Sunrise Homes & Renovations, Inc.

Advice For Purchasing A House On A Single Income

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Advice For Purchasing A House On A Single IncomeEven though a lot of people have two incomes they can use to purchase a house (theirs and their partner’s), this is not necessarily required. There are lots of people who want to take advantage of current interest rates to purchase a house, and some people are trying to do it on their own. Even though it can be a challenge to buy a house with only one income, it is certainly not impossible. There are several tips that can make it easier for everyone to afford a house with just a single income. 

Always Check Your Credit Score

If you want to buy a house on a single income, make sure you check your credit score first. Your credit score is a reflection of your financial health. The higher your credit score is, the better your chances of having your loan application approved. You can check your credit score for free once per year from any of the major credit bureaus. You need to know what your credit score is and you need to correct any inaccuracies on your credit report before you apply for a home loan. 

Explore Government Loan Programs

Next, if you are buying a home for the first time, you should explore government loan programs. For example, you might be able to apply for an FHA loan, which could allow you to purchase a home for as little as 3.5 percent down. That way, you do not necessarily need to save up a 20 percent down payment to buy a house. Depending on your location, there could be other government loan programs that can make it easier for you to buy a house.

Ask For a Co-Signer To Help 

Even if you plan on paying for the mortgage yourself, you may find it easier to buy a house if you have someone who can co-sign for your loan. This is particularly helpful if your credit score isn’t quite high enough to qualify for a loan. As long as your co-signer has a solid credit score, they might make it easier for you to get your loan application approved. Furthermore, you might be rewarded with a lower interest rate than you could otherwise get on your own. 

 

Comparing Long-Term And Short-Term Rentals

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Comparing Long-Term And Short-Term RentalsOwning rental properties is a great way to diversify investments. Similar to the stock market, homes come in many shapes and forms. Some people are looking for short-term rental properties while other people are looking for long-term rental properties. What are the differences between them, and why might one person choose to own one of these properties over the other?

What Is A Long-Term Rental?

In general, long-term rental property is defined as any property that has a standard lease that is longer than 12 months. Many people think about apartments, condos, and single-family homes as long-term rental properties.

There are several reasons why people might choose a long-term rental property as one of their investment options. With longer leases, there is a consistent stream of income. There is also less to do because there is not as much turnover between residents. Property owners also have fewer responsibilities, as the renters are often responsible for handling utilities.

On the other hand, vacancies in long-term rental properties can last a long time. Some people prefer flexibility in a rental contract, so they might not be interested in a minimum 12-month lease. 

What About A Short-Term Rental?

A short-term rental property is defined as any property with a standard lease that is shorter than 12 months. While this often includes vacation homes, they can also include single-family homes, apartments, and condos.

Many people like owning a short-term rental property because the income is generally higher. People tend to stay for only a few days or weeks at a time, so property owners can charge more for an average night.

One downside of owning a short-term rental property is that this requires more work. The property owner has to clean more often between residents, and there might be more variability in the income stream.

Choose The Right Property

These are just a few of the most important points people need to keep in mind regarding long-term and short-term rental properties. The right option for one person is not necessarily the right option for someone else. Property owners need to think about their personal preferences, the location of the property, and how much work they are willing to do. That way, they can decide whether to go with a short-term or long-term rental property. 

Advice For Purchasing A House On A Single Income

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Advice For Purchasing A House On A Single IncomeEven though a lot of people have two incomes they can use to purchase a house (theirs and their partner’s), this is not necessarily required. There are lots of people who want to take advantage of current interest rates to purchase a house, and some people are trying to do it on their own. Even though it can be a challenge to buy a house with only one income, it is certainly not impossible. There are several tips that can make it easier for everyone to afford a house with just a single income. 

Always Check Your Credit Score

If you want to buy a house on a single income, make sure you check your credit score first. Your credit score is a reflection of your financial health. The higher your credit score is, the better your chances of having your loan application approved. You can check your credit score for free once per year from any of the major credit bureaus. You need to know what your credit score is and you need to correct any inaccuracies on your credit report before you apply for a home loan. 

Explore Government Loan Programs

Next, if you are buying a home for the first time, you should explore government loan programs. For example, you might be able to apply for an FHA loan, which could allow you to purchase a home for as little as 3.5 percent down. That way, you do not necessarily need to save up a 20 percent down payment to buy a house. Depending on your location, there could be other government loan programs that can make it easier for you to buy a house.

Ask For a Co-Signer To Help 

Even if you plan on paying for the mortgage yourself, you may find it easier to buy a house if you have someone who can co-sign for your loan. This is particularly helpful if your credit score isn’t quite high enough to qualify for a loan. As long as your co-signer has a solid credit score, they might make it easier for you to get your loan application approved. Furthermore, you might be rewarded with a lower interest rate than you could otherwise get on your own. 

 

Rent Is Going Up Across The Country: What People Can Do

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Rent Is Going Up Across The Country: What People Can DoMany people who rent sign a 12-month lease. With many people’s contracts up for renewal during the next few months, people may be surprised to see just how much their rent might be going up in the next year. Just as gas prices, car prices, and prices at the grocery store continue to increase, rent is going up as well. It is important to take a closer look at the reasons why, and what people can do to make their housing costs more affordable. 

Inflation Is Partly To Blame

One of the reasons why rent is getting more expensive is that inflation has reached record levels. Inflation has not been this high since the 1980s, and the cost of everything is getting more expensive. A lot of overhead expenses have gone up, and these rental companies have responded by increasing their prices. With a lot of demand for apartments, rent is going up. 

COVID Pandemic Deals Are Ending

In addition, a lot of rental companies had deals in place to make housing more affordable during the coronavirus pandemic. Some of the major cities provided emergency funding in an effort to keep rent down, particularly as many people were furloughed or laid off. Now that many of these COVID pandemic stipulations are starting to end, apartment buildings are starting to raise their rent significantly.

Buying A Home Is A Way To Save Money

As many people struggle to deal with the sticker shock of their rents going up, it is important to take a look at what people can do to make housing more affordable. Instead of renting, it might be prudent to look at buying a house this year. Interest rates on home loans are still very low, which could make it easier for people to afford a house. Furthermore, unlike rent prices, which tend to increase every time the lease is renewed, people have the option to get a fixed-rate mortgage for 30 years. This means that even as rent continues to go up during the next few decades, the monthly mortgage payment will stay the same even 30 years down the road. Now might be a smart time to buy a house. 

Exploring Multigenerational Homes: They Are Becoming More Common

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Exploring Multigenerational Homes: They Are Becoming More CommonPurchasing a house is expensive. Not everyone has the money to put down 20 percent. One of the ways to make it easier to afford a house is to live in a home with multiple generations. Some people decide to move back in with their parents because they might have a difficult time affording a mortgage and student loans. Some parents move in with their children because they have health-related issues that need to be addressed. Now, multi-generational homes are becoming more common.

An Overview Of Multigenerational Homes

First, it is important to define a multigenerational home. This is a home that has two or more generations of adults living in the same building. Parents raising children does not qualify as a multi-generational home; however, if you add grandparents to the mix, now this is a multi-generational home. It is important to take a closer look at some of the reasons why people are living in multigenerational homes. 

The Benefits Of This Lifestyle

There are a number of significant benefits that come with living in a multi-generational home. Of course, it improves the financial situation because there are multiple incomes being put toward homeownership expenses. There are a variety of other benefits as well. For example, living in a multi-generational home improves bonds with family members and makes it easier to care for individuals with health problems. This also makes it easier to help kids go through school, and it can have a positive impact on mental and physical health. 

The House Should Be Larger To Accommodate Everyone

Because there are more adults living under a single roof, it is important to make sure the house is large enough. Everyone deserves to have some level of privacy, and this might mean the house has to have more bedrooms and bathrooms. It might also be helpful to have a basement or a mother-in-law suite.

Consider Multigenerational Homes

In the end, these are just a few of the numerous benefits and considerations people need to think about if they are considering living in a multi-generational home. If you are looking for a way to make the cost of a home more affordable, this could be right for you as well. 

Everything Homeowners Need To Know About Down Payments

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Everything Homeowners Need To Know About Down PaymentsBuying a house is an exciting time, but homeowners also need to make the best financial decision to meet their needs. One of the biggest decisions potential homeowners will face is how much money to put down.

A down payment is the amount of money that homeowners pay upfront when they purchase a home. Many homeowners believe they need to put down 20 percent; however, this is not always the case. What do homeowners need to know about putting a down payment on a house? 

20 Percent Is Not Always Required

The reason why homeowners often believe they need to put down 20 percent is that lenders will often require a 20 percent down payment to avoid paying PMI. PMI stands for private mortgage insurance. If a homeowner puts down less than 20 percent, the lender takes on significant risk if the homeowner defaults. Therefore, the lender may require the homeowner to purchase PMI to protect the lender against the risk of default.

Homeowners might be able to secure a loan with 10 percent down if they are willing to pay PMI. First-time home buyers might be able to secure a home loan with as little as 3.5 percent down if they go with an FHA loan.

The Relationship Between Down Payments And Interest Rates

Homeowners might want to put down more money to earn a lower interest rate. Securing a lower interest rate could save homeowners tens of thousands of dollars over the life of the loan. If homeowners put down more money, the lender doesn’t take on as big of a risk. Therefore, the lender might be willing to charge a lower interest rate. 

Work With A Professional 

Ultimately, the size of the down payment is one of the biggest decisions potential homeowners have to make. It can take a long time to save up 20 percent for a home, but this is not always required. Homeowners need to know whether they need to pay PMI if they do not put 20 percent down, and they need to understand how the size of the down payment will impact the interest rate on a loan. It is a prudent idea to consult with a professional when deciding how much money to put down for a house.