Finance

The FHA Loan in 2017: Loan Requirements

FHA Loan FormIt is true that requirements for FHA loans are significantly laxer than traditional home loans. However, it doesn’t mean that you could get an FHA loan in a snap. You have to not that the specific guidelines and threshold would likewise differ from one lender another. That said, below are FHA loan requirements you could expect as of 2017.

DTI Requirements

Your total DTI or debt to income ratio — which includes credit cards, your new home loan, student loans, as well as any other monthly debt repayments — should not exceed 50% to qualify for the FHA loan program.

Income Requirements

There’s no minimum salary requirement for borrowers. However, you should have two established credit accounts (e.g., auto loan and a credit card in your name and an account containing cash gifts that would go towards your down payment). You also shouldn’t have delinquent federal judgments. Another thing to note is that any debt related to previous FHA-backed home loans in your record will disqualify you.

Down Payment Amount

You should have a 580 credit score or higher if you want to take advantage of the 3.5% minimum down payment for FHA loans. If your credit score is between 579 and 500, you will need to put down 10% down payment instead.

Property Requirements

The property you’re looking to buy should also meet specific requirements. For starters, the property can’t be an investment property. It also can’t be a “flipped property“, which means that you can’t purchase the property within 90 days of a previous sale. The property should be under your name or a living trust. It should be a primary residence. And, you (if you’re not co-owning the property) should live in it within 60 days following the closing. Take note that an inspection is mandatory. This is all the more reason to ensure that the property meets these requirements.

Loan Limits

The property you’re eyeing should likewise meet specific geographical loan limits. In general, the loan limit for single-family properties in high-cost cities and states is $636,150. It is $275,665 in low-cost cities and states.

Keep in mind that the FHA only insures the home loan. However, it’s up to the lender to approve your application. Speak to a local lender that offers the FHA loan program to determine your eligibility or check out other loan options available.

Secure a Loan with These Assets as Collateral

An approved personal loan applicationIf you don't qualify for personal loans, what is your next option? Two words: secured loans. But if you want to apply for a home loan, it is always a collateral loan in itself. The loan it is backed by the title of the house itself. Nevertheless, if you need additional approval security, you may use the following assets.

According to Wasatch Peaks Credit Union — an expert in home equity line of credit (HELOC) from Ogden, Utah — assets that you can use as a collateral loan are:

Home Equity

A home equity line of credit is one of the surest ways to secure a loan. If you opt for a second mortgage, you may use your home equity on the first mortgage to secure such loan. Nonetheless, just make sure that you can shoulder the repayments. There's a risk of losing the equity you've already built up if you default on your mortgages.

Car Equity

An auto equity can also be useful in the same way as the home equity. If you own the car and have documents to prove it, the better. The same goes with if you want to use a boat or yacht as the collateral. Any vehicle with a sizable value you own or currently paying for can the collateral.

Investments

Stocks and bitcoins can get you the loan you want as well. Experts would say that it's best to obtain a loan from a private bank. That is, as long as you've already had investments with since it can offer favorable loan terms. In some instances, the lender may extend a credit limit up to the full amount of the loan applicant's investment portfolio.

Savings

Savings or certificates of deposit are another way to get a loan. Since it is savings-secured, borrowers can keep the money in their deposit accounts. That means the money still earns interest as you use it as collateral. Know, however, that it will gain interest. You can withdraw the money, but if you may choose to borrow if your goal is to build or repair your credit score.

These are just four of the assets you can use as security when obtaining a loan. While it depends on the amount of money you are borrowing, at times, the car or home equity alone is enough.

Speed Up Your Cash Flow With Factoring

Businessman stacking coins in incrementsWhatever the nature and the size of your business, there may be instances when it goes through a squeeze in cash flow. Even if you have customers who will pay you within a specified timeframe, your business needs (more production, expansion, marketing, etc.) may be immediate.

This is where online factoring comes in. Tabbank.com shares some useful information to help you understand how this option works.

What is factoring and how does it work?

Factoring is an exchange in which a business offers its invoices or accounts receivable to a third party organization known as a “factor”. The factor receives payments on those invoices from the business’s clients. Accounts receivable financing is a term often used in other industries to refer to factoring.

Organizations resort to factoring so they can get money rapidly on their receivables, as opposed to holding up the 30 to 60 days it frequently takes a client to pay. Factoring enables organizations to develop their income fast, which makes it easier for them to pay employees, attend to client requests, and grow their business.

What is a cash advance?

You can receive from the factoring provider a percentage of the value of an invoice in advance. The provider typically releases the money within 24 hours. You will still receive from the factor the balance of the invoice after your client pays. The factor will take fees out from the balance before paying you. The rate of advance you receive can shift, depending on what industry your organization belongs to and the factor you choose. The cash advance can go from 80% to as much as 95% of the invoice’s value.

What is the benefit of factoring?

Financial goals and expenses may not wait for clients to pay, thus limiting your company’s capabilities. Factoring offers different benefits, but the most important one is how quick you receive the payment on your invoices. With factoring, you don’t have to wait long before money is available in your company accounts.

Debt Text on Calculator

Fret Not: You Still Have Options Left Even When in Debt

Debt Text on CalculatorBeing in debt is not something you can let go every night. It can wreak havoc on your personal life and even to your career. When you find yourself in the same situation, it would be best for you to take a deep breath and look at the options that you have. Still in a quandary? Here are some options that may prove valuable to your situation:

Pawning Valuables

Consider this as an option when your debts are ballooning and your salary is still a week away. This may come as a quick solution, but it can help bide your time. Yes, your valuables may have sentimental value and may be considered as your family heirlooms, but it can give you time to straighten your finances.

Choose a pawnshop that has a low-interest rate. Bankrate stated that you simply have to let go of your fear of pawnshops because they have simply been denounced by the media. Once you have pawned property, make sure that you note the date when it becomes due. That way, you will be able to pay the interest religiously.

Selling Property

If you do not have any valuable item you can bring to a pawnshop, then consider selling your real estate property. You can find entities offering property acquisition services, and they can acquire your single family home. Selling your property to these entities will be faster than putting it online and waiting until somebody would be interested.

Remember, these entities make it their business to purchase a home, renovate it and subsequently lease the property. This route would be less stressful, and as what Modest Money mentioned, this will give you a sense of freedom the moment the transaction is completed.

Do Extra Jobs

If you still have time before your debt becomes overdue, then you can work two shifts. Find an extra job and make sure that you save your earnings to pay for your debt. Don’t think of using it for any other purpose than to pay your debt. You will be tempted, especially when the need arises. You simply have to resist the temptation and think of getting out of debt rather than answering your present needs or perhaps, wants.

When you are in debt, you may feel that you can no longer do anything about it. This is not the case because you would always have options in your hands. It’s just a matter of choosing which of these options you will choose, so choose wisely.

Man Signing Loan Application

Credit Unions: Good Choice for a Loan?

Man Signing Loan ApplicationYou have a lot of options if you want to acquire a mortgage loan from lenders here in Ogden. You can choose from a number of banks, credit unions, and private financial institutions. These choices could confuse you as to which lender could help you in applying for a mortgage. Sometimes, the only option for you is a credit union.

What are Credit Unions?

Credit unions are financial entities that deal with savings and loans. They are formed by individuals sharing common ideas to offer loans to qualified individuals and demand deposits from other members.

Low Rates

Credit unions offer lower mortgage rates as well as less or lower fees than banks do. This is possible for credit unions, according to wasatchpeaks.com, since the union’s members are also the customers themselves.

Reliable Provider

With credit unions, you also get to stick with one provider who may be familiar to you. Banks usually employ different companies to collect your payments over the course of your loan. Mortgages from credit unions stay with the same credit union from which you borrowed the money.

Low Credit Acceptance

Low credit scores are not an issue for credit unions. Credit unions still lend loans to people with low credit scores. They can also offer programs for first time home buyers. Of course, before you can qualify for the benefits given by credit unions, you first have to become a member.

Qualify for a Membership

You can find credit unions here in Ogden that offer membership. You simply have to pass the qualifications they have set. Qualifications may range from geographic location, profession, college alumni membership, and religious affiliation. You can also become a credit union member because of the status or affiliations of a family member.

Credit unions are becoming the choice for many people who may not have the necessary qualifications to apply for a bank loan mortgage. According to the Washington Post, banks no longer dominate the mortgage lending market. You can join a credit union now as non-bank alternatives are becoming a popular choice.

Salt Lake City Among top 25 Housing Markets for 2017

Lending Institutions in Salt Lake City Salt Lake City helped Utah to be recognized as one of the best real estate markets in the U.S. in 2016, and possibly for 2017, according to a Zillow report.

The report listed the city and Ogden as one of the top 10 best housing markets for 2016. For this year, a national housing forecast named Salt Lake City among the top 25 markets. Different factors, such as low unemployment, stable income, and property appreciation played significant roles in maintaining not only the city’s well-performing real estate sector, but across Utah as well.

A Place to Call Home

Citycreekmortgage.com and other lending institutions say that finding the best mortgage rate in Salt Lake City will be relatively easy because of its strong housing market. While property appreciation is expected to slow down a bit in 2017, the volume of transactions among first-time millennial home buyers will maintain the sector’s robust performance.

This influx of new buyers will help the state in weathering a potential real estate bubble, which is attributed to an increase in home prices nationwide. In 2016, there were around 15,000 people that purportedly relocated to Utah. Combined with the state’s healthy economic growth, the property market is positioned for yet another good year for housing.

Some of the developing trends that will be driving factors for the market include an increased level of mortgage applications among millennial buyers and a limited inventory that will spur tighter competition for properties on the market.

Better Mortgage Practices

Daren Blomquist, ATTOM Data Solutions senior vice president, said that Utah’s foreclosure rate improved in 2016 mainly because of mortgage lenders’ improved practices after the housing market’s financial crisis.

The passage of legislation such as the Dodd-Frank Act also contributed to fewer people losing their houses to foreclosures, according to Blomquist.

Whether or not you’re planning to buy a home for the first time, mortgage planners in Utah can help you select the best loans and make the application process less tedious.

Car Loan in Ogden

Why is Your Car Loan Always Rejected? Here Are 5 Things That Could Cause This

Car Loan in OgdenWhile auto loans seem to be the easiest loans to get, there are certain things that can lead to rejection, especially if you’re looking for a good interest rate. Getting your car loan approved depends on the information you provide, and the willingness of the car loan lender in Ogden.

Wasatch Peaks Credit Union shares some reasons why your auto loan may get rejected.

Incomplete loan documents

Failure to provide your proof of income, residence address and banking documents could get your car loan rejected. Lenders require complete information to be able to evaluate if you are a good candidate or you are a potential risk. If you don’t provide the necessary documents, you cannot get your loan approved.

Lack of credit or credit history

Absence of credit is another reason lenders deny auto loan applications. If you want to secure a car loan, but you lack a credit history, it would make it difficult for the lender to determine your credit worthiness. In such a case, you’ll need a co-signer to get your loan approved.

A co-signer is someone with a previous record of good history who will sign on the loan with you. If you happen to default, it becomes the co-signer’s responsibility to pay up. Another option would be to build your credit by obtaining a credit card and using it wisely.

Some lenders may approve your application, but you would have to part with a higher interest to compensate for the risk.

Poor credit scores

If you have a credit score of 620 or lower, that score is considered poor. A most lenders’ term that score as risky and will refuse any auto loan application you make. If you happen to get a car loan, you would have to pay a higher interest rate. It is important to understand that every time someone checks your credit report, your score lowers by a point or two. This is mainly because credit agencies see credit checks on your credit as an indication that you are constantly looking for more debt.

These are some of the reasons why your auto loan may get rejected. Contact a car loan Ogden lender to learn more about the requirements needed for you to qualify for the loan.

Real Estate Agent in Edina

Are Real Estate Agents Still Needed When Buying Properties?

Real Estate Agent in EdinaBuying a home can be a tough challenge, as there are many things you need to do and consider to make the best possible purchase. To make the process easier and get the most suitable property, many people hire a certified real estate agent or work with a real estate agency. Here are some reasons you still need hire a real estate agent when finding a house to buy.

They Are Experts in Property Pricing

With experience, real estate agents can set an estimated price of any property the minute they see it. They know how the neighborhood is doing, they know how to compare homes, and they know which properties are overpriced or undervalued. You don’t have to worry about paying more than what you need to.

They Have Access to Home Listings

Home listings are important, so you can easily check out the different Edina, Minnesota homes for sale. A real estate agent has access to a lot of home listings because of their industry connections. They will ask your needs and preferences, check out the home listings, and find the best match to suit your needs. This way, you will definitely exhaust all your options until you find the most suitable property for you.

They Know How to Handle the Paperwork

People who already experienced buying a home know just how much paperwork is necessary throughout the whole process. It can accumulate to a full cabinet or shelf. Get rid of this tiresome paperwork by hiring a real estate agent who knows how to manage the paperwork and get them right. This way, you can be sure that all the necessary boxes are checked and the responses are mailed back correctly and punctually.

These are only some of the many benefits of hiring a real estate agent, and why you still need them. Make sure to hire the best one to make the home buying process go smoothly.

Mortgage Loans in Ogden

3 Negatives About 15-Year Mortgages Many Misguidedly Think as Destructive

Mortgage Loans in OgdenHome loan shopping in Utah has never been just about the mortgage rates in Ogden, Sandy, and Salt Lake City. If you’re an informed borrower, you know that there’s possibly a myriad of other one-times and costs that might come into play before you finally determine the actual value of your loan. But other than these figures, the length of your mortgage is always worth paying attention to.

According to the experts from Wasatchpeaks.com, if the lowest mortgage rates Ogden can offer are still high by your standards, choosing the right term can help you save thousands of dollars in interest alone.

Other than 30-year loans, 15-year mortgages are some of the most common terms you’d find in the market. While they’re a great option for many borrowers, others are quite reluctant to choose them because of their inherent drawbacks — which are often misunderstood.

Higher Monthly Repayment

If your loan term is shorter, your monthly repayment would be naturally higher. When the difference is too big for your comfort — even if your income can cover it without a worry — you may feel that paying this much when you can repay smaller with a 30-year mortgage isn’t a good deal.

This argument would make sense if you really have a tight budget, but to say it’s a bad deal when you can actually save a substantial fortunate in interest is folly.

Fewer Homes to be Qualified For

Looking at your debt-to-income ratio is how lenders qualify for you a mortgage. A higher monthly rate with a 15-year mortgage essentially disqualifies you for some homes, which isn’t necessarily an unpleasant thing. What might be worse is to qualify for more houses in exchange for costlier interest.

Lesser Flexibility on Budget

Fearing you might run out of dispensable income by taking on a bigger monthly mortgage rate is normal. But, financial troubles only happen when you’re not prepared. If you have saved enough rainy day and emergency fund, a 15-year mortgage could do you more good than harm down the road.

Shouldering a higher mortgage repayment when there’s a smaller option is a hard decision to make. Dealing with a relatively heavier financial burden, though, can be justified when you realize how much you can save on interest over the lifetime of your loan.

Mortgage in Utah

Why is it Hard to Break Up with Mortgage Lender?

Mortgage in UtahYou have been paying for your existing mortgage for five years now. The term was favorable, but 60 months later, you’re no longer happy with what you’re currently paying. You know you signed up for an adjustable-rate mortgage, but you didn’t realize the increase would be so substantial and sudden. It caught you off guard, and you almost touched your savings to settle your other bills. That was the turning point: you want a refinance.

Many Americans consider refinancing for different intentions. Some want to benefit from low interest rates; others hope to shorten their term. But despite the sensible reason you may have, why is it so damn hard to call it quits with your current lender? Actually, you’re not alone, and there are plenty of explanations for that.

Emotion

Most people are raised to be polite and sensitive to the feelings of others. You have yet to say it because you’re afraid to hurt your bank loan officer or your agent who recommended the lender to you in the first place. Obviously, there’s something amiss.

Even if you don’t have the heart to upset the cycle, business is business. If you feel your current deal isn’t working out for you, then maybe it’s time to switch. Any self-respecting mortgage professional in the industry would understand.

Cost

When you refinance your mortgage in Utah, Florida, or anywhere in America, you may have to pay certain fees. Your new lender may need to do an appraisal and title search among others as part of their refinancing process.

Is it worth your while to spend on these things now? Well, if your new deal promises to save you hundreds of dollars in the long run, why not?

Hassle

Some people prefer to take the path of least resistance. But should convenience get in your way to keep you from getting a more favorable deal, and put you in a better place financially by going through the trouble of refinancing? Logic says no. And you should too.

These reservations are understandable, but simply working with an experienced broker can help you deal with your situation. With the assistance of mortgage professionals, you might have to break up with your lender personally.