Common Loans Used To Buy Real Estate

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By: Frank Defazio

For most home buyers, especially first time home buyers, shopping for a home can be stressful and confusing. Many times the most confusing part of the home buying process is understanding the different types of loan options that are available. Here is an overview of the most common loans buyers use to purchase real estate.

Conventional Loans

Conventional loans are loans that use Fannie Mae and Freddie Mac guidelines in order to make the loans conform with respect to Loan to Value (LTV), borrower credit scores, borrower income requirements and minimum down payment amount. Conventional loans allow a minimum down payment of 5% and are generally utilized by home buyers with excellent credit. Mortgage origination fees with conventional loans are less than government insured loans like FHA and VA loans. Conventional loans allow the home buyer to receive a seller’s assist ranging from 3% -6% of the purchase price depending on down payment amount.

FHA Loans

FHA Loans are loans backed by The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD). FHA does not lend money but rather insures the loan against default by the borrower. Since the disappearance of the no money down loans FHA loans have become increasingly popular because their 3.5% down payment requirement is the lowest of all loans currently available to most home buyers. FHA loans are generally utilized by home buyers who cannot qualify for conventional mortgages because FHA loans offer more flexibility with respect to down payment amount, credit score, debt to income (DTI) ratio and other important loan qualification variables. FHA loans charge an upfront mortgage insurance premium (MIP) which makes FHA loans origination fees significantly greater than conventional loans.

VA loans

VA Loans are available to borrowers who are serving or served in a branch of the US Military. VA home loans are overseen by the U.S. Department of Veterans Affairs and allow the home buyer the opportunity to purchase a home with no money down (100% financing!) provided 1) the home appraises and 2) the seller pays all closing costs. There is no PMI on VA loans but the VA charges an upfront VA funding fee which can be rolled into the closing costs. Veterans seeking to purchase a home with a VA loan must still prove sufficient income, credit and cash reserves.

ARM

An adjustable rate mortgage or ARM, also called variable rate mortgages, is a loan where the interest rate is not fixed but instead varies periodically. Interest rates on ARMs are usually linked to an index, like the LIBOR, and rates vary to reflect to the cost to the lender of borrowing money in the current credit market.

Home Equity Loan

A home equity loan is a loan where the borrower uses the equity in their home as collateral for repayment of the loan. Home equity loans are often used to finance major expenses like home renovations, unforeseen medical bills or children’s college education. A home equity loan creates a lien against the borrower's house, and reduces the homeowner’s equity in the home.

Home Equity Line Of Credit (HELOC)

A home equity line of credit, also called a HELOC, is a loan for a set amount that is secured by the borrowers existing equity in the home. HELOCs differ from home equity loans in that the borrower does not necessarily receive the entire loan amount up front but instead uses a line of credit to borrow amounts that do not exceed the set credit limit. Money can be borrowed using HELOCs during the draw period which can be anywhere from 5 to 25 years and the monthly repayment minimum is usually a small, interest only payment. The full principal amount of the loan, sometimes called a balloon payment, is due at the end of the draw period.

Kansas City No Credit Check Auto Sales - Buying a First Car

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By: Kevin Schmiterson

If you're a student or young adult who has never owned a car before, there are a few factors to consider before you make this important purchase. One problem that you may run up against is not having any credit history. While having no credit is better than having bad credit, it's still something that can be held against you by lenders. For those who are living in the Kansas City area, you can visit a Kansas City no credit check auto sales dealership. This is a way to get financing for your first car when you need it most. Having a vehicle in the Kansas City area is a good idea, because it is spread out over 15 counties, including Johnson County, and has a population of over 2 million residents. 

Buying a car is a good way to get you around, whether you need to get to work, school, or a friend's house. By visiting a Kansas City no credit check auto sales center, you can peruse your options without worrying about being denied due to your lack of credit history. However, you will need to qualify for financing based on some other criteria. For example, you will either need to have your own form of employment or your parents will need to offer their financial details. You will also need to submit a valid driver's license, and your insurance papers.

With this in mind, it's a good idea to think about the type of car you want before you visit the Kansas City no credit check auto sales dealership. Think about the size and model of car that will best fit your lifestyle. If you're going to be using this car only for yourself, you could choose a smaller car, while if it's going to be shared with your family, you'll want something larger. If you plan on taking the car to college, you might want to choose a car that has enough storage to pack up your belongings. 

The area where you will be driving your car can also influence the best type to choose from a Kansas City no credit check auto sales dealer. If you're going to be driving only on the highways, you will want a good cruiser that can handle high winds. For driving around Kansas City, it's a good idea to choose a hatchback or other smaller car that can zip in and out of traffic. These are just a few of the practicalities to think about when you are establishing credit and purchasing something as important as your first car.

Facts About the Benefits of SBA 504 Loans for American Small Businesses

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By: Robert Deigh

The National Association of Development Companies (NADCO) is the trade association for the nation's 270 Certified Development Companies (CDCs). CDCs are certified by the U.S. Small Business Administration (SBA) to provide financing to small businesses through what is called the SBA 504 loan program. Members are non-profit organizations that serve every state, as well as Puerto Rico and U. S. territories in the South Pacific. 
• Chris Crawford is the president of NADCO. The organization is based in McLean, Virginia. 
• NADCO is actively supporting the SBA 504 refinance program, a time-limited opportunity that is due to expire 9/27/12. This powerful program offers businesses the opportunity to refinance their small business loans and withdraw equity for working capital. The program offers lenders the opportunity to bring owner-occupied commercial real-estate portfolio back into regulatory compliance and reduce overall CRE portfolio concentrations.

FINANCING

• The 504 industry is responsible for financing more than $45 billion to about 130,000 of America's small businesses over the past 25 years. The total project amount funded has been over $112 billion in small business financing projects. With NADCO's support, the 504 program's loan authority is up from $400 million in 1991 to $7.5 billion in FY 2011.

REFINANCING

• Many small business owners are not aware that if they have a commercial business loan (non-SBA loan) they can refinance that loan at very low rates using the 504. For many small businesses, this has meant the difference between success and failure. However, this program is scheduled to end on September 27, 2012. 

• Small businesses can SAVE money and time using the 504 refinance program. The 504 Refinance program allows small businesses to use excess equity to obtain working capital for eligible business expenses.

• The 504 refinance loan program is designed for small businesses that have outstanding commercial real estate and/or commercial real estate loans. Businesses can refinance up to 90% of the appraised value of available collateral. 

• SBA estimates that as many as 8,000 businesses may participate in this 504 refinancing program during the current fiscal year, which will provide up to $7.5 billion in SBA-guaranteed financing leading to total project financing of almost $17 billion. 

• The 504 refinance loan program enables small businesses to: 
• Use excess equity to obtain working capital for eligible business expenses
• Lock in long-term, fixed-rate, low-interest commercial financing
• Help expand those businesses, create jobs and benefit consumers too
• Consolidate existing debt
• Finance eligible business expenses, saving working capital

Other benefits include:
• consolidate existing debt (balloon and/or high interest rate loans)
• lock in long-term, stable financing, reduce fluctuating expenses
• finance eligible business expenses, save needed cash-flow
• protect jobs and hire additional staff, supporting the local community
• include closing costs in the transaction, eliminating cash-flow drain

Can Medical Bills Cause Bankruptcy?

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By: Gary Brenner
Word Count: 357 Most bankruptcies occur for reasons beyond our control. As medical bills continue to soar to extraordinary heights, those who can’t afford adequate health insurance have no choice but allocate their savings to vital treatments and procedures. Once these individuals run out of cash, they must resort to bankruptcy. Here’s a brief look at the correlation between bankruptcy and medical expenses in the U.S. Rising Medical Costs In recent years, medical costs have become more daunting than ever for struggling families and individuals. According to a study by health care consulting firm Milliman Inc., healthcare costs for the average family of four exceed $20,000. Those forced to file for bankruptcy often pay much more than that—especially considering that an average night in a hospital costs nearly $2,000.  Health-Related Filings According to the American Journal of Medicine, just over 62% of all bankruptcies in 2007 were filed because of insurmountable medical debts—up from 46% in 2001. After exhausting their savings, many people sell their cars, jewelry, and homes. After months of trying to keep up with medical debts, these individuals have no choice but to resort to bankruptcy.  How Bankruptcy Helps Bankruptcy is a perfectly legal and honest way to eliminate insurmountable debts—especially if those debts are of a chiefly medical nature. Chapter 7 bankruptcy can immediately eliminate most debts, including outstanding medical bills, but involves the seizure and sale of personal property. Chapter 13 bankruptcy can also eliminate outstanding debts, but only if the debtor adheres to a three to five-year repayment plan. Before selecting a bankruptcy option, it’s always a good idea to speak with an experienced bankruptcy attorney.  Millions of Americans are just one illness away from financial ruin, despite being in general good health and obtaining the best health insurance possible. In case of medical emergencies, however, the law permits bankruptcy as a strong safety net. If your medical bills are becoming insurmountable, consider bankruptcy as a solution to your financial problems. You can contact Gary Brenner Law Offices for any further questions.

Military Bereavement Loans - In a Time of Need, Help is Available

Home  Finance  Loans / Lease By: Kevin Schmiterson Word Count: 438

It's almost impossible to imagine the devastation a soldier must feel when the loss of a loved one. For many military personnel, they, and even their families, know that in times of deployment to war torn countries, their lives are at risk every single day. To feel that nothing could be more on the edge and then hear that a family member, who was left safe and sound back home, has passed away, can present a wide range of emotional distress to an active duty serviceman or woman. That's why military bereavement loans can be so important to access in a time of need.

For most military families, especially those of lower ranks, paying for the cost of travel and funeral expenses can quickly become overwhelming and that's why bereavement loans, in the amounts of $500 to $1,000 can be such a help when needed most. Accessing a loan through a financial lending institution that caters to military service personnel and their families usually involves no more than 24 hours between the processing of the loan and the actual release of funds to the borrower. This quick service allows the soldier and their grieving family members the chance to focus on the things that matter most.

Taking a loan from a lender who specializes in helping service members of all ranks and all branches of the military means the service person is dealing with a company who understands the special needs military families may have. Military bereavement loans are given with a repayment schedule that features a 90 day interest-free period or longer terms with a competitive annual percentage rate, whichever works best for the service person. Army, Navy, Air Force, Marine, and Coast Guard active-duty service personnel are all qualified for this type of loan and may use the loan however they see fit, for travel expenditures to get home or as an added means to cover funeral costs.

There are very people across the entire country of the United States who would ever want to see an active duty military person have to miss the process of saying goodbye to a family member who has passed away. A military bereavement loan is sometimes the only thing that enables the service person to make it back home. If you or someone you are close to is an active duty military person and you need extra money to see you through the burial of a loved one, look for an intuition who puts their focus solely on military families, and get help promptly.

Kansas City Bad Credit Car Dealership - Here to Help You

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By: Kevin Schmiterson

Do you have a bad credit history? Are you having trouble getting a dealership to take a chance on you? You aren't alone. In these tough times when jobs are scarce and the economy is up and down, but mostly down, it can be brutal trying to find a car when you need one most. Even in Kansas City, where dealerships are plentiful, it can be hard to find a Kansas City bad credit car dealership who works with buyers who have a less than spotless credit history. But, they are out there; it just takes a little looking around to find them.

If you have little or no credit because of poor choices in the past or because you were hit hard during the economic downturn, there is no reason you shouldn't be allowed the opportunity to rebuild your credit. In Kansas City, bad credit car dealerships know how to work with prospective buyers like yourself so that you can be driving off the lot in a new pre-owned car in no time. With in-house financing, these dealerships are eager to give you that chance you've been waiting for and just like you, they want to see you driving off happy, able to do what you need and go where you want.

Kansas City and the surrounding communities have become some of the most commuted areas in the country. If you live in Kansas City, but work somewhere like Olathe, or Lawrence, you must be able to have a dependable ride to get you back and forth. And, while family, friends, and co-workers may offer to give you a ride, there's no guarantee that one day they won't be able to because of illness, obligations, or their own car trouble. It's important to have the security of your own vehicle. Not only that, if you are someone who needs to rebuild their credit history, paying for a car is one of the best ways you can do this.

Don't let the fear of hearing a no stop you from pursuing your need to have a dependable car. In Olathe, there are bad credit car dealerships just waiting to help you turn your situation around. With a down payment and as little as three months proof of income, residency verification, a Kansas driver's license and the ability to have full coverage insurance or being willing to sign up for an in-house program that provides additional coverage with your liability, you can be driving home today in pre-owned vehicle that's in like-new condition, taking charge of your life once again.

How to Get A No Credit Check Auto Loan

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By: Kevin Schmiterson

There are times in the lives of some people when their credit is compromised and is not as perfect as it should be. This can be due to past issues, late payments, repossession of a vehicle, foreclosure, or a variety of other problems. Regardless of the reason, this can make it extremely difficult to get a loan for a new car when you need it. No credit check auto loans are one way that you can get the loan for a new car in Kansas City and there are several places that you can find these amazing loans.

Many dealerships in the Kansas City area offer what is called on the lot financing. This is a type of no credit check auto loan that is pretty easy to find. If you are unsure of whether a particular lot offers on the lot financing to their customers, just ask the salesman. If they do offer this type of financing to their customers, they will be more than happy to tell you about what they have to offer and help you apply. Most of these auto loans only require that you show proof of your employment and income. 

If you are applying for a no credit check auto loan, you will usually be required to make a pretty large down payment on your loan. The down payment for this type of loan can sometimes be a bit larger than what would be required through other financial institutions. However, this is one of the things that these dealerships do to make sure that they do get a good portion of their money up front. In some cases, the dealership will negotiate a down payment that is more affordable. Just talk openly with them about your circumstances and let them know up front how much you are able to afford and they will most likely work with you.

It does not matter if you have bad credit or not, you may eventually need a new car. This is why the no credit check auto loan is available and you should not hesitate to look at the options. This type of loan could be the answer that you have been searching for to help you get a new vehicle. In Kansas City, there are many car dealerships that offer this financing option to their customers and you should have no trouble getting the car that you need.