10 Financing Options to Consider

When it comes to purchasing a home, exploring various financing options is essential. While many people are familiar with traditional mortgage options, there are lesser-known alternatives worth considering. Whether you’re a first-time buyer or looking to invest in real estate, it’s crucial to discuss these financing options with your real estate agent or mortgage professional during the pre-approval process. Here are ten financing options that could help you achieve your homeownership dreams.

1. Downpayment Assistance Numerous state and local programs cater to first-time and repeat homebuyers, offering downpayment assistance. Programs like the Florida Bond Program and the Hometown Heroes program specifically target teachers, healthcare workers, and first responders. To explore available options, visit websites like downpaymentresource.com.

2. FHA Loans Federal Housing Administration (FHA) loans are known for their low downpayment requirement of just 3.5%. They also have more lenient qualifying guidelines. However, it’s important to note that FHA loans come with mortgage insurance that remains in effect for the entire loan duration.

3. VA Loans For eligible veterans and active-duty service members, VA loans provide a compelling option. These loans do not require a downpayment or mortgage insurance. By comparing different programs, lenders can help determine the best fit for your specific circumstances.

4. USDA Loans USDA Rural Development loans are available in designated areas of Florida. Lenders or loan program maps can identify these areas. These loans offer a no-downpayment option without the need for mortgage insurance, provided applicants meet income and loan limits.

5. Conventional Loans Conventional loans allow buyers to make downpayments as low as 3% or 5%. However, qualifying guidelines are generally stricter compared to government-backed loans. Interest rates for conventional loans depend on factors such as the borrower’s credit score and loan-to-value ratio.

6. ARMs (Adjustable-Rate Mortgages) While some buyers may be hesitant about adjustable-rate mortgages (ARMs) due to their association with the Great Recession, today’s ARMs are typically hybrid loans. These loans remain fixed for an initial period of 5, 7, or 10 years before adjusting. There are caps on how much the interest rate can adjust annually after the fixed period and over the life of the loan.

7. Assumable Loans Only government loans are assumable, meaning they can be transferred from the original borrower to a new buyer. However, assumable loans, even FHA and VA loans, are relatively rare in today’s market.

8. Bank Statement Loans Self-employed individuals or those reliant on investment income may face challenges qualifying for traditional loans based on tax returns. To address this, some lenders offer bank statement loans, considering alternative documentation such as bank statements or asset accounts.

9. Buydowns Buyers with additional funds at their disposal can explore the option of buying down their mortgage rate for the first couple of years. This approach involves paying upfront to reduce the interest rate. For instance, a buyer may choose to buy down the rate by 2% or 3% in the first year, followed by 1% or 2% in the second year. Afterward, the rate stabilizes to the original rate for the remaining loan term.

10. Seller Credits Buyers can negotiate with sellers for closing cost assistance based on loan guidelines. Alternatively, instead of reducing the sale price, buyers can request that sellers contribute to a mortgage rate buydown. This allows buyers to secure a lower interest rate, potentially resulting in more affordable monthly payments.

As the real estate market evolves, being aware of these lesser-known financing options can give you a competitive edge in your homebuying journey. Each option comes with its own set of considerations, so it’s important to work closely with your real estate agent and mortgage professional to determine which financing option aligns best with your goals and financial situation. With the right approach and proper guidance, you’ll be one step closer to turning your homeownership dreams into reality.

Experts in Residential Real Estate in Orlando

If you are BUYING or SELLING real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.

Busting Myths That Could Ruin Your Move

Moving can be quite the experience, and I’m sure you’ve noticed that everyone and their dog has an opinion on how to do it right. But hey, don’t let their well-meaning advice mess with your sanity. Moving is already stressful enough without buying into crazy talk and terrible tips. So here’s the deal: there are four common moving myths that’ll totally throw you off track if you fall for them. Consider yourself warned!

1. Free moving boxes might sound like a good idea, huh?

Well, not always.

While it may be tempting to swing by your local liquor store and beg for their discarded boxes, think twice. Don’t underestimate the importance of quality boxes, even if it means spending a few bucks on them.

A good moving box should have top and bottom flaps that can be securely taped shut, convenient side cutouts for easy carrying, and a generally square shape. It’s also essential that they aren’t wider than your shoulders. Anything wider will force you to hold the boxes with your arms stretched out, and that’ll tire you out real fast.

The ideal moving box is made of sturdy cardboard, stackable on a dolly, and features a designated area where you can label the contents. Additionally, the weight limit should be clearly printed on the outside, so you know its capacity without risking any rips or tears.

Here’s a secret advantage of buying boxes: their uniform size makes it a breeze to estimate how many will fit in the truck, based on its dimensions and a little bit of math. Plus, they’re far less likely to fall apart at the worst possible moment.

But hey, if you’re determined to go the free route, be cautious about the boxes you acquire from the grocery store. Opting for produce boxes, for instance, could mean you’re unwittingly bringing unwanted insects along with your belongings to your new home. Yikes!

2. Not all markers are created equal

Instead of randomly grabbing any marker you come across, here’s a useful tip: try color coding the writing on your boxes. This way, it’s easy for everyone to see which box goes where in your new home.

When it comes to markers, it’s best to choose permanent ones that work well on different packing materials. Opt for markers with thicker tips, as they make the writing more legible.

While you’re busy jotting down the contents of each box, don’t forget to include an arrow pointing upwards. This simple addition helps everyone understand how the box should be loaded and carried.

If you have delicate or fragile items inside a box, it’s a good idea to make a note on at least two sides of the box. This way, everyone handling it will be aware of its fragile nature.

Remember, a little bit of organization and clear labeling can go a long way when it comes to a smooth and efficient move.

3. Avoid packing certain things until moving day.

It may be tempting to leave personal items and bedding for the last minute, but that can lead to chaos and items getting misplaced. Instead, follow the advice of the experts and have everything packed and ready on moving day.

Not being prepared is the top reason for unexpected moving costs. If you’re still packing while movers are waiting, you’ll end up paying for their idle time.

Pack essentials like medicines, pet food, toiletries, school items, and a few days’ worth of clothes as if you’re going on a short vacation. This way, you’ll easily find what you need during the first day or two in your new home. Being prepared on moving day not only makes things smoother but also saves you money.

4.  Moving on Fridays

Thinking Friday is the ideal day to move because it allows for weekend unpacking? Well, here’s the truth: Everyone else has the same idea, leading to higher costs. Movers charge more on weekends and at month-end due to high demand. Rates during these times can be 20% to 30% higher.

Additionally, moving companies charge more in spring and summer. Moving during peak times may result in stretched crews and less experienced movers.

Regardless of the moving day, book movers three to four weeks in advance to secure your preferred slot. Debunking these myths can make a significant difference on moving day, reducing stress and increasing bliss.

Experts in Residential Real Estate in Orlando

If you are BUYING or SELLING real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.