Valor Homes Team: Guiding Heroes in Navigating VA Loans for Homeownership in Central Kentucky [INFOGRAPHIC]

VA Loans Help Heroes Achieve Homeownership [INFOGRAPHIC] Some Highlights VA home loans can help people who served our country become homeowners. These loans can help qualified individuals purchase a VA-approved home or condo, build a new home, or enhance their current one. Owning a home is the American Dream, and one way to show our appreciation to veterans is by providing them with important information about the advantages of VA home loans.

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How VA Loans Can Help Make Homeownership Dreams Come True | Valor Homes Team | Central Kentucky

How VA Loans Can Help Make Homeownership Dreams Come True For more than 79 years, Veterans Affairs (VA) home loans have helped millions of veterans buy their own homes. If you or someone you care about has served in the military, learning about this program and its advantages is essential. Here are some important things to know about VA loans before you buy a home. The Many Advantages of VA Home Loans VA home loans provide a pathway to homeownership for those who have served our nation and are a great benefit for buyers who qualify. According to the Department of Veteran Affairs: Options for No Down Payment: Qualified borrowers can often purchase a home with no down payment. That’s a huge weight lifted when trying to save for a home. Limited Closing Costs: There are limits on the closing costs when you qualify for a VA home loan. So more money stays in your pocket when it’s time to seal the deal. Don’t Require Private Mortgage Insurance (PMI): Many other loans with down payments under 20% require PMI. VA loans do not so that veterans can save on monthly housing costs. A recent article from Veterans United sums up just how impactful this loan option can be: “For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market. These flexible, $0-down payment mortgages have helped more than 24 million service members become homeowners since 1944.” Bottom Line Owning a home is the American Dream. Veterans sacrifice a lot to protect our country, and one way we can show our appreciation is by ensuring they know all the benefits of VA home loans. Thank you for your service.

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Thinking About Using Your 401(k) To Buy a Home?

Thinking About Using Your 401(k) To Buy a Home? Are you dreaming of buying your own home and wondering about how you’ll save for a down payment? You're not alone. Some people consider tapping into their 401(k) savings to make it happen. But before you decide to dip into your retirement to buy a home, be sure to consider all possible alternatives and talk with a financial expert. Here’s why. The Numbers May Make It Tempting The data shows many Americans have saved a considerable amount for retirement (see chart below):     It can be tempting when you have a lot of money saved in your 401(k), and you see your dream home on the horizon. But remember, dipping into your retirement savings for a home could cost you a penalty and affect your finances later on. That's why it's important to explore all your options when saving for a down payment and buying a home. As Experian says: “It’s possible to use funds from your 401(k) to buy a house, but whether you should depends on several factors, including taxes and penalties, how much you’ve already saved and your unique financial circumstances.” Alternative Ways To Buy a Home Using your 401(k) is one way to finance a home, but it's not the only option. Before you decide, consider a couple of other methods courtesy of Experian: FHA Loan: FHA loans allow qualified buyers to put down as little as 3.5% of the home's price, depending on their credit scores. Down Payment Assistance Programs: Many national and local programs can help first-time and repeat homebuyers create the necessary down payment. Above All Else, Have a Plan No matter what route you take to purchase a home, talk with a financial expert before you do anything. Working with a team of experts to develop a concrete plan before starting your journey to homeownership is the key to success. Kelly Palmer, Founder of The Wealthy Parent, says: “I have seen parents pausing contributions to their retirement plans in favor of affording a larger home often with the hope they can refinance in the future… As long as there is a tangible plan in place to get back to saving for their retirement goals, I encourage families to consider all their options.” Bottom Line If you’re still thinking about using your 401(k)-retirement savings for a home down payment, consider all your options and work with a financial professional before you make any decisions.

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Homeowner Net Worth Has Skyrocketed

Homeowner Net Worth Has Skyrocketed If you’re weighing your options to decide whether it makes more sense to rent or buy a home today, here’s one key data point that could help you feel more confident in making your decision. Every three years, the Federal Reserve Board releases the Survey of Consumer Finances (SCF). That report covers the difference in net worth for both homeowners and renters. Spoiler alert: the gap between the two is significant. The average homeowner’s net worth is almost 40X greater than a renter’s. And here’s the data to prove it (see graph below):   The Big Reason Homeowner Net Worth Is So High In the previous version of that report, the net worth of the average homeowner was roughly $255,000 and that of the average renter was $6,300. But in the release that just came out this year, the gap widened as homeowner net worth climbed dramatically. As the Survey of Consumer Finances (SCF) report says: “. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.” One of the biggest reasons homeowner net worth skyrocketed is home equity. Over the last few years, known as the ‘unicorn’ years for housing, home prices went through the roof. That’s because there weren’t enough homes for sale, and there was a big influx of buyers rushing to buy them and take advantage of the then-record-low mortgage rates. That imbalance of supply and demand pushed prices higher and higher. As a result, most homeowners who had a home during that time saw their equity grow a lot. If you’re still in the middle of making your decision on whether to rent or buy, you may wonder if you missed the boat on the big net worth boost. But here’s what you need to realize. As a recent article in The Ascent explains: “Whether your net worth increased in recent years or not, there are steps you can take to boost that number in the coming years. . . buying a home can be a great way to grow your net worth, since home values have a tendency to rise over time.” Historically, home prices climb over time. Even now that mortgage rates are closer to 7-8%, prices are still rising in many areas of the country because supply is still low compared to demand. That’s why expert forecasts for the next few years call for ongoing appreciation – just at a pace that’s more typical for the housing market. While it likely won’t be the record ramp-up that happened over the last few years, people who buy now should continue to grow equity in the years ahead. That means, if you’re ready and able to buy a home today, you’ll be making an investment that’ll help build your net worth in the long run. As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says: “. . . when deciding to rent vs buy, one must calculate the total cost of homeownership (maintenance, utilities, commuting, etc.) and the total financial benefit. Based on new Fed data . . . the median net worth of homeowners was $396,200 vs renters at $10,400. There is no question about the wealth gains that homeownership provides.” Bottom Line If you’re on the fence about whether to rent or buy a home, remember that homeownership can give your net worth a big boost over time. If you want to learn more about this or the many other benefits of owning a home, let’s connect.

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