Posted by admin on May 26th, 2011
Sub-prime lenders now offer financing packages with zero down. Interest rates are higher on these types of loans, but they make purchasing a house easier. And unlike a conventional loan, there is no private mortgage insurance required. There are two types of zero-down mortgage packages, each with their own requirements.
Types Of Zero-Down Loans
100% financing, as it names implies, offers complete financing of your property. The other option, 80/20, finances your mortgage with two loans. Both loans may be carried by your lender, but sometimes the seller or a second lender is required to carry the 20% mortgage.
100% financing is easier to deal with, but not all lenders will offer this type of home loan. 80/20 financing is more common, but takes some negotiation if the seller is involved.
Qualifications For Zero-Down
Each lender has their own criteria for determining who will qualify for a zero-down loan. Most sub-prime lenders require any bankruptcies or foreclosures to have been at least twelve months ago. A conventional loan requires these to be discharged two to four years ago.
While a credit score of 600 or higher is best, large cash reserves can also qualify you. Six to twelve month’s worth of cash reserves in the form of savings, money market, or other liquid assets are considered ideal.
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Posted by admin on April 14th, 2011
People usually apply for a second mortgage or home equity loan when they need money for debt consolidation, to pay large expenses or for home remodeling and home improvement. Second mortgages are generally categorized as fixed interest rate home equity installment loans (HELOANS) and adjustable mortgage rate home equity lines of credit (HELOCs). Which you choose depends on your needs, but the application and approval process is similar for both. These nine tips will help your loan process be as hitch-free as possible:
1. Compare options like mortgage refinancing and other loan options to determine if a second mortgage is the best choice.
2. Make sure you can tell lender what the purpose of the loan is. Your answer will help determine whether or not you are approved.
3. Check your credit report for errors and get your FICO scores (myfico.com/12) because lenders will review your FICO score to determine your loan rates. Check “How to Improve Your Credit Score” for more information on cleaning up your credit.
4. Compare several home equity loan options. Discuss the loan programs with your broker or lender and find the best loan for your situation. Getting a good interest rates isn’t a bad idea either.
5. When applying for a loan, you will get a mortgage checklist from your lender containing the list of paperwork you need to close the loan, including:
• Copy of deed to property.
• Recent tax appraisal.
• Last two years’ W-2′s, tax returns and current pay stub, or two years’ tax returns if self-employed. Be sure to include all schedules. Read the rest of this entry »
Posted by admin on July 5th, 2010
There is an unfortunate stroke of luck and you have engrossed yourself neck-deep in bad credit. Credit repair seems to be the need of the hour. You need a dolphin-jump to free yourself from the shackles of bankruptcy and you are out of ideas. You are loaded with bank notices and warnings. How do you handle this stressful bad credit? You are just a layman and bankruptcy can dig up nightmares for you. This is really getting on your nerves. Well, the very sensation seems stinky. It feels miserable if you are glued with bad credit and you need a quick guide to credit repair.
A few handy tips, well imbibed can raise your eyebrows and get you exercising your jaw. These can give you a reason to smile and can set you back on your track. But self help may be the best help. You don’t need to be depressed. Bad credit can be repaired through a few systematic steps and make you credit- worthy in some time.
5 step guide to credit repair
1. Getting your credit reports
There are three chief credit government departments that regulate these credit functions. TransUnion, Experian and Equifax. You need to research up and get to know their opinions about your case in specific. There is every chance of diverse viewpoints amongst all three. Those in bankruptcy hunting for credit repair need to report to only one particular bureau to whom they subscribe. Thus people with bad credit don’t need to report to all three. You can get reports from all three for $9 each and can get them free if you have been denied insurance, employment or credit due to bad credit. You can obtain them in 60 days after your rejection. The most considerable report can be considered by you as an option.
2. Examine the reports
Once you obtain the reports check them in every nook and corner for any kind of mistakes. The reports may be erroneous as these bureaus do not cross check the information provided by the credit companies to them. Be sure to look for any obsolete information and erroneous account records. Be painstaking enough while organizing and preparing points of dispute. If there are any false points there you can look to rectify them through your good habits and timely billings and fight bankruptcy.
3. Dispute reporting
Report the points of dispute to the credit bureau after thoroughly preparing a list of errors and their proper justification. Remember to keep the supporting documents, letters, identity proofs, address proofs and other important documents that can get your errors rectified. You must then send them to the credit authority to rectify the errors.
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Posted by admin on February 15th, 2010
A bad credit home mortgage refinance is possible for people with previous credit problems. The interest rates will not be as low as those for consumers with good credit but you can still end up saving in the end.
There are several questions you should ask yourself when considering a home mortgage refinance. First of all you need to access your credit situation. If credit has been a problem for you in the past, you will want to take control of your finances before applying for a mortgage refinance loan. Refinancing can either help or hinder your current situation.
You will need to calculate all of the costs involved in refinancing before making a decision. A lower rate of interest and a shorter loan payoff time are two desirable perks of refinancing. Some people are only interested in lowering their monthly payment amount. However, you will need to remain in your home long enough to reap the benefits of refinancing. It makes no sense at all to refinance your home if you plan on moving within a few years. It is a good idea to figure how long it will take to recover the costs of refinancing. Some loans may offer a lower rate of interest but have excessive closing costs and fees. You will want to be aware of all costs involved including any additional income taxes you may be charged.
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