Securing Personal loans With Bad Credit: 4 Loan Options Worth considering

When it comes to securing personal loans with bad credit, it may all seem quite impossible. But there are plenty of options available to bad credit borrowers, often regardless of their credit score. It is usually a simple matter of finding them and meeting the criteria.

The Internet has made the task of finding them a lot easier, with comparison sites allowing the best options to be found in a matter of seconds. And with the benefit of online technology, getting fast loan approval has also become a standard feature from online lenders.

But while accessibility has certainly improved, there are still qualifying standards to satisfy and criteria to meet before a personal loan can be approved.

Common Features

Despite the array of options to bad credit borrowers, the loans share the same category and so many of the same features. For a start, getting a personal loan with bad credit involves accepting higher interest rates and lower loan limits.

Fast loan approval is usually only available for small and modest-sized loans. Depending on the lender, the limit may only be just $2, 500, though there are loans of up to $25, 000 available with a 24-hours waiting period.

There are ways to improve your loan terms, such as to find a guarantor, but cosigners must have excellent credit ratings to be accepted on a personal loan application in the first place. So, what are the options available?

1. Secured Personal loans

Getting a secured personal loan with bad credit is no great problem. The fact that some item has been provided as collateral means that the credit score is of no great significance at all. The lender can get compensation should the borrower default, so the risk of loss is much less.

This means that interest rates are lower and fast loan approval is standard. So, when applying online, expect to get approval within a few minutes and the cash deposited into your bank account in about 2 hours.

2. Unsecured Personal loans

Getting an unsecured personal loan is a different matter. Since the lender is accepting the risk completely, and has no compensation from which to salvage losses, the interest rate is a lot higher and the loan sum is lower. It means that the overall cost of the loan is higher.

It is possible to get unsecured no credit check loans, where the credit score is basically ignored. However, this pushes the interest rate up further. It is a matter of how desperately the loan funds are needed. If it is very, then the terms that come with an unsecured personal loan with bad credit can be worth it

3. Non-Guarantor Loans

These loans are very similar to unsecured loans, but there is no interest shown in the credit history of the applicant and fast loan approval is possible so long as your debt-to-income ratio is good enough.

Typically, these personal loans are available at a higher rate of interest, and the loan sum is quite limited. However, getting a term that is a little longer will reduce the monthly cost and help make larger loans (around $10, 000) more affordable.

4. Payday (Cash advance) Loans

This is arguably the most popular option for getting personal loans with bad credit. However, it is also the most expensive, with interest rates as high a 30%, and full repayment from one paycheck after just 30 days.

Loans are no more than $1, 500, but fast loan approval is guaranteed so long as the monthly income is enough.

A detailed Overview Of Student loans Without Cosigner

One of the options that students can take advantage of to pay for their tuition fees are student loans without co-signer. Sadly, there are so many students out there without the relevant information on the best way to apply for these loans. As such, most of the applications for student loans without co-signers end up not being approved which mean more problems in financing their education. Actually, students can apply for both private loans and loans supported by the federal institute.

Steps to follow to qualify for the loans

First of all, when thinking about student loans without co-signer, it is essential that you read and thoroughly comprehend the eligibility form before you fill out the required details. This provides some insights on how to convince the lender of student loans without co-signer to avail the loan to you by showing that you are certainly qualified for the loan. After reading your form, you will be in a position to explain precisely all the requirements as per the forms specifications. This will also ensure that your application form is accompanied by the necessary and required documents. These and many other punctual actions can result in the lender responding appropriately to your application.

Some important things to know

Something very important you need to do in relation to student loans without co-signer is to be truthful when applying for loans without co-signer. Honesty is a virtue that every lender will reward as they easily understand your personal situation. Also ensure that all your credit bills and other debts are settled on time as missed and delayed payments can really frustrate your chances of qualifying for the loans. In fact, if you have a bad credit history and score, then you can as well count your application for loans without co-signer as unsuccessful.

Know your options

When it comes to student loans without co-signer, there are several options that students can consider and apply for them accordingly. To start with, the federal government offers some few programs on loans without co-signer. For instance, there are Pell Grants which are given to students that are in dire need of assistance to pay their tuition fees. Essentially, this form of loan does not require the students to repay back the money and it is one of the best options for loans without co-signer if you can qualify for the grant. Still, the government also offers Stafford Loan under this program but unlike the Pell Grant loan, this one must be repaid back as it is not free money.

Another option of accessing student loans without co-signer is applied via private lenders in the country. For those students who opt for this route, it is essential they have a loan co-signer when entering into an agreement with the private lender. Your chosen private lender then critically examines the credit report you have availed. This will help in evaluating your application and most importantly the lender will then determine the kind of risk that you pose in having the loan awarded to you. For applicants without a credit history, then the lender will require that a family member Co signs the loan agreement before you are awarded the loan.

Essentially, Stafford loan does not need a co-signer all thanks to the process followed when borrowing the money. As such, loans without co-signer actually do not involve examination of your credit score or history. However, the lender will be interested to know the specific degree program that you are enrolled in, the income of your parents and lastly, the school that you will be attending. According to the government, every parent is required to contribute to the education of their children. As such, they will use the income to ascertain the extent in which a given parent will afford to pay for the tuition fee in a year.

After this, the government then decides exactly how much money they are going to give the student. Basically, federal loan covers for books and tuition and sometimes, the student housing cost will also be included in the package as well. However, the student must be residing in the campus for the housing cost to be covered by the loan. Where the student opts to live outside campus, he or she will then be required that they look for other alternative options for meeting the cost of rent. This is only exceptional where their choice of housing is a form of college or university arrangement.

Instructions/steps to follow

First of all, it is essential that you search for info regarding student loans without co-signer and you need to note that you should follow in the category of traditional students. The, the most crucial step in getting student loans without co-signer requires that you fill FASFA or simply, Free Application for Federal Student Aid and the form not only gives you an access to loans without co-signer but you also benefit from grant money. Stafford loans are either unsubsidized or subsidized and this is a function of who will be meeting interesting cost while you study. Sanctioned amount can be extremely low and only available to the seriously needy students only. Then there are also Perkins loans which are designed for students in extreme need of financial aid and in addition to have minimum interest rates, they also have longer loan repayment terms. The non traditional students can still look for other ways available for accessing student loans without co-signer which are still available to them provided they are able to prove that they deserve financial aid.

Summary

When you secure student loans without co-signer, you are basically not going to be awarded a huge sum of money as such largely due to risk factor associated with student loans without co-signer. However, there are many reasons why you must consider applying for student loans without co-signer as they come with additional benefits compared to typical loans that are hard to qualify for. Graduate students have higher chances of benefiting from student loans without co-signer and are highly encouraged to ensure that they apply for them accordingly.

$250 Payday loan – How to get A Quick Cash advance loan

Payday loans, also referred to as cash advance loans are small cash loans, that consumers can use for unexpected cash needs or to manage daily expenses. Whether the economy is booming or sagging, consumers always have a need for quick unsecured personal loans.

Why Do Consumers Use Payday loan?

Unlike traditional loans, payday loans require less scrutiny and documentation. In addition, payday loans are a quick and convenient way to get cash in a pinch. Most applicants are approved for a loan in minutes, even if, they have less than perfect credit. Lenders are able to wire cash to the approved applicant’s account, in 24 hours or less.

Do I Qualify for A payday loan?

Most lenders have four main qualification requirements, in order to approve your payday loan request. If you can “yes” to these four questions, then you will most likely qualify for a small cash advance loan.
1. Are you are a citizen of the United states of america?
2. Have you been consistently employed for the past 3 months or 90 days, with a steady income?
3. Are you 18 years or older?
4. Do you earn at least $1, 000 per month?

How Do i Get A loan Up To $250?

You can get a loan through a neighborhood cash advance store or an online payday loan lender. Both options can get you the cash you need. Online payday lenders offer the extra convenience of a quick loan application process that saves you time and secures your loan, discretely. Once you select a lender, you must complete a loan application. The application process, tends to be straight-forward and takes about one or two minutes, if you use an online bank.

A loan representative will review your loan request and approve it instantly, if you meet the four (4) loan application requirements, listed above. It is important to complete your loan application as thoroughly and truthfully as possible, because it will expedite the approval process.

Once your loan request is approved, cash will be wired to your checking or savings account in minutes. The cash can be withdrawn by visiting your local bank or by automatic teller machine (ATM).

When Do I have to Pay Back My Loan?
Most lenders have a repayment period of two (2) weeks to four (4) weeks from the date that the loan is made. Since payday loans are short term cash advances based on your future paychecks, they are usually due when you receive your next two (2) paychecks. It is important to borrow only as much as you need and can repay back, in a short period of time. A reputable lender will be more flexible and can work with you to establish a suitable repayment schedule, based on your needs.

What If i Live In a State That has Restrictions On Short term Loan?

Although, cash advance loans are very convenient, not all states have cash advance lenders. A quick search can yield results on whether you can get a quick short term loan in your state or not. For example, states such as West Virginia, New York, New Hampshire and cities, including the District of Columbia have restrictions on small cash loans. In some cases, it is illegal to get a loan. If your state does not provide the ability to get a small short term loan, other options include automobile title loans, if you own a vehicle. In some cases, you can get more cash, if you use a title loan but it should be noted that the lender can repossess your car, if you do not repay your loan.

Explaining the advantages of HDB Loans Versus Bank loans (An Abridged Version)

Before 1 January 2003, people buying a HDB (Housing Development Board) flat have to finance it either with a HDB Concessionary Rate Loan or a HDB market rate loan. But since then the HDB market rate loan was replaced by home mortgage from financing institutions, which are gazetted by the Monetary Authority of Singapore.

HDB Concessionary Rate Loan

Compared to a home loan from a financing institution, a HDB loan has more stringent eligibility requirements. The below covers most of them.

Eligibility Criteria:

For HDB flats only (resale or direct purchase from HDB)
At least one buyer must be a Singapore citizen
Must have a gross monthly income not exceeding $10, 000 (or $15, 000 for extended families)
For DBSS flat the income ceiling is $8, 000 (or $10, 000 for extended families)
For applicants under the Single Singapore Citizen (SSC) scheme, the income ceiling is $5, 000
Must not own any private residence (in Singapore or abroad), including HUDC and executive condominium
Must not have sold a private residential property within 30 months and taken a HDB loan before
Must not have previously obtained a HDB loan within 30 months
Must not have taken more than two previous HDB loans
Must not own more any market / hawker stalls or commercial / industrial property (Except if you operate the business yourself, have no other source of income, and only own one market / hawker stall or commercial / industrial property)
From July 2013, HDB loan will not be granted for flats with less than 20 years of lease. In addition, for flats with lease between 20 and 59 years, loan approval and tenure will be subjected to certain conditions.

Given the many restrictions of a HDB loan, why then do Singaporeans still want to take one? We delve further into the pros of this loan in the following sections.

1. Higher CPF (Central Provident Fund) withdrawal limit

For financing by bank loans, the CPF Ordinary Account withdrawal cap is up to 100% of the valuation limit (VL), which is the lower of the purchase price or valuation at the time of purchase. If the loan is still outstanding when this limit is breached, the housing withdrawal limit can be increased to 120% VL provided that half (entire) of the prevailing Minimum Sum is set aside for borrowers below 55 (55 and above). This housing withdrawal limit varies with the purchase date of the flat, for purchases from 2008 onwards it is 120%.

With a HDB concessionary loan, however, you can enjoy a higher withdrawal limit.

For direct purchase from HDB, there is no limit to the saving in the Ordinary Account you can use.

For resale HDB flats, there is no limit to the saving in the Ordinary Account you can use, after you have set aside half of the prevailing Minimum Sum.

But from July 2013 onwards, for flats with leases between 30 and 59 years the use of CPF fund is allowed only if the remaining lease covers the buyer till at least 80. For such flats, the withdrawal limit will be computed based on the below formula:

Withdrawal Limit

= (The remaining lease of flat or property when the youngest owner is 55 years old / The lease of the flat or property at the point of purchase) x VL

For example, at the point of purchase the buyer is 38 years old and the lease is 40 years. When the buyer turns 55, the remaining lease will be 23 years. Hence

Withdrawal Limit = 23/ 40 x VL

Table 1 further illustrates what is VL.

Table 1: VL

Flat A

Purchase price (S$) = 400, 000

Valuation (S$) = 350, 000

VL (S$) = 350, 000

Flat B

Purchase price (S$) = 370, 000

Valuation (S$) = 420, 000

VL (S$) = 370, 000

For flats with under 30 years of lease, use of CPF fund is prohibited. In other words, buyers will to cough up cash for the down-payment, monthly repayment of the loan, stamp duties and other miscellaneous fees.

2. No cash component required for the down-payment

A key advantage of a HDB loan is that you do not have to stump up any portion of the down-payment in cash. You are allowed to use the balance in your CPF (Central Provident Fund) Ordinary Account to pay for it completely.

Whereas with a bank loan, you will have to pay at least 5% of the Valuation Limit (VL) in cash. If the loan tenure exceeds 30 years or extends past the age of 65, the minimum amount jumps to 10%.

3. Higher loan quantum

For the first HDB Concessionary Rate Loan you are taking, the loan quantum is as high as 90% VL. In contrast, for bank loans, the quantum is capped at 80% LTV (loan-to-value ratio). It dips to 60% if the loan tenure exceeds 30 years or extends past age 65.

New regulations, that have kicked in from 12 January 2013, dictate that the mortgage servicing ratio (MSR) for private loans must not exceed 30% of the gross monthly income of the borrower and 35% for HDB loans.

Effectively, this can translate into a lower loan quantum for a bank loan compared to a HDB loan.

For example, for a 30-year loan with a 80% quantum for a S$800, 000 HDB flat, at an interest rate of 1. 5% p. a., the monthly repayment amount will be S$1, 932. 67. In order to be eligible for a

HDB loan: Gross monthly income ≥ S$5, 521. 92
Private loan: Gross monthly income ≥ S$6, 442. 24
Thus, if your income is below S$6, 442. 24, you will not be eligible for a private loan of 80% LTV. If you extend the loan tenure, current rules mandate that you can only take up to 60% LTV.

Therefore, a HDB loan will allow a higher loan quantum.

4. HDB is more lenient

As a Government agency which main goals are to provide affordable quality housing and encourage home-ownership, HDB tends to be more tolerant of delinquent borrowers.

But for a loan from a financing institution, you are always required to pay the monthly stipulated amount even if you have suffered a pay cut.

Further, HDB usually grants deferment of monthly installment payment if you have fallen into financial hardship. The banks, on the other hand, will likely be hot on your heels if you defer payment even for a day!

5. No penalty for partial or full repayment of loan

Of note, is that HDB imposes zero penalty for partial or full repayment of its loan.

Most mortgages of financial institutions, however, come with a lock-in period (aka commitment period) typically of 3-5 years. During this period, any repayment above the prior agreed amount will result in a penalty – usually at most 1. 5% of the repayment amount. Financial institutions profit from the interest incurred on the loan, any partial or full repayment of the loan means a loss on interest earnings. Hence, the penalty helps to compensate for this loss.

6. Stability in interest rate

Since revision to the interest rate of a HDB loan is made quarterly in tandem with changes to the CPF rate, which has been the same for over 10 years. The interest rate has, likewise, remained stagnant. A HDB loan, thus, offers relatively more stability than even a fixed-rate mortgage which rate is only fixed for 3- 5 years. This is not saying that there have been no fluctuations in HDB interest rates. For instance, in the 1990s rates demonstrated more volatility.

Loan Originator Compensation January 2013

The consumer Financial Protection Bureau released its final rules regarding Loan Originator Compensation Requirements under the Truth in Lending Act (Regulation Z), on January 20, 2013. The final rule implements requirements and restrictions imposed by the Dodd-Frank Act concerning loan originator compensation; qualifications of, and registration or licensing of loan originators; compliance procedures for depository institutions; mandatory arbitration; and the financing of single-premium credit insurance. I am going to focus on how the new amendments will affect mortgage brokers and correspondent lenders.

There are only a few real changes, but you can tell our policy makers valued the input of our industry this time. The most dramatic change is the ability for mortgage brokers to do borrower paid loans And be able to compensate their loan officers. The ban on dual compensation is still in effect for brokers, making them less competitive against their correspondent peers. It was an uninformed decision by our policy makers to let this happen to begin with, and they have corrected it. Only problem, it doesn’t go into effect until January of 2013.

Clarification on retirement plans has been included. It was unclear whether the contribution to employee retirement plans was allowed or not. It is clear now. Yes, mortgage loan originators can now have a retirement program without the worry of violating federal law. Employers are now able to contribute to a designated tax-advantaged plan for their employees, as defined by the IRS.

Also included with a few stipulations, is a profit based non-deferred compensation allowance. It basically allows a bonus up to 10% of a loan officer’s total compensation.

Here is a breakdown of all the changes:

Note: Originator is defined as a loan officer (a person who takes applications and negotiates terms) and a mortgage broker (an entity that does not fund loans from its own funds or warehouse line), not a depository bank employee or a correspondent lender.

Record Retention

Correspondent: Requires the retention of records regarding all compensation paid to your loan officers, the loan officer compensation agreements, for a period of three years from the date of the transaction.

Broker: Requires the retention of records regarding all compensation paid to your loan officers, the loan officer compensation agreements, compensation received from your Investors, your agreements with them, compensation received from a consumer or other person (borrower paid transactions), for a period of three years from the date of the transaction.

Payments based on terms of a transaction. (Broker/Correspondent)

You cannot compensate your loan officers based on any term (rate, profit, YSP, etc. )#) on a single transaction, multiple transactions, or a “pool” of transactions. You cannot pay them based on a “proxy” for a term either. A factor, although not an obvious loan term, is considered a “proxy” for a term of the transaction if the factor consistently varies with that term over a significant number of transactions, and the loan originator has the ability, directly or indirectly, to add, drop, or change the factor in originating the transaction. It is allowable to pay your loan officers a “fixed percentage of the loan amount”, and if needed, setting a minimum and maximum commission amount.

You are allowed to make contributions to a “designated tax-advantaged plan” as compensation. A designated tax-advantaged plan means any plan that meets the requirements of Internal Revenue Code section 401(a), 26 U. S. C. 401(a); employee annuity plan described in Internal Revenue Code section 403(a), 26 U. S. C. 403(a); simple retirement account, as defined in Internal Revenue Code section 408(p), 26 U. S. C. 408(p); simplified employee pension described in Internal Revenue Code section 408(k), 26 U. S. C. 408(k); annuity contract described in Internal Revenue Code section 403(b), 26 U. S. C. 403(b); or eligible deferred compensation plan, as defined in Internal Revenue Code section 457(b), 26 U. S. C. 457(b). The contribution cannot be directly or indirectly based on the terms of that individual loan originator’s transactions.

A bonus can be paid under a non-deferred profits-based compensation plan based on the profits earned by the loan officer if the non-deferred compensation is not based on a loan term or condition and at least one of the following conditions is satisfied:

The compensation paid to an individual loan originator does not, exceed 10 percent of the individual loan originator’s total compensation corresponding to the time period for which the compensation under the non-deferred profits-based compensation plan is paid; or

The individual loan originator was a loan originator for ten or fewer transactions during the 12-month period preceding the date of the compensation determination.

Dual Compensation (Brokers)

Dual Compensation (receiving funds from the borrower and creditor) is still not allowed for mortgage brokers. Originators who are employed by a Mortgage broker have been unable to receive compensation when the borrower paid origination fees and discount points (Borrower Paid). Beginning January 20th, 2014, a mortgage broker will be able to compensate their loan officers on these transactions, as long as the compensation is not based on terms or conditions of the loan.

Safe Harbor (Brokers)

When meeting the Safe Harbor requirement, some verbiage has changed as far as the options you must present to the customer:

The option that stated “The loan with the lowest total dollar amount for origination points or fees and discount points. ” Has been changed to:

“The loan with the lowest total dollar amount of discount points, origination points or origination fees (or, if two or more loans have the same total dollar amount of discount points, origination points or origination fees, the loan with the lowest interest rate that has the lowest total dollar amount of discount points, origination points or origination fees). ”

Loan officer requirements and hiring standards. (Correspondent/Broker)

All of the new requirements are already covered by the SAFE Act and applied when a loan officer registers for NMLS and State licensing.

Name and NMLSR ID on loan documents. (Correspondent/Broker)

This requires the originators name and NMLS number on the credit application, the note or loan contract, and the security instrument.

Effective June 1, 2013

Mandatory Arbitration. (Broker/Correspondent)

Eliminates the use of mandatory arbitration clauses, waivers of Federal statutory causes of action, and waivers of consumer rights. Arbitration can be used, but not required in a contract.

Prohibition on financing single-premium credit insurance. (Broker/ Correspondent)

Credit insurance can be paid monthly, but cannot be financed as a “single premium”.

Seven Steps to getting a VA Home loan

Veterans Affairs (VA) mortgage loans have increased exponentially in recent years due to the downturn in the U. S. economy. This economic slump has resulted in banks tightening lending standards for conventional loans. The increase in VA loans is largely due to the fact that they are easier to qualify for than conventional mortgages and are one of the few mortgage options available for qualified borrowers who do not have a down payment.

VA loans often offer lower interest rates than other type of loans and are available for the “full reasonable value” of a given property. Consequently, a down payment is not required as with other government programs such as FHA, which requires a 3. 5 % minimum down payment.

So what is a VA loan? VA loans are home mortgages guaranteed by the U. S. Department of Veterans Affairs however they are not a direct lender. The loan is made through a private lender (of your choice) and is guaranteed by the VA as long as guidelines are met. What are the guidelines and who actually qualifies for a VA loan? To follow are the seven basic steps you will need to take to successfully obtain a VA home mortgage loan.

Step one: Determining Eligibility

Most members of the military – veterans, reservists, and members of the National Guard are eligible to apply for a VA loan. The spouses of military who died in active duty or as a result of service-connected disability may also apply. Active duty members qualify after about six months of service.

Reservists and National Guard members must wait six years to apply unless they are called to active duty, where they gain eligibility after 181 days of service. However, during war periods members are generally eligible after 90 days of service. In consideration of your status of service, loan applications can differ. Your VA regional office personnel can assist you with any additional eligibility questions.

After pre-determining your eligibility, the first step for potential borrowers is to obtain a Certificate of Eligibility (26-1880) before applying for a loan. At this juncture, you will need to select an accredited VA loan specialist who will assist you in moving forward in the loan process which includes accessing and submitting this eligibility form online.

Step two: The Pre-Approval Process

Before embarking on step two of the VA loan process, it is crucial that you have pulled your credit report in advance with all three credit reporting agencies to see where you stand with your FICO credit score. You should thoroughly examine the report for any errors and/or identity theft, taking care of any such issues beforehand. Although Veteran’s Affairs does not require a minimum score for a VA loan, most lenders have internal requirements, asking for a credit score of 620 or higher.

After you have completed this important task, you will provide this information to your VA loan specialist. They can answer any questions that you have and help you with determining the loan amount you are eligible for through a pre-approval process. The pre-approval process is required by most realtors before working with you to find a home. It serves to give you piece of mind and a price range that you can afford based on a pre-approved amount.

To obtain a VA loan, the law requires that:

• The applicant must be an eligible veteran who has available entitlement.

• The loan must be for an eligible purpose.

• The veteran must occupy or intend to occupy the property as a home within a reasonable period of time after closing the loan.

• The veteran must be a satisfactory credit risk.

• The income of the veteran and spouse, if any, must be shown to be stable and sufficient to meet the mortgage payments, cover the costs of owning a home, take care of other obligations and expenses, and have enough left over for family support.

Your experienced VA loan specialist will be able to further discuss specific income and other qualifying requirements. According to the VA Loan Quick Guide, the VA loan limits generally do not exceed $417, 000 (exception in maximum limits with VA Jumbo loans in designated High Cost counties – calculations can vary).

Step three: Decide on a Home & Make an Offer

Select a realtor to work diligently with you to find your desired home. After finding the home based on your personal and financial criteria, you will make your offer. The offer should not be too low or too high, as you want to stay ahead of the pack in bidding but not risk overpaying for the property. After making the offer, you will be required to place a deposit down ($500. 00 is customary) on the property.

In placing your offer, be aware that there are certain fees such as brokerage and lender fees, commissions or buyer-brokerage fees that the seller may have to absorb as they are disallowed by the VA to be charged to the veteran buyer. This amount may need to be factored into the offer/purchase price to be acceptable to the seller.

Step four: Signing the Purchase Agreement

It is recommended that two contingency provisions: 1) upon financing and 2) upon inspection, are inclusive or amended to the purchase agreement. Fact: A “pre-qualification” letter does not necessarily guarantee financing so you must be covered in the event that it does not go through. However, if you have proceeded as directed in Step two and you are “pre-approved, ” you should be fine. The pre-approval process is a more extensive check performed by your VA loan specialist on your financial background and credit rating. After completion, your lender will provide a conditional commitment on the amount of your loan.

A home inspection can be a critical contingency provision, giving you the option to back out if repairs are costly and substantially decrease the fair market value of the property. Fact: VA fee appraisers are not required to step on the roof for inspection nor do they have the specialized knowledge that a certified home inspection can provide.

The VA appraiser’s job is to ensure that the home lives up to minimum property requirements. He/she establishes fair market value for the home and a Certificate of Reasonable Value is issued. However this VA appraisal does not take the place of a detailed inspection of the property. Although optional, it is highly recommended that your offer be contingent upon a detailed home inspection.

Step Five: Offer Accepted

Contact your lender immediately and let them know that your offer was accepted. Congratulations! You are on your way to homeownership! If you have not done so already, you will need to provide the last two or three years of tax returns, pay stubs and bank statements. He/she will help you complete your application and submit it to processing and approval.

Subsequently, the lender will order a VA appraisal and the certified home inspection. Your VA loan specialist will complete the appraisal and perform a complete review and verification of your credit, income and assets to give a “clear to close. ” This will initiate the date, time and place where you will close to sign all necessary documentation to have the title transferred to you.

Step Six: VA Funding Fees

The VA funding fee is an essential component of the VA Home loan Program. This basic one-time funding fee must be paid to the VA by all but certain exempt veterans. First time users of the VA loan benefit program with no down payment requires a 2. 15% fee. A down payment of at least 5 percent but less than 10 percent requires a 1. 5% fee, and a down payment of 10% or more requires a 1. 25% fee.

For subsequent users of the VA loan benefit, no down payment requires a 3. 3% fee and a down payment of at least 5 percent but less than 10 percent requires a 1. 5% fee. And a down payment of 10% or more requests a 1. 25% fee.

The category of Reserves/National Guard first time users with no down payment requires a 2. 4% fee. A down payment of at least 5 percent but less than 10 percent requires a 1. 75% fee, and a down payment of 10% or more requires a 1. 5% fee. For subsequent users for the category of Reserves/National Guard, no down payment requires a 3. 3% fee. A down payment of at least 5 percent but less than 10 percent requires a 1. 75% fee, and a down payment of 10% or more requires a 1. 5% fee. The funding fee may be paid in cash or it may be included in the loan.

The following persons are exempt from paying the funding fee:

• Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.

• Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.

• Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan).

More good news! Unlike FHA and conventional loans (with less than 20% down), VA loans do not require mortgage insurance.

Step Seven: Approval & Closing

If your lender is authorized for automatic processing under VA’s Lender Appraisal Processing Program (LAPP), upon receipt of the VA appraised value determination the loan can be approved and closed without waiting for VA review. For loans that must be further reviewed by the VA, the lender will send the application to the local VA office, which will notify the lender of its decision.

After receiving VA approval, you (and your spouse) will attend the loan closing. Your lender or closing attorney will go over the terms of the loan and its requirements and where and how to make the monthly payments. You will sign all necessary documentation and the property will be then be transferred to you. You have completed the seven steps to getting a VA loan and are now a homeowner!

VA Loan Program Benefits – Now and in the future

The VA loan program is effectively the U. S. governments’ and the American people’s way of saying “thank-you” to those who are actively serving or have served in the military. The benefits of the VA loan program extend beyond getting a home loan, as they can also be used for refinancing and fixing up an existing home.

Another advantage of a VA loan is in the assistance offered to borrowers who might be struggling. If the borrower of a VA loan cannot make their mortgage payment, the VA will negotiate on behalf of the borrower. They have a dedicated nationwide staff committed to helping veterans who are experiencing financial difficulties. These financial counselors can help borrower s negotiate repayment plans, loan modifications and other alternatives to foreclosure.

We are keenly aware that many of our troops will be returning from overseas in the near future and that there are veterans who have served our country in the past now looking for a home. Be assured that VA accredited lenders are honored to work on your behalf, in financing your home and the bright future that you and your family so richly deserve.

How do you Get a Cash loan Without a Credit Check?

With the rising cost of living and limited income, most of the people today face cash shortage. This leads to frequent borrowing of loans some of which results in defaults, arrears etc. This situation leads to negative credit profile of the borrowers.

The worst problem of negative credit issue or in other term bad credit profile is the reluctance of lenders to offer you any loan.

However, owing to the tight economy in general, negative issues in credit profile have become extremely common. There are several people who now have a bad credit profile.

So can we really deny the facility of borrowing cash to a person who is in need but have a bad credit profile? No; no competitive and open market can afford to deny this basic right to any citizen, however bad credit profile he or she has. After all even these people face cash crisis and they need to be supported to meet their needs.

What are bad credit loans?

It is therefore lenders have now started offering loans to people with bad credit. While offering loans, lenders now do not differentiate among borrowers on the basis of their credit profile. These loans are commonly referred to as bad credit loans. But these are also known by many different names such as bad credit cash loans, cash loans without credit check, bad credit payday loans etc.

How do you get a cash loan without a credit check?

Normally when you apply for any loan, lenders ask you to submit various documents including your credit score. Your credit score is used to check your previous track record of borrowing loans, repaying the loans, timely repayment, defaults, arrears, bankruptcy etc.

In fact your credit score makes everything very clear. Lenders carry out verification of your credit profile to corroborate the information that you have provided in the application form with the findings of lender’s verification. So, based on the credit verification lenders decide whether to offer you any loan or not. In case of traditional loans, lenders normally reject your application if you have a poor credit profile.

However if you have a bad credit profile and you apply for a cash loan, now lenders offer you cash loan without any differentiation. So how lenders offer you lenders offer you a loan even when you have a bad credit profile? Lenders offer you a loan even when you have negative issues in your profile because they do not look at your credit history to decide your eligibility.

In other words, lenders do not carry out any credit check to decide your eligibility. Therefore however bad credit profile you have, you get cash loans from lenders.

In fact these loans are offered to you on the basis of your present needs and current financial status. Therefore lenders do not carry out any credit check to decide the eligibility before offering you this loan.

Special benefit

When you borrow a cash loan without a credit check, you get a hidden opportunity. This is the opportunity to repair your bad credit profile.

When you borrow cash loan despite your credit issues and repay this loan as per the terms of repayment, your profile improves and you can see the difference when you choose to borrow any loan the next time.

The flip side

However like any other loans, the cash loans without credit check also have a flip side. Lenders offer you cash loans despite your poor credit history. So you are a risky borrower. Also, you do not provide any collateral to get these loans. Therefore lenders do not have any assurance or security of getting their loan back. These factors make these loans quite risky which results in a high rate of interest.

Because these loans are risky, lenders also charge a high penalty on late payments and defaults.

Therefore you should borrow these loans only when you actually need it. Moreover before borrowing you must decide the amount that you need to meet your needs. You should not borrow more than that of your actual needs. You should also plan in advance about its repayment to repair your existing bad creditors profile.

What makes a Logbook Loan More suitable Than a payday loan?

With the recent economic turmoil in the world, it’s little surprise that many people are struggling to find ways to get cash-in-hand quickly. For this, short-term loans have often fitted the bill perfectly.

But as many banks have also been hit by the recession, they are increasingly wary of lending to consumers. As a result individuals are forced to seek alternative means for a cash loan.

A market that cropped up to meet this need was the payday loan scheme. However, those that examine the terms and conditions of such loans carefully may in fact notice that a logbook loan is more suited to their needs, and comes with lower risks than a payday loan.

What is a Logbook Loan?

A logbook loan is a loan granted against your vehicle’s V5 document or “Logbook”. It is an easy method of loan as they do not check credit history. It is generally approved within a day and requires very less paperwork. Though it has a requirement, ie. the vehicle should be finance free and should not be more than 12 -13 years old. Still, it is considered as a better alternative to Payday loans because of low interest rates and flexible repayment options.

Here’s a few reasons that a logbook loan may be the more suitable option:

1. Interest rates are significantly reduced.

Although payday loans may seem a quick-fix for cash in hand loan, many individuals fail to consider the high interest rates that such loans come with.

Payday loans can sometimes come with APRs topping 4, 000%, leaving borrowers paying back a substantially larger sum than they originally borrowed. It does little to help your cash flow stabilize, which is what loans are intended to do! If you don’t repay it quickly, you may find yourself facing a potentially debilitating debt.

Logbook loans however, are secured against the worth of the borrower’s car, which generally means that the APRs are far less, meaning it’s a more manageable debt and easier to pay back.

2. Potential for larger sums in loans

While payday loans may hold an appeal in that they require virtually no collateral, leaving it as a no-strings attached type loan, if you already own a vehicle you have a high-value asset in your possession. This asset can be used to help obtain a logbook loan, which then in turn gives you access to a greater potential sum to loan.

Although it depends on the value of your vehicle, logbook lenders may offer loans ranging from £200 up to £25, 000. It doesn’t matter if you are considered to be self-employed, or if you have a less than stellar credit record. Your car is generally the second most valuable asset you would own, and you can make that asset work harder for you in securing a log book loan.

3. Loan periods are more easily managed

Payday loans are designed to be a quick-fix, that is a short-term solution. What that means, is you’ll have to repay the loan within a relatively short period of time. If the borrower cannot secure the funds to repay the loan, the interest quickly builds up. This leaves borrowers at times forced to take out a second loan merely to repay the first loan!

Lenders offering logbook loans however, can set it up so that you can repay the debt over a far greater time period, anywhere from half a year up to three. In addition, borrowers can sort out a repayment plan to match their cash-flow needs, which guarantees you can pay back your debt in a timely and stress free fashion.

A Credit Tenant Lease (CTL) or Conventional (Bank) Loan – Which is Best for My NNN Deal?

Many good quality, single tenant, net leased properties qualify for both credit tenant lease (CTL) financing and conventional commercial mortgage lending. Net lease property investors should consider the pros and cons of each before deciding which type of loan to commit to.

CTL lending is generally best for the long term income investor who wants permanent, high leverage, fixed rate, fully amortized financing and desires speed and certainty of execution. Bank lending has a lower initial (but not overall) cost and can offer a larger variety of terms and conditions. Banks are best for investors who need options, don’t need maximum leverage (have large down-payment available), and who are not sure if they will hold a property for the long run.

The Difference

CTL lending combines aspects of commercial mortgage lending with specialized investment banking in-order-to close deals. A CTL banker issues and sells private placement corporate bonds that are secured by the lease on the real estate. The proceeds of the bond sales are used to fund a commercial mortgage loan for the borrower. The loan is administered by a third party Trustee throughout the life of the deal.

Traditional commercial mortgages are standard loans secured by mortgage liens against the real estate, the income the property produces and the credit of the borrower. Banking institutions originate a loan and fund the deal either by selling the loan to an investor (private or Government) or by lending its own funds and holding the loan in its portfolio.

Leverage

The ongoing credit crunch has forced banks to tighten up their lending criteria. It is highly unlikely that a commercial bank will offer any more than 75% loan-to-value (LTV) on any deal today. Banks have no incentive to take unnecessary risk; they can borrow money from the Fed (Federal Reserve Bank) at 0% percent and buy 10 year Treasury Bonds at 2% earning 2 points risk free. They will pass on high leverage loans and only lend where they have large amounts of protective equity.

CTL lenders will lend up to 100% LTV (lease fee valuation) on a non-recourse basis. They are in the business of loaning the full, current cash value of a lease (against the guaranteed future income). CTL bankers, without question, make the highest loan offers in the commercial real estate finance industry.

Speed and Certainty of Execution

CTL loans can close in about 1/3rd of the time it takes to close a conventional commercial mortgage. CTL deals have been known to be completed, from-start-to-finish, in as-little-as 45 days (unheard of in the world of commercial banking) but generally take 60.

Bank loans take at least 60 days, sometimes 180 or more. Also, because CTL deals either qualify or doesn’t, a banker can give a borrower a solid yes or no very quickly. There are a thousand ways a bank loan can fall through but, once a CTL banker commits to a deal and a borrower signs off, there is a near 100% certainty of execution.

Recourse

CTL loans are all non-recourse loans secured by the income that the lease produces.

Bank loans are usually, though not always, standard, credit driven, full recourse loans with liens against the borrower as well as the real estate.

Cost

A CTL loan will have higher initial costs because of the investment banking aspect to the deal and the fact that a third party Trustee must be involved. However, over the life cycle of a property, CTL tends to be less expensive because you never have to refinance. At the end of a CTL loan the borrower owns the property free and clear.

Bank loans must be recapitalized or paid off at the end of each term, usually 3, 5, 7 or 10 years. Having to refinance so often results in higher overall cost of capital.

Flexibility

CTL lending is somewhat less flexible than standard bank lending. The bonds sold by CTL bankers are regulated by the securities industries and the insurance industries. CTL lenders must adhere to very strict criteria and are not allowed to deviate from the standards. A deal qualifies for CTL or it does not; there is no leeway.

Banks generally have many lending platforms available to them; they are able to tailor a loan to a particular situation or a particular property.

Terms

Banks can offer self amortizing loans but generally issue mortgages with 3, 5, 7 or 10 year maturities amortized over 10-25 years with balloon payments due at the end of each term. Banks can also offer either fixed or adjustable rates.

CTL loans are all fully amortized, fixed rate, long term loans with terms coterminous with the lease.

In summary

Banks offer a larger variety of loan products and can loan against more types of properties and tenants. Bank lending also tends to be less expensive in the short-run.

On the downside, banks are not inclined to offer high LTV loans and will generally require the borrower to guarantee a loan. Further, bank loans are notorious for falling through and failing to close for any number or reasons (or no reason at-all).

CTL loans are rigid in their qualification standards but close with near 100% certainty. They close faster and are less expensive over the life of a deal. CTL bankers place no restrictions on LTV or LTC (loan-to-cost) and are non-recourse loans. Also, it must be noted that CTL loans are administered by a third party Trustee throughout the entire life of a loan. The trustee will collect the rent, pay the mortgage and distribute the income to the borrower every month.

CTL loans are best for buy and hold investors who want to lock in today’s low rate for the long term. They are also appropriate for investors who need high leverage financing or who are looking to close as-soon-as-possible.

Bank loans are best for investors with deals that need some flexibility in the underwriting process. Bank loans will cost less up-front and more deals will qualify. Banks offer more loan choices to qualified borrowers.

Single tenant, net lease real estate investors who understand their options will be well equipped to make the best financing decisions for themselves and their businesses.

Personal loans With Bad Credit: Instantly Approved Loans To deal with Emergencies

Bad credit borrowers face some difficult challenges when it comes to seeking loans from traditional lenders for financial emergencies. Little wonder they should turn to online and alternative lenders to secure the necessary financing. The good news is that obtaining personal loans with bad credit is definitely possible.

The problem with traditional lenders, like banks and credit unions, is that they are extremely cautious when lending to applicants with low credit scores. And when there is an emergency, their approval process can be too slow to be of any good. In such circumstances, with little time to consider options, guaranteed loan approval is a must.

There are loans that can be approved within seconds, and delivered in just a few hours. These are called payday loans, and are often a lifesaver for borrowers. But there are details that need to be known before taking them on.

Advantages of Payday Loans

Opting for these loans provides several advantages over traditional loans. The first is that approval is almost guaranteed with these personal loans, with bad credit completely ignored by the lenders. So, even those with the worst credit scores can get funds.

The second advantage is that the approval system is extremely fast. While traditional lenders will boast 24-hour approval times, these loans are approved in seconds thanks to modern computer programs, with the funds then transferred directly into the bank account of the applicant as quickly as 2 hours after approval is granted.

The reason for such fast guaranteed loan approval is that the income of the applicant is the only basis of consideration. And the loan is given on the back of an upcoming paycheck, thus the reason it is called a payday loan.

Disadvantages of a payday loan

But this convenience and certainty is provided to every applicant at a cost. The interest rates charged on these loans are extremely high, with some lenders quoting rates of 30%. Getting personal loans with bad credit is great, but it is also extremely expensive.

What is more, the repayment period associated with these loans is very short, with the loan term sometimes just 14 days. A common term is 30 days, but this too means that the loan is effectively repaid in one go. And since it is taken out of one paycheck, little is left with which to cover normal monthly expenses.

The promise of guaranteed loan approval is still a major advantage, but in order to make the loan feasible, the loan sum limit is very low. These payday loans range in value from just $100 to $1, 500, ensuring the specific emergency can be dealt with, but little else.

Secret to Managing Instant Loans

When time is of the essence, securing personal loans with bad credit quickly is not easy. So, when instant approval is offered, and bad credit ratings are completely ignored, it is an opportunity that is difficult to pass up. However, managing these loans requires real financial discipline.

For a start, the repayment of any loan in one go can create greater financial pressure. For example, a $1, 500 at 30% requires a single payment of $1, 950 to clear – and that is a very large sum to take from one paycheck. Despite the convenience of guaranteed loan approval, extremely strict fees and penalties exist so any failure to clear the loan on time is likely to worsen the situation dramatically.

Applicants must understand that, though the emergency is dealt with, other bills may have to go unpaid for at least a month. Planning and prioritizing future repayments is needed to recover from a payday loan as quickly as possible.