According to the Federal Emergency Management Agency, floods are the most widespread and costly disaster in the United States. Millions of dollars are lost each year by homeowners in the United States due to flood-related damage.  Flooding can strike anywhere, even if you live inland. Between 1996 and 2019, 99% of the counties in the United States were impacted by flooding.

Flooding can be caused by rain storms or hurricanes. It can also be caused by melting snow, storm drainage system blockages, or failed dams and levees. Flood insurance is not available through homeowners insurance so you will need separate flood insurance for your home and contents.

Who Should Get Flood Insurance?

People often believe that flood insurance is only necessary if they are located in high-risk areas which is one of the many tall tales of real estate and insurance. However, a large percentage of flood claims are made by properties outside high-risk flood areas.

Flood insurance may be required depending on where you live. Federal law requires that flood insurance be purchased by insured or regulated lenders for homes in flood-prone areas.

If you have been eligible for federal disaster assistance, flood insurance may be required if you are located in a high-risk flood area. If you have such circumstances and do not have flood insurance, you may be ineligible to receive future disaster assistance. Your lender may require that you have flood insurance, even if your home is not in a high-risk zone.

What is Covered in Flood Insurance?

Your home is protected up to $250,000 when you purchase flood insurance. You can choose from two different forms of coverage: replacement cost basis where you are reimbursed at the current cost for new materials and home construction or actual cash basis where you are reimbursed for material costs minus depreciation. Remember that contents such as furniture or appliances are not covered by insurance unless purchased separately!!

Private insurance may be available if you require additional coverage or if you live in a community that is not part of NFIP. These policies usually do not have a deductible.

What Isn’t Covered in Flood Insurance?

Non-essential items are not covered by flood insurance. Carpeting, furniture, and basement contents are not covered. Flood insurance policies also don’t cover living expenses if you have to temporarily move while your home is being repaired or replaced.

How Do I Buy Flood Insurance?

Flood insurance is sold mainly through the National Flood Insurance Program. This type of coverage is also sold by around 120 private insurance companies. An insurance agent will be able to help you purchase an NFIP plan as these policies cannot be purchased directly from the government. 

How Much Does Flood Insurance Cost?

The average flood insurance cost is $700. However, residential flood insurance premiums can come out to be quite a bit less depending on where your home is. Costs can also be affected by the year your house was built, the number of floors in the home, and the amount of coverage you have.

Flood insurance can also be purchased from private companies in which prices will also vary depending on where you live. A home in a high-risk zone could cost thousands more to insure over a home in a low-risk flood zone. 

FEMA releases maps every so often that show the danger of flooding in American communities and Special Flood Hazard Areas which are the areas at the highest risk of flooding. You will likely pay more for coverage if your home is in one of these areas. 

How is Flood Insurance Used?

Flood insurance covers flood-related damage and flooding. In simple terms, a flood refers to excess water on land that is normally dry and covers at least 2 acres or damages 2 properties at the least. Typically, homeowners who buy flood insurance policies must wait around a month for it to take effect before they can be used. This is to stop people waiting until flooding is imminent before buying a policy.

There are exceptions to this rule. For example, if you just bought a house or are becoming a homeowner for the first time, there may be a shorter waiting period. Private flood insurance providers have a shorter waiting time of between 10 and 14 days. You should notify your agent as soon as you can if you have to file a flood insurance claim.

Conclusion

Flood insurance is important to have whether you live in a high-risk flood zone or a low-risk flood zone. Make sure you do your research and buy flood insurance for your home as soon as you can. You don’t want to be caught off guard!!

It’s not every day that you buy a house and there is nothing like the experience of being able to own a home. The home-buying process for first-time buyers can seem daunting. However, there is nothing to fear. Everyone goes through these feelings when they do this process for the first time but it is important to remember that buying a house is a huge achievement. Here are some of the top fears that most first-time homeowners deal with and some things to remember so those fears can be eliminated.

How Do I Choose the Right Real Estate Agent?

Many first-time homeowners understand that they are going to need help in the home buying process. How do you know that this person has your best interests in mind? You should look for someone who has experience in real estate and a working knowledge of the area where you are looking to buy. It is also important to choose a real estate agent that you feel you can trust. 

Ask for referrals and interview at least three candidates. Do not be afraid to follow up with the ones you are interested in and ask more questions. Make sure that the agent is licensed properly and ask about the commission. You don’t want surprises at the close. A competent real estate agent is well worth their commission and will be able to give you honest and straightforward answers to your questions.

What Should I Look For When Hiring a Mortgage Lender?

Having a good relationship with a mortgage lender is one of the most important aspects of the home buying process. Although most agents have a preferred lender in mind, that doesn’t necessarily mean you are obligated to use them. 

A big mistake that a lot of first-time homeowners make is choosing a mortgage lender only based on the interest rates they offer. In order to get a good interest rate, you need to have a good credit rating. Your credit rating is the most important factor in determining interest rates. A good mortgage lender will guide you through all the loan options and approved processes. They will keep you informed about the status of your loan, and answer any questions that you may have.

How Do I Figure Out My Budget?

Mortgage lenders can offer something called a pre-approval. This is a tool that can help you discover the perfect price range for you, so that you can begin your home search with all the knowledge you need. Another amazing benefit of getting a pre-approval is that your offer may get accepted by a seller much faster than a potential buyer who is not already pre-approved. Once you are pre-approved, closing can be done faster since you only need to complete the title search, home appraisal, and final approval. This will appeal to the home seller and may be just the trick to get you started on homeownership.

What Do I Do if I Have a Bad Credit Score?

If you want the best interest rates, you must have a high credit score. A good credit score indicates that you do not present a high risk to your mortgage lender because you are reliable on payments and indicates you have the ability to pay. This increases your chances of getting approved for a loan. 

Your mortgage lender will be able to access your credit score with your permission and provide more information. They can also give you tips on improving your credit if it isn’t where it needs to be. You don’t have to be discouraged if you aren’t approved. Don’t be discouraged if you aren’t approved! With some research and advice from your lender, you can find some companies that can help you even with a low credit score. 

What if I Can’t Afford the Down Payment?

There are some programs offered to first-time homeowners by the Federal Housing Administration that have down payment requirements of as low as 3% of the total cost of the home! If you are a veteran, a surviving spouse, or an active member of the military, there are loans available that do not require a down payment. There are even loan programs that allow down payments that are gifted to you. Do not be afraid to ask your lender about grants and other assistance programs for first-time homeowners. That’s what they are there for!!

How Stressful is the Loan Application Process For First-Time Homeowners?

If you hire a good mortgage lender, they will be the ones to lead you through all of the steps of the loan application process, including prequalification, underwriting, and closing. They will give you a list of all the items that they need in terms of documentation. This includes W-2s for the last two years, payment slips from the previous 30 days, and copies of statements for checking, saving, or any other assets.

Be aware that you may be asked to provide updated copies of some documents and this is completely normal. Make sure you keep your lender updated at all times as your final loan approval could change based on your final situation. This is why it is recommended to hire a mortgage lender based on how trustworthy and reliable they are rather than whether or not they have the best rates.

Conclusion

You will not have to go through this process alone. Having the help of realtors and mortgage lenders will make the home buying process so much easier. You have plenty of options and will be able to successfully go through the process like so many other first-time home buyers have done! Call a trusted real estate agent near you today to begin the process of buying your first home.

Home ownership in the United States at a 6-Year High

According to the United States Census Bureau the United States home ownership rate has climbed to a 6-year high. The home ownership rate started taking a dive after 2004 and continued in a downward spiral after the last recession hit in 2006. The real estate market has been getting stronger, even with the pandemic, the 2020 real estate market has been very strong and 2021 is expected to be even stronger. 

The Economy is Strong

There was a lot of talk at the beginning of last year about another recession. That didn’t happen. In fact, the economy was very strong last year and afforded many people the opportunity to buy a home. The real estate market in 2020 is off to a great start, as well. It’s not only a good time for first-time homebuyers to purchase a home but it’s the perfect time for current homeowners to sell a home and buy a larger one.

Mortgage Interest Rates Are Low

Mortgage interest rates are at a historically all-time low currently. This makes home ownership very desirable and affordable for many people. More first-time home buyers are finally able to be approved to buy a home. During the last recession, many people lost their homes due to foreclosure or bankruptcy. Some people had to sell their homes using the short-sale process. This put home ownership on hold for these people for a few years. Finally, these unfortunate circumstances are turning around for people and they are able to purchase homes again.

Younger Generations are Buying Homes

The younger generations, the Millennials and Gen Z, are finally buying more homes. In 2020 the largest group of millennials is turning 30 years old. They are entering the housing market in full force right now. Realtor.com reports that in the fourth quarter of 2019 millennials held 48 percent of home purchase mortgages making them the largest generational group of homebuyers. 

They took their time in their twenties living with their parents, paying off student loans and getting out of debt. Now they are saving their money to become homeowners. In fact, the Millennial Report states that 41 percent of Gen Z and 40 percent of the younger group of millennial’s now have a goal to purchase a home in the next few years and are saving their money to be able to do so.

New Construction is Growing Again

There has been more new construction started the past couple of years which is continuing in 2020. New construction was almost at a halt during the last recession and has been on a slow climb ever since. With more people being able to buy brand new homes as opposed to renting, the housing market has grown even stronger. This has definitely helped home ownership rates increase.

With the positive outlook on home ownership and low interest rates, it’s a great time to reach out to your local Realtor and mortgage professional to put a plan into action for buying a home. We strive to provide you with exceptional, honest and professional service with your goals in mind.

Fuel Your Travel Business With An Unsecured Business Loan

Is your Travel Businesses will be seasonal in Nature?

Many Travel Businesses will be seasonal in nature, with sometime drastic swings in their sales. Most banks will consider such a business to be too high of a risk to lend to. There are certain non-bank alternative lenders that do see the value in businesses like this and have designed loan strategies around the nature of businesses with such seasonal swings.

Unsecured business loans are available for amounts ranging from $10,000 to $250,000 or more. The repayment period of the loan vary from 6 months to several years depending on the amount of loan a borrower wants and his or her credit history. Unsecured Business Loan is best suited for short term and cashflow needs.

Apply for an online unsecured business loan can save your time and money. You just need to complete small application form online and the lender will get back to you with the appropriate loan option.

A few advantages of getting an Unsecured Business Loan for your business are:

• Retention of the Ownership– An entrepreneur can retain the current ownership in his company instead of raising funds by selling interest in his company to an outsider.
• Cash Flow management- Unsecured business loan provides borrower an access to capital with minimal up-front payments and the flexibility to design a loan repayment schedule suitable to your finances.
• Tax Advantage- Interest on the loan is tax deductible. Thus, can help in saving hard earned money of the borrower.

Businesses with cyclical sales patterns will need to show the sales pattern over the last 2 years typically as the lender will need to see the fluctuations so they will know what to expect. Small Business Lending is all about offsetting risk and by knowing what to expect, the risk can be understood and planned for. For this reason, when you have a seasonal business, you will generally need to have at least 2 years of business history to demonstrate the businesses ability to repay the Small Business Loan.

You need to understand the fact that the lender is entitled only to the interest on its loan. You are not liable to pay any percentage of the profits or a share in the company that an investor would expect.

Unsecured business loans are designed specifically for businesspersons to finance their need for capital expansion of a business or assist with cashflow needs. The funds from an unsecured small business loan can be used for any business related purpose and can be paid back at any time prior to the agreement termination. Be aware, if you do pay it off early, you may be able to waive any prepayment clause if you are refinancing the loan into a new and larger loan with the finance company.

The best thing about an unsecured business loan is that it does not require a borrower to put a security against the loan. Thus, the borrower’s property is not under any risk of repossession. Because of the higher risk, you will need to expect to pay a higher interest rate than you would if the loan were secured by company or personal assets.

Below, you will find a video to give some more information on Secured and Unsecured Small Business Loans.

Interested in an Unsecured Small Business Loan for your company? My recommendation is to see IMMFinancial.com, they have many options for you.

Remember: A good credit history is always useful while applying for a loan. In case of an unsecured business loan, absence of collateral makes it necessary for a lender to identify the credit or recognize worthiness of the borrower to avoid any default by the borrower in the future. Higher the credit score, higher is the possibility of getting a fast and lower cost loan, so work on your credit score and you will see it doing wonders for you.

The Many Misconceptions About a Reverse Mortgage

(HECM) It is amazing how the reverse mortgage has received some misguided information over the years, well I’m here to clear the air about this wonderful product for people 62 years old or older.

What is a Reverse Mortgage?

The reverse mortgage is a federally insured loan product backed by the Federal Housing Administration accessible to homeowners 62 and older. These reverse mortgage loans allow senior citizens to tap into a portion of their equity to help supplement retirement income completely TAX FREE. The best part is the borrower has NO monthly mortgage payment. The borrower(s) must maintain property taxes, insurance and maintenance of the home.

Here are some of the most common misconceptions

The bank owns your home, this is false. The borrower remains on title as the owner

My spouse can be thrown out of the house if one of us dies, once again not true. The surviving spouse still remains on title of the home and nothing will happen to the terms of the reverse mortgage

My children will get stuck with the loan and will have to start making payments or the bank will foreclose and go after the children (Heirs), The reverse mortgage is a nonrecourse loan which means the property is the ONLY collateral for the loan. When the last remaining person on the reverse mortgage dies the children or heirs have three choices:

1. They can refinance the loan into their names
2. They can sell the property or
3. They can turn the keys over to the bank.

In option one and two they have initially 6 months to accomplish these choices and can be extended for more time.

A Reverse cannot be used to purchase a home, the reverse mortgage can also be used to purchase a home with at least 50% down payment and still have NO monthly mortgage payments.

Your home must be free and clear to qualify, you can actually refinance your existing mortgage into a reverse mortgage, the rule of thumb is at least 50% equity in the property.

In Closing

In closing the reverse mortgage helps hundreds of thousands of senior citizens stay in the home they love, downsize to a smaller home or simply supplement their monthly income by receiving a monthly tenure and even having a line of credit to tap into TAX FREE instead of withdrawing funds from their retirement account(s) and paying Federal and State taxes. It is best to deal with a LOCAL reverse mortgage specialist who can sit down with the clients and guide them through every step of this wonderful product. Bottom line is DO NOT be afraid of the reverse mortgage..

Written By Mike Anderson CRMS

A Quick Video on Reverse Mortgages