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A 30- or 15-year, fixed-rate mortgage with the same payment amounts each month is one of the most common ways to buy a home”but not everyone can qualify for a traditional mortgage, or has the money set aside for a sizable down payment so they can get a low-interest loan and have affordable payments.

Here are four non-traditional ways to be able to afford to buy a home:

1. Borrow from your parents: If you don’t mind possibly changing your relationship with your parents, ask them for a loan to help you come up with a bigger down payment so you can qualify for a loan. Hire a lawyer to write up a contract, and make sure the loan doesn’t appear as a gift, which would require a gift tax to be paid.

2. Parental co-signers: If your parents won’t loan you money, ask them to co-sign your home loan. This can improve your debt-to-income ratio, making you a better risk to the lender”but your parents should be aware that if you don’t make loan payments, they’ll be liable for them.

3. Borrow from a retirement account: If you have enough money in your 401(k) or IRA, you can borrow money from yourself if you use the money for a down payment on a house, or, you could use the retirement funds to show a lender that you have a lot of money in savings to make loan payments if you lose your job.

The downside is that if you’re 59-1/2 years old or younger and withdraw any of your retirement savings, you’ll pay a 10 percent penalty and will pay taxes on it. The money will have to be repaid within 60 days if you lose your job.

A Roth IRA is after-tax money, so withdrawing from it to buy a home means you’ll only be taxed on the earnings, not the full amount.

4. Insurance policy with cash value: Some life insurance policies allow policyholders to borrow against the principal or cash value, and the money can be used for whatever they wish, including a home purchase. The loan won’t have to be repaid”although not repaying it will leave a lower death benefit.

Whichever non-traditional strategy you use to finance a home, talk to your financial advisor and tax preparer for details on how it will affect your finances.

Published with permission from RISMedia.

If youre searching for a new home, you might want to consider looking in a subdivision. You could find a house with amenities that homes in other neighborhoods lack, but there are some downsides to consider.

What Are Houses Like in a Subdivision?
Houses in a subdivision were most likely built by the same construction company. Therefore, they will be around the same age and may all have a similar style, or a handful of styles may be repeated throughout the neighborhood. Theyll also probably be similar in size, unless some homeowners have built additions.

Homes in a subdivision may have some standard amenities that arent typically found in houses that were built individually and scattered throughout other communities. If youre looking for a master suite or a house constructed with the most energy-efficient materials, you may be more likely to find those features in a subdivision than in other areas.

Other Characteristics of a Subdivision
Subdivisions are generally built outside the center of a city. That means they may not be close to stores, restaurants, parks and other places you visit frequently. That could be a problem if you dont have a car, or you might wind up spending a lot more than you would like on gas and vehicle maintenance.

Houses in a subdivision are generally close together. That can be a good thing if you like to spend time with your neighbors and your kids make friends in the community. You may also feel safer knowing that other people are around and that neighbors can keep an eye on your home if you go on vacation. The proximity could be a problem, however, if you prefer privacy and your neighbors like to socialize.

A subdivision is often governed by a homeowners association. Fees are typically charged for maintenance, landscaping and insurance coverage for common areas, such as a community pool and tennis courts. The fees may be several thousand dollars per household per year. An HOA may have rules governing everything from the colors people can paint their houses to landscaping, fencing, use of yards, where vehicles can be parked, and when and how residents can decorate their homes. Some people like the fact that everyone is held to a consistent standard to maintain the appearance of the neighborhood, but others are frustrated by the lack of freedom.

Is Life in a Subdivision Right for You?
A house in a subdivision may have the amenities and sense of community you want, but it may also have an overwhelming number of restrictions. Before you decide to buy a house in a subdivision, make sure you understand the rules and discuss the pros and cons with your real estate agent.

Published with permission from RISMedia.

When a homeowner is struggling to pay a mortgage, a loan modification and a short sale are two popular avenues that can help the borrower avoid foreclosure. If a lender rejects those options, another possible solution is a deed in lieu of foreclosure, which transfers the title for a house from the owner to the mortgage lender in exchange for releasing the borrower from responsibility for the debt. A house does not need to be in foreclosure for a deed in lieu of foreclosure to be an option.

Is a Deed in Lieu of Foreclosure the Right Solution for You and Your Lender?
A deed in lieu of foreclosure allows both the borrower and the lender to avoid the expensive and time-consuming foreclosure process. It also allows the borrower to avoid the potential embarrassment of being evicted.

If you have home equity, selling your house would be a better solution than pursuing a deed in lieu of foreclosure. If you dont have any equity, a deed in lieu of foreclosure might be your best option. It would not be a good choice, however, if you have a second mortgage since the second lender could seek money from you for a deficiency. If you agree to a deed in lieu of foreclosure, make sure the document clearly releases you from liability to repay your mortgage.

Before you agree to a deed in lieu of foreclosure, make sure you understand the implications. It would appear on your credit report and could be just as damaging to your ability to obtain future credit as a foreclosure would be. You would not be able to purchase another house for several years. In addition, you might owe taxes on the canceled mortgage debt. You should discuss that with your accountant before making a decision.

Lenders are often unwilling to accept a deed in lieu of foreclosure if the homeowner is current on the mortgage. In those circumstances, a lender could make more money by going through the foreclosure process. In addition, any liens that were filed against the property by other creditors would become the responsibility of the lender, unless the agreement stipulated that the lender was not responsible for the liens. Some loan guidelines do not allow a deed in lieu of foreclosure.

Think Carefully Before Choosing a Deed in Lieu of Foreclosure
If youre unable to pay your mortgage, a deed in lieu of foreclosure could allow you to walk away, but it should only be used as a last resort if other solutions are unavailable and if youve accepted that youll lose your home one way or another. Before you consider this option, explore other possible solutions.

Published with permission from RISMedia.

When calculating the cost of homeownership, it’s important to include not only everyday costs, such as mortgage payments, utilities and property taxes, but also inevitable home-repair expenses. Some of the most common home repairs involve plumbing fixtures, patios, fences and driveways, heating and air conditioning systems, and painting both inside and out. Youll also likely want to make home renovations at some point over the years.

The good news is, keeping up with home maintenance or making renovations will preserve or enhance your home’s value; however, it’s crucial that homeowners plan ahead for the costs involved. Here are five quick tips from BMO Harris Bank:

1. Contribute small amounts of money regularly to an emergency fund for maintenance and repairs. The money will add up over time and be there for when disaster strikes or you decide to make a home improvement.

2.Understand how a repair or renovation will impact the value of your home by researching which renovations create increased value and are popular selling features. Conversely, making unpopular changes could ultimately hurt your homes appeal and value when you decide to sell it.

3.Think long term when making financial decisions. Whether youre using savings or borrowing to renovate, take the time to meet with a financial expert to ensure your renovation meets your long-term financial objectives.

4. Expect the unexpected. Be financially prepared for things to go awry during a project, such as a leaky roof, broken pipe or other course corrections that may occur. This could significantly increase the cost and time it takes to finish a project.

5.Get renovation quotes in writing, and understand what guarantees the contractors provide. For example, if the cost of the plumbing in your renovation is more work than expected, will the quote go up?

Although no one has a crystal ball, financially preparing for repairs and renovations is a smart move for all homeowners!

Published with permission from RISMedia.

Ants are among the most common pests found in homes across the U.S., climbing up walls or marching across kitchen counters. During the spring and summer, ants might try to invade your home, and fighting an infestation can be an uphill battle.

However, according to the National Pest Management Association (NPMA), there are five simple steps homeowners can take to prevent unwelcome ants from moving in.

1. Know the Popular Hangouts

Its probably not surprising to hear that ants most frequently infest kitchens. After all, kitchens are full of food and water”everything ants need to survive. Other common ant hangouts include bathrooms, bedrooms, living rooms, basements, inside walls, and in or around air conditioning and heating units.

2. Eliminate Water Sources

Reducing moisture and standing water around your home can significantly help prevent the appearance of ants. Repair leaky pipes, and routinely check under sinks for areas of moisture. Consider using a dehumidifier in damp basements, crawl spaces or attics. Outside, ensure that downspouts and gutters are functioning properly so that water flows away from the homes foundation.

3. Eliminate Food Sources

Keeping your kitchen tidy will help discourage ants from coming indoors. Wipe down counters and sweep floors regularly to eliminate crumbs and residue from spills. Store food in sealed containers, and keep ripe fruit in the refrigerator. Wipe down sticky jars, especially any containing honey, syrup or other sweets. Finally, use a lid on trashcans and dispose of garbage regularly.

4. Dont Discount Your Pets

Cats, dogs and other pets can inadvertently invite ants into your home. Their food and water bowls are an attractant for pests, so be sure to keep pet bowls clean and clean up any spilled food or water promptly. Store dry pet food in a sealed plastic container rather than the paper bag it often comes in, which can be easily accessed by ants. Inspect dog or cat doors to ensure pests cant get through. Remember that ants can fit through even the tiniest openings.

5. Block Off Access Points

Take time to inspect the outside of your home for easy access points. Trees and bushes should be trimmed away from the home, as branches can provide highways for ants to travel indoors. Seal any cracks and crevices on the outside of the home with silicone caulk, paying special attention to areas where utility pipes enter.

If you do find ants in your home, there are several consumer products and DIY treatments that might help you get rid of them. But the NPMA suggests contacting a licensed pest control company, which will be able to identify the ant species, spot likely entry points and determine an effective course of treatment.

Published with permission from RISMedia.