Prospective homebuyers having trouble securing mortgage credit through traditional channels might find it comforting to know they're not alone - and that they have other options. Government-program loans, such as those offered by the Federal Housing Administration or the U.S. Department of Veterans Affairs, offer low down-payment terms for those who are eligible. It's also important to recognize that, even for those who don't qualify, a down payment doesn't have to come entirely from personal income. Many first-timers are finding that generous gifts from friends, family members or other third parties are offering the boost they need to secure the purchase of a new home. A recent Bloomberg report chronicled the growing trend of "Mom-and-Dad banks," which are playing an increasingly important role as lenders and currently helping sustain the housing recovery. Based on data compiled by the National Association of Realtors, 27 percent of first-time homebuyers in 2013 received a cash gift to help with the down payment, usually from relatives or friends. That's the most substantial rate seen since the NAR began collecting that sort of data in 2009, and it's up from 24 percent in 2012. Many economists expect those numbers to remain steady - possibly even balloon further - as many would-be first-time buyers continue to deal with burdens related to heavy student debt and stagnant wage growth. Until mortgage lending standards are relaxed somewhat, alternative products and less traditional methods for financing will continue to be explored. And as property values continue to appreciate in many parts of the country, a lot of younger adults are finding their homeowning parents are suddenly equipped with ample equity. That newfound wealth can result in assistance, especially now, while borrowing costs remain near historically low levels. "Without them, the recovery's not sustainable," Anika Khan, a senior economist for Wells Fargo Securities LLC in Charlotte, North Carolina, told Bloomberg. "[The trend] just moves the housing recovery along." Factors working against the traditional buyer This past July, the Federal Reserve released its annual report on the collective wealth of American households, finding the struggle to save toward a down payment was the most common reason many would-be buyers opted to rent instead. Even those who did buy homes in 2013 admitted they might have done it sooner had they not be hampered by various debts. In fact, 54 percent of first-time buyers acknowledged that their student loan obligations deterred or prevented them from fulfilling their homeowning dreams earlier. That gives further credence to what the NAR and other industry groups have been contending for some time now: Student debt is the primary contributor to the lack of activity from first-time buyers, who comprised just 29 percent of the overall homebuying population in 2013, compared with about 40 percent historically. Over the past two years, the influx of investors who have infiltrated the market hasn't helped the cause of younger buyers. It's nearly impossible for them to compete with such cash-in-hand buyers, who emerged with regularity in distressed markets, often looking to buy foreclosures or short sales with the endgame of rehabilitating - and reselling at a profit - in mind. But as Lawrence Yun, chief economist for the NAR has noted, with home retention rates improved and fewer foreclosures lining most local housing markets, that investor influence has eased. And that means competition is less fierce in many areas. "With the investors stepping away, for some first-time buyers and millennial buyers, they have less competition," Yun said. "So it would be an opportune time to enter the market." Of course, it's not realistic for all homebuyers to be in a position to receive such financial support. But the prospects of lighter competition and improving inventory levels - perhaps buoyed by eventually eased approval standards - should be encouraging for aspiring first-timers nonetheless.

In this video, Mike Heimos talks about common snow and ice removal methods like ice, sand, cat litter and ash, and which ones are effective, and which ones are better for your the environment and your local water supply. He's got some great info, and a few great tips, and some alternatives you may want to seek out. Have a watch here. (4 minutes, you can spare that, right?)

First-Time Buyers Are Getting More Help Paying For Homes

"I can do this, hold my beer." And with those words start some of the funniest home improvement stories ever. There are certain things you should probably know how to do around the house. You should know how to change a light bulb, fix a creaky door, stuff like that. But there are some home projects where the best place to start is with your telephone. Have a look here and see if you agree.

Little oversights might make for big problems when it's time to apply for a mortgage. These five mistakes are the most common ones that people make, sometimes more than once, and they're hurting their chances of getting a mortgage.
1. Paying late
2. Too much credit
3. Applying for too many credit cards at once
4. Never having a credit card at all
5. Running up your debt

Read about what you can do to combat these problems here.

If you've got 99 problems, chances are there's a hack that someone has thought of to fix at least a few of them. Simple hacks are not only time and hassle savers, but they give you that 'a-ha' moment too. Here's a great set of simple home hacks to check out. I bet dollars to doughnuts you'll adopt at least one of them. Hack away here

Homeowners considering remodeling projects as a way to add value to their homes will find that some add more value, and better recoup their costs, than others.

These ten projects make the biggest financial payoff upon resale, and most are on the exterior of the home:

1.     Steel entry door
2.     Manufactured stone veneer
3.     Siding replacement with fiber cement 
4.     Garage door replacement - minor
5.     Vinyl siding replacement
6.     Wood deck addition
7.     Garage door replacement - major
8.     Minor kitchen remodel
9.     Wood window replacement
10.     Foam-backed vinyl siding replacement 

More here

recent survey of prospective homebuyers noted many people - including younger adults - are taking the financial commitment quite seriously, and preparing accordingly. Wells Fargo's "How America Views Homeownership" report revealed more than two-thirds - 68 percent - of respondents think now is a good time to purchase a home. But almost all prospective buyers know it's not worth doing so without first getting their finances in order and making sure they understand the process as well as possible. Being prepared to own - not just to buy - is a greater priority than it was in the past. That trend is perhaps indicative of the lessons learned from the recession and housing market downturn. What buyers know, what they need to learn Eighty-two percent of survey participants said they have an understanding of how to manage personal finances in preparation for a home purchase, though some of the answers related to that process revealed that's not entirely true. For example, 30 percent of respondents mistakenly believe only high-income individuals can obtain a mortgage. Lending standards have gotten tighter since the recession and the housing market's downturn, but qualification is based primarily on a borrower's debt-to-income ratio and ability to repay the loan, as opposed to income alone. The loan approval process is still conducted on a case-by-case basis, with risk assessments focusing on a borrower's credit history and the terms of the mortgage, rather than simply how much they earn. The notion that younger generations don't view homeownership as a worthy goal proved untrue in the study, with 95 percent of respondents reporting it was an achievement they value and strive for. Another perception seemed to ring true, though: Younger prospective buyers do more online research and tend to ask more questions during the process than their older predecessors, according to the survey. Misconceptions regarding the minimum down payment qualifications and credit score standards remain, but overall, it seems as if younger adults are making sincere efforts not to approach the homebuying process without first arming themselves with as much information as possible. "It is important for prospective homebuyers to feel empowered to ask lenders and real estate agents questions about available options, such as down payment assistance or FHA loan programs or VA loans for veterans," Codel said. "Ninety-five percent of survey respondents said they want to own a home if they don't already. Informing prospective homebuyers about their options is the first step toward helping them realize their goals." Savings and demand stats Nearly one-third - 63 percent - of the more than 2,000 adults surveyed have established a savings fund for a down payment on a home. Meanwhile, more than half of the respondents between the ages of 18 and 34 indicated they had begun saving for a new home purchase, though that same age group also cited a lack of funds as the most significant impediment on their path toward homeownership. Perhaps most reassuringly, the survey dispelled most notions that homebuying demand is sagging. Instead, it reiterated the need for more accurate information to be disseminated among the buying population. Certain elements of the mortgage application process and the steps for buying the home still cause confusion, but the desire to understand these processes is very much alive. There are many Americans who still view homeownership as the ultimate investment, but too many of them remain ill-equipped to achieve those goals. They're willing to seek out the information and take the steps necessary, increasing the national homeowning rate in the process, but it may yet take some time.

Fannie Mae is launching a new program nationwide this month by giant mortgage investor focused on the home appraisal process. It’s already causing controversy with detractors claiming it may lead to more expensive and longer home sale closings. The program will offer mortgage lenders access to Fannie’s proprietary home valuation databases. Lenders will be able to use the data to assess the accuracy and risks posed in appraisal reports submitted by appraisers. Lenders can then request explanations and changes to the appraisal in any situation where there is conflicting or significantly different information in submitted appraisals. This means that if you are in the market for a home, January 26 will bring some important changes that you should know about. More here  

With all the great opportunities of homeownership in our new year and the anticipation of more Millennial buyers entering the market, there is no doubt that we will see an increase in home loan applications. The market has been flooded once again with direct lenders, mortgage brokers, local credit unions and banks all trying to put their application links in the consumers face. With social media revolutionizing the free marketing ad, you could probably find someone trying to get you to submit an application and get an automatic response in 5min from your smartphones.

As a loan consultant for the past 11yrs in Bakersfield California and the county of Kern, I've helped and brought understanding to clients that there is more to applying for a home loan than just submitting an application. Buying your first home or that first investment is definitely the American Dream but not at the expense of jeopardizing your comfortable living.

Here are 4 mistakes made when buying a home

1. Spending the maximum on housing (no budget)
2. Not getting pre-qualified early enough
3. Applying for Home Loan takes more than just an application
4. Choosing the wrong mortgage product

Now, I'm NOT saying that everyone who didn't budget or had low credit scores and was able to buy a home received a bad mortgage. Not all, but, I do have to say that in the last 2 years I've had more conversation with homeowners about refinancing to lower the payment because that so call great payment of last, is not so great today.

When sitting with your loan consultant there should always be a conversation about your short and long term plans. Your plans for the next 2-5 years can really change your financing plans and may be your dream home next to the golf course or in the prominent community might not be ideal for you then.

Here's a few short term plans (under 5yrs) to consider

• Buying a new car (new average car payment $477)
• Having a baby (18-20 years of expenses, average payment, unknown)
• Returning back to college to finish your BA or Masters
• Job change or industry change
• Opening that business you being planning

Long term plans (5-10 years from now) to consider

• Kids going to college (Average 4 year tuition $35,000 per child)
• Relocation to a new city or state
• Build a Retirement Savings
• Retiring from work

There so much more I can add but I think you get the idea.

I hope this post has help and it's brought knowledge and understanding. If you would like to contact me directly for a consultation please email me at daniel.estrada@nafinc or 661-472-6088.