Use Short Term Bridging Loan To Bridge The Cash Gap How You Can Consolidate The Loans Of Your Students Military Payday Loans What Is A Fha Loan Giving You The Right Way Easy Bridging Loans
One day on my way to the office, I noticed something. No, it was not a gorgeous dress or expensive jewellery. But, a house, it was beautiful.At the very first glimpse, I decided to buy it at any cost. Now, I feel proud to live in that house. Thanks to “Bridging Loan”, it is only due to it my dream to own that house could see light of the day, which could have been impossible with little savings in my account.
Bridging loan is a short-term loan offered by commercial lenders to borrow for a specific purpose such as for critical and immediate purchase of a property, pending arrangement of a long-term mortgage. Bridging loans are also known as “interim financing”, “gap financing or a “swing loan”.
Bridging loans are commonly used to “bridge the cash gap” when completing commercial real estate transactions. As there can often be a time lag between the sale of one property and the purchase of another, a bridge loan allows a homeowner more flexibility.
A borrower can be an individual or corporations and can be customized for many different situations. The purpose of borrowing could be to purchase a land, residential or commercial property. Bridging loan can also be used in case of auction where a borrower can have a bridging facility so that a bid on a property can be done with confidence.
A borrower will be asked to secure the loan with some kind of significant collateral. Heavy machinery, business equipment, inventory, other commercial or residential properties owned by the borrower and even properties involved in the purchasing process can be put as a collateral against the loan.
Bridging loan can be classified into open and closed bridging loan. Open bridging loan is available to a borrower who goes ahead with the plan to buy a new house without finalising the terms of sale of the existing house. Closed bridging loan is available to borrowers who have agreed on the terms of the home he is buying and selling, but there is delay in moving from the old to the new house.
Lenders usually allow bridging loans of up to 65% of the value of the property kept as a collateral against the loan. A standard bridging loan would range anywhere between
Usually, consolidation is a faster way to get out of students’ debt than a reasonable and affordable payment plan. Once you go through the application process and get a direct Consolidation Loan, you will immediately be taken out of default status. You will stay this way as long as you keep making payments.
Although student loans are not secured debt, and therefore you will not lose your home or car if you don’t pay them, they are also different from most other unsecure debts. If you don’t pay your student loans, you won’t be able toget additional student loans or grants in the future. In addition you will be subjected to a number of special debt collection tactics that only the government can use.
These government collection tools can have very severe consequences.
First, the government can charge you collection fees, often far in excess of the amount you originally borrowed. Second, unlike almost every other kind of debt imaginable, thereis no statute of limitations for collection of student loans. This means that every 20-30 years after you went to school, the government can continue to try to collect your loans.
If you don’t pay your student loans, the government can also:
– seize your income tax refund
– garnish a certain percentage of your disposable income
– attach some federal benefits that are usually exempt for collection, such as Social Security income
If you get notice of a wage garnishment or tax intercept, you have the right to challenge it by requesting a hearing.
Sometimes just the act of requesting a hearing prompts the collector to agree to a payment plan. if you can pay a small amount, you should consider the various affordable payments plan that can get you out of default.
The department of Education’s student loan assists borrowers with student loan problems.
If you are having problems making your student loan payments because you have a low income you may be able to get help from your local legal aid or legal services office.
Like other people, active and ex military persons also need money to meet their needs. There are varieties of military loans available. One of them is the payday loan.
Military persons can use this loan to pay grocery payments, to complete incomplete projects or to pay utility bills. Military personals can get military payday loans at a comparatively lower rate and with favorable terms and conditions.
Here are some suggestions to profit from military payday loans.
The appropriate time to apply for a military payday loan is when you feel that you are in temporary deficit of funds and you see that only a short term payday loan can help you overcome the problem.
Some situations when you find yourself in financial problem:
1. When you have to pay for an unexpected expenditure, which is not planned in your monthly budget.
2. When in the last days of month you have got multiple bills due and your salary is not enough to cover it.
3. In case of some medical emergency, which cannot wait for your payday.
Here are some facts, which you should know if you want to take advantage of a military payday loan.
You are qualified to get a military payday loan even if you are retired. The only criteria is that you have to be currently employed for at least three months.
Before applying for a military payday loan you should be confirmed that your monthly income should not be less than $1000 and that you have a current checking account. After verification of a military pay day loan your requested amount will be transferred into your current checking account and you will be noticed by email or by a phone call.
Some points to know after you have been qualified for a military payday loan:
Rate of interest varies from 20%-30% of the amount borrowed. Always make a search on your own to get the military payday loan at comparatively lower rate of interest. You can even use the internet to browse official sites of different companies providing military payday loans. After comparing the interest rates choose the one, which is providing you the lowest rate of interest.
Most of us need to borrow some money at least at one point of time in our life. When we want to buy a car, to study at the College or University, when we want to buy a house or home, when we need money to start our own business – even when we use our credit cards.
There are many types of loans and mortgages, such as FHA loans, Student loans, College loans, Business loans, Personal loans, Commercial loans, Payday loans, Auto loans, Car loans, Vehicle loans, Mobile home loans, Motorcycle loans, Military loans, Construction loans, Home loans, house loans, home equity loans, Bridge loans, Disaster loans, farm operating loans, Agriculture loans, Debt consolidation loans, Direct Loans, Government loans, Unsecured loans, refinance/remortgage loans, Bad credit loans, etc., just to name a few.
Within each loan term there are additional sub terms such as Fixed rate vs. Variable rate, Adjustable rate, ARM, PITI, HELOC, Balloon Mortgage, reverse mortgage, and other bewildering financial terms we will try to clarify here.
What is FHA
Home mortgages are important part of the loans universe but we will concentrate here On a specific one called FHA. The Federal Housing Administration (FHA), a wholly owned government corporation, was established under the National Housing Act of 1934 to improve housing standards and conditions. Its goal was to provide an adequate home financing system through insurance of mortgages, and to stabilize the mortgage market.
FHA is not a loan, It’s an Insurance! If a home buyer defaults, the lender is paid from the insurance fund. An FHA loan allows you to buy a house with as little as 3% down payment, instead of the higher percentages required to secure many conventional loans. Taking advantage of the FHA loan program is a great way for first time buyers, or anyone with a shortage of down payment funds, to buy a home. It is not a program reserved only for first time home buyers. You can buy your third or fourth home with an FHA loan. The only stipulation is that you may only have one FHA loan at a time.
FHA helps low and moderate-income families purchase homes by keeping the initial costs down. By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA’s mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines. It also protects lenders against loan default on mortgages for properties that include manufactured homes, single-family and multifamily properties, and some health-related facilities.
The two very basic terms you need to understand is A.PITI and B. Long Term Debt. PITI stands for Principle, Interest, Taxes, and Insurance. It is with relations to your Mortgage and property housing total monthly cost. Your maximum PITI should not exceed 29% of your gross monthly income.
Long term debt includes such things as car loans and credit cards balances. In order to qualify for FHA loan your PITI + Long Term Debt should not exceed 41% of gross monthly income.
This is much lenient terms compared to conventional loan terms of maximum PITI of 26% – 28% and Total PITI + Long Term Debt of 33% -36%.
Qualifying for an FHA loan you need the following:
– Good credit history that shows you meet your financial obligations.
– PITI + Long Term Debt not to exceed 41% of gross monthly income.
– Sufficient cash down payment at time of closing. 3% of the total cost.
– Closing expenses cost of 2%-3% of the price of the house. (Homeowner’s Insurance, Attorney’s fees, title fees, and title insurance, Private Mortgage Insurance if you are paying less than 20% down, the loan origination fee, and a fee that goes into the FHA insurance fund).
The FHA ARM – Adjustable Rate Mortgages is a HUD -US Department of Housing and Urban Development, mortgage specifically designed for low and moderate-income families who are trying to make the transition into home ownership. At the time it is issued, the ARM usually has an interest rate several percentage points below a fixed rate mortgage.
The interest rate can change as market conditions change. If interest rates go up, so does your mortgage payment. If they come down, your mortgage payment comes down, too.
The reverse mortgage is often of interest to senior homeowners. This loan provides cash for living, health or other expenses. Payments are made to the borrower in a lump sum or monthly. Most reverse mortgages are issued to those 62 and older who own a debt-free home with no tax liens.
A Home Equity Line of Credit (HELOC) lets you use equity in your home to pay for home improvements, debt consolidation or other financial goals. With an acceptable debt, credit and employment history, you may be able to borrow up to 85% of the appraised equity in your home.
Balloon Mortgage – the buyer pays interest for three to five years on a balloon mortgage. After that the entire principal comes due all at once.
Buying a new property always need good amount of investment. Sometime people have to sell their existing property to buy the new one. But as everybody know selling a property is not an easy job and is very much time consuming. By the time you get the sale proceeds, the property you thought of buying is taken by some other person. This is the problem with most of the buyers these days. Bridging loans can help you out by providing you funds when you need them.
As the name suggests bridging loans are loans that act as a bridge to fill the money gap between the time when your need for money arises and the sale of your existing property. Bridging loans are not confined to buying new property only. It can be used for any of your personal needs can be related to business needs or personal needs like buying new car, furniture, home improvement or any other requirement which can’t wait too long.
Easy Bridging Loan is secured by your existing property which you are going to sell. This property include residential properties, commercial & semi-commercial properties, auction properties, development sites, buy to let properties, retail shops, land with planning permission etc
The aim of an easy bridging loan is to provide fast money to the borrower. An easy bridging loan requires a maximum of 48 hours for its approval. The loan amount ranges from ₤25000 to ₤350000 secured against your property. You can get up to 75% of the value of the property offered by you as collateral. These loans are short term loans; hence carry a higher rate of interest. These loans can be repaid within a period of 1 month to 12 months and can be higher in certain circumstances.
Benefits of easy bridging loans:
1. Short term loans against value of your property and not the purchase price.
2. Short term property loans for investment properties.
3. Development loans for expansion of your business.
4. Loans to clients of brokers.
5. Loans to individuals, trusts and limited companies.
6. Option to apply online with reduced paperwork and faster approach.
7. There is also an option to extend the repayment term to suit to your circumstances.
You need to fill an application form with the following details: your name, address and contact information, loan amount, property value, outstanding mortgage (if any). Once you have filled the form, the lender himself will contact you. Easy bridging loans are for all types of people including IVA’s, CCJ’s, defaults, arrears, bankrupts etc. Easy bridging loans will give you the right platform for a new beginning..
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