Q: Does the federal government offer home improvement programs?
A: Yes. Among the most popular:
- Title 1 Home Improvement Loan. HUD insures the loan up to $25,000 for a single-family home and lenders make loans for basic livability improvements – such as additions and new roofs – to eligible …
Q: Should I avoid an adjustable rate mortgage?
A: Because adjustable rate mortgages, or ARMs, fluctuate with the market, they offer less stability than fixed-rate loans. If an ARM is adjusted upward, monthly payments will increase, and for a lot of people that can be too big a risk …
Q: Do I have to be concerned with building codes and permits?
A: Depending on how your contract is written with the home improvement professional, either you or the contractor will be responsible for securing government approval to perform most remodeling jobs.
Building codes set minimum public-safety standards for …
Q: Why do most homebuyers prefer a fixed-rate mortgage?
A: Long-term, fixed-rate mortgages are preferred by most homebuyers because they offer security and stability. The interest rate does not fluctuate over the life of the loan, so the total amount of principal and interest always remains the same. The monthly …
Q: What is a bridge loan?
A: It is a short-term bank loan of the equity in the home you are selling. You may take out a bridge loan, or interim financing, to help with a knotty situation: closing on the home you are buying before you close on …
Q: Is a reverse mortgage good for elderly homeowners?
A: A reverse mortgage is an increasingly popular option for older Americans to convert home equity into cash. Money can then be used to cover home repairs, everyday living expenses, and medical bills.
Instead of making monthly payments …
Question of the Day
Q: Are fees and assessments owed a homeowner’s association deductible?
A: Generally not because they are considered personal living expenses. But if an association has a special assessment to make capital improvements, condo owners may be able to add the expense to their cost basis …
Q: Is it true some lenders grant loans based on very little documentation?
A: Not too long ago, they offered in abundance what are called “stated income loans," more commonly referred to as “no doc” or “low-doc" loans, mortgages that require no documentation or little documentation to verify …
Q: What are conventional loan limits?
A: These are limits imposed by Fannie Mae and Freddie Mac on the amount of money you can borrow to finance a home purchase. The loan limit generally increases each year and applies to single-family homes in the 48 contiguous states, with higher limits …
Q: Are there standard ways to determine how much a home is worth?
A:Yes. A comparative market analysis and an appraisal are the two most common and reliable ways to determine a home's value.
Your real estate agent can provide a comparative market analysis, an informal estimate of …