Even though the basic concept of a mortgage is fairly universal, every country has different laws and regulations regarding buying and owning property. Before buying property overseas, buyers should take the time to become thoroughly aware of the legal implications that home ownership has in the country they are moving to. It is often quite different than in the United States.

Think of it kind of like the property deals that took place in the early history of our own country. European settlers, who were familiar with one concept of land ownership, bought the rights to land use from Native Americans who, in many cases, didn’t even subscribe to the idea that land could be owned. One group thought they were selling the rights to Europeans to hunt and build homes without being scalped. The other figured it was time for the natives to move.

While most overseas property deals will not result in misunderstandings of that magnitude, it’s nevertheless a good idea to know what you’re getting into. Among other things, here are some things you should look into:

• Property taxes. How much is the government of your new country going to charge you for living in your home? Even in the US, this can vary widely from community to community. Take the time to understand how much you’ll need to pay in taxes, and how you go about paying them.

• What does ownership entail? Basically, what rights does owning the property offer you? In some countries, there are limits on the rights of homeowners if you’re not actually a citizen of the country, so do your homework. This is especially important if you’re buying land in certain South American countries.

If you’re going to be working overseas, buying a home there often makes sense. It saves you from throwing your money away on renting and can, in many cases, be a good investment.

One last thing you need to consider is building a credit history in that country because usually it’s necessary before you can obtain home loans there. American banks are often hesitant to loan money for foreign property and credit histories often don’t translate from one country to the next.

Photo via JoopDorresteijn

If you are looking to buy a new home then you should definitely look into an FHA home loan. FHA loans can be great for the first time buyer and there are many benefits of having an FHA loan. Here are some blog posts that talk about FHA home loans so you can see if this is the best way for you to go when purchasing a house.

1. Ricky Bobby’s Blog – A Florida-based blog with information explaining what FHA loans are how they can help the average citizen buy a home for the first time.
2. The Wealthy Review – This post gives a history of FHA loans and info about who can get them and how.
3. Barbwire’s Blog – This blog has information on the differences between FHA loans and conventional loans for homebuyers.
4. FHA Loan Pros – This blog has information about why the FHA loan program is beneficial for those who qualify for the PACE program.
5. Realtor Blog – This is a blog created by realty specialists and offers information about how current homeowners can make their home FHA friendly for a quick sale.
6. Suite101 – Here is some helpful information about getting down payment assistance with an FHA home loan.
7. RISMedia – This blog dispels myths about FHA loans and gives info about the FHA process and how the government is aiding homebuyers in getting the homes that they really want.
8. Sean’s Wire – This blog gives information about how FHA loans can help reduce your monthly payment and your initial down payment.
9. Info Media Inc. – Here is some great info on FHA borrower’s rights and loan criteria.
10. T-Rex Global – This blog has a wealth of information about FHA policy changes and how they will affect homebuyers.
11. FHA Loan Requirements – This FHA blog has information on the pros and cons of choosing a veteran loan or an FHA loan.
12. Press About – This blog has information on FHA loan requirements in regard to credit scores and down payment.
13. Reverse Mortgage Daily – This blog offers info about HUD rules designed to strengthen FHA Loan risk management.
14. The Mortgage Brain – This is a great blog that gives info on the steps needed to successfully complete an FHA loan application from start to finish.
15. LoanSafe – This blog has a lot of information about FHA first look sales method and what that means for homebuyers.
16. AllNews365 – This post reports on very important changes in FHA regulations that affect homebuyers’ interest rate, closing costs and down payments.
17. Mortgage Mythbusters – Readers of this blog will find five facts about FHAs that agents and buyers need to know.
18. Real Estate Investing – This blog explains terminology used during the home buying process and info about FHA loans and why what you don’t know will cost you.
19. Urban Insurance – This blog has interesting information on FHA loan insurance, rates and premiums.
20. Massachusetts Real Estate News – This professionally written blog explains how to qualify for FHA and USDA loans and gives information about requirements for each.
21. Mortgage Fraud and News – This blog covers information related to frequently asked questions about FHA loans and refinancing a mortgage.
22. Jan O’Brien’s Blog – This is another professionally written blog with info about 3 FHA policy changes that affect eligibility.
23. Mike Galbally’s Blog – This blog offers info about FHA loans and explains what they are, how they are obtained and who can get one.
24. Mortgages Unzipped – This is a blog that summarizes the changes to FHA loan information inclusive of down payment percentages, credit scores, and insurance premiums.
25. Finance Moz – This is a helpful blog with info about FHA loans, what you need to apply, and how to tell if you can afford to own a home.
26. Clay Lee’s Blog – This blog offers info about FHA loan requirements and the newly raised loan limits.
27. Think Your Way to Wealth – The information in this blog refers to FHA, USDA, and VA loans and how each are a great choice for new home buyers.
28. Stock Markets Review – This blog has information about FHA loan requirements, who may use them and what their benefits are.
29. Sue Mellett’s Blog – This Texas-based blog gives information about FHA loans and how they can help professionals like teachers, firefighters, and EMTs who want to buy a home but programs for their professions are depleted.
30. Karen List’s Blog – This blog explores information about FHA loans and who may or may not benefit from them at closing time.
31. FHA Connection – This is a brief blog with background info about FHA loans and what makes them so popular.
32. Refinance – This blog has great information about refinancing your home using FHA loans.
33. Pacita Dimacali’s Blog – This is important information to consider about the FHA loan anti-flipping waiver and what it means for you to buy houses to flip for profit.
34. Mortgage Delights – The information and tools in this blog are designed to aid the confused and struggling homebuyer with an FHA loan.
35. Competitive Enterprise Institute – A resourceful blog that has a lot of information about the subprime market and FHA loans for those with less than perfect credit.
36. New Hampshire Refinance – This blog lists info about all the benefits of FHA streamline loans.
37. ECredit Daily – This blog has information about the tightening credit requirements for FHA loans aimed at managing risk and keeping the market stable.
38. Remax Classic Group Blog – This is an informational blog that dispels rumors and myths about FHA loans and who they are for.
39. The Truth About Mortgage – This post gives important insight into the reasons for the FHA loan requirements to tighten their eligibility.
40. Bill Polack’s Blog – This blog written by a real estate professional gives detailed information about the two types of FHA home loans: 203b and 203k.
41. Vecduo Real Estate Blog – This blog is a commentary with info about FHA refinance rates.
42. ChiTown Living – This is a blog with great information about how to utilize the FHA spot loan procedure and HUD search tools to find your next home.
43. Jacqueline Clarke’s Blog – This is a blog from an industry professional with great info about the 203k FHA home loan.
44. Calculators4Mortgages – This blog offers information on steps to obtaining an FHA loan.
45. BDNationwideMortgage Blog – An informational blog from loan professionals about FHA loans and fixed rate options.
46. Casey Trejo’s Blog – This is a blog that contains info about FHA 203k loan programs and property conditions under this program.
47. Barbara and Susi – This is a list of 7 things that all borrows should know about FHA loans with info about each.
48. Julie Reddington’s Blog – This is a guide with information about which FHA loans are the best for different types of homeowners.

Obviously, we know by now that it just isn’t completely true. Yes, the value of real estate and housing does tend to go up over time, and probably always will, as long as you have the time to wait the market out. But, it doesn’t always go up. Like any other market, it is cyclical, and it does correct itself from time to time. Hopefully you weren’t trying to flip a house when it corrected itself this time. If you were, you took a soaking, for sure.

The really sad thing in this housing crisis, though, is that a lot of the hype and information about flipping houses has gone away. Why is it that people have such a herd mentality that they can’t see opportunity when it bites them in the ass? Hasn’t anyone ever heard that age old saying about how to get rich? Buy low, sell high.

This isn’t rocket science. If you can obtain home loans, and have ever had a desire to flip houses for a living, now is the perfect time to do it. The loans are at an all-time low as far as interest rates go, banks, despite what you’re told, are eager to lend money to qualified buyers, and on top of that, you’re never going to see the price of housing as low as it is right now, in all likelihood.

We were concerned when people kept buying homes for speculative purposes before. At some point, the bubble had to bust. But now, with property values in the crapper, those who can afford to wait it out for a little while stand to make a killing when values start going back up. So, what are you waiting for? If you ever wanted to flip houses without falling on your face, now is not only NOT a bad time to get in, it’s likely the best opportunity you’ll ever see.

Photo via alex_ford

Of course, the requirements for these loans are a little more stringent than for conventional home loans. With a traditional mortgage, banks feel a bit freer in lending because they have the leverage of holding the house you actually live in as collateral. The idea is that most people, even if they don’t pay all of their other bills, won’t want to fall behind on their mortgage because, let’s face it, homelessness is not a pretty option.

Obviously, home loans on vacation properties don’t carry that kind of leverage. Still, if your credit is good, and you don’t already have too much debt, you may be able to qualify for a second home. Go see your lender before actually shopping for a second home, as this will give you an idea of how much of a home loan you will qualify for.

Once you’ve determined that you qualify for a loan on a second home, the next thing to do is to find one. Right now is perhaps the best opportunity to buy property at a literal steal than any other time in our lifetime. Property is being sold dirt cheap, and it’s an excellent time to take advantage of your good credit if you want a vacation home.

Of course, the possibilities for where to buy a second home are endless. Consider choosing someplace that’s not a major tourist destination. If you want a home in Florida, for example, you can save yourself a lot of money by buying a home or condo in one of the interior towns south or Orlando rather than buying right next door to Mickey Mouse or along the coasts. You can find good deals and still be within an hour’s drive of either coast or Disney World.

The same is true for most popular areas for second homes. There’s nothing wrong with buying a cabin right on the lake if that’s what you want, but buying one across the street might save you a bunch of money. But of course, those things are for you to decide.

Photo via Jesse Wagstaff

If you’re smart, you’ll at least start the process of being approved for a second mortgage before actually picking out the home. That way, a lot of the red tape can be cleared out of the way while you’re busy picking out that second home. Home loans are tougher for second homes, of course, because banks don’t feel they have as much leverage over you than when you are dealing with the house that you actually live in.

Here are some common reasons for buying a second home, and what kinds of things you should consider if you’re in the process of selecting a home or location:

• Family vacations. Many people buy a second home for the primary purpose of having someplace to go on family vacations. Of course, if that’s why you’re buying your second home, you’ll want to buy one is a place that’s likely to present a lot of opportunities to make memories. What kind of memories you’re looking for is completely up to you, of course. One family might prefer a condo near Disney World and the many attractions in Orlando, while another family might prefer a little cottage by a secluded fishing lake. It really depends on what you like to do as a family.

• Property Investment. A variation on the vacation property theme is to buy a home that can be used for your family’s vacations, then rented out for other families to use while you’re not using it. If you have a hot location, you could not only cover all of your expenses, but make a hefty profit as well. Of course, over time, the property will likely appreciate as well.

• Future Retirement House. If you’ve found someplace you’d like to retire to, it can be a great idea to buy a condo or other property. And until retirement day comes, you could even rent it out, either to regular tenants or to vacationers. The advantage of renting to vacationers is that you can charge more per diem (a lot more). This also affords you the advantage of being able to take your own vacations there. Having more permanent tenants, of course, gives you a bit more security.

Photo via ltdan

I know you’re thinking this is just a starter home, and you’re probably right. The average American only stays in a home for five to seven years before moving to a new home, and merely trades up as far as the home loans are concerned. And there’s nothing wrong with that, if it’s what you want to do.

But if the recent housing crisis has taught us anything, it should have taught us this: property values fluctuate. The myth that was perpetrated from the 1950s on through the early part of this millennium that property values will continually go up and up has been debunked. Sure, property values will probably come back up eventually, and the overall trend will probably be that they rise more often than they fall. But there are no guarantees.

So, make sure before you buy that house that you could live in it for thirty years if you have to. If it’s a fix it up house, make sure that you’re fully aware of everything that’s wrong with it. Trust us, it’s well worth a couple hundred bucks to have a good inspector go through it thoroughly so there are no surprises down the road.

You’ll want to make sure you factor in any repairs you need to make into your budget. That’s true if you’re a do it yourselfer, and even more so if you plan on contracting work. If you do plan on having work done by others, get a good idea of what it’s going to cost before you sign a mortgage. Otherwise, repairs that cost more than you expected can turn your dream home into a nightmare in a hurry.

We know you’re excited. There’s nothing wrong with that. But when it comes to buying a home, take your time. Kick the proverbial tires. Make sure you’re fully aware of everything that you’re getting into, from repairs to peripheral costs like taxes and utilities. Remember, you might be with this home for a long time. You’ll want to choose a home that you’ll still be happy with down the road.

Photo via alexkerhead

• Have a windmill installed. These run about $4,500 installed for one of the smaller ones, but it will cut your energy costs significantly, easily paying for itself in just a few short years. You have a rare opportunity to be one of the first to have a windmill put up on your property. Make sure to take advantage of all of the tax credits available to you.

• Consider heating your home with geothermal energy. This technology has been around a few years, but it’s been steadily improving. Basically, with a geothermic system, you heat and cool your house with dirt.  Obviously, this reduces the heating bill dramatically.

• Have a rain collection barrel or water feature installed. Rain water can be used for just about anything city water can, except for drinking. And if you don’t want an unsightly barrel by the side of your house, you can have attractive water feature installed instead and still recycle the rain water for use in the garden and the yard.

• Consider adding a water feature to your yard, such as a small pond, a perpetual waterfall, or a water garden. Even a small water feature provides much needed habitat for birds and other animals. Best of all, if you’re quiet, you can sit and watch them splash in the water for hours.

• Install solar panels. Better yet, install the newer, considerably more efficient solar rods. This is just one more way you can both cut your energy costs and help protect the planet at the same time.

The costs of some of these suggestions might seem a bit prohibitive, but if you include the improvement and its cost in the home loans, it really doesn’t affect your mortgage payments all that much. And if you jump on these projects quickly, much of the cost can be defrayed through government programs designed to offer incentives to those who choose to use green technology for their home.

Photo via Jesse Wagstaff

For starters, if you’re in the market for a house, you couldn’t pick a better time. The prices are probably about as low as you’re ever going to see them. Sure, they’ve been falling. They might even continue to fall a bit more, though we suspect we’re damned close to the bottom, if not there already. But even if home values continue to drop for a while, they are going to start coming back up. Like all markets everywhere, our American housing market has corrected itself. It will bounce back. It always does, because real estate has real value.

On top of that, interest rates are at an all time low. If you’re credit worthy, you can get a mortgage with an unheard of 4.5% rate. Even if you don’t plan on buying a new house, you should be thinking about refinancing your old one for an interest rate like that.

The other thing to consider, though it might be a bit unpleasant to some, is that there are a lot of foreclosures out there. In most cases, banks are looking to get rid of that property, and you might very well find a seller who is willing to accept a low offer. Another thing some are doing is buying houses from people who are on the verge of being foreclosed on. A case like that is a win-win proposition, as it helps the distraught homeowner to get out from under the house, and it helps the buyer. Since it keeps the bank from having to foreclose, it ends up being a winning situation for everyone involved.

Photo via jakeliefer

Some would suggest that that means this is a poor time to build a house. But we’re not so sure. Builders are looking for work. In some parts of the country, they’re getting desperate for work. And that sometimes means you can get the job done cheaper.

In one respect, we agree with those who say this is not the time to build. If you’re planning to build a house for speculative reasons, so you can sell it for a profit in a year or two, then they are right. You should not build. If, however, you want to design and build the home of your dreams so that you can live in it, then this is as good a time as any to build.

One advantage to building now is that home loans are at an unheard of low. If your credit is good enough, you can actually get a mortgage for 4.5%! Make sure you lock into that rate. Trust us, it isn’t going much lower, and will likely go much higher sooner rather than later.

Designing and building your own home has become a bit of a lost art, and it can be a bit pricier than buying a home that’s already been built. But if you want the final verdict on whether or not it’s a good idea to have your own home built, ask anybody who’s done it. You’ll get the same answer time and time again: it was a lot of work, and it was expensive, but it was the best thing we ever did.

The reason is simple. No matter what you want in a home, you’re going to have to compromise some if you’re buying a pre existing house. You’ll get some of what you want, but not all, and you’ll need to prioritize. As long as you have enough funding, that’s not a problem when building your own home. You can have it designed exactly the way you wanted it, exactly the way you always dreamed.

Photo via Jorge Quinteros

Some of the major banks seem to think so. J.P. Morgan Chase, for one, is adding almost 2,000 new loan originators, geared specifically for the home loans market. Do they know something we don’t know? Many housing experts are predicting that the market will continue to struggle for a while, but heavy hitters like Chase don’t just add staff willy-nilly. You can bet they’re thinking things are going to get better, and probably sooner rather than later.

So what are they seeing that we aren’t? Our guess is that a company that has been in business as long as Chase has knows that these kinds of things go in cycles. Sure, things have been rough for a while. Very rough. But they have been rough before. While there’s no way to prognosticate flawlessly where the housing market will begin its upswing, we’re guessing Chase thinks it’s pretty soon.

At the very least, they want to be prepared when the low cost of housing and increasingly attractive interest rates begin to drive the housing market forward and upward again. Which it will do eventually. Given time, in a capitalist system, it always does.

So what does that mean to Joe Consumer? Well, it depends on your situation, but if your credit is good enough to land a decent interest rate, it might mean that it’s time to go shopping for a house. You’re not likely to find the prices this low again in your lifetime, and due to government pressure (to say nothing of profit), the banks are eager to lend money and get the market rolling again.

That’s not to say that you should just go out and enter into a 30 year commitment lightly. But, if you want a house anyway, it might be the ideal time.

Photo via Emery_Way