Reverse mortgages or lifetime loans are an increasingly useful source of revenue for our ageing population. In essence they are a very simple concept. If you own your own home and have paid up all your mortgages but this has left all your money tied up in the home, you can release a percentage of the value of your property with a reverse mortgage.

If you are in the situation where you find that there is no discretionary spending money available or you are faced with a financial emergency such as urgent medical needs or home repairs these sorts of things can run into thousands of dollars. So you really only have the two choices on a limited income. One you can sell the house and release funds. That, however, means leaving your much loved home and may also mean that you are forced to take a less desirable property in an inferior neighborhood. Sure you free up, maybe $100000 but in the process you’ve had some pretty heavy expenses with real estate fees for selling your home and all the other legal and moving expenses that are an inevitable part of changing houses.

That is one scenario and one that lots of people employ in this situation. Less well known but a very viable alternative is the reverse mortgage. This loan is taken out on the security of your property but unlike a mortgage there are no payments for the duration of your time in the home. Interest accumulates and is payable either on your death, when the house is sold or on you voluntarily selling your home to move on for whatever reason.

Meanwhile you have had the money to spend at those times of financial emergency or even maybe to take that trip of a lifetime. You have not had to move house and you can continue to enjoy your current lifestyle. Not only that but you can continue to benefit from the increasing property value of your home.

You may like to use your reverse mortgage to take out a lump sum and then as property values rise take out further lump sums. You may even prefer to have a regular monthly payments. Many of the companies specializing in those types of financial instruments can be very flexible and if you are over 60 and have no savings then this is something that you should definitely start to explore.

Fees on these loans can range between very little to very high, depending on your provider. If your need is urgent and important to your well being, you may find that you are eligible for government agency help. In any event check out all your options and get advice on fees. Perhaps you are going to move house in a year or two anyway and for a short term loan the fees may make this type of loan uneconomic. It may be that in these circumstances just a regular loan might be better.

Despite some drawbacks reverse mortgages are a very useful source of money for many older people that own there own homes. It is certainly worth exploring and a way of enjoying the fruits of a lifetime of work while you are still able bodied. What is the use of tying up all your money in property until the day you die when you could be enjoying the use of some of that equity now.

Posted by Home Loans as Home Loans at 10:37 AM CDT

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If you are an investor that sells properties using lease options you no-doubt understand why it can be an appealing avenue for those that need rental history and/or rent credits to help a challenging credit file. But, would YOU consider buying a property using a lease option? You better!

There is a reason that some of the most successful real estate investors, including Donald Trump, use the lease option technique (ok, there are actually several reasons!).

Appreciation: One of the typical advantages of controlling a property using an option is that the buyer retains the right to capture some, if not all, appreciation during the term. The longer the term, the greater the appreciation can be. In the single-family arena, where terms are usually 12-24 months, even moderate amounts of property appreciation can add up. For the buyer, especially, every percentage point of appreciation counts. And, if you’re nice enough to offer (or get) a 24-month term in a market increasing at 3% annually, $6,000 on a $100,000 property is significant.

Principle Pay Down: If an option is accompanied by a lease the possibilities are greater for increased equity build up. By applying a portion of the monthly lease payment amount to the purchase price of the property one has the opportunity to widen the gap between the market value and the loan amount. Depending on whether the monthly rent amount is inline with market rates…this is free money! A 30-year amortized, $100,000 loan at 7% begins at approximately $82 per month of principle payments. A $100 per month rent credit beats that, dollar for dollar, every month for almost 3 years!

No New Loan: Possibly the most noteworthy advantage of using a lease option in the residential market is that when the Optionee begins the purchase process no “new loan” is required. The prerequisite for this may be working with the right and informed mortgage broker but is usually easily accomplished through a refinance. This can mean no additional out-of-pocket monies for closing.

No Down Payment: I know what you’re thinking, “I would never offer such a thing!” You don’t have to. As a real estate investor rich in tools to find motivated sellers, you could get your next home using this lease option technique with no money down. You don’t have to tell the seller that an option fee may be customary!

When you add it all up the numbers are hard to resist, so don’t try! If you’re in the market for a new (or new to you) home, use your own strategy against you!

Posted by leaddog50 as Home Loans at 3:02 PM CST

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Your credit report is an important document which may affect you more than you think. It is perfectly possible to see a copy of your credit report. But why would you want to read your credit report, and how do you find it?

In the US there are 3 agencies which keep information on you and your credit. This information includes a whole range of details on many of the financial transactions that you make through your life. You may not be aware of it but much of your financial data is kept by credit agencies, and can seriously affect your life.

Opening a bank account, considering letting a bill slide a little until it’s overdue, going for a loan, buying a house? Any one of these transactions and many many more are all recorded on your credit report. Information is kept on where you live, how you manage most of your finances, much of your criminal history if you have one, your history of loan repayments and much more.

And this information is not just kept there for the sake of it. This information is used to assess your credit worthiness so that when you go for a new loan, for example, the organization through which you are applying can access this information to help it decide whether or not it ought to grant you the loan.

You are in fact, rated for your credit worthiness using this information collected on you, and a credit worthiness score is applied to you. This score is part of the information that an organization may wish to find out if they are judging your credit worthiness.

Something as simple as missing a few bills because you were on holidays can quite seriously affect such things as your ability to obtain credit in the future.

So as you can see the information kept in your credit report is important information and can affect your life in ways you may not be aware of.

For this reason it is important to know what information is kept on your credit report. It is not unheard of, for example, for there to be inaccurate entries on your report and if you are unaware of this and therefore cannot correct it this inaccurate information may well cause you all sorts of unexpected problems.

So, how do you get a copy of your credit report? Luckily you are entitled by law to get a free copy of your report each year. You will need to provide your name and address as well as your social security number and date of birth to identify yourself, as well as possible former addresses if you have moved recently.

To get your credit report ring 1-877-322-8228 (toll free) and proceed as directed.

So remember, you are entitled to a copy of your credit report free each year. Make use of your entitlement, check your report and see if there is anything there which could be causing you a problem. If there is then you can start finding out what to do about it.

Posted by leaddog50 as Home Loans at 4:12 PM CST

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If you own your home you have a financial resource available to you that can help you with your financial needs or concerns. What is it? HOME EQUITY!

Equity is the value of your home minus the remaining mortgage balance which is outstanding. While you live, eat and sleep in your home worrying about debts or wishing you could refurnish the living room you may be sitting on the cash that will grant your wishes.

Why Would You Want an Equity Line of Credit?

Unlike a typical loan which deposits a set amount of money in your account and begins charging you interest and payments at a fixed rate until repaid, a line of credit acts as a revolving credit (like your credit card). You do not need to pay interest on the full amount you have access to — you only pay for what you have used. Also, like a credit card, when the debt is repaid you still have access to the credit.

Using an equity line of credit (also known as a Home Equity Line of Credit or HELOC) gives you greater flexibility with the least cost. Not only can you access the credit only as you need it, but your monthly payments will reflect only the balanced used. The less used the lower your payment. Some lines of credit have only the interest as the minimum payment which can be helpful when finances are tight.

An equity line of credit is great when you don’t have a large fixed amount to spend in one place that will take many years to repay and you want access to the credit without asking for a new loan when you have paid it back.

What Can I Use the Equity Line of Credit For?

While you can no doubt find numerous uses for your line of credit, here are samples of the more common reasons for obtaining an equity line of credit.

Consolidate Debts

Using your equity line of credit to consolidate other debts can not only eliminate the stress of multiple bills but can also give you a more favorable interest rate or tax benefit.

Second Mortgage

Use your line of credit to pay off the existing mortgage for better interest rates.

Add On, Update or Go Away

You may use your line of credit for renovating, buying new furniture or a car, or taking a vacation with less interest payments than using a credit card or store card making it a wise choice for large purchases.

When Should You NOT Use a Line of Credit?

Before succumbing to what seems like ‘easy money’ it is important to evaluate the additional risk.

Some debts — like student loans- have features that you may not be entitled to if you switch them to an equity line of credit.

Other items like cars and vacations may seem like a good idea to buy with your home equity line of credit, but with the ability to pay only the interest you may find the motivation to pay off the debt is lacking and end up owing for items that have lost their value or were consumable. Plan to pay off the debt quickly for the most advantage.

Second mortgage (or refinancing) may or may not be a good idea depending on interest rates and your repayment terms. While lines of credit take advantage of current low interest rates you may find that your regular loans protect you better from fluctuating rates if you will not be paying the loan down in the next few years.

Using your finances wisely can give you great relief and freedom. Before taking on any financial obligations it is important to understand the risks as well as the benefits.

Posted by leaddog50 as Home Loans at 8:27 PM CST

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It used to be that “people” made decisions about your credit worthiness. You knew your banker and your handshake was all the collateral you needed. Those days are long gone, and now a single number - your FICO score - determines your credit worthiness.

Although there are several credit models, the most commonly used is FICO, based on a model created by Fair, Isaac Company. Their consumer website is myfico.com, and you can find information about the FICO credit scores there.

Your FICO credit score can be used to determine your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money.

Preserving your FICO score, and improving it, is not difficult, but it may take time. Here are some tips to maintain and improve your score, based on three credit situations.

Strategy One: Obtain a Credit History

There are many reasons you may have no credit history. Maybe you’re just starting out, maybe you pay cash for everything and have never needed a loan. In any case, if you have no credit history, your FICO score is likely to be low.

The easiest way to raise your score is acquire a loan, and pay it off on time. In general, installment loans are weighted more heavily than credit cards. In other words, you will improve your credit score faster if you buy goods with an installment loan, rather than acquiring a credit card.

Another way to acquire a better credit history is to take $1000 and open a 6 month CD account at a financial institution. Now, get an installment loan for $1000, using that CD as collateral. Now, here’s the trick. Take the $1000 loan, and open another 6 month CD account at another institution. Take another loan for the $1000 at the second institution. Do this one more time.

Now what you have is 3 loans. Pay the minimum payment for 6 months. In the last month, cash out your CDs and pay the loans off. You now have a credit history, and did not go into long term debt to get it.

Strategy Two: Maintain Your Good Credit History

Good job - you have paid your bills on time, and do not have high credit card debt. Here’s some ideas to keep your FICO score as high as possible.

First, don’t close your old accounts. One part of your credit score is based on the amount of credit available verses amount of credit used. Closing old accounts can lower this part of your score.

Second, paying off your credit cards every month is good money management, but you may be able to improve in this area. Here’s the scenario: you have a $2000 credit card. Every month, you charge about $1800 to that card. And, every month you pay it off. But here’s what happens - your credit card company reports your credit information monthly to FICO. If they report it before you pay off your card, it looks like you carry a balance on your credit card every month. You may find your FICO score improves if you pay off your credit card at a different time of the month.

Strategy Three: Repair Your Poor Credit History

For whatever reason, if you have a poor credit history, there are things you can do to improve your score. Some of them take time, and you will probably be best served by talking to a credit counselor to be sure that you not only repair your credit history, but also eliminate what caused that poor credit history in the first place.

The most heavily weighted part of your score is based on your payment history. The first thing to do to start repairing your credit history is to pay your bills on time. The mortgage is the most important, followed by installment loans, and finally credit cards.

The next largest portion of your FICO score is based on how you use credit. The fastest way to improve this is to pay down your credit cards.

One final thing to look for is errors in your credit report. Get a copy of your credit report from all three primary agencies, and look at all the entries. You can find the agencies here: experian.com, equifax.com, and transunion.com. If there are any errors, start the process to have them removed. Call your creditors - sometimes they will remove negative information.

Your FICO score is an important part of your financial life, and using these strategies may help improve your FICO score. Before making any drastic changes to your finances, consult with a financial advisor.

Posted by leaddog50 as Home Loans at 1:46 PM CDT

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Have you heard that commercial about interest-only mortgages…the one where you’re told about what a wonderful benefit it is to have a low, low mortgage payment and all the wonderful tax write-offs you will receive?

Before you decide to buy now and pay later, that is pay “big time” later, take a moment to enlighten yourself a bit more about these so-called “interest only mortgages.” Think about it for a moment. If you just pay the interest on your home, will you ever start paying on principal and will you ever earn any equity into your property?

By definition, a mortgage is a temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt. Simplified, that means you borrow money from a financial institution and they essentially buy your house and you pay it back. How can this happen if you’re just paying interest? More accurately, interest-only mortgages are a temporary reprieve for paying off a traditional mortgage. You may actually be prolonging the inevitable and eventually making it even more costly to pay off your mortgage.

Far too many people are in debt way over their heads because of interest-only mortgages. They took advantage of attractive offers to buy now and pay later. With an interest only payment you’re keeping the principal at minimum value while continuing to pay interest at 100%. With a more conventional mortgage you’d be slowly dwindling down the total interest amount.

Most interest-only payment schedules are offered on Adjustable Rate Mortgages (ARMs), but they can also be found on a fixed rate mortgage. Interest-only payment periods almost never run for the entire term of the loan which is typically 15 or 30 years. Depending on the terms of your contract, you could be expected to start paying on the principal in five, seven or ten years. Once the interest-only period ends, your monthly payment will go up because then you’ll be paying on both principal and interest.

Conversely, interest-only mortgages can be a good thing for some people. For those people wanting to purchase a bigger/better home for a lower down payment AND who anticipate moving within seven years, the interest-only payment method may be the way to go. However, keep in-mind that in a “down” realestate market you generally won’t be building equity and making money by doing it this way. The majority of the money made from investing in real estate comes from an increase in value to the home. The average person moves every seven years anyway. Gone are the days when people stay in a home thirty years. Hence, if you anticipate moving before you’ll have to start paying on the principal, then an interest-only payment may be ideal for you.

There’s a great deal of fine print to any mortgage. Evaluate your own goals; be vigilant when reviewing the terms on the loan you’re considering before acting.

Posted by leaddog50 as Home Loans at 7:50 PM CDT

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If you are in dire need of money and don’t have the financial means for a large cash transaction to buy a house, then opting for a home mortgage is worth consideration.

Basically, a mortgage refers to a long-standing credit that a debtor obtains from a financial institution or from a property seller.

In most cases, the house is the usual collateral for the mortgage, thus the term “home mortgage”. In turn, the mortgage lender will be entitled to some legal rights upon the property as long as the mortgage is in full force or until the debtor pays back the loan.

A home mortgage serves as security for loans, thus giving the lender the power to acquire the property through foreclosure in the event that the borrower fails to pay the loan on time.

Generally, a home mortgage is comprised of a large loan. That’s why in most cases a home mortgage can take 15 to 30 years before the borrower can pay back the due amount.

In a home mortgage, the due amount to be paid by the borrower stipulates the principal amount of the mortgage and the interest owed relative to the outstanding balance. The real estate taxes and property insurance are also factored into the total mortgage balance.

Some home owners who find it difficult to make their mortgage payments may opt for refinancing of their mortgage. But for those who wish to pay off a home mortgage quickly, there are things to be considered…

First, make sure you have a stable source of income. Organize your overall financial assets to ensure that paying off your mortgage will not over-extend your cash flow. There are many such considerations that should be carefully planned and organized before resorting to pay-off your home mortgage.

It’s also important to your financial security to have a ready reserve of cash just in case of emergencies. This can be in the form of stocks and bonds, a bank savings account, or any other readily available form of cash.

Paying off your home mortgage can be a rewarding experience, but be sure to consider your overall financial status before making the decision to do so. The wrong decision can put you at great financial risk.

If you think that you are ready for the mortgage “experience” and that you have your finances securely organized, then by all means, go for it. After all, nothing beats a worry-free, mortgage-free financial status.

Posted by leaddog50 as Home Loans at 7:36 AM CDT

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So you know how people throw a bunch of crap together and try to sell it to you for $47? And most of it is recycled garbage they picked up for $1 at eBay?

Well, I’m as sick of that as you are. Which is why this post is so important.

I just found a guy who is giving away brand new stuff he just put together to help us learn how to market our online business with Web 2.0 resources.

Bob the Teacher is an expert in using free advertising. You may know him from his book, “The Best Advertising Money Can’t Buy.” Anyway, he’s put together a special set of resources to help you learn all about Squidoo.

We’re talking a full audio interview, an eBook, and more. And believe it or not, he’s practically giving it away for about a $1.

Well, at least it was $1. I’m not sure how much it is now, since it goes up everytime someone gets their copy of this package.

This is a speedsale which means that the faster you make a decision the lower the price that you will pay. The price goes up a nickel each time someone purchases the package.

Rush over there now, so you can get started with Web 2.0 right away. –> http://www.squidoosecrets.com/chase.php?vip=leaddog50

p.s. By the way, you’ll get 100% affiliate commissions right away. You may notice when you buy the SquidooSecrets kit, you are actually paying me directly! You could be next in line to get paid the whole price.

p.p.s. Of course, if you want the full deal before SquidooSecrets launches on Friday, grab the Super Kraken membership if you get the chance. You’ll be floored by what Bob’s put together! –> http://www.squidoosecrets.com/chase.php?vip=leaddog50

Posted by leaddog50 as Home Loans at 12:00 PM CST

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Your credit report is an important document which may affect you more than you think. It is perfectly possible to see a copy of your credit report. But why would you want to read your credit report, and how do you find it?

In the US there are 3 agencies which keep information on you and your credit. This information includes a whole range of details on many of the financial transactions that you make through your life. You may not be aware of it but much of your financial data is kept by credit agencies, and can seriously affect your life.

Opening a bank account, considering letting a bill slide a little until it’s overdue, going for a loan, buying a house? Any one of these transactions and many many more are all recorded on your credit report. Information is kept on where you live, how you manage most of your finances, much of your criminal history if you have one, your history of loan repayments and much more.

And this information is not just kept there for the sake of it. This information is used to assess your credit worthiness so that when you go for a new loan, for example, the organization through which you are applying can access this information to help it decide whether or not it ought to grant you the loan.

You are in fact, rated for your credit worthiness using this information collected on you, and a credit worthiness score is applied to you. This score is part of the information that an organization may wish to find out if they are judging your credit worthiness.

Something as simple as missing a few bills because you were on holidays can quite seriously affect such things as your ability to obtain credit in the future.

So as you can see the information kept in your credit report is important information and can affect your life in ways you may not be aware of.

For this reason it is important to know what information is kept on your credit report. It is not unheard of, for example, for there to be inaccurate entries on your report and if you are unaware of this and therefore cannot correct it this inaccurate information may well cause you all sorts of unexpected problems.

So, how do you get a copy of your credit report? Luckily you are entitled by law to get a free copy of your report each year. You will need to provide your name and address as well as your social security number and date of birth to identify yourself, as well as possible former addresses if you have moved recently.

To get your credit report ring 1-877-322-8228 (toll free) and proceed as directed.

So remember, you are entitled to a copy of your credit report free each year. Make use of your entitlement, check your report and see if there is anything there which could be causing you a problem. If there is then you can start finding out what to do about it.

Posted by leaddog50 as Home Loans at 3:42 PM CST

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Mortgage rules have tightened recently.  Here’s some good advice. 

By Earl Juanico 

The speedy growth in the use of non-traditional home mortgage loans, particularly among less creditworthy borrowers in the population has alerted regulators who now want to tighten up requirements for those who want to avail of the loans. This generally implies that lenders are obliged to squeeze underwriting requirements including less dependence upon credit scores and more reliance on documented proof of one’s income and repayment capacity. The Feds say that models of creditworthiness that incorporate less documentation have not been tried in a stressed environment, like the general housing market at present, characterized by falling home sales and prices and rising mortgage rates. If you haven’t already gotten the trouble-free mortgage money of your preference you could see fewer loan choices, a more stringently examined application and escalating pressure on interest rates due to the combined forces exerted by current market conditions and new rules. Here are some ways to improve the odds of getting the loan of preference.

First, be aware that information resources regarding home mortgage loans are vast. These include, on top of all, the Internet. Other information resources that include mortgage books, topical newspaper articles, consumer seminars and workshops, real estate agents, mortgage brokers and lenders, financial planners, are all available to assist on giving the insight regarding what is likely to be your greatest financial transaction ever.

Second, have a clear view of your credit report. You need to know where you stand before you apply for a home mortgage loan. You want to know if there are errors, derogatory remarks or other information that could affect your application. You may also need some time to make things as nearly perfect as possible.

Third, know and accept your limits. As it is imminent from the Feds’ proposal to curb risky home mortgage loans, lenders have been more apposite in qualifying you for as much as they are willing to lend, with terms that seem acceptable today, but could become intolerable in the future. Stretch within your limits to pay for the most home you can purchase, if you want to shun the costs of moving up or adding on later, but do not stretch beyond the limits of what you can truly afford. Determine how your mortgage payment will tally with your current budget and your future financial obligations. Reckon all the costs of home ownership from rising rates on adjustable rate mortgages to insurance and taxes as well as the cost that offset financial benefits of owning a home such as equity growth and tax breaks.

Fourth, comparison shopping is a reliable friend. You have to shop for mortgage lenders, brokers and online mortgage outlets in order to compare and assess what is best. To the extent that it is possible, compare all broker fees, major loan costs, rates, points, and other costs to come up the best assessment.

Fifth, be prepared. When the moment comes for completing your home mortgage loan application, have all pertinent documents ready. You may have to prove employment, job tenure, employment stability, income, assets and liabilities. Keep handy your pay stubs, tax returns, rental agreements, divorce decrees, proof of insurance and any other documentation that might support your application papers.

Sixth, never hesitate to solicit as much help as you need. Whenever possible, pull along all those documents to the broker’s or lender’s office and let the broker or loan officer help you out with completing the application correctly the first time. You can also seek assistance from a housing agency, independent mortgage counselor, financial planner, social service agency or other person you might consider an expert.

Seventh, make sure to settle on one loan if you have done your own research. Complete one application and see it through. Do not hit two birds with one stone at the same time. Online applications make it easy to fire off several quick applications, but each one could trigger a credit check. That could send the wrong signal to a lender who could reject an application that yields a credit report with numerous credit checks in a short period.

Lastly, you have to stay put and have patience. Do not complete filling up an an online mortgage application, if you do not have Internet access at home or you will defeat the purpose of the automated online mortgage process. Do not plan a vacation, road trip or getaway during the application process. If there are questions about your application, you’ll need to be available to address them quickly.

Posted by leaddog50 as Home Loans at 10:46 PM CST

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Here are some things to know about second mortgage lenders. 

By Marcus Peterson 

As with any investment, taking a mortgage requires analysis. It is a good idea to research different mortgage lenders before choosing one. A mortgage lender is an individual or company the loans money. People have to repay the money loaned and interest. Choosing the correct moneylender is vital when getting a mortgage or second mortgage.

Several aspects have to be taken into account. For instance, people have to know their credit rating, decide if they want a fix rate mortgage or an adjustable mortgage, and check out if they qualify for special government programs. Again, most people need a financial advisor since the chances to make a mistake are big. Such an advisor, after analyzing the client’s personal status can then point out which mortgage lender to use.

There are many lenders out there trying to lure clients into loaning money from them, so the possibilities are practically endless. Although the offers are sometimes quite similar, several subtle differences can be better or worse in each individual case and can influence the person’s choice. For example, one may offer to be paid an interest of 15% in 25 years and another one offers the possibility of a 10% interest in 10 years. It is important to take the time to evaluate each lender’s offers to the letter and the particular interests and financial power of the person taking the loan. People must be even more careful when choosing a lender for a second mortgage.

Second mortgages have higher interests and are usually set up on a shorter period of time. The lender is taking a risk, since people might choose not to pay the second loan in the favor of the first one. That is why the terms vary from the first to the second mortgage. Several aspects should be taken account and attention and analysis of offers is very important.

Posted by leaddog50 as Home Loans at 8:49 PM CST

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Here is some good information if you have thought about applying for a home equity loan. 

By Carrie Reeder 

Home equity loans have many useful purposes. On average, homeowners select these loans as a way to reduce and eliminate their credit card debts. This is a wise tactic considering that home equity loans have lower rates than most credit cards. Homeowners also have the option of choosing an equity loan with fixed rates and terms. Even though home equity loans are easier to qualify for than most loans, lenders consider several factors before approving a loan.

Understanding Home Equity Loans

If applying for a home equity loan, homeowners must assess their personal finances beforehand. Home equity loans are very popular. Because of low rates, they present the perfect opportunity for becoming debt free or financing a home improvement project. Furthermore, those looking to start a new business may use their home’s equity as seed money.

These loans are secured by your home’s equity. Thus, mortgage lenders are more apt to approve a loan request. With this said, getting an equity loan with a low credit score is feasible. In this situation, choosing the right lender is very important.

Mortgage lenders have different lending guidelines. If you have poor credit, it may be unwise to secure a home equity loan with a traditional mortgage lender. Most likely, your credit score will fall short of their requirements for a prime loan. Hence, the rate obtained on a home equity loan will be slightly higher. However, you can avoid a high rate by using a high risk or sub prime lender.

Applying for a Home Equity Loan

Although poor credit mortgage lenders are flexible, they do not approve risky loans. For this matter, lenders carefully assess several factors before granting a poor credit home equity loan. For starters, lenders will review credit history. There are limits to bad credit equity loans. To qualify, a homeowner’s FICO score cannot fall below 540. Some lenders set the minimum credit score at 500. Also, mortgage payments must be current to qualify.

Try using one of ABC Loan Guide’s Recommended Poor Credit Home Equity Loan Lenders.

Furthermore, mortgage lenders require homeowners to be employed and able to repay the funds. Home equity loans create a second mortgage. If approved for a loan, you must be able to afford an additional monthly payment. The majority of mortgage lenders will not approve a questionable loan. Thus, homeowners will be asked to supply W2’s, tax returns, etc.

Posted by leaddog50 as Home Loans at 9:18 PM CDT

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If you’ve ever wondered about your FICO score, here is some good information for you. 

By Carrie Reeder 

If you have bad credit history and are looking to get a home mortgage loan, then chances are you are going to need to know all about how the FICO credit scoring system works.

FICO – Fair ISAAC & Company – is the leading credit reporting agency that lenders turn to when it comes time to credit scoring your home loan mortgage application; so if you do have bad credit history, these guys will know.

The formula used by FICO cannot be disclosed because of a decision made by U.S. Congress. There are some things generally known about FICO which that could help you understand why and how you can get approved:

1. The higher your FICO score, the better chance you have of getting that home mortgage loan. Also, the higher your score, the more room you have to negotiate a lower interest rate.

2. If you have a FICO score lower than 500, there is very little chance you’ll be getting a mortgage home loan.

That said, if you have a score of:

500 – 600 you should be able to get a home mortgage loan, provided you are willing to make a down payment.

600 – 640 You should get a 100% home loan financing. Thats right, with no money down.

640 - 700 You should be able to be approved for a 125% home mortgage loan. 700+ You’re in the drivers seat! You should be able to get an excellent rate with excellent terms.

3. FICO depends on each credit report, so before you apply for a home mortgage loan, if you have bad credit history, get a copy of your credit report and make sure there is nothing on there that shouldn’t be there. If there is, get it changed before you apply for the home mortgage loan.

4. Wait until after you have purchased or refinanced your home before you buy anything additional on credit. More loans or higher balances can have a dramatic effect on your mortgage approval, regardless of whether or not you had over a 600 FICO score before you bought on credit.

5. Remember, the FICO score is only a part of your home mortgage loan application, so if at first you don’t succeed in getting your home loan mortgage, don’t give up. Some lenders may still be willing to lend to you!

People with bad credit often don’t understand how the credit scoring system works. It is beneficial to find out more about it when looking to get a home loan with less than perfect credit to bad credit or when dealing with sub prime mortgage lenders.

To view our list of recommended bad credit mortgage lenders online, visit this page: Recommended Bad Credit Mortgage Lenders

Posted by leaddog50 as Home Loans at 4:09 PM CDT

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Here is some good information about securing a home loan without income verification. 

By Levetta Rivera 

A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to document income.

The majority of borrowers with hard to document income are either self-employed or commission based employees. Consumers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt as most lenders use the average of your last 2 years taxable net income (the amount left after all of your deductions) to determine your income figure for qualifying purposes. This may cause you to have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the loan. With a no income verification home equity loan, however, your gross income can be used for qualifying purposes as opposed to the net income.

In order to qualify for a no income verification home equity loan you will, in most cases, need good credit and a high credit score. Expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you have to document your income. Also, even though a no income verification loan does not require you to document your income, some lenders may require that you have a certain dollar value of assets on hand which must be verified. Not all lenders have this requirement though - some lenders offer a program called NINA which stands for “no income no assets” meaning you do not have to document either. Loan guidelines and rates vary from lender to lender so it is a good idea to shop around to increase your chances of getting the best deal available to you.

For more information on no income verification home equity loans, or to compare rates and programs of home equity loan lenders visit http://www.equityloansource.com

Posted by leaddog50 as Home Loans at 10:32 AM CDT

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Read this article for information about securing a home loan if you have credit problems. 

By Carrie Reeder 

Getting a home loan with bad credit has actually never been easier than it is today. Here are some tips to help improve your chances of success:

Find A Good Real Estate Deal – If you can find a property that has some equity in it when you purchase it, you may have an easier time getting financing on that property. To the lender it may be almost as good as if you had some kind of down payment on the property. Some lenders will consider the properties loan to value ratio when they consider the loan. Talk to your mortgage broker and see if this factor could help you get qualified.

Try Creative Financing – See if the seller would be willing to carry back a second mortgage on the home. This is where you set up a contract or agreement with the seller that you will pay them monthly payments, including interest of, let’s say, $150/mo on $10,000 dollars of the price of the property, as a second mortgage. Then, to make it nice for the seller, perhaps put in the agreement that the entire amount is due in full within 2 years or something. That should give you plenty of time to refinance and then the seller doesn’t feel permanently locked into the contract.

Save For A Down Payment – There are lenders who may be able to qualify you for 100% financing, even with low credit scores, but your interest rate will be much lower if you can put even 3-5% down. If possible, try to save as much as possible for a down payment. Sometimes it may be better to wait about 3-6 months to get into a new home loan if it means the difference of having a down payment. The interest rate could be quite a bit better because of that factor. However, if you don’t want to have a down payment, you can always refinance later for a lower interest rate.

Shop Around – There are some mortgage brokers out there that you will talk to who will say, “I can’t help you, and if I can’t help you, no one can help you.” But, if you persist in talking with other brokers, 10 minutes later you could be talking to someone who knows a way to help you, no problem. Most brokers feel that if they can’t help you, no one can. However, the ironic thing is that each broker is varied in the types of loans they can do. Some brokers have relationships with flexible mortgage lenders and others do not. I recommend applying online to mortgage services that will submit your application to multiple lenders. That way, your credit is only pulled once, and you can analyze offers from multiple lenders. To see our list of recommended bad credit mortgage lenders, visit here recommended bad credit mortgage lenders

Improve Your Credit Score – There are some really simple ways to improve your credit score without spending too much time at it. All 3 major credit bureaus now have areas on their websites where you can dispute incorrect items on your credit. The process is very quick and easy. Make your current payments on time to help your score. Keep your number of credit inquiries down. Too many inquiries can hurt your credit score. If you want to buy a house, don’t apply for any credit cards, auto loans or any other type of loan if you can avoid it. For your reference, here are the links to all 3 major credit bureau’s websites: www.abcloanguide.com/credithelp.shtml

If you really do want to get into a home, don’t let bad credit stop you. There are lenders out there who can help you, it just takes some persistence. Apply with multiple lenders. Like I said, apply with mortgage services that specialize in bad credit mortgage loans and will submit your application to multiple lenders with only having one credit inquiry.

Posted by leaddog50 as Home Loans at 11:11 PM CDT

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 By Levetta Rivera

If you are a homeowner in need of a home equity loan but you have not yet built up any equity in your home, don’t despair. A 125 percent equity home loan may be the answer.

A 125 percent equity home loan is a second mortgage loan that allows you to borrow up to 25% more than the value of your home. For example, if your home is worth $100,000 and you owe $100,000 on the mortgage, this loan program would allow you to still borrow up to $25,000.

The 125 percent equity home loan is offered by various online lenders. Each lender has their own qualification and loan term guidelines but generally this is a credit score driven loan program. Credit score driven means that you have to have a certain credit score to qualify for the loan. In addition, your credit score usually determines the maximum loan amount you may qualify for and the maximum cash in hand you may receive. Also, some 125 percent equity home loan lenders may require seasoning on the length of time you have lived in your home. Three months is normally the minimum.

When it comes to a property appraisal, most 125 percent home equity loan lenders do not require you to obtain one. They generally will use the purchase price of your home as the value if you have lived in your residence for 12 months or less. If you have lived in your home over 12 months, a recent tax assessment, simple drive-by appraisal, or automated value model (avm) can be used. An avm is a computer generated assessment of your home’s value which is based on recent home sales of comparable houses in your neighborhood.

For more information on 125% home equity loans, or to compare rates and programs of 125% home equity loan lenders visit http://www.equityloansource.com

Posted by leaddog50 as Home Loans at 1:11 PM CDT

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by Jimmy Sturo

A Home Equity Line of Credit, abbreviated as HELOC, allows a mortgager to borrow money using the home’s equity as collateral. In a way, it helps the borrower to increase monthly savings by reducing payments. In this borrowing method, the equity that the borrower built up in the home acts as security for any financial needs.

The term equity in a Home Equity Line of Credit is defined as the difference between a home’s market value and the amount outstanding on the mortgage. HELOC is entirely different from a standard loan, because the borrower is restricted to a period of time, preventing excess borrowing and limiting interest costs.

For people who don’t have ready cash for a down payment, the Home Equity Line of Credit is a good alternative. HELOC have been in demand since the mid-80s. The loan provides the mortgager with extra cash in large amounts that can be used for expenses such as home improvements, property purchases, educational and medical expenses and small business expenses. HELOC works like a credit card because it has a revolving balance. It is sometimes referred to as a second mortgage.

The repayment period of HELOC is about 15 years, which is shorter than the first mortgage. The interest rate varies over the life of the loan. The payments also vary depending on the interest rate and the amount owed. Flexible repayments, flexible term and personalized equity checks are some of the features of HELOC. It also provides certain tax advantages that are not available with other loans. The line of credit in HELOC has no expiry date and the borrower can use it as long as he needs it.

In short, a Home Equity Line of Credit is a resource that can be used any time, for any kind of expense.

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