Homeownership Archives

May 15, 2024May 15, 2024

The Rise and Rise of Down Payments

A down payment is the portion of a home’s purchase price the mortgage borrower pays upfront. You knew that. But did you know the median down payment for U.S. homebuyers is now more than $55K+? That’s remarkable. It was less than $45K just last year.

Buyers often try to put 20% of the purchase price down. That’s not always feasible, and Redfin’s latest analysis shows today’s typical homebuyer putting about 15% down. Again, big rise from last year, when the typical down payment was 10%. In some areas, a normal down payment is now well over the 20% mark.

What’s the impact of all this on deed transactions?

April 9, 2024April 25, 2024

Is Buying a Home a Path to Financial Freedom? (Is the Answer Changing?)

For most U.S. deed holders, a home is at the core of their retirement wealth. So, does that make buying a home a path to financial independence?

It certainly can be, although the calculus is changing.

March 1, 2024April 25, 2024

Core of the American Dream? Three-Fourths Call Buying a Home Goal #1

The U.S. population has all sorts of goals. But of all that we strive for in our lives, seems we place the highest priority on owning a home. In recent surveys, three-fourths of respondents said owning a home is “the leading component of the American dream.”

And yet, just about the same percentage of people say housing is too expensive to buy. With each year, it feels like fewer can afford to buy a home. It’s almost like buying a home is a wealthy person’s thing.

Homeownership is still the centerpiece of the American dream, but affordability issues such as high home prices, income that is too low or not being able to afford the down payment and closing costs are holding back nearly 3-in-4 aspiring homeowners.

—Greg McBride, chief financial analyst at Bankrate LLC

You said it, Greg.

February 23, 2024April 25, 2024

Do I Have to Pay Off My Student Loans Before Buying a Home?

This month, 150,000+ people received emails that say some of their student loan debt will be forgiven. The latest $1.2 billion worth of debt forgiveness is a ray of sunshine for many potential first-time homebuyers. It impacts a person’s access to mortgage loans, and therefore the ability to acquire property deeds.

But what about the student debt that the borrowers still have to pay? Some graduates pay off their loans, and must (or choose to) delay home buying to do that.

Others say: Forget waiting. If it’s possible, let’s buy a home today. Yes, having the student loan done and gone would be great — but there’s a lot to be said for putting a foot on the homeownership ladder now.

Each person has to do what’s best in their circumstances. But looking at some specific parts of this question can help readers come to their own sound decisions.

January 11, 2024April 25, 2024

Washington State’s Path to Fair Housing: The 2024 Recording Fee Increase and Covenant Homeownership Program

Beginning January 1, 2024, Washington State implemented a substantial revision to its recording fees, significantly affecting the real estate sector. This modification entailed a $100 increase in the recording fee for each document, aligning with the Covenant Homeownership Program assessment as outlined in RCW 36.22.185. This hike is applicable to a broad array of documents, including standard recorded documents, Deeds of Trust, and all surveys and map-related documents.

December 30, 2023April 25, 2024

Owning a Home Just Got More Useful. AI Speeds Up HELOC Lending

At the year’s end, it’s fun to pick out the best innovations to appear during the past 12 months. What about the role of artificial intelligence in home lending?

More people might take out home equity lines of credit (HELOCs) to put their home equity to work — if only it weren’t such a drawn-out process. The typical HELOC setup takes five weeks. What if the HELOC application process could be completed in just five days? What if getting approved could be as fast as signing up for a credit card?

In 2023, two companies pooled their resources and proved it possible.

December 29, 2023April 25, 2024

Added to a Deed: What Are the Tax Consequences?

It’s a common question. You’re going to be added onto someone’s deed. Will you have to declare your new homeownership to the IRS?

An acquisition of real estate is not considered income. But being named on a deed could still implicate taxes. Let’s explore why.

December 18, 2023April 25, 2024

What Is “Subject-To” Home Buying? AKA: Taking Over the Mortgage Payments

Ever heard someone say they got a “subject-to” offer on their home? Or maybe you or someone you know is contacted with a subject-to offer. Maybe you saw a sign saying “We buy homes!” and wondered what’s going on.

Subject-to is a little-known strategy in the world of deed transactions. It comes in many forms. But the gist of it is this. If the seller does a “subject-to” sale, a buyer agrees to take ownership without having to sign mortgage documents. The purchase is “subject to” the current loan terms. And the buyer takes over the monthly payments.

So, now you’re wondering: Is this offer a good deal or a bad deal?

Let’s take a closer look.

December 14, 2023April 25, 2024

Update! Fed Signals 2024 “Pivot” on Interest Rates. What Should Home Sellers and Seekers Know?

As we’ve all noticed, deed transfers really got stuck in a rut in 2023. Too few owners are selling their homes. Supply is down. Prices are up.

A core issue? The Federal Reserve. Over the past two years, the Fed has hiked rates in order to banish inflation and to tighten up the economy. So, if you think it’s a terrible housing market out there, interest rates have absolutely factored into your frustration.

But finally, the Fed has announced it will not hike interest rates again in the coming year. The “signal” from the Fed is that sometime in 2024 it will even cut those high rates.

Time to buckle up? Let’s take a look.

December 6, 2023April 25, 2024

KeyBank Talks Fair Housing—Putting Its Money Where Its Mouth Is

KeyBank® is putting $400,000 into NeighborWorks Western Pennsylvania. Why? To make housing accessible to Black communities — as they have been disproportionately left out of homeownership.

Sure, $400,000 is a modest sum these days. But it’s part of a bigger picture.

In recent years, KeyBank has contributed close to half a billion dollars to Greater Pittsburgh and Western Pennsylvania to bolster housing affordability and strengthen communities. And in total, KeyBank is investing $40 billion in communities where fair access to Pennsylvania homes is most critically needed.

“This grant is part of KeyBank’s commitment to invest $40 billion in the communities it serves.”
—KeyBank

So this grant is only part of KeyBank’s commitment to equitable access to homeownership for Pennsylvanians.