Apply Now
Schedule a time with a Loan Officer

Mortgage Broker Dallas TX | Home Loans | New Frontier Financial Inc.

New Frontier Financial is your advocate and guide through the entire mortgage process. For more than 20 years, we have helped people with home loans in Dallas and across Texas.

Call Us Today! (469) 886-8300

6 Pros and Cons of Real Estate Investing for Beginners

by

Buy a Home in Dallas

The reality for many hard-working Americans is that living from paycheck to paycheck won’t build your long-term wealth, leaving you with only enough income to cover the essentials. But for people who are looking to widen their assets and increase their savings over time, investing in real estate is one of the best avenues for beginners.

The stock market is typically the go-to place for seasoned investors, but the volatile space and higher risks don’t make it friendly for aspiring investors. Alternatively, buying real estate offers better diversification opportunities, higher returns, and lower risks for beginners.

Keep in mind that one market isn’t necessarily better than the other since the right choice depends on your goals, risk tolerance, and financial situation. This begs the question: is real estate investing the right move for you?

Exploring the Pros and Cons of Real Estate Investing

What are the Pros?

  • There are always people buying and selling in the housing market, which means the demand gives the sphere stability compared to the stock market’s fickle nature. While you can’t expect to earn as much as you can reap in stocks, buying real estate guarantees a steady source of income on the side.

  • As mentioned above, real estate investing is an excellent choice for increasing your sidelines. With a promise of providing a steady cash flow, you can earn enough capital to invest in more rental properties to skyrocket your revenue stream. Not to mention, properties often increase in value over time.

  • Dealing with taxes can be frustrating for anyone, but the good news for real investors is that you have plenty of tax breaks you can utilize to ease your financial responsibilities from your mortgage interest, property taxes, depreciation, and more.

What are the Cons?

  • Compared to investing in stocks, the potential returns for real estate investing aren’t as lucrative. If you need to see the difference in a fuller context, think about how the S&P 500 gained over 600 percent while the housing market only increased by 160 percent.

  • You have to deal with plenty of cash in hand when buying real estate and set aside a dedicated budget for building maintenance, improvements, inspections, and more.

  • Compared to liquid investments like stocks, you can’t turn a property into cash as fast as you would when selling stocks.

The Bottom Line: Choosing Whether Real Estate Investing is the Right Move For You

There’s no right or wrong when it comes to choosing where to invest your money, but the best choice should meet your unique goals, financial circumstances, and risk tolerance. Nonetheless, the long-term revenue stream, tax benefits, and full control you have with your investments make the housing market ideal for beginners.

Are You Looking for a Reliable Mortgage Company in Dallas, TX to Support Your Real Estate Investments?

Getting the ball rolling for your real estate investment portfolio is not an easy task, especially for beginners who don’t have the financial stability to cover your new venture. Fortunately, New Frontier Financial is here to help make it all happen.

Our mortgage lenders are committed to helping you achieve your goals; that’s why we offer competitive loan options for borrowers with unique needs.

We can also guide you through different mortgage processes — from buying a home, refinancing, and investing in real estate — so call us at (469) 886-8300 to schedule a consultation today!

Exploring Mortgage Loans with No or Low Down Payment Options

by

When getting a home, something buyers always have to think about is the mortgage loan that they take out. There are many moves that you can make on the market, but they can often be limited by your budget and circumstances. It doesn’t help that there are plenty of downpayment options that are way too demanding.

Homebuyers don’t have to settle for those alternatives, though. There are mortgage loans that don’t require any down payment at all, while others only charge a low percentage. Let’s explore those possibilities.

Assessing Down Payment Options

When you’re looking for just about any loan, a majority of the lenders will state that you need to put in at least 20% to 25% of the down payment. This is also what’s been encouraged in the past to make the sale price more manageable in the future. However, there are many things that can prevent this, such as current income and other payment obligations.

There are mortgage loans that require little to no down payment, though. These are often backed by the government or organizations under them. Be sure to get in touch with a trusted mortgage broker who can discuss what would be the best loan for you.

No Down Payment Options

Loans with no down payment options can be very helpful for first-time homebuyers. Keep in mind that most of these mortgages will have very specific eligibility requirements that you need to fulfill if you wish to get this. Here are a few examples.

  • VA Loan. The VA Loan is offered by the US Department of Veteran Affairs. This fund is reserved for members of the military and requires no down payment. Applicants will only face a funding fee in exchange.
  • USDA Loan. This loan by the US Department Of Agriculture offers a no-down-payment mortgage loan for homebuyers who are seeking property in a rural area. There is an upfront guarantee fee that can be paid alongside the mortgage price itself.
  • Navy Federal Credit Union. Navy Federal has a zero-down mortgage loan for members and families of the military. They also offer the loan to the US Department of Defense employees. Compared to the VA loan, there are ways where the funding fee from this credit union may be lower.

Low Down Payment Options

As those zero-down payment options can be quite stricter with their requirements, there’s a chance that you’re unable to qualify for them. However, there are still other options open where only a low down payment is required. Here are a few options.

  • FHA Loan. The loan from the Federal Housing Administration is open for many citizens who are seeking a mortgage that would require just a 3.5% down payment. Those with lower credit scores may be charged with a 10% down payment.
  • Conventional 97 Mortgage. The Conventional 97 mortgage loan is one of many offered by Fannie Mae and Freddie Mac, a government-sponsored enterprise. This requires only a 3% down payment, accepting gifted funds to cover the expense.
  • HomeReady Mortgage. The HomeReady mortgage by Fannie Mae only needs a 3% down payment. It’s also beneficial to homebuyers who may want more flexible underwriting on their loan to get a better price.
  • Home Possible Mortgage. The Home Possible mortgage by Freddie Mac just needs 3% down payment as well. There are also flexibilities similar to the Home Ready mortgage, though this is more open for people with lower credit scores.

Buying A Home in Dallas With New Frontier Financial Inc

Martha Walters of New Frontier Financial Inc quoted “Don’t limit yourself to mortgages with high down payments. No matter your financial situation, there should be a mortgage loan program suitable for you. That way, you can purchase a house and pay it back on your own terms.”

Need a mortgage broker in Dallas, TX to discuss your options? New Frontier Financial Inc is a mortgage broker service that can introduce you to different purchase options. Call us at (469) 886-8300!