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FHA Loan and Financing Information from, what is an fha loan.#What #is #an #fha #loan


FHA Loans Explained and Delivered

Federal Housing Administration (FHA) Loans have returned to the lending market as a smart option for home financing for first time home buyers and those with less than perfect credit. At FHA Mortgage Center.com, we provide expert resources to consumers through a wealth of information on FHA home financing.

FHA Loans by State

More Information on FHA Mortgages

Choose an FHA Loan and Save Money. Choosing FHA Financing for your home loan can be a wise decision depending on your specific situation. The costs associated with the FHA Loan Program differ from other types of home financing. Benefits may include the following:

  • Smaller down payments
  • Attractive interest rates
  • Allowance of gift funds
  • 6% seller contributions
  • Lower closing costs

All of these benefits mean less money is required from you at the closing table!

By definition, FHA financing is a government-insured loan program that delegates loan approval to approved lenders.

Changes in the Housing Market Make FHA the Right Choice

What is an fha loan

After the fallout of the subprime and Alt-A loan markets in 2007, FHA Loans have received a new shot of energy throughout the housing market. Lenders, realtors, politicians, and investors have all issued statements championing the return of the FHA Home Loan Program to its rightful place in helping Americans purchase homes.

Borrowers like you, who once would have been better off in a conventional mortgage, may now find a FHA Home Loan to be the cheapest and safest option for securing a home.

FHA Resources

No matter what program you decide to use for your home loan, the basic terminology is something all home buyers need to be familiar with. You can use our new FHA Loan Term Glossary to learn and become comfortable with the financial terminology you will encounter with any home loan.

NOT a Government Agency

FHA Mortgage Center.com is not affiliated with any government agencies, including the FHA (Federal Housing Administration) or the HUD (Department of Housing and Urban Development).

FHA Mortgage Center.com Blog

Latest Articles

What is an fha loan


FHA Loan and Financing Information from, what is fha loan.#What #is #fha #loan


FHA Loans Explained and Delivered

Federal Housing Administration (FHA) Loans have returned to the lending market as a smart option for home financing for first time home buyers and those with less than perfect credit. At FHA Mortgage Center.com, we provide expert resources to consumers through a wealth of information on FHA home financing.

FHA Loans by State

More Information on FHA Mortgages

Choose an FHA Loan and Save Money. Choosing FHA Financing for your home loan can be a wise decision depending on your specific situation. The costs associated with the FHA Loan Program differ from other types of home financing. Benefits may include the following:

  • Smaller down payments
  • Attractive interest rates
  • Allowance of gift funds
  • 6% seller contributions
  • Lower closing costs

All of these benefits mean less money is required from you at the closing table!

By definition, FHA financing is a government-insured loan program that delegates loan approval to approved lenders.

Changes in the Housing Market Make FHA the Right Choice

What is fha loan

After the fallout of the subprime and Alt-A loan markets in 2007, FHA Loans have received a new shot of energy throughout the housing market. Lenders, realtors, politicians, and investors have all issued statements championing the return of the FHA Home Loan Program to its rightful place in helping Americans purchase homes.

Borrowers like you, who once would have been better off in a conventional mortgage, may now find a FHA Home Loan to be the cheapest and safest option for securing a home.

FHA Resources

No matter what program you decide to use for your home loan, the basic terminology is something all home buyers need to be familiar with. You can use our new FHA Loan Term Glossary to learn and become comfortable with the financial terminology you will encounter with any home loan.

NOT a Government Agency

FHA Mortgage Center.com is not affiliated with any government agencies, including the FHA (Federal Housing Administration) or the HUD (Department of Housing and Urban Development).

FHA Mortgage Center.com Blog

Latest Articles

What is fha loan


What is an FHA Loan? Complete Guide to FHA Loans, Zillow, what is fha loan.#What #is #fha #loan


What is an FHA Loan? – The Complete Consumer Guide

In this article:

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults.

Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher. The borrower s credit score can be between 500 579 if a 10% down payment is made. It s important to remember though, that the lower the credit score, the higher the interest borrowers will receive.

The FHA program was created in response to the rash of foreclosures and defaults that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable for people with less than stellar credit or a low down payment. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.

FHA Loan Requirements

For borrowers interested in buying a home with an FHA loan with the low down payment amount of 3.5%, applicants must have a minimum FICO score of 580 to qualify. However, having a credit score that’s lower than 580 doesn’t necessarily exclude you from FHA loan eligibility. You just need to have a minimum down payment of 10%.

The credit score and down payment amounts are just two of the requirements of FHA loans. Here’s a complete list of FHA loan requirements, which are set by the Federal Housing Authority:

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money can be gifted by a family member.
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers back-end ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent. FHA-qualified lenders will use a case-by-case basis to determine an applicants credit worthiness.
  • Typically borrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made if you are out of bankruptcy for more than one year if there were extenuating circumstances beyond your control that caused the bankruptcy and you ve managed your money in a responsible manner.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit. Exceptions can be made if there were extenuating circumstances and you ve improved your credit. If you were unable to sell your home because you had to move to a new area, this does not qualify as an exception to the three-year foreclosure guideline.
  • The property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).

See today s rates for FHA loans on Zillow What is fha loan

Benefits of FHA Loans: Low Down Payments and Less Strict Credit Score Requirements

Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. For FHA loans, down payment of 3.5 percent is required for maximum financing. Borrowers with credit scores as low as 500 can qualify for an FHA loan.

Borrowers who cannot afford a 20 percent down payment, have a lower credit score, or can’t get approved for private mortgage insurance should look into whether an FHA loan is the best option for their personal scenario.

Another advantage of an FHA loan it is an assumable mortgage which means if you want to sell your home, the buyer can “assume” the loan you have. People who have low or bad credit, have undergone a bankruptcy or have been foreclosed upon may be able to still qualify for an FHA loan.

Mortgage Insurance is Required for an FHA Loan

You knew there had to be a catch, and here it is: Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums: one is paid in full upfront -– or, it can be financed into the mortgage –- and the other is a monthly payment. Also, FHA loans require that the house meet certain conditions and must be appraised by an FHA-approved appraiser.

Upfront mortgage insurance premium (UFMIP) — Appropriately named, this is a one-time upfront monthly premium payment, which means borrowers will pay a premium of 1.75% of the home loan, regardless of their credit score. Example: $300,000 loan x 1.75% = $5,250. This sum can be paid upfront at closing as part of the settlement charges or can be rolled into the mortgage.

Annual MIP (charged monthly) — Called an annual premium, this is actually a monthly charge that will be figured into your mortgage payment. The amount of the mortgage insurance premium is a percentage of the loan amount, based on the borrower s loan-to-value (LTV) ratio, loan size, and length of loan:


Low documentation home loans: what are they and should you apply? #stafford #loan


#low doc loans
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Low doc home loans

Low doc loans are designed to assist people who do not qualify for a traditional home loan to buy a property. Low doc (or low documentation) loans still require the application to be made in writing, however you may not be required to provide much of the paperwork that is necessary with standard home loans, such as proof of income, assets or liabilities. The low doc loan relies more on a method called self-verification, where you state your income without the verifying documentation.

Who can benefit from a low doc loan?

Low doc loans are designed to benefit those people who have some existing equity or a deposit saved, and have trouble showing evidence of regular income. This could apply to the self-employed or casual workers. Low doc loans could also be made available to people with a bad credit history.

Low doc loans are also sometimes abused by people who have income they have omitted to declare to the taxation office. Failure to declare taxable income is an offence and, if caught, offenders are forced to pay penalties that far outweigh the savings they intended to make by breaking the law.

Why should I take out a low doc loan?

If you fall into any of the categories above and wish to purchase a property, a low doc loan could be your only option for obtaining the required finance. As with any major financial decision, always weigh up the pros and cons and determine whether you can afford the repayments. There could also be extra costs involved as many lenders will charge an inflated interest rate when standard documentation is not produced on application. Mortgage insurance is also a standard requirement with low doc loans, which adds further to the cost.

Most low doc loans will cover up to 80% of the value of the property (80% LVR), although the more financial documentation you can present to the lender, the higher the percentage could be.

Types of low doc loans

There are three main types of low doc loans: self-declared income, account statement and asset lend. Each of these low doc loans have slightly different eligibility requirements.

Self declared income

The most common low doc loan, where the lender will offer a home loan on a signed declaration of income, with no accompanying evidence. In general, 80% of the property value is loaned and the interest rate can be higher than a standard loan

Account statement

Requires more substantial income evidence, such as a letter from your accountant, however interest rates are usually more in line with a standard home loan .

Asset lend

This type of low doc loan requires the least evidence to be presented, in some cases no proof of income or signed declaration is needed. The loan is secured purely on the value of the property. These loans have substantially higher interest rates and, in general, a lower percentage of the value of the property can be borrowed.

What to look out for

Low doc loans generally have certain conditions and extra costs attached, such as:


I Applied For An Online Payday Loan. Here s What Happened Next: Planet Money: NPR #fed #loan #consolidation


#online payday loan
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Listen to the Story

Payday lenders made about $49 billion in high-interest loans last year. More than a third of those loans were made online. I wondered what happens when you apply for such a loan, so I decided to find out.

In the course of reporting a story earlier this year, I logged on to a site called eTaxLoan.com and filled out an application.

I asked for $500 and, to be safe, I made up an address, a name (Mary) and a Social Security number. The site asked for more sensitive stuff — a bank account number and a routing number — and I made that up, too.

In spite of the made-up information, in less than a minute, I got a response.

“Congratulations. Tremont Lending has been selected as your lender and you have been pre-approved for a loan up to $750.”

If I wanted to borrow $750 for a week, I would have had to pay $225 in interest. The site said that was an annual percentage rate of more than 1,300 percent.

I did not agree to take the loan.

But within minutes, my phone rang (I had entered my real phone number). It was a guy from Tremont Lending, in South Dakota. I told him I was a reporter, that I didn’t really want a loan, and I figured that would be the end of it. But then, I started to get more calls.

“Hi, Mary. My name is Ethan, Ethan Foster, and I’m calling from InstaLoan. And this call is regarding the loan application which you put online. It has been successfully approved by our company as a personal loan.”

And:

“This message is intended for Mary Kettler. Mary, the very second you receive this message, I need your urgent attention to return the call. My name is Tom Watson.”

For months, I got dozens of calls. Many of the callers had strong foreign accents. One caller, who said his name was Kevin, told me that Mary had been approved for a loan of up to $5,000 — 10 times what I initially asked for.

Kevin said he was from a company called Cash 4 You, which was unconnected to eTaxLoan.com. By this point, I was wholly confused. ETaxLoan had said it was a secure site, but now, many different companies had my application — and, presumably, my personal information.

It turns out there’s a huge online bidding process for such loans. ETaxLoan isn’t a lender at all, but something called a lead generator. It finds potential customers, then passes them on.

When I tried to contact eTaxLoan to learn more, I might as well have been looking for the holy grail. The company’s customer service line connected to a recording that said “due to an overwhelming response to great loans,” it could not take calls. The site lists an address in Delaware — but the company isn’t at that address. I spent days trying to find the company’s physical location, without success.

And when I tried to call back the people who had offered me loans, I couldn’t get through.

But eventually, I did find someone willing to talk about the business. Jack Murray heads Fix Media Group, in Virginia, which has a site called wefixmoney.com. Murray says his company — not unlike eTaxLoan — is really a marketing firm.

“We are a matching service, just like an Expedia is for a travel company or a Hotels.com is for a hotel company,” Murray says.

But instead of matching travelers with hotels, Murray matches those who need cash — and can’t get it elsewhere — with those willing to lend.

For that, he might get anywhere from $1 to $100 per lead. Murray draws a big distinction between his company and others in the business. He says he’s completely aboveboard and works only with partners he trusts.

“We have a pretty limited network of lenders, and we know what each of our lenders is looking for,” he says. “So whether it’s a certain state or other qualifications or characteristics of the customer, it will match the appropriate lender based on those things.”

Murray says neither he nor his lenders resells personal data, like the kind I submitted. But he says that others do, and that’s likely what happened in my case. It doesn’t take long online to discover there’s a whole network of people trying to buy and sell payday loan leads.

None of this surprises Benjamin Lawsky, the superintendent of financial services for New York state and one of many regulators trying to clamp down on payday lending.

“Once you made that application, you basically sent up a red flag with them that you are someone in need of this money, and you need it on a short-term basis,” he told me. “That’s when the vultures come out.”


Hard Money: What is it and How do Hard Money Loans Work? #calculate #loan #payment


#hard money loans
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Hard Money: What Is It and How Do Hard Money Loans Work?

Most real estate investors hear terms that they don t understand in the beginning. One of these terms, hard money. is little understood, and frequently asked about. Here is a great explanation of hard money.

What Does Everyone Mean by Hard Money? What is Hard Money

Hard money lenders (HMLs) are typically private individuals or small groups that lend money (Hard money) based on the property you are buying, and not on your credit score. Usually these loans cost (percentage-wise) much more then an average mortgage. often times up to twice what a regular mortgage does, plus high origination fees.

Who Needs Hard Money

Developers and house flippers, amongst others, will use it to fund deals because you can often borrow up to 100% of your purchase price! On the other hand, hard money lenders will frequently require you to back up your loan with real assets. If you know you can buy a property and turn it quickly at huge profit, and you can t get a standard mortgage, it might be one way to go. Some investors use hard money to get into the property, do some quick fixes to raise the property value, then get a new loan (based on the property s new, improved value) from a bank to pay off the hard money lender.

In Other Words.

Hard money loans are easily accessed and cut through the red tape. If you can develop a relationship with a LOCAL hard money lender, you can get funds within a couple days, and sometimes with no appraisal or other costs (except for origination fees of course).

Now different HML s have different requirements and protocol. There is a local HML that only charges 12% interest and 1 point origination if you keep it over a year and 2 more points if you keep it less than a year. He only does 30 year notes, and obviously he wants you to keep it. He has over 1100 notes, so he doesn t want the hassle. He wants his money to stay loaned out. I have also worked with another local HML who doesn t charge any points, but he s extremely fickle and can be hard to work with.

Now the typical HML will charge somewhere right around the usury rate. In Texas its 18% annual, so most HML s will charge 5% origination and 13% interest on a 1 year note or no points upfront and 18% interest with a shorter call. Now they can get around usuary by shifting their origination fee into a commitment fee (little different protocol), but most HML s don t know this.

The beauty of HML s is that the loan is normally not based on your credit score (especially with local lenders) or at least not on your credit worthiness (assets and income), you can receive funding within a matter of days (normally about 7-14 days) rather than 30 days+, and you can get a loan on any piece of junk that you find. You also are not normally dealing with a processing team. You deal directly with an individual lender. If he or she says yes, then you have the loan. This is quite advantageous versus going through an entire loan committee process or underwriting process.

HML s on longer term investments are not a good idea, but for short term flips, rehabs, or for the initial purchase, they can be a very strong tool. I started my investing using HML s, and have made very good money using them. I now use mostly a line of credit from the bank, but it took me several years to work into that. I also now do some local hard money loans to other investors.

Thanks to Ryan Webber for his explanation in other words (from our forums )

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FHA Loans – What are 203k Loans? #sba #loan #requirements


#what is an fha loan
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FHA 203k Loans: What Are They? What Are the Benefits?

In this article:

Getting a Mortgage Loan for a Fixer-Upper: A Primer on FHA 203k Loans

The idea of buying a fixer-upper and turning it into your dream abode can seem so perfect every nook and cranny just to your specifications! The reality, however, can be harsh. When you realize how much it will cost to remodel, you often also realize that you can t afford it. Or you find out that a lender won t give you a loan because the home is considered “uninhabitable” as it is. That s where an FHA 203k loan comes in.

An FHA 203k loan is a loan backed by the federal government and given to buyers who want to buy a damaged or older home and do repairs on it. Here s how it works: Let s say you want to buy a home that needs a brand-new bathroom and kitchen. An FHA 203k lender would then give you the money to buy (or refinance) the house plus the money to do the necessary renovations to the kitchen and bathroom.

Often the loan will also include: 1) an up to 20 percent “contingency reserve” so that you will have the funds to complete the remodel in the event it ends up costing more than the estimates suggested and/or 2) a provision that gives you up to about six months of mortgage payments so you can live elsewhere while you re remodeling, but still pay the mortgage payments on the new home.

Which Repairs Qualify?

There are two main types of FHA 203k mortgage loans. The first is the regular 203k, which is given for properties that need structural repairs such as a new roof or a room addition; the second is the streamlined 203k, which is given for non-structural repairs such as painting and new appliances.

Among the other repairs that an FHA 203k will cover: decks, patios, bathroom and kitchen remodels, flooring, plumbing, new siding, additions to the home such as a second story, and heating and air conditioning systems. The program will not cover so-called “luxury” improvements such as adding a tennis court or pool to the property.

How Much Money Can You Get?

The maximum amount of money a lender will give you under an FHA 203k depends on the type of loan you get (regular vs. streamlined). With a regular FHA 203k, the maximum amount you can get is the lesser of these two amounts: 1) the as-is value of the property plus repair costs, or 2) 110 percent of the estimated value of the property once you do the repairs. With a streamlined loan. you can get a loan for the purchase price of the home plus up to $35,000. To determine the as-is value of the property or the estimated value of the property post-repair, you may need to have an appraisal done. You will be required to put down 3.5 percent, but the money can come from a family member, employer or charitable organization.

What Kinds of Properties Qualify?

Qualifying homes include: a one- to four-family home that has been completed for a least a year; a home that has been torn down, provided that some of the existing foundation is still in place; a home that you want to move to a new location. The home cannot be a co-op, but some condos are eligible.

Your property will also have to qualify under the usual FHA requirements. For example, its value cannot exceed a certain maximum amount, which depends on where you live.

What Are the Pros and Cons of These Loans?

The main benefit of these loans is that they give you the ability to buy a home in need of repairs that you might not otherwise have been able to afford to buy. Plus, the down payment requirements are minimal, and often you get decent interest rates (note that the interest rates and discount points will vary by 203k lender, so it s important to make sure that you re getting a good deal on the loan).

The downsides are that not all properties qualify, there are limits on the funding you can get and applying for the loan isn t easy. For example, to apply for the loan you may need to hire an independent consultant to prepare the exhibits required (to get the loan, you have to provide a detailed proposal of the work you want to do and cost estimates for each item). Get more information on 203k loans .


TSP Loans: What Federal Employees Should Consider #school #loan


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TSP Loans: What Federal Employees Should Consider

As the national economy continues to struggle to recover from one of the worst downturns in recent history, many individuals are turning to their retirement plans — for example, 401(k) plans and the Thrift Savings Plan (TSP) — for financial relief.

They are borrowing from their retirement plans to pay their monthly mortgage, car loans and credit card bills.

Before discussing the advantages and disadvantages of Thrift Savings Plan loans, it is important to review TSP loan rules:

  • Only employees who are in pay status are eligible for TSP loans. Only employee contributions and earnings – not agency contributions and earnings – can be borrowed.
  • Two types of loans are available – general purpose loans and loans in order to purchase a principal residence. Loans to purchase to purchase a rental property or a second/vacation home are not permitted.

  • The minimum loan amount is $1,000. To be eligible for a loan, a TSP account owner must have at least $1,000 of contributions and earnings on those contributions in his or her account.

  • The maximum loan amount is $50,000. But the maximum amount one can borrow also depends on the individual’s TSP contributions, any outstanding TSP loans that the individual may have, and any limits set by the Internal Revenue Service.

  • The interest paid for the life of a TSP loan is the Government Securities (G) fund rate at the time a TSP application is processed. The interest paid on the loan is deposited into the loan owner’s account along with repayments of loan principal. A one-time fee of $50 covering the cost of processing and servicing of the loan is deducted from the loan proceeds.

  • Loans must be repaid – usually through payroll deductions – over the payment period specified in the TSP loan agreement. To repay a loan more quickly, or to make up for missed payments, TSP owners can pay by personal check or by money order. There is no penalty for prepaying a TSP loan.

  • All loans must be repaid before the borrower retires or leaves federal service. If a TSP in not repaid, the TSP will declare a taxable distribution for the balance of the outstanding principal and interest.
  • For many employees, TSP loans sound like a logical way to get some needed cash to pay for unforeseen expenses or to help purchase a principal residence.

    What are some advantages of TSP loans?

    • Paying yourself interest. Paying a reasonable amount of interest to yourself instead of an extravagant amount to a finance or credit card company would seem to be a less expensive way for employees to borrow.
  • Easy loan application. The TSP loan application is easy and straightforward. No one is turned down for a loan provided there are sufficient employee contributions and earnings. No credit check is required. Other types of loans – for example, home equity loans, require a more complex application process, a credit check and more fees.

  • No credit repercussions. If a TSP loan borrower loses his or her job, retires or leaves federal service and is unable to pay off the loan balance, the unpaid balance will be classified as a distribution for which income taxes must be paid. But it will not show up on the borrower’s credit report as a “loan default.”
  • But there are some disadvantages to TSP loans, including:

    • Paying taxes twice. By taking on a TSP loan, the account owner is moving tax-deferred assets into the taxable realm. One must use after-taxed income to repay the loan. For example, if an individual is in a 25 percent tax bracket, the individual would have to earn $125 to repay every $100 in principal and interest. After retirement, when the individual withdraws the same money used to repay the loan, the individual will pay income tax again on the same money.
  • Sacrificing growth and losing ground .Perhaps the most powerful feature of a retirement plan like the TSP is the tax-deferred growth and compounding of earnings and contributions. Removing these assets from one’s TSP account via a loan can significantly affect the growth of one’s account. Some borrowers have to reduce or suspend their TSP contributions in order to repay the loan. The overall result could be a smaller TSP retirement “nest egg”, possibly forcing an individual to postpone retirement in order to continue contributing to the TSP to make up for any “nest egg” deficit.

  • Potential tax penalty. If one fails to pay off a TSP loan, then income taxes – federal and possibly state – will be due. An additional IRS early withdrawal penalty of 10 percent will be applied if the account owner is younger than age 59.5 at the time of the loan default.
  • Employees who are tempted to dip into their TSP accounts via a loan to meet current needs should ask themselves: “Is my current need important enough that I want to risk reducing my level income during retirement?” Perhaps it would make good sense for these employees to talk to a financial advisor or tax consultant before they borrow from their TSP accounts. A financial or tax professional should be able to evaluate the effects of a loan and to make suggestions for alternative ways to tapping into one’s TSP retirement assets.

    Posted: 08/25/2009

    About the Author

    Edward A. Zurndorfer is a Certified Financial Planner and Enrolled Agent in Silver Spring, Maryland. He is also a registered representative with Multi-Financial Securities Corporation (Branch A9X), member FINRA/SIPC, also located in Silver Spring, Maryland

    To read more articles by Ed Zurndorfer, go here


    Emergency Financial Aid – What it is and Where to Get it #rural #development #loan


    #emergency loan
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    College Emergency Financial Aid

    Are You in Need of Serious Help?

    Preparing for college takes serious financial planning. Most students rely on a carefully balanced combination of scholarships, grants, loans and personal savings to meet their college tuition costs. Unfortunately, no amount of planning can guard against every contingency, and there are times when a student s financial circumstances can suddenly change. A major illness, the loss of a job, or a family tragedy can all derail a student s college career. Not only emotionally, but financially.

    When financial circumstances take a turn for the worse, many students feel they are left with only one option. Leaving school, and abandoning their dreams of a college education. However, there are financial aid programs available that can help students in difficult circumstances hang on to their college ambitions, and ride out the current financial storm. These emergency financial aid programs exist to help students recover from unexpected financial difficulties, and to avoid the last resort of abandoning a promising college career.

    Emergency Financial Aid

    Emergency financial aid for college students comes in a variety of forms, and addresses a number of different circumstances. Keep in mind, this is aid for students in extreme circumstances, or in a time of crisis. It does not apply to students who have not adequately planned for their financial needs.

    Emergency financial aid may come in the form of short-term loans or grants designed to help students remain in school when the completion of their college education is threatened by financial circumstances that are out of their control. Whether it s a death in the family, a sudden major illness or the loss of reliable income, quitting school may not be the only option.

    If you are a college student facing a financial crisis, try not to panic. Remember the importance of your college education, and how hard you have worked to get to where you are. Before you consider quitting school, consider the emergency financial aid opportunities that may be available to you.

    How Emergency Student Aid Works

    Emergency financial aid can take a variety of forms, including tuition waivers, financial aid advances or small personal loans. These measures are designed to help students avoid an interruption in their college studies due to an unforeseen emergency. The most common situations that may lead to a student s eligibility for emergency financial aid include:

    • a sudden health emergency
    • unexpected loss of income
    • death in the family, or other family emergency
    • rent in arrears, and risk of eviction
    • natural disaster

    Emergency aid is only available in extreme circumstances, and students will be expected to meet stringent criteria in order qualify. Typically, applicants must be full-time students, with an acceptable minimum GPA. Students applying for emergency aid will also be required to provide adequate documentation of the crisis leading to their need for emergency funds.

    Students considering emergency financial aid should understand that these programs offer limited help. They are only a stop-gap in a crisis, not a secondary form of college funding.

    College Resources

    Colleges and universities often offer emergency financial aid to students in good standing who are facing an unexpected financial crisis. As with any campus-based financial aid, emergency aid programs will vary from school to school, and will be subject to available funds. Students who have found themselves in extreme circumstances should visit their college s financial aid office to find out what types of emergency aid is currently being offered.

    The following examples are typical of the types of campus-based emergency financial aid available to college students in crisis.

    • Ithaca College in New York State offers two forms of emergency aid. Students who are facing a financial shortfall may request an Aid Advance on any expected grant or scholarship payouts. In other words, if a student has scholarship or grant money forthcoming, and will have a credit balance after all tuition fees have been paid, the college may provide an advance on that balance to be used for unexpected expenses.Ithaca also offers the Ebsary Loan for students in extreme circumstances. This is an interest free loan that must be repaid by a specific date, and can not be bundled with any other outstanding student loans.
    • Rackham Graduate School at the University of Michigan offers two emergency aid programs for its resident graduate students. The Rackham Graduate Student Emergency Fund provides up to $2500 in emergency financial aid to students who encounter a crisis situation or unforeseen expense. Applicants must supply a detailed statement describing the nature of the emergency, a budget detailing the amount of funds required, and a letter of support from their department head or the dean of admissions.Rackham Graduate School also administers the Center for the Education of Women Critical Need Grant for undergraduate and graduate students, including parents and returning female students who are faced with unexpected financial challenges.
    • Pasadena City College offers campus-based Short-Term Emergency Loans to its enrolled students. Loans are available for unexpected expenses, books and supplies. Loans are typically processed within 24 48 hours, and must be repaid with 30 days.
    • Austin Community College supports a campus-based Student Emergency Fund for currently enrolled students. Circumstances covered include loss of housing due to natural disaster, sudden significant medical expenses and death in the family. To be eligible, students must have completed at least 15 credit hours, and must have a minimum 2.0 GPA. Maximum awards are $500 per student, and are not renewable.
    • The University of California-Berkeley supports a number of Emergency Loans for both undergraduate and graduate students. These short term loans are available to students in good standing who are faced with sudden, and unforeseen, financial need. Students who meet the stringent eligibility requirements may receive between $775 and $1300 in emergency funds. Loans are interest free, and are due within 60 days of disbursement.

    Many colleges and universities will also offer tuition waivers and fee deferments for students who face an unexpected financial crisis. Students are encouraged to contact their college s office of financial aid for details on programs which may benefit them in an emergency situation.

    The Dreamkeepers and Angel Fund

    The Dreamkeepers and Angel Fund for Emergency Financial Aid is supported by the Lumina Foundation for Education, and is administered at more than 30 community colleges across the country. The program was designed to help students avoid dropping out when faced with unexpected financial difficulties. Situations covered by this program include childcare, healthcare, housing and minor car repairs.

    To be eligible for Dreamkeepers Emergency Financial Assistance students must have completed a minimum of 15 credit hours at a participating community college, and must be in good academic standing. Students must submit a statement detailing their need for assistance, and will be expected to provide documentation of their financial need. Students who meet the programs requirements will be eligible for up to $1000 in financial assistance.

    The Dreamkeepers and Angel Fund is currently administered at 37 community colleges across the country, and students facing a sudden financial crisis should contact their school s office of financial aid to learn whether or not their college participates in the program.

    Private Lender Emergency Loans

    As a last resort, students who are facing an unexpected financial crisis may wish to consider a short term loan from a bank or other private lending organization. Short term private loans can help students avoid dropping out of college, and stay on track for graduation. However, as with all private lender loans, students should not enter into any loan agreement lightly. Borrowing from a private lender, even in small amounts, should be a last resort when all other financial aid possibilities have been exhausted. Remember, private lender emergency loans will have higher interest rates than standard student loans, and are likely to have very stringent repayment terms. As always, use caution when considering any private lender loan.

    Students faced with a sudden family emergency, or an unexpected financial crisis, may feel that dropping out of college is their only option. However, there are programs in place designed to help students in exactly these circumstances. If you are faced with an unforeseen financial crisis, contact your financial aid adviser and discuss your situation. There may be financial aid assistance available that can help you avoid any unwanted interruption in your college education.


    FAQ s About Car Title Loans – What Is a Car Title Loan? #vehicle #loan


    #monthly payment loans
    #

    Low Monthly Payments Include Principal Interest

    1. What is a car title loan?

    It is a fast and easy way to get cash against your Clear Texas title.

  • How is the loan amount determined?

    The loan amount is determined by the lender s criteria based on income and the year, make, model, mileage and value of the vehicle. To get an estimate of how much you can get, call us with your vehicle information.

  • When do I receive funds from my loan?

    Funds are available as soon as you are approved and the loan process is completed.

  • How much time does it take to get approved?

    Once your application has been submitted, approval can be obtained within minutes. All you have to do is bring the required paperwork below, fill out the application and once approved, you will complete the loan process and receive your check right away. The whole process from submitting your application to approval and getting your check takes approximately 30 minutes.

  • What paperwork is required?
    • Your ID
    • Social Security Card
    • Most recent paycheck stub less than 30 days old.
    • Any utility bill under your name less than 30 days old.
    • Auto insurance
    • Vehicle title
    • Spare key
    • 5 references (family, friends, or co-workers)
    • car (for inspection and appraisal)
  • What if the car is in my name but my spouse is the one with the income?

    That is not a problem. We can put both of you on the loan as you own the vehicle, but you will be using your spouses income to payoff the loan.

    Yes you can apply online. However once approved, you will need to come to one of our convenient locations with the required paperwork to complete the loan process.

  • Will my employer or references be contacted?

    Yes. Since there is no credit check, employment and references are verified but the purpose of the call is not disclosed because we respect your privacy.

  • Does it matter if I have bad or poor credit?

    No. There is no credit check, however information on the application is verified.

  • What if I have filed bankruptcy or had repossessions?

    It does not matter because we are here to help people obtain credit who have had difficulty in obtaining credit in the past because of their credit history. However, your bankruptcy must be discharged of at least 6 months.

  • What is the interest rate?

    Lender charges interest rate of 10% for the auto title loans.

  • How are the payments set up?

    Payments are made on a monthly basis just like a car note. You are required to make at least the monthly installment due and any additional payments made in any increment is credited to your account.

  • How are my monthly payments applied?

    THESE ARE INSTALLMENT LOANS. Portions of your monthly payment goes to principal and a portion of it goes to interest. If you make your monthly installment payments every month when due, your loan will be paid off at the end of the contract term. THESE LOANS ARE NOT INTEREST ONLY LOANS.

  • How many months can I take to payoff the loan?

    Depending on the loan amount, you can take up to 24 months to pay off the loan.

  • Is there any prepayment penalty?

    No, there is no prepayment penalty.

  • Can I renew or refinance my loan to get additional cash?

    In some cases you may be eligible to renew or refinance to get additional cash. If you wish to get additional cash, please email us at loans(at)advantagefinancellc.com. or call 281-410-5337 to see if you qualify. Your payment history along with other factors will determine the result of your request.