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Land Financing and home loans

January 27th, 2011

There are many things you need to know before applying for a home loan or for land financing. You can approach your local bank or any one of the many lending institutions available. This form of financing is great, as it prevents your money from being stuck until you can make enough to pay back the loan amount.

Home Loans

Home loans are required to finance the purchase of a residential property. There are certain criteria that need to be complied with to be eligible for a home loan:

o You have to be an Australian citizen or a permanent resident returning to Australia.

o A migrant or an employee on an Employer Sponsored Visa (temporary or permanent; most subclasses can apply).

o A migrant on a Permanent Skilled, Skilled Independent or a Skilled Independent Regional (Provisional) Visa (most subclasses).

o A non-resident of Australia can also apply if they want to invest in Australian real estate. You have to have an ongoing income from employment, investments/rental property or have other sources of income.

o If you are an investor, have Business Skill or a Talent Visa (most subclasses), then you can apply for a home loan.

o If you have a business in your country of origin or in Australia for the past two years, you are eligible.

The above listed criteria is only to check whether you are eligible for a home loan or not. If you are, then you will need to fill in the application form provided by the financial institute of your choice. Every institute has its own terms and conditions, which should be all right with you. Once you agree and fill out the form and submit it, the company will then consider your application. If it is approved, only then will you get the first disbursement of the loan.

Land Financing

Land financing is required by construction companies and landowners. There are two types of land financing available; let’s discuss these in detail:

Standard Draw Down

This land financing loan is for construction purposes. These funds are used for residential or commercial properties. The lender company will see if the planning permits, building contracts and stamped building plans are in order and allow the owners to apply for a loan. A construction loan advance is given to the maximum tune of 70 percent of the building valuation, although the norm is to take around two-thirds of the property value.

Land Development

These loans are to help the construction company acquire the land they will require for the construction. Also, the company requires funding for the development of the land before it can be constructed upon. Lenders give loans amounts which are two-thirds the land value. Approaching a lender before commencing construction, though, requires the submission of the stamped plans; fixed price building contract, permits and sometimes even before the sale must be submitted. Most companies do not offer such service credit, so please confirm and also inquire about their conditions.

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Bad Credit Mobile Home Loans and Mortgages – You can still financing?

November 28th, 2010

If you’ve got bad credit, you might think it is impossible to own your own home. On the contrary, there are programs for individuals with poor credit. This is especially true when it comes to mobile home loans and mortgages. You will find that if your credit score is lower than the mid 600′s, it will be difficult for you to obtain any kind of home loan, even one for a mobile home. However, it is not impossible. You might have to hunt for lenders willing to help you and put up with a high interest rate. For people who are determined to own their own home, high interest rates can be worth the price.

When you obtain a bad credit loan for a mobile home, you need to make sure you make all your payments on time. This will improve your credit and reduce your risk of losing your home to repossession. Then when your credit gets better, it will be easier for you to refinance to a lower interest rate. Bad credit is considered anything under 600 and may feature judgments, bankruptcies and unpaid debts. If you are concerned that your credit will stand in the way of owning a home, it might be a good idea to review your credit report and fix any outstanding problems.

The three main credit bureaus are Experian, Transunion and Equifax. For a reasonable fee, you can order copies of your credit reports and credit score. This way, you know exactly what your score is and what items on your credit report may pose a problem when it comes to obtaining a mobile home loan.

It is also important to check your credit report for errors and write to the credit bureaus if you find errors. The cleaner your credit, the better type of loan will be able to get. With a little effort, you can fix your credit so that you can obtain a mortgage loan with a decent interest rate. It may not take as long as you might think to improve your credit to the point where you can get the loan you want at a price you can afford.

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Rejected For Mobile Home Financing? Now approved

November 21st, 2010

Looking forward to buying a new mobile home? So, you thought getting a loan would be easy. Yes, but maybe only until your loan request faces rejection from traditional financing firms. Frustration mounts when this becomes a norm with one lender after another refusing you. If you are in such a situation, you could find help in the form of online mobile home financing services.

In the earlier times, these trailer homes were not considered to be any more than automobiles which also followed the regular automobile like depreciation. Not so anymore! Improved design features like premium and sturdier flooring, windows and doors, and also a house-like thick wall construction has made them more durable and long lasting and proper maintenance and upkeep will ensure that these vehicles will last for years. So, in the present scenario, online lenders have started considering this to be an investment of sorts. Hence today many more lenders than before would be willing to offer you a loan for your mobile home. It can take the form of bad credit secured loans or unsecured loans.

Online loans – Ease and simplicity:

Usually these online secured personal loans can be acquired through their secure websites. A simple link to the application will take you there and you can fill out your financial details and mentions of references. Once this is done, it may be as early as 24 hours when you receive confirmation of your loans getting approved

Here you’ll have the option of your either having the lender paying the dealer or conducting this entire transaction via your bank account – the second option will place you in a better position as far as bargaining with the dealer is concerned. The time span options for repayment of secured personal loans may vary from seven years to even thirty years!

Be careful with the warranties:

Be extra careful about the warranties that these lenders offer. The warranty can either be an add-on or be included in the total price of the home. A wise thing to do would be to opt for a warranty plan that puts least financial burden on you for defects that occur in the subsequent five to ten years of the purchase. Ideally, a warranty should provide cover for manufacturing defects for a up to a period of fifteen years.

There may be some features like a central AC unit, refrigerator or a washer/dryer, just to name a few that may not be included, so these changes/installations may be needed to be kept in mind. Also, ensure that the cost of moving of and setting of your mobile home is included in the price.

Thought of tax?

In some states, the land where you’ll be placing your mobile home, if owned by you, would be titled as real property upon setting it upon a foundation. In such a case, you’ll be liable to pay real estate tax which will be deducted from your income tax. But you need to find out whether this is actually the case, because if your state does not consider this country to be "property" shall be taxable under the "personal property" of the head.

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USDA 100% Financing of Federal Mortgage Program!

October 28th, 2010

USDA Home Loan Program offers more credit flexibility in this concerned housing and lending market than traditional lenders do. It also provides low fixed monthly mortgage payments to help low-moderate income households.

For those that have a desire to live right outside city limits you should check this program out. You can get 100% financing and no down payment within eligible property areas. You will be surprised how many semi-rural properties fall within the programs eligibility.

A large percentage of our country ‘s greatest obstacle to home ownership is the lack in funds for down payment. USDA provides a solution not many know about. It overcomes down payment issues for an individual or family by loaning up to 100% of the appraised value of the property. This eliminates the down payment requirement.

The USDA Guaranteed Home Loan program helps low-to-moderate income individuals and families purchase homes. The approval process is fairly easy and fast, and the funds for the program are basically unlimited. Best of all, this loan requires no monthly mortgage insurance, only a 2% up front fee and that can be financed in the loan.

The program offers a 30 year fixed rate mortgage and no prepayment penalty. Under the Guaranteed Loan program, it guarantees loans made by private sector lenders. If the borrower defaults the USDA guarantee pays the lender. Borrowers work with the lender and make their monthly mortgage payments to the lender, not the USDA. Borrowers must have a two-year primary employment history and the dependable income must not exceed the moderate-income limit guidelines for the eligible property area.

This program offers more lenient qualifying guidelines than traditional mortgages. No minimum credit scores or previous housing history is required. Non-traditional credit is acceptable if no credit is available.

The loans can be used on new construction, existing homes, and homes in need of improvements. The rates are very low and repairs to a home may be financed 100%. The repair work on the home must be done by a licensed contractor.

There is also help for funds to close. All closing costs and prepaids can be financed by the seller, and 100% gifting is available to borrowers. There are no minimum cash contributions from the borrower.

If you have not owned a home in the past three years you can use the USDA home loan and the HR3221 bill to get into a home with no out of pocket money and take up to $7500 off your tax liability.

The tax credit must be paid back over a 15yr period at $500 a month interest free starting the following year. Speak to your local lender about the Housing Rescue Plan and HR3221.

What does this mean to renters? Based on today’s USDA housing loan rates and average rental costs, people can buy a $ 175,000 home on the same charges they pay rent. For personal rent vs. own analysis in contact with a local mortgage consultant. If you have property you have selected you to verify program eligibility USDA use the following link or just click to gain additional knowledge.

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Counted for Mobile Home Financing? Get Approved Now

June 15th, 2010

Have you been trying to get traditional financing to purchase a new mobile home, only to be turned down by lender after lender? If so, perhaps you should try the more lenient lending environment of online mobile home loan servicers.

They were once viewed as just trailer homes that depreciated every year much like your automobile does. With improved design features – including sturdier flooring, premium windows and doors, and thick wall construction, the ones of modern times can be expected to last for years with proper upkeep and maintenance. Online lenders do not look at it so much as a depreciating asset – they see it as an investment in your future. That makes it easier than ever to find a lender who will say yes where others say no.

Online Mobile Home Loans

To apply for financing with these special online lenders, you will visit their secure website where you will find a link to an application. The application will ask general questions regarding your financial picture, including your past and present employment and income, as well as personal references who are familiar with your situation. You can be approved in as little as twenty-four hours for your new mobile home loan.

You can choose to have your new lender pay the dealer, or you can choose to have the proceeds of the loan deposited directly into your bank account, where you will have greater bargaining power when you close the deal. You may choose terms as long as thirty years for certain types of mobile homes. If you prefer to pay off the loan sooner, you can do so in as little as seven years.

Warranties And Add-Ons

When choosing your mobile home, you should carefully study any warranty plans that you are offered, whether the warranty is an add-on feature or included in the price of the home. Choose the warranty plan that charges you the least out-of-pocket for any defects during the first ten years. On the flip side, an ideal warranty will cover any manufacturing defect for a certain period of time, typically ten to fifteen years or more.

Take into account before you make a deal with the mobile home seller any appliances or upgrades that you want to have in your mobile home. Some features that may not be included are central air conditioning units, stove, refrigerator, washer/dryer, and under skirting. Be certain that the cost of moving the mobile home and setting it up at your location is included in the price of the home.

Tax Breaks

If you own the land that you will be placing it upon, you can have the property titled as real property in some states, once you have it set up properly upon a foundation. Although you will be now required to pay real estate taxes, those taxes are deductible on your income tax form. However, if your state does not allow you to consider your new mobile home as real property, find out whether you are required to pay tax on it as personal property.

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