How to Determine Which Home Loan is Right for You

IfFind a loan that works for your family you are thinking about buying a new home, then you probably already know that there could be myriad financing options available to you. Knowing which financing option to choose, and which type of home loan is right for you, are both important things to know. Review the following information about the different types of home loans available to individuals just like you.

Fixed Rate Mortgage
A fixed rate mortgage is one of the most common home loan structures. In a traditional fixed rate mortgage, a home loan is offered with a certain interest rate, and this interest rate is “fixed”–meaning that it does not change over the course of the loan–over time. Fixed rate mortgages can provide a sense of stability, as you always know what your monthly mortgage payment will be; it will not change.

Normal fluctuations in your escrow account may cause your monthly payment to change, but your actual mortgage will be fixed.

Adjustable Rate Mortgage
Adjustable rate mortgages (ARMs) are quite the opposite. In an adjustable rate mortgage, the interest rate can change over time. While ARM mortgages have typically been deemed risky, experts say that ARMs may have their place. As suggested by an article in The Washington Post you may consider an ARM if:

  • You plan to move before an interest rate spike will happen;
  • You expect your income to rise; or
  • You think you can invest your mortgage savings for a greater return elsewhere.

However, if you are planning to buy a home that you’ll live in for decades and you’re not sure what your income will be, you may want to consider avoiding ARMs.

VA Loan
A VA, or Veterans Administration loan, is a type of loan that is available only to veterans. VA loans are issued by private lenders, just like standard loans, but the VA guarantees a portion of the loan. These loans can help qualifying individuals purchase a home without a down payment or private mortgage insurance, secure low interest rates, and more.

USDA Rural Housing Loan
Another option for financing is a USDA (US Department of Agriculture) rural housing loan. With this type of loan, you can buy a home with zero down payment and a very low interest rate if you meet eligibility requirements, including income requirements and you are buying in what is considered to be a “rural” area. Many Hayden Homes’ neighborhoods are being built in areas that meet this standard!

FHA Loans
The Federal Housing Administration (FHA) is the largest insurer of residential mortgages in the world, and if you get an FHA loan, this means that you are getting a loan that is considered a “mortgage insurance backed mortgage loan.” Essentially, when you have an FHA loan, you are paying for mortgage insurance, which protects your lender in the event that you default on the loan. Because of this protection, FHA loans are often offered at lower interest rates, and eligibility requirements may be less strict, too. Less than perfect credit and a lower down payment (minimum is 3.5 percent) are OK, and some of your closing costs may even be covered.

FHA 203k Rehab Loan
Remember, an FHA loan is a type of loan that carries mortgage insurance and is from an FHA-approved lender. An FHA 203k rehab loan is different than a traditional FHA mortgage loan in that the former allows you to take out a loan with the purpose of buying a home and improving upon it. This means that if you are buying a home that is less than perfect and is in need of repairs, you can use your FHA 203k rehab loan to finance repairs to make the home livable.

Loans for People with Less than Optimal Credit
If you have poor credit, you may be under the impression that getting a home loan isn’t in your immediate future, and therefore you need to put the idea of buying a home on the back burner for awhile. However, there are still loans available for people with less than optimal credit, including many of the loan types mentioned above, such as the FHA loans, VA loans, and USDA rural housing loans. Some private lenders may also offer loans to those with less than optimal credit, although keep in mind that the interest rates on these loans may be higher than is reasonable.

See Our Homes for Sale Today in the Pacific Northwest
At Hayden Homes, we have a number of properties that may qualify for USDA rural housing loans (view full list here), and we also work with home financiers who can be helpful in answering questions and streamlining the home loan process to obtain your first home. To learn more, come see one of our brand new Hayden Homes today in Oregon, Washington, or Idaho!

It’s Puppy Season – How Do You Protect Your Biggest Financial Investment from Your Biggest Emotional Investment?

Puppy Proof Your New HomesThere is only one thing that can make your new home that much better: a new puppy! What’s not to love about floppy puppy ears, soft bellies, and of course – puppy breath?

Whether you’re heading out to get a new pup this weekend, or are the proud new parent of a little rascal, one thing is for sure: you need to know how to puppy proof your new home so that your biggest emotional investment does not wreak havoc on your biggest financial investment. Here are some tips to keep your home safe.

Crate Training

Using a crate is one of the best things that you can do to protect your new home. Crate training is an appropriate and effective way of confining your dog to one area of the house, and is key in potty training, and getting them accustomed to spending time in their own space without you. This is a great training method, especially when you are running an errand or when it is time for bed. Using a crate helps prevent your puppy from wandering off and getting into things, chewing things, or having accidents in the house when you least expect.

Puppy Proof by Removing Obvious Puppy AttractionsPuppy Proof Your New Homes

Be sure to barricade areas hallways, stairways or the dining room that you don’t want a puppy to have free access to by using baby gates. Also, remove items you don’t want chewed up, like your expensive pair of shoes. You should also make sure that trash is kept in a closed container or under the sink, and that power cords and other enticing objects are removed from within puppy’s reach. Make sure that any dangerous and toxic items are locked up and inaccessible. Giving your puppy too much freedom too early will enable bad habits to form (such as urinating in bedrooms and closets).

Take Your Puppy Outside A LOT

If you want your puppy to be worn out and avoid having accidents on your brand new sofa or carpet, you need to take your pup outside frequently. When your puppy is still being house trained, take them out once an hour if you can. When they go to relieve themselves outside, reward them with affection and a treat. Take your dog out even if you do not think they need to go, and plan on waking up in the middle of the night once or twice to let the puppy outside; puppies cannot hold their bladders through the night.

Purchase ToysPuppy Proof Your New Homes

As puppies lose their puppy teeth and grow in their adult teeth, chew toys are a must! To keep your puppy from chewing up everything in sight, make sure you purchase plenty of puppy-friendly toys to keep it entertained. In addition to dog puzzles, balls, and stuffed animals, invest in some durable, flavored chew toys.

Keep Your New Home Looking New

Setting up a routine that involves proper training and some playtime is a great way to get your dog accustomed to its new home. Just remember to crate train, go outside often, buy puppy toys, and keep the puppy out of rooms of the house you want to protect. It is never too early to start training, so consider enrolling your newest family member in a puppy training course near you. You’ll be glad you did.

Are you interested in buying a new home in Oregon, Idaho, or Washington that would be perfect for a puppy? Don’t hesitate to reach out to us today. Hayden Homes offers homes that dog owners will love, and our homes are in some of the most pet-friendly communities out there! Contact us for more information.

Why Buy New? The Advantages of Buying a New Home

Benefits-of-Buying-a-New-HomeWhether you are currently renting and you are ready to become a first-time homebuyer, or you own your home but are looking for something nicer or in a different location, you are faced with a choice: buy a brand new home, or buy a used home. While both have their advantages, buying a new home has some major advantages for the following reasons.

Energy Efficiency

If you have ever upgraded an old appliance to a newer energy efficient model, a furnace for example, then you have surely seen the money savings. What a great feeling it is to save money and promote sustainable energy, which is why buying a new home rather than a drafty older one is one of the top reasons Hayden Homes’ customers decide to buy new! Our new homes are equipped with energy saving windows systems and appliances. Which in turn, can add a little extra cash, in saved energy expenditures, to your wallet over time.

Personalization Personalizing-Your-New-Home-why-buy-new

If you are buying a new home, then you have the opportunity to make personalized decisions about YOUR home – colors, finishes and fixtures. Of course, it also means that you get to choose your floor plan, number of rooms and more. This can be great if you have always dreamed of a huge walk in closet, a home office, a spare bedroom, a home gym, or something else that personalizes your home. We invite you to explore our exciting home plan gallery, and please contact us with any questions you may have regarding personalizing your home.

Reduced Maintenance

Older homes need a lot of TLC when it comes to maintenance musts, ranging from fixing that leaking roof, to repairing the water heater, to replacing the carpet. The list goes on and on and on. If you simply want to enjoy your home without having to worry about constant repairs and maintenance, then buy new. Don’t let your used home take up your valuable time. The choice is yours. You can spend your evening hours and weekends doing things like painting and caulking, or you can spend that time where it matters – enjoying your hobbies, playing with your kids, or hosting friends and family.

Safety (Especially If You Have Kids)Energy-efficient-appliances-why-buy-a-new-home

You want your home to be as safe as possible, especially if you have little ones – or plan to have little ones – running around. Unfortunately, used homes aren’t always as safe as they should be. Dangers ranging from defective electrical wiring or outlets, lead paint and asbestos, to garage doors without automatic reversal systems…these can create unnecessary risks. With a new home, you can rest assured in knowing that each part of your home meets the current safety standards.

Warranty

Not only do you get that prized new home feel, but when you buy a new home, the materials and products in your home will be under warranty. This gives you peace of mind that if anything breaks down or stops working, you’ll get it fixed or repaired free of charge. Also, if you haven’t heard about Hayden Homes’ one-year builder warranty, you can enjoy your new home knowing that we’ll be here long after you get the keys to your beautiful new home.

Find Your Dream Home Today

If you are ready to start looking at new homes in the best communities the Northwest has to offer, Hayden Homes is here to help. Get in touch with us today to browse our selection of new homes, schedule a showing, or learn about financing options for those with approved credit.

About Hayden Homes
For nearly 30 years, since it was established in Redmond, Oregon in 1989, Hayden Homes has built more than 12,000 new homes in over 300 new home communities, across more than 50 cities, spanning Oregon, Washington and Idaho. Hayden Homes continues to be the largest privately held new homebuilder in the Pacific Northwest.

Hallmarked by a commitment to build high-quality, value-driven new homes throughout Oregon, Washington and Idaho. Hayden Homes supports local communities by employing local contractors and vendors and contributing annually to philanthropic efforts in the communities in which they build. Since 1989, Hayden Homes has contributed more than $9 million to charitable donations with the flagship of their giving through the 501C3 Non-Profit, First Story. The Hayden Homes brand family of companies include – Simplicity by Hayden Homes, Wise Size Homes and Hayden Homes. All providing an unparalleled selection of opportunities for those looking to purchase in a new home community in Boise, new home in Nampa, new home in Caldwell, new homes in Meridian, new homes in Kuna, or new homes in Star, Idaho.

Understanding Financing and Costs of a New Home

Buying a new home is an exciting process. In addition to all of the planning and thrill that accompanies being a first-time homebuyer, something to consider is the cost. Buying a new home, as you probably already know, can be a little intimidating. That’s why we here at Hayden Homes make it a priority to help you navigate the waters before plunging in. It is important to understand how much buying a new home really costs you, by taking into account the different expenses that factor into the process. Let’s dive in.

Financing and Your Interest Rate

When you look at the face value cost of a home – i.e. $250,000 – you’re not just paying $250,000 if you are relying on financing from a third party. That’s because when you get a home loan, you are charged interest on the money that you borrow, and your interest rate will have an impact on how much you end up paying over the course of your mortgage. And of course, you can pay off your home faster by paying a little bit extra on your loan each month. Many people do, and the savings are substantial over time!

The interest rate you get on your home loan will vary depending on the market, the lender you work with, and upon your circumstances. Here at Hayden Homes, we have a lot of good advice for people who are trying to position themselves to qualify for the best possible interest rate on a home, so please don’t hesitate to reach out (link to contact us page) and we’ll be glad to steer you in the right direction. Things like paying off your debts, establishing credit history and saving money for a down payment can really help.

Other Things that Influence How Much Your Home Really Costs

Another cost that you should take into account is the cost of property tax. Property tax depends upon the state you live in, and may also be influenced by other factors, such as the size/value of your home and location. So before you purchase or build, inquire about the property taxes so it’s something you can plan for.

When you own a home, you will also need to have homeowner’s insurance and pay for routine maintenance of your home. That can be costly if you buy an older home in need of updating. However, if your home is newer, you will most likely have significantly lower maintenance costs, which is one of the benefits of buying a new home!

Hayden Homes is Here to Help

At Hayden Homes, we know that the most challenging part of buying a home can be seeking out and acquiring a mortgage. That is why we are here to help.  Together, we can help you understand the costs of homeownership especially when it comes to financing options.

Explore our website to learn more and be sure to check out our mortgage calculator to play with some numbers. Get in touch with us today! No matter your history, no matter your timeline, we help people from a variety of financial backgrounds find the homes of their dreams!

Terms Every Homebuyer Should Know

ITerms every homebuyer should knowt may be the ideal time to purchase a brand new home and Hayden Homes offers new homes in Oregon, Washington, and Idaho.  But before you get started down this important path to home ownership, it’s important that you understand the lingo.  By familiarizing yourself with terms associated with the homebuying process, you’ll have a better understanding of the process and what to expect and won’t be caught off guard as you navigate the process.

Getting Pre-Approved

The most challenging part of buying a home can be seeking out and acquiring a mortgage. One of the first things to do in this process is lender pre-approval.  You can do this with a lender of your choice. When working with a mortgage lender during this initial process, you will find out how much home you can afford to buy prior to ever starting the physical search. This process contains no obligation to the lender or you as the home buyer. Completing this desired first step helps ensure that you are qualified to purchase your new home and will say to your Realtor or home builder that you are serious about moving forward, allowing them to best help you find the home of your dreams.

Appraisal

An appraisal is the process by which the value of the home is determined. This process is done by a qualified and certified appraiser. The process is important for you to know the value of your home but also required by the lender to verify the purchase price is equal to or less than the property value.

Earnest Money

At the time that you make an offer on a home and the seller accepts that offer, you will be asked to put down earnest money. Earnest money is different than a down payment, although the earnest money will be used towards your final closing/down payment costs. Earnest money is a check that’s given to show your good faith effort in securing a loan and commitment to purchasing the home. The amount of earnest money required will vary from builder to builder but at Hayden Homes, we typically require x amount for our new homes purchased in Washington, Idaho, and Oregon.

Down Payment

A down payment is the amount of cash that is applied towards the purchase of your new home at the time of closing.  When purchasing a new home, a cash down payment is typically required.  However, down payment amounts vary depending on the type of loan being secured.  It’s important that you discuss your individual needs with a qualified new home lender like Washington Trust.

Escrow

Escrow may be the most confusing of all of the homebuying terms, but it’s one of the most important to know. Essentially, escrow is the process by which a third party holds money that will later be transferred to a separate party at the conclusion of a transaction. Remember the purpose of earnest money discussed above? Earnest money doesn’t go directly into the hands of the seller; instead, it is held “in escrow” until you and the seller finalize the sale.

Closing

Finally, closing – the day that every new homebuyer waits for! During closing, all documents and contracts related to your purchase will be reviewed, funds will be exchanged, and the title and deed of your new home will be signed over to you. Congratulations – you’re a new homeowner!

About Hayden Homes
Established in Redmond, Oregon in 1989, Hayden Homes has provided over 17,000 new homes, in over 300 communities, to price conscious, value-driven homebuyers in underserved, secondary markets throughout Washington, Oregon and Idaho. Hayden Homes continues to be the largest privately-owned new home builder in the Pacific Northwest.

With a commitment to building a strong community together, Hayden Homes has contributed 3.2 billion dollars to local economies and has created more than 62,000 jobs since the company’s inception. Hayden Homes supports philanthropic efforts in the communities in which they build and have contributed more than 18.3 million dollars in charitable donations with the flagship of their giving through the 501(c)(3) Non-Profit, First Story. To date, First Story has provided 82 deserving and capable families throughout the Pacific Northwest with a safe, healthy affordable home and a first step toward financial freedom. The Hayden Homes brand family of companies includes Simplicity by Hayden Homes, Wise Size Homes and Hayden Homes, all providing an unparalleled selection of opportunities for those looking to purchase a new home