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FHA, VA or USDA: Which One Is Better?
 There are two basic types of mortgage loan programs, conventional and government-backed. A conventional loan is one where the issuing lender assumes the risk of making the mortgage. Should the loan ever go into default and the lender is forced to foreclose, the lender is on the hook for the entire loss. There is in fact private mortgage insurance used for low down payment conventional loans, but the insurance policy only covers the difference between 80% of the value of the property and the actual down payment. With a 5% down payment, 15% of the loan amount will be covered.
Not so with government-backed loans. These loans are FHA, VA and USDA. So, given these three choices which one
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Mortgage Rates
U.S. averages as of June 2021:
30 yr. fixed: 2.95%
15 yr. fixed: 2.27%
5/1 yr. adj: 2.59%
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one is best? The answer is each one is best given the proper scenario. Let’s look at the first choice, the FHA loan. This is a program from the Federal Housing Administration. It’s highly
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How to Get Ready for an Open House as a Seller
 For the past year, open houses weren’t really happening throughout most of the country because of the pandemic. Now that vaccines are available and slowly, the country is starting to return to a sense of normalcy, there may be an uptick in open houses.
These events might look a little different. For example, there might be fewer people and more social distancing, but regardless, the concept is the same.
As a seller, you want your home to look beautiful and appealing to possible buyers. So what can you do to make your home stand out?
Talk to Your Real Estate Agent
Your best source of information as far as what you need to do to make your home picture-perfect will come from your
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What to Know About Selling a Home to a Family Member
 It’s not uncommon to want to sell a home to a family member, but it can become a tricky situation. You have to be mindful of not only the personal elements that can come with doing this type of transaction with a relative, but the IRS may also scrutinize the transaction if you don’t avoid certain red flags.
It’s perfectly legal to sell a home to a family member as long as you’re not just doing it to avoid taxes. If you’re selling the home at a very discounted rate, you might have to pay an estate and gift tax, but beyond that, it’s just like any other real estate transaction.
Owner-Financed
One option if you’re selling your home to your child, for example, is to do an owner-financed sale. Then, your family member would make payments to you instead of a bank. However, you need to legally arrange it so that if your relative defaults, the home goes back to you automatically and you can then sell
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The Law Offices of Fred Peet
55 Patchen Road
South Burlington, VT 05403
802-860-4767
800-683-3903 (toll free)
802-860-2822 (fax)
fpeet@peetlaw.com
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Meet Our Real Estate Law Team
Attorneys:
Fred V. Peet
Richard C. Maxson
Christopher M. Perra
Kevin J. Shortell
Paula LeBlanc
William Flender
Eric Derry
Paralegals/Legal Assistants:
Doreen Guthrie
Sherry Morin Barton
Amy Benway
David MacPeek
Shawn A. Nelson
Karen Eddy
Elise Martin
Marcy Brigham
Sheri Slack
Linnea Oosterman
Samantha Kittredge
Kristy Farnham
Carol Davis
Closing Coordinators:
Katy Baker
Laura Martin
Daily News and Advice
Read about the events shaping the Real Estate market today, find current interest rates, or browse the extensive library of advice and how-to articles written by some of the top experts in Real Estate. Updated each weekday.
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