There are significant difficulties today in financing the purchase of a new home. This is mainly down to the poor state of the economy, but it is still possible to get an affordable home mortgage loans.
The Federal Housing Administration (FHA) makes this possible, providing support to borrowers by ensuring interest rates are lower, down payments are lower and making approval more likely. In fact, getting an FHA loan approval is not difficult if all of the right boxes are ticked.
However, even with an FHA mortgage loan, it is possible to improve matters to such an extent that it becomes even more affordable. Even with the required down payments less than 3%, and 100 % financing available in certain situations, the terms can be improved.
Improving Your Credit Score
There is no escaping the fact that a home mortgage loan is the biggest debt that anyone will take on. For this reason, spending time improving the bad credit scores in order to improve the overall mortgage package is well worth the effort.
There are a few ways to accomplish this, with the most effective being a consolidation loan. By buying existing debts out, they are marked down as repaid, which improves the credit score immediately. An added bonus is that one loan and one interest rate means that money is saved, and extra cash is made available. So, FHA loan approval is all but guaranteed.
Of course, the first step is to find out what the credit score is. This can be done by contacting one of the three credit agencies (Equifax, Experian and TransUnion). Check that the scores are accurate, and ask for a review if it seems wrong. The score may be improved, this strengthening the application of an FHA mortgage loan.
Changing Jobs is Not Wise
A career move is usually viewed as good, but when preparing to apply for a home mortgage loan the opposite is true. This is because they like to know that the income will be consistent. Changing a job brings with it risks, with new employers setting new expectations.
Showing that a job and income is reliable makes for a strong pitch. This is why applicants who frequently change jobs tend to find it hard to secure large loans, never mind a mortgage of more than a hundred thousand dollars. It would be easier to get FHA loan approval when the applicant has been working for a long period of time by the same employers.
However, that is not to say that, after approval on an FHA mortgage loan is received, the borrower is tied to the same employer. Moving for a better job with better prospects should be done either well in advance or after the application is made.
Control Your Applications
Getting things in order for the home mortgage loan application can take time. But it is important to maintain financial discipline during it. This is because, when the application is eventually made, the lender does not want to see a list of attempts to secure other forms of financing - for example a credit card application.
There are some allowances of course, especially if a loan within the last 12 months was used to clear debts. But credit cards, holiday loans and auto loans are a different matter. FHA loan approval is made more difficult if they are evident. Basically, the lender wants to see discipline, meaning complete focus on getting an FHA mortgage loan and nothing that is unnecessary.
Source: http://EzineArticles.com/7237627
Thursday, March 29, 2012
Friday, March 16, 2012
Mortgage Loan Modification Programs To Help Borrowers
Mortgage loan modification programs are designed to help individuals repay their lender. These programs were created as an answer to the housing crisis that occurred due to the many subprime loans that were distributed and failed.
The inability to repay on money that was lent will effect the credit score of the individual as well as the company who issued the assistance. When an individual is in a situation where they cannot repay the amount of the loan granted to them they will often look to assistance to make it more affordable. Assistance programs can be helpful with repayment.
The process of modifying a loan is simple. However, there is a lot of paperwork involved so individuals will need to be patient with the process. When a person modifies their existing debt they are actually changing the terms and conditions of the existing agreement. This makes the process much different than a refinancing or debt consolidation, which will yield a separate loan.
The borrower will often have to qualify for this type of assistance before it is granted. The property in question must be in possession of the individual. That is, no one except the owner can qualify for this type of assistance. Additionally, the person wishing to borrow money must demonstrate inability to pay their existing debt. The borrower will give all tax returns to the lender for evaluation. If the borrower does not pay for three consecutive months than the modification can be undertaken.
In 2004 the Home Affordable Modification Program was introduced to the public. This is a federal program that is designed to help the consumer and make home loans more affordable. Individuals will often need to produce a letter of hardship in writing to the government in order to qualify. If the individual is approved than the modification will likely become active in the next month's payment. For very large mortgages there are some lenders that may require a trial period on the modification before it goes into effect.
The Federal Housing Commission, or FHA, also offers programs for those who demonstrate economic need. In order to qualify for this assistance individuals will need to be sure that the federal housing commission is their lender. The aim of this program is to expand the time period of the aid so that individuals have more time to pay it off. Additionally, the interest rate is often reduce, which in turn reduces the monthly payment.
To qualify for the program that the FHA offers the mortgage would have had to be activated before January 1, 2009. Additionally, the payment must be at least 31% of the overall income of the individual, the property must be a primary residence, it must be a first mortgage and the lender will need to be FHA approved. Individuals will also need to demonstrate economic hardship.
Mortgage loan modification programs can be a useful way for individuals to gain assistance with monthly payments. Individuals should be aware that there may be some tax implications for taking out this type of assistance. Individuals should have an understanding of all the consequences before pursuing this option.
Source: http://EzineArticles.com/6481993
The inability to repay on money that was lent will effect the credit score of the individual as well as the company who issued the assistance. When an individual is in a situation where they cannot repay the amount of the loan granted to them they will often look to assistance to make it more affordable. Assistance programs can be helpful with repayment.
The process of modifying a loan is simple. However, there is a lot of paperwork involved so individuals will need to be patient with the process. When a person modifies their existing debt they are actually changing the terms and conditions of the existing agreement. This makes the process much different than a refinancing or debt consolidation, which will yield a separate loan.
The borrower will often have to qualify for this type of assistance before it is granted. The property in question must be in possession of the individual. That is, no one except the owner can qualify for this type of assistance. Additionally, the person wishing to borrow money must demonstrate inability to pay their existing debt. The borrower will give all tax returns to the lender for evaluation. If the borrower does not pay for three consecutive months than the modification can be undertaken.
In 2004 the Home Affordable Modification Program was introduced to the public. This is a federal program that is designed to help the consumer and make home loans more affordable. Individuals will often need to produce a letter of hardship in writing to the government in order to qualify. If the individual is approved than the modification will likely become active in the next month's payment. For very large mortgages there are some lenders that may require a trial period on the modification before it goes into effect.
The Federal Housing Commission, or FHA, also offers programs for those who demonstrate economic need. In order to qualify for this assistance individuals will need to be sure that the federal housing commission is their lender. The aim of this program is to expand the time period of the aid so that individuals have more time to pay it off. Additionally, the interest rate is often reduce, which in turn reduces the monthly payment.
To qualify for the program that the FHA offers the mortgage would have had to be activated before January 1, 2009. Additionally, the payment must be at least 31% of the overall income of the individual, the property must be a primary residence, it must be a first mortgage and the lender will need to be FHA approved. Individuals will also need to demonstrate economic hardship.
Mortgage loan modification programs can be a useful way for individuals to gain assistance with monthly payments. Individuals should be aware that there may be some tax implications for taking out this type of assistance. Individuals should have an understanding of all the consequences before pursuing this option.
Source: http://EzineArticles.com/6481993
Friday, March 2, 2012
Reverse Mortgage Calculator: Essential Tools for Future Borrowers
A reverse mortgage calculator is an online tool used to determine the payout one can expect to receive from this financial product. In addition to payouts, many calculators will also compute a borrower's expected closing costs, interest rate, and mortgage insurance premiums. These tools are typically used to help borrowers determine whether they would be eligible for a loan, as well as how much they would qualify for should they choose to apply.
How to Use a Reverse Mortgage Calculator
To use a reverse mortgage calculator, borrowers will input their age, the estimated value of their home, zip code, and the remaining balance of their mortgage loan if applicable. The calculator will use this information to determine whether the borrower would qualify for a loan based on his or her age and amount of equity.
Borrowers who would qualify for a reverse mortgage will be shown a few different options. In many cases, consumers will be shown how much they would qualify for through a fixed-rate HECM Standard, an adjustable-rate HECM Standard, and an HECM Saver. Consumers will also be shown how much they can expect to receive if they choose to accept their money in a lump sum, line of credit, or receive monthly payments.
Many calculators also calculate payouts based on a combination of payment options. For example, a person may want to receive a portion of their cash as a lump sum and the remaining portion as monthly payments. This is a popular option with borrowers who will be repaying their mortgage loan with a portion of their payout.
Consumers might also be able to calculate their expected interest rate, mortgage insurance premiums, closing costs, and loan origination fee. This is done to help consumers compare their estimated payout with the amount of money they can expect to pay for a loan. While fees can be rolled into this type of loan, they are still important to consider. Any fees rolled into a loan must be repaid, plus interest, once the home is sold.
What to Remember When Using a Reverse Mortgage Calculator
While using a reverse mortgage calculator, consumers must understand that the calculations they receive are estimates. The calculator will not be able to tell a consumer whether he or she would definitely qualify for a loan. These calculators are simply offered to give consumers an idea of what they might be able to qualify for.
Mortgage calculators are great tools for potential borrowers to use prior to applying for a loan. At first, these mortgages may seem overwhelming. There are not only several different loan and payment types, but borrowers are required to pay certain fees, closing costs, and mortgage insurance premiums. Reverse mortgage calculators lay out a consumer's different options, making them much easier to understand.
The goal of using a calculator is to understand how a reverse mortgage might benefit an individual. After using a reverse mortgage calculator, a borrower should come away with a better understanding of these loans, as well as their possible eligibility.
Abby enjoys learning about new and innovative financial products that are designed to make people's lives easier. In her free time, she enjoys spending time with her friends and family. To see how much you can receive, visit this reverse mortgage calculator now!
Source: http://EzineArticles.com/6637553
How to Use a Reverse Mortgage Calculator
To use a reverse mortgage calculator, borrowers will input their age, the estimated value of their home, zip code, and the remaining balance of their mortgage loan if applicable. The calculator will use this information to determine whether the borrower would qualify for a loan based on his or her age and amount of equity.
Borrowers who would qualify for a reverse mortgage will be shown a few different options. In many cases, consumers will be shown how much they would qualify for through a fixed-rate HECM Standard, an adjustable-rate HECM Standard, and an HECM Saver. Consumers will also be shown how much they can expect to receive if they choose to accept their money in a lump sum, line of credit, or receive monthly payments.
Many calculators also calculate payouts based on a combination of payment options. For example, a person may want to receive a portion of their cash as a lump sum and the remaining portion as monthly payments. This is a popular option with borrowers who will be repaying their mortgage loan with a portion of their payout.
Consumers might also be able to calculate their expected interest rate, mortgage insurance premiums, closing costs, and loan origination fee. This is done to help consumers compare their estimated payout with the amount of money they can expect to pay for a loan. While fees can be rolled into this type of loan, they are still important to consider. Any fees rolled into a loan must be repaid, plus interest, once the home is sold.
What to Remember When Using a Reverse Mortgage Calculator
While using a reverse mortgage calculator, consumers must understand that the calculations they receive are estimates. The calculator will not be able to tell a consumer whether he or she would definitely qualify for a loan. These calculators are simply offered to give consumers an idea of what they might be able to qualify for.
Mortgage calculators are great tools for potential borrowers to use prior to applying for a loan. At first, these mortgages may seem overwhelming. There are not only several different loan and payment types, but borrowers are required to pay certain fees, closing costs, and mortgage insurance premiums. Reverse mortgage calculators lay out a consumer's different options, making them much easier to understand.
The goal of using a calculator is to understand how a reverse mortgage might benefit an individual. After using a reverse mortgage calculator, a borrower should come away with a better understanding of these loans, as well as their possible eligibility.
Abby enjoys learning about new and innovative financial products that are designed to make people's lives easier. In her free time, she enjoys spending time with her friends and family. To see how much you can receive, visit this reverse mortgage calculator now!
Source: http://EzineArticles.com/6637553
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