California Platinum Loans Shares With You Today, A Sure Fire Way to Double Your Home Buying Power Including A 30-Year Home Loan

Have you ever thought of buying a duplex or triplex, and renting part of it out? This strategy has been around as long as there have been multi-family dwellings, and it can be just as effective today as ever. 

You have several options for financing the purchase of a multi-family home, including FHA, VA, and conventional mortgages. Some companies even offer different types of flexible financing that may allow you to buy a property in the neighborhood you want to live in. If you’re a veteran, this option could be a smart way to build your family’s future security. As of 2020, there are no more VA county loan limits, so you can buy a higher-priced property as long as your income and the rental unit income can qualify for the loan.

How can a multi-unit property double your buying power or more?

If you buy a duplex, triplex, or four-plex and plan to live in one of the units while renting the others out, the income from the rental units can help you to qualify for a California home mortgage, including a 30-year FHA loan, 30-year VA home loan, or another type of mortgage product.

Let’s say you have monthly income of approximately $8,000 and very few bills other than a car payment. Using conservative mortgage payment calculator estimates, you’ll be able to qualify for a 30-year fixed rate home loan of approximately $390,000 at 4.5% interest. Add in $2,500 a month in rental income, and you will be able to qualify for a financially conservative mortgage payment of $2,940 a month, equaling a 30-year fixed rate mortgage of approximately $527,700 at 4.5%. Each $1,000 in monthly rent can help you qualify for about $60,000 more in total loan amount at an estimated 4.5% interest rate.

You can find some duplex, triplex, and other multi-unit property gems that could be an ideal match for your lifestyle. While there can be drawbacks to living in the same property as your tenant, you can educate yourself and set boundaries for a smooth, trouble-free lifestyle. Why not consider a duplex, triplex, or larger multi-unit property to double your homebuying power or more?

 

Sources

https://www.thesimpledollar.com/loans/home/should-you-buy-a-duplex-rent-out-one-unit-and-live-in-the-other/

 

https://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx

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Wondering How You Can Update Your Current Kitchen or Bath? California Platinum Loans Explains How You Can Achieve Your Latest Remodeling Desires Instantly

Do you spend your days watching home remodeling shows? There are dozens of popular shows, each with its own style and approach — not to mention an entire network, HGTV. Add in YouTube and the possibilities for your kitchen and bathrooms are endless. If you’re a DIY type, you may be able to make your remodeling dollars stretch, but most people who’ve started a kitchen or bathroom remodel appreciate professional help. 

Think in cost per square foot, not total

First things first: start thinking like a developer or contractor. While the total cost of your kitchen and bathroom remodel is important, you’ll want to fit your project into cost-per-square-foot ranges. According to HomeAdvisor, the average kitchen remodel costs $150 per square foot. So, if your kitchen is 200 square feet, the total project will cost $30,000 — on average. You can get prices as low as $75 per square foot, but this comes at a cost: the materials will be of lower quality, and workmanship may also suffer. 

According to HomeGuide, bathroom remodeling costs start at a slightly higher per-square-foot cost of $120 and go up to $275 per square foot. Bathrooms are usually about a third of the size of the average kitchen. So, you could start a bathroom remodeling project for $5,000 and of course, spend more if you’re creating a bath oasis together with your master bedroom. An average bathroom of 40 square feet, with a cost of $200 per square foot would be an $8,000 bathroom renovation — mid-range for average project costs according to HomeAdvisor.

How can you get the look and performance you want for the right price?

First, if you’re getting a new bathroom or kitchen designed and built, consider working with a contractor who provides the design and builds services directly through their company. Don’t make the mistake of going around to get “bids” and choosing the most affordable. That will seldom produce the quality you want, and the prices won’t be much less than a full-service remodeling business that specializes in kitchens and baths. Settle on a price for the total job. 

Use a cash-out refinance or a home equity line of credit (HELOC) 

Once you have an idea of what you want your kitchen or bathroom remodel to be, and a general idea of the price, you can pay for it using the equity in your home. You may even be able to refinance your 30-year fixed-rate home mortgage and get extra money to pay for your remodeling project. Another alternative is the home equity line of credit (HELOC) or home equity loan (HEL). While you may find companies that offer independent financing for your kitchen or bathroom remodeling project, your interest rates on these mortgage-based products will always be superior. If you’re tired of your old kitchen or bathroom, why not investigate how you can change it today?

Sources

https://www.homeadvisor.com/cost/kitchens/remodel-a-kitchen/

 

Plus my work w contractors – I’m doing work for contracting software companies right now.

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Do You Really Have to Have a 20% Down Payment Right This Minute? Presently, How Much Should You Save For The Best California Home Loan Interest Rate Today?

When the financial advice website NerdWallet surveyed home buyers in 2019, they learned that almost two-thirds of them (62%) thought they needed at least a 20% down payment to buy a home. That’s not true, especially if you’re a first-time homebuyer. NerdWallet’s survey found that the average down payment for first-time homebuyers in 2019 was 7%, and among all buyers, the average rose to 16%.

What kinds of home mortgages require less than a 20% down payment?

FHA Home Mortgages: FHA home loans start with a minimum of 3.5% down payment. 30 year fixed rate FHA loans also have more flexible standards for credit scores than other loan programs. USDA loans also don’t require down payments and can offer mortgages in USDA-qualified areas.

VA Home Mortgages: VA loans require no down payment for eligible veterans. You can get a 30-year fixed-rate VA mortgage or a 15-year fixed-rate VA mortgage with no money down. As of January 1, 2020, the VA lifted county loan limits, so you can get a no money down VA home mortgage in any amount you’re qualified to receive.

Conventional home mortgages: Conventional mortgages can offer down payments as low as 3% and potentially lower. Some mortgage lenders offer down payment assistance grants, especially for first-time and non-traditional home buyers.

How much should you save for a California home mortgage down payment?

You can use a mortgage calculator to see how much your payments will be with different down payment amounts. Save as much as you can, but as we’ve already said, you don’t have to save 20% for the down payment. As you save, keep in mind you will need to pay for other costs when you close your loan. You may also need to pay for mortgage insurance with a lower down payment.

You have many options for your mortgage and more flexibility in home buying and loan choice than a lot of online advice articles show. This is another reason you should work with an experienced California mortgage specialist who can help you plan to get a loan with a down payment you can afford along with monthly payments that help you meet your home buying and financial goals.

 

 

Sources

It turns out LA Times has had “20% down payment is dead” articles for 3-4 years – here is another one with the same headline:

https://www.nerdwallet.com/blog/mortgages/20-percent-mortgage-down-payment-dead/

 

 

 
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