Confusion About Ownership Is Hindering Young Buyers

Confusion About Ownership Is Hindering Young Buyers: Are you providing the appropriate information and resources for millennial prospects curious about home buying?

Can Mortgage Debt Increase Your Life Expectancy?

Can Mortgage Debt Increase Your Life Expectancy?: Taking on a mortgage may actually be good for your health, a new study suggests.

HUD Rescinds Down Payment Assistance Rules for FHA Borrowers

HUD Rescinds Down Payment Assistance Rules for FHA Borrowers: The guidance, which was released in April, sought to clarify documentation requirements for government entities that provide financial aid to home buyers.

Can I Sell My Home Using a Gift of Equity?

Real estate can be a tricky business. You put your home on the market, people make offers and there’s a lot of back-and-forth to make sure that everyone gets what they believe is the best deal. There are a lot of gray areas that make things more confusing, too. What if you’re selling your home to one of your own children or another relative and don’t want them to have to pay a bunch of fees and down payments? Maybe you don’t even want to profit off the sale at all… you just want them to be able to cover the remainder of the mortgage. Depending on the situation, using a gift of equity may be a better option to help make the sale happen.

What Is a Gift of Equity?

As you make payments against your mortgage, the amount that’s owed against your home decreases while the value of the property remains the same. The higher the value is, in comparison to what’s still owed against it, the more equity the home is said to have. You’ve likely heard about equity-based loans or other ways to use equity as a form of security, and they all come down to the concept that your home is worth more than what’s actually owed to pay off the remainder of its mortgage.

If you’re selling your home to a member of your family, in many cases you can use this equity to their advantage. A “gift of equity” is the practice of using the property’s own equity as a down payment for someone wanting to buy the property. This not only saves your family member money but may also qualify them for a better loan or lower mortgage payments if they’re borrowing to pay the remaining difference.

Selling Your Home

Before you can sell your house using a gift of equity, you have to determine the actual value of the property. This has to be a fair market appraisal, and if there’s a lender involved, then they may wish to choose the appraiser. You will also need to document any details relevant to the gift of equity, such as establishing a relationship, providing proof of residency (as well as any rental terms, if they apply) if the buyer already lives on the property and any additional details that are relevant to proving that both of you have a qualifying relationship and that you wish to make the gift of equity.

There are also issues such as closing costs and escrow fees that may have to be taken into account. In most cases, though, these can be covered by seller concessions (where you agree to absorb the costs by taking less of the sale price for yourself) as you are allowed concessions of up to 6 percent of the sale value in most cases. You will also need to draft a gift letter for use by both the lender and the IRS, which as you might guess, means you also have to pay taxes on the value of the gift.

Is It Actually Allowed?

In most cases, there is nothing preventing you from selling your home using a gift of equity so long as the buyer is a spouse, child. dependent or other individual with an established blood or legal relation to the seller. This includes both blood relatives and those who are adopted or placed under legal guardianship of the seller. Fiancés and domestic partners can typically qualify as well, so long as it’s allowed by the jurisdiction in which you live. Friends, non-related roommates and other unrelated buyers do not qualify.

The big thing to remember when it comes to selling your home using a gift of equity is that the rules for doing so will vary depending on where you live and the equity gifting program you use. There can actually be some pretty significant differences from one program to the next, so you definitely shouldn’t rush into selling with a gift of equity until you’ve done some research to see what the best way to do it in your state is. With that said, if you do your due diligence, this can be a good way to pass on property to a loved one, provided you avoid the potential pitfalls.

Ready to Sell?

Just because using a gift of equity to sell your home can be tricky doesn’t mean it has to be. With HomeKeepr you can find a seasoned real estate professional to guide you through the process every step of the way to ensure that you get the best possible experience. Check it out today and you’ll be on your way!

The Cheapest and Priciest Places to Live in the U.S.

The Cheapest and Priciest Places to Live in the U.S.: See how your city ranks among 75 metros when factoring in rent costs, average utility and internet costs, fuel prices, and food.

5 Tips for DIY Paint Disposal

A lot of DIY projects involve paint. Unfortunately, the majority of them don’t use the exact amount of paint that comes in the cans you buy. This leaves you with extra paint that you don’t have anything to do with, and over time you might even build up quite a collection of excess paint cans. Don’t just dump them out or throw them away, though… doing so is illegal in most areas. If you’re not sure what to do with all of the paint you’ve got left over, here are a few things to think about.

Know What You’re Dealing With

The very first thing you should do when getting ready to dispose of the paint you’ve used for a project is to identify the type of paint you have. You should have either oil-based paint or latex paint, and if you aren’t sure then you need to check the label. There are typically more options available to dispose of latex paints than oil-based paints, so taking the time to figure out which type of paint you have is essential to make sure you don’t dispose of your paint in a way that could get you in trouble.

Let It Dry

If you have latex paint to dispose of, you should be able to throw it out once it has dried. If there is only a little bit of paint left in the can, you can accomplish this by simply leaving the lid off of the can for a few days until it dries out. If you have a larger amount of paint, you’ll need to get at least some of it out of the can first. Consider pouring at least some of the paint into a cardboard box that you’ve lined with a plastic bag or otherwise sealed to prevent leaks. You can also apply the paint over cardboard, wood or paper with a brush or roller to create thick coats that you then allow to dry. If you still have unwanted paint, commercial hardening agents are also available that you simply mix into the paint and wait while the paint hardens.

Soak It Up

As latex paints are soluble in water before they dry, you can take advantage of this by diluting the paint with additional water. Once the paint is suitably watery, pour it over absorbent materials such as paper or foam. Allow these to dry and then dispose of the materials that will have the remaining paint soaked into them. If drying seems to be taking a long time, try setting the wet items outside and spreading them out as much as possible. The heat, sunlight and increased surface area will increase evaporation speeds, resulting in a faster overall drying time.

Upcycle the Paint

Before you get rid of your latex or oil-based paint, think about whether you have any upcoming projects that could benefit from it. Using the paint for other projects will help you to use up whatever’s left of the paint and will also save you from having to buy additional paint when those projects come around. It could even be that you have a project planned that you hadn’t originally considered painting at all but that might benefit from a coat of paint. Even if you don’t have any future painting projects coming up, others might; ask any DIYers that you know if they need paint or check online for DIY groups in your area that trade paint and other supplies.

Safe Disposal Services

Knowing where to recycle or otherwise dispose of liquid paint is important, especially if you have oil-based paints that can’t simply be thrown away. Recycling centers, environmental groups and hazardous waste disposals often have paint recycling and disposal services that accept both latex and oil-based paint. If you aren’t sure where to look, check online or ask around at local hardware and paint supply stores to get recommendations.

Outdoor Fireplaces: Your Need to Know Get Started Guide

Adding an outdoor fireplace can be a great way to liven up your backyard or patio area. Not only do outdoor fireplaces provide a unique visual aesthetic, they can also serve a functional purpose. Even though it’s outside in the open air, the heat produced by an outdoor fireplace can actually keep the surrounding area fairly warm on cool autumn evenings. Before you decide to have an outdoor fireplace installed, though, there are a few things you should take into consideration.

Fireplace Materials

Depending on the look and functionality you want, there are a few different options available in regard to what your fireplace can be made of. Commercial outdoor fireplaces made of iron, steel or other metals are available for purchase and installation as-is. If you’re building the fireplace itself, materials such as concrete, brick and stone are often used. In many cases, a concrete or stone fireplace will feature supplemental components made of metal such as fireplace grates and racks to hold logs or other fuel.

Chimneys

Another important aspect of your outdoor fireplace is the chimney. Even though the fireplace is outside, you still need to divert smoke up and away from you and your guests as there are a number of hazardous materials found in fireplace smoke. A number of options made of metal or other heat-resistant materials are available, and it is also possible to build a chimney from brick or stone as well. Even if the chimney is constructed from one of these materials, a liner may be needed to prevent smoke from leaking out of cracks or gaps in the chimney construction.

Fuel Options

Wood is the most popular fuel option for outdoor fireplaces, though it is not the only one. Propane fireplaces are also a possibility, though fuel lines will have to be run through the fireplace material so that the tanks can be hooked up safely away from the fire. Other less common options include pressed wood pellets, charcoal and even some forms of biofuel

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Cooking Options

Many people who own outdoor fireplaces use them for cooking as well, allowing the fireplace to double as a rotisserie or a wood-fired pizza oven. This may restrict some of your fuel options as the fuel needs to be food safe, and the fireplace design will need to incorporate a large enough chimney to prevent excess smoke from building up around the food. Depending on the design you want, additional components such as metal cooking grates, a heat stone, rotisserie controls or other features may also be needed.

Cleaning and Maintenance

As with any fireplace, an outdoor fireplace will require periodic cleaning and maintenance. This is especially important before winter as the fireplace will be exposed to potential freezing temperatures and other inclement weather that could cause cracks or other damage to appear. The fireplace should have a visual inspection every few months for signs of problems and should have its chimney cleaned at least annually. After any period where the fireplace has not been used for more than a few weeks, the chimney should also be checked to make sure that birds or other animals have not attempted nesting or otherwise created potential blockages within the chimney.

Other Considerations

Before installing an outdoor fireplace, be sure to check and see whether there are any restrictions or ordinances in place in the city where you live. If you’re in a homeowner’s association, you should also check to see if they have any rules concerning outdoor fireplaces. You may be restricted in the materials you can use, the fuels you can put in it, the height of your chimney and even the location of the fireplace, in regard to nearby vegetation or buildings. Installing an outdoor fireplace without checking this first could result in fines or possibly even having to remove the fireplace entirely.

Ready to Build?

Now that you have a better idea of what you’ll need, are you ready to find someone to build or install an outdoor fireplace for you? Check out HomeKeepr to find a professional you can trust who will help you create the outdoor fireplace of your dreams.

Oregon Becomes First State to Ban Single-Family Zoning

Oregon Becomes First State to Ban Single-Family Zoning: “We committed to significant investments that will help every family have a warm, safe, and dry place to call home,” governor says.