Sunrise Homes & Renovations, Inc.

Reviewing The Basement Options For Homeowners: What To Know

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Reviewing The Basement Options For Homeowners: What To KnowEven though not every home has a basement, those that do usually fall into one of three categories. The most common examples of basements include poured concrete, masonry block basement, and precast panels. What do homeowners need to know about the different types of basement construction? 

Concrete Basements

Concrete basements are the most common examples. There are several advantages of going with a concrete basement. First, concrete basement walls are resilient. They can resist possible cave-ins, standing up to natural pressure created by wind, water, and soil. Furthermore, concrete basements are also fire-resistant while creating joint-free basements that can increase property values.

Even though concrete basements are water-resistant, hydrostatic pressure can allow water to permeate over time, creating mold and mildew issues. Homeowners need to keep a close eye on the humidity of a concrete basement to make sure this is not happening in their homes.

Block Masonry Basements

Another popular type of basement is called a block masonry basement. This structure is created with cinder block or masonry units that are connected to one another. Ultimately, this creates a waterproof structure. This is a highly resilient, cost-effective construction option that is much easier to install. Therefore, homeowners can save money on labor and materials. The walls are also more durable if they are reinforced using a steel rebar. 

Precast Panel Basements

Finally, homeowners may also encounter a precast panel basement. These usually involve concrete panels that are molded in a different location before being transported to the construction site using a crane. Typically, these walls are strong and resilient. They do provide waterproof qualities, but if the joists have been neglected, they can develop moisture penetration issues. These panels also have to be treated with boric acid to prevent pest infestations. 

Options For Basements: Homeowners Should Work With A Professional

Ultimately, there are plenty of options available when homeowners are looking to construct the basement. Examples include full basements, partial basements, walkout basement, and crawl spaces. Homeowners need to work with a construction professional who has experience building basements. Each option has its individual benefits and drawbacks, so homeowners need to inquire about permits and environmental factors that might make one type of basement superior to another. 

 

The Average Length Of Homeownership For Most Families

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The Average Length Of Homeownership For Most FamiliesIt is critical for everyone to find a home that is right for them. Given the current lack of inventory, this can be a significant challenge. Fortunately, the National Association of Realtors (NAR) keeps track of numerous market aspects, including how long the average family stays in a home. For the past few decades, the average family has stayed in their home for approximately six years; however, during the past few years, that average has gone up to nine years. This means that the average homeowner is keeping his or her house longer than he or she did in the past. Why is this happening?

Why Are Families Staying In Their Homes Longer Than Before?

There are numerous reasons why this might be taking place. First, the real estate market crashed just over ten years ago. When home prices fell, homeowners were worried that they would not be able to sell their home at a price that would pay off their mortgage, also known as a home sale. Therefore, they decided to stay in their homes longer until their homes recouped their value.

In addition, there was a lot of uncertainty about the economy, causing some homeowners to think twice about making a move. They might have been worried that they wouldn’t have the money to cover emergency expenses if they paid for a move.

Finally, the homeownership rate among the younger generation, including those getting ready to have kids, has still not caught up to previous generations. When this generation starts to look for better school districts or more room, they might start looking for houses, causing them to move more frequently. Because they might not currently own homes, they are not selling homes, and thus not bringing down the median tenure.

What Is The Impact On The Housing Market?

So, what does this mean for the housing market? If families are moving frequently, they might not be in houses that are right for their family circumstances. As a result, baby boomers who are looking to downsize or parents with multiple children in a 2-bedroom house might be looking to move in the foreseeable future.  Given the current lack of inventory, this might be a bit of a challenge.

Financial Preparation: Millennials Are Getting Ready To Buy Homes

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Financial Preparation: Millennials Are Getting Ready To Buy HomesIn the current economy, there are a lot of millennials who are thinking about buying a home; however, the price of homes is rising quickly. It can be challenging for millennials to save the money they need to buy a home. When this is combined with other monthly expenses they have, millennials might be financially unprepared to buy a home.

Finding the right house takes patience and discipline, so millennials need to avoid jumping in unprepared. What do millennials need to do to make sure they are ready for the expenses that come with owning a home?

Be Aware Of How Much Money Is Required

The first thing that millennials need to do is make sure they have enough money saved up. If prospective homeowners do not have enough money saved up, they could be denied financing by a lender. Conventional mortgage lenders will ask for 20 percent down to avoid PMI, but it might be possible for homebuyers to get a home for as little as 3.5 percent down from some lenders. If the home costs $250,000, then 3.5 percent down is going to be $8,750. If prospective homebuyers have less than this saved up, they could be denied a loan.

After saving up enough money for the down payment, homebuyers also need to cover closing costs. This could include the inspection, the appraisal, and any fees that come from the closing attorney. Even if millennials have parents and grandparents to help them, they still need to save up an emergency fund to cover any possible repairs that are needed. It is a solid rule of thumb to save up and move at least three to six months of emergency money in a liquidity fund. If this money is not there, it might be better to wait.

Millennials Should Wait For The Right Time Instead Of Jumping In Unprepared

Even though it is a great investment to own a home, it is better to wait for the right time instead of jumping in unprepared. Millennials need to make sure they have enough money saved up for a down payment. Then, they should have an additional two to five percent of the loan’s value saved up to cover closing costs. Finally, homeowners should also have a liquidity fund with three to six months of living expenses set aside.

 

An Overview Of Umbrella Insurance: How It Works

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An Overview Of Umbrella Insurance: How It WorksAccidents can happen from time to time, which is why it is important for people to have insurance. While you might be able to fix some accidents on your own, others can lead to a significant amount of financial stress. This is why people must have insurance. Insurance is supposed to help individuals and families pay for catastrophic expenses; however, what happens if the insurance policy is not big enough to cover the expenses? That is where umbrella insurance can be helpful. What is umbrella insurance, and how does it work? Learn more about how umbrella insurance might be able to help you.

Umbrella Insurance: A Definition

Umbrella insurance provides extra liability that goes above and beyond the limits of other existing policies. If the policyholder is at-fault for damages and the existing insurance policies are not enough to cover the damages, the umbrella insurance kicks in. In addition, umbrella insurance provides coverage for other items, such as legal fees, that other policies might not cover. Umbrella insurance can cover a wide range of issues that could provide important financial protection.

What Does Umbrella Insurance Cover?

Umbrella insurance acts as a fail-safe to protect you and your family against lawsuits that are directly related to accidents that could result in a personal injury lawsuit. Furthermore, umbrella insurance can cover landlord liability, defamation, and a number of other tricky financial situations, depending on how your policy is structured. Your umbrella policy will have a liability limit; however, your policy might continue to cover associated legal costs above that specific limit, depending on the wording of your policy. Because details and exclusions can vary between policies, you should ask a professional for help if you have questions.

What Umbrella Insurance Does Not Cover

Unlike some insurance policies, umbrella insurance will not cover the damages and injuries of the policyholder. This means that if you sustain property damage, your umbrella insurance policy might not cover this. In addition, there are limits to umbrella insurance with respect to breach of contract cases. Finally, umbrella insurance also does not cover intentional acts or criminal issues. It is critical to read the policy carefully to understand what is covered and what is not.

What To Know About Home Loans for Renovation Projects

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What To Know About Home Loans for Renovation ProjectsWhen people are looking for a home, they are often looking for something that is move-in ready. While this might make the process easier, this can also make the home much more expensive. It is still possible to find a dream home even if the house requires a bit of renovation. This is also a great opportunity for homeowners to customize the home to meet their needs. What do potential homeowners need to know about taking out a mortgage to renovate a fixer-upper when compared to a conventional home loan? Take a look at some helpful information below.

When Buying A Fixer-Upper Is The Right Decision

There are several situations where buying a renovation project might seem like the logical decision. Remember that these projects are going to take time and money, so homeowners need to have both of these resources to complete the project. Of course, these projects are going to require a lot of construction skills, so it is important to either have the equipment and expertise or be willing to hire someone to do this. Furthermore, it is critical to look at the value of the property once the project is done. What type of return should homeowners expect after they finish the project? It should meet the needs of the homeowner while also providing a significant return.

Understanding The Financing Options

Homeowners are unlikely to have the cash to pay for all of these out of pocket, so it is important to take a look at a few financing options. An FHA 203k Mortgage is often a great option for those with a credit score of 580 or higher. These loans can cover a diverse array of construction projects.

There are also Fannie Mae HomeStyle Renovation Loans, which allow people to borrow up to 50 percent of the total value of the home for the project. Homeowners can also borrow against projected equity instead of having to wait to take out a traditional cash-out home refinance. This loan requires a credit score of 680 or higher and the renovation must be completed in less than 12 months.

These two loan options could be helpful for those who are looking to complete a home renovation project.

HOAs: What Do Buyers Need To Know?

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HOAs: What Do Buyers Need To Know?There are many factors that buyers need to consider when they are evaluating a potential property. Sometimes, buyers run across properties that have to deal with something called a Homeowners’ Association, or HOA.

What Do HOAs Do?

An HOA ensures that communities look their best and function well. While HOAs were unusual several decades ago, they are becoming more common. HOAs are typically governed by a board made up of people living in the neighborhood. By ensuring properties look their best, property values could remain high; however, there could also be restrictive covenants in place.

How Much Do HOAs Charge?

HOAs can vary widely from place to place. Fees are usually charged monthly, quarterly, or annually. While some HOA fees might be less than $100, some HOA fees can be a few thousand dollars per year. HOA fees vary significantly depending on the number of people in the community and the amenities in the neighborhood.

HOAs use this money to take care of common areas in the community. For example, HOA fees are usually used to pay landscaping companies to take care of the common areas. HOA fees can also be used to take care of swimming pools, tennis courts, and golf courses that could be in the neighborhood. If there is security, the HOA fees are used to compensate that as well.

What Restrictions Can An HOA Put In Place?

There are many restrictions an HOA could place on a homeowner; however, these vary from neighborhood to neighborhood. Most of these restrictions involve the exterior of the home, as the point of these restrictions is to keep a homeowner from doing something that could adversely impact the home values of other properties. There might be restrictions on the size of trees, certain landscaping work, and patios. Make sure to take a look at these restrictions before buying a home.

HOAs Have Their Benefits And Drawbacks

Like other factors involved in buying a home, HOAs have their benefits and drawbacks. It is critical to work with a lender who understands how to read HOA covenants before making a decision. HOAs can play a significant role in what people can do with their home.