Different Loan Types Explained

Purchasing your first home can be difficult to navigate, especially if you are new to the real estate world. All of the brand new lingo getting thrown at you can be super overwhelming, so if you’re feeling confused, you’re not alone! However, the good news is that even though this process may seem complicated, it’s truly very simple! Unfortunately, if you don’t have cash outright to buy an entire house (most people don’t, especially for their first one), you have to borrow the funds from a bank with interest. Your real estate agent may recommend a lender, or you can pick your own if you like to do your own research. Either way, you should expect the same process.

What To Expect When Talking to a Loan Officer

The first question your personal or suggested loan officer may ask: “What type of loan do you want?”

Your real estate agent, loan officer, or lender may suggest one that they recommend. Or, they may ask more questions about your situation to determine the right choice. They might throw out words like conventional, 10-31 Exchange, investment, FHA, fixed rate, adjustable rate, and more. If you’re feeling confused, let’s help break it down to terms that actually make sense.

Types Of Loans

  • Conventional: This popular type of home loan isn’t insured or guaranteed by any government entity. This separates it from the following types of loans.
  • FHA: The Federal Housing Administration (FHA) mortgage insurance program is managed by the Department of Housing and Urban Development (HUD), a federal government entity. Fortunately, these loans are available to all types of borrowers, contrary to popular belief. Check out our guide on FHA loans for more details on this type of loan.
  • VA: The U.S. Department of Veterans Affairs (VA) offers a loan program to military service members and their families. Similar to the FHA program, these types of mortgages are guaranteed by the federal government. This means the VA will reimburse the lender for any losses that may result from borrower default. The primary advantage of this program (and it’s a big one) is that borrowers can receive 100% financing for the purchase of a home. That means no down payment whatsoever. Thank you for your service!
  • USDA: The United States Department of Agriculture (USDA) offers a loan program for rural borrowers who meet certain income requirements. The program is managed by the Rural Housing Service (RHS), which is part of the Department of Agriculture. This type of mortgage loan is offered to “rural residents who have a steady, low or modest income, and yet are unable to obtain adequate housing through conventional financing.” However, the requirements vary by county. We recommend meeting with your local lender for more information on a USDA Loan.

Sub Types

  • Fixed-rate: Fixed-Rate loans have the same interest rate for the entire repayment term. This means you can expect your mortgage rate to stay the same forever. Well, at least until your home is paid off completely. It’ll never change, making budgeting easier. Simple!
  • Adjustable-rate: These types of loans will adjust every once in a while, usually every year after an initial fixed time period. This is also known as a hybrid loan, since there is a fixed rate before switching to an adjustable rate. For example, a 5/1 ARM loan has a fixed rate for the first five years. After this, it will adjust every one year, or annually.

Conclusion

A great real estate agent and loan officer will make the process of buying a house simple. They can explain the different types of loans and help you find the right one for you. However, our experts here at CDA Real Estate Investment recommend researching loan types on your own as well. This helps guarantee that you choose the perfect loan type for you.

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Doing some Coeur D Alene Real Estate Investment?

Helpful Advice For Coeur D Alene Real Estate Investment!

Coeur D Alene Real Estate Investment Being good at real estate investing takes a lot of patience and knowledge of how the market works, but in order to do that, you need to understand a few basic tips. Thankfully, the article gives you all the basics of how to succeed in real estate. If you want to learn more, then proceed to read the article below.

Speak with a real estate expert to help you with your plan and see whether or not there are holes in your strategy. This will help you to get a good idea of where you stand and what you need to do to accomplish your goals. They may tear the plan apart and give you an alternative plan instead.

Never give up if you ever experience a setback with your plan and strategy. The real estate market is filled with many great and bad times, so make sure to stay strong if you hit a lull in your search. Persistence is the key to success when dealing with real estate.

Learn all you can about the market before investing a dime in real estate. There are many tips and strategies you must learn. Watch videos, get books from the library and search the Internet for all you can about investing in real estate to better your position.

It is possible to get contracts set up for free. However, always be wary of doing this. Those free contracts may not hold up in court. Instead, find a good lawyer and pay a bit to have the contracts done the right way for you. You will not regret it.

Always try to find out what the local values are like. Knowing what the rent and mortgage of other properties are will give you a better idea of what the value of your property is. Looking at the situation from the street level helps you make better decisions.

Coeur D Alene Real Estate Investment Consider building up a real estate rental portfolio that can continue to provide you with consistent profit for retirement purposes. While purchasing homes to sell for profit is still possible, it is less of a reality in today’s world than it has been in the past. Building up rental income by purchasing the right properties is trending vs flipping homes due to the current housing market.

As stated in the above article, it really helps to be prepared with great tips when you enter the real estate investing market. It is difficult to succeed when you don’t prepare yourself well, but now that you have good solid tips, the sky is the limit! Remember to constantly study investing tips, and keep this information close by whenever you make your next investment.

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Why I Love Coeur d’Alene

 

When you’re a wanderer at heart, you don’t expect to suddenly see yourself putting down roots. I have spent most of my life traveling and certainly didn’t expect to want to settle down anytime soon, if at all. But once I moved to Coeur d’Alene for what I thought would be a one- to two-year stay, it didn’t take long before I realized I could be perfectly content here. I relocated to this beautiful little city in 2014 from the Midwest and, quite frankly, I’ve never looked back. I’m still living in the same snug little basement apartment I obtained when I first moved here, which is much smaller than my old dwellings in the Midwest, but I don’t regret it for an instant. This town is gorgeous year-round, and I’m often able to bike to work in relative safety all the way to Sherman Ave., the heart of Downtown Coeur d’Alene, during all but the very coldest months of the year (and there are some die-hard cyclists who ride their bikes everywhere even then).

My goal is to invest in real estate here, and since I’ve experienced no shortage of job opportunities in this area and in Spokane, saving money and preparing for a big investment has proven to be much easier than I ever would have expected. I’m not there yet, as real estate in Coeur d’Alene is rather expensive, but I know it’s going to be worth it because the value of property here only continues to grow, so any investment I make will be worth it in the long run.

Coeur d’Alene is the perfect place for several types of real estate property investments, especially residential and commercial rental properties. Because I come from a long line of do-it-yourself handymen, I’m not afraid to invest in a dump and put a little sweat and blood into flipping it into a dream home, and Coeur d’Alene has no shortage of the cutest little homes near downtown that are just in need of some TLC. There’s also a lot of beautiful acreage both within and outside of the city limits, which is perfect for hobby farmers and animal enthusiasts (of which I am proudly both).

Once I find that perfect piece of real estate for all my needs, I’ll always have somewhere to come back to after a long hiking trip or a stint in Europe (I’ve done both and almost always feels the itch to do either one again). Coeur d’Alene is the perfect place to invest in rental properties because if I make the right investment, it will pay off in the long-run and I’ll be able to make my money work for me. That’s the plan, anyway. And if my experiences so far have been any indication, I have no doubt that Coeur d’Alene will deliver.

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3 Reasons to Live in Coeur d’Alene

Considering a move to Coeur d’Alene, ID? There are a lot of great reasons to put down roots in this beautiful lake town. Aside from the fact that it is indeed a beautiful lake town, anyway. Whether you vacationed here and fell in love with the area or are looking for relocation options for a change of pace, here are just a few reasons Coeur d’Alene real estate is worth its weight in gold.

 

  • The Lake. This may seem like a no-brainer, but any piece of property worth investing in grows exponentially when it’s situated on or near a lake, and there are few places within the continental US where this is truer than on Lake Coeur d’Alene. Surrounded on all sides by rolling mountains and bordered on the northernmost end by scenic downtown Coeur d’Alene, this lake has been rated one of the clearest and cleanest lakes in the US. With over 100 miles of shoreline, you can be sure there’s plenty of room for all to enjoy its beaches and water recreation.

 

  • The Town. If you want to get that rural hometown feel without sacrificing the downtown scene, Coeur d’Alene is the place for you. Here you’ll find properties that give you the luxury of a spacious home and yard with excellent parks and schools nearby. You’ll still live just a brief drive or walk from some of the best restaurants and bars in town along Coeur d’Alene’s bustling Sherman Ave., which is just a block from the lake shore. And the best part is, there’s really no bad part of town. Any real estate you consider investing in within the city limits is going to be a good investment because there are no dangerous of less desirable neighborhoods to live.

 

  • The Big City. It’s cliche, I know, but location really is the key here. If points #1 and #2 make Coeur d’Alene seem a little too quaint and peaceful, don’t panic. Do you like buildings that rise a little higher and a nightlife that boasts a little more excitement? Spokane is just an easy half-hour drive due West of the Idaho/Washington state line. Still not enough? No problem! If you’re up for a short road trip (or an even shorter flight out of the Spokane Airport), the glittering, towering city of Seattle is close enough for an easy weekend getaway. All without breaking the bank or traveling across the country. Spend your work week in the relative quiet of rural Coeur d’Alene and then party all weekend in the big city. Or vice versa! Work in the big city and spend your weekend relaxing on Coeur d’Alene’s beautiful lake shore.

There’s never been a better time to invest in real estate in Coeur d’Alene, ID. The housing market continues to grow every year, so your property investment will only gain in appreciation from the moment you invest onward. So what are you waiting for?

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The die in the lake mystery solved

There was a mysterious large die that washed up on the shore of Lake Coeur d’Alene near independence Point last weekend.  How did it get there, and where did it come from?  We know!  Read on, we will tell you!

The origin of the die

Actually, no one knows where the giant metal tank came from originally.  However, it showed  up on  the beach at Driftwood Point back in 2008.

Chris and Michelle Gridley own a sign making shop in Spokane.  They got tired of looking at the rusted hulk near Michelle’s mother’s place.  So, Chris made large vinyl circles to add to the tank to make it look  like a die.  The in-laws house became fondly referred to as  “dice beach”.

How did it land next to the resort?

It stayed at the in-laws for the next five years, until last weekend, when it drifted away.  It landed right next to the resort,  a stone’s throw away from downtown Coeur d’Alene.  You can bet there has been quite the buzz after it landed!  The Gridleys will miss the floating then stationery then floating again oddity.  After  it washed up near downtown, the “die” became surprisingly popular.    People have flocked to see it.  It still looks just like a die, and  Chris Gridley was quoted saying, “It just shows you the wear and durability of decals stuck to a rusty tank floating across the country,” He was laughing as he said it.

Where is it now?

Monday morning, city workers removed  the tank from the beach.    Not however, before many local residents had stopped by to see it and get a great selfie with it.

You can still see it off of Northwest Boulevard, at the skatepark.  Just in case you missed it before in either of it’s previous locations.

As of now, no one has claimed it, but you know how and why it became a large die!

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