Tagged : home loans

Found 48 blog entries tagged as "home loans".

If you are looking to buy a home but are worried that you can't afford monthly payments, why not consider a foreclosure as your first home?

A foreclosed home is usually owned by a bank or lender and sold at prices way below its market value. Who knows, you may just hit the jackpot by purchasing a residence that would have been out of your price range. 

Here are the top reasons you should consider foreclosed properties as a first-time buyer.

How Buying a Foreclosure Works

A foreclosure happens when a borrower fails to pay their monthly payments. The lender then exercises his right to seize the property and resell it to recover or reduce its financial losses.

Foreclosed properties are usually put up for auction, which means that lenders

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Buying a second home is a dream come true for many. Whether it’s a retirement home, a vacation home, or your first step toward real estate, investing in a second property is a notable achievement in your portfolio. Like a first-time home purchase, a second property requires a down payment, and many consider using their home equity as seed money for funding the investment.  

The short answer to whether you can use your home equity to buy another home is yes, you can. Let’s look at the whole process to see how this works.

Steps For Getting a Home Equity Loan To Buy Your Second Home

1.) Determine How Much You Need

Before using your equity to buy your second home, determine how much you need for the down payment and closing costs. Next,

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Owning a home is still very much a part of the American dream. However, did you know that non-U.S. citizens can also enjoy this? While there are challenges to homeownership if you are not a citizen, know that lenders are open to extending credit to non-citizen homebuyers.

Let's look at how you can qualify for a home loan even when you are a foreigner residing in the U.S.

Residency Status

Permanent residents with green cards have a better chance of getting a loan since they represent less risk for lenders due to their immigration status, which indicates they are in the country for the long haul.

Nonpermanent residents may encounter more challenges getting approved since their ability to work in the U.S. is tied to their visa. However,

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If you want to know if FHA loans permit cash back to the borrower, then you’re in the right place. Here’s what you need to know about getting cashback on this popular government-backed home loan.

How Cash Back Works With Refinancing

A cash-out refinance is designed to give the borrower more than $500 cashback at closing. The FHA’s cash-out program allows you to cash out a portion of your equity and loan up to 85% of your home’s value.

You can receive less or up to $500 cashback when closing either a “no cash-out” refinance or a streamlined refinance. These refinance programs change your monthly payments with the streamlined program resulting in lower monthly payments or better loan terms.   

Note that in cases where an FHA refinance loan

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When you apply for a loan, your mortgage lender informs you of the maximum amount you can borrow, and this will help you get an idea of how much house you can afford. The question most buyers ask is how they reach this amount and what factors influence their decision?

Read on to understand the most common factors that lenders look at to know how much you can borrow.

1.) Gross Income

Most lenders prefer monthly mortgage payments don’t exceed 28% of your gross monthly income. At this percentage, they estimate a borrower will not stretch their budget too far and pay the loan without missing any payments.

Your gross monthly income is the amount you earn before deductions and other obligations, including social security, taxes, child support,

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When you’re preparing to purchase a home, you have a bevy of decisions to make. Even once you’ve decided on your budget, you’ll still have to decide on your ideal neighborhoods, whether you want to spend time renovating (or even flipping) a home, which school districts you prefer, and so much more.

Still, there’s yet another aspect many first-time homebuyers don’t consider much ahead of time: choosing the best home loan, and the best lender. We get it: home financing simply isn’t as instantly appealing as imagining one’s dream home. Ultimately, though, it’s at least as important as the number of bedrooms and bathrooms in your new abode.

With that in mind, let’s jump into today’s topic: Local vs. National Mortgage Companies, where we’ll compare

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Dreaming about your first home purchase but still be undecided on whether to choose an FHA loan or conventional loan? While both are popular choices for those looking for a low down payment, some differences may make one loan a better option than the other. 

This article will give you an idea of how they differ and give you insight as to which loan may work best in your situation.

What is an FHA loan?

An FHA loan is insured by the Federal Housing Administration. Lenient qualifications make it a good choice for those with lower credit scores and those with limited funds for the down payment. 

What is a Conventional loan?

On the other hand, conventional loans are not insured by a government agency and have qualifying terms set by

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Home renovations can be expensive, and saving up for extensive improvements could take years. Fortunately, you can fast-track your goals with a home improvement loan. 

Home improvement loans allow you to use the equity in your home to fund your home renovation. 

Benefits of a Home Renovation Project

1.) Increased Home Value

Prospective home buyers are willing to spend more if they see a kitchen or bathroom that has been updated or upgraded for convenience and functionality. 

2.) More Space

If your home feels cramped due to your growing family, extra bedrooms or living space can make living in your home comfortable once more. 

3.) Maintenance

Putting off home repairs can result in more considerable expenses down the road.

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When you shop around for a loan, you may encounter the term APR or annual percentage rate. Some people think that interest rates and APRs are the same, but in reality, there are subtle differences between the two.

This article will explain what an APR is and how it's calculated and applied when deciding which loan is best for your goals.

What is APR?

Homebuyers usually look at interest rates attached to loans and pick the ones with the lowest rates. However, the lowest rate doesn't always mean it's the most affordable loan. Relying solely on interest rates to determine affordability ignores other factors like fees attached to the mortgage.

However, when looking at the annual percentage rate, you'll have a more precise and complete

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The popularity of VA loans has soared in recent years, surpassing the 1 million mark in 2020, and is on pace to break that record in 2021. But despite the success of the VA home loan program, there is still some skepticism among prospective homebuyers when it comes to VA loans.

Read the top myths about VA home loans and learn the truth behind them so that you can make the best decision on whether or not a VA home loan is the right option for your specific requirements.  

Myth 1: Certification is a cumbersome process

The first step in the VA home loan application process is getting an official verification from the VA Office. This certification will assert that the veteran, active-duty military member, or spouse has met the basic eligibility

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