How to Buy a Home Even if You Have Bad Credit

Experts Answer Your Top Questions About Buying a Home With Bad Credit Your credit score is one of the crucial determining factors in whether you can qualify for a mortgage. “The higher your score, the less risky you appear on paper,” says Staci Titsworth, a regional manager at PNC Mortgage in Pittsburgh, PA. If that sends shivers up your spine, keep reading. We’re here to help. The reality is that the average U.S. household has over $15,000 in credit card debt. You’re not alone if you’re wondering: Can I even try buying a home with bad credit? The answer is yes, but for a smooth home-buying journey, you’ll want to take care of any financial blips on your report now. Here we share expert answers to your questions, including exactly what a credit report is and how to raise your score to get ready to buy a house. What exactly is a credit score? It’s common practice for mortgage lenders to check your credit score, which is calculated based on the information that appears on your credit report. Five aspects impact your score, each varying in importance: payment history (35%), debt-to-credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit (10%). A quick primer: Payment history. You need to make payments on time, since one late payment can significantly ding your score. One example: A 30-day delinquency can cause as much as a 90- to 110-point drop on a score of 780 for a consumer who has never missed a payment before, according to Equifax. Debt-to-credit utilization ratio. This is how much debt you’ve accumulated on your credit cards divided by the credit limit on the sum of your accounts. Credit experts recommend keeping this ratio around 30%. If you’re maxing out your credit cards each month, you could be damaging your credit score in the process. Length of credit history. Having a longer credit history raises your score. Since credit agencies look at the age of your oldest account, the age of your newest account, and the average age of all your accounts, you should keep all of your accounts open—even those with zero balances, says credit expert Bill Hardekopf. Credit mix. It helps your score to have a combination of different types of credit accounts, including credit cards, retail accounts, installment loans, car loans, and mortgage loans. (You’re on your way to getting the last one.) New credit. Each time you apply for a new credit account, you trigger a “hard inquiry” on your credit, which dings your score (typically by five points). Therefore, avoid opening multiple credit accounts at the same time, says Hardekopf. Doing so will lower the average age of your credit accounts and hurt the length of your credit history. Caveat: Your credit report doesn’t contain your actual credit score. However, your credit card company can most likely provide your score to you for free, or you can contact a nonprofit credit counselor to find out your score. What is an ideal credit score? A perfect credit score is 850, but only about 0.5% of consumers reach that number, according to Fair Isaac Corporation, creator of the widely used FICO credit scores. Once you’re over 740, you’re considered to be in the best range for mortgages and should be able to qualify for the best interest rates, says Chris Hauber, a mortgage loan originator with Hallmark Home Mortgage in Denver, CO. If your score is in the 700s, you should still be able to qualify for an attractive interest rate. For conventional loans, most lenders look for a credit score of at least 620, says Hauber. At a minimum, applicants should have at least a 660 credit score to land a decent interest rate and avoid jumping through additional hoops to qualify for a loan. Can I get a mortgage if I don’t have a credit history? Ideally, you opened a credit card account by age 20—or at least started to build credit by becoming an authorized user on your parents’ card when you were a teenager. (Remember, the length of your credit history plays a major role in how your score is calculated.) But if you don’t have any credit established, there are other ways to qualify for a mortgage and establish a credit history. “Many lenders will look at monthly payment obligations that don’t necessarily show up on a person’s credit report,” says Titsworth. If you have a good track record of making your car loan payments and paying rent on time, that will help, say experts. Those habits are usually indicative of a responsible credit user. Is bad credit worse than no credit? No one’s perfect and mistakes happen. Maybe you forgot to pay the minimum balance on your credit card bill once or twice—or you recently met with a mortgage lender to discuss your financing options and discovered errors on your credit report. Whatever the case may be, you can always take steps to heal your credit. “Poor credit can be managed,” Titsworth points out. Moreover, there are loan programs designed to help people with mediocre credit buy a home. Federal Housing Administration (FHA) loans have some of the lowest credit-score requirements at 580 with a 3.5% down payment. Loans backed by the Department of Veterans Affairs let military veterans put as little as 0% down on a property without having to pay private mortgage insurance. How can I boost my credit score before I buy a home? To get your three-digit number up to snuff, start by addressing the financial habits that damaged your score in the first place. Pay all of your bills on time each month. Sounds tough, but it is the easiest way to boost your score, says Hardekopf. If you need help adjusting your spending habits and designing a budget that makes sense for you, consider meeting with a financial planner (you can find one at NAPFA.org). Pay down your credit card debt. Since credit scores are often the result of having a high debt-to-credit utilization ratio, one of the best ways to improve your score is to get rid of existing debt, says Hauber. Many experts use the 30% rule of thumb: Charges to your credit cards shouldn’t exceed one-third of your total available credit limit. You may also be able to raise your score by requesting a credit line increase from your credit card issuer; this would effectively reduce your debt-to-credit utilization ratio. It typically involves just making a phone call or submitting a request online. What if I notice errors on my credit report? Carefully review your credit reports for errors. You’re entitled to a free copy of your credit report every 12 months from each of the three major credit-reporting agencies (Equifax, TransUnion, and Experian). One in four Americans said they spotted errors on their reports, according to a 2013 Federal Trade Commission survey. The mistake may be something as simple as someone else sharing the same name as you and your bank mixing up your accounts, says Sylvia Gutierrez, a loan officer in South Florida and author of Mortgage Matters: Demystifying the Loan Approval Maze. If you spot an error, alert your creditor immediately. Once your creditor confirms the error, the company will submit a letter to Equifax, TransUnion, and Experian individually to get the error removed. If the error is just on one bureau’s report (like a misspelled last name), contact that agency specifically to rectify the problem. Hopefully, you spotted it early in the home-buying process, since “it can take time to get errors removed from your report,” says Titsworth. If you’re already in the process of purchasing a home, ask your loan officer to help you speed up the error removal. Can I get black marks removed from my report? If you’re the one responsible for blemishes on your report, such as a missed payment, contact your creditor and ask for a deletion. While this likely won’t work for a serial late payer, it might be granted if you’re a one-time offender; it also helps if you’ve been a loyal customer. If the creditor agrees to the deletion, they’ll send letters to the credit bureaus (the same way they do for errors) requesting that the negative information is removed from your report. Then the onus is on you to gather documents proving that changes that have been made—such as a new credit card statement or letter of deletion—and then have your lender request an updated score from the credit bureaus. This process is often referred to as a “rapid rescore” and can lead to an updated credit score in days instead of months, which can make all the difference when you’re trying to get preapproved for a home loan in a competitive market. Should I get help from a credit-counseling agency? First, you need to understand the difference between a credit-counseling agency and a debt-management company. If you’ve fallen behind on credit card payments, a credit counselor can help you create a plan to pay back your creditors and better manage your money for a relatively low cost. A debt-management company, meanwhile, will negotiate with your creditors to try to reduce the amount of debt you owe—but many debt-management companies charge a large fee for their services. Unless you’re seriously in the hole, a debt-management company probably isn’t the way to go. Whether you should meet with a credit counselor, meanwhile, depends on how complicated your financial situation is and what kind of guidance you want. If you have debt on only one credit card and simply have to pay off the balance, you already know what you have to do to mend your credit score. If the situation is more complicated (e.g., you owe money on several credit accounts and don’t know which to pay off first), a session with a credit counselor may help you devise a payoff plan. Some nonprofits, like the Consumer Credit Counseling Service, offer free consultations.

6 Financial Perks of Being a First-Time Homebuyer

From mortgage points to PMI, unlock the essential info about how homeownership affects your tax burden. Hours after we closed on our first house, my husband and I sat in our empty new living room and stared at the walls. He was the first to speak, saying simply, “I thought it was painted.” We learned a lot about that old house over the next 15 years. While we knew to expect some of the work, other tasks, such as needing to paint the walls, we figured out as we went along. One of the changes we didn’t anticipate was needing to make some adjustments to our tax forms. The forms you fill out when you buy your house are just the beginning. We quickly understood that first-time homeowners have years of mortgage and insurance paperwork to look forward to. Then, of course, there are the taxes. To help you sort through that pile of paperwork and ensure you’re saving as much money as possible we did some research into tax benefits that can come from buying. Six Tax Benefits for New Homeowners 1. You can deduct the interest you pay on your mortgage. The home mortgage interest deduction is probably the best-known tax benefit for homeowners. This deduction allows you to deduct all the interest you pay toward your home mortgage with a few exceptions, including these big ones: Your mortgage can’t be more than $1 million. Your mortgage must be secured by your home (unsecured loans don’t count). Your mortgage must be on a qualified home, meaning your main or second home (vacation homes count too). Don’t assume that if you are married and file a joint tax return, you have to own your home together to claim the interest. For purposes of the deduction, the home can be owned by you, your spouse, or jointly. The deduction counts the same either way. And don’t worry about keeping track of how much you’re paying in interest versus principal each month. At the end of the year, your lender should issue you a form 1098, which reports the amount of interest you’ve paid during the year. Warning: Since, as a first-time homeowner, you pay more interest than principal in the first few years. That number can be fairly sobering. 2. You may be able to deduct points. Points are essentially prepaid interest that you offer upfront at closing to improve the rate on your mortgage. The more points you pay, the better deal you get. You can deduct points in the year you pay them if you meet certain criteria. Included in the list (and it’s a long one): Points must be paid on a loan secured by your main home, and that loan must be to purchase or build your main home. Pro tip: Points that you pay must also be within the range of what’s expected where you live — unusual transactions may cause you to lose the deduction. 3. Depending on the year and your income level, you may be able to deduct PMI. Private mortgage insurance, or PMI, protects the bank in the event you default. PMI may be required as a condition of a mortgage for first-time homebuyers, especially if they can’t afford a large down payment. For most years, PMI is not generally deductible, but the specific rules around it change annually. In 2016, if you made less than $109, 000 a year as a household, you could claim a tax deduction for the cost of PMI for both their primary home and any vacation homes. Check to see if the PMI deduction is a possibility as you are working on your taxes. 4. Real estate taxes are deductible. Real estate taxes are imposed by state or local governments on the value of your property. Most banks or other mortgage lenders will factor the cost of your real estate taxes into your mortgage and put those amounts into an escrow account. You can’t deduct the amounts paid into the escrow, but you can deduct the amounts paid out of it to cover the taxes (you’ll see this amount on a form 1098 issued by your lender at the end of the year). If you don’t escrow for real estate taxes, you’ll deduct what you pay out of pocket directly to the tax authority. And don’t forget about those taxes you paid at settlement. If you reimburse the seller for taxes already paid for the year, you get to deduct those too. Those amounts won’t show up on a form 1098; you’ll need to check your settlement sheet for the totals. 5. Your other tax deductions may matter more. To take advantage of these tax benefits, you have to itemize your deductions on your tax return. For most taxpayers, this is a huge shift: in many cases, you’re moving from a form 1040-EZ to a form 1040 to list expenses on Schedule A. In addition to interest, points, and taxes, Schedule A is where you would report deductions for charitable donations, medical expenses, and unreimbursed job expenses. For itemizing deductions to make good financial sense, you generally want to have more total deductions than the standard deduction (for 2015, it’s $6,300 for individuals and $12,600 for married couples). Most taxpayers don’t reach those numbers — unless they’re homeowners. The home mortgage interest deduction, in particular, tends to tip most homeowners over the standard deduction amount, making those other deductions (such as medical expenses) that might otherwise go unclaimed more valuable. 6. You’ll get capital gains tax relief down the road. I know you just bought your home, but admit it: Resale value is something you considered when you chose your home. And different from other investments for which you’re taxed on the full value of any gain, you can exclude some of the gain attributable to your home when you sell. Under current law, you can avoid paying tax on up to $250,000 of gain ($500,000 for married filing jointly) so long as you have owned and lived in the property for two of the last five years (those years of owning and inhabiting don’t have to be consecutive). Gain over that amount is taxed at capital gains rates, which are generally more favorable than ordinary income tax rates.

3 Reasons You Should NOT Follow the American Dream and Buy Your Own Home

3 Reasons You Should NOT Buy Your Own Home 1. Buying a home ties up money that could be out making money. That brings me to the first reason why you should never own your own home. Once you buy this half-a-million-dollar property, hypothetically, you are going to have to put down $100,000. Now, the $100,000 is going to be the deposit to purchase the property. You are going to tie up $100,000 of liquid capital that is not going to produce a return on investment. Now, yes, you can talk as much as you want about capital appreciation and all that jibber jabber. But if you know how to make money in real estate, you should always stay liquid. You should use the $100,000 to buy, fix, and flip. Make a $20,000 profit, and now that money that you’ve got sitting there is not $100,000 anymore; it’s $120,000. Rinse and repeat. Keep buying, fixing, and flipping—or wholesale or wholetail the property. You don’t have to flip; there are a lot of ways to make money in real estate. Money makes money, so use the liquid capital to go out into the market to make more money with it. Related: Forget the American Dream—Renting, Not Homeownership, is the Path to Financial Freedom Personally, when less than 10 percent of my net wealth purchases my dream property, that is when I’ll pull the trigger on that home—with cash. I can tell you right now, my dream property is around $4-5 million, so I will have to have a net wealth of $50 million before I buy that house. I don’t want any debt; I actually want to buy it with cash. Until then,I am happy to rent. I rent a crappy little 2-bedroom, 1-bathroom apartment with my family right now. Every spare dollar I have is out making more money for me. 2. Buying a home reduces flexibility. The second reason is when you purchase your own home, you will be stuck. You’re going to anchor yourself to the ground, and you’re going to have this big mortgage that forces you to get out of bed every day and go to work so you can pay it off. You will also probably be buying this property in a great little school district so your kids can go to school, get good grades, and go to college. Guys, you are just falling for the stereotypical American Dream. You’ve got no mobility. What if there is a change in government, what if there is a third world war, what if you need to move quickly? I have literally moved like a gypsy, looking for other opportunities. I’m living in Toledo, Ohio right now, out of all places. There is not a ton to do here except invest in real estate and make a ton of money doing it, which I’m doing right now. I’ve got multiple companies here. This was a sacrifice I was willing to make. I mean, what if you get a better job opportunity? In my opinion, the world is changing at a rapid pace. You do not want to throw that anchor. There is so much uncertainty going on in today’s day and age, You want to be flexible, mobile, and move to where the opportunities are available. 3. Buying a home introduces all kinds of expenses. That leads me to reason number three, and that is the expenses. I think that a lot of you out there don’t understand how many expenses you will incur by owning your own home. Let’s just start with this thing called a mortgage. I’ve already mentioned before that after you get into a ton of debt with a mortgage, you will have to get out of bed every day to go to your 9-5 so you can afford those mortgage repayments. I don’t have to do that, as I already mentioned. All my liquid capital is out in investment properties, producing more money and cash flow for me, which is how I afford my rent. Related: Why Following the American Dream Will Rob You of Financial Control How about all the maintenance expenses—cleaning the gutters, mowing the lawn, the insurance costs? Time is money. I feel sorry for those people mowing their lawns an hour every single week. I would rather be making this video or on the phone. I would suggest you rather use your liquid capital and invest it in cash flowing investment properties or in buy, fix, and flip properties. Rent a crappy little home or a condo, whatever it may be, and use your liquid capital to invest it and make money. Let the tenants cover all of your expenses. Look, I know that this vlog goes against popular belief. I’m happy to take whatever criticism you throw my way. So please make sure that you comment below. I would love to hear from a person who has successfully purchased their own home, hasn’t incurred that many expenses, and also has a large real estate portfolio on the side. I would love to hear how you have structured all of that.

5 Secret Sources of Down Payment Money

The down payment: It’s the biggest test of our ability to save money that most of us will ever face, and one that stands between us and our ability to become a homeowner. It can be tricky to stockpile enough money for a down payment, but it’s also an opportunity. The more money you put down, the more choice you’ll have about how much house you can afford and what you want the monthly payment to be. Plus, building up a cash cushion will definitely give you peace of mind once you’re in your new home. Here’s How to Boost Your Down Payment Savings 1. Go local. Gone are the times when nationwide programs allowed for the zero-down loan, the federal homebuyer tax credit, and the use of tax credit funds toward down payment and closing cost requirements. Where have all the down payment assistance programs gone? Local. The best programs of this sort are now largely operated by local governments—primarily cities and counties—and the rules for qualifying vary. Some are exclusively for buyers with low or moderate incomes; others are dedicated to helping first-time homebuyers. Many of these programs have a limited pool of funds that may run out over the course of the fiscal or calendar year, and almost all of them require buyers to jump through some hoops, such as completing homeowner education classes or choosing a home that meets specified criteria. To find these programs, look for links for homebuyer assistance on your city, county, and state websites. Only trust websites that end in .gov—scammers posing as governmental agencies abound. Local real estate agents and mortgage brokers often know the ins and outs of these programs too. 2. Hit up your relatives. Most mortgage programs will allow for some portion of your down payment to come in the form of “gift money,” which is exactly what it sounds like: money someone gives you to help you buy a home. While gift money may sound great, be aware that taking gift money from a relative can create relationship issues or come with emotional strings attached. Plus, lenders frequently require that gift money be accompanied by a letter that clearly states the money is a gift, not a loan. The lender may also want to see a bank account statement from the giver, proving that the money was theirs to give. 3. Ask your employer. Universities and municipal departments that employ first responders such as police and firefighters frequently make down payment and other home-buying assistance programs available to staffers. Large employers or even smaller companies seeking to lure top-level recruits do something similar: relocation assistance programs. Check in with human resources to explore whether any such assistance is available—and if you happen to find yourself a hot prospect on the job market, consider trying to negotiate relocation or down payment assistance into your offer package. 4. Tighten your budget. Get gut-level real with yourself about what’s truly important to you. If the answer is buying a home, then it’s time to examine your spending and look for leakage that you can redirect to your down payment savings. If you spend $20 a workday on a morning coffee and bagel and a takeout lunch, that’s at least $400 per month—almost $5,000 a year you could be saving. And those numbers are not inflated to reflect big-city prices. Nor is the $100-a-month cable bill, the $15 yoga class, or the $2,000 vacation. Instead, brown-bag your lunch, stream TV shows and movies from one online source, and rally your friends to do a workout class together from that streaming site. Cut hotel costs by renting a private room or small apartment on a site such as VRBO or Airbnb. The key is to shift out of spending autopilot and to transfer the saved money into a separate savings account that’s earmarked for your down payment. 5. Borrow from yourself. There are situations in which it may make sense to borrow a few thousand dollars from your 401(k) or IRA. Some retirement accounts allow you to borrow against or pull out funds, penalty-free, to apply them toward your down payment on a home. Is it advisable for everyone, in every situation, to deplete their 401(k) or IRA to plug that cash into a house? Absolutely not. But if getting your down payment to the 20% mark by borrowing from your 401(k) gets your mortgage interest rate down and allows you to repay that cash to your own retirement account (versus to your mortgage lender) with interest, you and your financial adviser might agree that this move is right for you.

4 Ways to Cozy Up Your Kitchen for Fall

Grab your hearty soup recipes, decorative pie plates, and favorite cookbooks. Fall is here, and with just a little effort you can get your kitchen ready to make the most of it. The leaves changing color indicates the season has changed, and so follows your home decor. Decorating for the chillier fall months means incorporating warm and inviting colors and textures into your home’s interior design, specifically in the kitchen. Try these four tips to create a cozier kitchen for fall. Weave in dark textiles Fall means decorating with gorgeously textured throws, pillows, and table linens. Introduce your kitchen to an autumnal palette using dark, natural window coverings and similar table linens for a cozy effect. This look juxtaposes raw texture with soft details like fresh fruit, warm placemats, and smooth surfaces. Bank on butcher block Found most often in farmhouse-style or rustic homes, butcher block is great for countertops and tables because it’s durable and looks better the longer you have it. If you’re thinking about switching out your countertop, consider butcher block for a warm, inviting feel. If you don’t want to commit to a full countertop, try a large cutting board or table to add earthiness to your kitchen. Add pops of color If your kitchen has a blank space or accent wall, consider painting it for an inviting scene. For the fall season, you can choose to use warmer, darker colors like a deep red, warm orange, or olive or brown tone. Don’t want to paint an entire wall? Select a piece of art or two featuring deep and rich colors to create a cozy ambiance. You could even paint your cabinets or counters. Nurture indoor plants Houseplants are always good go-to decorations because they require little upkeep, and add a touch of freshness to any space. They are particularly useful in the fall because they can double as herb gardens or unique decor. Install a small indoor garden on your window sill or on a shelf near a window to have easy access to fresh rosemary, sage, and basil, even when the weather might not call for gardening. While these suggestions may seem small, they are great touch-ups to boost your festive theme this fall season. Add one or two, or mix all of the design tips for a home-sweet-home feel.

Something to Taco 'Bout Fundraiser

Join us for Taco Night! We’ll have the taco truck Madd Mex serving up some delicious bites, and plenty of libations to go around. After dinner, stick around for a silent auction with fabulous prizes from some of our favorite local businesses in San Carlos. Thursday, October 19 4 – 7 pm Coldwell Banker Residential Brokerage 580 El Camino Real San Carlos, CA 94070 Ticket cost: $30 All proceeds benefit Stanford Children’s Hospital and Angel Flight West.

The Top 7 Rental Amenities Quality Tenants Want

When I was a renter, there were a few things I needed from a place. Not all amenities were important to me, but many are. Here’s what most renters are looking for and why I make it a point to provide the optional amenities. The Top 7 Amenities Renters Want 1. Location, Location, Location Does this place have easy access to roadways? Can I bike to or otherwise easily access grocery stores? Will my commute be reasonable for my preferences? Is this area safe? Are the school districts acceptable? These are all questions renters are going to ask when looking for a quality place to live. You don’t necessarily need to provide all of these to have a rental that performs well, but they are certainly things to consider. 2. Parking The properties I own that have covered parking (garages mostly) are in very high demand. Covered parking is big in places like Florida, where it rains often (especially near salt water, which can be damaging to cars), Northern states with plenty of tough winter weather, and areas like Colorado where remnants of the last few hail storms are seen on a few cars throughout the Denver metro area. invest-garages 3. Private Spaces Things like a fenced-in yard go a long way, especially if you happen to be pet-friendly or if these tenants have young children. Many places also provide extra storage on site to assist with the moving process or to otherwise hold excess sports gear if the place doesn’t provide something like covered parking or garages. Relate: 4 Steps to Boost Your Bottom Line by Improving Tenant Retention 4. Unit Readiness No one wants to move into a project. The unit needs to be clean and in working condition. Sometimes things are overlooked during move-out and move-in inspections, though. The intent is to cut down on that so the tenant can be left to unpacking instead of scheduling additional visits. Making sure older HVAC units, electrical, plumbing and the like are properly maintained will fall into this category as well. 5. Unit Upgrades The nicer a property is, the more tenants you can attract. Stainless steel and energy-efficient appliances go a long way to giving a good first impression, and following local trends will help a great deal as well. Get rid of that dark green or maroon carpet. In many cases, there’s some really nice hard wood flooring under them anyway! If you have an old, tired bathroom, dress it up with a nice vanity, newer sink, and updated fixtures. These are minimal repairs that can dress up an entire room. When upgrades are done, figure out how much more you can charge as a result and how long it will take to make that money back. If it means you provide a higher quality product and hopefully receive a better tenant pool, why not go for it? 6. Included Appliances Everyone has their own preference. I heard a BiggerPockets Podcast episode once where the landlord rented each appliance for a certain price and otherwise had a very low base rent. I always choose to include a washer and dryer in the unit (or shared space for multifamilies) for many reasons. If I can find a unit with them already, great If the unit doesn’t have them, that’s one of the first orders of business. Related: The Top 10 Rental Features That Attract Cream of the Crop Tenants 7. A Great Renting Experience As landlords, we are providing a service. Make the effort to respond to maintenance requests promptly. Tenants are looking for peace of mind knowing that if a problem arises, the landlord (or management company) will respond in a timely manner. In fact, I advertise the service as much as the rental when promoting the place. I’ve lived in apartment complexes where I’m simply a number and where I’d be lucky to see a maintenance request filled within the month. I’ve also lived in a mom-and-pop-managed condo where their son answered all the maintenance requests the next day. In a lot of ways, tenants are interviewing you as much as you’re interviewing them. So, Why Do I Provide These Amenities? Easy. The more extra amenities you provide, the larger the amount of quality tenants you will likely attract. I would rather pay a bit more for a property and on the other side, charge a fee for amenities. Hopefully the worst case scenario is that I break even maintaining these appliances with the trade-off of fewer tenant-related headaches. For me, that’s worth it. Garage door needs fixing? Hopefully the extra $10/month in base rent over four years more than pays for that. Fence in the back yard coming loose? Same deal. Ideally in this system, you attract a larger pool of great renters to supplement an already fortified tenant application and approval process. At times, you’ll need to fix or maintain these extra amenities, but in my mind, I’m happy to trade maintenance requests for peace of mind.

FAA considering making Surf Air flight path over Bay official

The Federal Aviation Administration is considering making the route Surf Air has used to avoid homes on the Midpeninsula – by flying over the Bay – an official fair-weather route. But an organized group of residents from Sunnyvale has turned out in force against the route saying it transfers the noise to their neighborhood. On Wednesday, the FAA held what it called an informational meeting in San Jose as part of its consideration of whether to make what it calls the Bayside Visual Approach an official charted flight path. That would mean the route could only be used when pilots can actually see the airport, but could be flown using instruments, which many pilots consider safer to do even in visual conditions. The meeting was held in the Santa Clara County Government Center in San Jose starting at 6 p.m., and many of those attending complained about the location as being far and difficult to reach from the areas affected by Surf Air flights. Nonetheless, about 100 people showed up, the vast majority of them wearing bright orange T-shirts signifying they were part of the Save Our Sunny Skies group. That group, made up of mostly Sunnyvale and Cupertino residents, is protesting the route because it brings more planes into the already congested airspace over their homes. Officials had designed the meeting to include about 40 minutes of presentations from Surf Air, the FAA and the San Carlos Airport – which is owned and operated by San Mateo County – and then move out into the lobby, where people could ask questions of the officials. But dozens from the Save Our Sunny Skies group, including a leader with a megaphone, refused to go along and said they wouldn't leave until the officials were regrouped in the auditorium to answer questions from and to the group. Officials agreed to return to the auditorium, but only after most of the meeting attendees who were not part of the Save Our Sunny Skies group had left. The route was developed by Surf Air in cooperation with the FAA after Midpeninsula residents complained about the noisy Pilatus PC-12 turboprop planes the commuter airline uses. The FAA allowed Surf Air to use the Bayside Visual Approach for a six-month experimental period that ended in January. The route takes planes over the Bay – starting in Santa Clara County near Moffett Field – as they descend toward the San Carlos Airport. The FAA has evaluated the results of the trial, during which conditions allowed Surf Air pilots to use the route about 67 percent of the time, and is now doing an environmental review. Thann McLeod, a manager of airspace and procedures, planning and requirements for the FAA, told the group that her "primary responsibility in the FAA is safety." "If something is not going to work, it's not going to work for a reason, not because I'm favoring one community over another," she said. She may have been anticipating that if the FAA decides not to make the approach official, Midpeninsula residents will be angry; if it does approve it, the Sunnyvale and Cupertino residents will be angry. Because the air space in the Bay Area is so congested, the FAA had little choice in choosing the route, she said. "We run out of room very, very quickly," she said. "This was the best we could do." "We did put a lot of thought into this procedure when we designed it," she said. Surf Air and Encompass, the company that has taken over the operations part of the SurfAir business, say that they have been working to find another air route to the San Carlos Airport and have experimented with a route that comes in from the east over the Bay and avoids more residential areas. "We need a global solution," said Charlie Caviris, the Encompass chief pilot. The route from the east "is a way that we can greatly reduce noise for communities," he said. The FAA says comments will be taken on the Bayside approach until Oct. 27. Comments can be emailed to: 9-awp-sql-cvfp@faa.gov or mailed to: Noise Concerns, AJV-W25, FAA, 1601 Lind Ave. SW, Renton, WA 98057. Comments may also be made on the FAA website, which also includes a number of presentations from the meeting. After the six-month trial ended, Surf Air pilots continued to use the route while the FAA studied the results. Existing regulations allow pilots to fly non-charted routes under visual flight conditions, but they, not air traffic controllers, are responsible for maintaining separation from other aircraft and obstacles. Surf Air started using the San Carlos Airport in June 2013, and by July of this year had 228 flights a week arriving at or departing from San Carlos. Its customers pay a monthly fee for unlimited flights. --- Follow the Palo Alto Weekly/Palo Alto Online on Twitter @PaloAltoWeekly and Facebook for breaking news, local events, photos, videos and more.

33rd Annual Moonlight Run and Walk

Presented by the City of Palo Alto Friday, October 6, 2017 at the Palo Alto Baylands Start Times: 5K Walk @ 7:00 p.m. / 10K Run @ 8:15 p.m. / 5K Run @ 8:45 p.m.

4 Things Vets and Service Members Need to Know When Buying a Home

Oct 1, 2017 Updated 6 hrs ago 0 4 Things Vets and Service Members Need to Know When Buying a Home Specialized loan officers can help military customers make the most of earned benefits. (StatePoint) If you’re a veteran, reservist or active duty service member, it’s important to know that there are special benefits you may be eligible for when buying a home. “Veterans and service members have earned the opportunity to become homeowners, and it’s crucial that they are well-informed about the benefits and options available to them,” says Greg Murray, military mortgage program manager at Wells Fargo, who is also a U.S. Navy veteran. To help, Murray has identified the top four things to know when buying a home. • There are special financial education resources designed for military personnel and veterans. Take advantage of these free online resources so you can be a savvier home shopper. For example, Wells Fargo’s Hands on Banking for Military, which offers courses on topics like banking basics and smart spending, also contains a comprehensive guide on home-buying. • Before assuming you won’t qualify for a loan, talk to a lender. Be sure to tell the lender that you have served or are currently serving in the military. They can inform you about the options available to you, such as a Veteran’s Administration (VA) loan. A VA loan is a home loan guaranteed by the federal government, designed to help those who’ve served in the military obtain homeownership. They can sometimes be obtained with zero down payment. Gifts or grants can be used to help cover down payment and closing costs, subject to program requirements, and no mortgage insurance is required. • A large portion of qualified buyers aren’t taking advantage of the low-to-no-down-payment mortgage options available through VA loans. Indeed, more than 21 million veterans and service members live in the U.S., however, over the past five years, a mere 6 percent of them bought a home using a VA home loan, according to the Department of Veterans Affairs. This may be due to the common myth that active duty service members, National Guard members and reservists are not eligible for VA loans (in fact, they may be eligible). Many also are unaware that unmarried, surviving spouses of veterans who died as a result of service or service-related causes are also eligible. • Individual banks, not the Department of Veterans Affairs, offer VA loans, allowing you to work with a lender who understands your needs and makes you feel comfortable. “A specialized team member who understands unique military needs, such as a Wells Fargo Military Lending Specialist, can help you make the most of the home loan benefits you’ve earned,” says Murray. Developing a relationship with this lender is also a good idea, as you may later choose to refinance through the VA Interest Rate Reduction Refinance Loan (IRRRL) program. To learn more, visit wellsfargo.com/military. If homeownership seems daunting, remember that taking advantage of VA benefits can make it more financially and logistically viable.

New housing project aims to meet Redwood City’s needs

As early as next fall, ground at a downtown Redwood City site currently used as a parking lot could be broken to make way for 117 affordable apartments for seniors and a child care facility. Plans for an affordable senior housing development, ground-floor child care facility and publicly accessible creekside trail at 707 Bradford St. took one step further Monday as the City Council approved an agreement with affordable housing developer MidPen Housing. Nevada Merriman, MidPen’s director of housing development, said arriving at a development agreement with the city is one of several milestones ahead of the nonprofit as it moves forward with the planning process for the seven-story housing development next to a stretch of Redwood Creek. With experience providing affordable family and senior housing in several other Peninsula cities, including Redwood City, she said the nonprofit is well-positioned to fulfill the city’s goal to provide much-needed housing for seniors, a group she said comprises the fastest-growing population in San Mateo County. “The need for long-term housing for seniors is huge,” she said. Situated in Redwood City’s downtown, seniors living at the apartment building will have access to a variety of tailored health resources though they may not need them, said Merriman. She is hopeful that the nonprofit’s partnership with the county’s Health System and other health providers will make the housing development a platform for promoting wellness. MidPen is committed to renting the units to seniors who are 62 years old or older, with a few exceptions for special circumstances such as older adults raising a grandchild, said Merriman. The nonprofit, which won the city’s bid for the project in April 2016, will also rent at least 49 percent of the units at affordable rates to households whose income is less than 60 percent of the area median income, according to a staff report. By making space for an 8,000-square-foot child care facility in the building’s ground floor, the nonprofit is fulfilling another one of the goals city officials outlined in the bid, said Merriman. With families dropping off and picking up children for day care and downtown residents and visitors expected to use a publicly accessible path allowing access to the creek, the multi-use nature of the site could foster its own community, she said. “There are a lot of synergies there that will make for a healthy, thriving community,” she said. “The city’s really positioned the site really well to be able to take advantage of what they already have in place there.” Karen Haas-Foletta, executive director of Belmont-based Footsteps Child Care, said her nonprofit was chosen to provide child care at the site, which will provide much-needed space for a resource in high demand across the Peninsula. “There’s a huge need for [child care] facilities, and there’s an especially huge need for infant [care],” she said. She is planning to make space for 70 children from infant to preschool age in what would be her nonprofit’s 10th location and fourth preschool. Now 23 years old, Footsteps Child Care provides day care for children ranging from infants to middle school students in locations in Belmont and Redwood City. Haas-Foletta said the intergenerational nature of the building will allow for unique learning opportunities for students as well as staff and volunteer opportunities for interested and qualified seniors. “Our goal is not just to have a senior come and read a story, but to be really part of the program,” she said. Haas-Foletta has experience working with MidPen in Redwood City, providing child care for some 24 children at the nonprofit’s City Center Plaza complex offering affordable housing for families with ground-floor retail. She said she is looking forward to working with a child care environment specialist to design the space at 707 Bradford St., but said the region still has a long way to go to meet the need for child care. “It’s good news, but it’s not going to solve the problem,” she said. Vice Mayor Ian Bain expressed enthusiasm for MidPen’s efforts to meet several critical needs for the city, and said he hoped the city would have the opportunity to review other creative solutions providing affordable housing in the future. He said when the city designated the parcels between Jefferson Avenue and Main Street for affordable housing and child care years ago, officials had considered how space that opens up in the future could be designated for several other groups, such as veterans, families and nonprofits. “I anticipate we’ll be doing more projects like this,” he said. Merriman commended the city for having the foresight to address several critical needs and for the contribution of the land, which MidPen is expected to purchase from the city for $1, according to a staff report. In addition to leveraging federal low-income housing tax credits, Merriman said MidPen has secured funds for the housing development from the county through Measure A, a half-cent sales tax voters extended through Measure K in November, and that the nonprofit hopes to stay competitive for Measure K funds to fund the project. Merriman said the nonprofit has submitted project plans to the city and hopes they will be reviewed by the Planning Commission before the end of the year. She said MidPen is working toward breaking ground on the housing development in November of 2018 to be able to address the need for affordable housing as quickly as possible. “It’s a hot topic in the Bay Area,” she said. “We’re very proud to be able to help make a difference.” anna@smdailyjournal.com (650) 344-5200 ext. 102