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.

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.

Government Shutdown- Trouble Brewing For Those Anticipating a Tax Return

According to IRS (the nation’s tax collector), the tax season will begin by the end of this month and they will start sending people their tax refunds, irrespective of the government shutdown. Although the news comes like a relief for all those who are anticipating a tax return, trouble can still be seen brewing in the background.

How Will the Federal Shutdown Affect Taxpayers and Why?

The government shutdown was expected to end by the mid of January. But, since President Trump and the Democrats have not yet arrived at a point of agreement, the shutdown can be seen continuing for another couple of weeks. Although the IRS declared that it will start sending taxpayers their refunds as the tax season begins, it may not be a possibility because the government is facing an obvious shortage of funds. A majority of federal employees have temporarily been rendered unemployed due to the government shutdown and problems will only rise from here.

As a result of the federal shutdown, a lot is currently standing between you and your tax refund. Here are some of the issues that might keep you from getting your tax return in the coming months:

Uncertainty Regarding Rules

Accountants need proper guidelines and regulations to determine how the tax refunds of majority filers will get affected. For example, small business owners are looking forward to a 20-percent qualified business income deduction. Normally, the pass-through entities such as sole proprietorships and S-corps qualify for this tax break. So, the accountants need to be well-versed with the regulations before they go on to guide filers through the 2018 returns. The federal government shutdown has slowed down the process significantly.

Workforce either Furloughed or Made To Work without Pay

As a result of the government shutdown, the IRS rolled out its contingency plan, according to which, at least 12.5 percent (or somewhere around 10,000) of the federal workforce will be enforced to work without pay. Whereas, the remaining will be rendered furloughed for the time being. The tax season, however, is expected to bring the workforce on the floor. Though the workforce will work without pay, for now, they will be paid once the government reopens.

The IRS gets approximately 95 million calls each year. Among those furloughed are the personnel responsible for taking care of the queries of the filers. This directly implies that the common man will face a very hard time if they want to get their queries resolved.

Staff Processing Amended Returns Furloughed

Among the large number of staff that was furloughed, was the workforce responsible for processing the amended tax returns, which are done more manually compared to the other returns. This also implies that the tax filers having amended returns will have to wait a while longer to receive their tax refund this year.

A Final Word

The longest government shutdown in years has started to create a huge set of problems for the tax filers all over America. Also, it is not just the tax filers who are affected. The shutdown has impacted everyone, in one way or the other. From travelers to farmers to the ordinary Americans, the impact can be seen affecting one and all. In conclusion, there is just one thing to say: the longer the shutdown continues the greater and worse will be the impact.