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100% Home Loan Financing – Flex your Muscle

By admin on Sunday, July 18th, 2010 | Comments Off

With the current “mortgage meltdown” we hear so much about these days, your average consumer thinks that the days of 100% financing have gone by the wayside. True, you are hard pressed these days to find a bank or lender that will want to carry a second mortgage that combined with a first mortgage adds up to 100% financing. That’s because if there is a default, sitting in second lien position is particularly dicey. Too much risk is involved. And since, in recent history, that scenario of the 80/20 combo was the most common 100% financing vehicle available to a certain group of consumers (non first time homebuyers), there’s a misconception out there that 100% options are all but dried up.

But, a-ha! There is hope for someone who has great credit but prefers to invest his/her assets elsewhere when rates are so low. It’s called the Flex 100. And it can apply to purchases and refinance transactions.

I heard an analyst mention on television the other day that mortgage money is so cheap right now it’s like a sale at Macy’s. That made me chuckle, but it’s true. In which case, why not invest your money elsewhere if you qualify for 100% financing. After all, the homes are still appreciating in most areas, but not at the stellar rate we saw in the past.

The Flex 100 requires you to invest $500 of your own cash towards the transaction, so I guess it’s technically not 100% financing, but it’s pretty darn close. And no, you don’t have to be buying your first home to get this deal. You can actually have owned a home in the past three years! However, it does apply to financing your primary residence only. You can’t get this deal for that nice cabin in Gatlinburg you want to use on the weekends or for that great rental down the street you think you can get a good deal on. You’ve got to live in the house to qualify for this financing.

But you can do a refinance, as long as it’s not a “cash-out,” meaning you’re not paying off debt or taking equity out of the property. It must be a rate term refinance only. However, you can pay off that second mortgage or home equity line of credit you hate, IF you obtained that 2nd lien mortgage when you got your first mortgage (a piggy back closing, we call it). Or to make it clearer, you originally had that 80/20 combo mentioned earlier. If you got that home equity mortgage a month or two after your initial closing to build a deck or payoff a credit card, than it that won’t work for a Flex 100 refinance.

What about your credit score? Well, it will affect the price you get, but there is no “minimum” credit score required for this program. You just have to get an approval through the automated underwriting system required. But be realistic – if you’ve got “iffy” credit, you probably won’t get an approval. A borrower with a credit score below a 620 would probably have to have a low loan to value or debt to income ratio for a chance of an approval.

A Flex 100 may or may not make sense for you. But hey, at least you know it’s an option. Your lender should be able to help you determine if this opportunity to flex your mortgage muscle makes sense for you.



Quick Property Sale

Achieving a Quick House Sale

By admin on Saturday, July 17th, 2010 | Comments Off

There may be periods in a homeowner’s life when his or her personal circumstances change dramatically and it makes economic sense to sell the house as quickly as possible, thus releasing the capital that has built up in it. The reasons are many and varied and may include:

1. The breakdown of a relationship. Whether the partners in the house are married or not, there may be financial pressures caused by the breakdown of the relationship. One of the partners may have started another relationship, in which case they may require capital release in order to finance another mortgage or rental costs. Some of the Sell and Rent Back companies will buy the house very quickly, and rent it back to the remaining partner at a competitive rate.

2. The homeowner may have to move with his/her job, either within the UK or abroad. If this move is seen to be fairly permanent, then capital will be required to finance a new home in the new location. For those relocating or emigrating, some of the Sell and Rent Back companies will buy the house in as little as 14 (working) days.

3. If the homeowner has been in arrears with mortgage payments they could fear the prospect of having their home repossessed and see that a quick house sale would be a financially better alternative and enable them to avoid repossession.

4. Should one of the partners in a house die, the remaining partner’s income may be insufficient to cover the mortgage, then again, a quick house sale may be seen as a beneficial alternative to having the home repossessed.

5. In a falling house market, to sell your house now may be a shrewd move. If financial experts project that house prices may fall 20%, then the homeowner could take the view that selling the house quickly, without Estate Agent’s or Auctioneer’s fees, for as close to its current value as possible, will reduce the capital loss. The house could then be rented back at a competitive rate until the market is viewed to have ‘bottomed out’.

The average level of personal debt is increasing, and a quick house sale may be seen as one way of paying off all debts in one go. This is especially useful if you suffer a reduction in income which is viewed as a temporary situation. To sell the house, pay off the debts and live in rented accommodation for a while may be a sensible strategy. Indeed, with many of the Sell to Stay companies, you can sell your house quickly and rent it back at a competitive rate.

There are many routes to achieving a quick house sale.

1. Estate Agents – Estate Agents will always tell you that they can sell houses very quickly. This may be true when the market is rising and there is a lot of competition for every house, but when prices flatten, or indeed fall, houses stick and your ‘quick sale’ may be lost.

2. Auction – Auctions are the ultimate vehicle to value a property. Any property is only worth what another will pay for it, and an auction with many interested parties in the room will produce the best market price for a property with a very quick sale.

3. However, anyone who goes to an auction will be expecting a bargain – they view the items that go to auction as being ‘on-offer’ and only there because they have failed to sell elsewhere. You may not get a good price at auction.

4. Sealed Bid – Requesting sealed bids is another good way of valuing a property. However, the process suffers from the same market pressures as the previous two. From the buyer’s point of view, putting in a sealed bid when the market is rising is a worrying process, as he/she doesn’t want to bid too low for fear of losing it. This can result in some extremely over-priced bids. On the other side of the coin, in a falling market the worry is that the buyer may bid too high and end up with a home in negative equity. This results in the seller receiving a number of disappointingly low bids.

5. Sell and Rent Back – Sell and Rent Back companies will buy your house very quickly – many of them promise to buy it within 14 (working) days. They will give you 80% or more of the value of your house – but that’s it! You don’t have to pay the Estate Agent or the Auctioneer, just your legal fees. Furthermore, many of the Sell and Rent Back companies will allow you to stay in your home and rent it back at a competitive rate.

So if you need a quick house sale, you must try to strike a balance between speed and the amount of money you will receive from the different methods of selling your property.



Sell and Rent Back

Why 30 Year Home Loans Are Being So Popular?

By admin on Thursday, July 15th, 2010 | Comments Off

When my dad bought his home, he went for a 30 year home loan. As a matter of fact, most of the homeowners I know have acquired their home via that home finance offering. But why it has being so popular over the years?

A 30 year home mortgage used to be the first choice of most borrowers, because since the total payments are spread over a longer period of time with the interest rate set for the entire time of the mortgage’s life. 30 year home loan rates are an industry standard but is it the right choice for you?

As we mentioned, the plus side for a 30 year home loan is lower monthly payments. This attraction is somewhat dimmed by the fact that you pay thousands of extra dollars in interest. But, on the other hand, your interest is 100% tax deductible which does lower your after tax cost at the end of the equation. It also offers you some flexibility so that if your financial situation changes and you have more money you can pay it off in less than 30 years, this while keeping the low monthly payments. The fact that your payments might be smaller gives you the option to purchase a larger roomier home.

To show an example of the interest difference between 30 year home loan rates and one of the other rates. On a 30 year, 100,000 dollar loan using 7% interest rate your monthly payment of interest and principle would be $665.30 dollars. Over the next 30 years you will have paid $139,511.04 in interest alone. Now with a 15 year home loan rate on the same amount you will pay $871.11 per month and over the next 15 years, you would pay $56,799 in interest. This would save you $82,712 dollars.

If you have the will power to invest the savings from the monthly payments, it still could be a good choice to go with the 30 year mortgage. Especially if you can find an investment that the long term payoff matches or exceeds what you would save in a 15 year mortgage. Another factor to consider is how fast you want to accrue equity in your home or to own it out right. 30 year home loan rates take much longer to build equity.

30 year home loan rates are certainly attractive and the vast majority of home buyers get 30-year loans because that is the longest home loan available today. Experts agree if they could get a 35- or 40-year loan, they probably would. There are many other options to consider. Probably the biggest question you have to ask yourself when considering a loan is what are your financial goals? What loan plan will help you the most to reach that goal? It is clearly to your advantage to look into other loan options for the best loan available for you and your financial goals. It may surprise you that because of your personal situation there may be other plans more suitable for you, such as a 15 year mortgage, for example.

Before committing to a long term loan, have a clear idea of your financial goals, chop around for alternatives from different lenders and if possible, seek professional financial advice on what best for you. It will be time and resources well spend.



Rent Back Fast

Rescue your Credit Rating With a Fast Property Sale

By admin on Sunday, July 11th, 2010 | Comments Off
If you have problems with credit, then you may need a fast property sale. Bills can easily get out of hand. When you have loans, store cards and a mortgage, it’s easy to let a payment slip here and there. Now that lenders have tightened up on bad debt, some people may end up in court with the risk of having their home repossessed. If this is happening to you, don’t be afraid. A fast house sale can repair your credit rating and put an end to repossession with a Rent Back deal.

It’s a good idea to do this so you can get mortgages and loans when you need them. With a sound financial history you can get these products easily, but if your financial circumstances are patchy then your application for a mortgage, store card or loan may be refused. You may find it more difficult to manage your finances and it may be impossible to spend on large items.

We buy houses for cash fast, so we can help you recover if you have problems with:

Loan arrears or defaults

Unpaid balances on cards

Repossession

County court judgements

Mortgage arrears

Unpaid utility bills

The Solution To Your Financial Problems

If you want to save your credit history then you may need a fast property sale to help you with financial recover. Be sure to protect your credit rating, because it’s hard to repair it once it’s poor. When thinking about fast cash loans UK property owners should consider a fast property sale. With a fast cash loan you can repay your debts.

If you’re wondering how a quick house sale can help, think of it this way. You will be taking positive steps to sort out your financial problems. Your creditors who are trying to take your home will be happy if you try to repay them, and that’s a major benefit of a fast property sale.

As a homeowner, you probably have lots of equity in your home. If you unlock it, then you can fix your finances quickly. At Fast House Buyers, we have assisted many property owners by purchasing their home. It’s a quick process, with sales completing in around four weeks. That’s just a month till you have cash in hand. When you agree to a fast property sale you say goodbye to:

The costly process of getting your home ready for sale

Legal and estate agents’ fees

repossession

What’s the Low Down on Loan to Value?

By admin on Saturday, July 3rd, 2010 | Comments Off

It’s not very often that a borrower takes into heavy consideration what his loan to value is when shopping for a loan.  In fact, if the subject is brought up by the customer, it’s mostly in relation to avoiding paying monthly mortgage insurance.  But sometimes, a loan to value can affect even more aspects of your loan – like pricing and approval!

What is loan to value?  Well, it’s exactly what it says.  The loan amount compared to the value of the home you are buying or refinancing.  For example, if you are buying a $100,000 home, and your loan amount is only $50,000, your loan to value or “LTV” is 50%.  It’s also very common to refinance a home to obtain a lower LTV and drop mortgage insurance that was before required.

Different types of loans have different minimum requirements for LTV’s.   With primary residence purchases, for instance, an FHA loan can have as high as a 97.75% LTV (soon to change to 96.5% in 2009).  A conventional loan can have as high as a 97% LTV (but more common is 95% LTV).  VA and Rural Housing loans can have 100% LTV’s.  People who have cash to put down on the property they are buying and financing with a conventional loan oftentimes try to amass 20% of the purchase price in order to avoid mortgage insurance.  Mortgage insurance is required when your LTV for a primary residence is above 80% and is issued by independent mortgage insuring companies like Genworth Financial or PMI.  Fannie and Freddie, the big purchasers of conventional loans, will require one of these or other approved companies issue mortgage insurance unless the loan has an 80% LTV.  And if you’re refinancing the home you live in?  The whole grid of acceptable LTV’s changes for the most part, with a few exceptions.  And furthermore, if you’re talking about investment properties, it’s another can of worms.

But when else does LTV mean something?  Consider when a loan specialist prices your loan.  Oftentimes there are pricing differentials based upon the loan to value.  For instance, if you carry mortgage insurance and your LTV is 85.01% or higher, you might actually get a better interest rate than if you had an 85% LTV (but don’t get too excited because your monthly mortgage insurance will be higher).  Or if your LTV is 60% or lower, you might also get a better interest rate.  If you are close to tipping the scales on one of these ratios, it may be to your benefit to ask your loan specialist how close you are to a pricing break one way or another.  You’d be surprised to find out it might change your mind as to how much money you decide to put down on your loan. 

And guess what else?  A low loan to value may be the difference between loan approval and loan denial.  Why is that?  Because if you are investing enough of your own money into the equity of a property, chances are you won’t default on the loan.  And if you do, it’s probably a last recourse.  Not to mention, the lender who holds the note won’t lose money because there is enough equity in the property to cover foreclosure costs, re-sale costs and any value loss from an upside down market.  The lender is covered.  So, the lender will consider the loan less risky and a higher debt to income ratio is tolerated when reviewed with a high credit score. 



Sell and Rent Back

Use a Fast Property Sale When you Need Cash Fast

By admin on Thursday, July 1st, 2010 | Comments Off
Several people need cash fast to pay off their mortgage arrears or repay their debts. A fast property sale might be just what they need to help them to do it. If you want to know how to make fast cash so that you can take control of your finances, then it may be time to think about using some of the equity in your home. Sometimes it’s difficult to get hold of the cash you need to pay off your creditors. Getting a loan means having one more person to repay. Even using low interest or no interest credit cards means something else to pay attention to and a big bill when the rates go up. Trying to pay off your debts this way will take a long time and will add to your stress.

However, a fast property sale offers a better way. As a homeowner, you are likely to have equity in your home which will repay the debts you owe and still leave some cash for you to spend. A fast property sale means that you can use that money to find a new place to live, whether you choose to buy our rent.

How do I get a fast house sale?

An open market sale through an estate agent will not give you a fast property sale. Most people sell their homes this way, but the process is anything but quick. It can take several months and you won’t know that the sale will go through until the contracts are signed. If you need to repay your debts, then you could do without the stress of waiting several months for money which might not arrive.

In addition, there’s the cost to think of. With an estate agent, you have to pay their fees, legal fees and valuation fees. While you’re waiting for the sale to complete, your debts could continue to mount up. Household bills, council tax and your mortgage will keep your finances unsettled. Who needs the worry and hassle of selling on the open market and hoping that the property chain won’t break? Not you, especially since there’s another way.

Fast House Buyers offers a Quick Property Sale

Use House Buyers for your fast property sale and you will get the cash you need fast. We are a fast cash buyer and we buy direct, offering a guaranteed sale. There’s no need for people to view your home. We will offer a fair price in cash after valuing your home. Once you are satisfied, we can complete the deal within four weeks or less, helping you become debt free fast.


Home Loan Emi: Getting an Owned Home is not Difficult Any More

By admin on Wednesday, June 30th, 2010 | Comments Off

 

Most of us cannot afford to build our own homes. This may be due to scarce financial resources or unavailability of land or the absence of a desire to live in an owned home. Whatever the reason may be, there is no denying the fact that an owned home is always better than a rented accommodation since it saves valuable finances and is a valuable long-term investment by all standards.

In context of the Indian housing market, it can be clearly said that the home loan borrowers are happy customers these days, all thanks to the customer-friendly terms, conditions and plans. The reduced home loan EMIs due to intensified competition have opened the doors of personal prosperity and asset accumulation for many home loan aspirants these days.

Due to the emergence of new market players in the Indian housing loan market, the interests of home loan aspirants have blossomed to a considerable extent. There is a remarkable difference in the Indian loan market of yesteryears and today. The changing market trends and attitudes of the financial institutions as well as the other lenders have bolstered the overall growth and prosperity of the Indian housing loan market.

The industry and customer-friendly guidelines issued by the Reserve Bank Of India (RBI) have also strengthened the market norms and attitude. If we have a close look at the home loan EMIs rates for the last few years, we can easily conclude that the reformative measures introduced by many financial institutions and the Indian government in all these years have contributed significantly in an attempt to grab the attention of home loan aspirants. The home loan EMIs have helped the middle and low-class income earners to start thinking about their own homes. This is evident from the fact that in the last two years, the majority of customers asking and/or availing the home loans belonged to these economic classes. The option of making an equated monthly instalment rather than making a lump-sum payment obviously encourage more home loan aspirants.

Some of the most eminent Indian financial institutions such as State Bank of India, HDFC, ICICI, Standard Chartered and Punjab National Bank etc. have opened their hands to greet the home loan aspirants. The plans and policies of these banks have motivated the working class of the country to strive for an owned home rather than living the life of misery in rented or PG accommodation.

A prospective home loan borrower must consider certain things before starting the search for a lender. He must be ready to spend some of his valuable time in understanding the present home loan market trends as that will help him to get effective bargains without losing his focus. The advice of a financial expert, who is dealing in the arena of home loans, is highly recommended since he can offer a complete insight into the complexities of the housing loan segment.

Home loan in India can be taken by any individual who is of the age of 18 years and holds the citizenship of India. Some of the banks are also offering the home loans to NRIs, subject to fulfilment of certain pre-defined conditions. The loan applicant must have a regular source of income and preferably must be enjoying a good credit rating. He must have a valid identity and residence proof such as Government ID card, PAN card, passport, voter ID card and bank statement with address etc. The loan formalities are quite easy, making it pretty easy for the loan aspirants to obtain such loans.

Thus, it can be easily said that the reducing home loan EMIs have surely helped the Indian masses to think beyond the self-defined limits.



Sell and Rent Back

How Can I Sell My Home Fast to Stop Repossession?

By admin on Monday, June 21st, 2010 | Comments Off

Taking out loan for big purchases or mortgages on homes is a very common phenomenon. Many people all over the world make use of such loans whenever they wish to purchase something that is too expensive to be paid out of their own pocket. Under these circumstances, we should not be surprised at the large numbers of people who fail to pay their debts and fall into arrears, especially given the fact that the terms set by banks and other financial institutions for such loans are more and more flexible. Whatever your reasons may be for not meeting the terms of the loans and falling behind on your payments, the financial institution that you borrowed from can make use of its right of ownership of the property and sell it in order to recover the loan. This is called repossession.

There are cases when all it takes is two months of not paying your installments and the lender can start all the repossession proceedings. What are your options when you have fallen behind on your payments but you still want to keep your home? How can you stop repossession?

The number of options you have depends on many factors, such as how much you are able or willing to pay to your lender, how many months you have fallen behind, or how advanced the repossession process is. At an early stage, you can try to organize your finances better in order to be able to make your payments in full and on time, or you can discuss your situation with the lender and try to agree upon a way to get back on track. However, if you are way passed this stage, your options become fewer and fewer. Still, even if you have a court date, you can stop repossession. All it takes is that you stay informed and weigh your options carefully.

You have to keep in mind that repossession can affect you and your family in a number of ways. First of all, you run the risk of losing your home, and this can have a series of serious repercussions. Secondly, you have to stop repossession because it will affect your credit history seriously, and you may not be able to take out another loan for many years to come. Moreover, why lose all the money you have already invested in your home, when you can go on living in your home as tenant and buy it back several years later, when you will have managed to get back on track with your finances?

When you want to stop repossession and you don’t have too many options or too much time to do so, your best option may be to sell your home fast and rent it back, so that you and your family can go on living there. But everyone knows that property sale is generally a complicated and lengthy process, one that will most likely not be completed in due time.

Many homeowners facing repossession ask themselves “how can I sell my home fast?” and they often dismiss this option because they think that time is of essence when trying to stop repossession and property sale takes a lot of time. What these people do not know is that there are many investors who can buy your property fast. The sale process can be completed in a matter of weeks, instead of months, leaving you with the option to rent back your home and with a lot of cash to settle your scores with your initial lender.

Other homeowners ask themselves “should I sell my home fast or should I try refinancing?” It goes without saying that the final decision is yours alone, but don’t take too much time to dwell on it, as you may end up with no option at all. As has been said before, if you sell your home fast, you will have quick access to cash and the ability to get back on track with your finances and make a fresh start. Furthermore, you can rent your home back and go on living there as a tenant until you have the money to buy it back. On the other hand, refinancing may solve the problem for a while, but your interest rates and payments may be as much as double, not to mention penalties and the impact on your credit record.

For more resources about Stop repossession and even about sell my home fast please check out this webpage http://www.fastpropertyhelp.com



Rent Back Fast

Veteran Administration (va) Loans – Thank You for Your Service

By admin on Sunday, June 20th, 2010 | Comments Off

In 1930, Congress and the President established the “GI Bill” which allowed the Veteran Administration (VA) to coordinate benefits for its service people.  One of these programs, known as the Home Loan Guaranty Program, was created to help returning veterans and their families assimilate back into civilian life after sacrificing so much personally for their country. 

 

Who qualifies for VA loans?  If you served in the military, naval or air service and are active duty or released from duty for reasons other than a dishonorable discharge, you may qualify.  You had to serve for 90 days active duty or 181 days consecutively in peacetime. If you served less than the minimum requirement because of discharge or service connected disability, you may also qualify. In addition, if you are the surviving un-remarried wife or husband of an eligible service member who died for his/her country, you may too be eligible.  This program was designed to reward you and your loved ones for your service.

 

“The VA program, in general, is an exceptional program.  Many veterans don’t know it can even benefit them if he/she is overseas.  We’ve been helping active duty service people by putting their families in homes, and giving them peace of mind that their loved ones and their immediate needs are being taken care of while they’re away”, reflects Jamie Utton, Director of Product Development at Mortgage Investors Group.

 

These loans are available only for a primary home you intend to occupy.  You can’t go and buy a beach house for weekend use with it.  However, you can also use your eligibility to refinance your primary residence and pay off debt (except for Texans, for some reason, they don’t allow it in that state).  Or, if you had a VA loan prior, and the interest rates have dropped dramatically, you can do a “streamline” refinance – no worries about paying for a new appraisal or the hassle of verifying your income.  You’re all set to go.

 

So what makes the VA loan stand out above other types of financing? It allows for 100% financing for loans up to $417,000 with no reserves (checking and savings money to burn) required. The loan amounts allowed go up to $1.5 million, but you’d have to put some type of down payment into the transaction if you want to borrow that much money, plus show you have enough money to pay your mortgage for two months sitting in the bank if you need it.   And if you’re buying a home, the program allows for the seller to pay up to 4% of the closing costs, based upon the purchase price.  Basically, you can get into a home for very little or no money at a more than affordable market rate.

 

And the best part?  No extra money is added to your payment for mortgage insurance if you put a less than 20% down payment on the home.  That’s a pretty unique feature that makes this loan more affordable than others.  Most of the time, the veteran  will be required to pay a VA Funding Fee, but it is financed into the loan amount.  So, the funding fee is not an out of pocket expense for closing.  A veteran can be exempt from paying the funding fee for different reasons, including service connected disability, or if he/she is a surviving spouse of a veteran who died in service or from a service related disability.  And regarding credit scores, the VA loan program has more flexibility than some other programs offer. 

 

If you think you may qualify for this loan, let me first of all say, “Thank you.”  I really appreciate the sacrifices you’ve made for this country.  And if you’re looking to purchase or refinance your home, call a lender today who specializes in VA loans, and take advantage of this great benefit.



Quick House Sale

Stop Home Repossession

By admin on Thursday, June 17th, 2010 | Comments Off

If you are facing the prospect of having your home repossessed, you may think there is no way to stop the process. However, there are options to consider that can help to stop repossession of you home.

There may be no more painful an experience in our society than home repossession. Having your family home taken away from you and sold because of a failure to keep up with mortgage payments is an unpleasant and demeaning experience.

As well as the stress and inconvenience of the act itself, there are also long-term personal and financial effects that can take many years to rectify. While it may seem like there is no way to stop repossession once a possession order has been made, there are options available.

Firstly, it is important to remember that lenders do not actually want to repossess properties. It is an expensive and drawn out process. Lenders are in the business of lending money, not property repossessions, and they are usually receptive to any alternative solutions that can be reasonably offered by the borrower.

Therefore, your first act in attempting to stop repossession is to contact your mortgage lender and try to come to an agreement for paying off your debts while being allowed to keep your home.

A second solution to stop repossession of your home is to refinance your mortgage and any other debts you may have. Many finance companies specialise in refinancing loans for applicants whose properties are at risk.

Another alternative, which is proving popular in modern times, is to sell your property for cash to any number of companies that specialise in solutions for stopping repossession.

The sale proceeds can be used to clear up mortgage arrears and pay off the balance of the mortgage. Such a solution can ensure that the potential repossession victim is not made homeless and will have every opportunity to make a fresh start.

Such a solution should also help to ensure that their personal credit rating is not plundered. This should help ensure that the recovery process is as quick and painless as possible.

It is therefore possible to stop repossession of your home through several different methods. The key to success is to act fast and do all you can to help salvage the situation.



Sell House Quick
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