Friday, January 31, 2014

Happy Apartment Hunting!

Just because you've managed to sign a lease for an apartment and give a company your money before, does not mean you did it correctly. Finding a realtor you trust, hunting down the elusive "perfect" apartment in your price range, and securing it can be an adventure.CACC is here with guidance to help ensure you have as easy of an experience as possible!


We like to think that all people are good, yet unfortunately that's not how life tends to play out. It is imperative to make sure your management company/landlord is reputable. Just because a company is widely known, does not make it a safe bet. Having a harassing or neglectful landlord can ruin your apartment experience. Credit Advocates reccomends looking up reviews for your potential management company and asking people who currently have an apartment managed by that company if possible. Landlords tend to assume that tenants are not aware of their rights - which is often correct - thus charge tenants illegal fees or other things landlords are not permitted to do. Additionally, landlords cannot enter your apartment without your permission! 

Tenant rights in New York City: http://www.nyc.gov/html/hpd/html/tenants/tenantsrights.shtml
Tenant Rights in Boston: http://www.mass.gov/ocabr/docs/tenantsrights.pdf 


When seeing apartments keep these questions in mind:
  • Is there a dishwasher
  • Is there a washing machiene & dryer? If so, where are they? 
  • Is there a basement? Look and smell around for mold. Look for wet spots and water damage. This should be done in the bathrooms too. Mold can bother your allergies, cause or worsen asthma, or cause more serious health issues. 
  • Are there signs of pests? Look for chewed corners or holes in ceilings or walls.
  • Noise. Know who your neighbors are. College students tend to make more noise than the elderly. If you plan on having loud gatherings or want a peaceful experience, make sure to take notice of your surroundings.

Things to make sure you take note on a lease before singing
  • Amount needed to secure your apartment & get it off the market - usually first & last months rent and a security deposit (typically 1 months rent - more then that is illegal)
  • If utilities are included
  • Ability/provisions for subletting 
  • If pets are allowed (if so, if there is an extra deposit)
  • Key deposits (front & unit door, mailbox, gate, or parking lot entry) 
  • Rules of conduct, quiet hours, & guest policy 
  • Parking policy & fees 
  • Rent due date and where/who it needs to be paid to 
  • If there are any repairs you need done prior to moving in & dates for these repairs or cleaning of the carpets. Make sure you have a phone number and email address to use to request maintenance
  • How you will do your laundry 
  • Where and when to dispose of your garbage & recycling 

Lastly, before you see apartments with your realtor be aware of the realtor fee. This fee is typically (and cannot be more than) 1 months rent. 




Credit Advocates strives to get as much useful information out to the public as possible. If there is an unanswered question on Housing OR Credit Counseling email me at rsimon@creditadvocates.org and I will answer any & all questions here on the blog! 


Protecting your rights begins by knowing your rights!

Thursday, January 16, 2014

Federal Housing Administration Loans

The Federal Housing Administration (FHA) has been helping people become homeowners since 1934. The FHA is part of the Department of Housing and Urban Development (HUD) Office of Housing. The FHAhas helped finance military housing for returning veterans and their families during the 1940s. Since the 1940s, FHA programs have aided in the production of millions of units of privately-owned apartments for the elderly, handicapped, & lower income Americans. The FHA and HUD have insured over 34 million home mortgages and 47,000 multifamily project mortgages since 1934. Currently FHA has 4.8 million insured single family homes and 13,000 insured multifamily projects.

FHA Loan Programs 


Refinance Programs
- Loans do not have to be FHA loans to be refinanced into a FHA loan
- Increased loan limits allow a low rate on loan amounts up to $729,750 in some counties - click here to see the loan limit for your county 
- Refinance up to 97.75% of your home's value 
- Apply here to learn if you qualify to refinance your mortgage into a fixed FHA mortgage & no out of pocket closing cost 
- With the the help of FHA you maybe able to refinance your home into a lower monthly payment & be assured that your monthly principle & interest payments never increase   

Home Purchase Mortgage 
- The most important step in purchasing a new home is getting a pre-approval letter for a home loan 
- A pre-approval letter allows you to look for a home and make an offer while giving the seller confidence in you as a buyer because you have already been pre-approved for your loan amount 
             
          Types of FHA Mortgages
  1. Fixed Rate Mortgages (Section 203b) - FHA issues mortgages made by qualified lenders to people purchasing or refinancing a home of their own 
  2. Adjustable Rate Mortgages (Section 251) - Insures home purchasing or refinancing loans with interest rates that may increase or decrease over time, enabling customers to purchase or refinance their home at a lower initial interest rate
  3. Graduated Payment Mortgages (Section 245) - Enables a household with limited income but is expected to raise the total income to buy a home sooner by making mortgage payments which increase in size 
  4. Growing Equity Mortgages (Section 245a) - Alike the Graduated Payment Mortgages, enables a household with limited income but is expected to raise the total income to buy a home sooner by making mortgage payments which increase in size however, the increased payments are applied to reduce the principal owed on the mortgage thus shorten the mortgage term 
  5. Energy Efficient Mortgages - Energy Efficient Mortgages Program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy-efficient features to new or existing housing as part of their FHA-insured home purchase or refinancing mortgage 
  6. Mortgages for Condominium Units (Section 234c) - Insures the loan for units bought within a condominium building 
Jumbo Loans 
- HUD offers temporary FHA Jumbo loan limits ranging from $271,050 to $729,750 
- Change in loan limit intended to provide economic stability to America's communities and the maximum amount will only be applicable to high-cost metropolitan areas 
- Previously the loan limits for high-cost metropolitan areas were capped at $362,790 however the Economic Stimulus Act of 2008 permits the FHA to insure leans on amounts up to 125% of the area median house price 

Home Improvements
Guidelines for Home Improvement Loans (Purchase or Refinance)
-  Section 203(k) program is the department's primary program for the rehabilitation and repair of single family properties 
- This is an important tool for community & neighborhood revitalization and for expanding homeownership opportunities 
- Apply here to see if you prequalify for the FHA 203K Rehab Loan

Reverse Mortgages
FHA Assistance for Seniors
- Homeowners 62 and older who have paid off their mortgages or only have a small balance remaining are eligible to participate in HUD's reverse mortgage program 
- Homeowners receive payments as a lump sum or on a monthly basis (for a fixed term for a long as they live in the house) or on an occasional basis as a line of credit 
- Unline typical home equity loans, a HUD reverse mortgage does not require repayment as long as the borrower lives in the home - lenders recover the principal plus interest when the home is sold & the remaining value goes to the homeowner or whomever he/she stated 
- There are no asset or income limitations on borrowers receiving HUD's Reverse Mortgages & there are not limits on the value of homes qualifying for a HUD Reverse Mortgage 
- See if you prequalify online for a HUD Reverse Mortgage here 

Home Equity Loans - Home Equity Line of Credit (HELOC)
A Home Equity Loan or Line of Credit may be right for homeowners who prefer:
- Access to funds for a one-time expense 
- Security of a fixed interest rate & fixed monthly payment 

With a Home Equity Loan you get:
- The full loan amount up front
- Fixed interest rate 
- Fixed monthly payment 
- Predictable payoff schedule  

- A Home Equity Line of Credit (HELOC) is a home loan that permits borrowing up to a pre-approved "credit line" using their home's equity 
- FHA HELOC is credit that allows the homeowner to borrow up to a pre-determined amount set by the mortgage lender unlike a conventional home loan when the amount borrowed is the total amount financed 
- HELOC allows flexibility to choose how you receive and use your money 
- Apply here to prequalify 

 VA Loan Programs
- Veterans, active duty military personnel and certain members of the reserves and National Guard are offered a special VA Home Purchase Program & VA Refinance Loans


A to Z FHA Program Index
Online Prequalifications  
Contact an Expert at FHA!



All Credit & Housing Counseling questions can be emailed to rsimon@creditadvocates.org. Don't forget to return to Credit Advocates' blog to continue learning about other Housing and Credit Counseling topics!



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