Monthly Archives: March 2017

Build Your Dream Home With A Hard Money Construction Loan!

Building your dream home is a very appealing and exciting event. If you are planning to build your new dream home but are not sure how to finance it, a hard money construction loan can provide you funds to construct your new home. Hard money construction loans are specially designed to fund new home construction or for remodeling an existing home. The home construction loans are also called a story loans that means the lender has to know the construction plan before they give you any money at all.

A construction loan comes with certain features that are distinct from the other regular loans. One of many advantages of the construction loan is that the borrower pays only interest till the construction is fully completed. Principal amount can be repaid when the home is finally constructed. Moreover, you can even turn the loan into a mortgage loan later in case you are unable to pay off the loan.

There are some differences between a construction loan and a typical mortgage loan. So if you are considering for a construction loan, here are few things you should know before you get the loan:

It’s A Short-Term Loan: A construction loan is short-term loan program. Generally, the loan term is 6 months to a year, and the money is used to finance the building of the house.

It’s Due All At Once: With normal mortgages, you pay off the loan in the form of monthly payments. But with construction loans, the entire balance is typically due at the end of the loan term once the house is built. That means you need to either have a cash reserve that you can use to pay off the loan when it’s time, or you have to get some other type of financing or loan to cover the balance.

It’s Not Give The Money In Lump Sum: You won’t receive the funds in one lump sum. Typically, the lenders give you a certain amount of money periodically based on the percentage of work that’s been completed on the house.

Conclusion:

If you want to build or remodel a home, a construction loan is almost a necessity unless you have significant savings. You are advised to get the pre-approved letter with the help of an expert finance broker before commencing your building project.

Magna Capital Group, Inc. provides hassle-free hard money construction loans that allow you to receive the funding you need to build the home of your dreams. For more specifics about construction loans, Call Us on (310) 734 4044 or send Email at info@magnaloans.com.


FHA Home Loans And Its Basic Requirements To Qualify!

If you are looking for a mortgage program which offers low down payments along with reduced closing costs, Federal Housing Administration (FHA) home loans would be the best option for you. The FHA is a part of the U.S. Department of Housing and Urban Development (HUD) which works with FHA approved lenders by ensuring qualified borrower’s loan. The FHA insures millions of mortgages for single family and multi-family homes. Lenders are insured by the FHA against losses as a result of a homeowner defaulting on their mortgage loan. An FHA insured loan allows the lender to offer lower down payments, less closing costs, and easier credit qualifications. However, the borrower must first qualify for a Federal Housing Administration loan based on certain requirements.

FHA loans are designed to help potential buyers get into their first homes. If you have never purchased a home before, the Federal Housing Administration(FHA) offers down payments of 3.5% of the purchase price. If you are looking to buy a home that is not in the best condition, the FHA can help. FHA allows home buyers to bundle the costs of fixing up a home into their loan. For homeowners who would like to remodel their house, an FHA refinance will allow them to roll the costs into their loan.

Seniors over 62 years old are eligible for an FHA reverse mortgage if their home is paid off or has a low remaining balance. This loan pulls equity from the home but can be used as financial aid for senior living expenses or for recreational purposes. Also, FHA loans are available for borrowers who would like to place a manufactured home on their property.

FHA Loan Requirements:

Here are some basic requirements to qualify for FHA loans:

  • Credit Report
  • Income Proofs
  • Debt to Income Ratio
  • Mortgage Insurance
  • Loan Amount Limits
  • Property Appraisal
  • Closing Costs

Each requirement has different exceptions and FHA loan requirements often change. To keep up with the most current requirements, you are advised to speak with an approved lender.

Conclusion:

FHA Home Loans are great for any buyer who can qualify for the government program. To find out you are eligible for FHA Loans or not, you need to work with an FHA lender who is approved by the Federal Housing Administration.

FHA-approved lenders can assist you in receiving the right loan for your needs. If you would like to know more information about FHA loans, please feel free to Call Us on (310) 734 4044 today or Email at info@magnaloans.com.


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    Although Magna Enterprises, LLC and Magna Capital Group, Inc. are referred to throughout the text of this website as Magna Group of companies, they are not affiliates, parent or subsidiary companies as both companies are separate and distinct entities. Any questions or issues regarding this disclaimer should be addressed in writing c/o Shawn Molem.