Category: Home loan

If you currently have bad credit, you may think that finding a personal loan is impossible.  Not so! All you have to do is find a lender who is willing to take the necessary risk to lend to you.  This means however, that you should look for a lender that is willing to be transparent where fees and rates is concerned.  The lender should also have flexible terms and should be willing to look at a lot more than just your credit score.  It is important that as you do your search you remain keen to avoid lenders who may be predatory, as well as a variety of scams that only want to trap you so that you remain in debt.

One of the things that you need to work on a personal level is your financial habits.  If they are bad habits, then taking a loan may not necessarily solve your problems.  On the other hand though, taking bad credit personal loans can be of help to those who have changed their financial habits.  In fact, if used in the right way, this can be a wonderful tool for you to get back on your feet again financially.  It will allow you to have some space within your budget which can be a breath of fresh air.

One thing you have to know is that your credit score will have a direct effect on the interest rates you get.  Bad credit affects the perception of the bank where your credit worthiness and ability to pay back is concerned.  In order to reduce the risk on their end, the lenders may cap your loan at a lower amount and in some instances you may even have to provide some collateral as security.  If you are looking to rebuild your credit, you will be happy to find somewhere to begin and this is a great place to start again.

Another thing you are likely to see is interest rates that are quite high.  Many times you will find that the interest rate sits at more than 20%.  You need to look at that interest critically and decide whether or not you can afford to pay it.  You can be sure that as you improve your credit score over time, you will be able to get better rates.  It is common to reward people with good credit with lower rates.  The best plan is to take small loans and pay them off so that you can improve your credit score and then with time, when you can qualify for better rates, you go ahead and take a bigger loan then.

Bad credit personal loans are therefore available and can be used to improve your credit score if you will pay them faithfully on time.  Many times they will be in the form of a payday loan, will be capped at a particular amount, will be short term and will have higher interest.  The key thing that the lender will consider will be your income and not your credit score at this level.

Owning a home is a fond dream for every Indian citizen. Hunting for a house that fits within their budget, buying a plot and constructing the house according to their own plan, buying resale homes – whatever the purpose, a Home Loan is the basic requirement to fulfil their dream.

Let’s take a look at the different types of Home Loans in india.

Land Purchase Loans

These are loans taken to buy a plot of land to construct your own house. These loans can also be used to buy a land for investment purposes rather than house construction. You can get upto 85% of the land cost as loan, and the loan tenure can be up to 15 years. There are no tax benefits attached to this type of Home Loan.

Home Purchase Loan

This is the most common type of Home Loan. You apply for this loan to buy an under-construction, ready-to-occupy, or a resale house. Here too, upto 85% of the cost can be sanctioned as loan. The tenure for these loans can be as long as 30 years. There are many tax benefits that you can avail on this type of loan. These Home Loans can be availed on either fixed or floating rates of interest.

Home Construction Loan

This type of loan differs a little from regular Home Loans. Along with the basic documents required for Home Loan, you need to submit papers relating to your plot of land on which you want to construct the house. This land should have been purchased within the previous year for its cost to be included in the overall construction cost. If the land has been purchased more than a year ago, its cost would not be included in the loan. You also need to submit a plan for the house and a rough estimate of the cost of construction.

Home Expansion Loans

You can get around 70 to 80% of the estimated cost for the new additions to your home as loan, either on a fixed rate or on a floating rate of interest.

Home Improvement Loan

You apply for this type of loan when you want to renovate your house, carry out repairs, paint work, electrical or plumbing work and other forms of home improvement work to make your house more comfortable to live in.

NRI Home Loans

These are loans extended to NRIs to buy residential property in India. This type requires more paperwork and processing than regular Home Loan.

Balance Transfer Loans

You can transfer your Home Loan to another lender either for better customer service, lower interest rate, or willingness to provide you with certain facilities like restructuring your loan or offering top ups on Home Loan.

People with unstable jobs face a lot of difficulties to get their loan approved for rental property or purchasing a new home. Their proof income is not strong enough to get their loans sanctioned. Thanks to the new investor loan program that doesn’t ask for any income proof of the investor. Here is your chance to bag the loan for your property.

Don’t you wish to have your own home? Does the dream of having your own home fades away due to your low income and poor job stability. You don’t have to worry anymore regarding the approval of your loan for investment property. The new Investor Loan program gives you ample opportunities to either rent a home or purchase a new one without the need to show your proof of income or submitting your tax returns.

Get your loan approved within 3 business days

Buying a new home or investing in a rental property has become an easy and less challenging task due to the easy availability of the investment property loans. Your loan gets sanctioned within 72 hours time and you don’t have to undergo the time consuming and the complicated conventional underwriting and also submit the tax returns of the current two years.

The loan program is beneficial for those with unstable jobs

The new stated income loans program has proved to be beneficial for all those individuals who don’t have a stable job and are unable to provide any definite tax documents but still wish to get a good rental property or purchase a home. There are no heaps of paperwork and you don’t even have to stand in queue for hours to get your loans approved.

What are the requirements?

There are certain necessary requirements that you need to abide by in order to get loan for investment property. They are:

• The FICO score should be at least 600.
• 30 % down payment must be initiated.
• Refinancing also requires 30% equity payment
• The property should be occupied by a non-owner.

No proof of income and work history required

The best part about the lnvestment properties of loan is that they will provide you with a minimum loan of around $125,000 million and the upper range limit is $3 million. Isn’t this a huge amount for a loan to get sanctioned for investing in real estate property? Your work history, job stability, current salary and tax returns will not be asked for the loan approval.

The whole context of the investment properties loans can be handled efficiently and in a more organized manner by a trusted and reputed service provider, QKMortgage.com. Your loan will get approved quickly without any hassles.

You wish of having your own home, a dwelling to call your own, or a place to have for yourself and your family. Unfortunately, housing doesn’t come cheap and with the ever-changing real estate industry, so you ask yourself:

“Can I afford a house?”

To answer your question, the first thing to do is to evaluate yourself and your current financial status. The major requirement in getting a house is your ability to pay for downpayment, reservation fees, and closing costs. That ability is determined by your monthly earnings.

If your monthly salary is in the low hundreds, you are not likely to afford your own house for the meantime, however, it is not just your income you need to evaluate but also your monthly expenses. Do you pay for the monthly rent or do you split it with a roommate? Can you afford to pay for your living space and still have enough money for other expenses? If you cannot afford to pay for rent by yourself or even comfortably pay without going broke, then it is not safe to say that you can afford to buy a house.

You also need to evaluate your social status. Are you a single or a married individual? Do you have a child or a partner living with you? If you have a companion living with you and you pay for some of their expenses, then you may not afford a house at the moment.

If you are determined to get your dream home in spite of shortcomings, you can begin to set aside a portion of your salary for a housing fund. Many financial companies provide investment products where you can invest money and let it grow for a period of time. You can also borrow from banks or lending companies as some banks offer first-time homebuyers’ loans and grants. Some minimum-income requirements need to be qualified first, but there are also first-time loans that accept low-income applicants.

If the answers point to “no, I cannot afford a house”, it is best to stay put in your living quarters for the meantime and save up money while finding ways to earn better income.

Personal loans are not only the best source for funding any kind of emergency such as medical expense or urgent home repair, but also serve well for marriage, tuition fees, vacations, etc. These are also the only loans that do not require any kind of collaterals. All other advances require some kind of collateral, for example:

• Gold loans keep gold ornaments as security
• Advances against life insurance policies require policy as surety
• Home loans necessitate home/property as mortgage
• Similarly advances against mutual funds, shares, fixed and security deposit also require compulsory collateral

Having said this, the biggest drawback of these loans is the interest rates that are charged for them. Most private, co-operative and housing finance companies charge anywhere between 16%-28% per annum, while private sector banks provide these in the range of 14%-18% per annum. However, State bank of India (SBI), country’s top bank has come up with a game changing offer that provides personal loans to its existing borrowers at housing loan rates. Here are some of the key features of this innovative product from SBI –

Borrowers servicing their equated monthly installments (EMIs) on time can avail this offer

All existing customers of SBI who have been paying their home loan EMIs on time can get the personal loan at an interest rate of 10.15%. For women, this is even lower at 10.10%. The only thing that the borrowers need to do is to check their eligibility using the home loan eligibility calculator and if their income level fits the criteria, they can apply for this limited period offer. The processing of this will be faster as it doesn’t require many documents except for salary, identity and address proof.

Bonanza for customers with good track record

This new personal loan offer from SBI for its existing home loan mortgagors is nothing short of a bonanza. The interest rate offered is easily the lowest in this segment especially considering the fact that there are many banks in India that have still pegged their home loan rates in excess of 12%. The money availed through this ‘once in a decade offer’ can be utilized in several ways including:

• Home interior – the personal loan offers for home interiors in the market vary from 14% to 16%. In money terms, this translates to benefit in excess of 50 thousand rupees for a loan amount of 5 lakh rupees spread across 5 years.
  

• Down payment for second home – fund raised from this loan can also be utilized for financing the margin money for second home.
  

• Purchasing of new/used car – fund availed from this loan can also be utilized for buying new or used cars. The existing interest rate for new cars from SBI is 10.45%, for certified used cars up to tenure of 3 years it is 16.00% and above 3 years it’s 16.5%. The rate of interest for other used vehicles is in the range of 17.25% to 17.5%, which is much higher as compared to 10.15% offered by this personal loan product.

The lending industries could be broadly split into two parts: private and public. Private loan companies are usually traders who lend out money to make money. As pointed out above, the current recession has left destructed credit reviews in the wake, and the best choice that individuals can avail in this scenario is definitely the financial loans provided by them.

Private Financial loans:

Public loan companies include prominent banks, lenders, and recognized banking institutions. Private money loan companies, however, are individuals who lend as investment, to be able to benefit from the returns from the rate of interest or APR. Following would be the variations backward and forward:

• The being approved conditions and terms which are levied by public loan companies are more stringent, which is nearly impossible to find financing without an excellent credit history. Private ones give financial loans, regardless of the credit history and history.
• They levy a mammoth interest rate, while public ones problem a humble and subtle interest rate.
• Public loan companies conspicuously just offer guaranteed financial loans, as opposed to the financial loans of non-public loan companies which are guaranteed, in addition to unsecured.
• The rates of interest on public financial loans are low and incredibly reasonable. The interest rate, however, is very high and perhaps, exorbitant.
• Some public loan companies provide financial loans which are produced by the us government, which isn’t the situation using its counterpart.

A Choice to think about:

Within the occasions from the economic decline (2007 – 2009), loan companies, particularly the public ones, experienced many deficits consequently of consistent defaults and house foreclosures. Because the recessionary cycle is retreating, people will be ready to once more occupy financial loans. However, loan companies, except private ones, haven’t retrieved correctly in the shock from the recession. The 2nd problem would be that the credit rankings and score of individuals have evaporated throughout time of recession, because of which they don’t approve one.

Thus, the best choice you can use by individuals to avail property financing is financial loans from private loan companies. They are primarily accustomed to purchase property, and so the same estate is pledged as collateral. They are frequently known to as home or mortgage financial loans. However, you will find some other kinds of financial loans that may be granted by such loan companies. Included in this are second mortgage, debt consolidation reduction, and residential equity financial loans. Actually, they might offer do it yourself financial loans. The most popular qualities of such private financial loans are identical. They’re long-term, possess a relatively high interest rate, and finally, they’re guaranteed towards the equity of real estate. The main benefit of borrowing one is it can get approved rapidly, because the approval the weather is not so strict.

It’s vital that whenever you borrow from private loan companies, you calculate the early repayment and payments from the loan, as defaults and late obligations will enable you to get right into a very deep trouble.

The continuing recession has observed an archive quantity of house foreclosures and personal bankruptcy filings. It’s typed a disaster for that financial way forward for huge numbers of people around the globe. Since, house continues to be best priority even just in this age, individuals are frantically searching for methods to keep your roof on their own heads intact. If you’ve been among the unfortunate ones, who needed to spend their property inside a foreclosures, you very well may have forfeit all of your hope of possessing a home of your. Although, you needed to leave behind your home, you do not need to are saying to your dreams. Although your odds of locating a mortgage company are bleak, you could enhance your chances by focusing on your credit reliability.

Before Using for any Conforming Loan:

Should you declared a personal bankruptcy and therefore are now arranging a conforming loan, then you will find a couple of suggests be considered:

• Should you apply for a personal bankruptcy, then you definitely cannot apply for a different one for many years. Besides, the sense remains in your credit report for ten years.
• You are able to avail better rates for any conforming loan only when waiting for four years.
• According to Federal housing administration recommendations, you be eligible for a less than 3.5% lower payment after 24 months of the foreclosures.
• Hard money loan companies, who advertise financial loans within 6 several weeks of foreclosures frequently demand 35 to 40% lower payment. Furthermore, the rates of interest are through the roof and also the the loan are highly unfavorable.

Enhancing The Chance for any Conforming Loan:

Using for any major charge card following a foreclosures is a superb choice of enhancing your odds of obtaining a conforming loan. You may think, that its rather difficult to get a charge card, however, the simple truth is you really improve your odds of you get one, after declaring personal bankruptcy. This is how:

• Since, you declared personal bankruptcy to be able to start anew, your loan provider knows you have no financial obligations.

• Furthermore, because you will not have the ability to apply for another personal bankruptcy not less than many years, drastically increases your odds of obtaining a charge card.

• You can look at this an opportunity to work upon your credit ratings. All you need to do is, provide an proof of stable employment for a few many a stable earnings throughout individuals years (ignore these conditions if you’re self-employed).

• Should you repay what you owe and taxes promptly, obvious all of your monthly financial obligations and execute all of your civil responsibilities you’ll be able to influence the lender’s decision to operate to your benefit.

• Lastly, try in order to save a minimum of 10% of lower payment each month.

Your Credit score will be the most influential element in identifying your lower payment in addition to rate of interest. Since you’ve had a ‘not so impressive credit history’, you’ll be needed to pay for greater rates of interest, in comparison to individuals having a clean credit rating. Nevertheless, you’ll have the ability to purchase a house with poor credit, that you simply thought was impossible.

Developments of the permanent character, that increase the property’s value, and safeguard or enhance the habitability and also the intrinsic utility from the property, are known to as home enhancements. Substitutes, repairs, and corrections aren’t considered enhancements unless of course they boost the property’s value. People with a decent credit rating and credit rating can avail a Intended (Federal housing administration) Title I loan for undertaking home enhancements provided their house qualifies for that requisite enhancements. Federal housing administration protects property improvement financial loans disbanded by private loan companies who’re guaranteed as much as 90 % of the need for the borrowed funds against chance of default. Individuals with low credit ratings may obtain a low credit score do it yourself loan within the following ways.

Methods for Acquiring Low Credit Do It Yourself Financial loans:

Those who have a home may use the developed home equity to acquire a loan for financing the price of remodeling the house. Obviously, the developed home equity, understood to be the main difference between your current market price of the house and also the remaining mortgage balance around the home (or no), needs to stay positive. The developed home equity might help people, even individuals having a low credit rating, have the needed amount of cash at an interest rate that’s reduced compared to rate billed on other kinds of credit.

Refinancing Mortgage:

Refinancing mortgage is the procedure of changing the present mortgage around the house with another home loan of the identical size getting a comparatively favorable interest rate. Although refinancing mortgage is usually used with regards to reducing mortgage obligations, you can switch the current mortgage having a bigger mortgage and employ the additional cash to invest in home enhancements. This might be a achievable option for those who have equity around the house but possess a low credit rating. Actually, this new guaranteed debt could also be used to consolidate other consumer financial obligations provided the customer is confident of his/her capability to make regular obligations, failing that the home might be grabbed through the lender. Hence, it’s best if refinancing can be used for lowering mortgage obligations or getting extra money to make home enhancements.

Home Loan:

This is actually the second item that’s open to a house owner with an optimistic equity around the house. The average consumer could use the developed home equity to acquire a home loan that needs fixed monthly obligations of great interest and principal. This loan is appropriate for any customer who’s confident about his/her capability to make regular obligations or who feels the interest rate will probably rise in future. The second causes it to be favorable to avail a set rate loan because the interest rate won’t fluctuate using the prime rate. Obviously, a customer with a decent credit rating will discover it simpler to avail a minimal fixed interest rate loan as in comparison to some customer having a low credit rating. The second is that appears to be straddled having a fixed interest rate loan with maximum interest.

Home Equity Credit line:

This was a choice for a sub-prime customer prior to the housing crisis. The customer could easily make use of the equity around the home and borrow a credit line which had a turning structure. The turning structure made certain the customer needed to make only interest obligations around the amount which was lent throughout the draw period, while having to pay the main throughout the payment period that may stretch to 3 decades approximately. Both home equity financial loans and residential equity credit lines may permit the customer to subtract interest obligations before having to pay taxes. The housing crisis has resulted in many lenders freezing their credit lines. Hence, this method may no more be accessible towards the customer.

Getting a co-signer who concurs to visualize responsibility for that payment from the loan might help a customer avail a house improvement loan in a reasonable interest rate. Ultimately enhancing credit ratings is important to ensure that certain can avail financial loans in a reasonable interest rate.