Buyers looking to acquire a pool of non-performing loans have that opportunity, as a $106 million pool of non-performing loans is now on the market, according to MountainView, which is acting as the exclusive advisor for the sale. Here are the details of the deal. http://www.housingwire.com/articles/38408-106-million-non-performing-loan-portfolio-hits-the-market ❤️ #share #mortgage
[EXPERT COMMENTARY] With vacations over and the holidays coming fast, home buying is beginning to slow down. So, given all of the predictions for 2016, let’s review the better part of the 2016 home-buying season and see what we’ve learned, with an eye toward 2017. http://www.housingwire.com/blogs/1-rewired/post/38410-five-things-we-learned-from-the-2016-home-buying-season ❤️ #share #mortgage
New reporting by ProPublica shows that Facebook could allow advertisers to specifically target — or exclude — certain ethnic groups. While some groups are calling them out for this, Facebook insists it has done nothing wrong, and that it even takes action against ads that are illegal under the Fair Housing Act. http://www.housingwire.com/articles/38409-does-facebook-customization-option-enable-illegal-housing-discrimination-ads ❤️ #share #mortgage
There comes a time in many homeowners’ lives when it’s just time to move on to the next home. Maybe it’s because of a job change, the arrival of a kid (or more kids), a marriage or divorce, or you just don’t like where you live anymore.
Many millennial homeowners – who represent half of all home buyers these days, according to the Zillow Group Consumer Housing Trends Report – are ready for that next home purchase. Maybe that describes you.
So, now you have a decision to make: Do you sell your first home, or hang on to it and rent it out?
Kate Currett, a millennial homeowner, rented out her first home in Utah for three years while living in her second home in Ohio. Her goal, like most who rent out a property, was to earn additional income.
Sounds simple enough, but there are many factors that you should weigh when making this big decision.
Financial perks and considerations
In addition to having the potential to make some money on renting a house, buying a second home and renting the first is one way to build a real estate investment portfolio.
Millennials, in particular, are typically in a good position to do this: You can convert your primary residence into a rental and “leave your owner-occupied mortgage intact, which was likely (and hopefully) obtained with a down payment and the most favorable mortgage interest rate, as low as 3.5 percent,“ says Kelly Hannah, a certified residential specialist at Eightline Real Estate.
Contrast that scenario with purchasing a non-owner-occupied property (that is, a house that you’re purchasing specifically to rent out): “[This] typically requires a 20-25 percent down payment with a mortgage interest rate that is generally 1.5 percent (or more) higher than you could get for an owner-occupied property,” Hannah explains.
Bottom line, it will likely cost less to convert the house you live in now into a rental and buy a second home to use as your primary residence than to purchase a second home to use as a rental property.
The financial hurdle you will have to leap is qualifying for a second mortgage. “In the beginning, [it was difficult] making sure we could qualify for a dual loan,” Currett admits.
But if you have a lease in place on your first home prior to closing on your second home, “your lender may allow a portion of those future rents to count as income in their calculation of your debt-to-income ratios,” Hannah says.
However, lenders “prefer to see that you have property management experience in order to count those future rents as income,” he warns.
As for tax advantages to renting out one of your properties, Leigh Anne Bernal, a property consultant with cityhomeCOLLECTIVE, advises making it a priority to speak with an accountant, as tax rules can be complicated when renting out a property.
Generally, “the most substantial tax advantages to converting your current home into a rental come in the form of depreciating that property, the deduction of maintenance expenses, and the deduction of your mortgage interest,” Hannah explains.
The ideal rental property
Before you make any moves toward converting your home into a rental, you need to assess whether or not your home is rentable.
Generally speaking, a “one- to three-bedroom home is going to be easier [to rent] than a larger home,” Bernal notes.
She suggests researching who the renters are in your city and the types of properties they rent. “The broader the appeal, the more luck you will have,” Bernal says.
Hannah adds that the best way to determine whether your home is an ideal rental property is to meet with a professional and “create a comprehensive strategy tailored to your individual situation and specific market.”
How to assess rental fees
Needless to say, rental rates vary greatly, “especially with respect to single-family homes and condominiums,” Hannah says, as rental rates for privately owned homes are not easily tracked.
Currett agrees, and notes that a tough part of owning a home while renting out another was balancing having a competitive rental rate and still making a profit.
However, a reliable way to determine the rent for your first home is to search the rental market for homes similar to yours.
“This will allow you to see what rental rates are in real time and space, and price your rental competitively,” Hannah notes.
“Do your homework,” Bernal says. “Take all of the costs into consideration, including property taxes and insurance.”
Perhaps the most difficult aspect of renting a property is being a landlord for the first time. Costs can come at you from all sides, from repairs to late or unpaid rent from tenants to property damage. Go in planning on incurring expenses beyond the mortgage payment.
“Some of this can be handled with a property management company, but that comes at a price, so make sure you have that included in your math,” Bernal advises.
Words of wisdom
When it comes to renting out your extra home, “Do it,” is Hannah’s advice. “Buy and hold is almost always a good idea.”
But Bernal recommends really analyzing your situation before making a leap: “If you’re in a seller’s market, that can make it tougher to get into your new home without cashing out the equity in your first home. You may be able to refinance your first home to get some of that equity out.”
- Tax Tips for Rental Property Owners
- 4 Steps to Buying a Second Home
- Landlording 101: A Guide to Rental Property Management
from Zillow Porchlight http://www.zillow.com/blog/millennials-buy-second-rent-first-205087/
A new survey from the National Association of Realtors shows women broke their 13-year low and increased their share in the housing market to the highest it’s been since 2011 and over double that of single men. This is despite having annual incomes that are significantly less than men. But single women aren’t the only group increasing their share of #homebuyers. http://www.housingwire.com/articles/38407-nar-more-single-women-buying-homes ❤️ #share #mortgage
A considerable number of potential buyers shy away from jumping into the real estate market due to their uncertainty about the buying process. A specific cause for concern tends to be #mortgage qualification.
For many, the #mortgage process can be scary, but it doesn’t have to be!
In order to qualify in today’s market, you’ll need to have saved for a down payment (the average down payment on all loans was 11% last month, with many buyers putting down 3% or less), a stable income and good credit history.
Throughout the entire home buying process, you will interact with many different professionals, all of which perform necessary roles. These professionals are also valuable resources for you.
Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests to follow:
* Find out your current credit history & score – even if you don’t have perfect credit, you may already qualify for a loan. The average FICO Score of all closed loans in September was 731, according to Ellie Mae.
* Start gathering all of your documentation – income verification (such as W-2 forms or tax returns), credit history, and assets (such as bank statements to verify your savings).
* Contact a professional – your real estate agent will be able to recommend a loan officer that can help you develop a spending plan, as well as determine how much home you can afford.
* Consult with your #lender – he or she will review your income, expenses, and financial goals in order to determine the type and amount of #mortgage you qualify for.
* Talk to your #lender about pre-approval – a pre-approval letter provides an estimate of what you might be able to borrow (provided your financial status doesn’t change), and demonstrates to home sellers that you are serious about buying!
Do your research, reach out to professionals, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a homeowner. http://www.simplifyingthemarket.com/en/2016/10/31/taking-the-fear-out-of-the-mortgage-process/?a=242769-4eb2112ad1caac540e99a63dd199d5ed ❤️ #share #mortgage
There are still about 30,000 vacant houses and buildings in Detroit as a result of manufacturing job loss and the foreclosure crisis. But a program funded by unions to renovate vacant houses in Detroit has been so successful that it’s now being expanded to eight more Rustbelt cities, the AP reported on Sunday. All this and more in MMCC! http://www.housingwire.com/blogs/1-rewired/post/38406-monday-morning-cup-of-coffee-the-prospects-of-a-trump-presidency-and-the-good-news-in-detroit ❤️ #share #mortgage