Commercial Real Estate Loan

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Optimize Your Profits in Jacksonville’s Challenging Rental Property Market 

 

Living in Jacksonville is affordable because this is one of the biggest cities In the United States. Most people living here come from the middle class and live a better lifestyle. There are several cities in the US and the costs of living in these cities differ from one to the other. In Jacksonville you will have to pay high costs for you to stay comfortable and enjoy the resources here. The market here is tough especially when it comes to rental property market. It’s only the independent landlords who have class A properties that enjoy but those with class B and C properties have to hassle in order to get the best the market that fits their properties. Currently Jacksonville is said to have the highest vacancy rate in the nation of around 8.5%. Most landlords here have several challenges some of which go beyond the local economy because of the competitive rental prices offered here.

How is Jacksonville’s rental property market challenging?

The rate at which the population of Jacksonville is growing is very high and this is what has made the rental property market to have a problem. The prices of renting and buying houses here are very high despite the fact that we have several potential buyers. According to data from the Huffington Post and the Census Bureau, housing in Jacksonville has become more affordable in some parts such as Florida and its larger metropolitan area. The cost of living here is said to be around nine points below that of the entire United States. The price of a median house in Jacksonville ranges at around $111, 900 and this lower when compared to that of the real estate national average at about $50, 000.

The average cost of renting a house in Jacksonville for a month averages at around $791 and this is considered affordable. With the exclusion of the cities in Alaska, Jacksonville is known to have around 747 square miles making it to be among the largest cities. It has more than 821, 000 inhabitants and this has made it to be ranked number 12 in the most populated cities. Texas transportation Institute in 2010 ranked Jacksonville number 40 out of 60 in terms of ease of commuting. Florida investing has increased in the recent years and most people now invest in this city.

Riverside is one of the walkable neighborhoods around Jacksonville. It has brick houses which serve as an amalgam of architecture styles and they were built in the early 1990s. Despite the fact that Jacksonville is roughly ranked, It has a good economic forecast as compared to other cities around. What do you know about the employment rate in Jacksonville? The employment rate in this region has greatly improved by around 1.6 % and this made the local economy to improve. Most landlords especially those with class A and class B offerings have ensured that they remain competitive in the market by keeping up with maintenance and renovations costs. Consider investing Jacksonville, FL since here you can be able to optimize your profits.

Can you buy a house with no money to put down still?

Are you desperate to join the property ladder but just don’t have any money in the bank to put down? Maybe there is another way to get on the ladder without having a huge amount of money in the bank.

A Guarantor

There are some mortgages for first time buyers that allow them to use someone they know, usually a family member to act as a guarantor on behalf of you. The method in this is that the guarantor will guarantee that the mortgage payment will definitely be made on time. This option may mean that the guarantor may end up making the payments themselves if the buyer finds themselves in financial difficulty.

The guarantor will usually have to hold collateral themselves in the form of property to be a viable option for banks. Because of the fact that the guarantor offers extra security for the lender this option may come with a lower deposit required to secure a mortgage.

While this is a good option to take, finding somebody that trusts you enough to guarantee your monthly payments may take some doing.

There is more information on being a guarantor.

FHA Mortgage

The FHA (The Federal Housing Administration) is one of the first places most new homebuyers go when they are after a mortgage with only a low down payment to offer. The FHA offer low down payments along with attractive mortgage rates.

buy house

There is of course a downside to this type of mortgage and that is the fees. There is a one-time fee of 1.75% of the amount borrowed this is an insurance mortgage premium. There are also annual insurance premiums of 1.20% to 1.25% on 30 year mortgages; however these can be paid on a monthly basis which will be easier than finding the money to put down all at once.

The interest rates on FHA mortgages are also typically lower than conventional mortgages, which means the difference between an FHA mortgage and conventional mortgage costs are fairly similar.

 

80/20 Loan

Another option that is popular is the 80/20 loan (also known as the piggybank loan). This type of loan would have you borrow 80% then 20% which then gives you 100% of the home price. The first loan is for 80% of the purchase price and the second loan is for 20% of the purchase price.

What happens in the scenario of a borrower not having any money at all for a down payment is they will take out another loan of 20% of the home’s value as an equity loan thus not needing a down payment on either the 80% loan or the 20% loan.

Opportunities for mortgages with no down payment are becoming more and more rare these days. There are still ways for sensible homebuyers to find their way into the market, but a lot of careful planning and money management needs to go into it as high interest rates can end up catching people out in the long term.