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Mortgage News Matters

What are the Benefits of Buying a Foreclosed Home?

Sold sign on a foreclosed home

Buying a foreclosed home can be beneficial to home buyers in a variety of ways. The main one being – it’s attractively low price. With most sold well below market value, foreclosed homes could be a great option for homebuyers on a budget!

What is a Foreclosed Home?

A foreclosed home is a property that has been repossessed by the bank or government after the homeowner stops making payments and defaults on their loan.

Types of foreclosures:

  • Pre-foreclosure
  • Short sale
  • Sheriff’s sale
  • Real estate owned

How to find a foreclosed home?

Potential homebuyers who are looking to purchase a foreclosed home can look to some government-backed websites or simply take a drive throughout different neighborhoods, as they would for any other home. Another option is speaking to a real estate agent who may be more knowledgeable of foreclosures in the buyer’s preferred neighborhood.

What are the benefits of purchasing a foreclosed home?

  • Lower than market value price
  • Lower down payments
  • Lower interest rates
  • Elimination of appraisal fees and some closing costs

A foreclosed home is typically set at a lower than market value price. This is a great option for those homebuyers who are looking to purchase but cannot afford many of the homes on the market. Along with this, foreclosed homes tend to have lower down payments and lower interest rates, making them even more affordable. Lastly, when purchasing a foreclosed home, buyers can eliminate appraisal fees and some closing costs, making the home buying process just that much simpler.

To learn more about foreclosures and the process of buying one, contact a VanDyk Loan Originator today!

Categories
Mortgage News Matters

Is Delayed Financing Right for You?

woman looking at financial papers

What is Delayed Financing?

Delayed financing is when a buyer pays for their home upfront with cash, and then immediately obtains a mortgage after the home is purchased.

What are its advantages?

The biggest advantage of delayed financing is the power of paying cash. A cash offer provides buyers with a competitive edge and allows them to stand out in a seller’s market, much like the one we find ourselves in today.

This method allows the buyer to make an enticing all-cash offer, then immediately puts the money right back into their pockets with a cash-out refinance.

What are the restrictions?

  • The amount of the mortgage loan obtained cannot be greater than the amount of the purchase price, closing costs, prepaid fees, and points, combined.
  • Applicants must have proof of cash purchase.
  • Applicants must provide proof of the initial source of cash used for the purchase of the home.
  • Applicants cannot apply for delayed financing with a home they purchased from someone they have a personal relationship with.
  • If funds are provided from a third party, applicants must provide a gift letter.
  • If applicants were provided a gift fund for the purchase of the home, they cannot give the cash from the cash-out refinance back to the donor.
  • The property must be free from any liens.

To learn more about delayed financing and if it is right for you – contact a VanDyk Loan Originator today!

Categories
Mortgage News Matters

4 Benefits of Moving to a Villa

street view of a villa with palm trees outside

For homeowners who are looking to downsize from a home to a smaller property with less maintenance, one option they should consider is moving to a villa. In addition to being a fruitful investment property, villas provide considerable privacy in a niche living experience.

What is a Villa?

Villas are homes located in retirement communities or vacation properties. They are one-level residences that often include patios, balconies, or gardens. As a property located in a community, they typically come with amenities like pools, clubhouses, or gymnasiums.

What are the Benefits of moving to a Villa?

  1. Investment Property. Like with a townhome, when a buyer purchases a villa, they are also purchasing the plot of land the property is sitting on. As this land value increases overtime, so does the villa itself, making it an ideal investment opportunity.

  2. Privacy & Exclusivity. With no shared walls and no shared water supply, a villa provides a similar level of privacy and exclusivity, as with owning a home. It is also typical for a villa to come with a private open space, such as a balcony or patio, which offers additional security and seclusion.

  3. Freedom to design. Though each community comes with its own set of design guidelines, a villa provides much more freedom to design, compared to living in an apartment.

    In some communities, owners have the freedom to remodel and renovate existing rooms, or even create new additions, because they do not have to worry about answering to a housing society or neighbors with shared walls. Check with your community first, to see what your options are.

  4. Amenities. Like condominiums, villas provide exclusive amenities for all their residents. From 24/7 maintenance to recreational spaces, there is truly something for everyone.

To learn more about downsizing from a home to a new property and take a look at your mortgage options, contact a Loan Originator today!

Categories
Mortgage News Matters

4 Benefits of Downsizing to a Condo

condominium building set on a bright blue sky

Downsizing from a home to a condominium is a great option for homeowners who find themselves using less of their space, looking to downsize, or simply interested in a home that requires much less maintenance to take care of.

Significantly smaller than a typical home, a condo can be a townhouse, loft, or high rise, and often includes additional costs, like homeowner’s association fees and homeowner’s insurance.

To help you decide whether this choice is right for you, we’ve decided to share four of the major benefits of downsizing to a condo.

What is a Condo?

A condo, or condominium, is a privately owned unit within a community of other units. Like an apartment complex, a condo is part of a larger building. However, unlike an apartment, residents are the owners of their own unit, rather than merely renters.

What are the Benefits of Downsizing to a Condo?

  1. Pricing. Depending on your market, owning a condo can often be more cost-efficient than owning a home. It is said that in rural areas, single-family homes appreciate at a greater rate compared to a condo of the same size. However, in cities, condos rise in value quicker than single-family homes located further from the city center. It is important to keep location in mind when looking for the best pricing.
  • Less Maintenance. Significantly smaller in size, condos require relatively less maintainance to take care of than a home. This gives residents more time to spend doing the things they enjoy.
  • Onsite Amenities. Like an apartment complex, condos often have onsite amenities like pools, gyms, and community areas – to name a few. Residents pay HOA fees that cover costs like maintenance of these common areas, so they can enjoy these amenities without having to worry about upkeep. 
  • Sense of Community. Condos are set up like little neighborhoods. They often become close knit communities where everyone feels a sense of trust and belonging. This can be a relief for many who like their independence but also want to feel a sense of community.

Considering downsizing, but aren’t sure if a Condo is the right choice for you? Check out our upcoming blog on the benefits of downsizing to a townhome.