Tag Archives: Loan

4 Loan Terms for the Lone Millennial

Loan on the monitor of a macbookNow that you are a grownup, here are the kinds of loans you might want to note. First off, let us understand what a loan means. It means you ask someone to lend you money so that you can buy something you originally could not, like a house.

After you buy a house, the lender expects you to repay the money you borrowed.

HARP Loan

HARP stands for Home Affordable Refinance Program. It is basically for homeowners who need a stable and more affordable loan. Studies also show that HARP loans have helped people who owe more than their home is now worth.

If you are an aspiring homeowner, let a home loan company grant HARP to you.

VA Loan

This kind of loan is meant to be used by those in active duty Military Service, veterans, and eligible surviving spouses. You can say it is a thank you to these people for their service to the country. Like your usual home loan, you can use the VA loan to buy, build, and maintain a house.

FHA Loan

An FHA home is like the HARP Loan since they designed it for everyone. The difference is that it has backing from the Federal Housing Administration (hence the FHA initials) and that it actually does not loan money.

What FHA loans do is provide lenders insurance against a borrower in case the latter does not pay the money they borrowed.

Reverse Mortgages

This is useful for senior citizens because they can get money without selling their homes. Reverse mortgages are all about assessing the value of a home. If you have a well-maintained house in a great location, you will probably get to borrow a considerable amount of money.

While these loans are different in design and target users, they all share one thing in common: to help people secure a home. This is helpful for young professionals who want to settle down and find a new place they can come home to.

What Are the Costs Covered by Construction Loans?

Piggy bank and paper house and coins stack for mortgage loans conceptA construction loan is a short-term loan given to a borrower to foot the costs of building a home. Most construction loans have very strict rules for eligibility. Lenders typically require a qualified contractor. They are part of the construction team and detailed building specifications.

A majority of creditors ask for 20–25% in down payment for a construction loan in Utah, according to American Loans. This protects the creditor from loan defaulting. In most construction projects, the capital budget is normally divided into various cost components. These costs vary depending on specific projects. Here are the most common elements.

Hard Costs

These are the costs of equipment, labor, and materials needed for construction. Hard costs sometimes also include communication costs, decoration, and fixtures. A borrower’s equity often funds any hard costs not covered under a loan contract.

Site Costs

These include the cost of buying land, legal fees, taxes, brokerage commissions and insurance costs. Some construction loan lenders assume that borrowers have already paid the cost of land purchase before the loan closing. They will, however, reimburse your funds depending on the loan agreement. Land improvements such as sewers, utilities, and water are also part of these costs.

Soft Costs

These include engineering and architectural fees, taxes, permits, construction site security and various ongoing fees. The debtor incurs these costs in addition to the construction’s hard cost. The borrower pays some of these costs before the loan approval. Local councils should approve house plans, for instance, before a lender can give you a loan.

Loan closing costs also form part of your construction budget. These include appraisal fees, underwriting fees, title fees and administration costs. Construction loans do not work like conventional ones where money is advanced at closing. You first submit a draw request and other supporting documents to your creditor. They then issue reimbursement payments for completed constructions.

Best Practices to Help You Get that Personal Loan

personal loan in Utah
When you need money fast, loans are the best way to acquire what you need. You can choose from a variety of loans here in Utah: title loan, signature loan, car loan, personal loan, and many others. Now, you may have an experience in loans already due to past experience, or this may be your first time applying for one. Nonetheless, you can follow a few practices that can help you with your loan, specifically a personal loan.

What Do You Need?

Personal loans can be used for different purposes. Before you apply for a personal loan, you first have to think of your financial needs. Is a personal loan right for you, or is there another type of loan more suited to your needs? You can look for other loans that may be more favorable to you.

Who Do You Want?

You can next look at your lender. You can look around and shop for the best terms, best conditions, and best rates there are in Utah. Lenders come in three categories: banks, credit unions, and online or private lenders. You can research more in each category to help you choose which lender is the best for you.

What Does It Say?

It may be tedious, but reading the fine print of a contract can save you a lot of potential trouble. You can ask for a full disclosure of the loan terms used in the offered contract. You can also watch out for additional fees that may be included besides the monthly payment and the repayment.

What is Your Score?

When you apply for a personal loan, you may already know, your credit history or score plays a huge role. Depending on your credit score, you may get either a higher or lower than the average interest rate. You can improve your credit score if you have a low score by completing your repayments on time.

These are only some of the practices you can follow to help you find the best loan deal out there. You can research for more information and advice regarding loans online or from experts.

Best Practices to Help You Get that Personal Loan

4 Secrets to Help You During the Home Buying Process

Mortgage Rate in Lake OswegoBuying a home is one of the biggest purchases you’ll make in this lifetime. That’s why you need to be well-informed about every step so you can make the best decisions based on your budget, needs, and preferences. Here are a few secrets that will definitely help you buy the best property there is for you.

Don’t Move Your Money

It’s best to keep your money where it is at least half a year before you purchase a house. Making big purchases or transferring our money to other accounts can negatively affect your credit profile. Better to hold back a little bit until you finalize a loan so you can get it pre-approved without much hassle.

Get a Pre-Approved Loan

Getting a pre-approved loan will give you the best case scenario possible because you will know exactly how much you’re getting from the bank. To qualify for this, you need a clean and impressive credit report. This will help you narrow down the properties to look into based on your pre-approved loan.

Stop Timing the Market

Stop predicting when the market value of properties will go up or down. The real estate market is extremely volatile and waiting for the right time will only be a burden. Instead, focus on choosing the best property for your needs and just buy it when you’re ready.

Keep an Eye on Sleeper Costs

Aside from getting the best mortgage rate in Lake Oswego, you also need to avoid sleeper costs as much as you can. Sleeper costs are the extra expenses such as utility dues, property taxes, homeowner association fees, repairs, and maintenance costs. Prepare your budget for sleeper costs to avoid debt, advised an expert from Primary Residential Mortgage, Inc.

These are just some of the things that are rarely talked about but important in the home buying process. Make sure to remember them to be more prepared for the expenses that are involved in buying a home.

Become a Property and Business Owner through FHA 221d4 Loan

FHA 221d4 LoanQualifying for Federal Housing Administration (FHA)-insured loans gives borrowers access to a variety of housing financing options that most banks do not or have no means to offer. For example, when you secure the FHA 221 (d)(4) loan, you can get the money you need to build or renovate cooperative or rental housing properties containing 5 units or more. These include properties classified as elevator-type, detached, semi-detached, walk up, or row rental or residential properties.

Key Aspects of the FHA-HUD 221(d)(4) Loan

The HUD-guaranteed FHA 221d4 loan offers some of the multifamily industry’s best features and functionalities. It has the lowest cost yet highest leverage loan that businesses and organizations can qualify for. In addition, this non-recourse loan comes with a fixed rate. Borrowers also get to enjoy full amortization for 40 years. The term itself totals to 43 years, with the 3 years having an interest-only fixed rate specifically designed for the time needed for the building’s construction.

As the owner, you have the freedom to choose anyone or any family to rent out the units to, as long as their mortgage comes insured with this particular HUD-guaranteed loan. Your tenants do not need to have any income limitation as well. You may also have some of the units designed for the specific requirements of handicapped or elderly occupants.

Quick Facts and Highlights on the Loan

As of January 2016, the FHA-HUD 221(d)(4) loan’s term has gone up to 40 years, with its fully amortizing interest rates featuring the fixed-rate type. The interest rates vary, of course, but as of the date mentioned, they range anywhere from 4.10 to 4.75 percent, including Mortgage Insurance Premiums (MIP).

All borrowers of the loan need to agree to undertake the HUD pre-review process, and because the minimum loan amount totals to $5,000,000.