26
Feb
By First Rate Financial Group
Mortgage

Ensuring Home Contractors Are Following The Rules Under HICPA

Ensuring Home Contractors Are Following The Rules Under HICPAThere are many homeowners who hire contractors to make repairs or upgrades on their homes. It is critical for home improvement contractors to follow all rules and regulations set forth by the law. These regulations have been set forth under the Home Improvement Consumer Protection Act, or HICPA. 

An Overview Of The Home Improvement Consumer Protection Act

The Home Improvement Consumer Protection Act was put forth to ensure that homeowners and contractors come to an appropriate agreement. Some of the rule and regulations that are included in the Home Improvement Consumer Protection Act include:

  • All contractors need to obtain a registration number
  • Home contractors are required to register with the Office of the Attorney General
  • All home contractors need to pay the required registration fees

Finally, the Home Improvement Consumer Protection Act also specifies the various terms that need to be included in each agreement set forth by homeowners and contractors. Any contractors agreed to by contractors and homeowners need to comply with the Home Improvement Consumer Protection Act. The purpose of this act is to protect homeowners against fraudulent contractors. 

What Happens If An Agreement Does Not Follow The Rules?

If an agreement does not abide by the regulations included in the Home Improvement Consumer Protection Act, then there might be liability in a civil court. Furthermore, there could even be criminal charges that result. 

In the event that a homeowner enters into civil litigation against a home contractor, the first item that lawyers will look into include the regulations under the Home Improvement Consumer Protection Act. If the contractor violated any of the regulations, the HICPA may also specify penalties that might be levied against the contractor.

When Does The Home Improvement Consumer Protection Act Apply?

There are only a few exceptions where the HICPA would not apply to a home improvement job. Even though the definitions under the HICPA are very broad, this act does not apply to contractors who earn less than $5,000 of taxable income in a given year. Finally, the HICPA applies only to home improvements. It does not apply to the construction of a new home. The act also does not apply to the sale of any home appliances.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional. 

25
Feb
By First Rate Financial Group
Mortgage

3 Tips to Find the Best Neighborhood to Live In

3 Tips to Find the Best Neighborhood to Live InThe vast majority of people are going to move at least once in their life. Moves can vary in distance. Sometimes, these moves are across town. Other times, they might be across the country. Regardless of the distance, is important to find a neighborhood that fits both the budget and lifestyle. There are a few tips to keep in mind.

1. Consider Renting First

Even though there are powerful electronic tools that can help a family narrow down their potential landing spots in a new city, it is impossible to be 100 percent certain that the community is a comfortable fit until actually living there for some time. Therefore, it might be a prudent idea to try renting first.

Renting in that location doesn’t come with the same commitment as buying property. Therefore, if the neighborhood isn’t the right fit, individuals and families can move without having to sell their house. On the other hand, if the community is still a great fit after a few months or a year, it is easier to buy a house at that point in time.

2. Look At The Cost Of Living

Everyone has a budget and most people like to focus on the price of the home. After all, this is likely going to be the biggest expense; however, there are some other factors that are going to play a role as well.

Think about the cost of gas, transportation, the rates on various utilities, healthcare costs, real estate taxes, food prices, and more. All of these factors are going to play a role in how expensive it will be to live in a certain location. Gas prices are going to vary widely depending on state taxes. Some municipalities have local income taxes while others don’t. There might even be HOA fees to consider. Think about all of these factors and their impact on the cost of living.

3. Prioritize Safety

Lastly, even though the financial factors deserve consideration, safety needs to come first. Take a look at the crime rates in the local area. Read some of the local police reports. When visiting, look for signs of vandalism and home damage. This will help everyone estimate the safety of a potential landing spot pretty quickly. Safety should always come first.

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional.

21
Feb
By First Rate Financial Group
Mortgage

FHA Down Payment Requirements: Homeownership Without A Big Savings Account

FHA Down Payment Requirements Homeownership Without A Big Savings AccountBuying a home for the first time can be a challenge. One of the tools created to help people buy a home for the first time comes in the form of FHA loans. There were loans that were supported by the Federal Housing Administration (FHA). They can require a down payment that is as low as 3.5 percent. 

FHA loans are significantly different from traditional mortgage loans. Those who have purchased a house before have likely heard that the average down payment is closer to 20 percent of the value. This can make it hard for someone to buy a home, particularly if they already have a car loan and credit card debt.

The Role Of The Credit Score For FHA Loans

Anyone who is interested in a mortgage with a down payment of 3.5 percent will want to do everything they can to make sure they have a strong mortgage application. This starts by taking a look at the credit score. 

A credit score of 580 or higher will increase someone’s chances of successfully applying for a mortgage with a 3.5 percent down payment. Those who have a credit score between 500 and 579 will likely be asked to put 10 percent down in order to qualify for a loan through the FHA program.

For example, someone who is looking to buy a home that costs $250,000 may only need to put down $8,750. On the other hand, if someone’s credit score is under 580, they might be asked to put down $25,000. This can make a tremendous difference to someone who is trying to purchase a home.

The Other Requirements Of An FHA Loan

While a small down payment is attractive to many people, one catch is that homeowners may be asked to purchase private mortgage insurance, or PMI, under this program. This insurance policy is required because the lenders through the FHA program are taking on more risk by accepting a smaller down payment.

PMI is a cost that will need to be paid monthly, in addition to the mortgage payment. Those who are willing to put down a larger down payment might be able to get the PMI requirement waived.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.