?? asked:


wich is the best place ? for someone with bad credit…very bad credit!

we need to refinance our loans …

Diane

Michael Moore asked:


Secured Loan: Least Cost & Maximum Loan Amount

Understand a basic concept of lending-the higher the risk associated with the loan, the costlier the loan would be, and the lower the risk associated with the loan, the cheaper the loan would be. In a secured loan, lender has least risk of loosing his money and therefore lenders offer certain benefit to borrowers such as charging lower rate of interest, which makes your loan cheaper.

What is a secured loan?

You need money now, but have been repeatedly turned down for unsecured personal loans, you may still be able to get the cash you need with a secured bad credit loan. A secured loan is one in which you offer something as ‘collateral’ to guarantee your repayment of the loan. If you don’t repay the loan within a specified period of time, the lender has the right to take possession of the collateral and sell it to recover their money. Secured loans are designed to help those with poor or no credit get the loans that they need. Additionally, because the security deposit (another name for collateral) guarantees that your lender will be able to recover his money - most lenders will extend loans with lower interest rates than the same loan with no security.

Types of Collateral

The most common types of collateral are real estate or automobiles, though it can be anything that is equal or greater value than the amount that you borrow. In most cases, you don’t give up physical possession of your car or home - you can go on driving it or living in it as long as you continue making your payments on the loan. Instead, you sign a note that gives the lender a legal right to the title or the deed to your car or home. If you default on the loan - don’t make the payments that you’ve agree to make - then the lending agency can take possession of your property. If it’s an automobile, it’s commonly called repossession. For real estate, it’s called a foreclosure. In either case, the lending agency has the right to sell your property in order to recover their loan.

While autos and real estate are the most common types of collateral, some lenders will lend money with jewelry, coins or other collectibles or other types of vehicles. Most often, if you secure a loan with an item like jewelry or collectibles, the lending agency will take possession of the item until the loan is repaid.

Secured Loan: Amount & Cost

Loan amount to be offered is calculated by lenders on various parameters which include your monthly income, expense, saving if any, items on which you spend the most etc. They may also take note of whether you are paying monthly installments for any other loan or loans etc. Based on all these factors, loan amount is decvided. But the loan amount would certainly be more than the amount you would have got in case of unsecured loan.

Similarly, rate of interest to be charged is based on various factors and associate risk, if any. However, since it is a secured loan, it has the minimum risk. Since it has least risk, lender also pass on a part of benefit to borrowers in terms of charging lower rate of interest than the rate of interest you would have paid in case of unsecured loan. The lower rate of interest makes your loan cheaper.

Usually, duration of loan is mutually decided between borrower and lender by taking into account loan amount and monthly paying capacity of borrower.

You may have a question, why secured loan has least risk-because, when you offer any of your asset as security against the loan taken. In this case, if you pay regularly and close the loan in time, the ownership of the asset offered as security remains with you. However, if you do not may installments in time, make partial payment or if you do not pay at all, the ownership of the asset offered as security goes to lender, who has the option of selling the asset to recover his finance.

How to find a secured loan if you have bad credit

Many lenders - banks in particular - don’t deal in any sort of secured loan other than second mortgages. Other institutions deal almost exclusively in secured loans. Finance companies that deal in secured loans can be found in your phone book, newspaper, and increasingly, online. Shop around and compare interest rates on loans and the terms of repayment with several different lenders. You’ll find many internet sites that let you request a loan rate quote from multiple lenders at once.

Once you’ve submitted a request for a loan quote, you’ll be contacted by representatives from several companies and can get a good idea of what each can offer you in terms of interest and other finance charges and fees. Choose the best one for your needs, and apply for the loan. It’s that easy.

To conclude a secured loan is a category of loan which you get by offering any of your asset as security against loan taken. Secured loan are usually cheap and provide the maximum loan amount, which a borrower can get based on his profile. However, cheap loan does not mean you go on taking as much loan as possible, because ultimately you have to return the whole amount else you loose ownership of the asset you offered as loan.



Ruth

Fastcash loan asked:


Log Book loans were put in place as an innovator of the whole vehicle secured financing shebang and they have been very popular since then. Now, people are wondering what the hell or more politely what is a book loan?

The condition that must be met in a logbook that is ready to take the borrower to the logbook with the lender until the loan was repaid in full.

A log book is the document that is issued by the Driver and Vehicle Licensing Agency (DVLA). The logbook has several entries on the vehicle on the mark current registration number or VIN chassis, and details of the holder of the logbook.

The Log Book loans are the easiest way to obtain money as a logbook to maintain security. As a guarantee for loans logbook is the logbook of your car. Anyone who has registered in the logbook lending their name is eligible for logbook loans. According to the lender and the vehicle, the amount of logbook loans can stretch to larger amounts.

For loans approved the logbook of the car or vehicle should ideally be less than 8 years. With the logbook, which must be on behalf of the borrower, a regular income and there should be no financial claims on the vehicle. All taxes and insurance on the vehicle must be paid in full before the vehicle logbook is promised to loan book.

While the car or vehicle may continue to be in possession of the borrower is that the logbook kept by the vendor loan for the period during which loan is repaid. However, the borrower can not save himself from the obligation to keep the vehicle in good condition.

The logbook loans are secured on the logbook of the vehicle of the borrower ready logbook; it does not involve credit check. So, whatever your credit rating, you need not worry, you can get a logbook loan if you meet the above criteria. Problem cases such as those faced CCJs, bankruptcy can also ask for the loan.

You can book loan for the purchase of goods and consumer durables, to buy a washing machine or renovate your home, investments in tax savings, higher education, vacations, medical needs Emergency … In short, for any legal use declared.



Bryan

Car Loans asked:


When it comes down to it in today’s world not many people want to go out there not knowing exactly what the process encompasses when they are trying to buy themselves a car either for their own personal luxury or for them to get from place to place with.  You really need to make sure that you have all the knowledge that goes with buying a car already in your head or else you risk ending up having to spend a lot more money then you should be in the first place.  In order for you to make sure that you are going to get the best possible deal on a Guaranteed Auto Loan you are going to want to make sure that you get car finance before you ever walk into a car dealerships car lot.

 

A Car Finance Loans is simply a way for you to go about paying for the car that you are looking to purchase.  You are going to take out a car loan from a financial lending company and bring it to the car dealership with you.  The reason for going about doing this is because the moment that you bring your own Used Car Finance to a car dealership you are then considered what is known as any cash buyer in that you can buy the car pretty much out right from them just as if you are paying for it in cash in the first place.  You can then you should car finance in order to either buy the car that you want from them or you can also use it to lease a car through them.

 

 If you happen to have gone through the process of buying a car in your past then you more than likely know how a car salesman is going to work with you.  The first thing that they would go about doing is checking your credit score through their third party financing company before they ever begin to negotiate on a fair price for the car that you are looking to purchase a car finance with you.  The moment they go about doing this they are going to then offer you a supposedly special finance deals in any attempt to make you buy the car and finance it through their own third party financing car finance solutions.  This is something that you are going to want to avoid like the plague and is going to end up making you pay a lot more money down the line in the future on the car that you desire simply because you did not take the time and energy to do all the research that is required before getting yourself a car finance that you need.



Lloyd

Kristin Abouelata - Home Loans asked:


In the mid 1990’s, the mortgage industry saw the credit score and its predictive power to assess a borrower’s ability to repay a mortgage step into the limelight as one of the most indicative factors for loan approval. After conducting statistical test after statistical test, Fannie, Freddie and Ginnie, the 3 big lending institutions, mandated that the credit score should be used in conjunction with manual underwriting to assess loan approval. Not too long after, automated underwriting systems (AUS) were developed that expedited and streamlined the underwriting process even further for lenders. A loan officer today simply inputs a borrower’s key information into the preferred underwriting automatic engine, such as his/her credit score, income, amount being borrowed, cash reserves, employment and housing history, and the value of the property. A response is returned by the underwriting engine recommending approval or denial for the loan.

If your loan receives a denial from an AUS, the buck doesn’t necessarily stop there. Life happens to people, and oftentimes it’s going to take a real live person understanding the nuances of a file to make an underwriting decision. That’s when your lender may suggest submitting your file to underwriting for a manual review. After all, not everything in life can be automatic, right?

A perfect scenario for a manually underwritten file would be someone who has no credit scores. No credit scores? Yes, it is possible. I’ve had customers who, being old school and always having paid for everything in cash, had never established traditional credit lines that reported to credit reporting bureaus. In a case such as this one, I had to submit non-traditional lines of credit to underwriting, something a machine can’t assess. This means I had my customer bring in bills he had paid on time for the past year to create a credit history. Typical ones used are car insurance, utility bills, cell phone bills and cable bills. You can expect to have to provide 3-4 different trade lines if you haven’t established a traditional credit history and score.

“The most typical reason we see a file submitted to us for manual underwriting is for either no credit score or an error reported on a credit report,” reflects Patricia Haynes, onsite Government Underwriter at Mortgage Investors Group. “For instance a judgement that doesn’t really belong to the borrower. Maybe it’s really Dad’s judgement reflected on the son’s report because Junior and Dad have the same name. That’s when I can overwrite an AUS decision because I have the documentation to support my decision to do so in front of me.”

Another very common reason to submit a loan for a manual underwrite is when your customer’s credit score is below 620 and gets an AUS denial. If this is the case with your loan, be prepared to provide more than average documentation about your credit history, as well as written explanations as to why your credit score has suffered recently. Maybe two years ago you had a financial meltdown due to a medical illness, but in the last twelve months, you can prove you are back on your game and have been repaying debt. However, your credit scores haven’t exactly caught up with your actions. An underwriter is going to piece together the different aspects of your file and see if it makes sense. Your home lender should be able to review your file and guide you as to what documentation an underwriter will want from you to grant you loan approval.

Naturally, if your credit score is really low and you have very little explanation for your state of credit affairs other than you failed to pay your bills on time, don’t hold your breath for loan approval. An underwriter can see through smoke and mirrors. After looking at files as long as they have, they can basically sniff out a loan that has merit from the ones that are too risky.

So, even as our world gets more and more automated every day, it’s nice to know that you can’t replace genuine common sense, even in the mortgage industry. And it’s nice to know that you can plead your case for credit worthiness to a real live human being.



Zachary

Christopher Hurn asked:


Discover the “Forgotten” SBA Program Worthy of another Look

Much has been written on these pages in the past two years about a little understood and even less used commercial real estate loan program called the 504. As our lending firm was the first and is still the only nationwide commercial lender to exclusively focus on only this loan product, I’d like to succinctly put to rest some of the more common misconceptions about this terrific loan product. Rather than waste anymore ink, let’s get right to issue at hand . . .

Who Uses It?

The 504 loan is for commercial property owner-users. It is not an investment real estate loan product per se. Borrowers of 504 loans must occupy at least a simple majority (or no less than 51%) of the commercial property within the next year in order to qualify. Two operating companies can come together to form an Eligible Passive Concern (EPC) (otherwise known as a Real Estate Holding Company, typically as an LLC or LP), however, to take title to the commercial property. In other words, a 504 loan doesn’t have to be just one small business owner purchasing his commercial property. It could be a physician and an accountant each utilizing 3,000 square feet in a 10,000 square feet office building (at 6,000 total square feet in their LLC, they would occupy 60% and be eligible) for example. Additionally, at least 51% of the total ownership of the Operating company(ies) and EPC must be comprised of U.S. citizens or resident legal aliens (those considered to be Legal Permanent Residents) to qualify.

There are no revenue restrictions or ceilings for 504 loans, but there are three financial eligibility standards unique to them: operating company(ies’) tangible business net worth cannot exceed $7 million; operating company(ies’) net income cannot average more than $2.5 million during the previous two calendar years; and the guarantors/principals’ personal, non-retirement, unencumbered liquid assets cannot exceed the proposed project size. These three criteria usually do not disqualify the typical, privately-held small to mid-sized business owner; only the absolute largest ones get tripped-up on these. Last fiscal year (October 1, 2004 to September 30, 2005), nearly 8,000 business owners used 504 loans for over $11 billion in total project costs representing a recent five-year growth rate in the program of 22% year-over-year.

Why Use It?

These loans are structured with a conventional mortgage (or first trust-deed) for 50 percent of the total project costs (inclusive of: land and existing building; hard construction/renovation costs; furniture, fixtures and equipment [FF&E]; soft costs; and closing costs) combined with a government-guaranteed bond for 40 percent. The remaining 10 percent is the borrowers’ equity and is usually a third to half as much as traditional lenders require. This lower equity requirement lowers the risk for small business owners as opposed to lowering a lender’s risk profile with more capital injected into the project like with ordinary commercial lending. It also allows the small business owner to better utilize their hard-earned capital, while still getting all of the wealth-creating benefits commercial property ownership provides.

Unlike most commercial bank deals, these loans are meant to finance total project costs as opposed to a percentage of the appraised value or purchase price, whichever is less. The first mortgage (or trust-deed) is typically a fully amortizing, 25-year term at market rates, while the second mortgage (or trust-deed) is a 20-year term, but with the interest rate fixed for the entire time at below-market rates. The second mortgage (trust-deed) on 504 loans is guaranteed by the U.S. Small Business Administration (SBA) and is, contrary to popular belief about SBA loan programs, the cheapest money available for typical small business owners. For most of the past two years, the SBA bond rate hovered near six percent fixed for 20 years, which is an incredible deal for any small to mid-sized business owner and very tough to beat. Not only do these loans provide better cash flow for borrowers (by borrowing at better rates and terms), but they also provide the highest cash-on-cash return available in the commercial-mortgage industry which is a financial metric used by most successful real estate investors. Furthermore, these loans are assumable should borrowers decide to sell their property in the future, but a better strategy for most small business owners would be to sell their operating company while keeping their EPC and cashing rent checks long into their retirement.

Why You May Not Know Much about These Loans?

Many bankers and brokers don’t like to offer 504’s because they fundamentally are smaller loan amounts for the bank (typically only 50% first mortgages or trust-deeds versus the common 80%), which means a banker has to work that much harder to bring in more assets and the smaller loan amounts also hit the typical commercial loan officer right in the pocketbook. They would rather discuss the SBA’s more notorious 7(a) loan program, which has a well-established, if not egregiously well-paying secondary market (due to Prime-based, floating rate pricing) already in place, when the issue of low down-payment commercial loans comes up. When you couple those two reasons with the fact that these 504 loans take more effort and skill only on the part of the lender, it’s no wonder this loan product has only recently started to catch fire in the marketplace.

So what are Some Common Questions about These Loans?

Isn’t There Tons of Paperwork Involved?

This was certainly the case years ago, but it is no more. With the advent of more and more specialty lenders and the recent focus on streamlining the SBA application process, 504 loans are no more involved than most ordinary commercial loans. While the documentation is specific and detailed, most small business owners are ably organized and prepared when the alternative is to pay two to three points higher in interest rates with no documentation or stated income commercial loans.

Aren’t There Extra Fees Involved?

When all closing costs are considered, 504 loans usually average about 25 to 50 basis points more in total loan fees on an average sized transaction. With stronger borrowers (i.e. better debt service coverage ratios [DSCR], higher personal liquidity, and/or better personal credit scores), these fees can usually be negotiated lower. Most small business owners utilizing 504 loans are willing to pay slightly higher fees, however, in order to receive longer-term, below-market fixed interest rates on nearly half of their deal, while receiving the highest cash-on-cash return from their property. This is exactly the reason my business partner and I chose a 504 loan when plenty of alternatives were available to us. That’s right – we actually have a 504 loan and have been in the shoes of 504 loan borrowers, so I have first-hand experience of using the loan product that we offer.

Don’t These Loans Take 3 or 4 Months to Close?

This is another old relic of the past regarding these SBA loans. Our quickest 504 loan to date took only 35 days from the first phone call to the closing table, and the commercial appraiser ate-up most of those days while we waited. We’ve done countless others in much less than the typical 60 day commercial real estate contract. If a lender claims they need nearly four months to fund a 504 loan, then perhaps you should look elsewhere. Twenty-four to forty-eight hour pre-approvals and four or five-day commitments are becoming the norm with most specialized SBA lenders.

Aren’t These Loans for Start-ups or Low DSCR Borrowers?

Plenty of 504 loans are approved with start-up borrowers and/or borrowers that don’t have DSCR’s greater than 1.25 times. While it is true that most 504 loans are for more credit-worthy (usually bankable) borrowers, this is not a necessary condition. Frequently, 504 loan borrowers with lots of experience in a given industry, but no actual ownership experience, will have an easier time securing a 504 loan than a conventional bank loan. Projections-based deals and franchised deals are often great candidates for 504 loans when the project involves commercial property. There are other SBA loan programs that may be a better fit for pure start-ups, as 504 loans do not allow for the financing of working capital, but those other SBA loans can often be used in conjunction with SBA 504 loans.

Doesn’t a Borrower have to Pledge their House as Collateral?

Only some lenders require this for 504 loans, and it is increasingly rare. Other SBA loans, on the other hand, must be “fully collateralized” in order to maintain their government-guarantee which is where this generalization comes from. Most 504 loans only secure the commercial property and/or equipment that are financed as part of the 504 loan project.

What if a Borrower has a “Checkered Past”?

Misdemeanors and/or felonies are not in and of themselves, reasons to disqualify someone from getting a 504 loan. There is an added process that often lengthens the time to closing, but the SBA usually approves borrowers with misdemeanors or borrowers with felonies that occurred in the distant past. Defaulting on previous government-guaranteed financing, however, will preclude someone from securing a 504 loan or any other SBA loan. Personal bankruptcies that occurred more than seven years ago usually will not prevent a 504 loan approval, assuming the present-day underwriting variables look promising, but more current bankruptcies are examined subjectively and frequently won’t be approved.

How do you determine who to Call for a 504 Loan?

If you visit a lender’s website to do some due diligence on them, make sure they at least list and/or mention 504 loans, as a means by which you might gauge their competency with these loans. Any lender can say they do 504 loans, but it is far better to work with those that can demonstrate their past experiences with the product, as well as detail their commitment to it on a go-forward basis. Like most things delivered better by specialists, it isn’t usually a question of if a regular lender can provide a 504 loan; it is a question of how well they can provide it. Choose wisely.



Keith

Sadhana Dhanyal asked:


Need money to fulfill any of your personal need? 100% guaranteed personal loan will ensure one gets the required amount of money for all the personal needs. These loans can be sued for any purpose. These loans guarantee 100 per cent approval. One can use the loan for either planning a vacation, buy anew car, pay back multiple debts, etc.

There is no restriction on the usage of loans. You can use these loans for either debt consolidation, meet educational needs, wedding purpose, home renovation, planning holiday or pay urgent medial bills. There is no restriction on the usage of the loan. Anybody can apply for these loans. Be it a tenant, homeowner, or a poor credit scorer. These loans will help you fulfill any of your personal needs at ease.

A borrower can also look online to avail these loans quickly. Even bad credit scorers can benefit from these loans. The greatest advantage of these loans is that these loans are quickly approved by borrowers. This enables a borrower have quick cash. There is no credit check performed on these loans. This type of loan is suitable for bad credit scorers the most. A borrower must not be bankrupt, to avail the loans easily.

Now, a borrower with a poor credit score need not worry anymore about securing money easily. These loans will ensure that one gets the required amount of money soon. By making timely payment, a borrower can also rebuild the damage credit score quickly.

Guaranteed Personal Loan

If you are a borrower who is constantly being turned down by lenders and are in need of money to meet some of the personal needs, you can turn to guaranteed personal loan. Any kind of borrower can make use of these loans. A bad credit scores or poor credit – both can benefit this loan.

A borrower can make use of a guaranteed personal loan as a short-term financial management tool to start reworking on the credit score. A favourable credit score can help one avail loan fast. Favourable credit score ensures not only financial stability but also faster approval of loans. Guaranteed personal loans ensure utmost satisfaction amongst borrowers. A bad credit score can create problems in availing loans. However, with these loans, one can easily fulfill any of the personal needs.

Remortgage Loan with Poor Credit!

A borrower may wonder how to secure a remortgage loan with a bad credit score. It is not that difficult to secure these loans. Remortgage loan with poor credit allows a borrower get the required amount of money despite being on bad credit.

Bad credit scorers can easily rebuild the damaged credit score. These loans allow a borrower also rebuild the damaged credit score quickly. A borrower can borrow an amount against the value of the home and make monthly repayments at an agreed rate.



Marion

Kristin Abouelata - Home Loans asked:


With the current “mortgage meltdown” we hear so much about these days, your average consumer thinks that the days of 100% financing have gone by the wayside. True, you are hard pressed these days to find a bank or lender that will want to carry a second mortgage that combined with a first mortgage adds up to 100% financing. That’s because if there is a default, sitting in second lien position is particularly dicey. Too much risk is involved. And since, in recent history, that scenario of the 80/20 combo was the most common 100% financing vehicle available to a certain group of consumers (non first time homebuyers), there’s a misconception out there that 100% options are all but dried up.

But, a-ha! There is hope for someone who has great credit but prefers to invest his/her assets elsewhere when rates are so low. It’s called the Flex 100. And it can apply to purchases and refinance transactions.

I heard an analyst mention on television the other day that mortgage money is so cheap right now it’s like a sale at Macy’s. That made me chuckle, but it’s true. In which case, why not invest your money elsewhere if you qualify for 100% financing. After all, the homes are still appreciating in most areas, but not at the stellar rate we saw in the past.

The Flex 100 requires you to invest $500 of your own cash towards the transaction, so I guess it’s technically not 100% financing, but it’s pretty darn close. And no, you don’t have to be buying your first home to get this deal. You can actually have owned a home in the past three years! However, it does apply to financing your primary residence only. You can’t get this deal for that nice cabin in Gatlinburg you want to use on the weekends or for that great rental down the street you think you can get a good deal on. You’ve got to live in the house to qualify for this financing.

But you can do a refinance, as long as it’s not a “cash-out,” meaning you’re not paying off debt or taking equity out of the property. It must be a rate term refinance only. However, you can pay off that second mortgage or home equity line of credit you hate, IF you obtained that 2nd lien mortgage when you got your first mortgage (a piggy back closing, we call it). Or to make it clearer, you originally had that 80/20 combo mentioned earlier. If you got that home equity mortgage a month or two after your initial closing to build a deck or payoff a credit card, than it that won’t work for a Flex 100 refinance.

What about your credit score? Well, it will affect the price you get, but there is no “minimum” credit score required for this program. You just have to get an approval through the automated underwriting system required. But be realistic – if you’ve got “iffy” credit, you probably won’t get an approval. A borrower with a credit score below a 620 would probably have to have a low loan to value or debt to income ratio for a chance of an approval.

A Flex 100 may or may not make sense for you. But hey, at least you know it’s an option. Your lender should be able to help you determine if this opportunity to flex your mortgage muscle makes sense for you.



Kim

Sadhana Dhanyal asked:


Owing a car is not that difficult these days. There are many kinds of loans available these days for various kinds of borrowers. Owing a car is no more a luxury now. With the multitude of car loans available, a borrower can choose from a wide variety of loans.

If a person is looking for loans urgently, one can make use of online used car loan at affordable rate. This type of loans is available at a lower rat of interest as compared to other kinds of lenders. By looking online, one can save a substantial amount of time and money too.

Any kind of borrower can make use of these loans. Be it a good credit score or a bad credit scorer. One can save the time of running around to secure a loan. One need not pay any fees too for this service. The whole process of loan approval is a very fast. A borrower can also get a car loan at a lower rate of interest.

The traditional way of securing loan is quite complicated and time consuming. This involves a lot of running around. It is not likely that your loans may be approved on time. Hence, the online mode of seeking loans is very beneficial. A team of financial experts can help one get online used car loan at affordable rate. Used car loans are much cheaper.

These loans are most suitable for those who don’t have sufficient money to buy a new car or those who change cars often. Used car loans can help you save a substantial amount of money. Looking online can help one get a loan fast and with minimum hassles. These loans are cheaper than bank loans and are readily approved. Moreover, a borrower can choose from a wide variety of loans too.

There are many ways of availing used car loan at affordable rate. One such method is looking online. This is the easiest way of securing loans fast. One can choose from a wide variety of loans online. One is assured of a fair deal on the loan. However, before proceeding with a used car loan, a borrower must ensure that the car was checked by a car technician before being lent.

How to Avail Bad Credit Car Loan?

Bad credit scorers need not fear being turned down by lenders if they wish to avail loans to buy a car! Such borrowers can make use of bad credit car loan. These loans are specifically for those with credit problems. Those having CCJs, IVA’s, bankruptcy, defaults, arrears, can benefit from these loans. Bad credit car loans are available in two forms- secured and unsecured. To avail secured car loan, one needs to pledge some valuable asset as collateral against the loan.



Roberta

Xada asked:


I’m in a bind and I need some money to pay some of my bills. Does anyone know where I could get a loan where they don’t require any bank information?
I do have a bank account. I just don’t feel comfortable giving out that information online.

Lillie