Hot Topic: FHA or Conventional Loan?
Wondering which home loan will be best for you? Here’s some helpful tips
Lots of buyers have been questioning which loan is best for them and their situation. Honestly, it does depend on just that – your situation. We have put together some information on both of these loan options to make it easier for you to decide what you think is best for yourself! Some of the biggest, but most simple differences between FHA and conventional loans are based on their guidelines and who can apply for them. FHA loans are government backed programs that require a minimum 3.5% down payment. These loans tend to be best for borrowers with lower credit than necessary to apply for a conventional loan.
Conventional loans are open-market and are geared for people with a higher credit score, typically near 700 or higher. Rates tend to be a bit lower, and in most cases no Mortgage Insurance is required.
FHA used to be a much more expensive option, but after FHA MIP reductions in 2015 it is now a real competitor. However, FHA can tend to be more strict in requirements than a conventional loan is.
What does an FHA Loan Require?
FHA loans require homes to have the following in good working order:
- stove
- heat
- functioning roof
- locking doors and windows
- non-lead based paint
If you are looking to buy a condo… it can only be in a FHA approved community. So if you are choosing FHA, you may have less home options available to you. FHA loans also require you to purchase mortgage insurance which protects the lenders from a loss. In January of 2015, the FHA reduced the annual mortgage insurance premium on a 30 year fixed rate from 1.35 % to 0.85% of the loan balance. This is leading to huge savings for many who want a condo but just don’t have the larger down payment.
Okay, so which home loan should you choose?
There isn’t one specific answer that fits everybody. It all depends on you, your needs and wants, and what you can afford to choose. If you plan on owning your home for 6-10 years and you don’t mind refinancing to cancel your mortgage insurance you might choose FHA. If you can put 5% down, you plan on keeping your home for 10-20 years and you don’t like the idea of paying mortgage insurance for thirty years you may choose conventional!
If you are looking into buying a home and need help finding one along with deciding which loan option is best for you – we can help! We work with a lot of amazing lender contacts locally here in Orange County that we would love to set you up with. We like to match-make our clients with lenders that we think will benefit them the most. Depending on your personality, wants/needs, and what kind of loan you are interested in all helps us decide which lender will be best for you! Fill out the form below or contact Angie at 949-338-7408 for more information 🙂
Is it time to hire a property manager?
Thinking about hiring a property manager? Here’s some reasons why you might want to!
Are you having to move away but want to keep your current home and just don’t have the time to take care of it or deal with renting it out to someone else? Do you own multiple properties and don’t have the time to take care of one or more? Are you frustrated with trying to find a renter for your home but need to get it done? Any of these situations are when hiring a property manager comes in handy and really benefits you! Did you know AskAngie team is willing to be your property manager and take these tasks off your shoulders? Well we are, and we can’t wait to share how with you!
We can think of lots of people who would benefit from this process but here is a few on our list:
- Active military or veterans who are moving to a different location
- Seniors looking for additional income without hassles
- Busy executives who travel
- Active duty military who are deploying
- A landlord who needs some extra help
- Relocating for a job but know you want to move back to your home in sunny California someday
What will we do for you as your property manager?
Helping you take care of your home while someone else lives in it is something we are experienced and know how to do for you. We know dealing with this can be such a hassle, and we are ready to make it easier and smoother for you!
- We will do all the advertising for you that you will need in order to find you the perfect renter for your home! We will initiate, sign, and renew any leasing agreements as well as any terminations that may need to be done, so that you don’t have to worry about the paperwork.
- We always run credit reports and verify previous tenancy when looking at a potential renter. We also have access to run a complete background check if needed!
- We will handle getting any repairs or maintenance work that needs to be done, done for you! Living far away from your property or being busy with work can make it hard to be on top of repairs and maintenance your renter may want or need, but don’t worry – we’ve got it handled for you!
- We take care of issuing any notices like past due rent or notices to vacate.
- Contracts, expense payments, and security deposits is so much to worry about and make sure you get done, but once again we would do it all for you so there would be no worrying necessary!
Honestly, just kick your feet up and relax – we’ve got this!!
We take care of all the heavy lifting as well as being a professional shoulder to lean on while renting our your home. It really does take so much weight off your shoulders!
How much do Orange County Property Management Services cost?
I’m sure you’re wondering what cost all this work comes at, so here it is:
for a single family home, townhouse or condo we charge only $175 a month to take care of all of these things for you.
Multiple units would depend on the number of units that property had, but it usually ends up being about 5% of the total gross rents from that particular property.
What do you have to lose besides for some extra stress? If this feels like something you need to take advantage of, give us a call today at 949-338-7408! We look forward to hearing from you 🙂
CIPS – Why we think International Real Estate is so important!
First of all, what even is a CIPS?
That is what AskAngie team is here to explain! CIPS stands for Certified International Property Specialist, which means that we are designees that have been trained and certified on how to help you with your international real estate needs. We are well informed on how different cultures interpret people and real estate. CIPS designees are prepared to work with international clients, international funds, as well as American clients who choose to buy internationally. We are relied on because of our expertise in international real estate.
Why do we need Certified International Property Specialists?
Global business and international real estate have expanded a lot so these designees are need more now than ever before! Recently, foreign buyers have spent a lot more money in real estate – to the tune of over 1 BILLION per year. Earning the CIPS title makes agents more creditable and resourceful. CIPS have access to a wide network of professionals that can help you with your property needs around the world. Through research we are able to protect you from losing property or buying in a country where you don’t actually ‘own’ your home. We make sure you are buying legitimate properties wherever you may be looking! People are moving from foreign countries to the US every single day and many Americans look into property overseas as well. Because of the work Certified International Property Specialists do, these home owners are able to have a smooth and reliable transition into their new space (or out of their old)!
Watch this video on why we think CIPS is an important designation!
We recommend if you’re thinking about buying out of the country, call us at 877-230-3211 or text Angie at 949-338-7408 to take advantage of the CIPS education and put it to work for your real estate needs! 🙂
​ Duplex in Los Angeles just 449K
Opportunity knocks, and it’s twice as nice for this LA duplex! Located close to parks, freeways, & fun, this classic fixer has so much potential.
Not yet on MLS: 3710 McKenzie Avenue, Los Angeles
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More about Homeownership Day / OC Home Fair
What is an AITD? An All Inclusive Trust Deed is basically when the buyer takes over the seller’s existing loan. And NO, it doesn’t have to be an ‘assumable loan’ … The current lender is actually not even notified!
