Having outdoor living spaces that go well beyond a picnic table and charcoal grill hold appeal for most buyers. Conversation areas, fire pits, and outdoor kitchens range from desirable to “must have” in some parts of the country.

Should You Pay More?

Fans of outdoor kitchens, in particular, point to the social advantages they offer. During parties, especially, everyone can be part of the action. When entertaining outdoors, it also eliminates the trips back and forth between the patio and the kitchen and enables the cook(s) to be outside with everyone else. There is also some energy efficiency to be gained, especially in warmer months. Cooking heats up a home, boosting air conditioner use. Making use of an outside kitchen can reduce energy demand.

Adding an outdoor kitchen to a home can start around $3,000 for a nice grill and counter. Add in amenities, like a refrigerator, pizza oven, sink and cabinents  and the cost can riva that of a new indoor kitchen.

When trying to decide how much to spend, consider how often you will use this extra feature. In some parts of the country, use will be seasonal, and in areas like New England or the Midwest, that season will be much shorter. However, these are also areas where people tend to want to maximize their enjoyment of outdoor time. In warmer climates—California, Florida, the Southwest, and Southeast—outdoor kitchens tend to reflect a lifestyle that moves more seamlessly between outdoor and indoor living.

What to Look for When Buying

When looking at a home with an existing outdoor kitchen, here are some tips for evaluating its value and how to treat it when making an offer.

• Establish what will be remaining with the house and what will be leaving with the owner—grills, furnishings, and appliances may be portable. Also, be sure to add the items you understand will be sold as part of the home to the addendum of your purchase offer.
• Check the values of brand-new items online to ensure you are paying a fair value.
• Verify the appliances are made for outdoor use, protected from the elements, and mounted in place.
• Assess the condition of the masonry features.
• Ensure the kitchen appliances and electrical outlets—along with any decking—conform to local code.

The Potential for a Payoff

The National Association of Home Builders estimates that outdoor kitchens can return as much as 130 percent of its cost on resale depending on how recently it was added. A home’s location and the associated climate are also important factors.

Resale value, however, isn’t really the point when it comes to having an outdoor kitchen. It’s about the experience, convenience, and the memories you’ll enjoy of sharing family meals in a natural setting—your own backyard. 

Many homeowners plan for retirement by assuming they’ll want to downsize when the time comes. However, as they near that point, they may feel differently. Others may have paid off their mortgages prior to retiring, but find they need an additional source of income or funds to maintain their homes.

For older homeowners with a fair amount of equity, a Home Equity Conversion Mortgage (HECM), more commonly known as a “reverse mortgage,” is a tool for tapping into what may still be their largest asset to meet financial goals.

The Details

Reverse mortgages and reverse lines of credit are available to homeowners who are age 62 and older. Instead of a loan, where a lump sum is received and paid back through monthly payments, a reverse mortgage is repaid when the home is ultimately sold, or the borrower moves our or passes away. That sale has no specific date, by the way. The homeowner makes no loan payments and can choose to access the money immediately, as needed, or through regular monthly disbursements to supplement their income. There are no restrictions on how the money received through the loan may be used and it is non-taxable income.

Not What You Think

Despite regulatory changes enacted in 2013 to help clarify the rules, industry communication, and the uses of reverse mortgages, some myths and misperceptions persist. To help clear this up, here are some of the more pertinent facts.

Fact #1: Reverse mortgages are regulated just like traditional mortgages.

Many lenders are now Certified Reverse Mortgage Professionals (CRMP), a designation issued to those who adhere to the professional and ethical standards of the National Reverse Mortgage Lenders Association (NRMLA).

Fact #2: The rules for qualifying are straightforward.

A homeowner needs to be at least 62 years old to qualify, and the home must be the client’s primary residence. Only homeowners with sufficient equity may borrow. Counseling is also now required to ensure each client and their family members understand the mortgage and how it works.

Fact #3: There are different borrowing options.

Money may be withdrawn from a reverse mortgage as a lump sum or as a series of monthly payments received during retirement. Other clients can set up their loans as a line of credit. This enables them to borrow as needed to pay for large expenses. They may use the reverse line to even out their cash flow and may repay the amount as distributions from other assets are received. You can also use a reverse mortgage to purchase a home.

Fact #4: Clients retain ownership of their homes.

That said, reverse mortgage clients are required to meet the terms of the loan agreement. This means maintaining the home by making any necessary repairs, paying property taxes, and continuing to pay homeowners insurance.

Fact #5: A home with a reverse mortgage may be passed on to heirs.

Any equity that remains in a home may be passed along to a homeowner’s heirs—only the mortgaged amount is due to the lender upon sale. Heirs also have the option of repaying the debt and retaining ownership of a family home.

Fact #6: Reverse mortgages are comparably priced to other loans.

Like a traditional loan, the current level of interest rates, the home’s value, the loan terms, and local market conditions factor into the closing costs. With a reverse mortgage product, the age of the client(s) and life expectancy factor into the pricing.

Before pursuing a reverse mortgage, it’s a good idea to consult with your financial and legal advisors to verify it will serve your long-term financial goals. Take full advantage of the counseling sessions your lender is required to ask you to take so you know your options. For many clients, a reverse mortgage product offers the answers to ensure having sufficient assets to last a lifetime.

Mortgage Lender Aligns with NAHREP to Support Hispanic Wealth Project

New American Funding joins the National Association of Hispanic Real Estate Professionals (NAHREP) in their commitment to increase Hispanic sustainable homeownership, and triple Hispanic household wealth in the next decade. NAHREP is a national advocate on housing policies affecting Hispanic homebuyers, and New American Funding has established an actionable plan in support of NAHREP’s Hispanic Wealth Project goal of achieving a 50% rate of US Hispanic homeownership.

“We’re a community-driven lender and we believe this alignment is a way to enrich lives and make a positive impact on Hispanic communities,” commented Rick Arvielo, CEO of New American Funding.

The strategy will focus on three initiatives:

Foster Hispanic Entrepreneurship

By 2024, New American Funding will provide direct mentorship to 500 Hispanic-owned small businesses.  This initiative will encompass an annual Hispanic Small Business Summit at New American Funding’s headquarters in California. The Summit will feature speakers and business leaders who will provide direct guidance, insight and support to Hispanic businesses owners.

Increase Hispanic Homeownership Rates

By 2024, New American Funding commits to lending $25 Billion in new mortgages to Hispanic borrowers. The mortgage bank will educate 5,000 real estate professionals on the cultural nuances of the Hispanic community and will host 70 industry-exclusive Latino Focus events across the nation.

Increase the Number of Hispanics in the Mortgage Industry

To support the Hispanic Wealth Project goal of doubling the number of Hispanics employed in the mortgage industry, New American Funding commits to recruiting, training and providing employment opportunities for individuals who have no previous experience in the mortgage business.  By 2024, the mortgage company will transition 1,000 Hispanic individuals from students to entry level mortgage professionals.

“This commitment is vital in attending to the needs of the future homebuyer and part of our personal mission to empower the Hispanic community. We are very proud to join the efforts of NAHREP,” said Patty Arvielo, President and Co-Founder of New American Funding.

For more information on NAHREP’s Hispanic Wealth Project please visit http://hispanicwealthproject.org/

Mortgage Lender Aligns with NAHREP to Support Hispanic Wealth Project

New American Funding joins the National Association of Hispanic Real Estate Professionals (NAHREP) in their commitment to increase Hispanic sustainable homeownership, and triple Hispanic household wealth in the next decade. NAHREP is a national advocate on housing policies affecting Hispanic homebuyers, and New American Funding has established an actionable plan in support of NAHREP’s Hispanic Wealth Project goal of achieving a 50% rate of US Hispanic homeownership.

“We’re a community-driven lender and we believe this alignment is a way to enrich lives and make a positive impact on Hispanic communities,” commented Rick Arvielo, CEO of New American Funding.

The strategy will focus on three initiatives:

Foster Hispanic Entrepreneurship

By 2024, New American Funding will provide direct mentorship to 500 Hispanic-owned small businesses.  This initiative will encompass an annual Hispanic Small Business Summit at New American Funding’s headquarters in California. The Summit will feature speakers and business leaders who will provide direct guidance, insight and support to Hispanic businesses owners.

Increase Hispanic Homeownership Rates

By 2024, New American Funding commits to lending $25 Billion in new mortgages to Hispanic borrowers. The mortgage bank will educate 5,000 real estate professionals on the cultural nuances of the Hispanic community and will host 70 industry-exclusive Latino Focus events across the nation.

Increase the Number of Hispanics in the Mortgage Industry

To support the Hispanic Wealth Project goal of doubling the number of Hispanics employed in the mortgage industry, New American Funding commits to recruiting, training and providing employment opportunities for individuals who have no previous experience in the mortgage business.  By 2024, the mortgage company will transition 1,000 Hispanic individuals from students to entry level mortgage professionals.

“This commitment is vital in attending to the needs of the future homebuyer and part of our personal mission to empower the Hispanic community. We are very proud to join the efforts of NAHREP,” said Patty Arvielo, President and Co-Founder of New American Funding.

For more information on NAHREP’s Hispanic Wealth Project please visit http://hispanicwealthproject.org/

Congratulations and welcome to your after-college years! As the saying goes, your future is ahead of you. To make the most of this world of opportunity, and to get closer to achieving the dream of homeownership, it helps to have  control over your spending and to start saving early.

Like most things in life, it is easier to accomplish this if you start small, develop sound money habits early, and then practice them often. For instance, here are some time-tested strategies for getting your financial life up and running in the direction of meeting both your near-term goals—saving for a down payment on your first home—and longer-term needs like retirement.

• Spend less than you make. It’s easier said than done, though banking products and apps now make this more routine—even fun—by providing instant feedback and real-time balances each time you spend or deposit money. Many can be set up to help you meet financial goals, including saving for a down payment.

• Never pay more than you have to. Comparison shop, sign up for rewards programs, and use discount codes online and coupons in stores. Spending less means having more to add to your savings.

• Be on time. It’s been said 80 percent of success is showing up. That applies to being present in your life so you are aware when opportunity arises, but it’s also true when it comes to paying bills. Paying on time saves you more than the cost of late fees—it helps boost your credit score. That number helps determine how much you pay in interest on your future car loans, mortgages, and insurance rates. It can even influence your job prospects.

• Manage your student loans.When you have loans, it’s a sign that you invested in your future. You can get the best return on that investment by making sure you choose the most appropriate repayment option for your current situation. Then, revisit that choice as your circumstances change to ensure you’re in the best loan for meeting more of your other financial goals.

• Take free money. Some companies offer to match 401(k) contributions, so contribute at least up to the maximum amount your employer matches, even while you save for other nearer term goals like your down payment. That few hundred to few thousand dollars a year will add up to a nice retirement cushion by the time you are ready to access it.

Establishing good money habits early will provide you with more options later. This is especially true when you are ready to step into homeownership. With your budget under control, money put away for a down payment, and a good credit score, you’ll be financially prepared to make your move on your terms.

Whether they are still active or retired, U.S. service members account for 21 percent of all homebuyers and sellers. As a market segment, this demographic is very attractive. These individuals and their families move more frequently, and a bit farther, than their peer groups. They also tend to rely more heavily on Real Estate Agents to help them find their homes and close quickly. So, it’s important to help them understand their options, both in terms of housing and financing.

What’s Different About the Military Buyer

Clients who are still active in the military tend to buy higher priced homes than their civilian peers. This may have something to do with the access they, along with veterans, have to the VA home loan program. This program gives active military—as well as—veterans a decided advantage by making homes more affordable.

The VA home loan program was developed several decades ago. It takes into account the special financial circumstances military personnel face due to repostings and periods of deployment. As a result, the program offers six key advantages to active military and veterans:

1. No down payment required

2. No mortgage insurance

3. A limit on closing costs

4. Lower mortgage interest rates

5. Flexible credit standards

6. 100% cash out refinance

A recent survey by the National Association of REALTORS found that slightly more than one-quarter of active military homebuyers do not take advantage of the VA home loan program. Additionally, a bit less than half of veterans use it for purchases or refinancing. This represents an opportunity for Real Estate Agents to educate military homebuyers on the program's benefits, such as the fact it may be accessed throughout a veteran’s life. There is no limit to the number of times the program can be used, nor does the benefit expire for those who are eligible.

Veterans and qualifying spouses should be encouraged to check their access to the VA program by requesting a Certificate of Eligibility from the U.S. Department of Veterans Affairs. They will need this anyway, if they do decide to borrow under the program.

Understanding the Nuances

For Real Estate Agents, becoming familiar with the advantages of a VA home loan program is essential to assisting military clients. As an example, the VA has a set of minimum property requirements (MPRs), though these primarily impact condo purchases. While some purchases are allowed, the list of condos that may be financed using a VA home loan is limited. The list is maintained online here, making it easy to identify potential issues before going under contract.

Helping Without Asking

Possibly the biggest barrier to helping active and retired military clients get the most out of the VA and other loan programs and incentives available to them is, in many states, veterans are considered a protected class. Depending on where you are located, you may be prohibited from asking questions about your clients’ military service.

An effective way of making sure clients are aware of these programs and incentives is to create a summary table of all programs, grants, etc. available to buyers in your area. This can be included in the welcome kit you hand your clients as they start to search for a new home. This way, you still provide essential information that may impact which homes they will be able to afford without asking for their military service status.

For more information on what you need to know to establish yourself as a resource for relocating military personnel and veterans, the VA has created a portal for you to use. Visit http://www.benefits.va.gov/homeloans/realtors.asp to start serving the military market in your area.