Great Home Additions on a Budget: Recycled Pallets

Wanting to add an accent wall to the bathroom? Or maybe you want some decorative pieces of furniture that blend well with your historic home? It is time to discover the joy of recycled pallets! These are easy to obtain: you can check with local warehouses, supply stores or craigslist/classified ads. Most of the time they are FREE.

This can also be a great way to gather the wood needed for a remodel project. As you can see, we have some pallets still in tact, and my husband broke down several into usable planks.

There are many projects and inspirations you can find online using pallets, and it is as easy as typing "projects using pallets" into your search engine.

Here are some direct links for project inspiration:
http://www.1001pallets.com/
http://thepalletproject.blogspot.ca/
http://www.remodelaholic.com/2013/03/diy-pallet-wood-wall-bathroom/

With a little bit of time invested, the possibilities are endless for home improvement while your cost is little to nothing!

We have made items such as benches, tables, accent furniture, storage chests, and decorative signs. We are currently making plans to use pallets for a bathroom revamp, a deck and possibly flooring over some outdated vinyl flooring.

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FHA, USDA: What is the difference?

Probably one of the most confusing parts about buying a home is the financial route you take. Many find themselves wondering:

Will I need a lot of money for a down payment?

If I qualify, what are my options?

What do all these loans and terms mean?

A conventional bank loan is a standard loan issued by a bank, that usually requires a down payment. However, the most common loans used buy home buyers (especially non-investors or first-timers) include the FHA and USDA programs. In fact, when my husband purchased our home a few years ago, the transaction was completed using USDA financing.

Usually, if you are able to qualify for an USDA home loan, you are also able to qualify for an FHA loan- and vice versa. Let's take a look at the details of each, to help you understand the difference and decide what may be your best route...


USDA (Rural Development Guaranteed Loan Program):

Run by the United State Department of Agriculture, this loan program's main purpose is to help buyers with a lower income achieve their dream of owning property. Although it targets consumers with low income, you still must be able to prove that you can pay a certain amount in a mortgage (monthly house payment) and have reliable credit. It does not require a down payment, and allows you to pursue a modest but stable home to own.

USDA loans are pretty strict, but I personally feel this is helpful for first-time buyers. Homes purchased with USDA financing must be resided in upon purchase (you cannot use this loan to purchase an additional/rental/income producing property), must be located in a small town or rural area, cannot have an income producing building on site (such as a barn that will be used for raising/selling livestock), must pass inspection and requires mortgage insurance for the beginning period of the loan.

For a full list of rules, click here: http://www.rurdev.usda.gov/supportdocuments/3550-1chapter05.pdf

As I mentioned, I feel that a USDA loan is for the most part hassle-free and a great option for a first-time buyer. It helps to protect you from unforseen troubles when jumping into the home ownership pool.

For more information on USDA loans, rates, and qulaifications click here:
http://www.usda.gov/wps/portal/usda/usdahome?navid=HOUSING_ASSISTA&navtype=RT&parentnav=RURAL_DEVELOPMENT


FHA (Federal Housing Administration Home Loan Program): 

Run by the United States Department of Urban Housing and Development, an FHA loan has a bit more flexibility than a USDA loan in terms of property, location and buildings on site. However, this loan requires a minimum down payment of about 3.5%. Those with credit scores between 500 and 579 must make down payments of at least 10 percent. This still is a lot more affordable than the down payment for a conventional loan, which has an average of about 20% for a down payment. 

This loan is also helpful for those with a lower income, but also can be an option for those with lower credit scores in comparison to USDA. As I mentioned, though, this route does require a down payment which can increase with a lower credit score. These are also a pretty secure route to take in purchasing a home as they require an appraisal, inspection, and mortgage insurance as well. 

For a helpful list of guidelines for properties purchased with FHA loans, click here: 
http://www.investopedia.com/articles/mortgages-real-estate/11/fha-minimum-property-standards.asp

This loan is also linked with HUD HOMES, which are forclosed/auction homes that are available at a great price, and are able to be purchased with FHA financing. In fact, those with FHA financing have priority over other types of financing during the bidding process.

For information on HUD HOMES, click here:
http://www.hudhomestore.com/Home/Index.aspx

*FHA news update, interesting article about how the government is cutting FHA loan costs:
http://www.bloomberg.com/news/2015-01-08/obama-cutting-fha-cost-boosts-first-time-buyers-builders.html

The main thing to do after gaining this knowledge is to talk to a lender in your area that others recommend. Now that you have a basis of different options, you can have the upper hand in the home buying process. I hope today's post was helpful for you, and I am always happy to answer further questions. Contact me by email: kimberlylinson@johnlscott.com