Home Equity Loans : Borrowers Beware!

Do you own your home? If so, it’s likely to be your greatest single asset. Unfortunately, if you agree to a loan that’s based on the equity you have in your home, you may be putting your most valuable asset at risk.

Homeowners — particularly elderly, minority, and those with low incomes or poor credit — should be careful when borrowing money based on their home equity loans.  Why? Certain abusive or exploitative lenders target these borrowers, who unwittingly may be putting their home on the line.

Abusive lending practices range from equity stripping and loan flipping to hiding loan terms and packing a loan with extra charges. The Federal Trade Commission (FTC) urges you to be aware of these loan practices to avoid losing your home.

BAC Home Loans

BAC Home Loans Servicing, LP and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above. In addition, if this loan is covered by mortgage insurance, the mortgage insurance company may reserve the right to pursue the seller for the deficiency based on the terms of the mortgage insurance policy.

Furthermore, there may be tax consequences associated with entering into a short sale. The seller is encouraged to seek guidance from an independent tax advisor, and/or an attorney, before proceeding with the short sale. If this short sale is contingent upon BAC Home Loans Servicing, LP and/or its investors receiving a promissory note, we will reserve the right to collect the full amount on the new promissory note which may lead to us pursuing a deficiency on that balance should the need arise. If the short sale does not close, then we will pursue all remedies under our note and mortgage. This offer is contingent upon BAC Home Loans Servicing, LP receiving a properly executed and notarized Promissory Note, if applicable, to this short sale transaction.

Ease in Securing Loans

Despite the easing of conventional underwriting standards, market observers consider it easier to obtain an FHA loan than a conventional loan. Conventional lenders tend to disapprove loans if the monthly payment, including principal, interest, taxes and insurance, exceeds 25 to 28 percent of the borrower’s monthly income, depending on the type of loan. The FHA allows up to 29 percent. The FHA also allows a borrower to have a higher total debt burden than most conventional lenders would allow. Total debt payment, including existing debts running for ten months or more, can be as much as 41 percent of income, compared with 36 percent for most conventional loans. Lenders emphasize that these payment-to-income ratios are guidelines, not hard and fast rules. For both FHA and conventional loans, “compensating factors” such as an excellent credit record may be used to justify exceeding the guidelines.

Download the FHA Loan Guide

FHA Mortgage Center.comYour Guide to FHA Loans

FHA Mortgage Center.com is your premier FHA Loan center.

Unlike your local bank or other lenders, we specialize in FHA loans. We work with them every day, all day, and will do everything we can to get you into your dream home.

Purchasing a home is a big deal, and you will likely have questions. Our FHA Specialists will take you through the entire process step by step. From getting prequalified to closing on your loan, we will make sure to answer each question and explain every detail so you understand the ins and outs and never feel lost.

Please feel free to contact us at any time to get your FHA Loan process started. Our Specialists are here to help!

What is an FHA Mortgage Loan?

An FHA loan is backed by the Federal Housing

Administration, which means if a borrower defaults on the

loan, the FHA guarantees it will pay the lender. As a result,

lenders will issue larger loan amounts and give you lower rates.

DU Users Guide for FHA Loans

DU® for Government Loans is the component of Desktop Underwriter® (DU) that is used by DU licensees in conjunction with their underwriting of FHA loans and VA loan casefiles, the repayment of which are insured by FHA (Federal Housing Administration) or guaranteed by VA (U.S. Department of Veterans Affairs).

The use of DU for Government Loans (including the submission of loan casefiles to the pmiAURASM risk model for VA loans), is governed by the Fannie Mae Software Subscription Agreement and the DU (Expanded Use Version) Schedule. FHA lenders that have not executed these documents should contact their Fannie Mae customer account team.

Note: From here on in this guide, DU for Government Loans is referred to as DU.

This guide provides detailed information on data entry requirements and system functionality for submitting FHA loan applications to DU. The instructions in this guide are provided to facilitate lenders’ accurate submission of data to DU and are not intended to interpret, explain, or supersede FHA’s guidelines or requirements.

Mortgage Loans Understand the Terms of Your Loan Before You Sign

This brochure can help you become familiar with basic mortgage loans, determine what terms are best for your situation, and identify issues you should be aware of before taking out a mortgage loan.

Mortgage loans are secured by a borrower’s home. This means that if you are unable to make the monthly payment for the mortgage, the lender can foreclose and take your home. The amount of your loan will be determined by your home’s value minus any liens or unpaid mortgage(s).

Standard home equity loans or second mortgages are closed-end loans, meaning the loan proceeds are usually made available in a lump sum. These loans can have a fixed term, a fixed interest rate, and fixed monthly payments, or they can carry an adjustable interest rate that fluctuates with an index, such as the prime rate. Some adjustable-rate mortgages (ARMs) are “hybrid ARMs” which have a fixed rate for an initial period, then a fluctuating rate for the remainder of the loan.

Reverse Mortgage Loans Borrowing Against Your Home

Since the publication of this booklet in 2008, there have been a number of important changes in the reverse mortgage world. The following is a summary of these issues, as they affect the content of this book as of October 2010. Page numbers are provided to help you find the areas of the book that are affected by these changes. Property eligibility: Though legislation to allow HECM loans on cooperatives was passed, the enabling regulations have not been finalized, so as of this time (October 2010), cooperatives are still not eligible. (page 8)

Home value limits: The nationwide home value limit of $417,000 on HECM loans was raised to $625,500 and will continue at that level until at least December 2011. This increase made HECMs more attractive for borrowers with higher value homes, and is one reason for the disappearance of proprietary loans. (pages 9, 26, 32)

Manufactured Housing Finance and the Secondary Market

Manufactured housing, or mobile homes, is often the most attractive housing option for many low- and moderate-income Americans. Reinforcing the concept that it is expensive to be poor, the financing of manufactured housing is often much more expensive than it needs to be. This article reviews how the  current financing for manufactured homes functions, explores why it is so expensive, and suggests an important strategy to reduce its costs by pursuing a secondary market for manufactured home mortgages.

The benefits to low- and moderate-income home owners of a more efficient manufactured home mortgage market would be substantial, for as many as 10 million families live in manufactured homes. Many are low-income families, the group for whom home ownership is one of the only sources of wealth and financial stability. Indeed, manufactured housing is a key resource when it comes to providing home-ownership opportunities for low- and moderateincome families, accounting for two-thirds of this country’s new affordable housing production in recent years.

There are many obstacles to creating this more efficient mortgage market, but that was also once true for site-built homes when credit was expensive and home-ownership rates were low. Over the past fifty years, however, the U.S. mortgage market has created ample capital flows and continued product innovation that have contributed to a home-ownership rate over 70 percent and a climate—unique in the international context—in which an 80 percent loan-to-value, thirty-year mortgage is considered “plain vanilla.” The following explores how that same vibrancy can spread to the manufactured housing market.

MANUFACTURED HOME LOAN POOLS AND LOAN PACKAGES —SPECIAL REQUIREMENTS

OVERVIEW OF CHAPTER
This chapter describes special requirements that apply for a pool of manufactured home loans. The requirements described in this chapter may modify, supplement or, in some cases repeat, for the purpose of emphasis, those set forth in previous chapters with respect to Issuer eligibility and servicing requirements, loan eligibility, pool and loan package requirements, required pool and loan package submission documents and the securities. Manufactured home loans may include loans secured only by a manufactured home unit or both the manufactured home unit and a developed manufactured home lot acquired in a single transaction. The pool suffix is “MH”.

MH pools may only be formed under the Ginnie Mae MBS II Program. Eligible pool collateral may include manufactured home loans whose initial loan application date occurs on or after June 1, 2009; the applicable MBS II pool type shall be “C MH”. Effective with security issuances on or after October 2010, manufactured home loans will be ineligible for pooling in “X MH” and “M MH” pool types.

Delivering Manufactured Housing Loans to Fannie Mae Frequently Asked Questions

General
Q1.
What is a manufactured home?
Fannie Mae defines a “manufactured home” as any dwelling that is built on a permanent chassis and installed on a permanent foundation system. Manufactured homes must meet the federal Manufactured Home Construction and Safety Standards of June 16, 1976 (the HUD Code) as well as other guidelines per the Fannie Mae Selling Guide.
Other factory-built housing (not built on a permanent chassis), such as modular, is not considered manufactured housing (MH) and is treated the same as site-built housing, and thus is not subject to the MH guidelines.
Q2.
What is a modular home?
Modular homes are homes built in modules at a factory. The modules are transported to the home site on flat-bed trucks and installed. Unlike MH, modular homes conform to the same state, local, and regional codes that apply to site-built dwellings.
Off-frame modular homes are covered by the Fannie Mae Selling Guide as standard single-family detached homes and not as MH. On-frame modular homes are not considered single-family homes and loans secured by such properties are not eligible for delivery to Fannie Mae at this time.
Q3.

Flex Loan Home Improvement Loans

Borrow up to $15,000 and take up to 7 years to repay!
No government red tape or restrictions with this loan! Check these Flex Loan advantages …

• $650 total loan fees and closing costs (appraisal included)
• Nothing hidden! No gimmicks! Everything is right up front for you to decide
• You make the choices on the home improvements you want
• Written work specification prepared for you and sent out for bid to our list of licensed contractors, or you select the contractor
• Use the Flex Loan for whatever remodeling you wish to do without having to bring entire house up to code

Home Improvement Loan Program

The People’s Bank/Connecticut Housing Investment Fund, Inc. (CHIF), HomeImprovement Loan Program, provides loans to eligible homeowners who wish to repair or renovate their homes. Homes must be one- to four-family residential properties that are located in Connecticut and are owner-occupied. Homeowners may borrow a minimum of $400 and a maximum of $10,000 at a 7.99 percent fixed rate. The loan amount a person can receive depends upon his or her ability to repay the loan. The maximum loan term is 10 years. Repayment is based on this maximum term, but borrowers can repay the loan sooner if they wish, with no pre-payment penalty. Eligible improvements that can be made with this loan program include:

VA GUARANTEED HOME LOANS FOR VETERANS

The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is usually lower than the rate charged on other types of mortgage loans. For VA housing loan purposes, the term "veteran" includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses.

This pamphlet should help you to understand what VA can and cannot do for the home purchaser. However, it is not a legal document and should not be interpreted as one. Nothing should be taken as a change of law or regulations. The pamphlet does not attempt to go into detail or into unusual problems. Information about VA loans is given in a narrative format followed by questions and answers in those areas of the greatest concern.

It is suggested that the pamphlet be read in its entirety. Please pay particular attention to the information about your responsibility to determine the condition of the property you purchase and to the information about assumption of your VA loan and obtaining a release of liability. Any questions you have which are not answered should be directed to your VA Regional Loan Center, or to your lender who will take them up with VA, if necessary. A list of VA offices with loan activities may be found in the back of this pamphlet.

2011 VA County Loan Limits for High-Cost Counties

That is information about Va Loans. The Department of Veterans Affairs Loan Guaranty program does not impose a maximum amount that an eligible veteran may borrow using a VAguaranteed loan. However, the following county “limits” must be used to calculate VA’s maximum guaranty amount for a particular county. These limits apply to all loans closed January 1, 2011 through September 30, 2011.

Fiscal Year 2012 county loan limits will be made available as soon as possible. The maximum guaranty amount (available for loans over $144,000) is 25 percent of the 2011 VA limit shown below. Therefore, a veteran with full entitlement available may borrow up to the 2011 VA limit shown below and VA will guarantee 25 percent of the loan amount. If a veteran has previously used entitlement that has not been restored, the maximum guaranty amount available to that veteran must be reduced accordingly. Lenders should check their own investor requirements regarding guaranty amounts and downpayments. Questions about VA loans in a particular county may be directed to the VA Regional Loan Center listed for that county.

The Home Equity Conversion Mortgage

The HECM is the only reverse mortgage insured by the federal government. HECM loans are insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). The FHA tells HECM lenders how much they can lend you, based on your age and home value. The HECM program limits your loan costs, and the FHA guarantees that lenders will meet their obligations.

HECMs Versus Other Reverses

HECM loans generally provide the largest loan advances of any reverse mortgage. HECMs also give you the most choices in how the loan is paid to you, and you can use the money for any purpose. Although they can be costly, HECMs are generally less expensive than privately insured reverse mortgages. These other  reverse mortgages may have smaller fees, but they generally have higher interest rates. On the whole, HECMs are likely to cost less in most cases. A notable exception may be the reverse mortgages now being developed by some credit unions.

Introducing Reverse Mortgages

Until recently, there were two main ways to get cash from your home: you could sell your home, but then you would have to move; or you could borrow against your home, but then you would have to make monthly loan repayments.

Now there is a third way of getting money from your home that does not require you to leave it or to make regular loan repayments.

Reverse Mortgage Loans: Borrowing Against Your Home much equity or ownership value you have in your home. But they do so in opposite ways. “Debt” is the amount of money you owe a lender. It includes cash advances made to you or for your benefit, plus interest. “Home equity” means the value of your home (what it would sell for) minus any debt against it. For example, if your home is worth $150,000 and you still owe $30,000 on your mortgage, your home equity is $120,000.

Reverse Mortgage Loans Borrowing Against Your Home

1) Do you really need a reverse mortgage?

Why are you interested in these loans? What would you do with the money you would get from one? Are the needs you intend to meet really worth the high cost of these loans? If you want to take that dream vacation, a reverse mortgage is a very expensive way to pay for it. Investing the money from these loans is an especially bad idea because the loan is highly likely to cost more than you could safely earn. If anyone is trying to sell you something and recommending you use a reverse mortgage to pay for it, that’s generally a good sign that you don’t need it and shouldn’t be buying it. Be especially wary if you don’t fully understand what they are selling or aren’t certain that you need it.

Do bank loans and credit standards have an effect on output?

The .nancial crisis which surfaced in August 2007 has highlighted the vulnerability of .nancial intermediaries, and more speci.cally of the banking system, at least along two interrelated dimensions. On the one hand, faced with the risk of insolvency due to the erosion of their capital base after heavy losses, banks have been in need of raising fresh capital, whether through private investors or government aid programmes. On the other hand, banks have experienced di¢ culties in raising funds at medium and long-term as well as at short-term: inter alia, spreads on bank bonds increased to unprecedented levels, while Libor-OIS spreads in the inter-bank money markets also reached historical peaks, especially following the demise of Lehman Brothers, the US investment bank, in September 2008. Moreover, banks.ability to securitise their loans and transfer credit risk o¤ their balance sheet was seriously disrupted adding further strains on their access to funding.

The importance of a good professor: An experienced real estate agent can help guide you home

Now that you have talked with a home loan expert, it’s time to bring in another great professional: your real estate agent.

It can be exciting looking at homes that are for sale, knowing one of them might soon be yours. But looking at homes that don’t have the features you want can lead to house-hunting “burnout.”

A Real Estate Agent Can Help You Avoid Wasted Time

They keep you focused on homes that meet your specifications, in neighborhoods that are desirable to you—and in your price range.

You may have an agent who’s been referred to you by close family or friends, but take the time to “interview” a few agents before you make a commitment. Make sure you are comfortable with your choice because finding the right home takes time. Not only will you be spending a great deal of time together, but you never want to feel an agent is rushing you to close a deal—especially one that doesn’t feel right to you.

Here Are Some Questions You Might Ask Agents:

• How long have you worked in real estate?

• Is this your full-time job?

• Are you familiar with the area where I want to look?

• How many home sales did you participate in last year?

• Will you be present at the closing?

A good real estate agent will be communicating with you frequently, suggesting homes and neighborhoods for you to scout — and will definitely give you notification when a new listing that might interest you comes on the market.

Are you currently renting?

Leaving Your Rental to Buy Your Own Home Is a Big Step.

Currently your landlord has the responsibility of all repairs and upkeep. And depending on your lease, you may not even be paying for your electricity or water. But on the other hand, if your current residence is growing in value, then your landlord is building equity through your monthly payments. Home ownership can have financial benefits that renting does not. While you’ll want to consult a tax advisor, you should find that the interest you pay on your mortgage is tax deductible, as are some closing and moving costs. If you pay points on your loan to reduce the interest rate on your mortgage, that amount is also tax-deductible for that year.

Come to class prepared: Be a smart home buyer!

 

The smart way to shop: Get pre-approved for your home loan before you start your search. It’s easy! That’s a smart move in this buyer’s market because your pre-approval guarantees that you’ll have the financing to buy a home within your price range. You’ll know which homes fit your budget and what mortgage payment you’ll be approved for, so you can shop more efficiently. And once you find a home you want to place an offer on, you’re in a better position to negotiate with sellers because they know you’ll be able to back up your bid, and move fast—sellers like a buyer who can move quickly. Let’s sum it up…

A Crash Course In Buying Your First Home

Want to step into the housing market with confidence? You’re in the right place. This guide to buying your first home can help you figure out which house will be right for you as well as everything that leads up to it, like finding the right real estate agent and the perfect mortgage to fit your needs. Get excited: the next stage of your life begins now.

A guide to home loans

A home loan is usually the biggest financial transaction you’ll ever make. But loans are sometimes taken without too much tho ught. And since HDB stopped providing market rate loans to HDB flat buyers, it means an additional 20,000 novices could be introduced to the arcane world of private-sector loans this year. That’s a lot of new clients for the banks to gobble up. To ensure you don’t get chewed up by slick marketing, scan this beginner’s guide to home loans (useful for HDB or private properties).

What is an HDB market rate loan?

Regular concessionary HDB loans are subsidized and restricted to certain borrowers – for example, a first-time buyer of an HDB flat. Other buyers, such as those whose income exceed $8,000 per month, or have already benefited from a concessionary rate loan, will have to get a  "market-rate loan". The market-rate is tied to one set by POSB. But since January 1, HDB (via POSB) will no longer offer market-rate loans and borrowers will have to get loans from privatesector lenders, including the three big local banks and six foreign full banks. In a nutshell: financial institutions will provide housing loans to HDB flat buyers, just as they do to private property buyers.

ADJUSTABLE RATE HOME LOAN RATES AND TERMS

Effective March 26, 2011 and subject to change.
SAN DIEGO COUNTY CREDIT UNION ADJUSTABLE RATE HOME LOANS FEATURE:
· No risk-based pricing
· Low CAPs (CMT = 2/2/61)
· ZERO point options
· Free 60-day rate lock 2
· Free rate roll-down or re-lock
· Low closing costs
· Loans up to $1,500,000
San Diego County Credit Union offers tremendous flexibility in qualifying you for an affordable home loan in part because we do not rely on risk-based
pricing on our adjustable rate programs. Be sure to check out our 40-year 5/1 Adjustable Rate Mortgage!
ADJUSTABLE RATE MORTGAGES: CONFORMING LOANS TO $417,000 (Purchase or Refinance)

introduction about home loans

Home loans are available through many different sourc­es, including mortgage banking companies, commercial banks, community banks, credit unions, mortgage bro­kers, and other financial institutions.

To find a lender, you can:

ü Contact your bank or financial institution. Some­times lenders can offer better mortgage terms to current customers.

ü Consult a non-profit housing counseling agency in your area (see Federal Programs below).

ü Ask family members, friends, and coworkers.

ü Ask your real estate agent.

Additionally, there are many government programs that offer home loans and/or assistance to home buyers.

Home Loan Application Form

ANZ’s collection, use and disclosure of personal information. ANZ is collecting your personal information to enable it to process this application and, if it is approved, to provide you with the product or service you
are applying for. Where you are a guarantor, ANZ is collecting your personal information to enable it to assess you as a guarantor for an application for credit. Without this information ANZ may not be able to consider or approve this application. ANZ may disclose your personal information to:
You may request access to your information at any ANZ branch or by calling 13 13 14. Access will be granted in accordance with the Privacy Act 1988
for a reasonable fee. If any of your information is inaccurate, you may request it be corrected.

Download ANZ home loans Application form on here

Five Easy Steps To A VA Loan

1. Apply for a Certificate of Eligibility (COE).More information about how to apply, where to send the request and how to use the COE is available at: http://www.homeloans.va.gov.
2. Decide on a home and sign a purchase agreement.
3. Order an appraisal from VA. (this is done by the lender) Ordering an appraisal can be done via the Internet using TAS (The Appraisal System) at http://vip.vba.va.gov. This is a centralized system that allows lenders easy and quick access to order an appraisal.
4. Apply to a mortgage lender for the loan. While the appraisal is being done, the lender can be gathering credit and income information. If the lender is authorized by VA to process loans on the automatic basis (and approx. 99% of all VA loans are processed this way) the loan can be approved and closed upon receipt of the appraised value determination without waiting for a VA review of the credit application. For  loans that must be approved by VA, lenders send the credit package to VA. VA staff will then review it and notify the lender of the decision.
5. Close the loan and move in.

CALVET HOME LOAN APPLICATION PACKAGE

This package contains forms and instructions for obtaining a CalVet Home Loan. If you are planning to build a new home on property that you currently own or intend to purchase, you will also need to download the Construction Loan Supplemental Package of forms and instructions.

Before you begin:

You must have a property selected before applying for your loan. We suggest that you carefully review the material on the CalVet Home Loan Program on our web site. If you have questions feel free to e-mail us at loanserv@cdva.ca.gov or contact the nearest CalVet District Office. A list of CalVet District Offices and the areas they cover with complete contact information including direct e-mail address for each office is available on our website at cdva.ca.gov/CalVetLoans/Offices2.aspx.

DFI GUIDE TO HOME LOANS

Whether you’re buying your first home, considering a second mortgage, refinancing, or considering a reverse mortgage the loan process can be confusing and complicated. As you embark on one of the biggest financial decisions you’ll make in your lifetime, use this Guide to understand and to help navigate this process.

Washington State is a leader when it comes to passing  and regulations that protect consumers and ensure sound business practices in the mortgage industry. This booklet was updated in April 2009. Visit dfi.wa.gov/consumers/education/home.htm to verify you have the most recent information regarding the mortgage industry. Educating yourself can help you avoid common pitfalls and assist you in determining what type of home loan is best for you.

First time buyer mortgage

The benefits of home ownership, coupled with an advantageous housing market will allow many consumers to purchase their first homes and start building equity instead of paying rent to a landlord. Owning a home for the first time enables the buyer to build equity for themselves instead of paying rent and building equity for their landlord. In reality these misgivings are unfounded and many can afford a home with a first time buyer mortgage. As opposed to many traditional mortgages, a first time buyer mortgage generally requires a 3.5% down payment and it is often still possible to qualify even if your potential mortgage payment ranges as high as 50% of your gross income. For those consumers worried about liquidity, mortgage refinancing will allow them to readily access their accumulated equity in the future.

Mortgage loans come in a variety of financing forms to best suit your needs. You can choose a fixed rate loan, which is a traditional choice. Other options include an interest only loans, balloon loans, or jumbo loans. Online mortgage lenders handle all the same loans that a traditional bank would handle. Trading in an office visits for a streamlined online loan process allows you to save money on your mortgage loan. Some mortgage lenders eliminate loan fees, while others reduce their interest rates. Online mortgage lenders allow you to complete paperwork online at your convenience.

Refinance Home Mortgage Bad Credit

One way may be is Refinance Home Mortgage Bad Credit. Either you are faced with foreclosure or attempting to obtain a loan to Refinance Home Mortgage Bad Credit. One with poor credit must be prepared to pay a higher interest rate than a person that presents with a good credit history. This causes the institution to carry higher mortgage insurance on your loan. If you already have a FHA mortgage loan you may be able to refinance with a FHA Streamline Refinance Mortgage. The FHA Streamline Refinance Mortgage loan is quicker and easier to do because there is a lot less paperwork and costs. In the long run, if you get a Refinance Home Mortgage Bad Credit loan it may not only decrease your monthly mortgage payment, save your home, but it can also help you get out of debt.

CONVENTIONAL OR CONFORMING MORTGAGE Loans are the most common types of mortgages. For conforming mortgage loans, it does not matter whether the mortgage loan is an adjustable rate mortgage or a fixed-rate loan. Conventional mortgage loans come with several lives. 30 year mortgage loans are available for Conventional, Jumbo, FHA and VA Loans. 15 year mortgage loans are available for Conventional, Jumbo, FHA and VA Loans. 40 year mortgage loans are available in both Conventional and Jumbo.

 

How to Buy a Home With Bad Credit

How to buy a home with bad credit? If you are looking for a mortgage loan with poor credit history, you won't have much luck seeing out traditional lenders such as credit unions and banks. You can find many poor credit lenders online. Now, while these companies will provide poor credit loans to people, they give out these loans to risky people for a reason. Ultimately, you can get a no credit mortgage loan.

To understand the true interest rate you end up paying with a honeymoon product - look at the advertised comparison rate on such a loan. Most lenders offer a range of professional packages to clients who are prepared to pay a small monthly fee. If on top of your home loan you also have other outstanding loans such as a personal loan, credit cards, car loans etc. - by consolidating all your other outstanding loans into your mortgage you can generally significantly reduce your overall loan obligations and hence have more funds available to apply to your mortgage.
This means that instead of paying 15 to 20 per cent on your credit card or personal loan, you can transfer these debts to your home loan and pay it off at a home loan rate.

Buying a Home with Bad Credit

If you dream to own a home, home loans are the best way to finance your dream. Home loans are offered against the equity in ones home. The loan proceeds of a home loan can supplement both mortgage and secured loans. There are various benefits attached with the home loan. Home loans offer larger amount loan with a longer repayment term. Home loans offer you the opportunity to borrow a loan for any amount ranging from £3000 to £500,000. Home loans give borrowers the option to pay either fixed interest rate or adjustable rate interest rate on the money borrowed. Fixed interest rate option implies that interest rate will remain the same throughout the life of the loan. This interest rate is also known as variable rate home loan.  A borrower can also opt for interest-only loan option. Search for lenders who provide home loans. You can apply for a home loan online too. Collect loan quotes from lenders and compare them to find the best home loan. Dream to own a home can come true with a home loan.

 Here are four easy ways to buy a house with bad credit. Get a relative who has good credit to purchase the house on your behalf. A family member with a solid credit history, will get a good interest rate thereby making your monthly mortgage payments more affordable. Once you raise your credit score, you can refinance the mortgage to get a lower interest rate thereby reducing your mortgage payments. Seller Financing. Get the seller to finance your home purchase. In a wraparound mortgage, you purchase a house by assuming a subordinate mortgage to the original mortgage on the house.

Improve Your Home With Bad Credit Loans

You take home loans. Home loans are easily available and very appropriate for someone looking for home loans. With home loans you can borrow over 90% up to 125% of your home value. Home loans are wise financial way especially with low interest rates. The interest rates on home loans are either fixed rate or adjustable rate. A fixed rate home loan will have the same interest rate for the entire loan term. The adjustable rate home loans start with low interest rates. With Home loans, you can borrow from £3000-£500,000. Home loans can be used for any purpose. Home loans for home improvement purposes can add equity to your home. Home loans for debt consolidation are a financially viable plan.

You can eliminate higher interest rate debts with home loans consolidation. High rate credit cards, unsecured loan or any other loan can be consolidated and replace by debt consolidation home loans. Look for comfort level while opting for home loans.  The interest rates for bad credit loans tend to be the highest rates on the loan market. Equity is the difference between your home value and the debt that is currently secured with your home (mortgage). This exceeding value can secure another loan; this loan is called home equity loan or second mortgage. The interest rate on bad credit loans tends to be high. However, since bad credit home equity loans are secured loans, the risk is greatly reduced. Home equity loans have probably the lowest interest rate along with home loans. Bad credit only adds up a few percentage points to home equity loan's APR.

Mortgage affordability calculator

Mortgage affordability calculator. A mortgage payment calculator is the first thing most people search for when considering refinancing a mortgage, or buying a new home. Using a mortgage calculator, you can apply today's interest rate to the amount of your new mortgage, and find out what your new monthly mortgage payment will be. You can easily find a mortgage payment calculator online. For example, there are free mortgage calculators on several sites, which allow you to enter the interest rate, the term of the mortgage, and the mortgage principal amount, in order to calculate your new monthly payment. Use the mortgage calculator to make sure your new mortgage is affordable.

Here's some more detail about the 2 ratios Front Ratio: This ratio gives you an idea of what percentage of your gross monthly income goes towards the total monthly house payment including mortgage and any other housing cost. It is calculated by dividing the total payment on all your debts (including house payment and other debt obligations) by the gross monthly income. The standard ratio preferred is 36%.

An example on how to find out if you can afford a mortgage

Let's say that you need a loan amount of $100,000 for a period of 10 years. The mortgage rate = 6.5%, Annual property tax = $1500, Using How much house can I afford Calculator, you get: Monthly mortgage payment (principal + interest) = $ 1135.48

Total monthly debt payment = 5260.48

The monthly income that you require for mortgage payoff = 15029.94

The above calculation implies that if your monthly income is around $15029 or even more, only then you'll be able to afford a mortgage amount worth 100,000 for a repayment period of 10 years.

Related Post :

First time home buyers 

Mortgage calculator with taxes