Category Archives: Residential Loans

Get Home Loans With Bad Credit: Online Lenders Can Help You Succeed

Tags :

Category : Home Loan , Real Estate Loans , Residential Loans

For many citizens, the chance to own a home is not something to pass up. Owning a home is the best way to build wealth over time and a true measure of a person’s accomplishments. However finding home loans with bad credit may make this chance more elusive than ever. For borrowers with poor credit, home loans may seem like just another dream. However, there are ways to get the mortgage loan you need through online lenders who specialize in high risk lending.

Credit Is Still Important

Many people wonder why a simple three-digit score is so important when trying to buy a home. It’s just a number after all, right? Wrong. The Fair Isaac Corp. (shortened as FICO) developed the credit scoring system as a means to help lenders assess the likelihood of default on loans. The system take several aspects of your credit: your asset to debt ratio, your past history of repayments, bankruptcies, foreclosures, etc. and uses that to generate a score that tells lenders a lot about you with little fuss.

Basically, the point of a credit score is to serve as a short cut for borrower evaluation. Bad credit means that the borrower has had problems with money in the past and may have problems in the future. Therefore, when looking for a home loan, poor credit is an important element that a lender will use to assess whether or not you will be able and willing to repay the loan on time and in good standing. If you do not do this, the lender loses money.

Lenders Willing to Take the Risk

Even if you have reformed bad habits or, worse, your poor credit score is a result of factors out of your control (such as lay-offs or medical bills) most traditional lenders will still consider you a rick when considering you for a home loan. With bad credit, no matter the reason for that poor credit, you are at a disadvantage with most lenders.

There are clear exceptions to this rule, however. Many lenders who operate online are willing to work with people whose credit scores are lower than ideal. Why? Many of these lenders understand that in cases where bad credit is a thing of the past, a second (or even third) chance is warranted. These lenders will give home loans to those with bad credit because they believe you have the ability and willpower to succeed.

There Are Still Penalties

This does not mean that you are on even playing ground with other borrowers however. Because of your bad credit, home loans will come with certain penalties or other circumstances that will offset the risk your bad credit creates. Principally, this means that your interest rate will be higher than those low rates you see advertised all the time. There may also be certain fees for late or missed payments that are higher than those on traditional loans. It is important to read all the fine print on your final loan papers in order to understand all of these circumstances.

The good news is that borrowers with bad credit can still get home loans. With poor credit, it is easy to get discouraged, but it is not necessary. Consider all the options in front of you and start your search today!

VA Home Loans With Bad Credit: Special Qualifications and Tips

Tags :

Category : Home Loan , Real Estate Loans , Residential Loans

Serving the country as a member of the armed forces comes with many benefits. The 1944 Serviceman’s Readjustment Act, which many also know by the term GI Bill, was created to help armed forces veterans to get ahead after their service time has ended. One such benefit offered by the GI Bill is VA home loan assistance. This program allows vets to purchase a home with a low or minimal down payment. The VA will guarantee 25% of the loan instead. Also, those with bad credit are also able to find relief through VA loans.

Get a VA Loan: Meeting the Qualifications

The benefit of the VA home loan received through the Serviceman’s Readjustment Act (GI Bill) is that there is a guarantee from the department of Veteran’s Affairs (VA). This guarantee eliminates much of the risk associated with bad credit loans or low down payments. You can get a VA home loan with bad credit. However there are specific criteria that you need to meet as well. These qualifications include the following:

• No history of loan default within the last twelve months. Defaults in the distant past, though considered, can be disregarded if you have proven that you have reformed from your past mistakes.

• No bankruptcies on file in the past two years. Again, a bankruptcy on record will matter, but if you have made changes and allowed at least two years to pass, you can still get a VA home loan.

• Proof of current, gainful employment with a steady and reliable income. You need to display that you have the ability to pay for the home loan you seek.

Disabled Veterans

Armed service veterans who are currently disabled and receiving benefits due to their disability may still qualify for VA home loans with bad credit. This is because there are special additional programs that are offered for disabled vets. By speaking with a VA loan professional, you can see if you are able to get a VA loan with bad credit as a disabled veteran.

Improving Your Credit Score

Among the most important steps to take before applying for VA loans is making changes in your personal financial habits in order to increase the credit score you currently have. Simple steps that you can take in order to achieve this include consolidating debts and setting a clear budget to follow each month. Also, make sure that you have each month’s payments clearly marked on your calendar in order to avoid late payments that may make a bad credit score go down even more.

Prevent Default In Debt Repayment Through Home Loan Refinancing

Tags :

Category : Home Loan , Real Estate Loans , Residential Loans

The global crisis had caused financial disaster to a lot of people. There were those who found bankruptcy as the only recourse to start fresh and free from bad debts. You too had experienced the difficult situation and you are having trouble in paying your home loan. Upon consultation with a financial expert, the best advice is to have your home loan refinanced. This can lead to lower mortgage rates that eventually can bring down the monthly amortizations to your debt.

Refinancing or loan restructuring as some may call it had become easier because of the low mortgage rates imposed on the home loan. The best way to achieve a lower amortization is to find a bank or lending institution that can offer lower mortgage rates for such refinancing. A small drop in the interest rate can already bring substantial decrease in your monthly amortizations. Your savings can help you in the sustenance of your monthly household expenses. This will further prevent you from defaulting in your monthly payment.

The positive effect of the refinanced home loan will be felt once the mortgage rates are lowered. However, there are limits to the refinancing of any home mortgage. You can only request for restructuring for a specified number of times – not very frequently. Some may think of refinancing as a strategy to keep bringing down the interest rate. Application and approval of this debt relief is subject to certain terms and conditions.

With refinancing, the mortgage rate of your debt will surely be reduced. However, you have to satisfy certain conditions in order to merit the modification in your house liability. The first is your credit score. This should be perfect meaning that you have no bad credit record. So – if you are thinking of applying for this relief, examine your other liabilities. The manner by which you handle your credit cards is paramount in order to have a perfect credit rating.

You will also need a good financial broker. This is the person that will prepare the justifications for the grant of a refinanced home loan with lower mortgage rates. This is an expert who knows how to stress the good points in you. You have to be credible and the financial broker can guide you on how to be one. In some instances these brokers have the power to negotiate for lower rates. A broker has knowledge of the different lenders who are more lenient and who can give a better packaged deal.

Getting off the tough financial condition you are currently is highly possible. If you have an existing home loan, you can have this refinanced such that lower mortgage rates can be imposed on the loan balance. Even a marginal decrease will be a big factor in order to bring down the cost of debt repayment. This is a debt relief that will be subject to your perfect credit rating and employment of a professional financial broker. Even if you can be granted home loan refinancing you cannot do this several times – not over and over in order to continue decreasing your mortgage rates and monthly amortizations.

The Risks and Benefits of Balloon Home Loans

Tags :

Category : Home Loan , Real Estate Loans , Residential Loans

Different situations call for different solutions. The ultimate goal is to find the type of loan that addresses personal demands. A balloon home loan is one that might just be the right choice for you.

A balloon home loan is a short-term mortgage with a fixed monthly payment and interest rate. The monthly fees are relatively small, and after a period of ten years or so, the remaining amount (which is comparably large, hence the name “balloon loan”) needs to be paid in one huge lump sum. If the loan matures and the debt cannot be settled, there is the option of refinancing the said amount. Refinancing in itself entails several risks, for the rates will now be set according to current interest rates, eventually leading to higher loan payments in the long run.

For many, obtaining a balloon home loan is a very precarious decision. Things may go smoothly for five years or so due to the small amounts to be paid, but as the loan matures, not everyone will be completely sure they will be able to pay the remaining balance in full. For example, if one obtains a five hundred thousand-dollar loan, and at the end of the term was only able to pay fifty thousand, it might come as a shock to know that four hundred fifty thousand dollars need to be paid in lump sum. It is for this reason that balloon loans do not appeal to all types of money borrowers.

This type of loan, however, can be advantageous to people who buy and sell homes, for instance. They are able to get huge sums of money in one single business transaction, thus the low rates are certainly to their benefit. Another advantage is the fixed-interest rates, which are found to be even lower than those of adjustable rate mortgages.

A good guiding principle would be the following: balloon homes are intended for short-term financing, thus if you are planning to sell your home before the loan matures, or you are certain of being able to pay the lump sum, obtaining a balloon home loan would be beneficial. If you plan to hold on to the property for a long period of time, there is a risk of refinancing, which might turn out to be a nightmare due to higher interest rates. An even graver consequence is that you might not be able to pay the new loan, and end up losing your home and property entirely. Thus if you’re looking for a more stable, long-term mortgage loan, it would be better to seek other types of home loans. Important things to keep in mind when applying for a balloon home loan are the interest rates, the due date of the lump sum, the outstanding balance, the option of refinancing, and effective management of installment payments.

Home Loans: What Are the Steps to Do If Your Home Loan Application Is Rejected?

Tags :

Category : Commercial Loans , Home Loan , Real Estate Loans , Residential Loans

Before submitting the application, we know for a fact that there is a high percentage of being rejected. The truth hits us hard when it happens. People who have been rejected may give up to this point.

If you’re application was rejected what will you do next?

At this point we finally grasp what our lenders are trying to say to us which is the percentage of failing is indeed much larger than the approval. The next move here is to find out where we failed.

Right now you have to think whether you want the loan or not. You are at a crossroad.

You have to think things through this time. Gauge if you really want to move or just give up. Set things in to perspective and do not waste time.

If you decide to go on then you have to set a new plan this time. A plan that is formed to get better results. In order to do that you have to know where you failed. Asking your lender on this matter is a good start.

To help you further, below are good tips to get you going.

Cheaper properties can help your loan get approved:

When your application is for a property that’s too expensive then lenders will reject that application. You have to get a property that is much suitable for you. Shop for cheaper properties, that’s the key!

Your chances of getting approved is base on your ability to pay your dues. If the lender sees that you can’t afford the loan then obviously you will be denied. So weigh your plans and go for something that you can handle.

Think and see if things are better and then that’s the time you’ll decide.

If the banks says that the property is no good then find another affordable one.

If a house and lot is too much then try out the condominiums or town houses.

Ask the bank to evaluate your application again:

If you doubt the results then have someone inside the agency to re-evaluate your application. This can be done if you just ask nicely.

Re-evaluation starts with the applicant writing the agency a letter. This letter must be good and true since your application’s future relies on it. You have to set everything straight. Do not set excuses and just tell the whole story as it is. In the event that something bad happened make sure it’s real and a one time event.

Right now is the best time to know that your re-evaluation can go smoother when you have good credit scores.

Most of the time things do not go the way we want it in a loan application. The odds are against us. So when we get rejected we should remember that we shouldn’t give up. Push forward and set a better plan. Ask for another evaluation. Get things done.

« Previous Page — Next Page »

Recent Posts

Recent Comments

    Archives

    Categories

    Meta

    Website Pages:
    Contact Details:

    Tel: (310) 734 4044
    Fax: (310) 734 4055
    Email: info@magnaloans.com

     

     

    Address:

    Magna Capital Group, Inc
    8730 Wilshire Blvd., Suite 410
    Beverly Hills, CA 90211

    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.

    Magna Capital Group, Inc™ 2020| California DRE License # 01866646 | Nevada DRE License # RE.1450801 | NMLS ID # 342925