Thursday, January 31, 2013

Seeking Va Home Loan With Bad Credit: The Major Considerations

Veterans are not immune to financial difficulties. In fact, they face arguably more difficult challenges than we do since they must first adjust to life outside the military, establishing a new career etc. So, when it comes to seeking a mortgage, the challenge can be very big. Thankfully, the ability to secure VA home loans with bad credit offers a solution.

The Department of Veteran Affairs (VA) was established to help military veterans returning from conflict to return to civilian life, and finance is a major part of their efforts. With their support, veterans have a far better chance of getting approval, despite bad credit scores, and to ultimately buy the home they want.

What is more, because of the terms available, they are much more affordable than their civilian equivalent. Remember, the VA does not issue mortgages, only underwrites them. Nevertheless, a VA home loan still offers veterans and their families highly attractive options.

Qualifying for a VA Mortgage

It is no surprise that those seeking to secure a VA home loan with bad credit need to be former members of one of the branches of the military - either the US Army, Marines, Navy or Air Force, or the Home Guard, Reserves or Coast Guard. But there is more to it than that.

Applicants also need to have at least a respectable credit history. For example, prior to the date of the application, they cannot have defaulted on a loan for 12 months, or have been declared bankrupt for at least 24 months. To secure approval despite bad credit, the veteran needs to convince the lender, but the lenders is not the VA.

There are special circumstances considered too, with bankruptcy that was brought on by circumstances beyond the control of the applicant not viewed as seriously as bankruptcy caused by poor money management. A debt settlement does not affect the chances of getting a VA home loan.

Credit Scores Are Limited

Of course, there are ways to greatly improve the likelihood of securing a VA home loan with bad credit, with increasing the credit score one of the most effective. Taking out some smaller personal loans, and repaying them in full very quickly, has a definite benefit to these scores. Each time a loan is cleared, regardless of the amount, it pushes the score upwards,

If a bankruptcy exists on a credit record, as soon as the discharge is received, notify the credit rating agencies so they can remove it from the record. They will then increase the score to reflect the removal of that debt. Remember that getting approval despite bad credit is easier with a higher score.

Also, opening two secured credit card accounts, each with just small balances is another way to vastly improve credit ratings. Of course, paying the balances immediately after they are used is essential. Then getting better terms on a VA home loan is possible.

Secured Credit Cards

As mentioned, secured credit cards can help in securing a VA home loan with bad credit. But it is worth noting that the terms available from a VA mortgage make approval despite bad credit much more probable.

VA home loans come with terms where 25% of the mortgage is guaranteed by the VA. Because just 75% of the mortgage is unsecured, the interest rates are lower, and the repayments are more affordable. So, even with a slightly improved credit score, the savings compared to a normal mortgage deal can be huge.

Monday, January 28, 2013

Can You Get a Mortgage with Bad Credit?

Applying for a mortgage loan can become more difficult when your credit score becomes a hindrance. Banks and lending companies generally look for customers with good or excellent credit to minimize the risks. If you have bad credit, a mortgage lender may consider you as a "high risk" customer, and thus, decline your home loan application.

However, it is still possible to acquire home loan financing despite having bad credit. In this post, let's talk about some points you can consider if you plan to obtain a mortgage loan.

FHA and VA Loans

A consumer can get an insured loan from the FHA (Federal Housing Administration) or the VA (U.S. Department of Veterans Affairs). FHA insured loans are offered to consumers who belong to the low income bracket that they cannot afford to pay the standard down payment required by lenders. VA insured loans are available for military veterans. If you are eligible to apply for FHA or VA loan, then you can get home financing even if you have a low FICO rating. In fact, some lenders accept credit scores as low as 580. The minimum qualifying score varies from one lending company to the next.

Piggyback on Someone Else's Good Credit

If you need to apply for a mortgage loan but with bad credit, you might be able to improve your chances by getting a co-signer. Needless to say, you need to find a co-signer with excellent credit rating. More importantly, you need to find someone who is willing to co-sign your home loan on your behalf.

Co-signing a loan is a serious responsibility. Keep in mind that in the event of default, it is the co-signer who is held responsible for the repayment of the debts. With this in mind, finding a co-signer who will back-up your mortgage loan will not be easy. If you are a couple and one of you has excellent credit, then the one with a more favourable rating can apply for mortgage.

Raise Your Credit Score

Have you checked your credit report? It may be possible that the reason for your very low score is that there errors or unauthorized charges in your report. Sometimes, another person's credit history may have been mixed-up with your file. Therefore, before applying for mortgage, you should order a copy of your credit report from each of the three major credit bureaus.

Carefully scan your report for errors or misinformation. Should you find any, sent a letter right away to the bureau that issued your report so that an investigation can be started right away. If proven correct, instantly improve your score by a number of points and the bureau will send you an updated copy of your report for free.

Wait Awhile

Is it possible for you to wait out for another six months to a year before applying for mortgage? If yes, then you are encouraged to wait awhile so you can work on improving your credit score. This way, you better mortgage loan options will be available for you. Not only can you expect easy approval but good rates and reasonable repayment terms as well.

Sunday, January 27, 2013

Self-directed Iras - Why Dividend-paying Whole Life Insurance Offers An Attractive Alternative

Are self-directed IRAs all that they are built up to be? Let's consider that question. We've all been sold on the idea of IRAs as a wise investment product. Contributions accumulate in value during your working years, allowing you to enjoy the fruits of your labor upon retirement. And they do offer tax benefits to their owners. Sounds great. But when looked at closely, you begin to see the limitations of IRAs.

Understanding the Limitations of Self-directed IRAs
Self-directed IRAs, in particular, are attractive to many people who like the idea of controlling where their money is invested. You can use these accounts to contribute and control your investments in the stocks, funds or bonds of your choosing. When using traditional IRAs, your contributions and capital gains are tax-deferred, allowing more of your money to be used in an investment strategy.

The limitations of these IRAs, however, is in their nameIndividual Retirement Accounts. As a financial tool, these accounts are strictly for retirement, and they are regulated by the IRS as such. If you don't follow their rules, you can lose your tax benefits.

To begin with, the tax benefits of these accounts are limited. Contributions to traditional IRAs are made tax-free, but get taxed upon distribution. Roth IRA contributions go in after tax, but distributions are tax free. Also, if your Adjusted Gross Income is K or more (single) or 9K or more (married) then you will receive no deduction on your federal income tax filings for your self-directed IRA contributions. So for those earning more than those amounts, these accounts are hardly a tax relief vehicle and seriously limits their value as an investment product.

The IRS also regulates the contribution amounts, investment use and distribution of these types of accounts. There are limits as to how much you can contribute annually. Currently, if you are younger than 50, ,000 is your limit. If you are older than 50, you can contribute up to ,000.

Self-directed IRAs are also limited by what you can use your money for. There is a self-dealing rule, for example, that says you can't act or benefit on your own behalf as a trustee of your money. Basically, you can't have any direct or indirect personal involvement or gain from any of your investments. That includes renting a house you bought to a family member. If you used self-directed IRA funds to purchase that house, you can't even fix the kitchen sink...let alone allow your niece to rent it. These investment limitations are fairly severe.

The same limitations exist when it comes to the distribution of your funds. With few exceptions, you can't access your funds until you reach the IRS retirement age. If you do so, those funds will be subject to the normal income tax plus a 10% withdrawal penalty.

Offering a Better Way
Dividend paying whole life insurance offers a platform that provides many of the same benefits of an IRA, but without the limitations. In fact, when used as an Infinite Banking System, the cash value growth and tax benefits of these policies go above and beyond most retirement investment strategies.

With a dividend-paying whole life policy that is structured to work as an Infinite Banking System, policyholders will benefit from:

tax-deferred income growth
tax-free distributions via policy loans
tax-free withdrawals up to your basis
no contribution restrictions, subject to health underwriting
no income-level restrictions
a death benefit for beneficiaries

Understanding the Infinite Banking Concept
So what is Infinite Banking? It's a financial philosophy of being your own bank and its predicated on the tax and investment advantages of a whole life policy. You will fund your account with your premium payments. The insurance company will, in turn, invest a portion of your premiums in very safe financial instruments such as bonds. These will be be diversified by industry, maturity and geography for added investment security.

Gains from these investments will be factored with overall performance of the insurance company. The costs of overhead, mortality (death benefit payouts) and other expenses are subtracted from the gains. What's left is the excess that can be given back to the policyholders as dividends. Typically, these policies have a guaranteed tax-free growth rate of around 4%.

Through your premium payments and dividend earnings, the cash value within your policy will begin to grow, and that's where the greatest benefits begin. You get to be your own bank.

When you put money into a traditional financial institution, they will pay you a small amount of interest. When you borrow from that financial institution, they will charge you a greater amount of interest. In the banking industry this is known as the spread, and it's how financial institutions make their money.

A dividend-paying whole life insurance policy allows you to lend money to yourself using the cash values within your policy. You control these funds and dictate the re-payment terms. That means you set the interest rate, the amortization period and other loan terms. As you pay back the loan, you also pay yourself interest, and collect the spread that would otherwise go to your lending institution. There are no penalties for a late or missed payment. And there are no loan fees or other transaction fees.

You can use these personal loans anyway you want. Finance your car, pay yourself back. Finance your roof, pay yourself back. Finance your business, pay yourself back. You're in control, not the IRS.

In addition to the income growth opportunities available, there are numerous other benefits to the Infinite Banking Concept. By borrowing money from a properly structured dividend paying whole life insurance policy you can enjoy tax-deferred growth of money, tax-free distributions via policy loans, and an income-tax free death benefit for your heirs.

Who wouldn't want a place where they can put their money to grow tax-deferred without all the limitations of a self-directed IRA. By using a dividend-paying whole life policy as an Infinite Banking System, you have full liquidity, use and control of your money. Instead of discouraging self-dealing, the Infinite Banking System encourages you to use your funds whenever and wherever you can in your own life.

Friday, January 25, 2013

Home Loan Mortgage Rate Quote: Online Convenience

You can find ANYTHING on the Internet! Never is this as true as when it comes to finding home loan mortgage rate quotes. In fact, along with pornography, finance and banking has probably been the biggest internet success of all. There is nothing you can do, nothing you can find in a physical bank branch that you can't get from a bank over the Internet. This includes a home loan mortgage rate quote.

Convenience at Your Fingertips
Of course, buying a house is the biggest purchase that 90 percent of the world's population will ever make in their lives. So, it's probably advisable not to go through the entire process yourself with only a mouse for protection or counsel. It is a valuable, and often indispensable, part of a good decision-making process that you have communication with an actual human being with some expertise at some point. However, when it comes to the preliminary parts of the exercise, such as acquiring a home loan mortgage rate quote, Internet-based applications embedded into bank websites are convenient and useful. You simply enter the relevant data into various drop-down boxes and menus, and select the number of years over which you wish to have your mortgage. You will be given a number of options as to whether you would like to choose a fixed or floating rate over a time frame of anywhere from 2 to 5 years. The PHP software scripts - similar to a spreadsheet formula - automatically calculate your home loan mortgage rate quote.

Nothing's Definite Until You See It on Paper
Bear in mind, however, that an automatically generated home loan mortgage rate quote is by no means the "final word." If anything, it is more of a rough guideline or an estimate to get you started on thinking about your range of affordability. A home loan mortgage rate quote arrived at in this way is also not a contract and is not binding upon the bank or finance company in any way, shape, or form. So, you can forget about waving in your mortgage manager's face and screaming: "LOOK - IT SAYS SO RIGHT HERE!".

The real home loan mortgage rate quote is arrived upon when you sit down with the mortgage manager, broker, or consultant; and they take into account any number of a range of factors that my influence your case in one direction or another. The bank will take your financial situation and any other relevant factors into account, look at the numbers, and, in some cases, even things like job stability, work history, credit history, whether you have children or not, current assets, and partner assets. From that information, they will arrive at a picture of the borrower on which they will decide whether or not he is a good investment. The real home loan mortgage rate quote is then written in ink with a person's signature underneath, an old sign that a person is still held to be as good as their word.

Qualifying for FHA HAMP Loan Modification

Housing and Urban Development Secretary Shaun Donovan published today the FHA has made modifications to its home loan modification procedure so that it will further imitate President Obama's Home Affordable Modification Program (HAMP) under Making Home Affordable. It is anticipated that the new FHA loan workoutguidelines will be in place by August 15th.

How does this help you? Well, if you now own a home mortgage secured by the Federal Housing Administration (FHA), you should be able to extensively moderate your monthly home loan payments, interest rate, and possibly realize a partial principal forbearance or balance reduction (a decrease in the amount you owe on your mortgage), provided you meet the new guidelines.

Homeowners that have effectively gotten a mortgage modification through Obama's Making Home Affordable Program have had marvelous results, some easing their mortgage rates to as low as 2% on 30 and 40 year fixed loans, saving a good deal of moneyeach month on their mortgage.

Now is a very exhilarating period for borrowers in FHA loans, as they now also can achieve similar benefits. Qualifying for the FHA -HAMP can be a little tricky, and there's a good deal of junk out there on how to succeed. We're going to clear up the tittle-tattle, and help you understandhow to get qualified, ModificationZoom style.

Firstly we must cross the "eligibility" bridge - Your mortgage company needs to be FHA-Approved to modify under FHA-HAMP. Most major lien holding mortgage banks that offer FHA home loan programs are approved. The superlative way to remedy whether or not your bank can modify your home mortgage under FHA-HAMP is to call and query if they partake in the program! If your "mortgagee" (lender) is eligible, your next step is to make sure that you are eligible!
Your present home mortgage must be an existing FHA-held single family mortgage, and the present loan must be behind, meaning that you are 1 payment past due more than 30 days, but less than 12 full mortgage loan payments past due.

Your abode must be a FHA insured single family home (1-4 units), mortgages previously amended under HAMP are ineligible, you must have had the loan for 12 months, and here's a great piece of information: There is no net present value (NPV) check for eligibility!

(The NPV examination is ulitilized to decide whether it makes sense for your bank to adapt your mortgage. Under this program, it doesn't matter if it financially makes sense for your servicing bank to adjust your mortgage or not! If you qualify, your mortgage lender should change your mortgage, apart from the total amount of equity you have in the home!)

There is no upper limit on mortgage loan amount for mortgages eligible for home loan modification, and it have a bearing what your credit looks like! There is no appraisal required, and your FHA - HAMP modified mortgage lien has to be at a significantly lower interest rate and payment than what you already possess!

For supporting documentation, you will need to submit the following:
1) Hardship Letter
2) Income Documentation - Paystubs & W-2s, or Profit & Loss Statements & Full Tax Returns if you are Self-Employed.
3) 3 Months Bank Statements
4) Financial Worksheet of Income & Expenses
5) Hardship Affidavit

So what is going to take place when you get a home loan modification through FHA - HAMP? First, you will be placed in a temporary loan modification payment plan, and after you make the first 3 payments under your new plan, FHA-HAMP can be fixed for the life of the loan.

Your home mortgage will be changed to a 30 year fixed rate to a (proposed) front end DTI of 31%. You must confirm that your back end (proposed) DTI is below 55%.

What exactly does this signify? Your "front end" DTI can be determined by dividing your mortgage loan expense by your gross income. Your "back end" DTI can be determined by the sum of all of the monthly payments that show up on your credit report by your gross income - e.g. - credit cards, auto loans, and additional home mortgage payments.

Conversely, to calculate what your new payment will be, simply multiply your gross income by 31 percent!

Alright, I understand that was a lot of information, so we're going to summarize with a "To-Do List":

1) Make sure that you have an FHA loan, and that your Mortgagee (lien holder) is FHA - Approved.
2) Your mortgage must be at least 1 payment late, but not more than 12 payments late.
3) Make sure your home is 1-4 units, that it is your primary and only residence, that you've had the loan for 1 year, and you haven't previously modified under HAMP.
4) Write out the hardship affidavit, write a hardship letter, document your income, completed a financial worksheet, include bank statements and submit the package to your lien holder!
5) Get your loan modified!

The remainder of the information out there on FHA - HAMP is pertinent, but not necessarily stuff that has to be absorbed to get a loan modification through the government initiative. For example; your lien holding bank will govern how to get to the goal 31% payment by giving you a 30 yr or 40 yr fixed term and the calculated fixed rate, and may have to lower your principal to help you qualify for the payment you need to be financially stable. For more information, contact ModificationZoom toll free at (866) 760-9099.

ModificationZoom is not a Government Agency, but we do understand the ins and outs and loopholes of FHA - HAMP, and can help you.

Alright, now you're ready to rock and roll with the FHA Home Affordable Modification Program (HAMP).

Thursday, January 24, 2013

7 Car Insurance Alberta Tips For a First Time Driver

If you have a new car or are a first time driver, then we have a couple of car insurance Alberta tips for you. Owning your first car is definitely an exciting experience, but paying for it is certainly not. However, since you have to, this doesn't mean that you must pay a high premium. We will show you a few ways that you can reduce your monthly fees and enjoy your new ride for less.

One of the obvious tips is to simply shop around. All because your dad or friends get their insurance with a specific company, that means that you should too. There are many online websites which actually compare rates and packages of different companies so you can use this as a guideline to find a good company to get insured with.

If you purchase or apply for your premium online, you can get up to a 10% discount. Most companies offer this discount so you can save money by just using the internet! Another good way is to go through the Pass Plus exam after you've gotten your driving license. Many companies offer discounts for drivers who do Pass Plus, but not all do.

Another good idea is to buy a cheap first car that has a small engine. This can help you to get a lot of savings if you are a young driver as you will fall into a low insurance group. This can enable you to build up even more points once you're cautious on the road and have a good no claims bonus.

Many people are often tempted to modify their vehicles, but if you want to have a low rate, then you should try not to. The more modifications you have, the higher your rates will be. If you really want to do a few modifications, you should discuss this with an agent so that they can advise you on how much extra each one will cost. There are even some that don't change your rates, so make sure to find out if this is important to you.

Do you know that where you put your car to park can affect your rates? It is a fact that if you park in a closed garage or in a driveway that you will reduce it. However, if you have to park on the street, this will adversely increase how much you have to pay.

Another method of reducing how much you pay is to simply drive less. When you apply, the agent will ask you how many miles do you expect to drive per year. You should try to minimize how much you actually use your vehicle so that you have a low mileage. This can help you to get a reduced rate but make sure to estimate accurately and not lie.

Those were just a few guidelines for a new driver so that they can have much lower car insurance Alberta rates. Even though young drivers have to pay more than older and more experienced drivers, these tips can definitely help them to manage the extra expense.

Wednesday, January 23, 2013

ACS Student Loans: Fast And Convenient

In your search for the most appropriate student loans to meet your requirements, you might have heard ACS student loans mentioned. But you may still be wondering what ACS is.

So, what is an ACS student loan?

It is a loan that is serviced by Affiliated Computer Services, Inc., a company that is well known for business process outsourcing. The company's strong reputation for servicing loans efficiently through the use of technology, has won them contracts with many colleges and universities. In fact, they are the Department of Education's primary outsourcing contractor. With an ACS student loan, students are able to manage their account online. They can make payments, see their account status, update personal details, and receive email notification of payments that have been processed.

Other helpful tools that ACS provides on their website include a repayment calculator, IRS guidelines about student loans, and a glossary of important terms.

With ACS student loans, students also get the convenience of being able to manage all of their loans in one place. ACS also acts as an outsourcer for colleges and universities that have campus based programs which lend money to their students. This frees up the college from keeping track of all the financial details, allowing them to better focus on education. ACS also coordinates with other financial institutions in an effort to match up each student with whichever lender that is best suited to their needs.

Understanding ACS Student Loans

ACS student loans cover a fairly broad range of different financial aid programs. One of the major ACS student loan groups is known as the Campus Based Student Loan Program (CBSL). CBSL includes Federal Perkins Loans, Nursing Student Loans (NSL), and Institutional Loan Programs. Another major group of student loans that ACS handles is the Federal Family Education Loan Program (FFEL), which includes the Stafford Loans, PLUS loans to parents of students, and loan consolidation services . In addition, ACS handles a number of educational loans funded by several private companies.

If this is your first time applying for a student loan, don't be intimidated by the process. All the guidelines and applications for different financial aid programs are available online. The ACS website provides a clear example of how to fill out a Free Application for Federal Student Aid (FAFSA) form, and helps you to interpret the results in terms of your eligibility for financial aid. In addition, the ACS website has applications for both Stafford loans and PLUS loans for parents, which can be completed and submitted online.

ACS Student Loan Consolidation

If you previously took out federal student loans, you might want to learn about the benefits of ACS student loan consolidation. The ACS website provides information and application forms, and an ACS loan consolidation could mean you only have to write one check each month. It also might help you lock in a lower interest rate to reduce your total monthly payment amount.

So, Why ACS Student Loans?

Maybe the convenience of managing all of your student loans online appeals to you, plus you only have to deal with one entity for your loan servicing, from application to repayment to consolidation. ACS works with a number of universities across the United States. Even if your college or university is not offering ACS student loans, their website is a valuable resource of helpful tools and information, and well worth visiting.

Monday, January 21, 2013

Why Bank Repo Boats At Local Boat Auctions Are Going Crazy

Finding an auction of repo boats and thereby getting to buy one easily and at a cheap rate is what matters. Purchasing bank repo boats in auctions is like getting hold of a treasure. It is almost every day that people like you keep looking out for repo boats available through auctions, but only the lucky ones get to know of these kinds of auctions. Profiting from these boats is like a real success. The story of a repo boat is rather disheartening on one hand while it is equally benefiting on the other. It is as if one man's bad story proves good for the other.

The story of repo boats

The entire story of these boats is a very simple story of a person like you. When someone purchases a boat-taking loan from a bank and in the middle of the repayment of loan, he due to certain circumstance becomes unable to repay back the loan. The bank in such a situation evaluates the present price of the boat and orders the person to return that much amount. On failing to pay back that amount, he loses the boat and finally such boats are put up for auction. People go crazy to buy such boats in a very subsidized rate all over the year.

Benefits of buying from boat auctions

Bank repo boats have not become a craze, just like that. There are many reasons for which this urge of buying these boats has spread. One primary reason is that one who buys the boats are always a making a profit as because they are buying at a lower rate compared to the original rate. On the other hand bank repo boats is the bank's loss as the faster they try selling out the more lower auction rates they get agreed to. This becomes the buyers profit on the other hand. People within the present economic conditions tend to surrender their boats much easily than anything else.

How to know about bank repo boats?

It is not so easy to find out about the bank repo boats auctions so easily. The bank prints out ads in the local newspaper and trade magazines that are not that glamorous. Only those people aware of these kinds of auctions will easily spot these ads. People can also come to know of these auctions from the reliable auction sites or auction brokers. Coming across the right information at the right time is also a matter of luck. The bank tries to keep its margin while reselling but if the prices do not reach that high, they are bound to sell of at a lower price only.

Coming across the right kind of boat auction and thereby buying a boat in a subsidiary rate is really a matter of luck. Then when you have actually come across one, the next few steps are rather easy and smooth. The procedures of auction are very easy and full proof. Your money always goes into the right place. However, while indulging into these kind of boat auctions keep your options broader by trying to keep a look out for other normal auctions as well outside the bank repo boats auctions.

Sunday, January 20, 2013

Is Lending Club A Ponzi Scheme?

Lending Club is a peer-to-peer financial service enabling individuals to bypass conventional lenders to get loans. Lending Club was incorporated in 2007 and at first was a Facebook app. In 2008 Lending Club had to file with the SEC because the loans made could be considered risky investments. For a borrower, Lending Club has almost no risk. You fill out an application for a loan, get approved, and Lending Club investors invest funds in your loan. Investors of Lending Club loans do have risk when borrowing out their money. The two potential potential risks are:

The debtor defaulting
Lending Club files for bankruptcy

At present Lending Club filing for chapter 11 is not likely. Lending Club currently is well financed by investment capital. Lending Club has obtained several rounds of funding. They initially obtained a million in angel investment. The company then got a million A round in August of 2007 from Norwest Venture Partners and Canaan Partners. They then got million Series B round, and as of April 2010 .5 Million in Series C backing. As of today they have a total of million in investments.

Lending Club finished SEC registration in 2008. In complying with the SEC, Lending Club must file quarterly reports which can be accessed online. At the time of the writing, September 30th, 2010 is the latest document. They have million of cash available. A fact is many loans are funded by Lending Club themselves. So some of their venture capital is tied up within the Lending Club notes . In theory if Lending Club needs cash, they could sell their own loans on the secondary market via FolioFN. Also each note Lending Club owns is generating income. According to the most current 10-Q statement, they have million in Lending Club notes out of a total of 5 million. This means if they did file for bankruptcy the financiers would most definitely want to keep loans going to ensure they do not loose their entire investment.
If you're nervous about Lending Club going chapter 11, Lending Club addresses this situation on their web site. According to Lending Club's FAQ, if whatever reason they go out of business or cannot service their notes they have another business that is a successor. Lending Club has an contract with Portfolio Financial Servicing Corporation ( to take over personal loan maintenance.

Its not likely Lending Club is a ponzi scheme. The sheer volume of labor, paper trails as well as the amount of individuals involved makes this highly not likely. Based upon their SEC documents they are fiscally stable and have a contingency plan should their company operations be no longer viable. The greater threat as a Lending Club investor is the choice of the personal loans you invest into.

Saturday, January 19, 2013

Unsecured Loans With Bad Credit: How Approval With No Collateral Is Possible

For loan applicants with poor credit histories, there is an understandable expectation that approval is very hard to get. Their track record already suggests they are a high-risk borrower the sort that lenders like to avoid. But the truth is that it is still possible to get unsecured loans with bad credit.

There is no trick to it, other than meeting the criteria and proving there is an ability to make the required repayments. But there is a certain skill to constructing a loan application that is hard to reject. Getting loan approval with no collateral is possible, even large loans too.

Ticking all the boxes is essential, which is why it is important to recognize what exactly the lenders are looking for. That way, your application will have few holes, and be better positioned to identify the right lender to apply to for an unsecured loan.

Understanding Your Position

So how can an applicant better prepare their application for an unsecured loan with bad credit? The first step is to take a careful look at oneself, and see the financial position for what it is. Knowing your credit score is important, but how it was attained is crucial since it highlights the weaknesses in any application.

The second step is to assess what loan is actually affordable. There is no point in applying for a sum that is simply too much, with repayments that are too high to be able to meet comfortably each month. Applying for a sum that is less than the maximum possible helps in securing approval with no collateral.

Finally, try as much as possible to improve the credit score before submitting your application. Unsecured loan applications are helped through lower interest rates, and an apparent dedication of debt management. Clearing some debts send lenders all the right signals.

The Significance of Collateral

But what is the significance of collateral, especially if it is possible to get an unsecured loan with bad credit anyway? Collateral provides a large amount of leverage, mainly because the lender is given something from which to secure compensation in the event the loan is defaulted upon.

There are some negatives to providing this type of security, not least the fact that the borrower stands to lose something of worth if they default. There is also the fact that an item worth the required sum is not always easy to find a ,000 loan needs something worth ,000, but rarely will an applicant have something of that value lying around.

Securing approval with no collateral is a more cost-effective option, since defaulting causes no loss to the borrower other than their credit reputation. That is why, even when collateral is attainable, some people prefer to seek an unsecured loan, and to accept the higher interest.

The Best Lender to Apply To

The chances of getting the green light from a traditional lender for an unsecured loan with bad credit are pretty slim. Even if they are open to the idea of accepting the perceived risk, the interest rates charged would be very high, making the loan too expensive.

The best lenders to apply to for these loans are online lenders, who make it their business to provide loan packages to bad credit borrowers. And because they are experts in bad credit lending, the likelihood of getting approval with no collateral is very good.

The terms are also good, even though the interest rates high. The term of the loan is much longer to ensure the lowest possible monthly repayment sum. This makes the unsecured loan more affordable, thus lessening the chances of loan default. The amount of interest paid over the lifetime of the loan is very high, but the compromise is worth it.

Friday, January 18, 2013

Why Auto Loans With No Credit Checks Is The Better Finance Option

The biggest hurdle for those of us seeking a loan is a poor credit history. A negative track record in repaying loans might not be enough to completely rule out approval, but it certainly does not help. So, the availability of auto loans with no credit checks can only be welcomed with open arms.

Just like any other loan application, the influence of a bad credit score is at the very least enough to push the overall cost up, with higher interest rates charged to compensate for the perceived degree of risk. But with that element of an application simply ignored, the promise of fast loan approval exists - though the higher interest rate still applies.

The thing to remember about auto loans is that the terms are better than unsecured personal loans. After all, the purchase itself (the car) is available as collateral, and whether the financing is supplied by a traditional lender or an online lender, there are advantages to be enjoyed.

Why No Credit Checks are Good

Though it might not seem to be the case, everyone benefits from an auto loan with no credit check. From the point of view of the borrower, the stress created by a bad credit history is avoided, and approval is given on the basis of income and affordability only.

From the point of view of the lender, they get to charge a higher rate of interest than normal. This is obviously good news for them, with higher profits should the borrower stay true to the repayment schedule. And with fast loan approval offered, the number of applicants is likely to be high.

This is not to ignore the risks involved in an auto loan under these terms. The lender could be taking on a hopeless case, while the borrower is set to spend more on interest than they should.

Types of Loans

There is no secret to the fact that there are two main types of loans; secured and unsecured. Nor is it a secret that secured loans are easier to get approval on. When looking to buy a car, the secured option is an auto loan with no credit check required, because the collateral used is the compensation from which the lender can regain their money.

But that is not to say that a fast loan approval is certain. There is always the need to prove that repayments can be afforded, but qualifying as a viable loan applicant is notable progress. And while approval may seem more likely, the use of security also means that a lower rate of interest will be charged too.

The unsecured loan, on the other hand, is never guaranteed to be approved. Even when an auto loan provides a car as security, the car itself depreciates in value very quickly. Also, the interest rate to be charged is inevitably going to be higher.

Where to Find the Best Loan

Another fact that is no secret is the fact that the best loan deals are to be found on the Internet. Even if an auto loan with no credit check is not available from every lender, the selection is extensive online. And, through the use of comparison websites, the very best terms can be quickly and easily identified.

Of course, it is always worthwhile visiting a traditional lender to find out what is on offer, but it hard to ignore the likely fast loan approval that all online lenders offer as standard. In fact, approval can often be secured in just a few hours. With lower interest rates, the whole auto loan deal seems excellent, but it is important to check out who the lender is with the BBB website too.

Thursday, January 17, 2013

Ways To Know About Bad Credit Car Loan Milwaukee

With the world the way it is today, it can be difficult to get approved for any money whether it is for a house or for a new vehicle. Creditors are trying to be very strict because they do not know for sure who will pay them back. There are ways to get a bad credit car loan Milwaukee.

Borrowing money is one area that has been difficult for those with bad FICO scores. Businesses and companies really depend on those scores when deciding to lend money out to consumers. These requirements have become even tighter because of the recent economic problems and foreclosures of homes.

Something that people should think about when applying for a loan is building their credit back up. This will help them get loans with better interest rates, and they can get more types of loans. One thing that people should try first in building their scores back up is paying their bills on time. This will show up on their report, and creditors will feel more comfortable about loaning money to those requesting it.

Besides the scores and ratings that one sees on their report, there are other numbers a consumer should notice when it comes to their finances. One is the debt-to-income ratio. This is important because it can tell how well a person is handling their finances overall. It shows how much one has in credit debt compared to their overall income. For example, someone might make 45,000 dollars each year. One needs to figure out how much this is in terms of monthly wages. The monthly expenses compared to the monthly wages should be around 30 percent or less. This is considered an acceptable target number.

Fortunately, businesses know that these consumers need some sort of break. They know that not everyone with a poor rating or score is a bad consumer. They know most want to pay their debts on time. They are trying to make efforts to help them out. At the same time, this helps their own businesses.

In order to help them out, some dealerships have begun to extend out loans to some of these consumers. Many have bad scores, but they are just charging a higher interest rate. This is great for those who really need a car, and they are very trustworthy people who will pay on time.

Now, consumers can breathe a little easier because they do not have to worry about how they will get from point A to point B. It takes time to build up a good history. Some people cannot wait for a car. Consumers can drive to where they need to go today. They can then work on improving their finances.

Some are looking for a way to get that new car so that they can get to work or school. It might be difficult for some if they are stuck in debt, and creditors are not eager to lend them money. There is the option of bad credit car loan Milwaukee for those who do not have a perfect financial history. This is not a bad thing because the main catch with these loans is that the interest is high. This is a great opportunity if this is their only option. However, one should take steps to improve their finances overall.

Tuesday, January 15, 2013

Top Reasons People Take Out Personal Loans

Life can throw little curve balls at you all the time and sometimes those curve balls can get expensive. When people get hit with bills they cannot pay, or they start to make future plans that they need to finance, many will turn to taking out a personal loan. Check and see if any of these top reasons that people take out a small loan apply to you and your situation.

Home Renovation - One of the more expensive rooms in your home to renovate is the kitchen and when it comes time to put in a new sink or a new kitchen floor then a small loan is a great way to finance it. You can also use a loan to put some new appliances in as well.

New Computer - If you find yourself with a need to be connected to the rest of the world then you are in need of a new computer. You could sign up for a credit account with the computer manufacturer but the chances are pretty good that the interest rate on that account will be fairly high. The solution could be a small loan, with a low interest rate, as a way to finance your new computer.

Big Screen - People who love movies tend to invest in some of the better movie watching equipment and a prime investment for any movie lover is a home entertainment theatre system. For a really impressive plasma screen, speaker system and proper seating your finances might need a little lift, all for the love of movies.

Landscape - Many people use their garden as their escape from the rest of the world and if you really want to take your garden to the next level then you need some serious landscaping. You can finance your garden landscaping and, when the garden is done, you will have your own oasis from the rest of the world. Not only this, the resale value of your home will be boosted by the improved garden.

Backyard Pool - When the weather is hot every Aussie wishes they had a swimming pool installed in time to fend off the heat of the summer sun. Having a swimming pool installed is a great gift for your family!

Fun on the Water - Some people look to the open waters as their source of relaxation and to do that you need a boat. Buying a boat to get away from it all is something that doesn't come cheap. After the boat, you'll need to moor it, have a boat license and pay for fuel and upkeep.

Wedding Bells - The happiest day of a young couple's life can also be one of the most expensive days. A young couple seeking to get married, enjoy the day and invite the family, then jet off to some exotic island for the honeymoon is enough to make some people postpone their big day until they've saved up enough. A small loan might be a wise idea, to speed up that joyous day!

A Family Holiday - At some point everyone just needs to get away from it all and go on holiday but many people do not take that well needed rest because they feel they do not have the finances, and perhaps they do not have the cash flow right then and there. A low interest rate loan can get you on the beach and away from it all in no time.

Cash Flow - Sometime you can get caught in a situation where you need additional cash flow to fund a hobby you have taken up or maybe invest in a idea that you have been cultivating for a very long time. A personal loan can help you increase your cash flow and bring your ideas to life.

Monday, January 14, 2013

How to Get Easy Used Car Loans Online

Loans are source of financial assistance to the needy people seeking for funds to purchase things they need. Car is one such desire that almost everyone wish to fulfill some day. But the people with poor credit find it tough to have their own car. Nowadays, many online auto loan companies could be seen on the Internet offering various schemes and offers to get quick auto finance to buy a car. It becomes much a lot easier to get a car loan for people with positive credit history as compared to the bad credit car buyers. However in the present scenario, it is not a big issue to get car loans with bad credit. You just need to keep few things in mind and you'll get assured loan from a reliable lender.

Point to be Kept in Mind before Purchasing an Auto Loan

a)Make an online search and select at least four lenders. Check about their terms and conditions individually as well as collectively and then decide which ones suit the best as per your requirements and budget.

b)Make sure to check about the authenticity of the online auto loan company you are opting for car loan.

c)Get a pre approved car loan before choosing the final lender. In today's competitive auto finance market, many lenders would be all set to give you loan on much lower interest and many more facilities than the one whose approval you are already carrying with you. This is a proven strategy to get the best of the best.

d)Do reveal all essential details regarding your bad credit score, which are relevant from the loan point of view. Any curtain on any essential fact required to be disclosed would put you in trouble and your loan will be disapproved.

This is for all auto loan seekers out there -- may it be new car finance or used car loans online. You'll find in numerous choices to get easy car finance with poor credit now. Just make a search on the Web and select one lender for your car. This is the best ever chance you would get to improve your credit history. Once you get a loan and pay its dues on time; you credit report will start moving towards positive side. So don't lose this golden opportunity. Let the world know that you are not a bankrupt.

Sunday, January 13, 2013

Fha 203k Closing Cost

FHA 203k Closing Cost for Renovation, what Homebuyers and Homeowners should know.

Like all other real estate loans, the FHA 203K has the same typical closing costs such as Title, Lender, Attorney, Escrow and Recording Fees to name a few, but unlike the others there are also additional calculations involved that you'll need to consider when financing a 203K Loan.

The first thing you'll need to do when figuring out 203K closing costs is to list and estimate the cost of all the repairs & rehab that you are planning for the property. This is essential because the 203k closing costs will be calculated based on this amount.

The following is a list and explanation of costs involved when financing a 203K Loan

Standard Fees:

FHA 203k contingency reserve
The first step is figuring out the FHA 203k contingency reserve on the repair & rehab costsThe contingency reserve are for overruns and un-expected expenses that can arise during the project. Now, if you ever had to hang up a picture on a wall and had to make two holes to place one nail then you'll understand why this reserve is needed. The amount for this reserve is 10% based off of the repair & rehab amount but can go as high as 20% depending on the project and property. The amount of the reserve is actually not a true cost because if you were to stay on budget the contingency reserve left over can be used to pay down the original loan or used for any extra work if approved.

FHA 203k Inspections & title updates
Inspections and title updates are completed to make sure the work is done and no additional liens are put on the property. Inspections are done by HUD Cost Consultants or Appraisers depending on whether it's a Standard (Full) FHA 203k or a Streamline 203k loan. Costs can vary on both of these fees. An average estimated amount to use would be 0 to 0 for Inspections and for Title Updates.

Mortgage payments financed
If you have an FHA 203k loan that is the Standard version (full) rather than a Streamline then you can finance up to 6 months of payments. Now as appealing as living with dust and loud noises while cooking on a bunsen burner might be to some, it's good to know the rest of you have the choice to have all the repairs and rehab done before moving in. Of course there are economic factors that play a role as well. Adding more money to your new loan may sound financially un-feasible but the flip side would be the cost of your comfort or the extra work time needed when a property isn't vacant which in return would have a cost.

Architectural and Engineering fees
If you're doing an FHA 203k Streamline these fees would most likely not apply. But for projects that do need an architect or an engineer this cost can be financed into the 203k loan. Keep in mind that this fee depends on the scope of the Architect/Engineer services and is associated with the type of project your doing rather than with the 203k loan.

Consultant Fees
Standard (Full) 203k loans need an FHA cost consultant and are optional on 203k Streamlines. Their role in short is to review the work estimates so that they can do the work write ups, inspect the completed work and fill out the paperwork needed to get the checks released. Their fees range from 0 to 00 and higher when the repair or rehab amounts are over 0k and when there is more than one unit. My advice is to talk to your consultant so you know what to expect from them and what the cost will be.

The repairs or rehab for your project may require permits from local city or county agencies. When permits are required the cost can be added into your 203k loan amount as well. Your contractor should be aware of any permits needed and should let you know when giving you an estimate.

Supplemental origination fees for both standard 203k and streamline
On all FHA loans an origination fee is typical. An origination fee is a percentage of the loan amount. For instance a 1% origination on a loan amount of 0k would be ,000. The difference with an FHA 203k loan is that a supplemental origination fee is also added. That amount is 1.5% of the repair or rehab amount or 0.00 whichever is more. Consider this cost as an administration fee for setting up the escrow account that will handle and disburse the checks as needed.

Discount points on repair cost and fees
Interest rates at times will come at a price on what is called discount points. (Discount points like the origination fee is a percentage of the loan amount.) Same example 1% discount on a loan amount of 0k would be ,000. So, sometimes to get a certain interest rate discount points are charged. Those same discount points would also apply to the repair and rehab amount.

Well there it isthe costs associated with the FHA 203k renovation loan. Now remember, these costs only apply to the repair and rehab amount and as mentioned earlier there would still be the standard closing costs such as Title, Lender, Attorney, Escrow and Recording Fees but these costs apply to all Real Estate Loans.

Friday, January 11, 2013

Business Plan, For Mortgage Professionals, Targeting First Time Home Buyers

The housing market, combined with the recent tax incentive, has created a new target audience for Realtors and Loan Officers. The need for a sales and marketing plan to address education, building relationships, and communication will generate increased business for the Loan Officer and Realtor to provide assistance to first time home buyer.

The housing downturn has created significant demand for homeownership, especially among first-time home buyers (FTHB), according to a survey on That is great news for the real estate market, but there are some significant challenges that Realtors and Mortgage Professionals will face.

First challenge: Looming Deadline with NO PLAN

November 30th, 2009 is the date the tax credit goes away. That's 5 months from the day this article was written, which seems like a long time but the reality is that it will be here before we know it. Those who plan on taking advantage of this opportunity need to have a well thought out, fool-proof plan to execute. The sad reality is that people have been/were so busy with refinance business that they didn't have time to build a plan. Others are starving for direction and want a plan but don't have the "know-how" to build one. A strategic sales and marketing plan includes tactics that keep your plan within the necessary timeline.

Second challenge: Weak Relationships

FTHBs are tricky and require a strong relationship and good communication between the Realtor and Loan Officer. As a result of the recent low interest rate environment or "mini refi-boom, mortgage companies focused much of their efforts and time on capturing the refinance opportunities, not building relationships with Realtors. The result: many Realtors were left unattended. Relationship marketing tactics are needed to generate a successful partnership to meet this challenge.

Third challenge: Weak Value Propositions

Everyone knows that Loan Officers need to partner with Realtors but the question is , "why would they partner with you?" Good service and low rates are overused clichs and don't differentiate. Relationships are great, but at the end of the day the relationship needs to lead to "value creation" for both parties for it to be sustainable. A sales marketing plan will outline the strategy needed to create value for the Loan Officer and Realtor.

Fourth challenge: Education Gap

The Obama administration is hoping that a recently enacted tax credit can generate housing demand and help mop up the existing unsold inventory. But according to a survey by Move, Inc.--which operates half (47%) of home buyers don't even know the tax credit exists! A marketing communication plan is needed to target the first time home buyer educating them about this tax incentive.

Fifth challenge: Fear in the Marketplace

-52% of Americans are concerned that they or someone they know will face foreclosure in the next six to 12 months.
-18.9% (one out of five) of homeowners plan to take advantage of the administration's new program to help prevent foreclosures.
-21% of all homeowners with a mortgage contacted a lender to restructure their loan in the last 12 months.
-Half (10.6%) of those homeowners that contacted their lender experienced success while 5% still await an answer.
-27.1% of adults believe that they or someone they know may default on their mortgage because of unemployment or because they owe more on their home than it's worth.

I won't even begin to mention the media's contribution to this fear. The reality is that people are scared and need guidance. The question is , "who will they trust?" They will trust those whom they have a strong relationship with and/or those who have unshakeable credibility. To meet this challenge create a marketing plan that brands you as experienced in your field and a knowledgeable professional that can be trusted.

The good news in all of this is that there is a ton of opportunity out there. Take a look at the statistics of when Americans are planning on buying:
-23% of all adults plan to purchase a home in the next five years
-5.8% within next 12 months,
-12.8% within the next two years

Here is the opportunity -

First-time Home Buyers make up over half (53.5%) of the market, and the government is offering them an ,000 tax credit to purchase a house. But here's the kicker: 47.6% of Americans don't know about the tax credit! That's almost half the American population! What this means to you is that a lot of people want to buy a home in the next 12 months and most of them are FTHBs who aren't even aware of a huge incentive (,000 tax credit).

Okay, so now you see the opportunity, and the question that should be going through your mind is, "how do I maximize this opportunity given the challenges outlined above?" Great question!

This is a great opportunity and the Million Dollar Challenge was created to assist Mortgage Professionals and Realtors to take advantage of it. The Million Dollar Challenge is a call to action and a business plan example to help First Time Home Buyers receive ,000,000 in tax credits.