Where not to Buy Your Home
April 24, 2024
Finding or building your dream home means paying attention to many important details. Is the house you want large enough to live in for 5 to 10 years without outgrowing it?
Is your house close enough to essential services like child care or school? What’s the area's future in terms of major developments, construction projects, or town planning?
Important Factors to Consider
There are concerns some borrowers should have before committing to a house. Consider the example of Springfield, Illinois, where a high-speed rail project had entire city blocks affected by the construction or modification of the rail system.
Property values along certain sections of this project began to change and borrowers who don’t know the situation might be excited about the prospect of buying a cheaper house or a cheaper plot of land to build one on.
But when the high-speed rail project is completed, these borrowers may find themselves too close to the train tracks for comfort, at least where the noise and related factors are concerned. Knowing that this is an issue before you commit might change your mind about a specific property.
Location, Location, Location
FHA loan rules are designed to prevent some issues from affecting an FHA loan applicant. For example, a home cannot be approved for most government-backed mortgages if it is too close to a Coastal Barrier Region, mining operation, or high-pressure gas pipelines.
Natural Disaster Areas
Reading the above, some might assume that the rules about Coastal Barrier Regions mean that you can’t get a home loan approved in known natural disaster zones prone to wildfires, mudslides, flooding, or other problems.
But this is not true. While some lenders may not be willing to offer home loans in local areas known for extremes in weather, in general, if the borrower is willing to get the appropriate disaster insurance, there may not be an issue buying a home in certain parts of California, Texas, North Dakota, Mississippi, and elsewhere.
The key is the insurance. Remember that homeowner insurance is a different product and has no relation to mortgage insurance. While your lender is protected with mortgage insurance, you are protected with homeowner insurance.
Title Issues
A title search is a typical part of the home loan process, whether you want to buy existing construction or a plot of land on which to build a home. Before you commit to purchasing, you want to know that the property is free and clear of liens or other legal claims.
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RELATED VIDEOS:
Annual Income Requirements for FHA Loans
Good Credit History Helps Get FHA Loans
Stay Informed About Your Mortgage Closing Costs
Is your house close enough to essential services like child care or school? What’s the area's future in terms of major developments, construction projects, or town planning?
Important Factors to Consider
There are concerns some borrowers should have before committing to a house. Consider the example of Springfield, Illinois, where a high-speed rail project had entire city blocks affected by the construction or modification of the rail system.
Property values along certain sections of this project began to change and borrowers who don’t know the situation might be excited about the prospect of buying a cheaper house or a cheaper plot of land to build one on.
But when the high-speed rail project is completed, these borrowers may find themselves too close to the train tracks for comfort, at least where the noise and related factors are concerned. Knowing that this is an issue before you commit might change your mind about a specific property.
Location, Location, Location
FHA loan rules are designed to prevent some issues from affecting an FHA loan applicant. For example, a home cannot be approved for most government-backed mortgages if it is too close to a Coastal Barrier Region, mining operation, or high-pressure gas pipelines.
Natural Disaster Areas
Reading the above, some might assume that the rules about Coastal Barrier Regions mean that you can’t get a home loan approved in known natural disaster zones prone to wildfires, mudslides, flooding, or other problems.
But this is not true. While some lenders may not be willing to offer home loans in local areas known for extremes in weather, in general, if the borrower is willing to get the appropriate disaster insurance, there may not be an issue buying a home in certain parts of California, Texas, North Dakota, Mississippi, and elsewhere.
The key is the insurance. Remember that homeowner insurance is a different product and has no relation to mortgage insurance. While your lender is protected with mortgage insurance, you are protected with homeowner insurance.
Title Issues
A title search is a typical part of the home loan process, whether you want to buy existing construction or a plot of land on which to build a home. Before you commit to purchasing, you want to know that the property is free and clear of liens or other legal claims.
------------------------------
RELATED VIDEOS:
Annual Income Requirements for FHA Loans
Good Credit History Helps Get FHA Loans
Stay Informed About Your Mortgage Closing Costs
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