Economics Finance

Even though the VA loan is more lenient than conventional mortgage programs, there are still credit requirements in order to be approved for a VAloan. Most banks require a minimum 620 credit score and 12 months mortgage history with no lates.

Types of imperfections on a credit report that may affect the VAloan approval process:
• Collections
• Late payments
• Judgments

Payment History Factor
Re-payment history is an important factor in getting approved for a VAloan. Your rental and mortgage payment history signify your ability to pay your housing payment and will better qualify you for a VA loan.
If you lack credit history, provide explanations for any of the following:
• If you are a veteran who has been recently discharged and have not been able to establish credit
• Use cash instead of credit on a regular basis for bill paying and purchases
• Veteran has not used credit since reconciliation of bankruptcy and judgments Continue reading ‘Credit Requirements For a VA Loan’ »

The students who do not have a credit record at all find them at the wits’ end quite often while availing a loan. Likewise, the people who might be suffering from bad credit record viz. CCJs, arrears, defaults or insolvency etc have also been deprived of the loaned money. No credit check loan provides one of the most effective solutions to the problems slated above. All you need to do is chart out a list of impressive creditors and among them choose one who might take care of your interests in the best possible way. Then apply for the loan by filling in the online application form which comprises of basic information as in the personal and current financial information.

As the name suggests the no credit check loan doesn’t consider your past credit record while availing a loan. Moreover, the tenants or the people who might not be in a condition to offer collateral due to one reason or the other might also apply for the loans. There is an eligibility criterion which needs to be answered in order to apply for the loan: First, the applicant must be a citizen of USA. Second, the applicant must be at least 18 years in age. Third, the applicant must be regularly employed and earning at least $1000 every month. Fourth, the applicant must possess a valid checking account. Continue reading ‘No Credit Check Loan – Ample Cash But No Credit Checks’ »

If debt consolidation appears to be in your list of how to get rid of your debts, think twice whether if it is worth it. It may seem to be an easy way out by settling your existing debts with a secured loan that gives you a longer repayment period and lower interest. In reality, things may not seem to be as good as it is because you might end up paying more than what you should.

Debt consolidation may sound very appealing because you only need to pay one loan instead of several debts; you get lower interest rates, longer repayment period and you only have one creditor. By shedding the burden off your shoulders with this method, you are actually welcoming potential disasters.

These secured loans are like lurking danger – a little mistake can cause you to lose everything. It is required that debtors pledge properties in order to apply for the loan. If you fail to foot your credit card bills, the worst it can get is you will get blacklisted by the banks. But if you fail to do payments for your secured loan, you might lose the property that you have given up as collateral. Continue reading ‘Debt Consolidation – Is it Worth It?’ »

Let’s face it, nothing in this world is finite and you may not know what is going to happen in the future. When your finances are hit all of a sudden, there is little you can do and you need to think fast as to what to do in order to prevent it from affecting your credit score. There are many options out there that you can use in order to get the money you need right away. Some might be helpful while some others might not be problematic for you later on. Hence, you ought to choose wisely and only go in for the options that will not leave you broke at a later stage.

The key to this is to know all of your options before deciding on something. If the amount you require is pretty less and can be managed without going in for a formal loan, then you should consider going in for a one hour cash advance loan. These loans are the most easy to obtain and you can often get an approval in a relatively short period of time. In fact, many people who go in for these loans are usually given the amount within the hour. Continue reading ‘Getting a One Hour Cash Advance When You Need It’ »

Before, people did not know what calculations the Banks and lenders used in order to asses and approve loan modification programs for those in danger of foreclosure. But because the trend got to an all time high, some patterns can now be seen. This is how the DTIR or the debt to income ratio has been revealed as the primary calculation that the banks used.

So what should a person’s DTIR be in order to be approved for a loan rate modification? Well, basically the optimum debt to income ration percentage is from 31 to 40 percent. What your lender basically does is compute your income versus your various daily expenses. The computed income is not net but is calculated as gross income. If it so happens that at least one third of the income a person gets monthly is spent on unavoidable expenses such as food, clothes, utilities, and mortgage payments, then your loan modification will have a high chance for approval.

In order to compute for an accurate debt to income ratio, the lender will have to get the debtor’s complete monthly budget/expenditure in an itemized format. Such entries as gas, credit card payments, medical bills, food, and others should be listed down. Current pay slips and Tax return slips will be required of the debtor in order to validate the stated income. One can usually dabble with the calculations beforehand so that a general idea can be formed of whether or not the loan modification programs application will be accepted. Continue reading ‘The Role of DTIR in Loan Modification Programs’ »

The credit score is a number that the mortgage lenders use to determine your credit worthiness. It is based on the statistical analysis of your credit report. Equifax, TransUnion and Experian are three major credit bureaus in America that accurately calculate the score. It is the most reasonable, unbiased and reliable underwriting tool available to the mortgage lenders. They use it to take three important decisions viz. the amount of loan that can be given to you, the interest rate that should be charged on the loan amount, and the terms and conditions for paying back the loan. Here are a few things that you can do to bump up your credit score.

• Make all your credit payments on time- The payment history has a dramatic effect on the credit report. All those payments that are not paid within 30 days show up on your report and adversely affect it. The negative marks stay on the report for 7 years. Hence, always pay your bills on time. Also, try to pay more than the minimum payable amount.

• Ensure that your debt load is tightly under your control- Sooner or later, you would have to pay back your debt. If you wind up your debt load quickly, you will become eligible for new loans. Thus, if you owe a significant amount of loan, then stop borrowing and pay back your old loans first. Continue reading ‘Bump Up Your Credit Score’ »

Are you one of the hopefuls in acquiring a motorbike? Many people nowadays have been thinking whether there could be a chance to obtain a motorbike. Although loans are a bit intricate in achieving these days, there is still hope as long as the precise financer is located.

An individual with poor quality of finances is a major issue in acquiring a loan compared to individuals with excellent financial status. On the contrary this does not mean that you will not be able to obtain finances. This just means that you can still be granted with the finances but the charges would be elevated compared to the standard and with greater amount of first fee. The reason for having a greater amount of first fee is because of poor quality finances thus it would mean that when you fail to pay the finances then the lender will take away your motorbike as well as the first fee. Continue reading ‘Can You Get a Motorcycle Loan With Bad Credit? Find Out How!’ »

Everyday I get quite a few questions regarding the American Recovery and Reinvestment Act of 2009 and how it would apply to buying a home using VA financing.

For those of you that don’t know, this act was initially passed as a “tax credit” to first time home buyers up to $8000 dollars.

Many groups like the National Association of Realtors petitioned lawmakers to monetize the tax credit which would allow buyers to use the credit as a form of down payment.

Using a tax credit as down payment mainly benefits FHA borrowers.
With a VA loan, borrowers already have 100% financing in place. Conversely, the FHA requires purchasers to make a 3.5% down payment. In those cases, a monetized tax credit could be used to offset closing costs and related transaction fees.

Technically speaking – VA borrowers could use the tax credit to buy down the VA funding fee.
The traditional VA funding fee is 2.15% for 100% financing. If a veteran puts more than 5% down in the transaction, the VA funding fee drops to 1.25%. For this to work with as little down payment as possible, the home purchase price would have to be $160,000 or LESS. Furthermore, this strategy only makes sense for Veterans intending to put the 5% down regardless of the situation. Otherwise, putting 5% down to save less than 1% in a VA funding fee is crazy. Continue reading ‘Federal Housing Tax Credit and YOUR VA Loan’ »

Many people believe that the VA loan benefit can only be used once, when in fact, a veteran can obtain a VA loan over and over again as long as there is ample entitlement. The reason for this is that VA entitlement can be restored. Entitlement is the amount the VA will guaranty for each veteran – usually about 25 percent of the amount of the maximum loan amount. Entitlement for each veteran can vary depending on past usage and where you live. And, entitlement may need to be restored from a previous loan in order to cover a new loan being sought.

There is more than one way to restore entitlement. One way is for a VA borrower to sell the home and pay off the VA Loan with proceeds from the sale. In this instance VA entitlement will likely be restored.

But, what if a homeowner doesn’t want to sell the property? Can entitlement still be restored? There is a one-time entitlement restoration for each VA borrower for properties retained and loans paid in full. In this scenario, a veteran may have lived in a home long enough to have made all the mortgage payments or may have made extra payments toward principal to shorten the duration of the military home loan. In any case, payment in full will likely mean restoration of entitlement. And, as long as the borrower has not retained a VA loan financed property in the past, he or she can keep the home. Continue reading ‘Restore Your VA Home Loan Entitlement’ »

Researching is very crucial if you are currently considering a VA home loan. And while you’re at it, you can’t help but discover some funny information about getting this type of loan.

Here are the truths behind the five of the most common VA loan myths:

Myth No. 1: I have bankruptcy on my credit report and lenders won’t make a mortgage loan so I have to wait for ten years for the bankruptcy to be removed from my report.

The Truth: This is absolutely not true. What’s good about VA loans is that it has a more lenient credit guideline. It allows 2 years to pass before issuing a mortgage after bankruptcy. Continue reading ‘4 VA Loan Myths Demystified’ »