mortgage

Different mortgage rates and requirements

If you’ve been comparing mortgage rates for the purchase of a second home or an investment property, you’re already on a promising path: You’ll either have a place to go for vacations, or you’ll have a place that’ll generate income and put more money in your pocket.



a view of a picnic table: A view from an outdoor patio


© alexandre zveiger/Shutterstock
A view from an outdoor patio

Either way, the opportunity to own more than one property is an enviable position to be in, but how you classify that property makes a difference in how much you’ll pay to finance and own it.

Loading...

Load Error

Second home vs. investment property

Are you buying a second home, or are you making an investment?

This might be confusing, especially if you’re thinking about occasionally renting out the property – using it regularly for vacation, for example, but also making it available on Airbnb for some of the time you’re not using the property and instead are living in your primary residence.

Earning some money from your property doesn’t automatically make it an investment, however. Accurately defining the piece of property depends on how much time you spend in it.

Elliot Pepper, co-founder, certified financial planner and director of tax at Northbrook Financial in Baltimore says that you need to pay attention to what he calls “the 14-day limit rule.”

“Very broadly speaking, if you personally live in your second home for 14 days or fewer – or less than 10 percent of the days it is rented – during a year, then it would be considered a rental property and the income earned would be taxable,” Pepper says, “but you would also deduct the expenses associated with the property.”

On the flip side, if you use the property for more than 14 days or more than 10 percent of the time it’s rented,

Continue Reading

How one mortgage servicing company is prioritizing home retention during economic uncertainty

Nearly two years ago, Ocwen acquired PHH Corporation, and Glen Messina became the president and CEO of the newly combined companies. Today, Ocwen Financial Corporation is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. HousingWire spoke with Messina on the progress that’s been made in reshaping the mortgage servicer and originator, its evolving business model and its progress in turning around the company.

HousingWire: How does the Ocwen of today compare to the companies that merged two years ago?

headshot

Glen Messina: The Ocwen of today is a different organization, and I believe we are stronger, more efficient and more diversified. We’ve transformed the business to be both a lender and servicer, and our originations business is growing at a very fast clip to keep up with demand.

In servicing, we are one of the largest and most experienced special servicers, managing more than 1.3 million borrowers, thousands of investors and more than 100 subservicing clients. At the end of Q2, we serviced more than $206 billion in UPB.

On the originations side, we’ve built a scalable, multi-channel lending platform that has grown volume by 16X in just the past year. In August, we originated more than $2.5 billion in loans and flow MSRs, which puts us at an annual run-rate of $30 billion.

One thing that hasn’t changed is our commitment to our customers – helping homeowners is one of our guiding principles and our mission is focused on creating positive outcomes for homeowners, communities and investors.

Financially, we are in the final stages of arguably the most significant turnaround in the mortgage industry – our profitability is improving, our originations business is rapidly growing and our strong subservicing and special servicing capabilities position us very well to continue

Continue Reading

UK mortgage approvals hit 13-year high, as firms warn of tough times – business live | Business

A Greggs bakers store in Cardiff, south Wales, at the start of the lockdown

A Greggs bakers store in Cardiff, south Wales, at the start of the lockdown Photograph: Geoff Caddick/AFP via Getty Images

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

A swathe of UK companies are reporting today that Covid-19 continues to hurt their businesses, more than six months after the UK first imposed restrictions to battle the pandemic.

High street baker Greggs has warned that staff faced reduced hours, and potentially job cuts, as it tries to cut its employment costs.

Greggs, famous for its steak bakes, sausage rolls and new vegan offerings, reports that like-for-like sales in September are only 76.1% of the 2019 levels (an improvement on a ‘slow’ August).

With the government’s furlough scheme wrapping up in a month (replaced by a less generous wage subsidy package), Greggs says it must make cuts:


With business activity levels remaining below normal for the foreseeable future we must change the way we work to be as productive and flexible as we can in order to protect as many jobs as possible for the long term. We have completed a review of our activity and requirements in every part of the business and are now proposing a series of changes which are the subject of a collective consultation with union and employee representatives.

Our aim is to minimise the risk of job losses by negotiating reduced hours in our shops and we will update on the outcome of the consultation when concluded.

Metro Radio News
(@MetroRadioNews)

Newcastle based Greggs say they plan to cut staff hours to “minimise the risk of job losses”.

This is when the furlough scheme ends next month.

The chain say though, sales have picked up over the past month as it continues its recovery following

Continue Reading

11 programs that help first-time homebuyers get a mortgage

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective.

  • To qualify for a conventional mortgage, you typically need a 620 credit score, 36% debt-to-income ratio, and 10% down payment.
  • But there are programs that help first-time homebuyers get mortgages even if they don’t meet conventional loan standards.
  • You may be eligible for a government-backed mortgage, a conventional loan backed by Fannie Mae and Freddie Mac, or a program specific to your state.
  • You can also get a special loan if your home requires significant repairs after moving in.
  • Have the Personal Finance Insider newsletter sent straight to your inbox.

Buying your home may feel like an insurmountable challenge, because you have to meet multiple requirements to qualify. Conventional mortgages typically mandate at least a 620 credit score and 36% debt-to-income ratio. Many lenders also ask for at least 10% toward a down payment.

These requirements can be tricky for first-time homebuyers to meet, especially if you’re young. Thankfully, there are plenty of programs designed to help out first-time homebuyers.

You do have to meet some conditions to qualify for such programs. But when it comes to your finances, these loans and grants have more lenient requirements for getting a mortgage than conventional loans.

Here are 11 programs for first-time homebuyers:

Unlike conventional loans, government-backed mortgages are guaranteed by federal agencies. If you default on your payments, then the agency pays the lender on your behalf. This guarantee allows lenders to offer you a mortgage even if you don’t meet the usual conditions for a conventional loan.

FHA loan

With a Federal Housing Administration loan, you only have to put 3.5% down. 

Lenders

Continue Reading

How canceled student-loan and mortgage debts could affect your taxes and the secret to selling a home quickly during a pandemic

Hi, MarketWatchers. Don’t miss these top stories:

Personal Finance
‘We only want to start a home that we know will get paid for when it’s completed.’ KB Home CEO Jeffrey Mezger on his approach to the home-building boom

The pandemic has made home buyers more interested in kitchen storage and adding bathrooms for family members living with them.

The Property Brothers share the little extras that make a big difference in a home

“Property Brothers” stars Drew and Jonathan Scott know that people love homes with unexpected extras — and on the latest episode of “Brother vs. Brother,” they reveal which extras matter most.

The secret to selling a house quickly during a pandemic? Good listing photos

There is no perfect time to sell a house—anyone who’s ever put a property on the market will tell you that. Sure, tradition tells us that selling in spring might be ideal. But at the end of summer? During a pandemic?

Move over, pumpkin spice — fall is for hard cider, and now there’s a premium version

Roostock, based in upstate New York, sells specialty ciders.

This university’s closely-watched COVID-19 protocol brought positivity rates down after a spike — but will it last?

The University of Illinois created its own test for the coronavirus, and students at high risk of exposure are now being tested three times a week.

Red Hot Chili Peppers drummer Chad Smith is selling his $15 million Hamptons home

The longtime drummer of the Red Hot Chili Peppers, Chad Smith, is making moves in the Hamptons. He’s listed his “private waterfront oasis” in Montauk, NY, for $15 million.

New home sales surge to highest level since before the Great Recession

‘Already, more new homes have sold in 2020 than did in all of 2019,’ one economist said.

How canceled
Continue Reading