shon h asked:


For example, we are buiding a home for $300,000. We need a loan for $200,000 and our land is worth about $30,000. Do we receive “credit” for a clear lien - making the loan amount actually $170,000?

Arnold

Joel Teo asked:


Poor credit ratings, without doubt is the biggest hindrance in securing a loan. However, when it comes to home mortgage, you have better chances of getting a loan. Bad credit home mortgage or mortgage for persons with poor credit score is possible. The main reason for lenders releasing money to home mortgage is that they consider home mortgage as relatively safe. You provide your home as collateral and no one can go to thin air with his or her house. People are also likely to pay their due, especially when it comes to something that affects their home.

The main advantages of home equity include:

Lower interest rates - since it includes the big amount risk free business, lenders provide you with low interest loans.

Tax deductibility - federal financial laws view your paying for home eligible for tax deductions.

Availability of bigger amounts as loan - up to 80% or more of the total value of your property is available as loan.

Low monthly pay - you can completely pay the loan over many years, in 10, 20 or 30 years.

Longer terms up to 30 years

Easier to qualify with bad credit score - lenders have your house as collateral. It is thus possible to attach your house in case you default in your payments.

Before you apply for bad credit home mortgage, be particular about getting your credit score from the credit agencies (Equifax, Trans Union and Experian) for a cost of $ 40. If you have a bad credit score, chances are higher that your lender will try to sell you the idea that you should opt for a high interest home mortgage. Lenders’ trying to take advantage of your bad credit score is an unlucky instance. They will try to sell a bad credit home mortgage with high fees and interest rates. If you feel like discriminated because of your poor credit showing, avoid that financier and knock another door. You are more likely to find one, that will be knowledgeable about your situations and offer you an affordable bad credit home mortgage.

You can find a number of mortgage lenders specializing in bad credit loans in general and bad credit home mortgage in special. Not all of them are unscrupulous. There are people who are willing to genuinely help you with your financial situations. Credit unions are an example. You have a bad credit should be the sole reason to be more cautious against falling prey to unscrupulous people. Make sure you understand each term and condition associated with bad credit home mortgage and where each dollar you pay goes.

Copyright © 2006 Joel Teo. All rights reserved.



Kathleen

Alan Lim asked:


Ability to obtain a loan

The first indication that there may be a problem with your credit score might be when you try to obtain a new home mortgage and are unable to find a lender that will talk to you. Actually, most people, even those with a really low credit score will be able to find a loan of some sort to purchase their home. It just may cost a lot more in interest rates than you had planned. If you can obtain a loan, it may take more justification and documentation than would be required with a good credit score.

Which lender to select

If your credit score is too low, you may not be able to get a new home mortgage with your lender of choice. The difficulty with having to switch to another lender is that you need to document your second try just as thoroughly as your first effort. In the meantime, because of the reviews on your credit bureau report, your score may actually drop, particularly if the report that the first lender denied you credit before the second lender is approved hits the report. The extra time to document your information for the lender can be one of the most discouraging parts of applying for a mortgage loan.

Loan term

The length of time that you will set in order to complete repayment of your new home mortgage loan will be affected by your credit score. This factor is probably of less significance than some of the others, but still must be taken into consideration. The direct impact is caused when a low credit score causes the requirement of higher interest rate. This may make the payment too high for the borrower if the shorter term loan is selected. So, the borrower ends up paying more interest over a longer loan term just to keep the payment within manageable levels.

Loan rate

The new home mortgage loan will almost certainly be impacted by the credit score of the borrower. Generally, the lower the score, the higher the interest rate. If the score is too low, the borrower may not be able to obtain a conventional home mortgage at all. Conversely, better terms will be available to the borrower who has high credit scores. It is important to know your credit score and make certain that the reports by the major credit bureaus are cleaned up and accurate.

Type of loan

Another way in which the level of your credit score affects the new home mortgage loan you can obtain is in the type of loan that is available. The major types of loans that are available include adjustable rate mortgage, fixed rate mortgage and balloon payment type mortgages–usually paired with ARMs. Again, sometimes lenders will steer the borrower to an adjustable rate mortgage so that increasing interest rates will be borne at least in part by the borrower rather than the lender. The borrower should avoid getting into a loan that results in negative equity in the property.



Alma

solomae asked:


the sofa and loveseat feel apart after 2 months tried to get the company to give my mom something better of equal value.Refused to do so.Let them pick it up,they sold it we paid it off.Credit manager had entered it in as a repo.Her credit was very good before.Is getting HUD loan hopeless?

Linda

Alan Lim asked:


 

A home mortgage loan is usually the largest financial transaction that most individuals will accomplish during their lifetime.  Yet, it is often true that the details are not seen as part of the larger picture, but only as a matter of how much the monthly payment will be and how large the down payment must be to get the house that is desired. An understanding of exactly what a home mortgage loan is and how it works is helpful in making the up front decisions that will have such an enormous impact on the financial health during the next few years or even for a lifetime.

 

Definitions

 

The borrower should understand terms that will describe the type of loan, the fees that apply and the cost of the money use when obtaining a home mortgage loan.  A good start for understanding definitions is to review the length of the loan, or its term; the rate of interest; and the type of loan such as adjustable rate mortgage or fixed rate mortgage.  In addition, a basic understanding of the type of fees and costs that can be included in the cost of the loan is helpful.  These can be referred to as closing costs.

 

Terms

 

The term that you choose when applying for a home mortgage loan is the length of time that you must make payments before the principal on the loan is paid off. The most common terms are 30 years–360 months–and 15 years, although loans of 12 years, 20 years, 25 years, 40 years and even 50 years are somewhat available. It is important to remember that even if you choose a 30 year term so that your monthly payment will be less, you can add extra payments to the principal each month and save yourself thousands of dollars over the term of the loan.

 

Rates

 

Interest rates are the largest single component of any home mortgage loan–in most cases, even greater than the principal of the loan.  The interest rate you will be charged depends on many factors such as the credit score, the size of the loan, the type of mortgage such as fixed rate or adjustable rate, and the term of the mortgage loan. Sometimes loan brokers will charge different rates even when all other factors are equal. This is due to the costs incurred that apply only to the lender or brokers’ fees

 

Closing costs

 

A final important feature of a home mortgage loan is that of the closing costs. The closing costs can be made up of various costs, including, but not limited to, points, loan origination fees, document preparation fees, title search, title insurance, and appraisal fees.  Review these various closing costs to make sure you understand them and question any that seem excessive or frivolous.  Closing costs that are rolled into the loan balance can result in huge increases in the cost of the loan itself. If at all possible, cover such expenses with cash, rather than having interest charges accruing to them over the term of the loan.  

 



Terry

Deepak Bansal asked:


Mobile Home Mortgage is a financial program that involves borrowing money by keeping the home as a collateral security so that if the borrower fails to pay back the amount on time then the bank would have full control on the borrower’s collateral security. In California there are several banks where one can apply for the Mobile Home Mortgage but it’s always safe to discuss about the same with an expert California Mobile Home Mortgage Lender, as he would be well aware of the terms and conditions involved in the mortgage.

If you are staying in California and are looking for proper Mobile Home Mortgage loans then you should without wasting much time contact a good California Mobile Home Mortgage Lender. He can provide you with information about the Mortgage quotes, rates, payment procedure etc. people can find good lenders by visiting various banks.

Before applying in any company one should do research about the bank’s credibility, as not all the banks in California are safe. By simply contacting the California Mobile Home Mortgage Lender one can find out about the company’s credibility. Applying for the Home Mortgage loan is not difficult all that one needs to do is just fill in an application form.

Some banks in California provide online services also thus one can apply for the Mobile Home Mortgage loans simply sitting at home. If you are having any sort of confusions while dealing with Californian based Mortgage programs then the California Mobile Home Mortgage Lender would be the best person who can give answer to all your queries!



Gail

jason asked:


Is it going to be more difficult to secure a 800K Commercial Building loan than say 6 months ago? I will be in the market for that kind of loan in the next week or two and haven’t a feel for the market right now.

Gerald

yodman30 asked:


Im a bartender so I obiously have trouble showing my full income and due to a messy divorce, my credit is not the best. What are my options for getting accepted on a house loan?
What about owner financing. Is this a viable option?

Juanita

Andrew Bicknell asked:


When you refinance your home mortgage you are essentially replacing your existing loan with a loan of either the same amount or more, but with a lower interest rate. It is important to remember that refinancing your current loan is best considered when the current rates are at least 2% less then the interest rates you are currently paying.

There are several benefits to refinancing your existing home loan: First, refinancing allows a home owner to lower his or her existing monthly mortgage payments. Second, refinancing is also a great way for a home owner to consolidate their debt so as to save valuable money in the long term. Finally, home owners can also benefit from a lower refinancing rate by freeing up cash that can be used on much needed expenditures. In most cases, a lower interest rate is a good reason to refinance a home especially when the home is still quite new, for example the homeowners have been paying on it for only a few years.

In most cases, a lower interest rate is a good reason to refinance a home especially when the home is still quite new, for example the homeowners have been paying on it for only a few years. Many homeowners refinance to free up funds for other things like pay off credits cards more quickly, buying a car, another home or growing the family business. To do this type of loan, a cash out loan, they rely on the equity in the home to get the loan amount they need.

Probably the best way to go about doing a home mortgage refinance is to get multiple quotes from multiple lenders. You can compare quotes and decide whether you would like to accept of the refinance home mortgage quotes offered. There are a lot of lenders that would love to assist your with your refinance home mortgage, but you need to find the one that will best meet your needs. Using an online mortgage loan broker to explore several options for your refinance mortgage is a guaranteed way to save money. Not only will these sites be able to give you rates and quotes, but they will often allow you to find out more information on lenders so that you can make the best choice for your situation. And the best part is there is no obligation when you get a free online quote.

No matter what the reasons for doing a home mortgage refinance be sure to be clear as to exactly why you need to do this in the first place. Is it to save money on interest or to tap into the equity into your home for a large purchase? Be sure to do your research and get the best deal both in terms of interest rates and payment options that best fits into your financial needs.



Ron

grandmalc9 asked:


We have a buyer who would like to owner-finance our home; however we still have a mortgage. Will we have to pay off the mortgage or can we pay it off when the balloon payment is made at the end of 5 years?

Joann