Monthly Archives: July 2018

Record Number of Older Americans Working; Why, do you think?

As life expectancy gets longer and longer, the age of retirement is getting pushed back, too, with the highest number on record of Americans aged 85 and up working, an analysis in the Washington Post presented.

“Overall, 255,000 Americans 85 years old or older were working over the past 12 months,” writes Andrew Van Dam. “That’s 4.4 percent of Americans that age, up from 2.6 percent in 2006, before the recession.

According to the analysis, United State Department of Labor figures show U.S. residents are working or looking for work at the highest rates on record for every year of age above 55.

“Baby boomers and their parents are working longer as life expectancies grow, retirement plans shrink, education levels rise and work becomes less physically demanding,” Van Dam writes.

The highest percentage of older workers is in the farming and ranching profession, with most of the other workers scattered in just 26 of the 455 occupations that the Census Bureau tracks. Interestingly, less than a third of the total workforce is in those 26 occupations.

“Workers age 85 and older are more common in less physical industries, such as management and sales, than they are in demanding ones such as manufacturing and construction,” Van Dam writes.

The odds are better that you are over 85 if you are a crossing guard, a musician, work in a funeral home, or are one of the “product demonstrators like those you might find at a warehouse club store,” the article states.

While the article did not cite any specific reasons why an older person would work into their 80s, a photo and caption with the article shows an 87-year-old man who said he is thinking of becoming a truck driver to help pay for his wife’s medical bills. This is one common way that a reverse mortgage can help retirees who qualify, loan originators have said.

Written by Maggie Callahan

“You can talk to me about this,” says Warren Strycker, veteran financial professional at Gofinancial. net. “See contactinformation’ on the home page under ‘information’ tab. I’ll be waiting for your questions.”

 

So, you’re retired and you want to “fix & flip” a house for sale or rent?

Some of you are retired and  you’ll need some extra cash to make ends meet. You can build some rentals or build to sell. But you will need some cash to pay the construction bills.

Construction loans for new-built homes are either obtained by the homebuilder or prospective owner. In pre-recession days, small builders had greater access to capital but now must frequently put the onus on the buyer to get the loan. That’s one reason most new homes rising today are simply “specs” built by big, high-credit corporate conglomerates.

The basics of construction loans

Let’s proceed on the assumption that you’re taking out an individual construction loan. Such loans, which can be tough to get without a previous banking history because of the lack of collateral (a finished home), have special guidelines and include monitoring to ensure timely completion so your repayment can begin promptly.

Construction loans are typically short term with a maximum of one year and have variable rates that move up and down with the prime rate. The rates on this type of loan are higher than rates on permanent mortgage loans. To gain approval, the lender will need to see a construction timetable, detailed plans and a realistic budget, sometimes called the “story” behind the loan.

Once approved, the borrower will be put on a bank-draft, or draw, schedule that follows the project’s construction stages and will typically be expected to make only interest payments during construction.As funds are requested, the lender will usually send someone to check on the job’s progress.

Construction-to-permanent arrangement

Upon completion, which is defined by a certificate-of-occupancy issuance and full payment of contractors (and often their signatures on lien releases), the borrower’s loan liability will typically roll over into a mortgage, ideally in an arrangement where the borrower pays closing costs only once. Of late, lenders have been combining the two into a single 30-year loan with one closing, called construction-to-permanent financing. Because of the bank’s greater loan-to-value risks in these, I might add, be prepared to put a little more skin in the game: The lender may offer only 80 percent of project costs or even less. If you already own the land, that can serve as equity.

Construction delays due to weather and material/labor availability are fairly common. Be sure to build some allowances for this into the construction timetable.

Why is there so little information or competing lender offers on construction loans online? For starters, these loans represent only a very small percentage of home loans. Plus, they’re a bigger risk. Hence, such financing isn’t the type of thing lenders aggressively market online; you have to hit the streets for it. Regional banks and credit unions are typically the best sources.

But then, there’s Patriot Lending in Arizona that can do it quicker and with less hassle and at less cost. Call me with your questions, 928 345-1200 or check out information tab on home page for contact information.

Without impeccable credit or a strong existing lender relationship, you may be challenged to find an affordable construction loan in today’s lending climate, though a booming local housing market and substantial family income tend to grease approvals.