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Real Estate

5 Places Where Lousy Credit Won’t Block a Home Purchase

NAR Daily News Magazine - September 10, 2018 - 12:00am

Realtor.com® analyzed metros to find where a less-than-perfect credit score—even those well under 650—can still land buyers a home.

Categories: Real Estate

Court Strikes Down Laws Making Homelessness Illegal

NAR Daily News Magazine - September 10, 2018 - 12:00am

Stemming from a lawsuit against the city of Boise, Idaho, the 9th Circuit Court of Appeals rules that it’s not a crime to sleep outdoors when not enough shelters are available.

Categories: Real Estate

‘Nonbanks’ Emerge as Top Lenders for Home Buyers

NAR Daily News Magazine - September 10, 2018 - 12:00am

More consumers are bypassing big, established banks and turning to a growing subset of specialized lenders to obtain a mortgage.

Categories: Real Estate

What Property Buyers Should Know About Land Loans

RisMedia - September 9, 2018 - 12:03pm

(TNS)—If you’re thinking about buying land, you’ll be hard-pressed to persuade a mortgage lender to finance your purchase. Instead, you’ll likely need to apply for a land loan.

Land loans aren’t as common as mortgage loans, so your options may be limited. Also, because of different factors, you could end up with a shorter repayment period and higher down payment and interest rate than you’d find with a mortgage loan.

So, if you’re considering getting a land loan, it’s important to know what you’re getting yourself into and what options are available to reduce your costs.

What Are Land Loans?
Land loans are a type of credit you can use to buy a vacant lot to eventually build a home on or raw land that you don’t intend to develop.

Land loans tend to be riskier for lenders than mortgage loans, says Casey Fleming, a mortgage adviser with C2 Financial Corp. in San Jose, Calif. Because of that, you may not get as favorable terms as you might get with a mortgage loan.

“Owners of raw land are much more likely to stop making payments and walk away from the property in the event of a financial event in their lives,” Fleming says. “And land is much harder to sell (than a home).”

That’s primarily because the demand for land is smaller than the demand for new and existing homes. So, if a lender needs to foreclose on the land, there’s no guarantee it will get its money back in a timely manner, if at all.

As a result, some lenders require a substantial down payment and charge high interest rates on land loans. Also, some land loans have significantly shorter repayment terms than a typical 15- or 30-year term you might get with a mortgage loan.

5 Land Loans to Consider to Finance Your Land Purchase
There are five common types of land loans you can get to finance your land purchase, each with its own terms and features.

  1. Lender Land Loans
    Community banks and credit unions are more likely to offer land loans than large national banks. Your best bet is to find a lender with a presence near the land you want to buy. Local financial institutions know the area and can better assess the value of the land and its potential.

If you’re leaving the land undeveloped, interest costs will be very high, Fleming says. Plus, a lender could require a down payment as high as 50 percent.

Some lenders, however, may be willing to take a lower down payment and charge lower interest rates if you have plans to build on the land soon. So, shop around before you apply.

Also, local lenders are more likely to offer longer repayment terms, giving you more time to repay the debt.

  1. USDA Rural Housing Site Loans
    If you’re planning on building a primary residence in a rural area, the U.S. Department of Agriculture (USDA) has a couple of loans that can help.

Section 523 loans are designed for borrowers who plan to build their own home, while Section 524 loans allow you to hire a contractor to build the home for you. Both loans are designed for families with low to moderate income, and they have a repayment term of just two years. Interest rates, however, can be low. Section 523 loans, for instance, charge just 3 percent, while Section 524 loans charge the current market rate.

Depending on the situation, you may even qualify for a loan with no down payment.

  1. SBA 504 Loan
    If you’re a business owner planning to use the land for your business, you may qualify for a 504 loan through the U.S. Small Business Administration (SBA). With a 504 loan, you, the SBA and a lender help contribute to the costs of the land purchase:
  • The SBA provides a loan for 40 percent of the purchase cost.
  • A lender provides a loan for 50 percent of the purchase cost.
  • You contribute 10 percent in the form of a down payment.

SBA loans come with a 10- or 20-year repayment period, and the interest rate will be based on current market rates. The terms of the loan you receive through the lender can vary, however, depending on which lender you choose.

  1. Home Equity Loan
    If you have an existing home with significant equity, it may be worth getting a home equity loan instead of trying to get a land loan. There’s no down payment on a home equity loan. What’s more, you can typically get a low interest rate—regardless of what you plan to do with the land—because your home secures the loan.

The downside is that if you default on the loan, you could lose your home. Also, since you’re not using the loan to buy, build or substantially improve the home used as collateral, you can’t deduct the interest you pay when you file your taxes.

Depending on the lender and the loan, your repayment term could be anywhere between five and 30 years.

  1. Seller Financing
    In some cases, the person or company selling the land may be willing to offer short-term financing. In many cases, the seller isn’t in the lending business and doesn’t have a broad portfolio of loans like a community bank or credit union.

As a result, you can typically expect high interest rates and a high down payment. Also, it’s unlikely you’ll get a long repayment term. So, consider this option if you can’t qualify for any other type of land loan.

How to Find the Right Land Loan for You
There’s no single best land loan out there for everyone, so it’s important to shop around to find the best one for your situation. Before you do anything, Fleming recommends developing a comprehensive plan for what you plan to do with the land. Doing this can help you determine what type of loan is best and how long you want the repayment term to be.

Keep in mind, though, that some lenders may have limits on how much they’re willing to finance. Others, Fleming says, may require a balloon payment, which is a large, one-time payment at the end of the loan term. “So, you may have to have a plan to pay it off before that payment comes due.”

As you consider your different options, make sure you choose one that fits within your budget and helps you achieve your ultimate goal with the land.

©2018 Bankrate.com
Distributed by Tribune Content Agency, LLC

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The post What Property Buyers Should Know About Land Loans appeared first on RISMedia.

Categories: Real Estate

Consumer Confidence at High Point

RisMedia Consumer News - September 7, 2018 - 11:00pm

In August, consumer confidence rose, posting a 133.4 reading in the Consumer Confidence Index® from The Conference Board. July’s reading was 127.9.

The Expectations reading of the Index, which gauges how consumers feel about their business, employment and income prospects six months out, improved, as well, to 107.6, while the Present Situation reading, which gauges how consumers feel about conditions currently, rose to 172.2.

“Consumer confidence increased to its highest level since October 2000 following a modest improvement in July,” said Lynn Franco, director of Economic Indicators at The Conference Board, in a statement. “Consumers’ assessment of current business and labor market conditions improved further. Expectations, which had declined in June and July, bounced back in August and continue to suggest solid economic growth for the remainder of 2018. Overall, these historically high confidence levels should continue to support healthy consumer spending in the near-term.”

Source: The Conference Board

For the latest real estate news and trends, bookmark RISMedia.com.

The post Consumer Confidence at High Point appeared first on RISMedia.

Categories: Real Estate

5 Strategic Ways for Millennials to Save Money

NAR Daily News Magazine - September 7, 2018 - 12:00am

Often the down payment is the biggest obstacle for younger would-be home buyers. Here are ways to get a solid financial footing.

Categories: Real Estate

How Race Still Matters in Real Estate

NAR Daily News Magazine - September 7, 2018 - 12:00am

A sociologist explains how agents’ business practices can reduce opportunities for minority consumers.

Categories: Real Estate

Lots Are Costing Buyers More

NAR Daily News Magazine - September 7, 2018 - 12:00am

Home yards may be getting smaller but they’re also hitting record-level prices.

Categories: Real Estate

Mortgage Rates Inch Up

NAR Daily News Magazine - September 7, 2018 - 12:00am

Borrowing costs may be slowly on the rise again in the coming weeks, Freddie Mac warns in its latest mortgage market survey.

Categories: Real Estate

Survey: Clients With Kids ‘Urgently’ Need to Buy, Sell

NAR Daily News Magazine - September 7, 2018 - 12:00am

Slightly more than a quarter of all buyers with children say that child care expenses delay their home purchases.

Categories: Real Estate

Beware Location Remorse: Over a Third Have ‘Neighborhood Regret’

RisMedia Consumer News - September 6, 2018 - 3:01pm

You can change a house—location is tougher.

According to new research by Trulia, 36 percent of Americans have “neighborhood regret,” or would have moved to another neighborhood than the one they reside in today. The feeling is heightened in metros, where 46 percent are dissatisfied with their pick, but less pronounced in rural areas (31 percent) and the suburbs (30 percent) The portal surveyed 1,000 Americans in Austin, Chicago and San Francisco who moved in the past three years.

What makes a neighborhood suitable? Forty-eight percent of those surveyed were motivated by the “vibe,” 37 percent were affected by crime rates, and another 37 percent were attracted to easier travel to work. Attributes that led to regret? Lack of public transit, noise and traffic.

Is your neighborhood a problem? For future moves, prepare through research. Look up neighborhood photos—something just 38 percent of those surveyed did—and plan a time to visit. Only 37 percent explored the neighborhood’s popular spots, and 47 percent did not go at night. Remember, as well, that your agent is an expert on the local market. Contact them for help with your move.

For more information, please visit www.trulia.com.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Beware Location Remorse: Over a Third Have ‘Neighborhood Regret’ appeared first on RISMedia.

Categories: Real Estate

Home Flips Plunge as Distressed Inventory Dries Up

NAR Daily News Magazine - September 6, 2018 - 12:00am

Investors retreat from the fix-and-flip market, as fewer properties are available at deep discounts.

Categories: Real Estate

PHH, Realogy to Pay $17M Over Alleged Kickbacks

NAR Daily News Magazine - September 6, 2018 - 12:00am

The two companies have settled claims from a 2015 lawsuit that they received kickbacks for referring certain settlement services.

Categories: Real Estate

Real Estate Community Focuses on Disaster Preparedness

NAR Daily News Magazine - September 6, 2018 - 12:00am

Share these tips with clients so they can take precautions and weather the storm when a natural disaster strikes.

Categories: Real Estate

Top Towns for an ‘Affordable’ Retirement

NAR Daily News Magazine - September 5, 2018 - 12:00am

Where are retirees headed? If you live in these communities, you may find out first-hand.

Categories: Real Estate

Study Reveals ‘Starbucks Effect’ on Home Prices

NAR Daily News Magazine - September 5, 2018 - 12:00am

When a new Starbucks opens near a neighborhood, that could be a good sign for home prices, a new Harvard study suggests.

Categories: Real Estate

Gen Z May Prove to Be Serious Competition for Millennials in Housing

NAR Daily News Magazine - September 5, 2018 - 12:00am

Despite its young age, "Generation Z" is showing a lot of interest in homeownership. Is it youthful optimism or is the eagerness real?

Categories: Real Estate

Opendoor Aims to Capture More Market Share

NAR Daily News Magazine - September 4, 2018 - 12:00am

The company’s planned expansion would make its service accessible to 15 percent of the U.S. population.

Categories: Real Estate

3 Plants That Can Kill Your Listing’s Curb Appeal

NAR Daily News Magazine - September 4, 2018 - 12:00am

Though lush shrubs and flowering plants can boost a home's curb appeal, some have a reputation for being destructive to lawns.

Categories: Real Estate

Ultra-Luxury Market Grapples With $1B in Price Reductions

NAR Daily News Magazine - September 4, 2018 - 12:00am

Sellers who own the priciest homes in the country have had to make mega price cuts to lure buyers. Here’s a theory for why.

Categories: Real Estate