Buying a Home in Need of Repair with an FHA Section 203(k) Loan

Posted by on Sep 22, 2016 in Uncategorized | Comments Off on Buying a Home in Need of Repair with an FHA Section 203(k) Loan

Some houses listed for sale are not in top condition because of one or more needed repairs. These homes may linger unsold as prospective buyers perceive the repair issue as a major hurdle. Prospective home buyers can broaden their home search by including homes in need of repair that qualify for an FHA section 203(k) mortgage. An FHA section 203(k) mortgage differs from a regular FHA section 203(b) mortgage in that an allowance is made for the cost of needed repairs. A home needing rehabilitation is likely to sell at a discount. Up to $35,000 of the amount borrowed through a 203(k) loan can be used for the needed repairs. The minimum amount of repair costs that may be included in a section 203(k) mortgage is $5,000. Needed improvements There are several different types of repairs that can be financed along with the purchase price of a home. Some typical rehabilitation costs that can be included in a section 203(k) mortgage include the following: Roof replacement Major plumbing repairs Floor replacement or repairs Improving access for a disabled occupant Contractor escrow A contractor is usually required to perform the needed repairs. FHA guidelines require that the repair work must commence within 30 days after the loan agreement is executed. The rehabilitation must be completed with six months of the loan date, unless your agreement calls for a shorter timetable. The repairs must be examined by an inspector approved by the FHA. Funds are then released from escrow after the repair work is inspected. FHA guarantee limits As with a regular FHA mortgage, the FHA does not actually provide the funding for a section 203(k) loan. The FHA guarantees the loan, which is made by a private lender. However, most mortgages are in compliance with FHA guidelines so that they remain readily marketable. Each county has a maximum valuation amount that the FHA will guarantee. When determining if a property meets FHA limitations for a 203(k) loan, the value of the home is considered to be the lesser of the following amounts. The cost of repairs plus the value of the home before repairs 110 percent of the appraised value after completion of repairs The use of a section 203(k) mortgage is not limited to home purchases. You may also use a section 203(k) loan to refinance your current mortgage and pay for needed repairs or improvements. Look into home loans with Best Rates Mortgage, LLC or another company that works with mortgages for more information about FHA-guaranteed...

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2 Things You Should Know Before Investing In Real Estate

Posted by on Jul 5, 2016 in Uncategorized | Comments Off on 2 Things You Should Know Before Investing In Real Estate

Would you like to invest in real estate and become a landlord in the near future so you can begin earning a passive income? If so, you may not know how to get started, especially if you have never invested in real estate before. If you take the right steps and do not rush into the process, you can have success as a real estate investor. 1. Choose the Property Wisely If you are going to invest in a property that you plan on renting out to tenants over the years, it is important to choose the place wisely. You should consider several different factors before you spend money on the home. Some of those factors to consider include the following: How close is the property to local shopping centers, libraries and schools? How many rooms are inside of the home? Does the home have a spacious backyard or front porch? What is the neighborhood like? Is there a lot of crime going on in the area? If you spend money on a dilapidated building in a bad area with a high crime rate, you could end up spending more than you originally wanted to fix it up, and you may still have a hard time renting it out to someone. If no one wants to rent it out, you are not making a return on your investment, and that is the reason you need to take your time selecting a good property. 2. Consider Applying for a Hard Money Loan If you manage to find a great home in a beautiful neighborhood, you may want to immediately buy it. However, the cost of the property may be slightly higher than the maximum amount you can spend based on your budget. Instead of letting it slip away from you and go to someone else who has the money to pay for it right away, you can apply for a hard money loan. It is often easier to complete the application process and receive an approval for a hard money loan from a private lender than it is to get approved for a bank loan. It can take several months for a bank to approve the loan you need to make your real estate investment, but you may not have the extra time to wait around for an answer. The hard money lenders offer an alternative option that allows you to get the money you need for the property at a quicker pace. Although the terms and conditions for these kinds of loans will vary, you may have anywhere from one year to about five years to pay the money back. If you want to take on the job as a landlord in the near future, you will need to find the right property to invest in. Take your time looking at different homes on the market instead of choosing the first one you can find. Even if it does cost a bit more than you can afford, there is always the option of applying for a hard money...

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Want To Buy A Home But Worried About Your Credit? What To Know

Posted by on Jun 3, 2016 in Uncategorized | Comments Off on Want To Buy A Home But Worried About Your Credit? What To Know

If you have decided you want to take out a home loan and you aren’t sure if your finances are in a good enough state to purchase a house, there are a few things you’ll want to look into. It can be difficult to get a mortgage if you haven’t been financially responsible in the past and if you aren’t good at making payments on time. Your credit score is going to have a big impact on whether or not you can get approved for a home loan, but some other factors will apply as well. Here are a few financial things to look at. Debt to Income Ratio Your debt to income ratio can be more important than your credit score when it comes to getting approved for a mortgage. This is the total amount of debts you have added together, in comparison to the amount that you bring in annually. If you are looking to get approved, you may want to pay down the balances on your auto loan, credit cards, or other debts that you have. Longest Standing Accounts Mortgage lenders like to see that you have long lending history with a specific company, or that you have been able to keep an account open for months or years. If you don’t have anything on your credit report that shows you’re trustworthy in the long term, you may want to find a company that you have had an account with for years that doesn’t report to the credit bureaus, and have them write a letter about your account. Money Saved It’s ideal to show the bank that you have 2 months of mortgages or more in a savings account, so you aren’t going to default when you have to pay the loan monthly. If you can show that you have more than that, and that the likelihood of a default is minimal, it can improve your chances even if your credit score isn’t the best. There are some lenders that will give mortgages to people who don’t have the highest credit scores; you’ll just have to expect to pay a higher interest rate. If you are interested in investing your money in real estate and you want to purchase a home, don’t let your less than perfect credit score hold you back. Instead, look at these different factors and use them to your advantage to get the lender to award you the mortgage.  For more information, contact a company like Financial One...

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3 Reasons To Hire A Mortgage Broker

Posted by on May 2, 2016 in Uncategorized | Comments Off on 3 Reasons To Hire A Mortgage Broker

One of the most important parts of buying a new home is making sure that you get the best possible interest rate and loan, mostly because you do not want to end up paying more for your home than you have to. However, it can often be quite difficult to find the right loan due to the sheer number of available lenders, but a mortgage broker can help make the entire process much simpler. Listed below are three reasons to hire a mortgage broker. Avoid Wasting Time One of the most important ways that a mortgage broker can help you is by not wasting your time. This is going to be accomplished by a mortgage broker discussing your finances and loan requirements when you first hire him or her. Once that information is provided, the mortgage broker can then begin looking for a loan that you qualify for and that meets your requirements. The only time that the mortgage broker will show you offers that do not meet your exact requirements is if no loan offers perfectly match your criteria. In that situation, the mortgage broker will show you those offers that come as close as possible to your requirements.  Access To Many Lenders One of the best parts about hiring a mortgage broker is that he or she can help you make contact with many lenders that you may overlook normally. The reason for this is that the mortgage broker will be able to send your application and shop for loans with lenders that may not exist in your area or that you may not even know offer home loans. In this way, the lender will greatly increase your chances of finding a decent interest rate and loan. Avoid Unrealistic Expectations Finally, a mortgage broker can discuss your expectations for a home loan and interest rate and explain why those expectations may be unrealistic. This can greatly reduce the chances that you will be disappointed with the available loan offers due to having unrealistic expectations of how much you may be approved for or the interest rate that you qualify for.  Contact a mortgage broker today in order to discuss how he or she can help you find the best loan and interest rate for you. A mortgage broker can help you avoid wasting time and being disappointed by having unrealistic expectations while also providing you with access to a very large number of lenders. Contact a company like Premium Mortgage Corp for more...

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3 Things You Need To Know About Home Equity Loans

Posted by on Mar 17, 2016 in Uncategorized | Comments Off on 3 Things You Need To Know About Home Equity Loans

If you own your home, you might be considering getting a home equity loan. A home equity loan is a great way to free up some cash and use the equity in your home for other things you might need. However, home equity loans are not always advisable, there are some situations where you should avoid getting a home equity loan. Here are some things you need to know about home equity. 1. Don’t Use A Home Equity Loan For Luxury Purchases As a general rule you should only use your home equity when you have something that needs to be covered, not a luxury or a want. For instance, you shouldn’t take out the loan to pay for cars, expensive furniture, or other unnecessary things. Instead, a home equity loan should be used to make improvements or even remodel the home to increase its value. If the money used from the loan doesn’t serve to improve the property value, or if the items that you are purchasing will quickly depreciate, don’t do it. Only use the equity in your home on things that will improve your overall value. 2. Consider Using Home Equity For Retirement For many homeowners, their house is their largest asset. In fact, if they don’t have a retirement fund, the house may be the best way to get the money that they need for retirement. However, you don’t have to sell the home to get the money you need, you can take out a home equity loan to cover expenses. There are programs with some lenders if you are over a certain age where you can get a reverse mortgage that allows you to use the equity in your home to live off of. 3. Don’t Use Equity If You Are Planning on Selling In The Immediate Future Home equity loans should only be taken out if you are planning on staying in the house for a long period of time. In order to really get your money’s worth out of the home equity loan you need to be in the house long enough to make it worth the investment. If you expect to sell the house soon, you shouldn’t take out a home equity loan, even if it is to remodel. Let the new buyer remodel the home, you should keep your equity if you are selling. These are just a couple things you need to know about home equity. Contact a local bank, like MCS Bank, for more...

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Securing A Business Loan: Facts About Collateral

Posted by on Feb 4, 2016 in Uncategorized | Comments Off on Securing A Business Loan: Facts About Collateral

All companies need working capital in order to perform their business, and a business loan can be a great way to obtain some money upfront so you can get things moving in the right direction. Many lenders require businesses to provide collateral in order to secure the loan. The purpose of collateral is to give banks some kind of assurance that the business will not default, and if they do, the bank may use the collateral to repay the balance. Here is what you need to know about using collateral for a business loan. What Can Be Used As Collateral? In many cases, business owners will need to provide their own homes as collateral for a business loan. Offering your home gives banks the assurance that they can recoup their losses by selling your home if you don’t pay up. While this option is very risky for the owner, it is often the only option they have to secure the loan. As long as you’re making monthly payments on the loan, this should not be too much of a concern. Other options for collateral can include your current company’s inventory and accounts receivables. The lender may seize these assets in the event of default. Make sure you give the bank accurate information about what kind of collateral you have to offer. What Happens If You Do Not Pay? If something happens to your business and you’re unable to repay the loan, the lender may seize your assets in order to recoup any financial losses they’ve incurred. If you have put your office building up as collateral, for example, the bank can declare that property theirs. This also goes for any equipment you may have put up like company vehicles, computer equipment, or other assets. This is why it is so important to repay a collateral-based loan. You stand to lose a lot of merchandise, property, or other important assets if you fail to make payments. What Are Some Alternatives To Collateral? Some lenders will provide companies with loans that don’t require the use of collateral. The Small Business Administration has a wealth of resources for companies including other loan options. Another alternative you can try is to obtain a peer-to-peer loan. These types of loans require investors who will help contribute to the total amount of money you need to borrow. The investors set the interest rate that you must repay the loan in order for them to make a profit. Most peer-to-peer lending services do not use collateral, so it’s a good option to look into if you’re not too keen on collateral-based business loans....

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Teens And Finances – Start The Lessons Now

Posted by on Jan 22, 2016 in Uncategorized | Comments Off on Teens And Finances – Start The Lessons Now

It’s never too soon to teach your teens about finances. Teaching your teens to be money savvy when they are young can help them grow to be mature, responsible young adults that are wise about how they make their financial decisions. So what do you need to teach your teens and how do you do it? Below, you will find some information that will help you teach your teen. Online Banking Helping your teen open their own savings account online is a great first step. Some financial institutions offer special savings accounts for teenagers that provides them with better incentives, like higher interest rates, than traditional savings accounts. Having the account online will allow you and your teen to monitor the money going in, going out and the interest that is being paid on the sum of money in the account. This savings account can help your teen acquire a line of credit when the time comes to buy a car or head off to college. Checking Accounts Checking accounts are difficult to maintain even for many adults. Maintaining a positive balance and not bouncing the account requires careful monitoring and calculations. Having an online checking account can help reduce the chances of bouncing the account. The online account gives you and your teen the ability to monitor transactions as they happen and track checks that are out waiting to be processed. This makes it much easier to know if there is enough funds in the account to cover the outstanding checks to prevent the overdraft fees. Set a Budget Help your teen calculate how much they have coming in each month and how much they have going out. Work with your teen to create a budget that will help them stay within the bounds of their income limits and to set some aside for a savings account. Learning to save now will help continue the process of saving when they are out on their own and preparing to invest in a home for their future family. Credit Awareness Credit cards are fairly easy to get these days. Make sure that your teen understands how credit cards work and how the offers that the credit card companies send out work. Yes, establishing credit for the future is very important, but make sure that your teen understands the consequences of opening lines of credit and making purchases with those credit cards. Take some time to look into the different online checking and savings account options. Then, work with your teen to come up with a good plan to begin developing financial security and responsibility for the future. For an online banking account, contact a financial institution such as TruePartner Credit...

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3 Key Pieces Of Information You Need To Get A Payday Loan

Posted by on Dec 31, 2015 in Uncategorized | Comments Off on 3 Key Pieces Of Information You Need To Get A Payday Loan

Today, many individuals find themselves living paycheck to paycheck. They struggle to make ends meet, yet somehow manage to get it done. In the event something was to happen, you don’t have to worry about not being able to pay for it. Thanks to a payday loan, you can get the cash you need in no time at all. Whether you need money for car repairs, furnace repairs, or a new stove, you can get whatever you need with your new payday loan. To help move the process along quickly, here are three key pieces of information you need to take with you when applying for the loan. Proof of Income While this might seem obvious, many people overlook what counts as proof of income. For individuals who are self-employed, a bank statement showing the past couple months of deposits often works fine. Payment stubs from client payments tends to work well also. If you are paid by regular paycheck from an employer, take in at least one month’s worth of income with you as proof of your earnings. References Payday loan companies also need a couple references from you. This means names, addresses, and phone numbers. This is for their protection in the event you don’t pay the loan off like you should. They will always try to contact you first and foremost. However, this gives them an alternative way to contact you when you don’t return their calls or if your phone number changed. Proof of Residency Proof of residency is more than just a simple drivers’ license. You need to bring in a copy of a utility bill from your gas or electric company. Phone or Internet bills aren’t typically accepted as viable proof. Make sure to discuss what you can use as proof with the payday lender. By taking these three things with you, the representative will be able to get you the loan monies you need in no time at all. Instead of sitting around and trying to figure out what you are going to do to get the job done, you can turn to a payday loan company to take care of it for you. Depending on your state, the maximum amount will vary. Best of all, you don’t have to worry about paying the funds back until your next payday. Some lenders are even willing to give extensions beyond that, so make sure to ask beforehand in case you do need a little extra...

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Three Types of Payday Loan Scams to Avoid

Posted by on Dec 18, 2015 in Uncategorized | Comments Off on Three Types of Payday Loan Scams to Avoid

Preying on people who are in need of payday loans is a very low form of scam, but it’s also disturbingly common. It’s important to educate yourself about the types of scams you may be exposing yourself to so that you can avoid them when you get your payday loan. Here are three types of scams that you may encounter when you’re seeking a payday loan. 1. Telephone scams These scammers may get into your confidence and then get personal information from you. A common form of this scam type is when the scammer will call you on the phone claiming to represent a payday loan company and, on this false pretense, convince you to give out your information to them. They can then use your information against you, blackmailing you into paying them money. Another approach is to first obtain your information some other way and use it to convince you that they’re a legitimate debt collection agency, thus persuading or intimidating you into sending your money to them.  2. Identity Theft Of course it’s important to give out identifying information to anyone who’s lending you money, otherwise they’d have no guarantee that they’d be able to get their money back or even find you again. However, some scams take advantage of this by pretending to be a payday loan company just in order to get personal information from you so they can then impersonate you. This form of identity theft is especially likely if you’re using an online payday loan company. Online information can often be hacked from databases, and these types of companies are frequent targets of such hacking. 3. Fake fees A disreputable company or scam impersonating a payday loan company can pretend to offer you a loan and then trick you into paying them instead. They may do this by telling you that you need to send them “insurance” money and then keep charging you unnecessary fees until you’ve paid them more than the original amount of the loan (which of course you’ll probably never receive in the first place).   After reading about these three payday loan scams, you’ll be better equipped to resist any attempts to scam you. However, these types of scams are just some of the ways you can lose money on a payday loan. Make sure you do plenty of research on not only the payday loan company you select, but also on typical payday loan fees and interest, so you’re ready to get the best deal on your loan. For any loan, be sure to visit reputable establishments, such as Weyco Community Credit Union, to ensure your financial...

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Tips For Making A Smart Decision About Cash Advances

Posted by on Nov 12, 2015 in Uncategorized | Comments Off on Tips For Making A Smart Decision About Cash Advances

Cash advances are helpful for people who need to make sure that they have a larger sum of money than normal before their paycheck. This money could be to pay the co-payment for a hospital bill, for auto repair expenses, or for any other emergency where you need to have cash available. However, cash advances are not always the right decision for your personal financial situation. Here are some questions that you should ask yourself in order to determine if you should get a cash advance or seek another method of payment. 1. Does the Business Require Cash? The first thing that you want to look at is if the business requires cash. If they do, then you are going to have to get a cash advance. If they don’t, then you have a few options. You can either choose to use a credit card to pay for whatever you need, or you can use a cash advance. To determine if you should use your credit card or get a cash advance, you are going to need to look at their respective interest rates. If the interest rate for your credit card is lower than that of the cash advance, then you should use your credit card because you’ll end up paying less money overall. If the cash advance has a lower interest rate, go for the cash advance. 2. Can You Pay the Entire Loan Off Immediately? Cash advances are essentially mini, short-term loans. However, sometimes cash advances have higher rates if you don’t pay them off immediately. As a result, it’s best to get a cash advance if you can pay off the entire loan in less than a month in order to prevent higher interest rates from kicking in. If you’re not sure that you’re going to be able to pay the entire loan off immediately when you’re paid, then you might want to consider other financial options such as asking friends for a short-term loan or trying to open up a second credit card to pay the expenses. 3. Will the Item You Purchase Make or Break Your Career? Finally, if the item you purchase is absolutely necessary for you to do your job, such as a new car battery, then go with the cash advance, no questions asked. If the item is a luxury item and you just want to get it when it comes out, rather that wait until payday, you might be better off financially if you wait. For more information, talk to a company that specializes in cash advances, like The Money...

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