Home Equity loans Bankruptcy – Secrets you need to know

September 3rd, 2010 by Home Loans No comments »

Is it possible to get home equity loans after bankruptcy?

Bankruptcy will be the last thing many would want to experience financially. This would cause a big drop in their credit score and completely affect all the future chances of getting loans. Lenders who do a credit check through teletrack would immediately reject the loan application after they find bankruptcy in their record. But there are solutions available to you. One of the best solution for such people are the home equity loans.

Why is home equity loan the best solution?

Home equity loan is the best solution because the lenders are risk free in giving away these loans to the borrowers. This is because you are providing the home as a security to the lenders. Thus, you can find better loan offers through these loans. These loans can be used for any purposes such as consolidation, emergency medical expenses etc, . These loans are perfect solutions for people having a very poor credit rating. Since these loans are secured, no one would have any difficulty in getting them.

Points to remember:

Although it is easy to get home equity loans after bankruptcy, you should not get the very first loan offer you receive. You must take ample time in getting quotes from various lenders and do comparison between them all. This way, you can get the best deals. Another advantage of these loans is that they are tax deductible. There is also an added advantage in getting these loans. These can be used to rebuild your credit score. You must take all possible action to make the payments without fail.

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Save Money With Real Estate Mortgage Loan

September 2nd, 2010 by Home Loans No comments »

When it comes to a mortgage loan, many financial institutions, brokers and companies offer a variety of packages to its customers! Since the process of availing a mortgage loan is more or less the same everywhere following the federal guidelines, availing it is no longer complicated. The basic differences will be the fluctuations in interest rates and also the loan program will differ from one to another. If you are looking ahead to avail mortgage loans for buying a property or refinancing the existing ones, you must contact the bank or financial organizations to get the particulars for continuing the application process.

Recently this year, Obama mortgage administration has introduced a promising federal program in order to assist and alleviate the housing industry. The administration has contributed about 75 billion dollars for the making homes affordable mortgage program. MHA is a complete drive out to obviate and stave-off foreclosures and to aid the landlords in upholding their house from being foreclosed. HARP and HAMP are the basic initiatives driven under making home affordable mortgage program. Furthermore, Landlords guaranteed by Fannie Mae and Freddie Mac loan lookup are granted assistance in retaining their homes under MHA!

Are you questioning yourself does Freddie mac own my loan? Well, if you are unsure about this, give a call to the loan provider or the organization or the broker from whom you availed the loan. They’ll assist you in finding whether or not your loan is under Freddie mac. Yet another basic qualification to carry out loan modification is the proof of financial hardship status.

The financial hardship entails that you are right now unable to afford the existing mortgage payments due to some situation and you are in the verge of receding the home than going to default. The process of HARP and HAMP's pretty hard to win, but if it is accomplished, your house will be saved from being foreclosed. We strive hard and save your home!

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The shortcomings of the VA home loan

August 29th, 2010 by Home Loans No comments »

There are multiple advantages of obtaining a VA home loan. Since part of the loan amount is guaranteed by the Veterans Administration, the borrower is not required to make any down payment nor does he have to pay exorbitant interest rates on the loan amount. Moreover, the homes constructed under the VA loan program must carry a warranty from the builder, thereby insuring the buyer from any possible damage or repairs.

In comparison to pros, the disadvantages of a VA home loan seem to be insignificant. Still, they are worth mentioning and knowing.

1. Borrowers are required to make a one-time funding fee on VA loans. The fees might range from 1.25 to 3 percent of the loan amount and is determined based on the applicant’s service length. The fee also varies based on whether the loan taken is the first or second loan. Usually, most applicants are charged with a 2 percent upfront fee. Upfront fee can be lowered in case the borrower makes a 5 percent of down payment,

2. VA loans are notoriously reputed to take a long processing time. Hence, many sellers are often reluctant to work with somebody who has applied for VA loans. However, the fact is that the actual loan process for obtaining a VA loan takes about the same time as a conventional loan, which is equal to 2-6 weeks.

3. In case of VA loans, borrowers are not required to pay closing costs. While part of it is paid by the lender, the other part is paid by the seller. Therefore, many sellers may not be ready to negotiate sale price of the home if the buyer is someone who is gaining VA loan to purchase the home.

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3 Reasons why you can not qualify for a home loan

August 26th, 2010 by Home Loans No comments »

Mortgage rates are back down at record lows, and mortgage loan applications are nearing record highs. However, what we’re not seeing is an increase in home loan approvals. In fact, getting approved for a home loan is becoming tougher and tougher as time goes by. translated into an increase in the number of loans being funded. If your mortgage hunt has been unsuccessful, here are 3 reasons why you may have been turned down for a home loan.

Reason #1: Lack of Stable Job History

The first thing lenders look for is evidence that you’ve had and will most likely maintain a stable job history. For sure, you’ll need to account for the last 2 years of work history. You’ll also need to furnish your most recent 2 years W2 statements as well as a recent pay stub in order for most lenders to issue you a pre-approval letter.

Reason #2: Insufficient Income

Even if you can show a steady work history, you must be able to also show that you can afford the loan you’re seeking. As a rule, you’ll want to be sure that you have a minimum of 2 and 1/2 times your monthly debt payments coming in as monthly income.

Reason #3: Poor Credit History

Most lenders today require a 620 minimum credit (FICO) score, and you’ll need a 700 score or higher to get some of the more attractive rates being advertised. As a rule, you can expect your interest rate to be better the higher your credit score rates. Low but acceptable credit scores in the high 600s will get you lower than optimal mortgage interest rates.

Bottom line: If you can’t get a mortgage approval, it is likely due to insufficient income, too much debt, or your inability to document your income or assets. The only thing you can do if you fall into any of these categories is wait it out. In time, if you work on each of these areas, a mortgage approval will be in Cards for you.

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Home Equity Loans to enhance your home!

August 25th, 2010 by Home Loans No comments »

Home equity loans are one of the most flexible and versatile financial products and they have many advantages, some of which are only obvious to the practiced eye and experienced user. What is it that makes this type of loan so special? Well, for starters, they offer a cheap source of funds with low monthly payments, low interest rates for almost anyone. And this is just the tip of the iceberg.

Would You Care To Elaborate?

Of course. First and foremost, I will explain in a few lines what this loan type entails. If you apply for a home equity loan or line of credit, you are taking out in cash the equity left on your home, which is the difference between the real market value of the property and the remaining mortgage balance. This is a secured loan, naturally, and it works more or less like a regular mortgage loan (it is usually referred to as “second mortgage”).

Okay… Now What?

You might be wondering whether this amazing financial product holds any restrictions when it comes to the purpose of the money. It does not! What you do with the equity loan is completely up to you. You can buy a car, buy a second or third property, put your kid through college, pay outstanding bills, or whatever you can think of.

Did You Say Home Improvement?

Home improvement is one of the many uses home equity loans have. And also one of the most popular ones. Why is that? Leaving aside the loan’s evident advantages, there are many other benefits which are rarely discussed and which can really come in handy if your home needs renovations. Why do people seek to improve their house? There can be many different answers to this question, but the one we want you to focus on when reading this article, is this one: improving the quality of your home will increase the equity value on it. This is essential for future selling or renting.

The interest rate on home equity loans in very low. It will be lower than on most home improvement loans you will find out there, and what is more, it is tax deductible. So not only will you be renovating your property on excellent loan terms, but you will also be saving thousands on interest!

Provided that you research the net thoroughly, you will be able to find lenders willing to lend you 100% of your home value. They are hard to find, but extremely worth the try. They usually offer equity loans specially tailored for improving your home. The purpose of the loan is limited to this deed.

In case you are not exactly sure of how much your project will be worth overall, and you do not wish to take out an unnecessary sum of money, home equity lines of credit are precisely what you should be looking for. They allow you to withdraw as much done properly, there is no limit which is set by the provider and which can be negotiated after signing the loan agreement. Once you pay an amount to withdraw will be able to take more. You will be able to say goodbye to cash flow problems!

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