It is no secret that the housing lending market is not easy to maneuver at the moment. Even borrowers with credit scores of 720, that were once considered high, are now being turned down for all sorts of mortgages and loans. This is forcing more individuals to turn to alternative forms of borrowing. One of Read more…
After the real estate meltdown of 2008, the lending industry has become much more conservative with its underwriting (approval) guidelines. Many borrowers don’t qualify for a loan to purchase a property for a variety of reasons: they don’t have sufficient verifiable income, they don’t have enough assets to make a standard, down payment, or their Read more…
Adjustable rate mortgages (ARMs) have gotten a bad reputation, but in certain situations they may actually be more beneficial than a fixed rate mortgage. If you are considering an adjustable rate mortgage, weigh the pros and con and determine if your future plans and financial situation make an ARM a good option for you. Consider Read more…
No-cost loans have become a popular alternative for borrowers who are considering refinancing their home loans. With a no-cost loan, there are no out-of-pocket fees or any fees tacked-on to the new loan paid by the borrowers. For example, if a $150,000 home loan is refinanced with a no-cost loan, the new loan balance would Read more…
The typical problem for homeowners: multiple loans on their property – a first mortgage and a second mortgage. The first mortgage might be an ugly loan with high interest and high monthly payments. The second mortgage (sometimes called an equity line of credit) usually has a low rate and gives homeowners more flexibility to take Read more…
Subprime loans are home loans that have easier qualifying guidelines than standard or conventional home loans. They allow borrowers to qualify for financing with lower credit ratings, lower income and, in some cases, no-income verification. Because the qualifying guidelines are less strict with subprime loans, lenders view them as more risky than conventional loans. This Read more…
The Loan of Last Resort Sometimes borrowers have their back against the wall and their only source of finance is a property with a lot of equity. Hard money loans can be used to save a property from being seized by the IRS or by being foreclosed-on. It can be used to satisfy an urgent Read more…
A wrap-around mortgage, sometimes referred to as a “blanket mortgage” or “all inclusive deed of trust”, is a type of loan that is typically used when interest rates have been low and then risen. Wrap-around mortgages are not made by banks and are only arranged between buyers and sellers. A seller in essence “carries” the Read more…
When the subprime mortgage crisis started making headlines, the public began learning more about instruments known as B/C loans. Simply put, B/C loans are for borrowers with a poor credit history. Many banks and financial institutions simply won’t make B/C loans because they do not meet the minimum criteria used by those banks to approve Read more…
A Shared Appreciation Mortgage “SAM” is a type of loan arrangement originally developed in the 1980’s by the lending industry to help low-income buyers purchase homes when interest rates were high and financing was harder to get. It works by allowing a lender share in both the risk and reward of the investment in a Read more…
Interest rates move in curves: up, down, up and down again. When should you refinance? Every time the rate hits Read more...
One of the biggest purchases you will probably make it your life is your home. Your home may also be Read more...
The home loan business has experienced significant changes since the real estate crash of 2008. Most notably it has become Read more...
1. What is HUD? HUD stands for the United States Department of Housing and Urban Development. It’s a government agency Read more...