Category Archives: Finance

Auto Financing

You shouldn’t have to allow a bad credit rating to ruin your financial life and prevent you from getting the car you need to visit family, commute to work and safely get your kids to school. Even if you have a poor credit rating or not credit rating at all you can still get your hands on a great quality car loan. . Once you have worked out your budget you will able to pick a suitably priced car to match it.

Auto finance companies are now becoming more specifically tailored to meet the needs of people with a bad credit rating. Every company will offer a variety of alternative loans to suit everyone’s needs so even if you didn’t qualify for the loan you wanted you can still qualify for an alternative you may not have been aware of. The two main types of auto finance available are secured and unsecured loans. Secured means your car loan will be guaranteed by a main possession. In the case of cars it is usually the car itself although it can sometimes be your home in some cases.

This means if you fail to meet the payments of your car loan, the auto finance company will be able to possess your car meaning you lose money and the car you needed. With these loans it is ultimately much better for you to fully ensure you can afford the loan taking into the account the worst-case scenario. Because of this risk factor these types of loans are much easier to obtain and so many people with bad credit will choose this option.

An unsecured loan does not require a guarantee on any possession but it will require a good credit history to obtain and it is harder to get this type of loan approved. There are also other loan types and special offers available for your car loan such as a no credit check loan that does not require you to have any kind of credit history either good or bad.

This type of loan will test your ability to pay the loan back currently and you will need to be able to provide bank statements to the finance company to show your economic stability. There are also other things you could do to ensure you get your auto finance approved. If you have the time, you can do simple things such as paying household bills regularly and on time to build up your credit rating. This can have a dramatic impact on your credit history and give you a terrific boost for getting that second chance at a car loan within a few months.

You may also wish to consider if the car you have applied for affected your auto finance approval. If the car is too expensive for your current budget or if it is too expensive against your credit history your application may have been rejected on that basis alone. Before you go for your second chance at a car loan application, you should work out a budget that details all the expenses and financing you need. This should include road tax, insurance, petrol, maintenance and your estimated finance loan. Once you have worked out your budget you will able to pick a suitably priced car to match it. Choosing a cheaper car will give you a better opportunity to getting your auto finance approved.

Are You Ready to Obtain Aircraft Financing

If you’re interested in purchasing an aircraft whether it be for personal or commercial reasons, you’ll of course need to know a little bit about the aircraft financing process. Take the following quiz and see if you have the necessary understanding to proceed with attaining an aircraft finance loan.

(1) With regards to aircraft financing for aircraft under $100,000, generally what is the loan term for, say, a 15 year amortized loan?

(a) Generally, a 15 year amortized loan has a loan term of 3 years.
(b) The term for such a loan is 2 years.
(c) A 5 year term is usually imposed for this type of loan.
(d) None of the above.

Answer: (c) Because most borrowers generally upgrade their aircraft after 5 years, the 5 year term is usually prescribed.

(2) How long can the amortization schedule stretch on a loan for an aircraft over $100,000?

(a) The length of amortization can be as long as ten years.
(b) Amortization can span over as much as fifteen years.
(c) Sometimes an amortized loan of this type can extend 20 years.
(d) Most amortized loans for aircraft over $100,000 can go as long as 30 years.

Answer: (c) An amortized loan over the $100,000 mark can have a breadth of 20 years.

(3) With regards to experimental aircraft financing what is generally required of a kit-built plane versus a plane that has not been kit-built?

(a) FAA registration
(b) An appraisal
(c) A larger down payment
(d) A title search

Answer: (c) If you said a larger down payment, you are correct.

(4) What is an “advance fee scheme?”

(a) A scheme used by some unscrupulous lenders who ask for a sizeable down payment to fund experimental aircraft.
(b) An advance fee scheme is used by some aircraft finance lenders to secure the funds needed in order to conduct a title search and valuation of an airplane.
(c) Advance fee schemes are used to lower aircraft financing rates on single engine and twin engine planes.
(d) Advance fee schemes have been used in some instances of commercial aircraft financing for turbo props that are
hard to finance. An initial fee is charged by a lender with the pledge of financing the loan if the borrower pays the “upfront” expense.

Answer: (d) Beware if you’re in the market to finance any jet or turbo prop that has restrictive lending requirements. Many people have lost their money by succumbing to such a scheme.

(5) What is the best type of financing to choose if you need to make significant avionic upgrades to your aircraft?

(a) A 5-year fixed/adjustable rate loan.
(b) A 7-year fixed balloon loan.
(c) Experimental aircraft financing
(d) A 20-year fixed rate loan

Answer: (d) If you need to make repairs or upgrades every several years to your aircraft, this is the loan to choose.

How’d you do on the above quiz? Can you improve on your knowledge with respect to aircraft financing? A little “barnstorming” session never hurts anyone.

A Business Flyer’s Guide to Aircraft Financing

It’s nice to know that you have options with regards to flying a plane especially if you travel extensively. What is the best route for you to go financially? There are a great many aircraft financing options for you to choose from as well as criteria to consider with regards to obtaining the best aircraft financing rates. But first, let’s look at the various ways an aircraft finance loan can be helpful to you as a business person who flies, in general, a good deal of the time.

Keeping Grounded
Even though you may fly quite a bit, you still want to feel grounded as far as meeting your deadlines and obligations. Many times commercial air travel can play havoc on the life of the business person who wants to keep to a schedule. Not only is there the factor of security to deal with, you are also challenged by traffic and crowds. In addition, flight plans can be delayed and canceled making it almost impractical to do business at times.
Therefore, considering an aircraft finance loan is a viable solution in contributing to your overall well-being when it comes to business and personal travel.

Commercial Aircraft Financing versus Fractional Ownership
Dependent on your current financial circumstances, owning a commercial jet can be a boon with regards to how seamlessly and smooth your day-to-day dealings go. Owning your own commercial plane can present a large initial outlay financially. In addition, you also have to anticipate continuing costs with regards to storage, maintenance, fuel and staffing requirements. Nevertheless, if you like the privacy afforded by choosing such an option, you will not mind to elect to finance commercially.

On the other hand, if you can’t allocate the time or resources in owning your own commercial craft, then fractional ownership can offer many advantages. The initial cost is less than owning your own jet because you own a share of the plane you choose to finance. Fractional ownership is a commercial aircraft financing option that affords the contributor the benefits of full ownership without the requirements imposed by trying to procure total financing.

Experimental Aircraft Financing
For those flyers who want to delve into the experimental side of flying, experimental aircraft financing is available for anyone who need funds for this type of purpose. You do need to be FAA certified and if your loan is a kit-built experimental plane, you generally will generally need to meet the requirement of a more sizable down payment. An appraisal is a needed in certain instances depending on the type of craft you’re interested in buying and the size of the loan.

Loan Packages
Several types of loan packages are available offering good aircraft financing rates depending of course on the type of plane you’re financing and its overall cost. Fixed aircraft finance loans are generally for 15 or 20 years. Nonetheless, you can obtain such loans for a shorter duration if you wish.

Fixed and adjustable rate loans are normally offered for 3 or 5 year terms. Adjustments to the aircraft financing rates are therefore adjusted every 3 or 5 years. These types of loans are ideal for anyone who is purchasing a plane that is sound mechanically and the prevailing market rates are low at the time of financing.

Index based loans work in much the same way as fixed and adjustable rate loan packages in that they are best secured when the market rate indices are low. This allows the borrower an opportunity to pay off the balance earlier and build equity in his aircraft.

If your plane is in need of a major overhaul, then you stand to gain by opting for a fixed-rate loan. Typically, these types of loans can be obtained for terms of 15 or 20 years.

Conclusively, you have a great opportunity afforded to you when you own an airplane. Take the above information in consideration. Use it to keep you on a steady course toward financial solvency.

Pay Later With Boat Finance

Previously, when boating didn’t have such popularity as it holds in this day and age, it was much more complicated to find a person or organization that would facilitate you a boat loan. Nowadays, the condition is the opposite, and the predicament of the buyer is seeking the suitable company to get a boat loan from. Usually, there are three main sources from where you can acquire a boat loan; your bank, your credit association in addition to financial service institutes, also recognized as marine lending specialists.

In the same way, there are 3 common types of loans presented to people who wish to gain boats on a loan. One of them is the “fixed rate and fixed term” sort of loan that has a uniform monthly payment is necessitated throughout the span of the loan.Following the very last disbursement has been finished, the boat has been totally compensated for. “Variable rate” loans don’t contain a fixed loan rate. The rate varies with distinctive rate indices. To give a precise understanding of this kind of loan, the adjustable duration has to be observed. Balloon payment loans are remunerated absolutely at the end of the loan period.

Many new or second-hand boat dealers employ their own finance supervisor for carrying on the handling of boat loans. These supervisors take into account such things like the filing the application form plus the stuff that have to be done to to finalize the deal in the shopper’s name. Many dealers are associated with the National Marine Bankers Association, an union of marine lending professionals. Make certain when issuing an application for a boat loan to indicate that you desire to deal with National Marine Bankers Association. doing it this way, you stand to obtain extra discounts off the transaction expenses.

Moreover, getting your boat funded by an attributed dealer can also be advantageous for you. First of all, such dealers generally have contacts with a number of sources for financing. Not only will there be a big possibility of you being able to obtain your loan, nonetheless, you may also have the probability to decide on which source you desire to get. Such dealers are also capable of giving manufacturer’s warranties for specific items. This will highly safeguard your boat finance. Also due to their connection with the boat manufacturers, dealers are able to give you discount outlets for specific brands in addition to models. These outlets can be “initial delayed payment”, “no interest for numerous months” or lessened prices for a particular duration.

The submission method may alter amongst numerous lenders. Lenders might accept loan applications by phone or via a complete application. Whether it is to be by phone or not is determined by the quantity of the boat loan requested. The bigger the amount, the more details have to be remembered. High loan levels require every single point to be written down in black and white in a entire application. In case credit inquiry is needed by the level of the boat finance loan, the applicant may be requested to give tax returns for a specific number of last fiscal years as in addition to personal income statement.

The information regarding credit standing is important when it’s about resolving the right size that might be supplied to you as a boat investment loan.

Previous to putting forward your applying form for a boat loan, certainly, you will need to have unquestionably settled on the boat that you desire to get the boat finance for. Some info regarding the boat as the year, make as well as model, extra equipments plus upgrades, all sums are put into the computation of the absolute worth or cost of the boat. The additional significant information you ought to be ready to give to the lender are as follows:

(1) the purchase price of the boat,
(2) additional fittings you are determining to install,
(3) tax expenses as well as
(4) documentary charges.

By tying up the boat finance application, you are allowing the lending company to look into your credit position. This is called the loan underwriting method. These methods will comprise observing your individual credit capacity as well as the true value of the boat to be invested. Your credit as well as your debt to income ratio will be determined. Then the factual market rate for the boat you wish will be investigated by investigating other boat sources as well as obtaining the average going price for the particular model as well as brand.

After all the above has been conducted, and if the results are favorable for the boat loan, then the contract will be settled and you will claim the boat. For supplementary security measures on the part of the loaner as well as the lender, the total loan transaction may be supplied to an Escrow service to cut back the possibility of fraud.

Bad Credit Financing

The term ‘financing’ might sound a bit fancy, but it’s just another way of saying ‘loan’ (albeit a loan with a specific purpose). Basically, a loan taken out solely for purchasing one thing with no money left over afterward is known as financing – for instance, borrowing money to pay for a car is ‘car financing.’ In most cases, financing loans can be arranged through the people providing the service you’re paying for, although they merely act as brokers for specific lenders rather than lenders themselves; so using the same analogy, car dealers can generally offer finance to people buying cars from them, as do many home improvement firms.

Of course, since financing is exactly the same as a loan, that means the same rules apply when you try to get it: you’ll be subject to a credit check, asked to fill in paperwork and generally means tested to ensure you can afford to pay the money back. That’s not so good if you’ve got bad credit, County Court Judgements (CCJs) or any other form of financial difficulties, since those will count against you in your application. That isn’t to say you won’t be approved in some cases, because the lending options available may be flexible enough to offer higher rates of interest to compensate for your bad credit situation. However, you’re far more likely to be turned down using the limited finance options provided by the people you’re buying from (be it a car dealer, home improvement company or whoever), so it’s best to instead source your financing from another lender once you know what you’d like to buy.

Thankfully, there are many lenders who specialise in financing for people with bad credit – some offer very specific loans for cars, while others will simply provide a Bad Credit Loan for the exact amount required. Not surprisingly though, these loans will usually have a significantly higher rate of interest so it’s unwise to just go with the first firm that’s willing to accept you. As with all Bad Credit Loans, shopping around is the key to finding the best rate – you can do this yourself or turn to a loan broker, who can do all the work in the fraction of the time it would take you. So long as you specify that you want the loan for financing purposes and can show what you’re looking to buy, finding the best rate for you shouldn’t take very long at all.

In Summary

Bad Credit Financing…

  • Can be hard to get if you try to get them from service providers like car dealerships
  • Is best sourced from an external lender before you try to buy whatever you’re after
  • Will generally have a higher interest rate than normal financing loans
  • Isn’t impossible to get if you employ the services of a good loan broker

Reducing Cost of Bridging Loans

There can be a wide range of reasons behind getting a bridging loan as they’ve got lots of uses. Lately the amount of bridge uses currently being applied for has grown a great deal. This is due to the fact that other kinds of financial loans have become tougher to get leading to bridging finance being needed as a substitute solution. Given that bridging finance loans are just intended as a short-term choice, and may be more costly than many other finance options, the rise in their level of popularity has been principally a consequence of additional options being harder to secure.

Ever since bridging finance loans have grown to be more common, there’s been a rise in the quantity of bridging finance lenders and in the volume of finance accessible to bridging loan companies. People are noticing better profits from investment in bridging loans, in comparison with other investments. Additionally the greater number of loan providers and ever-increasing availability of bridging loan resources has resulted in a more competitively priced market causing loan providers to give better prices.

With fees going up for other types of loans, because banking institutions have found it more costly to raise money, along with the operating costs of bridging finance getting smaller, many customers are beginning go for bridging loans over other choices offered to them simply for the reason that a bridging finance loan provides the best value in terms of expenses.

Even so it’s crucial to look at what other financing alternatives are offered, particularly when you need a longer term type of loan. It will generally always be more affordable to go with the long-term finance choice from the outset, whenever you can, instead of applying for bridging loan uses to subsequently clear it using the long-term borrowing option.

Cash might be needed temporarily to simple manage an unexpected cashflow predicament as a result of your bank pulling out any overdraft facility. Rather than applying for a commercial bridging loan to fund the loss, asset refinancing may well give you a better alternative so long as you’ve got an appropriate asset that could be used. Asset refinance is often set up in a short time, provides low-cost method of funding and can also be spread over a range of repayment conditions.

A large number of bridging loans are typically for financing a property investment at an auction, since funds must be in place swiftly, within twenty eight days after a successful bid. Having said that there are first-rate buy to let mortgage plans available to you that could be set up within just two weeks, so if purchasing a property investment at an auction to rent than this approach could very well be a lot more appropriate.

If you are wanting to fix up or develop a current property, or build a new property yourself, a bridging loan can be utilised to finance the construction work. Possibly a more sensible choice might be a development loan, which is really meant for any such projects. The principle benefits associated with development loans is the fact that the funds can be issued in phases as it becomes necessary, which saves in interest fees, and a development loan permits facilities to be applied for which have more lengthy terms. Taking away tight time scales which can be linked to bridging loans will make life far easier and take away a significant amount of stress.

Car Finance Places You On The Top Gear

Fast car on open roads. It is a perfect picture for any car enthusiast. But you have to go to your work and also drop your kids to school. This is the real picture for most of us. We need to save time when we don’t have any. A typical individual has so many odd jobs to complete that a car can, without doubt, facilitate their accomplishment. Financing your car doesn’t fit your idea of the way of buying your car; then probably you are still stuck with traditional car buying methods. Shed your inhibitions with regard for car financing because it undoubtedly keeps in mind your financial caliber before furnishing you with a car finance loan.

Car financing has taken a new spin with regard to providing investment for buying a car. So, how do you finance a car? If this question leaves you baffled, then you have to go a long way in the process of buying a car. The term ‘financing’ in relation to buying a car connotes either rendering loan to buy the car or lease the car to you. You are probably concentrating on the former meaning. Many people are in favour of talking car finance from dealership for it seems like a convenient option. It seems easy; you select a car, fill out a credit application, and drive away with your car – all in a day’s work. Car finance through dealership will give you car finance on weekends and even at nights when other banks and credit unions are closed.

Seems convenient, isn’t it? But there is a catch. The dealer will be certainly charging you more for your car finance. Usually car buyers are overcharged by 3% on their car finance. A great number of complaints about car financing are related to dealers. 0% APR is not only attractive but lures the buyers to acquire up car finance not meditating if it is feasible for them. There are very few people who can actually get a 0% APR. Thus car finance deals usually fall midway thereby making car finance experience an extremely distressing one. You are buying a new car and probably for the first time, you certainly want it to compliment your enthusiasm. There are few elementary things that need to be kept in mind before taking that crucial primeval step in car buying.

First and foremost in car buying and financing is checking your credit score before you apply for a car loan. Many people are unaware of the fact that they even have a credit score. You can expediently check your credit score online. So, if you have bad credit history then probably you will be paying more interest rate for your car finance. If your credit score drops below 550, then probably apply for new car finance is not such a good idea. First repair you credit score. Repairing credit score requires little effort, helps you repay your debt and retain your credit report. Online car finance companies can get you car finance loan even if your credit score is lower than required. Your car finance loan can get approved in minutes. Online car finance companies have revolutionized car finance procedure. With lowest online car finance rates, no application fees, or down payments car finance companies provide a formidable competition to car dealers. Car finance companies have set a standard for providing car finance that is worth opting for.

70% of cars are obtained by some kind of financing. You can even finance a used car. The process is as effortless and undemanding as financing a new car. The essence to finding the right car finance is doing to research about your kind of car. Knowledge is power; you must be awake to this age old logic. When so much information frequently exists, then why not make use of it. Find out how much your car costs by comparing rates with local dealers. Very decisive, is cognizing how much, you can afford. Calculate, you monthly income and deduct your usual monthly expenditure to find out how much you can afford on a monthly basis. Compute carefully, otherwise you will find difficulty in repaying your car finance loan. And you definitely don’t want to fool around with your repayment plan because a lot is at stake. You can seek free advice for your own car finance online through credit unions and loan institutions.

You are a car enthusiast, a car consumer, a just a person who needs a car you ought to drive the best car. And why not drive the best car, when you have access to the best car finance plans. Car financing is a transparent route that leads you to become a car owner. Car finance loans are usually short term loans ranging from 36 to 72 months. Shorter loan term imply, lower interest rates and will prove to be cheaper. You have been working hard to select the car you want; there is a fairly good chance that you would not have to work so hard for car finance. So, sit back relax and enjoy the ride.

Online Application For Used Car Loans

Today, processing a used car loan is already an easy task. This can be tracked with the increased competition in car financing as brought by the advent of the Internet. This may still be considered a new business and an improvement in car loans, but the effects that it has brought to the people has been great. Gone were the days when an individual had to personally apply for a low interest car loan and accomplish different types of paper works. With the use of the Internet, the companies made the process faster and easier for the clients. With this, there are more Used Auto Finance that can be availed easily online.

Most individuals already know that they need cars in order to make their daily life easier. There is already a bigger market demand for new and used car loans since some people who needs are a car may not have the money to buy it in the mean time. That is why these lending institutions are offering their services to the individuals who would want to own a new car. The process of car finance is made easy today with the use of the Internet. You can already check for the availability of different types of vehicle loans and with it comes a better chance to get better rates and other offers that would benefit you. What you must do is to search for more offers as much as possible, compare rates and terms, and finally select one that would give you the best deal. There are different kinds of automotive loan and everyone can find one kind that suits his needs. Some people think that applying for low rate car loans only apply for those who have a good credit history. However, there are many companies that offer bad credit car loan, student car loan, and other types of poor credit car loan. With these choices available, you can find the type of loan that would be suited for your needs. You don’t need to have a good credit history to get a new car financed.

Through the different easy car loan companies that are accessible in the Internet, anyone can get a hold of the car of your dreams. When you apply for a new car loan online, you will experience different kinds of benefits primarily because the Internet is the medium that is used. The Internet can be accessed by any person today and that makes the auto finance loan companies to be easily availed by anyone. Thus, today, a person who would want to gain access to different kinds of loans can easily do it. There are more choices that can be opened to an individual and what the best way to make use of these choices is to exhaust them as much as it would make your Auto Finance Loan easier for you. Although there are some perks that can still be availed with the more traditional means of getting an instant car loan, you should still consider the offers of an online used car finance as it may give you the things that you need in a loan. With these advantages, anyone can now get the car that one likes and it would not matter if you have a bad or good credit history since you can still avail a loan.

Financing Options Made Simple

“NO MONEY DOWN!” “100% FINANCING!” “103% FINANCING”

Buyers love seeing and hearing those words. And why wouldn’t they? First-time buyers make up 40 percent of the home buying market. This is nearly half of all homes sold.

Consider this. There were just over seven million homes sold in 2005, not including new construction homes. This means that nearly THREE MILLION buyers bought their first home last year.

Marketing to this segment, if you are a real estate agent, is an absolute must! Of these first-time homebuyers more than four out of every 10 bought this home with no money down.

On average, first-time homebuyers put down less than 2%. Around 10 years ago, the average first-time homebuyer put down a little more than 10%.

I would say that nearly seven out of every 10 loans I do has 100% financing and it’s not just first-time homebuyers. However, most potential first-time buyers don’t even realize this option is available to them and that’s why this newsletter will focus on them.

The real estate market flourished over the last few years in large part to 100% financing for first-time homebuyers. Suddenly, buying a home is possible for nearly everyone. More first-time buyers have been able to enter the marketplace than ever before. Banks have become more liberal and lending standards have loosened. There are many, many ways to get 100% financing.

You can get 100% conventional financing with credit scores as low as 620 and a fairly recent bankruptcy.

You may be able to get a government loan with an even lower credit score. 100% financing is available for nearly every borrower. You can even buy a $2,000,000 home with no money down today. That’s two MILLION, not a typo at $200,000. Amazing, but true.

Many potential first-time homebuyers never think of buying a house because they don’t believe they have enough money for the down payment.

They’ve been told through the years that they need a 10-20% down payment to buy a home. Obviously, this simply isn’t true.

Let’s look at most of the 100% financing options:

1) 100% No Down Payment Programs.

These programs require the buyer to pay ordinary closing costs. These programs come in all varieties from 2, 3, 5, 7, and 10 year adjustable rate mortgages to 30 year fixed mortgages. All are usually available as interest-only too.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o 2.5%-3.5% of the total loan amount in cash required to pay closing costs and two month’s of your new loan payment in the bank for reserves.

o Stated income, stated assets and even No Doc is an option with decent credit.

o Plan on having a mid credit score of at least 660 if you cannot fully disclose your income to qualify.

o If you can fully disclose your income to qualify, your mid credit score can sometimes be as low as 580.

o These loans are designed for people who have some money for closing costs. You can qualify for this with credit scores as low as 580.

This is the most popular 100% financing option on my team.

2) 100% No Down Payment and Seller Pays Your Closing Costs.

The exact same loan program as #1, with all of the same loan program options above, but with a different twist. The seller pays all of the 2.5%-3.5% in closing costs. This is the way to go if your buyer has no money at all but fairly decent credit.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o The seller pays the 2.5%-3.5% of the total loan amount to pay closing costs.

o You are still usually required to show two month’s of your new loan payment in the bank for reserves.

o Stated income, stated assets and even No Doc is an option with decent credit.

o Plan on having a mid-score of at least 660 if you cannot go fully disclose your income to qualify.

o 580 mid credit score is usually the minimum required on full doc loans but plan on a much higher interest rate.

o These loans are designed for people who have no money for closing costs.

Nearly every loan program out there today allows for the seller to pay your closing costs. This means no money out of your pocket.

If you don’t have the necessary reserves or you don’t have the ability to get them, it is not a big deal, and you should still be able to get the loan. However, it’s important to notify your preferred lender of this immediately as this could change the availability of the loan program and likely your interest rate.

3) 103% Loan With No Down Payment, Little or No Closing Costs.

Maybe your seller refuses to pay for closing costs and your buyer has no money to close. Then 103% loan programs may be the way to go. This means the lender finances the closing costs as well. The requirements on this program are stricter and the options fewer.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o The lender pays the 2.5%-3.5% of the total loan amount to pay closing costs and ties this into your loan.

o You still may be required to show two month’s of your new loan payment in the bank for reserves.

o Stated income, stated assets and even No Doc is NOT usually an option regardless of your credit.

o Plan on having a mid-score of at least 620.

o These loans are designed for people who have no money for closing costs and the seller refuses to chip in.

The interest rates on these programs are higher and the program selection is more limited. If possible, it’s a better move to go for #1 or #2.

4) VA Loans

If you are a Veteran, VA loans require no money down and the seller can pay your closing costs. The rates are very good and the credit requirements are not very high.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o Must be a veteran in active duty, or honorably discharged.

o The seller usually pays the 2.5%-3.5% of the total loan amount to pay closing costs but the Veteran can pay too.

o Must fully disclose your income to qualify. You cannot go stated income or No Doc.

o You will not be required to show two month’s of your new loan payment in the bank for reserves.

o Stated income, stated assets and even No Doc is NOT an option regardless of your credit.

o Plan on having mid-score of at least 560 – 580 although there is no formal guideline on this.

o These loans are designed for Veterans only.

5) FHA Loans

This isn’t really a “No Money Down” option, however many first-time homebuyers have found that the FHA loan is one of the best alternatives when they don’t have much money to put down.

With an FHA loan, you could put down as little as 3%. FHA loans are easier to qualify for. If your credit is less-than-perfect, the rates on an FHA loan are usually far better than the sub-prime alternative that you may be facing. For example, if you have a 580 mid-credit score, your options may be FHA or a sub-prime loan. FHA would probably be cheaper for you.

Now, 3% may seem like a lot to come up with, but many people find that when they put their minds to it, it’s not that difficult. FHA allows this 3% to be gifted to you by a family member, employer, or even a charitable organization.

FHA loans do have very strict requirements and restrictions. Not all town homes and condos qualify, and there is a maximum loan amount you can get. You can check the FHA website at http://www.fha.gov for the lending limits in your area.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o You are responsible for the 2.5%-3.5% of the total loan amount to pay closing costs but the seller can pay too…all the way to 6%.

o Must fully disclose your income to qualify. You cannot go stated income or No Doc.

o You will not be required to show two month’s of your new loan payment in the bank for reserves.

o Stated income, stated assets and even No Doc is NOT an option regardless of your credit.

o Plan on having mid-score of at least 550 – 580 although there is no guideline on this, and you may be able to qualify with a lower score.

o If you are using a non occupying co-borrower or you have a roommate, renting a room from you, whose income you would like to help you qualify; this may be the best way to go.

Many other loan programs don’t allow you to consider these sources and do 100% financing.

6) Owner Financing

Owner financing means the owner (or seller) finances all or a portion of your home purchase.

For example, you might borrow 80% of the value of a home from a mortgage bank, and “borrow” the other 20% from the owner. In this situation, the owner “carries back” a second mortgage. Or he could carry 100% of it.

For the average homebuyer, owner financing is very difficult to find and requires some tricky negotiating. In my opinion, it’s generally a bad idea.

However, if your credit score prevents you from getting a 100% loan, this may be the only way to go. If you have successfully negotiated a deal where the seller carries the mortgage, you should contact a skilled attorney to protect all parties, especially you.

Sellers don’t usually want to carry loans for 30 years like mortgage companies do so plan on your seller-financed loan having a much higher interest rate than a mortgage company can offer you.

Also, plan on having a balloon payment of some kind. Two to five years is normal. This means you will have to pay the loan in full or refinance it with a mortgage lending institution at the end of the balloon period. If the seller goes into bankruptcy or has serious personal financial troubles and loses the house, you may be out as well, including all of the money you have in the property.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o Closing costs are usually minimal.

o No minimum credit score required…just an agreeable seller.

o No income disclosures are usually necessary.

o You will usually not be required to show two month’s of your new loan payment in the bank for reserves nor any other banking information.

o Risk is very high as you are not dealing with a trusted institutional lender.

o Plan on higher rates and unconventional terms.

You shouldn’t rule out owner financing if you have poor credit. Just keep in mind that by looking for someone who is willing to help finance your purchase, you severely limit your choices and there is a tremendous amount of risk involved. Protect yourself with strong professional advice from your real estate agent and an attorney.

9) Lease-To-Own

With the tremendous increase of homes in inventory, combined with few who can afford them because of the rapid increase in value, this option is becoming more and more popular.

With a lease-to-own, or a lease option, you lease a home, like normal, but make larger payments in order to begin accumulating a down payment. For example, if a house would normally lease for $1200, you might lease it for $1500/month, with $300/month going into a special “savings” account. At the end of a specified period, you buy the home using the money in that special account as your down payment. However, if you decide somewhere along the line not to purchase the home, all of the money in the special account then goes to the seller.

Think of this option as renting with a forced savings account. If you can find someone willing to do this, and your credit isn’t the best, it’s not a bad option. However, most people who are selling their homes need their money out of it in order to buy their next home, so finding someone who is willing to lease to you may prove more difficult.

Also, it’s important to keep in mind, your monthly rental payment will likely be far less than the mortgage will be when you go to purchase the home. This is because rental prices have come way down, due to the vast inventory, while rising interest rates and higher values mean a higher mortgage payment for the same home.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o Closing costs are usually minimal. Probably only a minimal security deposit.

o No minimum credit score required at the time of the lease option…just an agreeable seller. However, you will need to make sure your credit is good enough to exercise the option to buy the house at the time the lease period ends.

o No income disclosures are usually necessary.

o You will usually not be required to show two month’s of your new loan payment in the bank for reserves nor any other banking information.

o Risk is very high as you are not dealing with a trusted institutional lender.

o Plan on higher rates and unconventional terms.

100% FINANCING–NOT JUST FOR FIRST-TIMERS

100% financing is not just for first-time homebuyers. It’s for everyone and can be used to help you get more real estate business, especially in this tightening market.

I did a loan three years ago for Dave and Diane. They bought a beautiful $500,000 home…with no money down. The seller paid all of the closing costs.

Dave called me a few months ago to get pre-approved for a new home with a $1 million price. I was excited for them and asked him for the name of the agent he was working with so I could send the pre-approval letter over.

Dave said he didn’t have an agent yet. In fact, he didn’t even have the home picked out yet. He explained he was interviewing agents to list his current home, which he estimated was now worth $850,000. Once that home sold, he was planning on using his roughly $300,000 profit, after commissions, to put down on the new home.

A month later, he called and said he and Diane had found their dream home. It was $1 million, on the golf course, and was the listing of the agent who was representing his house as well. The agent had consulted with the seller of the $1 million home and they agreed to offer him a substantial discount if he would buy it and close within 30 days.

The problem was his original house hadn’t sold. “Aaron, we really want this house. If we don’t buy it now, I just know someone else will soon. What can we do?” We financed his new home…with no money down. The seller paid all of the closing costs. To make it even better for Dave and Diane, we structured the loan in such a way where he was not penalized, from an interest rate perspective, for having to make this tough decision.

We gave him a 70% first mortgage and a 30% second mortgage, as opposed to your traditional 80/20. This enabled him to get the best rate possible on a long-term first mortgage, with no need to ever have a costly refinance. The loan will eventually look the exact same as if he had sold his home prior to this acquisition. Dave and Diane were thrilled!!! When their home eventually sells, and it’s currently in escrow, they will simply pay off the second mortgage. They have the comfort of knowing they have a great first mortgage they can live with, in their dream home, for many years to come.

Find Cheaper Car Loans

Applying for car finance is a key step in your quest to acquire a car upon choosing one that you wish to buy. After you have determined that you would like to buy a car, is is essential to plan how you will finance it. You have a number of choices of car loans from which to choose. These options are able to be assessed for practicality using a auto loan calculator to establish the actual amount it will cost you to plan to have for the auto loan.

To get the best auto vehicle refinancing option, you will need to take a few of things into consideration. These include:

* How much interest rate you will be charged.
* What the amount fees and charges are part of the car loan option?
* Is there some early break fees if you choose to complete paying your loan prior to the full loan term?
* The time it will take to have your car loan approved and completed.
* What are the minimum obligations for those who are wishing to obtain motor vehicle finance; can you meet them?
* Does the lender accept more payments on the vehicle finance accorded, and if so, how or will your ongoing repayments be affected?

When considering car loans, you are able to choose between a secured car loan and a unsecured loans. Personal loans customarily comes with greater interest rates whereas secured loans draw a lot lower rates. In spite of this, secured finance require full insurance up until you have offset your finance, and you are still required to offset the finance if you sell your vehicle.

Motor Vehicle Loan Packaging

Before opting for motor vehicle packaging, you possibly will choose one that includes a few particular items, for example:

* Warranties on mechanical breakdowns
* Car insurance
* On road costs and taxes

Certain things will only be added to your loan once they are accepted by the lender and will be financed in unity with the same terms of the car finance agreement.

Used Auto Financing

You can get car finance using your used auto. Certain lenders will enforce a number of penalties on second-hand cars. Used cars that are seven years or older might not be tolerable to various financiers for secured car loans. If you are not certain whether or not your vehicle will qualify, check with the finance company or exercise the services of a expert broker specialized in auto financing.

New Vehicle Financing

The prevalent interest rate and the total that you loan are the major determinants of the amount a new auto refinance will possibly cost. This information may allow you to establish the monthly installments you should make and the time you can take to finalize the credit. This too will be decided by the quantity you are able to pay every month.

Auto Financing Terms

A auto finance loan is customarily agreed for a greatest of 5 years. Certain lenders prolong this amount to seven years. For cars in excess of seven years, a lot of lenders may consent to a motor vehicle finance for a shorter time.

Paying the car finance is accommodating; your can make installments once each week, fortnight or month. Several lenders agree to seasonal, annual or structure payments that will be in tandem with your company cash flow, for several of their commercial goods.

Vehicle Insurance

You have to get comprehensive auto insurance if you desire to submit an application for secured car loans. You may request the lender to include the first year of insurance in the secured automobile finance. You should consider however that the total quantity does still must be fulfilled in the amount of time outlined in the terms, and you still must pay the interest for the entire secured vehicle finance.

Other Automobile Refinance Alternatives

You can go for postponed payment structures, where your first payments will commence at a later date. Traditional vehicle finance necessitate borrowers to make the opening repayment after a month of been given approval.

The interest only repayment option, which consists of balloon payments, is also obtainable. Be aware that you will however pay extra interest if you opt for this option.