One of the popular choices for those who need it is nothing other than the simple and basic FHA mortgage program. Way back in the 1930’s, the FHA was already the best option for low income families as well as those who were borrowing money for the very first time. But as the years passed, a lot of additions and expansions to the FHA program envelopes almost all types of people who need to borrow money.
Right now, there are roughly 30 million clients. This is undeniable proof that applying for their loan programs is really beneficial. So what are the advantages of applying for this federal program?
- This type of loan will give you leeway to purchase a house with a miniscule down payment. Future homeowners will only need to shell out a down payment worth 3% of their entire home purchase value. There are also some instances when the down payment can be given in gift form. One must be aware though that aside from the down payment amounts there are usually other fees to take care of such as insurance and processing. (more…)
If you’ve got a lot of debt, you may be thinking that bankruptcy is your only option. But, don’t file that bankruptcy petition just yet. These six steps may be all you need to stay out of bankruptcy and get your finances under control.
1. Write out all your monthly expenses, in detail.
Do you have a mortgage or an auto note? If so, what is your interest rate? How much are your monthly payments? What is the outstanding balance on those loans? List them, in full detail.
Next, write down all your necessary monthly expenses. These expenses include things like electricity, telephone, insurance, food, etc. You should know how much you spend each month on all of these items.
After surveying your necessary monthly expenses, take a look at your discretionary monthly expenses. Discretionary expenses are those things that are optional. You don’t have to have them. But, you may enjoy them. Representative discretionary expenses include entertainment, eating out, club memberships and any impulse buys you make in a given month. (more…)
The Bankruptcy Code gives homeowners facing foreclosure the right to cure the default any time up until the foreclosure sale process is completed. The key word here is “process,” and state law determines what the process is for a valid auction or sheriff sale. Until this has been completed, homeowners who file bankruptcy can use the federal laws for another chance to save their home and cure the default.
The Bankruptcy Code itself does not even determine when a house is considered “sold” for the purposes of a valid foreclosure sale. This means that state foreclosure laws will most likely be used in cases where borrowers attempt to pay off a loan through bankruptcy, even after a sheriff sale. Another aspect that works in favor of homeowners is that many states require an auction to be confirmed before it is valid.
This means that homeowners who file bankruptcy have rights during the foreclosure process that are safeguarded at least through the sale of the property. These rights may be guaranteed for even longer than that, depending on how the confirmation process of the auction works after the home has been sold by the courts. If there had been a bankruptcy, the lender may not just be able to sell the house and take it over right away.
Redemption rights may extend the rights of the borrowers even longer. In states that have a redemption period, the borrowers are given a set period of time in which to cure the default even after the home has been auctioned at a trustee sale. But for those homeowners in states where a redemption period is not available, filing for bankruptcy may create a pseudo-redemption period through the right to cure.
However, rulings by state courts on this issue may determine how long this extra right to cure lasts. Some courts have ruled that the foreclosure sale process is completed once the gavel falls at the auction. In these cases, filing bankruptcy will not extend the time to cure the default for any significant period of time. Once the auction has been conducted, the sale process is complete, and the right to cure has expired (more…)
There are many tax credits available to Texans for First Time Homebuyers. By definition, a first time homebuyer under federal standards is anyone who has not purchased a home before, or who has not been an owner of record on a home for the past three years. Under the federal stimulus package, a homebuyer may be eligible for up to a $8000 tax credit if they close and fund on a purchase as a first time homebuyer by November 30, 2009. This is not a loan- nor does it have to be repaid. There is a formula that must be applied and income does come into play for some higher income individuals which could lower the tax credit. There are no restrictions on what the homebuyer can do with the money, whatsoever. Use the funds to pay down other debt, put into savings, take a vacation, to buy furniture for your new home, or even to use as a down payment.
The State of Texas has just announced a special program where a portion of the $8000 tax credit can be used for a down payment on a purchase by advancing a portion of the tax credit at time of closing. There are some fees payable to the State of Texas and you have to go through an approved lender in order to access this program. Legacy Financial, Inc. is an approved lender with the State of Texas. The “loan” must be repaid within 90 days of closing or it becomes a second lien on the home and begins to accrue interest at 10%. (more…)
The Federal Tax Code was written by our friends in Government. Most of whom are business owners or Married to one. It is no surprise that owning a business and more specifically a home-based business entitles one to certain tax advantages. Being able to deduct a portion of your mortgage, rent and other monthly expenses comes with the territory.
This luxury does come with some headaches. Possibly the most frustrating time for independent distributors in a Network Marketing company is the dreaded tax season. All of a sudden an entire year of little or no planning and spotty record keeping by these work at home professionals can catch up to them. The result is a mountain of stress, paperwork and accountant bills.
A possible solution is personal finance software such as Quicken or Microsoft Money. Experience will prove these do little to lesson the blow. Although useful for small to medium sized business, these programs were not designed for a home-based-businesses. Many home business owners find they are too complex, difficult to learn and filled with many features that are not needed. (more…)
If you are like most people you are trying to do whatever you can to lower your expenses. As gas prices and movies go up in price along with everything else we are always trying to cut at least one of our bills and save some money. Well, I have a way for you to possibly save a couple of hundred bucks a year if not more and it doesn’t involve cutting out your morning coffee or anything drastic like cutting your heat off in the winter.
No, you can reduce one of your largest expenses by simply signing your name if you are a homeowner. What I am talking about is your property taxes. Each year you must pay your property taxes whether it is escrowed thru your mortgage company or you pay it out of pocket yourself. The amount of property taxes you must pay each year is set by the county’s tax assessor’s office. They decide how much you will pay based on what your neighbors are paying and what amenities your home has compared to theirs.
For example, if you have a 1200 square foot house and your neighbor’s house is 1400 square feet then in theory, your neighbor’s taxes should be higher. But if your in cook county this isn’t always the case. So normally what happens is if you believe that you have a higher than normal tax bill you are able to challenge the assessment that is used to figure out your tax bill. If the board of review finds that you are paying more than your fair share of taxes then they will lower your assessment and thereby lower your tax bill. If they find out that your taxes are not lower than everyone else they will not reassess your property and your taxes will not be changed. (more…)
Tax deductions are what gets you bigger refunds. If you itemize your tax return you need to have a good idea of what you can deduct. This checklist covers most of the major tax deductions.
Tax Deduction checklist
* Form 1098, or your mortgage statement.
* Form 1098 if you purchased a home in previous tax year, and prior tax return if you refinanced in prior year and are deducting points on that loan over its life,
* Investment interest expense: Brokers’ statements showing any margin interest paid and loan statements for loans taken out to purchase investments
* Losses due to theft etc. with description of property and insurance reports showing reimbursement or any cancelled checks showing value of property.
* Charitable donations: bills receipts or cancelled checks for cash donations, mileage records for charitable purposes, receipts from charitable agency with estimated value in the case of property donations, prior years’ tax returns for any unused charitable contributions. (more…)
Expectations are running high in the equity release market that home reversions plans could become a more popular choice in view of the current housing & economic climate.
It is common knowledge that in periods of low house price inflation, home reversions can become the favourable option as opposed to the roll-up lifetime mortgage.
The two comparable equity release schemes can experience different fortunes in such a static housing climate.
In summary, a home reversion scheme involves selling a percentage of the value of the property to the reversion company in exchange for a lease for life.
Therefore, in times of low house price growth the reversion company will not make as greater profit, as they will not benefit from the property value increasing.
In contrast, a roll-up lifetime mortgage in times of low house price inflation would suffer. Due to the nature of the plan & with the annual compounding of the interest, it would result in the ever increasing debt catching up with the property value quicker than if the house price was increasing. (more…)
The declaration of bankruptcy under Chapter 7 discharges the bankrupt person from honouring all debts. But under Chapter 13 it is not so. The debts are required to be paid within a fixed time frame and it is done under court supervision.
A bankrupt person under Chapter 13 bankruptcy can obtain a bankruptcy equity home loan even though he may not be an ideal client for a lender. A sub-prime lender will refinance your home with a substantial amount where it would normally be difficult to have access to a mortgage in a conventional manner. Those who have bad credit ratings benefit from large amounts of money in the form of loans from these sub-prime lenders who are mostly interested in the property rather than the bad credit, although they may require to know your capacity to repay. The lender charges a high rate of interest on these loans as his service is also charged for. (more…)
Many people have been experiencing difficulties in obtaining loans. It is not a surprise since the whole mortgage industry is on a credit crunch. All lenders are limiting loan approvals and mortgage requirements are getting severe. Because of this, it has made many unqualified borrowers in the industry.
If this were to continue, more and more people would have a hard time pursuing home ownership. Almost all people are depending on conventional loans for home buying and their only chance to afford the purchase is being hindered by something out of their control.
The good news is people have found other means to mobilize their home buying deals without having to apply for conventional loans. Even people with poor credit can buy a house when engaging to this option. This method is known as Alternative Financing.
Alternative financing has had growing popularity in the market. While you may not be aware of this, it has been going on for quite some time. Alternative financing have many faces. If you want to learn more about them, the following will give you an idea on what it is all about: (more…)
