photos to people such as real estate agents, advertising companies, and more.
Are drone pilots in demand?
Drone pilots are in demand as drone technology has become easier to use and more affordable. Industries such as agriculture, construction, marketing, and even emergency response use drones for many different purposes.
Can you make good money with a drone? Is a drone business profitable?
Yes, you can make good money with a drone! You can make up to $200 an hour, and the average pay is around $65,000 per year. Profitability depends on factors such as your target customer and the services you sell.
What are the best drone pilot jobs for earning money?
Some of the best drone pilot jobs for making money include aerial footage, real estate photography, mapping and surveying, building inspection, and selling drone photos as a content creator (such as Instagram).
What freelance opportunities are available for drone pilots?
Some freelance jobs for drone pilots include aerial photography, land surveying, and inspecting buildings. You can sell your services through your website, social media, and online job marketplaces such as Upwork, Zeitview (formally known as DroneBase), and FlyGuys.
Is obtaining a Part 107 drone license necessary to earn with a drone? Can you make money with a drone without a license?
If you want to use your drone for a job in the United States, you’ll need a Part 107 license (this is informally known as the commercial drone license). It shows you know how to use your drone safely and follow the rules. Plus, some clients might ask you to have this license before they hire you too. If you are caught selling drone photography without a license, then you could face a fine of $1,100 from the FAA.
What DJI drones are recommended for making money?
Some DJI drones to look into include DJI Air 2S, DJI Mavic 3 Pro, and the DJI Mini 3.
What are the opportunities in drone training and consultation?
As more people use drones, there will be more need for drone training and advice. If you know a lot about drones, you can teach others or help businesses use drones in their work. This can be a good way to make money as well.
How To Make Money With A Drone – Summary
I hope you enjoyed this article on how to make money with a drone.
As you can see, there are many different ways to make money with a drone, such as:
Stock photos
Real estate photos
Building inspection services
Aerial photography
Instagram content
YouTube videos
Aerial mapping and surveying
Drone delivery services
Filmmaking
Hotel photos and ads
Wedding photography
Freelance jobs
Renting drones
Do you want to learn how to make money with a drone?
It’s time to check out “Toll Brothers Mortgage,” which is a subsidiary of home builder Toll Brothers.
Toll Brothers is one of the largest home builders in the United States, priding itself on being a luxury home builder.
Instead of relying on third-party lenders to provide financing to their customers, they have a built-in financing division.
This allows them to oversee the process firsthand and navigate the complexities of new construction financing.
They say they’ve got a proven track record of smooth closings, and if they can offer you a mortgage rate the other guys can’t, they could be worth looking into.
Toll Brothers Mortgage Fast Facts
Direct-to-consumer retail mortgage lender
Provides new construction lending and home purchase loans
Parent company is nation’s 5th largest home builder
Founded in 1967, headquartered in Fort Washington, PA
Licensed to do business in 24 states nationwide and D.C.
Funded nearly $2 billion in home loans last year
Most active in California, Pennsylvania, and Texas
Offers mortgage rate specials to Toll Brothers customers
Also operates a full-service title and insurance company
As noted, Toll Brothers is a major home builder, the fifth largest at last glance, behind only D.R. Horton, Lennar, Pulte, and NVR.
They are a publicly-traded company (NYSE:TOL) and are currently valued at around $9 billion.
The company was founded in 1967 and refers to itself as the nation’s leading builder of luxury homes.
This includes both new construction homes and quick move-in homes. The company’s dedicated mortgage division is known as Toll Brothers Mortgage Company, or TBI Mortgage for short.
They exist solely to serve Toll Brothers customers who need to finance their new home purchases, and have about 77 loan officers on staff, per the NMLS.
In 2022, the company funded a healthy $2 billion in home loans, with 20% of volume coming from the states of California and Texas, and another 9% from Pennsylvania.
The company also did a lot of business in Arizona, Colorado, Florida, Idaho, Nevada, and Virginia.
They are licensed to lend in Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington.
Those purchasing a Toll Brothers home can also take advantage of in-house title, escrow, and insurance services via Toll Brothers Insurance Agency.
How to Get Started
To begin, you can visit a new home sales office or simply check out their website.
If you go online, they have a contact form and a loan officer directory that lists individual employees by state.
They can provide loan pricing and answer mortgage questions you might have about the loan process.
If you’re ready to proceed, they’ll ask you to complete a mortgage pre-qualification questionnaire and create a secure Toll Brothers account.
Within 14 days of signing a home purchase agreement, you’ll be asked to submit the loan application and upload required documents.
Their digital loan application is powered by ICE (formerly Ellie Mae). It allows borrowers to start the process from any device and complete most tasks electronically.
This includes linking accounts like pay stubs, tax returns, bank statements, along with eSigning necessary disclosures.
If approved, they’ll provide you with a loan commitment, as well as conditions needed to fund your loan.
Importantly, the loan approvals are valid through the completion of your home. And are integrated with Toll Brothers to sync with the builder process.
Since building a new construction home can take up to 12 months, their loan process may have longer timelines than a typical existing home purchase.
But they also offer quick move-in properties, in which case the process will likely only be 30 to 45 days.
Loan Programs Offered
Home purchase loans
Conventional loans backed by Fannie Mae and Freddie Mac
FHA loans
VA loans
Fixed-rate mortgages: terms ranging from 10 to 30 years
Adjustable-rate mortgages: initial fixed terms of 3, 5, 7, 10, or 15 years
Available on primary residences, second homes, and investment properties
While Toll Brothers Mortgage only offers home purchase loans (no mortgage refinances), they have a decent loan menu.
This includes all the usual offerings such as conforming loans backed by Fannie/Freddie, jumbo loans, FHA loans, and VA loans.
The only loan programs they appear to be missing are USDA loans and second mortgages, though these aren’t widely used by home buyers these days.
They’ve got a good selection of both fixed-rate mortgages and adjustable-rate mortgages, including a 10-year fixed and 15-year fixed.
With regard to the adjustable-rate loans, they’ve got the 5/6 ARM, 7/6 ARM, and even an ARM with an initial fixed term of 15 years.
And you can get an ARM if taking out an FHA loan or VA loan, which is less common.
So there’s no shortage of loan programs, and they finance primary residences, second homes and investment properties.
Toll Brothers Mortgage Rates and Fees
Like other mortgage lenders, they do not have a page dedicated to mortgage rates, nor are they publicized elsewhere.
Instead, they simply say they offer “competitive rates,” which obviously doesn’t give us a lot to go on.
However, they offer personalized financing packages and there’s a good chance they’ve got some special financing offers unique to home builders.
If you browse the Toll Brothers main website, you might see specials for certain communities.
I came across an exclusive offer of 5.99% on a 30-year fixed while rates are closer to 7.5% at the moment.
Lately, the captive mortgage lenders of home builders have been hard to beat, thanks to their big temporary and permanent mortgage rate buydowns.
Many are offering rates well below market if you buy certain homes by a specific date.
But always take the time to compare their rates and fees to outside lenders as well. You’ll never know what else is out there if you don’t put in the time to look.
LockSolid Rate Protection program
Since the home building process can take time, Toll Brothers Mortgage offers a special mortgage rate program called “LockSolid Rate Protection.”
Since It allows home buyers to lock in a mortgage rate for up to 345 days, with no cost until loan closing.
The up-front lock deposit is advanced by Toll Brothers, giving buyers peace of mind in an uncertain mortgage rate environment.
Additionally, a float down option is available on many programs. So if rates happen to fall below the rate you locked in within 30 – 45 days of closing, they can re-lock your loan at a better price.
The program is available on both fixed- and adjustable-rate mortgages offered by the company.
Just keep in mind that it doesn’t always make sense to lock in a rate well ahead of time. If you have an extended time horizon, floating your mortgage rate can provide more opportunities.
It’s also generally cheaper to lock in a rate with a shorter lock period.
Toll Brothers Mortgage Reviews
There aren’t a ton of reviews for Toll Brothers Mortgage specifically, though I did come across some.
Over at Zillow, they have a pretty poor 1.36/5-star rating from about a dozen reviews. Not a big sample size, but not glowing reviews either.
Similarly, they have a 1.8/5 from another dozen mortgage reviews on Google for their Fort Washington, PA headquarters.
They have a 5-star rating on Redfin, but it’s only from three reviews. Meanwhile, their parent company has a 1.12/5 rating on the Better Business Bureau (BBB) website from 85 reviews.
However, the company maintains an ‘A+’ rating based on customer complaint history, so they appear to handle issues that come up appropriately.
Take the time to read the customer reviews and complaints to see what the common issues are, and how you might be able to avoid them.
At the end of the day, using the builder’s lender can make sense if they offer a below-market mortgage rate.
There’s also the perception that they’re in better sync with the builder as the companies operate under the same parent.
But based on the complaints, this isn’t always the case. So be sure to shop around and get quotes from other mortgage companies and some independent mortgage brokers too.
Even if you do decide to use Toll Brothers Mortgage, you can use those other quotes to negotiate a better deal.
Toll Brothers Mortgage Pros and Cons
The Good Stuff
Can apply for a home loan online
Offer a digital, mostly paperless application powered by ICE
Loan approvals good through completion of your home
May offer special financing incentives to Toll Brothers customers
Lots of loan programs to choose from including ARMs
LockSolid Rate Protection program
A+ BBB rating
Mortgage glossary and mortgage calculator online
The Maybe Not
Only licensed in a handful of states where they build homes
Treasury Secretary Henry Paulson today unveiled a 218-page plan aimed at revamping the financial framework of the U.S. economy to promote economic growth and stability.
The so-called “Blueprint for a Modernized Financial Regulatory Structure” proposes a series of sweeping changes, including “short term” and “intermediate term” recommendations to improve and reform the U.S. regulatory structure.
“The current regulatory framework for financial institutions is based on a structure that has been largely knit together over the past 75 years,” Paulson said in a statement. “It has evolved in an accretive way in response to problems without any real focus on overall mission.”
Immediate recommendations include modernization of the President’s Working Group to better facilitate inter-agency communication, as well as the expansion of the membership to include the OCC, OTS, and FDIC.
Additionally, Paulson suggested that liquidity provisioning by the Federal Reserve to non-depository banks via the discount window be “calibrated and transparent”.
“The disruptions in credit markets in 2007 and 2008 have required the Federal Reserve to address some of the fundamental issues associated with the discount window and the overall provision of liquidity to the financial system.”
In regard to mortgage, Paulson noted that the ongoing mortgage crisis has revealed the need for improved regulation and oversight of the mortgage industry.
“The high levels of delinquencies, defaults, and foreclosures among subprime borrowers in 2007 and 2008 have highlighted gaps in the U.S. oversight system for mortgage origination.”
“In recent years mortgage brokers and lenders with no federal supervision originated a substantial portion of all mortgages and over 50 percent of subprime mortgages in the United States. These mortgage originators are subject to uneven degrees of state level oversight (and in some cases limited or no oversight).”
To combat the mortgage crisis, Paulson said a new federal commission coined the “Mortgage Origination Commission” or “MOC” should be created which would establish “uniform minimum licensing qualification standards for state mortgage market participants.”
This would include personal conduct and disciplinary history, educational requirements, testing procedures, and license revocation standards.
The Treasury also recommended that the Federal Reserve continue to write mortgage lending laws like the Truth in Lending Act and that such laws should be “clarified and enhanced” to better govern mortgage transactions by independent mortgage originators.
Longer-term solutions include a transition from the Thrift Charter to a national bank charter, the merging of the OTS and the OCC, the creation of a federal charter for payment and settlement systems and an optional Federal Charter for Insurance, and the merging of the SEC and Commodity Futures Trading Commission.
“This will not be a small or easy effort — transformative efforts rarely are. But this is a subject we must debate, and ultimately address, for our long-term economic growth and prosperity,” Paulson said in a statement on his website.
MBA advocated for action in three key areas: the reauthorization of the NFIP, assured access to property insurance, and reforms to the FHA-Insured multifamily program. Reauthorization of the NFIP As new NFIP policies cannot be issued during a lapse in authorization, MBA stressed the necessity of a longer-term authorization to provide stability and certainty for … [Read more…]
Is there such a thing as a 1 percent down mortgage? In other words, can you really make a 1-percent down payment when you buy a home? Well, you may be able to if you have a modest income and a 620 credit score.
But such mortgages are in their infancy. And only three lenders currently offer them. However, if they prove a success, others will likely join in and some of those may have easier eligibility rules. Already, one innovator is offering such a loan free of mortgage insurance.
Verify your home buying eligibility. Start here
In this article (Skip to …)
What is a 1 percent down mortgage?
The clue’s in the name. With one of these, you really do have to make only a 1 percent down payment when you buy a home.
The first 1 percent down mortgage was introduced as recently as April 2023. So, you can expect them to evolve quite quickly.
Undoubtedly, many mortgage lenders are watching how this innovation works out for the pioneers and their borrowers. If they like what they see, 1 percent down mortgages could become widely available mortgage programs.
Check your home buying options. Start here
How does one of these mortgages work?
The mechanics couldn’t be more straightforward. As long as you’re eligible, you bring 1% of the home’s purchase price to the closing. And the lender brings the other 2% as a gift. That’s a no-strings grant, which never has to be repaid.
Check your home buying options. Start here
In fact, it’s even better than that. Because, if you have a 3% down payment, the lender may still give you the 2% grant, taking your down payment to 5%. Just note that 5% seems to be the maximum under these programs.
Another thing to bear in mind is that a lender might have a cap on the grant it will provide. For example, UWM says it won’t chip in more than $4,000 in total.
Finally, be sure to study your mortgage quote (loan estimate) carefully. Because 1 percent down mortgages are still so rare, we haven’t been able to assess how competitive their interest rates and closing costs are compared with other home loans. So, it’s down to you to make sure you get a great deal.
Qualifying for a 1 percent down mortgage
There are two main qualifying hurdles for you to clear in order to be eligible for one of these loans. The first is straightforward: You need a FICO credit score of 620 or higher.
The second is a bit more complicated. It concerns something we mentioned earlier: a modest income.
But what does that even mean? Well, luckily, there’s a definition for these loans. It states that your income must be at or below 80% of the area median income (AMI) where you’re planning to buy.
Still unclear? You’re not alone. You can use a lookup tool on Fannie Mae’s website to check that AMI for your area. Multiply that by 80% (or .8 on a calculator). If your income is the same or lower, you can go ahead and apply. But, if it’s higher, you’re out of luck. Check out the other low down payment mortgages we mention below.
Rocket Mortgage gives an example of AMI in action: “You can’t qualify if you make higher than 80% of the median income in the area in which you’re looking to buy. For example, if you live in Macomb County, Michigan, the area median income is $90,800. You can’t use [earn] more than $72,640 to qualify for this ($90,800 ×.8 = $72,640).
UWM says its other qualifying criteria are the same as those for Freddie Mac’s Home Possible® or Fannie Mae’s HomeReady® loans. And we shouldn’t be surprised if other lenders have the same requirements. You may also find lenders restricting these mortgages to single-unit family homes for owner occupation.
Pros and cons of a 1 percent down mortgage
The 1 percent down mortgages can offer an enticing path to homeownership with minimal upfront costs, but they also have their pros and cons to consider.
Check your home buying options. Start here
The pros of these mortgages are apparent:
The lender gifts you 2% of the purchase price
First-time homebuyers can achieve their homeownership dreams more quickly than if they had to save up a 3% or 3.5% down payment
Your savings can be used for what you want: closing costs, furniture, and other financial goals.
The cons are:
Not everyone is eligible for this loan product
You need to be sure you’re getting a competitive deal overall
Your risk of spending some time with your home “underwater” (when your home’s value is less than your mortgage balance) is higher
It’s worth expanding on that last point. Having an underwater mortgage loan can trap you in your home. You can’t easily sell or refinance because you can’t “redeem” (fully pay back) your existing mortgage loan.
This doesn’t usually matter if you want to stay put anyway. In the past, average home values have typically recovered (and then some) fairly quickly. But, if you absolutely need to move during that underwater time, you can feel trapped. One escape route may be to rent out the home.
Lenders that offer a 1 percent down mortgage
At the time of writing this article, only three lenders offered these mortgages. Those are:
Check your home buying options. Start here
Rocket Mortgage
The Rocket Mortgage 1 percent down product is called ONE+ loan. And it is the one that charges no mortgage insurance. On a $250,000 mortgage, Rocket reckons that could save you $245 every month for an average of seven years. That’s more than $20,000 in total.
Rocket doesn’t specify a cap on its down payment grant but quotes an example of $6,000. So it’s more generous than UWM’s $4,000 cap.
Rocket Mortgage used to be called Quicken Loans and says it is America’s largest mortgage lender. It came top in the 2022 J.D. Power U.S. Mortgage Origination Satisfaction Study.
United Wholesale Mortgage (UWM)
Like Rocket, UWM says it’s “the #1 overall mortgage lender and purchase lender in the nation.” While they can’t both be No. 1, there are probably different data sources and ways of interpreting the numbers.
Borrowers can’t approach UWM directly. It operates through its partners, which are mortgage brokers, correspondents and financial institutions. So, you should ask brokers whether they can help get you a UWM Conventional 1% Down loan.
Zillow
The latest lender to offer 1 percent down mortgages is Zillow Home Loans, which launched its program in August 2023. At that point, its offering was available only in Arizona. But it said it planned to expand to other states.
In its launch press release, it is light on the details of its eligibility criteria for these mortgage loans and we are assuming that its income and credit score requirements are the same as the others.
Zillow expands on one of the benefits of its new home loans: “… by reducing the down payment loan amount to 1% of the purchase price, a home buyer looking to purchase a $275,000 home in Phoenix, Arizona, who makes 80% of their area’s median income and saves 5% of their income would need only 11 months to save for the down payment. By comparison, the same buyer who needed to save 3% of the purchase price would require two and half years (31 months) to save that amount.”
With Zillow offering 1 percent down mortgages now, it will be interesting to see how other lenders respond.
Other low down payment mortgage options
A few lucky people can qualify for a 0% down mortgage. And they might not be inclined to make even a 1% down payment.
Verify your home buying eligibility. Start here
Those are the people who are eligible for:
VA loans — You must be a veteran or service member or someone in a tightly defined and closely associated group. Surviving spouses are one example
USDA loans — You must adhere to income limits and be buying in a place designated as rural by the U.S. Department of Agriculture
If you can’t get one of those, you may be able to get a loan with a 3% down payment. Choose between Freddie Mac’s Home Possible® or Fannie Mae’s HomeReady® loans. But you’ll need a 620 credit score to qualify.
If your score is between 580 and 619, you could apply for an FHA loan. These come with a 3.5% down payment. However, if you have time, there are mortgage insurance advantages if you drive your score up to 620 and go for a Fannie or Freddie loan.
The bottom line
A 1 percent down mortgage could provide an exciting opportunity for those on modest incomes who wish to become homeowners. Your lender gifts you 2% of the home’s purchase price so that your total down payment on closing is 3%.
Providing you qualify in other ways puts you in line for a conforming loan, which meets Fannie Mae or Freddie Mac’s rules. And that provides real advantages for your mortgage insurance costs over an FHA loan.
Indeed, Rocket Mortgage says it won’t charge any mortgage insurance on its 1 percent down mortgage, which might save you $20,000+ compared to a standard Fannie or Freddie loan.
So, for those who can get them, these new mortgages can be great. Just be sure to check that your overall deal is competitive.
Time to make a move? Let us find the right mortgage for you
1 percent down mortgage FAQ
Can you put down 1% on a house?
Yes, if your income, credit score, and other circumstances meet the qualifying criteria for a 1 percent down mortgage. You could also do so if you’re eligible for a 0% down loan and choose to make a down payment, which might earn you a lower mortgage rate.
How does a 1 percent down mortgage work?
You put down 1% and your lender gives you a 2% grant, making a 3% down payment. That’s the minimum for a conforming loan from Fannie or Freddie and those typically offer attractive deals.
How do you get a 1% down mortgage?
If you think you’re eligible, apply on Rocket’s website, contact Zillow (Arizona only at the time of writing), or ask mortgage brokers about UWM’s product. Other lenders may begin offering these products soon so watch out for those.
Mortgage rates finally caught a break last week after steadily rising throughout much of 2023.
The 30-year fixed fell about a half a percentage point in the matter of a week as softer economic data eased inflation concerns.
At the same time, the Fed left its key policy rate unchanged and signaled it could be done raising rates.
Now, investors are hoping the next policy move is a rate cut, as data is expected to continue to cool into 2024.
Taken together, that could mean a return to more palatable mortgage rates in 2024.
Lower Mortgage Rates Before the Presidential Election?
The president and CEO of the nation’s top mortgage lender, United Wholesale Mortgage (UWM), is bullish on mortgage rates next year.
During his monthly 3Points video, former college basketball player Mat Ishbia said he expects mortgage rates to drop before the election.
The election in question is the 2024 Presidential Election, which takes place on Tuesday November 5th, 2024.
“And I think it might even happen sooner like March, April, May,” he said in the video.
But how much lower will rates fall? Well, that’s another story, as a return to 3% mortgage rates likely isn’t in the cards.
Same goes for 4% rates, and maybe even 5% rates. However, that doesn’t mean smaller improvements can’t be impactful for the struggling mortgage industry.
“We’re talking about dropping to 5 and a half, 6, even 6 and a half,” he added. “And it’ll be a massive refi opportunity.”
It’s possible we’ll see a return of rate and term refinances if mortgage rates drop enough relative to the rates obtained by home buyers over the past year and change.
Assuming some of these borrowers took out high-7 or even 8% mortgage rates, there might be a case to be made if rates return to the low 6%s or high 5%s.
Generally, you want at least a 1% reduction in mortgage rate, though there isn’t a hard and fast refinance rule of thumb.
Lower Mortgage Rates Will Also Unlock Existing Housing Inventory
Ishbia also noted that beyond the refinance opportunity, there will be more inventory next year as interest rates fall.
“But beyond that, even more purchases, more inventory will open up.”
This speaks to the mortgage rate lock-in effect that has stifled the existing home market.
In short, homeowners with 3% mortgage rates have their hands tied, as moving to a new home at current prices with a 7 or 8% rate just doesn’t pencil.
But if rates come down to more reasonable levels, some of these homeowners will be financially able to sell and move, or will simply be OK with taking on a higher payment.
Rates aside, he believes home purchase lending volume will increase, referencing a recent Fannie Mae forecast.
Fannie expects 2024 home purchase loan origination volume to increase 10% to $1.44 trillion.
Meanwhile, they believe mortgage refinance volume will rebound to $456 million, nearly double the dismal $250 million anticipated for this year.
The refinance share is also expected to rise from around 16% this year to 24% next year.
There Is No Mortgage Rate Rescue Plan Coming…
Lastly, he dispelled the idea that some sort of mortgage rate rescue plan was going to materialize.
“That’s not going to happen.” We think the market is what the market is and that we’re going to see things happen as we’ve expected.”
About a month ago, industry groups including NAR and the Community Home Lenders of America lobbied Treasury Secretary Janet Yellen and Fed Chairman Jerome Powell.
They pointed out that mortgage rate spreads relative to the 10-year treasury yield had doubled in recent months.
Typically about 170 basis points, they have exceeded 300 bps for a while now, putting even more pressure on mortgage rates.
In a letter, the groups proposed a plan to allow Fannie Mae and Freddie Mac, on a temporary basis, to purchase their own mortgage-backed securities (MBS).
And/or purchase Ginnie Mae MBS (those backing FHA and VA loans) for a defined period of time.
Additionally, they called on the Federal Reserve to maintain its stable of MBS and suspend runoff until spreads normalized.
It seemed to fall flat as it would completely contradict recent action by the Fed to tackle inflation, which arguably was caused by an overly accommodative rate environment.
In a nutshell, the ultra-low mortgage rates were how we got into this mess to begin with, so lowering them again may actually do more harm than good.
Sure, there’s a happy medium in between 8% mortgage rates an 3% mortgage rates, and the hope is we’ll get back there in the next year or two.
But if rates come down too quickly, or fall too low, you’ve got the bidding wars again, unhealthy demand, and so on. That’s not good for anybody long-term.
Late last week, Congress agreed to reinstate the temporarily inflated FHA loan limits that fell on October 1.
So for the next two years, homeowners in high-cost regions of the country will be able to take out FHA loans for amounts up to $729,750, as opposed to the $625,500 cap that previously applied.
While this may sound like a win for the badly bruised housing market, a recent study suggested otherwise.
Back in July, a pair of George Washington University researchers claimed that higher FHA loan limits would do little to positively affect housing.
In fact, they noted that the FHA loan limit could be slashed in half and still serve 95 percent of its historic target market.
But we all know times have changed, and the FHA’s target market isn’t the underserved, low-income borrowers of times past.
These days, it’s anyone who doesn’t want to come up with a large down payment to purchase a home.
Thanks to their flagship 3.5% down loan program, the FHA’s market share has risen to about 30 percent of total loan origination volume, putting pressure on capital reserves and increasing the likelihood of a taxpayer bailout down the road.
All this at a time when we’re supposed to be shrugging off government support and bringing private capital back into the mix. Hmm.
For the record, those researchers feel the FHA should hold at most a nine to 15 percent share of the mortgage market and lower the max loan limit to a mere $363,000.
Fannie and Freddie Still Capped at $625,500
Meanwhile, the conforming loan limit for mortgages backed by Fannie Mae and Freddie Mac is staying put at a lower $625,500, likely because any more risk thrown their way would be considered unacceptable.
This is a blow for those in high-cost regions of the United States looking to avoid jumbo loan financing and the higher mortgage rates that typically come with it.
Why? Well, most homeowners seeking a loan over $625,500 probably won’t want an FHA loan either because of the cost of mortgage insurance. This is one of the disadvantages to an FHA loan.
So they may either opt to either bring in more cash to drop the loan amount below the conforming loan limit, take out a combo loan, or bite the bullet and go with a jumbo loan if they can find one.
The upside is that it’s generally much easier to qualify for an FHA loan than a jumbo. But it’s still bittersweet news for most I’m sure.
And it makes you wonder why interested parties, such as realtor and home builder groups, pushed for the increased limits.
It doesn’t sound like it’ll have much of a meaningful effect. Perhaps a more important measure would be restoring jumbo loan financing and other private capital to the housing market.
But asking the government to do that doesn’t really make sense. It needs to happen organically with less government involvement, and at the moment, it’s not looking very likely.
If your loan amount is anywhere close to these limits, do your best to stay at or below them to receive the most favorable pricing and the widest array of financing options.
About one in seven Americans has unclaimed funds lurking somewhere. In fact, there’s an estimated $70 billion in unclaimed assets in the United States. Typically, the amounts people receive when retrieving this money can be small (say, $20) or, in rare cases, it can be a significant amount of six figures or higher.
States typically manage these funds, which can come from forgotten bank accounts, pensions, insurance benefits, wages, savings bonds, and other sources.
If you’re wondering whether there’s any money out there that belongs to you, read on. This guide will walk you through where unclaimed money may be hiding and how to claim it.
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How to Find Unclaimed Money 5 Ways
Money usually remains unclaimed because owners have no idea it exists. That’s why it may be worth searching for unclaimed funds in your name just in case. So how do you go about it? Unfortunately, there’s no single place you can look for all potential unclaimed cash. It may take some work, but here are some steps you can take to help make sure you’re claiming everything that’s yours.
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1. Searching State Databases
A good first step may be to hunt for unclaimed funds at the state level. Each state has an office that oversees unclaimed property, typically housed in the state treasurer’s, controller’s, or comptroller’s office. You can link to your state by visiting the website unclaimed.org, which is run by the National Association of Unclaimed Property Administrators.
Don’t forget to search your name in the database of each state where you have lived, not just the one where you live now. Make sure that you are searching the official state site (it should have .gov in the URL) to avoid scams. If you are married and changed your name, you may want to consider searching under your maiden name too.
You can continue your search by checking MissingMoney.com, which offers a multi-state database endorsed by the National Association of Unclaimed Property Administrators.
All of these searches are free to complete. If someone asks you for money to complete a search, that’s a red flag. There’s no reason to pay to access money that’s yours, unless there is a small processing fee.
If you happen to find unclaimed property, each state has its own process for proving that you’re the true owner and getting your hands on the cash. Many states allow you to file a claim electronically.
Usually you need to provide some kind of official documents to prove that you’re the person named as the owner. Luckily, there is typically no time limit for claiming the money. If the owner has died, you can often claim funds from a deceased relative. You can typically file a claim if you’re an heir, trustee, or executor of the estate.
2. Looking for Unpaid Wages and Pensions
Here’s another possibility in terms of how to find unclaimed funds: Hunt for back pay. If your employer owes you back wages, you can search the Department of Labor’s database. Start by inputting the name of the employer. You typically have to move quickly in this case, since the agency only keeps unpaid wages for three years.
You can also look for pensions from a former employer. Pension funds may be unclaimed if a company closed its doors or ended a particular pension plan. You can look for funds through the website of the Pension Benefit Guaranty Corporation, which is a government agency.
3. Checking for Unclaimed Tax Refunds
If you think you may have failed to receive a tax refund at some point, you can track that down through the Internal Revenue Service’s website. Keep in mind that you will need to know the exact refund amount in order to conduct the search.
4. Searching for Insurance Funds
Many insurance companies transfer unclaimed funds to states, but a couple of federal government agencies maintain their own unclaimed funds databases. The U.S. Department of Veterans Affairs holds onto unclaimed VA life insurance funds for most policyholders and, if they’re deceased, their beneficiaries.
People who had mortgages insured by the Federal Housing Administration can check for potential unclaimed refunds on the website of the U.S. Department of Housing and Urban Development.
5. Finding Savings Bonds
Another potential place to find unclaimed funds could be in forgotten or lost savings bonds. To check whether you have a bond that has reached maturity, check the government’s website Treasury Hunt. You’ll be prompted to enter your Social Security number and your state.
The site also offers advice on finding lost, destroyed, or stolen savings bonds.
• FDIC and Closed Banks You may also want to see if you have any money that is in a lost bank account or one that was held at a now-closed bank. It’s a very rare occurrence, but bank failures do occasionally happen. If you believe you had funds in one that you never received, you can contact the FDIC Claims Depositor Services at 888-206-4662, option 2.
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Being Aware of Scams
Where there’s free money, there are bound to be con artists trying to take advantage of it. Some companies may offer to help you find unclaimed funds and recover the money for a percentage of the amount owed you. Be cautious: These can be scams. Paying these fees is pointless, since you can search for unclaimed property and reclaim it for free (or perhaps for a small processing fee to the state).
The IRS recently warned of another kind of unclaimed money scam, in which a letter arrives, claiming to be from the government, alerting you to a refund you have not yet accessed. This fraudulent communication then says that your banking details are needed to receive the money. If you send that sensitive information, you could end up losing money and having your accounts compromised.
Using Your Unclaimed Money
If you happen to be one of the lucky people who finds cash waiting for them, what should you do with it? You may be tempted to blow the surprise windfall on those new shoes you’ve been eyeing or on a dream vacation.
But depending on the sum you receive and your financial situation, there may be smarter ways to put the unexpected money to use. Consider these possibilities.
Paying Off Debt
If you have high-interest debt, many people suggest putting much of your extra cash toward knocking it out. That’s because interest rates can cause a balance to balloon significantly over time, meaning the longer you wait to pay off your high-interest debt, the more you’ll likely pay overall.
Credit cards and payday loans tend to have high interest rates, but you may also want to check the rate you’re paying on your student loans, car loan, personal loan, or mortgage. One method for potentially paying off your debt faster is to tackle your highest-interest debt first, while staying on top of minimum payments for your other liabilities.
Building An Emergency Fund
Once you’re on top of your debt or at least the highest-interest liabilities, it may be a good idea to establish or pump up an emergency fund.
Financial experts suggest having enough saved to cover three to six months’ worth of living expenses.
It may be a good idea to keep this money in a safe place, like a high-interest savings account, for unexpected emergencies such as car repairs, medical bills, or a layoff. Having an emergency fund may help you avoid getting into high-interest debt in the future since you have that cash cushion to see you through challenging times.
Saving for a Goal
Once you have a basic emergency fund, you may want to start setting aside money to get closer to a big financial goal. Maybe you want to have a wedding, travel, start a business, or buy a home.
Saving in advance means you may need to take out less in loans or pay less in credit card charges. Or you might be able to avoid them altogether, keeping more of your money in your pocket.
Investing for the Future
Another option is to invest your money in an individual retirement account, college savings plan, brokerage account, or another financial vehicle.
Investing your money for the long-term could allow you to take advantage of the power of compounding returns and potentially increase your chances of reaping solid growth over time. It can be tempting to spend your lucky find on short-term fun, but investing may set you up for financial freedom in the future.
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The Takeaway
How do you find unclaimed funds? Typically, it involves searching on websites to see what pops up. These are usually specific to the kind of money that is sitting unclaimed, whether that means going searching for tax refunds, the contents of closed bank accounts, back wages, or insurance payments.
Whether it’s deciding what to do with reclaimed cash, if you’re owed any, or figuring out how to afford a big goal, life poses plenty of personal finance challenges. Finding the right financial partner can be an important step in making your money work harder for you.
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FAQ
What is the best website to find unclaimed money?
Using a website to find unclaimed money will depend somewhat on the source of the unclaimed funds, such as whether it’s from an insurance claim, a forgotten safety deposit box, or other source. One good place to start can be unclaimed.org, which is run by the National Association of Unclaimed Property Administrators.
What happens if money is unclaimed?
When money is unclaimed, it often goes through a dormancy period (perhaps five years), after which the state takes control of the funds.
How do you claim unclaimed money from the IRS?
If you were expecting a federal tax refund and didn’t receive it, visit the IRS’ Where’s My Refund page and/or call their helpline at 800-829-1040. For state taxes, contact your local Department of Revenue by checking this website.
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