FHA and USDA Home Loans Houston – What is the difference between them?

While you think of buying a house in the USA, it is essential to know about these loans. One of the common loan options to the borrowers is USDA. However, FHA loan is also popular to the homebuyers. You may try to make out how these two loans are different from each other. You will be able to apply for the better one for your needs.

The loan scheme under US Department of Agriculture is for the low-income Americans and for the Americans in the rural sector. The terms for USDA Home Loans Houston can range between thirty and thirty-eight years. While you apply for the guaranteed USDA loan, you have a chance of enjoying 100% financing. In this loan program, the standards for credit and income-related qualifications are different. However, when you have moderate amount of income, you have a chance getting approval for the loan. The house, purchased with this loan, has to be very modest in cost, design and size.

Citizenship-

USDA- To apply for USDA loan, you have to be a permanent alien or American citizen.

FHA- You must be a legal American resident, and you should have SS number.

Credit score-

USDA- As one of the USDA loan applicants, your credit score must be minimum 640.

FHA- Most of the lenders have set 620 as the minimum score. However, they always make sure that you have a clean and positive credit record in the past twelve months.

Down payment-

USDA- Lots of homebuyers look for Zero Down Home Loans, and for them, USDA loan is the right choice.

FHA- In most case, the down payment for this loan is 3.50%. This down payment is much lower than what we have found in other types of home loans.

Geographic restrictions-

USDA- For this loan, you have to make sure that your chosen house is in the USDA-entitled rural regions. In some American states, these regions are adjacent to the metropolitan sites. There are also various income limits for different geographic regions.

FHA- To get this loan, there is no restriction-related to the geographic sites. However, the loan limits may vary in different regions in the USA.

Which is the better loan for you?

Lots of homebuyers do not have the capacity of making 20% percent down payment. For them, both the loans are the best options. However, USDA loan applicants have to ensure the location of the house in the rural regions. Another good aspect of both the loans is that there is no strict requirement for higher credit scores. One demerit of FHA loan is that the mortgage insurance and interest rates are higher. For the USDA loans, the interest rate is not much high, and it is one of the advantages of the property buyers.

Father’s Day Big Gesture: How to Pick the Right Car for Your Pop?

Every parent plays a fundamental role in shaping the life of their children. The countless sacrifices and love that is received from a parent is second to none. Fathers are often the first ones who teach their children how to drive a car. Purchasing your first car for college would not have been possible without your father, guiding you through all the fine details. Therefore, this Father’s Day, gifting your old man a sweet ride would be a small gesture that he would cherish for all the years ahead.

Factor In: Important Elements when Purchasing a Car for Your Dad

When it comes to fathers and their comfort, you should think about the following points before you make a decision.

1. Narrowing down the Right Car Model

You know your dad the best. If his main need is comfort, then gift him a car such as the 2019 Honda Fit that has easy to use technology, good value for money and an efficient engine. Alternatively, if your father is interested in adventures and road trips, then the right car for him would be the legendary Toyota Land Cruiser that can sustain rocky terrains. Therefore, narrowing down the right car for your father will require you to research extensively on the type of cars that he likes and needs. Make sure you purchase a car that encompasses all your requirements and budget.

2. Financing the Car

The way to finance a car for your father is to either to apply for the auto loan in your name or to co-sign it with your father. As it is a gift, ideally the auto loan should be in your own name. Consider the options for auto financing in terms of the length of the auto loan, the debt to income ratio, your credit score and your current credit standing. The best strategy would be to choose the right car, compare different auto loan quotes and find the best quote. If you are confused, starting with a heavy down payment will help you reduce the burden of the auto loan.

3. Registration & Title Formalities

The first thought to cross your mind would be to put the name of your father for the title of the car. In some states, the name of your father on the title may not be legally possible. You cannot purchase a car in someone else’s name and if you wish to have a shared title, the other person is required to sign the paperwork, which would ruin the surprise. For instance, New York DMV requires a bill of sale from the buyer that indicates that the purchase price is $0 as it is a gift. Thus, make sure you figure out the laws of gifting a vehicle in your state with regards to title transfer and registration.

A Gift of a Lifetime

A car is a big investment and you should prepare yourself with all the details before you make the purchase for your father. Once you sort out the nitty gritty of purchasing the car for your old man, decorate it yourself as a gesture on Father’s Day and it will be a gift that he will never forget.

Retirement Planning Ready In Five Steps

However, a TRP can still be a smart strategy when you’re working full-time and want to boost your retirement income

Some super funds have a minimum account balance, so it’s important to check if yours has a limit before you start a TRP.

A TRP isn’t always the most effective strategy. If you have investments outside super, you may actually be better off keeping your super as it is and using your other assets to supplement your income. In your retirement financial planning our advisor can help you choose the best option for your situation.

Set a target. Think about when you plan to retire, how long you’re likely to spend in retirement and your ideal retirement lifestyle. Then decide on the income you’ll need to make it all possible.

Crunch the numbers. Check your super savings to see if you’re on track.

Boost your savings. If you need to save more, consider boosting your super with pre-tax salary sacrifice contributions or after-tax personal contributions. A financial planner can help you decide on the best approach for your situation.

Consider going part time. 41% of Australian workers over 45 plan to work parttime before they retire1, helping to ease the transition from full-time worker to full-time pleasure seeker. And depending on your situation, you can work parttime and continue to build your super, while supplementing your income with a Transition to Retirement (TTR) Pension, which is generally a lower-taxed income stream.

Change your asset mix. As you approach retirement, you’re likely to want to shift your investments from higher risk growth assets to more conservative income-generating assets. But with many Australians now looking forward to an investment time frame in retirement of 20 years or more, it may not make sense to abandon growth assets altogether.

Transition to retirement

A gradual move to retirement

Many people continue to work past age 55 due to different reason. Some need the money. Some wants to enjoy social interaction and the mental stimulation that a job offers. Some will reduce their working hours according to way to slowly ease into retirement.

The Australian Government has made it possible for you to continue your working while drawing down some of your super benefits. The policy known as transition to retirement, allows you to supplement your salary and maintain a comfortable lifestyle. You can also use this policy for tax saving purpose and boost your super before when you retire.