Qualify for a VA Home Loan
The Basic Allowance for Housing, or BAH, is a military benefit that comes in handy when applying for an FHA loan or VA home loan because it provides the lender with an easy-to-measure proof of a veteran’s ability to pay a mortgage. While BAH isn’t specifically designed to help military members pay a mortgage, it is an important military benefit for anyone considering taking an FHA or VA loan on that first home. >> Find your BAH rates
When applying for a VA home loan, one of the most important parts of the process is your credit report. While it's true that the VA does not go by your credit score to determine eligibility, your credit report affects your VA loan application in other ways. The VA criteria for examining your credit report includes looking at credit history and patterns over the last 12 months, so it is crucial for you to begin preparing your credit early.
Did you have a missed or late payment earlier in the year? >> Continue
America’s economy and real estate markets continue showing signs of increasing strength. Although the process isn’t complete, right now we’re enjoying a welcome recovery. Columnist Kenneth Harney notes that “during the coming several months we’re likely to see steady but unspectacular national economic growth, and some pretty good housing rebound numbers to boot.” Payrolls showed their largest increase in three years this March, although unemployment still is too high. Additionally, both house prices and sales are picking up now. Home sales will rise 6.5 percent this year, predicts the National Association of Realtors (NAR). Prices also will increase almost three percent in 2010, NAR adds.
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Most Americans find their home makes up the largest single portion of their net worth. So it’s important to manage your real estate investment wisely if you want to gain the most satisfaction from your home. Fortunately, you don’t need to take on unnecessary risk to reach this goal. Many owners have found that simply paying off their mortgage greatly increases their financial security.
Being able to retire without monthly home loan payments, for example, makes life a lot easier. To accomplish this, a 15-year mortgage helps some households quickly reduce the amount owed on their loan. But what if you plan to retire in a decade, and know your income will drop at that point? Obtaining a 15-year home loan now will give you enough time to shrink the principal amount before you retire. Someone borrowing $300,000 with a 15-year mortgage today would owe just $126,000 after ten years. You then could refinance into a 30-year mortgage.
Your monthly payments would plummet, due to your smaller loan amount and longer payback period. But if you had initially taken out a 30-year loan instead of the 15-year mortgage, your housing cost wouldn’t drop as you entered retirement. No strategy is helpful for everyone, of course. But this example shows the opportunities available for managing your housing asset so that you gain the largest benefit possible from owning a home. Whether you’re thinking about buying your first home or planning for a secure retirement, we’re ready to help you reach your goals. We’ll show you how different approaches would work in your situation, and review the pros and cons with you.
Tough times are causing many households to look for ways to boost their income. However, jobs aren’t as plentiful now as they were before America’s recent recession. But that condition could change in the future, according to Business Week magazine. It cites two new studies which forecast a growing need for workers once the economy recovers.
An important dynamic is that America’s baby boom generation is starting to leave work. “If the baby boom generation retires from the labor force at the same rate and age as current older workers, the baby bust generation that follows will likely be too small to fill many of the projected new jobs,” say the researchers. It’s estimated that more than 15 million new jobs will become available by 2018. Yet the U.S. will produce just ten million new workers during that period.
One predicted outcome is that companies will make jobs more attractive for older employees, and keep them on the payroll. Firms may offer workplace flexibility to attract seniors looking for “encore careers.” Health care, education, social services and nonprofits, plus state and local governments are the areas most likely to experience worker shortages in the future. Fortunately, many baby boomers say they are eager to fill these “social sector” jobs. “Encore careers combine personal fulfillment, social impact and continued income,” note the researchers, “enabling people to put their passion to work for the greater good.”
Recently a government report stated that housing affordability has reached “historic high levels.” Low mortgage rates and attractive real estate values combine to make buying a home possible today. You can make a smart move by acting on today’s positive real estate and economic outlook. Waiting until property prices or employment growth have surged will mean you’ll miss the best home-buying conditions.
Too many households will delay taking action because the economic factors they pay the most attention to start improving only after a recovery is well underway. Recently the UCLA Anderson Forecast noted that the job market remains sluggish, even though the economy is picking up. That’s because businesses emerging from a recession don’t take on workers until they know the outlook for growth is secure. Firms are more likely to upgrade their equipment in order to boost productivity first, before looking for new employees. Yet today’s employment gains are a sign that better times are on their way. Forecasters point out that America’s overall economy has been improving since last summer.
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Americans are responding to this trend by making their homes suitable for these new living situations. Some are refinishing basements for adult children to live in, or building mother-in-law apartments for older relatives. But first check with local building authorities to make sure any additions are legal in your community. Also plan your renovation so that it’s practical in your situation. You’ll want to ensure that the space is both adequate and suited for the people living there. Stairs can be challenging for both seniors and toddlers, for instance. Decide if the new occupants need their own entrance to their quarters. Also make sure a noisy household member isn’t near a baby’s bedroom. It’s great that both homes and families are adaptable. Finding happy living arrangements provides benefits for everyone.
A record number of Americans lived in a multi-generational household in 2008, says the Pew Research Center. Such situations combine two or more generations of adults, or a grandparent and at least one other generation. It reverses a trend which began after World War II. About one in four families were multi-generational in 1940, according to Pew, before dropping to twelve percent by 1980 – and then moving back up to 16 percent in recent years. A single generation makes up one in three U.S. households today. And close to half are composed of parents and minor children. Later marriages are enticing young adults to live with their parents now, Pew explains. Increased immigration levels in recent decades also encourage family members of all ages to live together.
