Mortgage Loans-Housing Loans for People with Bad Credit

Mortgage Loans-Housing Loans for People with Bad Credit

Prior to the sub-prime crisis, bad credit was not a deterrent to availing home loans. Lenders were more than willing to provide non-conforming loans, zero-down mortgages and piggy back loans to sub-prime borrowers, despite the fact that Freddie Mac (Federal Home Loan Mortgage Corporation) and Fannie Mae (Federal National Mortgage Association) did not securitize non-conforming home mortgages. Mortgage lenders believed that since home prices followed an upward trend, sub-prime borrowers could either opt for mortgage refinancing or sell-off their home and eventually repay the borrowed sum. Hence, seller financing was also popular. A 90 percent increase in home prices from early 2000 to mid-2006, helped maintain the status quo. However, a correction was in order since unsurpassed increases in home prices could not be sustained indefinitely. The fall in home prices coupled with an increase in interest rates resulted in a number of people defaulting on mortgages. Foreclosures and short sales became rampant as a result of default. Today, home prices are believed to have settled down at the 2003 price level. In September 2008, Fannie Mae and Freddie Mac were placed under conservatorship, the lending rules were revamped and housing loans for people with bad credit were all but outed.

Housing Loans for People with Bad Credit

Today, people with bad credit cannot hope to avail conforming mortgages since these have stringent credit requirements. Moreover, a down payment to the tune of 25 percent of the amount of the loan has also become mandatory. Thankfully, FHA (Federal Housing Administration) insured loans and VA (Department of Veterans Affairs) insured loans are still available to people with less than perfect credit.

FHA Insured Loans

FHA insured loans are ideal for people who are unable to qualify for private mortgage insurance (PMI) and cannot make the requisite down payment for availing a mortgage. Applicants with credit scores between 580 and 620 stand a good chance of getting approved for these loans. People, with bankruptcies and foreclosures on their record, may qualify for these loans provided:

At least 3 years have elapsed since the borrower's primary residence was foreclosed.

The aspiring homeowner has made on-time payments on all accounts for 12 and 24 consecutive months from the date of filing Chapter 13 and Chapter 7 bankruptcy respectively.

He/she has a reasonable debt-income ratio and credit scores in the aforementioned range.

The borrower is able and willing to put down 3.5 percent of the worth of the home as down-payment

The first-time home buyer tax credit of $8000 has also been extended to April 2010. A first time home buyer can monetize this tax credit by applying the anticipated credit for procuring loans from Housing Finance Agencies (HFAs) and other government entities and using the same to satisfy the 3.5 percent down payment on FHA insured loans. These funds can also be used towards closing costs.

FHA also provides housing loans for teachers employed in public schools and gives them the facility of buying HUD (US Housing and Administrative Dept.) acquired homes, at 50 percent of the appraised value. In fact, eligible public school teachers are only required to dispense with $100 as down payment.

Housing loans for college students are also provided by the FHA, regardless of the student's credit history, assets or job history, provided the student has a co-signer who is a blood relative. Although these kiddie condo loans require a down payment of just 2.25 percent, the credit rating, income and assets of the co-signer do matter.

Homeownership Voucher Program

Public housing agencies (PHAs) receive Federal aid from HUD and provide homeownership vouchers to eligible low income families, interested in buying a home by availing housing loans. For single mothers who are interested in buying a home, this program is a boon since it can help them meet their monthly mortgage payments and other homeownership expenses. One needs to contact participating mortgage lenders, providing housing loan for bad credit, for further details in this regard.

VA Insured Loans

These loans are made available to eligible veterans, based on the number of days of active duty and other service requirements. The waiting period for availing a mortgage loan, after a foreclosure or a Chapter 7 bankruptcy, is 2 years. In case of a Chapter 13 bankruptcy, the waiting period is 1 year from the date of filing bankruptcy and assuming regular on-time payments on all accounts during the waiting period. In case of VA insured mortgages, the applicant is not required to make a down payment on the loan. No premiums for private mortgage insurance and just a 2 percent funding fee, make these home loans a wonderful option for eligible veterans. Some of the aforementioned requirements may be waived in the case of housing loans for disabled veterans.

Housing loans for people with bad credit are still available although the requirements have been modified to ensure that only people with genuine problems have access to these loans. Thus, one should not underestimate the importance of working towards building credit scores and a good credit history.

Visit to:http://mortloans.blogspot.com/

Source:http://www.buzzle.com/articles/housing-loans-for-people-with-bad-credit.html

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Low Credit Score Loans

Low Credit Score Loans

Though it has been a long time since the sub-prime crisis, people are still reeling under its after-effects. People who are in dire straits and need a loan desperately have a ray of hope as they can still avail low credit score loans. These are specially designed for people with low credit score. There are several companies which let people avail these loans by putting collateral up against them. These can be taken by anyone who has a bad credit history.

Today, lenders have realized the fact that not everyone applying for a loan will have a fabulous score. People used to have a bad score in the past as well, but, due to recession, many people were left unemployed, which in turn made it difficult for them to pay off their existing loans. This impacted their credit score and there are a lot of people who haven't recovered yet.

The best way to apply for these loans is through online websites of different financial companies. Most people prefer this way of applying for a loan, as it helps you to compare the interest rates of various companies. Depending upon your credit score, you may be eligible for a secured or an unsecured loan. These loans usually come with high interest rates. In a secured loan, the lenders will ask for some guarantee such as real estate, mortgage, jewelry, etc. In case you fail to pay the monthly installments, the lender can claim these things. In an unsecured loan, the lender may not ask for a collateral but will charge you heavy interest rates. If you have a bad score, you can also apply for restricted credit cards, but you need to extra careful about, because as we mentioned earlier, they all fall in the category of high risk loans.

Home Loans

Try to put a higher down payment. Because of the credit history, lenders will always be looking at higher security. If you put forward a higher down payment, you will enhance your chances of getting the loan approved and this will also help in curtailing the duration. Even if you have to wait a few more months to save for a higher down payment, it will certainly be beneficial to you as you will be getting the loan at lower interest rates.

Having a bad credit also means that the lender will be putting other things such as the time you have spent with your employers, your monthly income, etc., under greater scrutiny. So, if you have joined your current organization recently, hold on for a year or two before applying for a home loan.

Make sure that you pay your all of your bills on time so that there is a continuous improvement in your score. Lenders also check your current track record, so it becomes important to plan out your liabilities.

Student Loans

Students are generally looked upon as a high-risk group as far as lenders are concerned. Reasons are plenty, the most obvious being that they are not working professionals. While lending to a working professional, a lender at least has an assurance that the person can devote all his time and energy in earning money, but in case of students a bad credit history, even this factor is ruled out as students mostly work part-time and the money that they get does not suffice to pay off the loans. In this scenario, most of the lenders ask for a cosigner - a person with a stable source of income who will share the responsibility of paying off the debt in case the student is unable to do so. Parents or grandparents are preferred as the documentation becomes a lot easier. This way students can secure a loan. But, students are always advised to avoid taking these loans and apply for federal government loans or scholarships.

One has to make sure that one is using these loans in the best possible manner so that one comes out of this financial quandary. One of the highest risks is that if one does not plan out the debt payment, the credit score takes a further hit and the person falls in a vicious financial cycle. While the thoughts of getting a low credit score loan looks exciting, one should think about all the pros and cons before applying for one.

Visit to: http://mortloans.blogspot.com/

Source: http://www.buzzle.com/articles/low-credit-score-loans.html

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MINORITY BUSINESS GRANTS

MINORITY BUSINESS GRANTS

Minority grants help small businesses find funds and capital to compete in the business world, create jobs, develop and research new technologies and services, purchase equipment, pay rent, salaries and other start-up and expansion costs. Minority businesses play a large role in job training and creative new jobs. That is why the United States government promotes minority businesses by providing grant monies. There are minority business grants for women, Hispanic Americans, African Americans, Native Americans and disabled persons for all types of business.

The U.S. Department of Commerce is one of the largest government agencies that are in charge of minority business grants. There is a lot of competition for business grants for minorities because the money does not have to be paid like loans. You will need to provide certain information about yourself and your business such as you education, age, type of business, nationality, your driver's license, social security number, business plan and financial information. There are certain requirements and criteria that you must meet in order to receive business grants for minorities. States and municipalities also provide business grants to minority business owners and so do private organizations and corporations.

Areas Of Funding

Funders give funds for minority businesses for the following areas:

Business start-ups and expansion

Real Estate

Historical building preservation

Energy savings

Medical research

National security

Education

Inventions

Environment protection and green technology and building

Women Business Grants

Women who are looking for business grants can check the government's grants.gov website as well as the Women Business Centers WBC throughout the nation. Women play a large role in the ownership of businesses. Statistics show that more businesses are started by women, and that women do a better job running businesses. The government encourages women to start new business that promote research and development of new technologies and create more jobs.

Small Business Administration

The U.S. Small Business Administration provides resources for minority business owners as well as small business loans for minority owned businesses to get started, for research, development, job training and technology. The SBA also awards government contracts to many minority owned businesses. For more information about grants and loans, you should visit the Small Business Administration's website.

Minority grants for minority business owners are very popular, and there is always a lot of competition for these free grants that do no have to be repaid. It's recommended that you apply to multiple sources as there is no limit on the amount of grants you can apply for. Check your state and local government websites for opportunities as well as the grants.gov federal government grant website. Be sure to follow all the guidelines carefully and submit the required documents to insure your chances of being awarded grant money for your minority business.

Visit to: http://mortloans.blogspot.com/

Source: http://www.allamericangrantguide.com/minority-business-grants.php

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Fixed Rate Mortgage Vs. Adjustable Rate Mortgage

Fixed Rate Mortgage Vs. Adjustable Rate Mortgage

Mortgages are loans given by financial institutions or banking firms, after retaining some private property of an individual as a collateral with them. Fixed rate mortgage and Adjustable rate mortgage are the two most prominent types of mortgages. The mortgages offered in the market are varieties within these two types.

The major difference between a Fixed Rate Mortgage and an Adjustable Rate Mortgage is its interest rate. The rate of interest in a Fixed Rate Mortgage is fixed for the entire repayment term and the rate of interest on an Adjustable Rate Mortgage is fixed for a small period and is then fluctuating depending on the current credit rates in the market.

Fixed Rate Mortgage

The rate of interest charged in Fixed-Rate mortgage is constant throughout the loan period and also the amount you pay every month is fixed. This amount consists of the rate of interest and the principal amount. The amount you contribute for the rate of interest payment changes every month and so does the principal amount. These loans are normally allocated for 30, 20, 15 years.

Advantages

1. The amount to be paid every month is fixed. This helps the debtor to plan his expenses and budgeting.

2. Fixed rate mortgages also protects the debtor against the fluctuation in the interest rates as the rate of interest is constant throughout the repayment period.

Disadvantages

1. If the rate of interest goes down in the future; you still end up paying a higher rate of interest.

2. The monthly paid amounts are usually high.

3. The rate of interest charged are usually high as, you are paying a price to protect yourself against the future hike in the rate of interest for over a period of 15-30 years.

Adjustable Rate Mortgage

In case of adjustable-rate mortgages, the rate of interest on the loan changes over a period of time. The rate of interest charged in the initial period is fixed and then the rate increases with time. The period in which the rate of interest remains constant is fixed; but the period in which one can pay a fixed rate of interest varies from institutions to institution. The repayment amounts you'd pay every month would be different. The rate of interest on adjustable rate mortgage is based on the index rate or the prime lending rate. The fixed rate mortgage period lies between 10 months to 10 years and the loan period can go up to 30 years.

The most commonly used indexes in the US are:

1. Cost of Funds Index

2. London Interbank Offered Rate

3. 12 Month Treasury Index

4. Bank Bill Swap Rate

5. National Average Contract Mortgage Rate

6. Constant Maturity Treasury

There are three ways of applying the index to the rate of interest.

1. Directly

Under this way of determining the rate of interest, the interest rate changes as per the changes in the index. Normally, the contract rate index is applied directly.

2. On a Rate + Margin

In this case, the rate of interest will be specified as index plus a margin.

For example: The rate of interest would be specified as MTA (Month Treasury Average Index) + 1%. This 1% is the margin.

3. Indexed Movement

In this way of applying index rate, a rate on the mortgage is fixed and is then adjustable depending on the movement of the index. Here the rate of interest is not tied to the index but the adjustments in the index are.

Advantages

1. One main advantage in considering the Adjustable Rate mortgage would be benefiting from the lowering rate of interest.

2. Another advantage is that, the initial rate of interest is usually lowered by the bank; considering the risk you are taking, if the rate of interest increases in the future.

Disadvantages

1. A major disadvantage is that, if the rate of interest increases in the future, you end up paying a higher rate of interest.

2. You are not protected from the fluctuations in the credit market as your rate of interest change accordingly.

Which Loan Should You Opt For?

You can Opt for an Adjustable Rate Mortgage if...

1. You are willing to take the risk of increase in the rate of interest.

2. You are looking at the lower rate of interest charged in the initial period of the loan.

3. If you are okay with the changing annual payments.

4. If you do not qualify for higher rate loan programs, then this could be a good option.

You can Opt for a Fixed Rate Mortgage if...

1. You are willing to protect yourself against the increase in the rate of interest in future.

2. If you are looking at a fixed repayment amount and period.

Before opting for an Adjustable rate mortgage or a fixed rate mortgage you will need to thoroughly asses the following factors.

1. Amount and period of the loan

2. Current economic conditions

3. Future economic changes

4. How much are you willing to pay each month?

5. Are you looking at stability in terms of payments or are you looking at benefiting from the changes in the market conditions?

Ask your self the above mentioned points and calculate the opportunity cost of buying a Fixed Rate Mortgage or Adjustable Rate Mortgage and also compare the mortgage companies you are planning to buy your mortgage from. All this would help you in making the correct choice.

Visit to: http://mortloans.blogspot.com/

Source:http://www.buzzle.com/articles/fixed-rate-mortgage-vs-adjusted-rate-mortgage.html

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Facts About South Africa's Largest Non-Bank Mortgage Lender

Facts About South Africa's Largest Non-Bank Mortgage Lender

SA home loans was launched in South Africa in February 1999 and has grown up to become today's date specialist mortgage provider. They provide South African applicants with affordable rates and flexible mortgage options. It is famous for its affordable and competitive interest rates and fair service fee. When they started they offered interest rates at 19.6% which was pretty low as compared to the established banks at that time. They were the first mortgage provider to offer rates below 10% in over 22 years. They won the Daily News Readers' choice award for the best mortgage lender in year 2004 and 2005

Features:-

Flexible and low easy repayment options

Provides Home Owners Cover and Bond Protection Cover

Safe and secure banking service

Customer friendly client services helpdesk

They provide a wide range of option.

Variable

Super-Lo

Interest Only

Varifix

Quick Cash

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Rapid Re-Advance

Further Re-Advance

They now have 22 branches countrywide and its head office is in Durban. They apply a non-banking approach by directly linking the customer to the money markets and passing the savings on to them. This is also called securitization, and is widely accepted means of funding.

With their Bond Protection Plan, you and your family are protected against possibility of repossession in case of any unanticipated circumstances like disability or death. You can cap your interest rate against rising interest rates. You can also borrow money against the increased value of your property i.e you can borrow against loan.You can easily get up to R75,000 cash within 72 hours. With their Varifix you can fix the interest rate on your home loan and choose the portion of your home loan to fix.

There are lot of innovative packages offered by them. It is worth a try as they are South Africa's largest non-bank mortgage lender.

Visit to: http://mortloans.blogspot.com/

Source: http://ezinearticles.com/?Few-Facts-About-South-Africas-Largest-Non-Bank-Mortgage-Lender&id=5879653

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Free Government Grant Money Available are here! Free grant money programs for business and personal needs, find out how to apply for free grants today!This is just a small & sample type of grants for woman are available. Consult the resource box at the end of this article for more information.

1.Women And Government Grants

Studies have shown that up to seventy five percent of women small business owners tend to be successful. Add that to the fact that as a group when applying for government grants women have the biggest advantage. In fact specifically earmarked for women are several business grant types. Small business grant funding does come with some limitations that haven't been discussed here. For a lot more information on this and grants in whole see the resource box. Just remember you may have to go in front of a foundation or a governing council's grant board to get your funding. Small price to pay for your self employment isn't it? When are you going to get started?


2.Choose a Business Loan Or Business Grant?

Did you know that grant programs don't mandate co-signers, security deposits, collateral or credit checks. In most cases all that is required by you is to inform them on the progress of goals specified in the application and send in periodic progress reports. This is done to ensure that the funds granted to you are being used as intended. If you are serious about this then by all means look into the resources presented in the resource box.

3.Women And Business Grants

Women will find grants available to purchase an existing business. Excelling in your respective field is another excellent way to qualify for a government grant. Women who want to gain the knowledge to successfully run their own businesses can qualify for grants to attend business school. The main advantage of a business grant is that you DO not have to repay the money to the government or funding agency.

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Apply for Grant,Student Grants,Payday Loans,Grants for Woman,Gov. Grant Money,Business Grant money,College Grant Money,Grant Money for Home,Cash Grants.

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Source: http://applygov-grantmoney.blogspot.in/2012/05/nursing-scholarships-for-women.html


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Financing Education Mortgage loans

Financing Education Mortgage loans

Every once in awhile you see an article come up about Federal Student Loan programs and this week I saw two.Reuters published an article a few days ago suggesting some fuzzy math by FinAid.org's Mark Kantrowitz concerning the nation's total student loan debt. It suggested that Kantrowitz may have overstated the number and was actually more like 610 to 800 Billion dollars. Not quite the 1 trillion dollar number being bandied about but historically large nonetheless.

On the political side Ron Paul (Republican candidate for president) in an interview on Sunday's (10/23/2011) Meet the Press on NBC said, "he'd kill the loan program eventually if he were president". His comments were framed in the context of higher education costs being inflated by government intervention.

While it's refreshing that the magnitude of the problem is coming to light, I've yet to see any real action to change it. Last year as part of President Obama's health care reform act, new student loans were going to be directly administered by the federal government. The goal was to eliminate the loan servicers who are in effect the middlemen of the student loan industry. Their function was to handle the administrative aspects of the Federal student loan programs adding fees and costs to the borrowers total indebtedness as well as to the Federal government.

While a welcome change, the legislation did virtually nothing for current loans. Student loan servicers haven't gone anywhere and as student debt grows it's a sure bet that a portion of that increase can be attributed directly to fees and gaming of the system by both schools and loan servicers.

The issue is that this isn't a fair game; in fact it's got worse odds than a Vegas slot machine. As I look at the overall condition of the economy it's not a stretch to believe that default on student loans is going to be the next financial bubble to collapse taking the government backed student loan program with it as well as the banks participating in it.

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Source:http://technorati.com/politics/article/financing-education-another-mortgage-crisis-in/


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