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Guide to Home Equity Loans
Here is a useful guide to home equity loans. A home equity loan is quite simply a loan against your house. Another term for a home equity loan is a mortgage or second mortgage. Home equity loans are also known as equity release schemes. You are...
Home Equity Loans - Are They Right For You?
Copyright 2005 Dean Shainin The bills are out of control and you need a new car. “Maybe we can get a new carpet and paint the house”, you say to yourself. These are just a few reasons why home equity loans can seem like the solution to all your...
Home Equity Loans – Research Your Lender Carefully
Real estate prices are rising across the country, and Americans are tapping into their home equity like never before. Americans took out $431 billion in home equity loans in 2004, and that amount may increase in 2005. The reasons vary; some are...
Payday Loans: Convenient Money or a High-priced Trap?
Do you want cash now however your payday is a week away, are you short of cash and require financial help? If so you have in all likelihood heard of payday loans and may be wondering about using this type of credit service. If you need quick cash a...
Securing Debt Consolidation Secured Loans
If you're like most people, then you've got debt in your life… and if that debt is getting out of hand, you might want to consider debt consolidation secured loans. These loans are designed for people who find themselves in debt beyond their means...
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100% Financing Or No Down Payment & Bad Credit Mortgage Loans
Sub-prime lenders now offer financing packages with zero down.
Interest rates are higher on these types of loans, but they make
purchasing a house easier. And unlike a conventional loan, there
is no private mortgage insurance required. There are two types
of zero-down mortgage packages, each with their own requirements.
Types Of Zero-Down Loans
100% financing, as it names implies, offers complete financing
of your property. The other option, 80/20, finances your
mortgage with two loans. Both loans may be carried by your
lender, but sometimes the seller or a second lender is required
to carry the 20% mortgage.
100% financing is easier to deal with, but not all lenders will
offer this type of home loan. 80/20 financing is more common,
but takes some negotiation if the seller is involved.
Qualifications For Zero-Down
Each lender has their own criteria for determining who will
qualify for a zero-down loan. Most sub-prime lenders require any
bankruptcies or foreclosures to have been at least twelve months
ago. A conventional loan requires these to be discharged two to
four years ago.
While a credit score of 600 or higher is best, large cash
reserves can also qualify you. Six to twelve month's worth
of
cash reserves in the form of savings, money market, or other
liquid assets are considered ideal.
If you choose 80/20 financing with the seller carrying the
second mortgage, you can qualify with sub-prime lenders with a
score of 560.
Zero-Down Sub-prime Lenders
You can find zero-down sub-prime mortgages with both
conventional and niche sub-prime lenders. Make sure that you
request quotes from as many mortgage lenders has possible to be
sure you find the lowest rate and best terms.
You will also want to decide what type of mortgage you want. An
ARM is easier to qualify for and has lower rates. A fixed rate
mortgage offers the security of a constant interest rate over
the life of your loan.
Typically an ARM will be a better deal if you plan to refinance
within a couple of years. After you have improved your credit
history, you can refinance for a conventional mortgage with low
interest rates.
About the author:
See my recommended companies for
Bad Credit Mortgage Loans. Carrie Reeder is the owner of ABC
Loan Guide, which offers help with loans for people with bad
credit.
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