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Unemployed? Bad Credit? 3 Types of Loans You May Qualify For

download (15)Everyone finds themselves short on cash once in a while. That is even more true when you’re unemployed. Often times you need extra cash just to pay for bills and necessities. Being in debt and having bad credit doesn’t help. This may make it seem impossible to get a loan.

Most lenders want you to have a steady income and good credit in order to be approved for a decent loan. These ‘decent’ loans are the best ones with the lowest interest rates. However, there are many lenders now who are offering loans for those who have no source of income or who have bad credit. While these loans may not offer you the best rates, they can help ease your financial troubles and build your credit so that better loans are a possibility in the future.

Traditional banks don’t often offer these types of loans. They don’t want to take the risk. The easiest way to find a lender willing to give you a chance is to look online. If you do a basic search for “unsecured loans” you should end up with plenty of results. You can also search for “bad credit loans” if your credit is less than good.

The types of loans you will find will vary a little. There may be different criteria that needs to be met, different interest rates and varying repayment options. Here are the 3 most common types of loan offers you will find that you’re eligible for:

1. Payday Loans

Loans like this are meant to be very short-term. Most lenders will require that the loan be paid back within 2 weeks. You have to have some sort of income for payday loans, even if it’s unemployment benefits or social security benefits.

Generally, the lender deposits a small amount of money (usually under $1000) into your checking account and it is due to be paid back the next time you get paid. The insurance on Payday loans is very high and the lenders do not report to the credit agencies, so it will not improve your credit even if it’s paid back in time. These loans are good for emergency situations where you need cash within a day or two.

2. Loans for Unemployed Borrowers

The amount of the loan that you will be eligible for will be directly related to your credit history. The better your credit, the higher the loan amount is and the lower the interest rates will be. These loans are the hardest to qualify for and are usually reserved for those with excellent credit. Repayment plans will vary, so you want to shop around.

3. No Credit Check Loans for the Unemployed

These loans are harder to qualify for than Payday loans and loans based on good credit. While the lenders do not check your credit, they do background checks instead. They look for a steady employment history and what kind of jobs you’ve done. This gives them some idea of whether they can count on you to obtain employment again and how much money you’d be able to make. Based on these results, you may qualify. While the rates may be high, they shouldn’t be as high as Payday loan rates and you will have longer to repay the loan.

While no one wants to be in debt, a loan can make life easier. You can pay your rent and bills and get the necessities you need. Then you just need to make one monthly payment to pay back the lender. If you make your payments in a timely fashion can also increase your credit score, so the next time you need to borrow, you will be eligible for higher loan amounts and better rates.

 

Questions to Ask When Applying for Installment Loans for People With Bad Credit

images (3)Installment loans for people with bad credit are also known as unsecured loans. These are loans for smaller amounts of up to around $10,000 and don’t require any security. They are available to those who have struggled with their finances in the past at slightly higher interest rates, enabling you to get the cash you need quickly and easily.

There are a number of factors you have to take into consideration when applying for installment loans for people with bad credit and the first is the interest rate. Each lender will offer you a different deal, some may offer longer terms, others may only offer a short term solution. They will all add interest to the owed amount. With bad credit comes an increase in risk to the lender, therefore you may find you will pay a slightly higher interest rate than if you had the perfect credit score.

Once you determine what interest you are being offered, you need to take a close look at the repayment amount. Installment loans for people with bad credit are offered over an agreed period of time, this can be anything from twelve to sixty months. The length of the terms combined with the amount borrowed will result in a monthly repayment amount which must be met.

It is imperative that you look closely at the agreed monthly repayment amount before signing the contract. Work out your budget and ensure that you can afford the repayments without going into default. Going into default will result in more interest and penalty fees being added to the amount you still owe, increasing the overall loan amount considerably.

Another question to ask when applying for installment loans for people with bad credit is that should your application be approved and you decide to go ahead with the loan, how long will it take before the money is available to you. This is an important question to ask, especially if you need the money for emergency vehicle or home repairs. You may have decided on a loan to fix your vehicle so you can get to and from work, this is an emergency, so the sooner the money is in your bank account, the sooner you can have the repairs done.

The lender’s reputation is another very important factor to take into consideration. There are hundreds of lenders that are willing to take a chance on a person with a poor credit history. Unfortunately not all of them are reputable and many have bad online reviews. It’s worthwhile to see who can offer you the installment loan and then do some research to learn as much as you can about the company before making your final decision. Things to look for is reputability, customer service and trustworthiness.

Take some time to sit down and work out how you are going to repay the loan and whether there is a chance you may be able to pay it back a little quicker. If you think you may want to add a few extra payments in each year, then find out from the lender if they allow faster payments and if so, do they charge if you pay the loan off faster than the agreed period. Remember by you paying off the loan faster, they are losing interest. Some lenders charge a fee if you want to pay up your loan in a faster period of time.

Check to see if the lender offering you the installment loan for people with bad credit enables you to take a payment holiday. A payment holiday can be a valuable tool which can help you take a break from repayments should you find yourself in further financial trouble, such as losing your job or being injured and unable to work for a certain period of time.

 

Understanding the Difference Between Secured and Unsecured Loans

download (14)Deciding to take out a loan is not a decision that should be made lightly. There are so many factors to take into consideration and if you have poor credit, then the decision is even bigger than if you had a stellar credit report.

In all honesty, not everyone has the perfect credit report and many people go through some financial hardship at some point, a hardship that remains on their report for years restricting what they can and cannot do and whether or not they can apply for a loan and be successful in their application.

There are two main types of personal loans that you need to be aware of, both of which are possible with a bad credit report. The first is secured and the second is unsecured. Both offer advantages and disadvantages.

Secured loans are often preferred by lenders because they reduce the risk to the lender. These personal loans are usually offered for larger amounts, maybe you want to do some renovations to your home or build an extension on your existing property. They require security, this usually means putting your home up as collateral.

The advantages of a secured loan are that because your home is used as security, your interest rates tend to be lower. You pay the loan back in monthly repayments, which can be fixed or not. Be aware if you choose this loan and don’t fix the repayment amount, the repayments could increase or there could be a lump sum payable at the end of the loan agreement.

The disadvantage to secured loans, whether you have a poor credit history or not, is that should you be unable to repay the loan for any reason, there is the possibility of losing your home, which will be sold to repay the amount you owe. This is not a situation anyone wants to find themselves in.

Bad credit unsecured loans are the leading choice which eliminates the risk of losing your home and reduces the risk to you, while increasing the risk to the lender. With unsecured loans you get offered a loan at an agreed repayment amount, you make regular monthly payments until the loan is paid back.

Bad credit unsecured loans don’t require any security and are offered on smaller amounts, usually up to around $10,000. While these loans offer a higher interest rate, they do reduce the risk to you and the risk of losing your home should you miss a payment or two.

As with any loan, whether you choose secured or unsecured, you need to take some steps before applying. Often you choose a personal loan because you need urgent cash that you don’t have available in the bank. Banking institutions these days make it exceptionally difficult to secure any loan, they expect you to have cash in the bank and a stellar credit report. There are lenders online that will help you get the funding you need even with a bad credit history.

Before deciding between the two types of loans available, it’s a good idea to get your hands on your credit report and see if there is any way of improving it before you apply. If not, then consider how the repayments of a bad credit unsecured personal loan will affect your monthly budget and ensure that you can repay the amounts each month without going into default.

Going into default will only leave you with even more money you have to pay and more bad news on your credit report, which is the last thing you want.

 

Find an Appropriate Hard Money Lender

download (12)Find out a hard money lender is not a tough work. The internet can help you most about it. The tricky part is finding out a hard money lender that has low rates, a lender in your local market and is experienced. Many lenders charge more than 15% so it is important to find out a perfect one.

There are great hard money lenders available, but they are not always very easy to find. There have many companies that call themselves hard money lenders and most do very small lending. Maximum lenders are also localised to one state or even one area where they understand the market. However, there have some bigger lending companies that work in many regions and have smaller rates that a typical lender may have.

How does It work?

These loans are not coming from banks. In this loan situation, a company borrows fund from investors and then lends that amount to other investors searching too but real estate at a higher rate. The investors who lend money to the lending company wants to see a good return because of the risk. The lender then has to charge the real estate investor a higher interest rate to make any fund. With a hard cash lender, you will find rates in the 14 to 18% range, along with they will charge from 2 to 5 points on the loan.

Why Investors Pay So Much?

The reason investors are showing interest to pay such high rates on this type of loan is that they have no other option. It is very difficult to get short-term financing from a traditional lending company like a bank, and that is what this loan is for. The loan program is very good for six months to 1 year, where bank lending may be good for around 30 years. Many lenders will also allow investor put less than 20% down payment on properties where banks will not.

How Find A Cheap Lender?

Many of hard money lenders will charge 15% or more, but still there are many lending companies offer affordable rates for debtors. The reason these companies can charge less to the real estate investors is that they are getting more money from larger investors who do not need as high of returns as the smaller individual investors. Many hard cash lenders have rates as low as 11% with 2 to 4 points. Getting bellow 12% with any lending company is going to be difficult. Below are hard money lenders that lend in many states and have good rates for hard loans.

Find A Local Lender

If you like to work with a local lender, you should be careful who you deal with. Referrals are the best option always to find a reputable partner. Here a few process to find some good hard fund lenders. At first, you should ask around at a local real estate investor meet up. Many times lenders will sponsor as well as speak at the meeting. You can ask your real estate agent or a lender if they know any lending company. There also have a chance they don’t know any lender, but it does not hurt you if you ask. You can also check online to find out a real estate investor. When you are searching online, be careful because there has many fraud lending companies are available in the market.

This loan program can be an excellent way to flip houses and expand your returns when flipping by using less of your fund. Hard fund can also be used to buy a rental asset and then be refinanced. Finding the right lender can be challenging work, and if you select the right one, it can cost your deal.

 

How to Quickly Set Up an Advertising Review Checklist for an Adjustable Rate Mortgage Loan

download (13)Every lender who is creating mortgage ads should have checklists available to use to confirm compliance with applicable rules and requirements. So what about a checklist for an adjustable rate mortgage advertisement? What should be in that check list? Here’s some ideas about what should be covered in your ARM mortgage advertisement checklist.

First, note that the majority of these rules come from Regulation Z and are discussed in the section of the law that covers the advertisement of mortgage loans. The ARMS we are discussing here are covered in the closed end credit section of the advertising rules in Regulation Z.

Your checklist should include information about the start rate for the advertisement. For example, you should say the start rate is 3.75%. You should also immediately show the APR adjacent to the interest rate in same font color and same font size. So APR on this example will show at 3.99%. Next you should say how long the initial rate will stay in effect.? If it’s a five year ARM, the answer is five years.

Next, you should state what the loan amount is and your checklist should identify the interest rate. So your checklist would show a Loan Amount of $200,000 and a lien position of “first”. After the lien amount, you should consider showing the amount of the finance charges in dollars. Lets say its $2300. This is not required but is good to consider. Another thing to consider is to mention the number of discount points if any so the consumer knows a bit more of the costs to receive this advertised rate.

The other required disclosure is to describe the index. In this case, we are advertising a LIBOR Arm loan. What’s left after that, use a rate available as of date (let’s say May 1, 2016) and refer to the margin on the loan (3.25%). Also, don’t forget to mention the term of the loan which in this case is 30 years.

So what else is needed? Regulation Z says you need to give the consumer more information about what the payment will be at the end of the initial fixed rate period. You can do this by describing the rate will be calculated using the margin plus the index subject to certain caps. There is a cap that limits the amount of the rate change at the first change, and a cap that limits subsequent rate changes. There is also a “life cap” that limits the maximum rate increase over the term of the loan.

 

Collateral Loans – Pros and Cons

download (11)These are also referred to as secured loans. When taking out a collateral loan there are many pros and cons, which a person should consider before taking out such a loan. There is no risk to the lender because if the borrower does not pay back the loan the lender has the collateral that the borrower used. Many times with a collateral loan you can get a lower interest rate and a longer period of time to repay the loan. Before applying for a loan figure out how much money you are going to need. You should avoid taking out excessive collateral loans because in the end you will paying back more money. To get an idea of how much you can borrow you should calculate your monthly expenses and monthly income and then decide after seeing how much you have left, how much of a monthly payment you can afford.

Next you will decide what you will offer as collateral because many times what you offer as collateral will help to determine what the rate will be for your loan. A collateral loan can be used to consolidate a debt, home improvements, vacation, or major purchase. When applying for this loan the loans that the bank or lender will give you against collateral will usually be percentage of the estimated market value. For example, if you are using a car that is worth twenty thousand dollars the lender would most likely offer you a collateral loan of seventeen thousand dollars, or approximately eighty-five percent of the value of your collateral.

Pros

• It is an easy loan to get and usually is quickly approved
• The borrower can usually borrow more money that they could with an unsecured loan, which is the type of loan that you would need a good credit score, steady employment, good income to get it.
• If you are turned down for an unsecured loan many times a person can get a secured loan.
• There is not a cap on how much a borrower can borrow.

Cons

• What the borrower used as collateral is at risk if they cannot pay the loan back in the time agreed upon.
• A collateral loan is not available to just anyone as you will need to own a vehicle, house, or another piece of property that can be used as collateral and if you do not have any of the three you cannot get this type of loan.

As you can see there are more pros than cons when considering a collateral loan but do make sure that you do not borrow more than you can pay back.

 

A Few Things You Must Know About The Probate Process

download (10)Probate is becoming an increasingly important term, which is also commonly heard of these days. Therefore, it is definitely something that you must essentially know.
So, here is this article we shall discuss a few things about probate.

• Death – Following the death of a loved one, when you have grieved and paid your respects, it is the administering the property that must be concentrated on. You can hold off any legal process until you get the death certificate. But, once you receive the certification of death from the respective doctor or hospital, then you must begin to take care of administering the property.

• Get the papers in order – Once you are done with the funeral, it is imperative that you get the papers and the will of the deceased in order. This will help you and your estate planning attorney to set things in motion. The executor of the will shall require all such documents to carry on further with the process.

• Title to the real property – In case the deceased owned any property, then that property cannot be put up for sale until and unless the probate court appoints an executor. However, even if the process of sale cannot begin, the executor can start the process of retaining a specialist that deals with probate realty matters.

• The death certificate – As already mentioned, obtaining the death certificate allows one to begin with the legal procedures. Administering of a state is a complicated process and it is better to appoint a probate attorney for the same. You must have the will of the deceased if there is one. You must also carry necessary documentation like financial statements, a copy of the deed of the property, etc.

• File a petition for probate – The next thing that you must do is file a petition for probate in the court which is in the country of the deceased. Normally, a hearing schedule is within thirty to forty five days from the date of filing. The main reason as to why a period of about a month is given is to ensure that all people having an interest in the property are duly informed and can make the necessary arrangements.

• Sale of other items – Forms of any personal belongings of the deceased such as furniture, art, jewellery, etc can be carried out by the family members without any formality. However, if the will of the deceased states that certain items must be passed on to certain individuals, then that must be carried out in a proper manner.

So, now that you have read this article, you are more capable of handling probate matters should the need ever arise.

 

Can I Get a Reverse Mortgage If My Spouse in Under 62

images (2)Reverse mortgages are becoming integrated as a staple in the long term financial plans. Used in a comprehensive plan, reverse mortgages make retirement funds last longer. Unfortunately, there is still a lot of confusion for those couples with notable age gaps. Generally, reverse mortgages take place when all borrowers are over 62.

It is possible for a couple with one spouse who is under 62 years of age to get a reverse mortgage loan? Is it a smart financial move in this scenario?

Yes You Can! Make an informed decision.
The key is that all borrowers must be 62 years old, or older at the time of taking out the loan. The younger spouse must not be on title at the time of the loan closing.

Spouses under age 62 should have questions about this scenario. The key is to study your situation and see if entering into a reverse mortgage makes financial sense. HUD has recently made policy changes to protect younger spouses.

If the other spouse dies before the younger spouse, the younger spouse may inherit the home. The reverse mortgage repayment date defers for the lifetime of the younger spouse. This deferral period must be applied for. There are specific aspects of a reverse mortgage when there is a younger spouse (under age 62). Let’s take a closer look.

The Aspects
· The couple need to be married at the time of closing the reverse mortgage. (Common-law spouses are recognized as legal in the state where the borrower lives. This applies to same sex couples if recognized as legal in their state.)

· The younger spouse must not be on title at the time of closing.

· The reverse mortgage proceeds are calculated on the younger spouse.

· The non-borrowing spouse may not receive any remaining loan proceeds after the death of the other spouse.

· The non-borrowing spouse must establish legal ownership of their home within 90 days of the death of their spouse to qualify for the repayment deferral.

· The non-borrowing spouse must maintain their home as their primary residence.

· The non-borrowing spouse must pay property taxes, insurance, association dues and maintain their home.

· The reverse mortgage debt is only attached to the house. It is not a personal debt of the surviving spouse.

· If a reverse mortgage borrower marries after a reverse mortgage is in place, the borrower will need to refinance to add the new spouse on title or to qualify for a repayment deferral.

Providing they do the above, the surviving younger spouse may be able to continue to live in the home for their lifetime. The loan will continue to gain interest. They will not receive any more loan proceeds money. But the loan repayment is deferred for their lifetime. The exception is if there were repair funds in escrow. When those repairs are completed during this ‘deferral period’. Those funds are released.

When Does it Makes Sense to Get a Reverse Mortgage with a Younger Spouse?
The above aspects means that this plan may not be for everyone. So who does it make sense for, and when?

This strategy may make sense for couples desiring being mortgage payment free.

Proceeds may deliver a lump sum of money, regular monthly payments, or act as a flexible credit line.

It’s important to create a lifetime budget. Be sure to take into account any income changes when one spouse dies before the other. Life insurance, cash flow businesses and having other assets may be helpful.

The surviving spouse may not want to stay in the home. The property can be sold if they would like to downsize or go live with family.

Cash taken out earlier can be used to get a smaller home or condo. The guidelines require the borrower and non-borrowing spouse participate in HUD approved 3rd party counseling as a safety measure in protecting consumers. This occurs before any contract is signed.

Summary
In conclusion; it is possible for couples to take a reverse mortgage, even if one spouse is less than 62. It is important to look at the big picture, and whether this is the optimal strategy for your situation. For many it will be the best move.

It is vital for homeowners to understand the loan agreement in its entirety. Know the rules now, make your plan.

 

The Different Requirements Of Getting A No-Income Verification Loan

images (1)A no-income verification loan’s approval depends on the creditworthiness of the borrower along with the value of the property. The lenders know that you, the borrower, cannot qualify for securing a traditional mortgage; however, they know it very well that you certainly have the ability to pay the interest on a note, which will bring them money. Because of this ability of yours, these moneylenders are able to provide you this specific loan.

And these lenders even know that if the loan is still due after one or two years, you will either replace it with a traditional mortgage (from a bank) or renew it. However, what will happen if you have a negative income, or a higher Debt-To-Income (DTI) ratio (because of some new additions in your investment portfolio), or excessive write-offs? Do not worry as despite such scenarios, you can get such financing options easily.

Getting the no-income verification mortgages

Also known as stated income loans, these financial products are the best alternative when an investor has a negative income, or has excessive write-offs, or has spiraling DTI ratios. For securing such mortgages, you will never have to furnish all those previous year’s bank statements and income tax returns.

The requirements

    • As long as you have a good credit history (600 FICO is the minimum requirement), you can get no-income loans easily (close to $ 2 million).

 

    • Apart from this, you will have to give up to 25 percent to 30 percent of purchase down payment.

 

  • The interest on this mortgage varies from one lender to another. This oscillation will completely depend on the number of docs you provide to the lender. (If you are furnishing all the docs that the lender may require giving you this specific mortgage, then the lender may even levy a low interest rate on the loan.)

The advantages of getting such loans

    • The process of getting your no-income verification loan approved is way faster than that of the traditional loan. In conventional loans, the key reason for the delay in loan funding is, many a time, related to the income verification.

 

    • This financial product implies that there is completely no need to display years of statements, to show tax returns, and to provide months of paystubs.

 

  • If you can afford giving monthly payments and 25-30 percent of down payment, getting this financial product will be your best chance to shape your commercial real estate investment dreams.

So once you are looking for a no income verification mortgage, it is best to know the information shared in this write-up. With this knowledge, you will be able to discuss your case more clearly with the representative of the institution that will lend you this mortgage type easily.

 

Tips for Faster Processing Of Your Bank Loans

download (9)Are you also among those facing a tough time getting your bank loan approved? With economic recession increasing at an alarming rate the bank lenders have made money lending policies more stringent. Thus, your application should be spotlessly perfect to avoid any doubts in the minds of the investors.

So, if you want lenders to review your application and grant it without creating any problems, then these guidelines should be kept in mind.

• Know your preference well: Before making a move to the bank with your application it is advisable to check all the loan options available online which are being offered by other rival companies. This would give you an idea of what kind of loan you are looking for, whether its terms and conditions are feasible for you, and time for repayment which should be as short as possible. If you are looking for some specific type of loans like an auto loan or mortgage loan then do a research work on all the deals available to get the best deal. Nowadays, you also keep getting many email notifications about several types of loans. However, one should be very careful to read its fine print properly before further proceeding with it.

• Question the bank for clarifications: Once you find the loan whose terms and conditions suit you best, you should directly get in touch with the bank officials to understand their requirements for a quick approval of the loan. As different banks have different criterions required for approval, so do not hesitate to make a prior appointment with the bank and do not forget to carry all your official documents for them to cross-check and verify. Get a clear idea about the necessary documentation requirement for the approval process so that you do not have to face any problem at the last moment.

• Know your limits: Tally your current credit scores with those required by the bank because most the lenders focus on your credit history before approving the loan. If there is any discrepancy found in that then your chances of a loan approval almost become nil.

• Checklist for required documents: Create a checklist of all the necessary documents required so as to avoid any discrepancy in the documentation process. Sometimes incomplete applications get rejected without getting reviewed, so make sure you submit all the documents.

• Get a clear idea about how things follow: Get to know how thing are processed after the submission of the application so that you know exactly when you would get a response.