Sunrise Homes & Renovations, Inc.

What Are The Requirements To Sell A Home Using An FHA Loan?

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What Are The Requirements To Sell A Home Using An FHA Loan?Before an owner can market a property to buyers that want to use a FHA loan, he will want to familiarize himself with the FHA’s standards. FHA won’t insure loans on just any property.

While their standards aren’t as stringent as they used to be, a home needs to be in relatively good condition to qualify for FHA financing.

Location And Lot

To qualify for FHA financing, the property has to be located on a road or easement that lets the owner freely enter and exit.

The access also has to be paved with a surface that will work all year a long dirt driveway that washes out in spring won’t qualify.

The FHA also wants the lot to be safe and free of pollution, radiation and other hazards. For that matter, it also needs to provide adequate drainage to keep water away from the house.

Property Exterior

The FHA’s requirements for making a loan start with the home’s roof. To pass muster, the house must have a watertight roof with some future life left. In addition, if the roof has three or more layers of old shingles, they must all be torn off as part of the replacement process.

The property’s exterior has to be free of chipped or damaged paint if the home has any risk of having lead paint. Its foundation should also be free of signs of exterior (and interior) damage. It also needs full exterior walls.

Property Interior

The property’s interior also needs to be inspected. FHA standards require that the home’s major systems be in good working order.

Bedrooms should have egress routes for fire safety and the attic and basement should be free of signs of water or mold damage.

The bottom line is that the FHA wants to make loans on homes that borrowers can occupy. This doesn’t mean that a home has to be in perfect condition to be sold to an FHA mortgage-using borrower. It just needs to be a place that they can live.

Getting Your Mortgage Application Approved As A Self-Employed, First-Time Homebuyer

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Getting Your Mortgage Application Approved As A Self-Employed, First-Time HomebuyerA significant number of people are self-employed, which means they might be relying on this income to apply for a mortgage. It is true that people who are self-employed may face additional challenges when trying to get approved for a home loan when compared to someone with traditional W2 income, these are obstacles that can be overcome. With the right qualifications and documentation, even first-time homebuyers who are self-employed should be able to qualify for the home loan they need.

Lenders Assess Someone’s Ability To Repay The Loan

First, lenders are trying to make sure the person will repay the loan. Lenders believe that someone with W2 income has a stable job and a guaranteed salary, which means they are more likely to repay the loan; however, someone who is self-employed has other ways of demonstrating that he or she can repay the loan. Self-employed individuals can use tax returns, payroll receipts, and records from financial institutions that serve as documentation of the applicant’s income or assets. This means standard W2 forms and pay stubs might no longer be necessary.

Navigating Eligibility Requirements

Next, self-employed individuals need to meet the eligibility requirements. This includes two years of self-employment, a reliable income, a strong credit score with a clean credit report, cash for a down payment, and a low debt to income ratio. It is possible for a first-time homebuyer to get a loan for less than five percent down; however, closing costs can be significant. Realistically, first-time homebuyers should plan on spending close to five percent of the home’s value to get approved for a first-time home loan.

Understanding Mortgage Options

Finally, self-employed first-time homebuyers should be aware that there are multiple loan options available. For example, there are FHA and VA loans for those who qualify. USDA loans and jumbo loans might also be an option. There are bank statement mortgages and conventional options available as well. Self-employed individuals might have to visit several of these programs to see which ones work the best. The programs vary in terms of their down payment, minimum credit score, and credit history requirements. It is prudent to work with a professional loan officer who has experience helping self-employed, first-time homebuyers get approved.

Keep Your Home Free From Clutter With These Helpful Unpacking Tips

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Keep Your Home Free From Clutter With These Helpful Unpacking TipsThe thrill of purchasing a new home is unparalleled; however, once you close on the sale, the dreaded unpacking process begins. You probably did not realize just how much stuff you had until you had to pack it all up. Worse yet, you need to unpack it when you get to your new home. If you don’t unpack intelligently, your new home could end up disorganized and full of clutter. With this in mind, how can you unpack without leading to a tremendous amount of clutter in your home?

Get Rid Of Items You Do Not Need

As you go through the boxes, ask yourself if you are actually going to need the items as you unpack them. If you do not need them, consider donating them to a local charity. Just because you brought it with you does not mean that you need to keep them. Evaluate the items in your boxes, and discard them when not needed.

Unpack Room By Room

Hopefully, you labeled your boxes as you packed them up, so this is a perfect time to organize your items before you open the boxes. Furthermore, it is faster to carry the boxes to the individual rooms than to carry the individual items to their designated locations one at a time. If you unpack room by room, you can ensure every item has a place (and that every item is in its place).

Take Advantage Of Organizers

While unpacking your boxes is half the battle, the other half is using organizers to keep your belongings in the right spots. There are plenty of organizers you can use to keep your items in the right locations. Examples include bins, boxes, and trays. You can use them to organize your storage spaces, drawers, and closets. You can even use wire organizers that prevent your cords from creating trip hazards. Use every tool available to keep your rooms organized.

Prevent Clutter From Developing In Your Home

There are a lot of homes that develop a significant amount of clutter during the unpacking process, but your home does not have to look this way! When you start to unload those boxes, put these tips to work for you!

Making Repairs And Upgrades To A Home: DIY Or CAP

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Making Repairs And Upgrades To A Home: DIY Or CAPThere are many people who are thinking about listing their homes, but they need to make sure they get as much money for their homes as possible. This could mean making a few upgrades and repairs around the home. There are some situations where it might be possible to DIY these projects, but there are other situations where it is better to call a professional, or CAP. When should homeowners take which path? Learn more below.

Painting And Light Work Could Be DIY

First, anything that is simple or easy around the home needs to be a DIY project. For example, if there are a few spots that need to be touched up with a fresh coat of paint, then this could probably be a DIY project. If there are easy plumbing fixes around the house, such as swapping out a toilet flapper, this could probably be a DIY project as well. It might even be easy to swap out some handles or drawer pulls. Ultimately, everyone has a different comfort level, but these are a few examples of easy DIY projects around the home.

CAP For Issues Of Safety, Time, And Money

There are larger projects that should require a professional. For example, anything that has to do with the electrical system needs to be handled by a professional. It is possible for someone to shock or electrocute themselves, which is something that needs to be avoided. Furthermore, any major carpentry projects need to be handled by someone with the right tools and training. Finally, if there is a major leak in the home somewhere, then this is something that requires the attention of a trained plumbing professional. If these projects go wrong, they can go very wrong, so they need to be fixed correctly on the first attempt.

Cosmetic Is DIY, Structural Is CAP

In the end, everyone has their own comfort level, but a great rule of thumb is that anything cosmetic should be DIY, well anything structural should be CAP. Remember that everyone has to put safety first. When in doubt, call a professional for help. That way, everyone can maximize the value of their home when they go to list it.

An Overview Of A Smart Fridge: What To Know

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An Overview Of A Smart Fridge: What To KnowToday, technology has come a long way, and this includes refrigerators. There are many people who have smartphones, home connected devices, and smart TVs. Now, there are smart refrigerators as well.

While a smart refrigerator is still a relatively new addition to the market, this gives users more control over their fridges and how they work. For example, it is now possible for homeowners to use a smart fridge to send and receive information using an electronic screen on the exterior of the refrigerator. How does this technology work and why is it so important?

What Can Homeowners Do With The Screen On A Fridge?

There is a lot that homeowners can do with the information on their refrigerators. For example, they might be able to put digital notes on the fridge. That way, they do not have to worry about forgetting something important. Homeowners can also use this screen to watch TV when they are in the kitchen. This could save someone the trouble of having to put a TV in the kitchen. Then, homeowners can use their refrigerators to listen to music as well. Their refrigerators can also send an alert when the homeowner is running out of something or when there is low ice. Homeowners might be able to do all of this without opening the door.

Major Appliance Companies Are Now Offering Smart Fridges

Today, there are numerous major appliance companies that are offering smart fridges. For example, GE offers an app that lets people know when the door is open, when the water filter has to be replaced, or when the ice maker is empty. LG offers a smart fridge that allows people to order groceries and turn on music. Samsung also has a Family Hub fridge that allows people to look up recipes and write notes before sending them to someone’s phone. Homeowners can also use this feature to create a new shopping list. All of this has the potential to change the way homeowners interact with their refrigerators moving forward. There are a lot of local stores that carry the latest in smart refrigerators, which could make a major difference when it comes to the daily routine in the kitchen.

4 Big Incentives for Homeowners to Sell Now

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4 Big Incentives for Homeowners to Sell NowNow is a great time to sell a home. Inventory is down to historic lows, according to recent reports, which means it’s a sellers’ market. Yes, many homeowners are reluctant to put their homes on the market for a variety of reasons. However, right now there are four big incentives for homeowners to sell, despite these objections.

Unsure Of Being Able To Find A New Home To Purchase

It is good to sell at high prices, but that might leave a homeowner desperate to find a new home. Not exactly.

Buyers are entering bidding wars in order to secure their new dream homes. Using leverage, a homeowner could sell to a buyer but have a stipulation where they lease their home back to the new owner until such time as the homeowner has time to get themselves a new house.

Uncertainty About Being Able To Obtain Top Market Price

It is understandable that homeowners want to be able to recoup the cost of improvements they have made along the way, along with some profit. When neighbors are getting top dollar, homeowners might want the same kind of guarantee if they put their own home up for sale.

The bidding wars have become so common that it is almost guaranteed that a homeowner will get the asking price at a minimum.

Do Renovations Need To Be Completed First?

It is common for homeowners to “put down their brushes” and think about just moving instead of finishing renovations, but will there be a heavy price to pay for selling an unfinished house?

Not in this market. Currently, buyers are willing to overlook most repairs in order to get into the house they want, including unfinished renovations. If you’re a homeowner worried about every little unpainted patch on the wall, rest assured your prospective buyers won’t even flinch.

Worries About Getting A Quick Closing

Homeowners are worried that they might not get a quick closing. Why? Because the longer the closing date is pushed out, the higher the chances that a sale will fall through.

If you’ve been on the fence about selling, it’s time to choose sides. There’s never been a better time to sell. Talk to your real estate agent today to start the listing process.