Credit News

How to Get Same Day Payday Loans Online #government #home #loans

#same day payday loans

Same Day Payday Loans

Have you gone online to try and find a loan? You may have found it to be very confusing. After all, the amount of real and fake offers for fast cash including 1-hour cash advance loans can sound like they’re legitimate. And though it may be true that the approval process for getting a loan does feel like you’re getting a same day payday loan. in real life the process is very similar to the familiar practice of depositing a check at your local bank.

You might already be used to the check-depositing process and know that the funds from the check aren’t immediately posted to your account. Usually the bank will hold the check for at least 24 hours to make sure that the funds from the check’s issuer are available to be deposited. After at least 24 hours, if the funds are available, they’re deposited into your account for you to use however you like. The process for getting a loan online is very similar: if you’re approved for a loan, it’s possible the funds could be deposited into your bank account in as little as 24 hours.

If you see promises of same day payday loans or 1 hour cash advance loans online, beware of the fine print. If you’re looking for funds for any kind of emergency situation, you want to get matched with lenders who will treat you with fairness and respect.

get matched with lenders who will treat you with fairness and respect Money Mutual was created to give borrowers a better chance at getting a payday loan. quickly, by providing one of the largest lender networks in the U.S. Filling out the forms at our website is very quick, and if you’re matched with a lender, they will send you all of the terms and conditions for you to read over. If you accept the terms, it’s possible you could have money deposited into your bank account in as quickly as 24 hours. While MoneyMutual is not a lender nor do we broker loans, we instead attempt to match borrowers with lenders for free.

To assure that our customers are informed and treated properly, we’ve created a Code of Lender Conduct. The lenders who take part in our network who adhere to the Code must make sure all the terms of their loan offers are laid out in a fashion that’s clear to customers. They must also be professional in answering customers’ questions, as well as agree not to sell or share their customers’ information.

If you have a sudden emergency like an unexpected bill or surprise car repair, a payday loan may be one of your options. Review your finances to decide how much money you need and are able to borrow. Keep in mind that depending on the terms, the full amount you borrow may be due on your next payday, so take some time to factor how that will affect your budget. Get in touch with your lender if the due date approaches and you re not going to have enough money in your checking account to cover repayment. It’s possible the lender may agree to extend your loan; but, keep in mind that additional fees and finance charges may apply.

When you go online to look for a personal loan, don’t get distracted by promises of same day payday loans. Make sure you are matched with a reputable lender for free at Remember, make sure you take your time and use payday loans responsibly. If you are offered a loan, read over all the terms and conditions carefully before accepting the loan.


Student Loan Calculator Calculator #simple #loan #agreement

#loan calculater

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Ahead of personal loans for poor credit people it truly is obligatory which you obtain specifics of a person’s eye fees offered by various loan companies.

In order to apply for a Student loan calculator calculator greater volume at relatively interest levels, you could use the secured variety. Rather than visiting actually, online is the suitable alternative for making use of unemployed Student loan calculator calculator financial loans with no price.

These internet websites will probably be from individuals who have an enthusiasm to give up funds to pick out college students.

How to get rid of your student loans without paying #i #need #a #loan

#how to get a loan

How to get rid of your student loans without paying

Students hoping to become public defenders, work in the health field, or hopeful veterinarians in the state of Kentucky specializing in large food animals — you’re in luck.

You might be eligible for a number of programs that will help to repay your student loan debt. (Problem is, these programs aren’t easy to find out about.)

“The information can be really buried within a website or can be fractured,” said Betsy Mayotte, director of regulatory compliance at the nonprofit organization American Student Assistance. “You kind of have to dig for the details.”

With the interest rate on new subsidized Stafford loans doubling from 3.4 percent to 6.8 percent on July 1, 2013, students taking on debt to pay for their graduate degrees might consider researching the different programs out there. To help guide students interested in forgiveness programs, ASA has put together an eBook called “60+ Ways To Get Rid Of Your Student Loans (Without Paying Them). ” The organization divides the programs into two broad categories.

“Forgiveness programs are generally programs where you are rewarded for something that you do. Generally it’s some sort or volunteer or a specific working profession where there’s a need for people to work in that profession,” said Mayotte. “Unfortunately, discharge is for when something bad happens to you.”

The loan forgiveness and discharge programs were instituted by the federal government (as well as some state governments, organizations and private businesses) to eliminate all or part of a student’s loans if he or she qualifies. Borrowers who give back to their community, work in fields or areas of need, or face unpredicted, extenuating circumstances are eligible for these different programs.

To apply for forgiveness, you may need proof that you’ve worked for the required number of years at the location or profession that makes you eligible for the program.

The types of loan forgiveness programs available can be divided among these broad categories:

  • Community service

One community service option is applying for an AmeriCorps. award. It repays part of a person’s student loans based on their service in the AmeriCorps program. The U.S. federal government program is meant to engage adults in intensive community service work with the goal of “helping others and meeting critical needs in the community.” Other volunteer organizations offering loan forgiveness include the Peace Corps. and Volunteers in Service to America (VISTA ).

  • Military
    Perhaps one of the most well-known ways to forgive your student debt. Generally there are two types of programs — ones that pay for school while you’re in school and then programs relating to existing loan forgiveness. You should speak with a recruiter about the different plans out there. Find out more information at .
  • Profession
    The most common professions eligible for loan forgiveness tend to be in the health and teaching fields. Mayotte says some states are really thirsty for nurses, doctors, teachers, or public defenders — and may have forgiveness programs to attract those types of workers. You can find more career-based forgiveness programs with an online search or by talking to your employer. Find out more information at .
  • State specific

    You may be eligible for a program in a particular state if you are a legal resident in that state, work in one of the selected jobs, have a license for one of the jobs in the state, or went to school there. Search online to see what programs are available to you. Go to the state’s website and search around. State specific programs can change or be eliminated based on budget, so keep an eye out.

For more advice on dealing with your student loans check out these links:

The types of loan discharge options include:

  • Closed schools/school errors

Borrowers may be eligible if their school closed while they were attending or within 90 days of leaving it. They may also be eligible if they withdrew from school and were not refunded the correct amount. Borrowers are only eligible if they received their loans on or after January 1, 1986.

  • Disaster
    There’s a discharge option for spouses of eligible public servants or other eligible victims who died or became permanently and totally disabled due to physical injuries suffered as a result of the September 11, 2001 attacks.
  • Financial hardship
    Borrowers who face financial hardship based on income or debt could be eligible for these options:
      • Bankruptcy
        Contrary to popular belief, you can get rid of your loans in bankruptcy. But it’s difficult to do so. You must prove to a bankruptcy judge that repaying your loans would be an undue hardship. This standard generally requires you to show that there is no likelihood of any future ability to repay. Learn more .
      • Income-based repayment
        To qualify you must have a partial financial hardship, which means that payments to your eligible loans exceeds 15 percent of your discretionary income. After 25 years — 10 working in public service — any student loan debt left over is forgiven. Learn more .
      • Income-contingent repayment
        Similar to the income-based repayment program, but payments are capped at 20 percent of discretionary income. Learn more .
      • Pay as you earn forgiveness
        Only for newer borrowers. You must be a new Direct Loan borrower as of October 1, 2007, with a disbursement made after October 1, 2011. Any Direct Consolidation loan made on or after October 1, 2011, that does not include a Parent PLUS loan or a loan made prior to October 1, 2007 is eligible. Learn more .
  • Fraud
    If someone fraudulently obtained the loan in your name you may be eligible to have your loan discharged.
  • Medical

    For borrowers who suffer from physical or mental impairments or have died.

Mayotte said it’s important to note that for many of these loan programs, the amount that’s forgiven can be taxed as income.

She says the best way to find out what programs are available to you is searching online and asking.

“Ask a potential employer if student loan repayment is part of a benefit. Ask a school that you’re attending if the school is aware,” says Mayotte. “I wouldn’t be surprised if there were some super secret programs out there that weren’t online.”

Learn more about student loan forgiveness programs — click play on the audio player above to hear the Marketplace Money   interview with Mayotte.

How to get the best loan deal for your dream car #usda #home #loans

#best loan deals

How to get the best loan deal for your dream car

The loan math

A loan deal becomes sweet only if there is some kind of incentive from the manufacturer or financier. Otherwise, it can be as good as any other loan deal in the market. Try and separate the loan purchase from other negotiations in order to maximise it. Even if you can’t maximise, you would know what exactly you’ve got.

For instance, a discount offered by a manufacturer can be clubbed in the loan calculation to make the loan deal look much better. Assuming that you take a Rs 4-lakh loan at 12% interest rate for 5 years. The EMI will cost Rs 8,810. Let’s assume that the dealer has got a discount of Rs 25,000 to be offered to you. He doesn’t tell this to you but reduces it from the loan amount, making the EMI as low as Rs 8,259. Or he may also choose to tell the customer that the effective interest rate he is offering is 8.8%. A discount of Rs 25,000 doesn’t sound as lucrative as an interest rate of 8.8% in the current scenario,” says Banwari Lal Sharma, AVP, CarWale Automotive Exchange.

Is it really a discount?

A car dealer offers a “good” deal only under the following circumstances. First, the dealer has a huge stock of a particular car and he wants to liquidate that at any cost. Second, the dealer has service issues, which has impacted his reputation. Hence he may design attractive deals to offset its impact.

If the dealer claims to give a good discount, you should first understand the nature of the offer. The dealer may be offering accessories, insurance, car loan etc. at a ‘discounted’ price. But it may not be the best and the lowest price in the market. “Car accessories such as music systems, Bluetooth are much cheaper in shops owned by the authorised dealers. If the dealer is giving a discount on the car cost or accessories, the dealer has already made his money by earning a good margin on accessories. Thus the dealer makes money by inflating the charges of the value-added services and the customer is usually unaware,” says Rupesh Rele, a Mumbai-based auto expert.

Hence you should cross-check the offer not just with other dealers but also with other industry players who specialise in selling accessories, insurance or loans.

Cash Discount the best bet

A dealer may entice you with a cheaper loan offer which may seem half of what the banks offer. But there are chances he may build it into the cost in some other manner. “A customer should ask only for cash discount. Most dealers say they will offer a lower interest rate instead of a cash discount. That will reduce the customer’s EMI. But car buyers should not fall for this pitch. If you are paying 1 lakh as down-payment for a Rs 5-lakh car loan, ask for a cash discount on that Rs 1 lakh. Then compare the discount offers from various lenders to identify the best deal,” says Harsh Roongta. chief executive officer of .

Age of the car

This is as important while buying a new car. Car sales have plunged in the past two years because of rising petrol prices and higher interest rates. Typically, dealers also offer the best discounts on these “dated” cars. But if you are looking to sell the car in 3-4 years, the manufacturing date of the car will be the sole determinant of the resale value. Let us look at two cars of the same make and sub-type. One with a manufacturing date of December 30, 2011 and the other with a manufacturing date of January 5, 2012. Both the cars have a registration date of May 2012. “The car manufactured in 2011 will be sold for a cheaper price and at a better offer than the one made in 2012. But if you intend to sell this car after 3-4 years, you will get a far lower value for the 2011-car although it is only 7 days older than the 2012-car,” says Rupesh Rele.

Hence don’t forget to look at the age of the car while negotiating on the price and the discounts offered by the dealer.

One rupee and free insurance

The cheapest is not the best when it comes to insurance. You have to look at IDV (insured’s declared value), coverage of the policy and the tie-ups of the insurer before buying an insurance policy. IDV is the compensation you get in case of theft or total loss of the vehicle due to accidental damage. The IDV should not be less than 15% in the second year and 20% in the third year. Also opt for a comprehensive insurance coverage than third party liability. Compare the policy details with what the insurers offer and also the price and quotations.

Next time a dealer doles out the ‘best’ car loan offer, do your EMI math by getting separate quotations from banks based on your loan affordability. Compare those with the dealers’ quotations. And always negotiate on cash discount. This will lower your loan amount, EMI and the interest outgo, too.

How to Get the Best Car Interest Rates #home #loan #interest #rates

#auto loan interest rates

How to Get the Best Car Interest Rates

By Emily Delbridge. Car Insurance and Loans Expert

Emily Sue Delbridge has a strong family history in the insurance industry. She has been in the insurance business since 2005 with her primary focus on personal lines insurance. Read more

Getting the best interest rate possible on a car can save you hundreds if not thousands of dollars on the total cost of your car purchase. It is not always possible to get the best interest rates like you see advertised on TV, but it is possible to get a good interest rate if you prepare ahead of time. Learn what it takes to get the best interest rate on your next big car purchase.

The best interest rates are reserved for brand new cars. It has been possible in the past to even get a zero percent interest rate, but it only applies to new vehicles. Interest rates are always changing so zero percent auto loans are not common but lower rates on new cars is common. Occasionally the interest rate can be so much lower on a new vehicle compared to a used, your overall cost can be the same on a new vehicle as it would be on a used.

Credit scores affect a wide variety of your financial buying power from car loans to mortgages to your car insurance rates. The best scores get the best interest rates. Monitor your credit score by doing an annual credit score check. Pay all your bills on time but most importantly credit cards, personal loans, car loans, and mortgages. Get behind on any of those types of payments and your credit score will plummet. Even being late one month can make your score drop a lot of points. Another credit score tip is to have more credit than debt.

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For instance, having a credit card with a limit of $15,000 and only using $3000 of the available credit gives you a healthier credit score verses maxing out your cards.

Get a Co-Signer : A co-signer does not guarantee a lower interest rate on your car loan. The better credit score your co-signer has the better chance you have of getting a lower interest rate. Some lenders only allow you to be eligible for a car loan if you have a co-signer. Meaning the lender still calculates the interest rate of the car loan based on your credit history. A co-signer can definitely make a huge difference in whether or not you get a car loan, but interest rate savings might be minimal.

Shop Around : Do not underestimate the difference shopping around for a car loan can make on your interest rate. Car dealers, credit unions. banks and other lenders can all have different interest rates at different times. You might be more comfortable dealing directly with your credit union, but it might be surprising what the car dealership can offer in terms of interest rates. It all hinges on your credit history and likelihood of the lender getting their money back. Spending a little extra time shopping for the best interest rate can save you a bundle in the long run.

How to Get Lowest Auto Loan Rates with Dealer Financing #no #interest #loans

#car loan interest rate

How to Convince the Dealership to Give You Its Lowest Auto Loan Rate

Getting the lowest auto loan rate possible is one of the most important steps of the car-shopping process. However, the terms of a car loan can be overlooked when you are searching for the perfect car at the right price. And if you aren t informed, it can cost you big, especially when you choose dealer financing.

According to a study from the Center for Responsible Lending, some dealerships mark up the interest rate the borrowers credit qualifies them for. Dealers view this markup as compensation for the time they spend making the deal and processing the car loan, but for buyers, it is essentially a hidden cost. The average rate markup on dealer financing  was 2.47%, and cost the average consumer $714.

When shopping for auto loan rates, being informed and knowing what rates you qualify for will help you save money especially when you are financing your auto loan through a dealership. Don’t fear, there are ways to get a lower rate on an auto loan  financed through a dealership!

How Dealer-Financed Auto Loan Rates Are Determined

According to, dealerships use multiple factors to determine interest rates for auto loans:

  • The lender the car dealership works with. Depending on which bank or credit union the automaker is partnered with, the rates offered can vary.
  • The type of car and the vehicle’s model year.  Brand new cars generally receive the lowest rates. Auto loans for used cars  generally come at higher interest rates. Also, the older a car is, the higher the interest rate offered.
  • The loan’s term.  While automakers have recently extended zero percent financing to longer-term loans for promotions, generally speaking, the longer a car loan, the higher the interest rate.
  • The borrower’s credit score.  As with any loan, customers with impeccable credit are given the lowest auto loan rates. However, according to the Consumer Federation of America, only 15 percent of all car buyers are able to get this rate from dealer financing.

How to Get a Lower Rate on an Auto Loan at a Car Dealership

To guarantee that your dealer offers you the lowest car loan rate, you need to know how to get a lower rate on an auto loan. Knowing how to negotiate with your car dealership is key to getting the best rate for your next car purchase.

Research Alternate Financing Options Available

Before you go to the dealership for your financing, shop around and apply for auto loans at local banks or credit unions. Doing your own homework to see what car loan rates are available for you will let you know how competitive your car dealership’s loan interest rates are. After you get a loan offer from your dealership, you can compare the rates and counter the car dealership’s loan offer with the lower rate you ve been preapproved for from a third party bank or credit union.

Ask For A Lower Interest Rate

If dealership financing  is your only option, then negotiating might be the best way to get a lower rate on an auto loan. If you feel the interest rate is too high, you might be offered a lower interest rate simply by asking.

Increase Your Down Payment

The larger the car down payment you can afford to put toward your purchase, the lower your car loan rate will be. The less money the lender risks, the more comfortable it will be loaning it out. This translates into the lender rewarding your responsibility with a lower interest rate. The ideal car down payment is at least 20 percent of the projected loan amount.

Keep Your Loan’s Term Short

Signing up for the shortest auto term possible reduces the interest paid over the life of the loan. Allison Vail from illustrates this point perfectly.  She compares a three-year and six-year auto loan for $22,000 at 5%. The three-year loan will cost a borrower $23,737 with finance charges compared to $25,510 for a six-year loan. The three-year difference between the loans will cost a borrower an extra $1, 737.

Set Up Automatic Payments

Depending on the loan company your obtain your financing from, you might be able to reduce the rate with automatic car payments. By setting up an automatic withdrawal from your checking or savings account, some lenders will reduce the interest rate due to heightened confidence that payments will be made on time.

Ask About Promotions

During your negotiations, ask the car dealership about any financing incentives that are available. Depending on the eligible car models, you might be able to take advantage of zero or low car loan interest rates.

Don’t Take the Dealership’s First Offer

If you feel the interest rate is too high for your auto loan, don’t sound too eager to settle for the first offer. Lenders who sense borrowers are eager to get a loan will be less likely to negotiate an auto loan rate. If you are not prepared to walk away from the offer, tell the car dealership you have to think about it.

Staying firm, being educated and not settling for the first offer can help you negotiate for a lower interest rate.

How To Get Bad Credit Consolidation Loans? #subsidized #student #loans

#debt consolidation loans for bad credit

Free Debt Quotes

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Absolutely FREE. No Obligation, but if you like Your new reduced payments, you can discuss enrolling in the Program.

How To Get Bad Credit Consolidation Loans?

It’s understandable that people with seriously bad debt problems would be tempted to just give up and file for bankruptcy. While a chapter 7 bankruptcy (the most popular type) can be used to dismiss most unsecured debts, it will leave a serious stain on the person’s credit report. Two of the three credit reporting bureaus will actually keep a bankruptcy in a person’s credit file for 10 years. Plus, bankruptcies are a public record meaning that they will stay with a person throughout his or her entire life.

Why a debt consolidation loan can be a better alternative

A debt consolidation loan can be a better solution than bankruptcy as it can help improve a person’s credit score. It’s also a fairly simple way to handle debt because it will turn multiple monthly payments into just one payment that should have a reduced interest rate. Debt consolidation loans also have longer terms than most other debts. As an example of this, an unsecured loan would most likely have a term of five or seven years and a secured loan might have terms of 15 years or 30 years.

Consolidation loans for people with bad credit

People who have a bad credit record or credit score can also get bad credit consolidation loans. It may be possible to get one of these loans from a local financial institution but most people turn to the Internet. There are online companies that specialize in bad credit consolidation loans. some of which are peer-to-peer lenders, that is the loans are made from a person or group of people to another individual with no financial institution involved. Examples of this type of lender include, and

Most of these lenders will loan money to people with bad credit but these loans can come with fairly high interest rates. LendingClub advertises debt consolidation loans up to $35,000 with interest rates ranging from 6.78% to 27.99%. And has debt consolidation loans up to $25,000 with interest rates that vary from5.65% to 35.64%. As you might imagine, people with bad debt are likely to get interest rates on the high end of this spectrum, rather than at 5.65%.

Another form of debt consolidation

The company Fast Track Debt Relief ( advertises that it can also consolidate debts into one easy monthly payment. However, it does not do bad credit consolidation loans but instead offers a debt relief program that can help people become debt free in 24 to 48 months. Debt is not a factor for this company. In other words, it will help people no matter how bad their credit might be.

Bad credit consolidation through debt settlement

Another option for people with bad credit is to consolidate their debts through debt settlement. This is where the person contracts with a debt settlement company to negotiate with his or her creditors to get balances reduced. In most cases, a professional debt settlement company will save its clients thousands of dollars by reducing the balances on the unsecured debts by as much as 40% or even 50%. This, too, can help peoplebecome debt free in 24 to 48 months. However, it s important to understand that debt settlement isn t for everyone. A person must owe $10,000 or more and be at least six months behind in their payments for debt settlement to be a viable option.

How debt settlement consolidates loans

That settlement consolidate loans in the sense that once all of a person’s creditors accept all of the debt settlement company’s offers, the person will no longer be required to pay them. Instead, it will send the debt settlement company one payment a month until the settlement plan has been completed.

How To Get Business Loans #cheap #loans #uk

#how to get a business loan

How to get a business loan

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Take a very close look at the amount of money you think you will need. Know exactly how much money you need to raise, as you have to be able to justify every penny to a lender. Approaching a bank with the attitude of how much can you give me? will not inspire confidence.

Take a very close look at the amount of money you think you will need. Know exactly how much money you need to raise, as you have to be able to justify every penny to a lender. Approaching a bank with the attitude of how much can you give me? will not inspire confidence.

Define your income streams

According to Nigel Lander, a specialist finance adviser for Business Link, raising finance for start-ups or early-stage businesses is very difficult. One way that will increase your chances is to prove that your business has clearly-defined income streams. If you show that your business will have money coming in, it will be easier to persuade the banks to provide finance.

Bank finance is essentially for lending against anticipated income streams. For a very early-stage business, banks might come up with a small amount of money to match what the owner is putting in, on a pound for pound basis. Make it work at a modest level, advises Lander.

If you have very little or nothing to put into the business, it will be extremely difficult to convince the bank to part with money. To heighten your chances, try and raise money from as many other resources as possible, such as your friends and family, any retained profits you may have, or a third party investor. Banks want to see commitment from the business owneR s end, so you will probably have to come up with some kind of security as a form of guarantee, such as your house.

A watertight business plan

When approaching a bank, your business plan and how you deliver it should be the best it can possibly be. If your bank manager is your best possibility and you have not practised your presentation, you might blow your chance of accessing finance. You could try approaching a different bank to do a test run .

Many applications for finance get turned down because they are badly written or presented, and many get turned down because they are presented to the wrong people, says Lander.

According to Guy Herrington, marketing director for business banking at Lloyds TSB, a well-prepared business plan is essential when approaching a bank, and many banks have packages to help you write and prepare your business plan.

Banks decide to finance businesses on a case by case basis really. Less than 40% of customers actually borrow money when they are in the early stages of their business. Most will use funds from trade creditors or their family, says Herrington.

Prove your management ability

Another factor affecting whether a bank will agree to finance your business is your track record and management ability. Can you make the business work, and do you have a background in the sector are questions you should ask yourself.

The quality of the management team is always a major consideration. To help you, make sure you have support from a third party who has experience in areas where yours may be lacking, suggests Lander.

Lloyds TSB s Herrington says that it can be useful if you have a track record, but it is also worth highlighting any other relevant skills that you can bring to the business.

The bank s view

At the end of the day, banks never finance anything on a 100% basis, otherwise they may as well be running the business themselves. They will always be looking to finance businesses on a partnership basis, and will always want a contribution in, for example, monetary terms from people running the business.

Remember also that each branch manager has a different discretionary lending limit; above the limit your application may need to be processed elsewhere, which means you could lose part of the personal touch. The moral is to shop around, and certainly do not be put off by being turned down.

See also: New loan scheme to fund your business

How to Get Business Loans for Women #online #loans #for #bad #credit

#small business loans for women

How to Get Business Loans for Women

Women are said to start businesses at twice the rate of men. However, women may find it difficult at first to gain access to business loans. For women, the keys to accessing capital may include looking for loan programs with more flexible terms and that participate in mentor programs.

Other People Are Reading

Know that the U.S. Small Business Administration considers its 7(a) Loan Guaranty Program to be one of its primary lending sources. The SBA does not provide money for direct lending or for grants. However, the 7(a) program is made available through banks that provide loans which are guaranteed by the SBA. Small businesses unable to get financing on reasonable terms may be able to secure a loan through the 7(a) program.

Consider applying for an SBAExpress loan if you’re seeking a small business loan for $350,000 or less. These loans are backed by an SBA guarantee of 50 percent. According to the SBA, this method makes it easier and faster for lenders to provide loans, with the SBA typically providing a loan guarantee to the lender within 36 hours of a request.

Understand that qualifying standards for SBA-backed loans can be more flexible, but lenders will ask for more specific information before deciding to use an SBA loan program. Such information includes a business profile that describes the business and its annual sales, and a description of collateral available to secure the loan.

Seek training and counseling services through the Women’s Business Centers. The SBA says the centers are designed to help women start and run businesses despite social or financial disadvantages or business experience.

Be aware that SCORE, a nonprofit association, also offers free small business advice to entrepreneurs. According to SCORE, it has 10,500 volunteer counselors who have more than 600 business skills. SCORE calls itself a resource partner with the SBA. It’s online help includes instructions on assembling a loan package and writing a business plan for a loan.

Know that SCORE recommends contacting your local, county and state development departments because they may offer funding to businesses in certain areas. SCORE recommends contacting the banks in your area as well. According to SCORE, smaller community banks cater to helping small businesses.

How to Get Financing for Rental Properties #pay #advance #loans

#investment property loans

How to Get Financing for Rental Properties

These days, many people hear in the news that it s a good time to buy rental property and so they’ve [ ]

These days, many people hear in the news that it s a good time to buy rental property and so they’ve decided that they would like to get started in the property rental business. (a.k.a. being a landlord).

But, in order to get into the rental property investment business. how do you obtain mortgage financing to purchase your first rental property? It s true that it has become a lot harder to get financing these days; but for people with decent credit and sufficient income there is still plenty of money available to borrow. For terminology purposes, when you borrow for a rental property, it is called non-owner occupant (NOO) financing. Let’s run through some financing issues, items and suggestions that may help you.

Buy As an Owner Occupant (OO)

The best way to get into the landlord business is to buy a home that makes sense as a rental property, but you buy it as a personal residence, and live there for the required twelve months that an OO loan requires a borrower to do. As an owner occupant, you get the best financing terms and you may be able to put down as little as 3.5% with FHA financing. The loan stays in place with the original terms when you move out and make it a rental. It’s the best way to go!

Other reasons this makes sense:

  • You move into the property and learn the property specifics, issues, kinks, etc. and have them fixed before you move out and make it a rental property.
  • You also do any renovations and upgrades you need and you are not making two housing payments, like someone would do if they bought a property and were simply rehabbing it to rent it out.
  • Lastly, you are more selective and only buy properties that you are willing to live in, and that’s a smart way to go for investors; don’t buy properties that you wouldn’t live in.

Then, after 12, 24 or 36 months, buy your next owner-occupant property and rent out the original one. Then repeat, and repeat, and repeat again once every one to three years.

Buy as a Straight Rental Property

Let’s say you just want to buy it as a straight rental property. First up, you need a 20-25% down payment for most lenders (Fannie Mae and/or Freddie Mac may have some 10% investor properties, so check those out too). And that 20-25%, plus closing costs and renovation costs, might add up to 30% – 35% cash upfront to close escrow and get a property rental ready. So, for a $120,000 property, that could easily be $40,000 cash needed. That owner-occupied 3.5% FHA loan sounds pretty good right now, huh?

As noted above, you also need to have good credit and qualify for a bank s financing for an investment property. One nice thing about rental properties is that the bank may include some estimated net rental income from the property to help your debt-to-income ratios, especially if you buy something with a tenant already in place. Discuss this with your lender.

Speaking of tenants already in place, there are some significant advantages therein too! For example:

  • You get the security deposit from the seller at closing and some pro-rated rent
  • You probably collect the first month’s rent a month before your first mortgage payment is due
  • There is no vacancy, so you don t need to find a tenant, and
  • You probably won’t have to rehab the property until they leave.

The negative could be a lower than market rental rate or a tenant who pays late, doesn’t pay, or doesn’t take care of the property. But they could be a great tenants, too! Once in escrow, do a little looking around the apartment and talk to the tenant to make a determination if you want to keep them or terminate their lease when it ends. Convey this to the listing agent so that agent can alert the tenants either way.

Rates, Costs, Fees on Investment Properties

The costs of doing any mortgage loan these days are much higher than they used to be just a few years ago. And non-owner occupant (NOO) investment properties are even higher. Small dollar loans, like under $100,000, have very high fees as a percentage of the loan amount. Possibly up to 5% when you add in the loan origination points, fees, appraisal, underwriting, title insurance, escrow costs, etc. But the present rates are really very competitive and you can get NOO financing at 4.5% on a 30-year amortizing loan these days. And that is dirt cheap, locking in a 30-year low interest rate loan on a rental property.

Where Can You Find Loans?

Right when you start you should meet with two to three lenders and see what NOO loan programs they have for what you plan to buy. Try a bank or two, plus a mortgage broker or correspondent lender, and an online lender. Different lenders have different programs and a bank may reject you but a mortgage broker might have a program that works for your situation, so check around. Loan costs and rates will also vary, so get a couple of estimates and compare them to find the best deal .

How many properties can you buy? If you have the credit score (estimate your credit score ), and the debt to income ratios (which change with each property you buy), you can pretty easily finance up to four properties. Once you go over four and up to ten, the number of lenders who can finance you gets much lower, but they are still out there. The underwriting criteria also may get much tougher, but still possible. Once you go over ten loans, it’s really hard to find lenders who will finance and the loan costs, interest rates, and terms will be less appealing, but still relatively reasonable. Lenders who do over ten loans are called portfolio lenders.

In summary, this is a very good time to buy property, but you must educate yourself on rental property ownership, do your due diligence, and don’t think everything is going to be rosy and hassle-free, because real estate is hard work! Hopefully the hard work you do and issues you have to handle over the years will just be distant memories when you retire with a nice rental property income stream.

(Note: Many thanks to Robin Hill who contributed her guidance for this article. Robin is a San Diego-based mortgage lender for First Cal. She specializes in residential purchases and refinances for owner-occupied and non-owner occupied properties. She’s been in the mortgage business for the past 14 years).

Leonard Baron, MBA, CPA, is a San Diego State University Lecturer, a Zillow Blogger, the author of several books including “Real Estate Ownership, Investment and Due Diligence 101 – A Smarter Way to Buy Real Estate.” Read useful tips for real estate buyers in his blog, Making Smart and Safe Real Estate Decisions. See more at

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.