Can you use a Reverse Mortgage to buy a home?

Fallbrook News

Did you know that a Reverse Mortgage could be used to purchase a home?

Meet the Home Equity Conversion Mortgage (HECM) for Purchase. Buyers must be 62 or older to qualify. It’s a federally-insured loan. As long as you live in the home, you will never make a mortgage payment. The loan increases over time and the interest accumulates and is added to the principal balance. The balance is due when you sell, move out for 12 months or more or die.

The catch: it requires about a 50% down payment. That creates enough equity to cover the accrued interest on the loan. The down payment can come from the sale of another home, from savings or a gift from a family member.

You just can’t borrow the down payment. Most folks will use the proceeds from the sale of a home as their down payment.

By |2018-12-12T08:40:54+00:00December 29th, 2018|

Is real estate still one of the best investments you can make?

Fallbrook News

The Great Recession’s impact on the housing industry has some people wondering if real estate is still a great investment. After all, home values fell nationwide. But as the saying goes, time really does heal all wounds.

If you look at real estate over a long period of time, home values have proven to be resilient. In fact, more than half of U.S. homes are now worth as much or more than they were at the peak of the national housing boom in April 2007! National home prices are expected to rise another 5.5 percent this year.

By |2018-12-12T08:39:58+00:00December 20th, 2018|

Dec. 15th – Santa Visits the Neighborhood

Santa Visits the Neighborhood

Visits with Santa, activities with Santa’s elves, holiday music, cookies and hot chocolate. Bring your camera to capture the memories!

A FREE event for the whole family!

Santa will be there 10 AM – 12 PM & 2 – 4 PM

Neighbors
575 Fallbrook Blvd
Suite 102
Lincoln, NE

View Event

 

By |2018-12-12T08:38:12+00:00December 12th, 2018|

Are you ready to live in a condo?

Fallbrook News

Owning and living in a condo is quite different than a single-family home. Understanding the pros and cons in advance of making your move to a condo is important for a happy transition. The most important difference? You’re part of a Condo Association and you have to follow its rules.

The Association also takes care of maintenance, such as exterior painting and landscaping. Regular maintenance costs and expenses like water, sewage, and garbage are often included in your monthly Homeowners Association (HOA) dues.

A portion of your HOA dues is set aside for reserves to handle things like a roof replacement. However, if the reserves are not adequate, you could get a special assessment. That will be split among condo owners to cover the needed repair. Look closely at the reserves before you buy.

By |2018-12-12T08:38:47+00:00December 7th, 2018|

The one thing that home buyers won’t compromise on

Many home buyers are willing to compromise on certain characteristics. They’ll give in on price (21%), the condition of the home (19%), the size of the home (18%), and even the distance of the home to their place of work (13%).

But according to the National Association of REALTORS®, the two characteristics home buyers are least willing to compromise on are the quality of schools and distance from schools. Just 4% of recent buyers compromised on the distance to schools, and a mere 2% compromised on the quality of schools.

Twice as many recent buyers were willing to compromise on both the quality of the neighborhood and the distance of their home from family and friends.

By |2018-11-06T08:16:48+00:00November 27th, 2018|

Are men or women buyers more likely to compromise?

Real estate is all about compromise. Did you know that 76 percent of all sellers make at least one concession or compromise? The top concession is lowering the sales price (34 percent), according to a Zillow survey.

What’s surprising is that there’s a big different between women and men when it comes to compromising during a home purchase. NAR (National Association of REALTORS®) research shows that women are better overall at compromising than men. In fact, single males are much more likely to not make any compromises during a home purchase than single females, married couples and unmarried couples.

There are generational differences, too. Millennial sellers – 85 percent – make the most compromises to finalize a home sale, Generation X is next at 75 percent, followed by Silent Generation sellers at 70 percent, and Boomers at 67 percent.

By |2018-11-06T08:15:51+00:00November 19th, 2018|

How to get started as a real estate investor

There’s more than one way to become a real estate investor. The fastest, easiest way is to invest is in REITS (Real Estate Investment Trusts). They’re as easy to buy as a stock or mutual fund since you’re not buying a physical property. Made up of commercial real estate, these Trusts include office buildings, retail, apartments and hotels.

You can also buy a 2-4 unit complex, live in one unit and rent out the rest. With this strategy, your loan can be an owner-occupied, Fannie Mae loan. That means a lower interest rate than a standard non-owner occupied loan for a standard rental property. If you decide to purchase an investment property, just make sure you have more money coming in than going out!

By |2018-11-06T08:14:50+00:00November 10th, 2018|

The biggest home-improvement mistake that folks make

Homeowners are expected to spend a near record $317 billion on home improvement this year. The trend is expected to continue, as areas have fewer homes for sale and homeowners have little incentive to move from homes with record low fixed mortgage rates, experts say.

What’s the biggest home improvement mistake that most folks make? Over-improving one’s home can be the costliest, housing experts say. Remodeling magazine found that only attic insulation netted an immediate return on investment (108%). A new entry door was next best (91%). Even the popular minor kitchen remodel only netted an 80% return.

In time, these improvements will net a return. But sometimes homeowners customize and overspend, thinking they’ll sell at a profit in the future, but are unlikely to ever recoup their investments.

By |2018-10-10T09:42:39+00:00November 2nd, 2018|

The scariest thing about being a first-time buyer

One of the scariest things about being a first-time buyer is the unknown. It’s probably one of the main reasons 90 percent of all buyers do hours of online research before deciding to buy a home.

The entire process can be stressful. It’s complicated. It’s filled with paperwork. It’s most likely the biggest financial decision of your life. And it’s peppered with deadlines and boxes that must be checked or the entire deal can fall apart!

Real estate agents are here to uncomplicate the buying process for you. An agent is your matchmaker: he or she will help you define the qualities of your dream house and work hard to turn that dream into a reality. And since they’re pros, they’ll manage the deadlines and check those countless boxes for you so you can make an offer on your dream house with confidence.

By |2018-10-10T09:41:25+00:00October 22nd, 2018|

Is renting to buy still an option?

Sometimes the desire to own a home is so great that renters just can’t wait, even if they don’t have a down payment to buy a home. How do they do it? Through a contract with a seller called a lease-to-own agreement.

While it’s rare to see in a seller’s market when inventory is low, there are times when sellers will offer this arrangement. Basically, this is a delayed agreement to purchase the home in the future at a price that is fixed today.

How it works:

  • The amount of the rent is above the going-market rate.
  • Extra funds above the market rate will count towards the renter’s down payment in the future when the home is purchased.
  • Lenders typically still allow those above-market funds collected to count towards a down payment as long as everything is documented.
By |2018-10-10T09:40:01+00:00October 12th, 2018|