Tagged : mortgage loans

Found 9 blog entries tagged as "mortgage loans".

When it comes to home financing, a diverse array of loan types awaits homeowners. Among them is the bridge loan, a distinctive option with its own set of advantages and drawbacks.

Let's discuss the nuances of bridge loans, find out how they work, their benefits and disadvantages, and some alternatives to bridge loans.

What is a Bridge Loan?

A bridge loan is a short-term solution, often used to bridge the financial gap between purchasing a new home and selling your current one. This type of loan comes into play when the need to buy arises before the sale of your old property is finalized. 

Navigating the Mechanics of Bridge Loans

Due to the higher risk involved, bridge loans come with more stringent requirements than other mortgage

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For most people, entering a mortgage agreement is the single largest financial responsibility of their lives. Finding the best loan is more complicated than simply accepting the first mortgage offered at your bank, though. Various lenders offer different arrays of loan types and terms, so we do recommend that everyone takes the time to shop around before signing a loan agreement.

The best way to determine which of the potential home loans is the most advantageous is by asking the best questions!

The answers to the following questions will yield a great deal of information for you to examine, which will ensure that you’re fully prepared to choose the single best mortgage for your situation.

Will you be performing a hard credit check on me

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If lack of downpayment or funds for closing costs are the main hurdle to buying a home, a state or local downpayment assistance program may be the answer! Most states, counties, and cities offer assistance in the form of grants or no-interest loans to help home shoppers pay for these costs.

How Downpayment Assistance Programs Work

Assistance is usually funded by state housing finance agencies, cities, counties, or nonprofits, although some employers also have programs. 

The types of payment assistance vary by program, but they are most often geared toward first-time homebuyers and can be a:

  • Grant. This is an outright gift of money.
  • Zero-interest, forgivable loans. The loan is forgiven after a specified time, such as three years,
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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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We know that getting a mortgage as a self-employed individual can be more challenging than a W2 employee. This is not a reason, however, to let go of your dream to own a house. Follow our tips below for a smooth mortgage approval experience as a self-employed home shopper.

What Lenders Are Looking For?

Self-employed home buyers submit the same application forms as everyone else, the only difference is lenders have more rigorous requirements when it comes to proof of income.

In regards to your self-employed income, you’ll need to prove the following:

  • Business stability

  • Nature and location of your self-employment

  • Financial strength of your business and its ability to generate sufficient income for the foreseeable

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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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An interest-only mortgage starts with payments that only pay down the mortgage interest. Generally, this makes your monthly payments lower than a typical mortgage payment. This option is attractive for those who cannot afford high mortgage payments. However, it has its drawbacks if you're not careful. Let's explore the benefits and disadvantages of interest-only mortgages. 


  • Interest-only loans give you time to increase your income. Are you expecting an income increase in the next few years? Then an interest-only loan can be advantageous. For example, let's say you're in a lower management position right now but on track for a promotion in the next year or so. Once you move up, your earning power will also increase. An

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Whether you are buying a home or are refinancing, there are fees required to finalize the loan. We lump all these together and call them closing costs. With refinance loans, the closing costs are a bit less because certain elements are missing (such as title fees, home appraisal fees, and other sale-related fees).

This article will focus on the closing costs that you can expect to pay when you buy a property.

How much can you expect to pay in closing costs? 

Closing costs are about 2% to 5% of your loan amount. So if your loan is for $250k, you can expect to pay about $5,000 and $12,500 in closing costs. Admittedly, this is a fairly large range but we’ll break down the costs so you can have a better understanding of why it varies so much. 

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