Archive for July, 2007

Tips On 100 Bad Credit Financing Home Loan

Monday, July 30th, 2007

Regardless of the fact that you are a first time home buyer or otherwise, the words 100 bad credit financing home loan can mean the golden difference between actually buying the home of your dreams or just continuing to wish for it. In the world of home buying, there are numerous ways to secure a loan and conduct various real estate transactions, 100 bad credit financing home loan being just one of them. Which strategy is actually good for you and how to obtain an approval on such a loan are the key problems to 100 bad credit financing home loan.

The advantages brought by 100 bad credit financing home loan are that you do not need to deposit any cash for down payment and or to liquidate your stocks and other investments as the borrower will probably like to finance as much as possible for tax reduction purposes. This is the reason why sub-prime lenders are offering financing packages with zero down.

Interest rates are higher on 100 bad credit financing home loans but they make purchasing a house easier. As already said, unlike a conventional loan, in this case there is no private mortgage insurance required. There are actually two types of 100 bad credit financing home loans, each with its own secrets and requirements.

100 bad credit financing home loan, as it sounds, offers 100% financing for purchasing your home. The other option, (80/20 method) finances your property with two loans. Both loans may be carried by your lender but sometimes a 3rd party seller or lender are required to carry out the 20% remaining mortgage.

100 bad credit financing home loan is easier to deal with, even if not all lenders will offer this type of home loan as on the other hand, 80/20 is more common, even if it may require some level of negotiation before approval is granted.

In most cases, each lender has a set of criteria before they will grant a 100 bad credit financing home loan. Most sub-prime lenders require any bankruptcies or foreclosures to be at least 12 month old in order to receive the final loan agreement. Even if this is sometimes hard to manage, you can find a 100 bad credit financing home loan with most conventional or sub-prime lenders. At this time, you will also have to decide what type of mortgage you want as an ARM will be easier to qualify for and will have lower rates. Having this said, a fixed mortgage rate offers the security of a constant interest over the life of your loan.

Typically when dealing with 100 bad credit financing home loan, an ARM would be easier to manage if you are planning to refinance in a couple of years. After you have improved your credit history you can refinance for a conventional loan at low interest rates.

Nowadays, 100 bad credit financing home loan is available for the average, common, borrower. Even if your credit is too poor, it can’t be too perfect. This is why most lenders choose to protect their loans in event of default, requiring borrowers to participate in a 100 bad credit financing home loan program to carry private mortgage insurance. The insurance differs in cost based on the amount of the mortgage loan. 100 bad credit financing home loan must be continued until sufficient equity has accumulated in the home or until you prove that you would continue to make payments in a orderly fashion.

While considering a 100 bad credit financing loan, there are certain simple ways to improve upon credit ratings and you would not be required to spend too much time at it. A good start is to make your current payments on time in order to help your score while also trying to keep your number of credit inquires down as too many inquires can hurt your credit score. In the same time, if you wish to buy a house, it is advised that you do not apply for a credit card, auto loan or any other type of loan that you can come across.

It is important to not let bad credit stop you if you really want to get into buying a home. This is why 100 bad credit financing home loan is a great solution, if probably applied.

There are of course some risks related to 100 bad credit financing home loan. For example, choosing to not put down a payment on a mortgage loan, there would be little or no equity. In this case, if there is a decrease in the housing values in the area, you could land with owning quite larger amount for your home than what its really worth. In the case of 100 bad credit financing home loan, just like any other loan, you should take into account all the risks before making a decision.

Move Into Your New Home With $ 0 Down Mobile Home Loans For Bad Credit

Monday, July 30th, 2007

Zero down home loan for bad credit – good thing and easily available, you can move into your new home with 0 down mobile home loans for bad credit. It can be a bit tough to crack the code of 0 down mobile home loans for bad credit. In fact, it is profitable to the lenders and they are happy to lend money against a home. To find 0 down mobile home loans for bad credit is easy as different finance companies today come up with comparable loan products.

Mobile homes while safe investment for lenders are not so for mobile home buyers. There is chance of value depreciation. You should keep this in mind while you receive your 0 down mobile home loans for bad credit. Many times the beneficiaries of 0 down mobile home loans for bad credit talk to you about the pros and cons they have faced. While a 0 down mobile home loans gives you instant home ownership without paying any money from your pocket, most of the transaction cost will be included in the loan amount and a Private Mortgage Insurance (PMI) is mandatory. PMI comes into play when down payment is less than 20% by the buyer. This PMI is actually a way of the lenders to minimize their risk.

You get 0 down mobile home loans for bad credit only if the lender is sure about your payback capacity, credit score and the collateral (the mobile home you purchase). If you have recent history of bankruptcy or delinquency, you may not get even high interest loans from most of the lending companies. However, lending companies today come out with attractive products like 0 down mobile home loans for bad credit for people with bad credit scores.

You can get away without paying for PMI if you split the loans 80/20. It is really two loans, but bad credit makes it extremely difficult to secure two loans. If you find such an option, it can save you as high as 2% in interest rates.

With different finance companies offering you 0 down mobile home loans for bad credit, you have the power of choice. You may now look for the differences in closing rates, monthly payments and penalties for fine. Without letting every lender check your credit score, get a quote from everyone you can find and do your homework of comparison of all the above three factors.

People looking for 0 down mobile home loans for bad credit generally have lesser options than for persons who can pay 20% or more upfront and have solid credit scores. Sometimes you will be greeted with zero closing cost bad credit loans. In reality you may be paying many times the closing cost in the form of an interest higher by .75% or 1% than you are actually qualified for. This can add up to substantial amount by the time you finish paying off the loan 15, 20 or 30 years later. Finance companies work for themselves and it is your duty to use your calculator to find and compare the total costs of different loan products. If you believe the lender will compare the costs for you, you may be making a big mistake.

When you approach a loan company for 0 down mobile home loans for bad credit, always make sure you clearly understand each clause of the agreement. Don’t agree to sign the agreement if one of the conditions in the agreement is uncomfortable to you. Also look if the agent asks you to cover up or make adjustments on any figures. Don’t make any minor adjustments to the figures that certify your financial status – even if the agent insists to. Look beyond the immediate benefit you may get to the potential benefit of the agent. You may end up paying much higher than you have to or get marked for forging.

Another factor to look for is check whether you get satisfactory answers for the questions you have. If the agents are busy dismissing the question or changing topics, the 0 down mobile home loans for bad credit may not be for you. Your present bad credit state should not in any way translate to you paying huge amounts as loan repayment.

Chances are higher that you find 0 down mobile home loans for bad credit from many different lenders – it is at your interest that you ask the right questions, compare the right products and make the right choice.