If you’re suffering from poor credit and thinking about buying a manufactured home, then you can go for a bad credit manufactured home loan. Manufactured home loans for people with bad credit are now being offered by a number of mobile home lenders.
These loans are easy to get and can help you boost your credit score as well. Many prospective homebuyers’s who can’t buy traditional homes due to their credit problems frequently select manufactured homes. A bad credit mobile home loan has some similarities with a conventional mortgage loan.
How can you get bad credit manufactured home loans?
Manufactured homes or mobile homes are normally financed like personal loans instead of real estate loans. The financing procedure is similar to that of a television or a car. However, due to the growing popularity of mobile homes, financing of mobile homes has achieved plenty of market.
To get a manufactured home loan, you typically need to have a good credit. At present, people with poor credit scores can qualify for these loans at a somewhat higher interest rate. Nevertheless, you would need to substantiate that you have a steady source of income and repayment ability to qualify for a bad credit mobile home loan. Lenders might necessitate you to own the lot where the mobile home is to be placed.
There are various lenders that offer loans for both the mobile home and the lot. On the other hand, there are lenders that just offer loans for the mobile home where you have to arrange for the lot by yourself.
Options for bad credit mobile home loans
The package for mobile home financing comes with various features such as adjustable or fixed interest rates, single permanent construction loans and finance of up to 95% of the home value. You can get affordable rates for short-term financing. In addition, you can get construction plans designed as per your convenience.
One of the options for financing mobile homes is the single permanent rate or one time close construction rate. This is a single step program and if you go for this option, then you can obtain a fixed interest rate throughout the construction period. Once the construction is complete, this would change into a permanent loan.
If you go for two-step option for financing mobile homes then you can take out a loan of up to 90% of the value of a vacation home and up to 95% of the value of the permanent home. This is derived from the prime rate throughout the construction period and would remain for a construction period of one year.
The third mobile home financing option is the lot loans. The lot loans are offered to people who have discovered the location to fix the manufactured home but are still to construct the home.
Senin, 22 Februari 2010
How to calculate debt ratio?
Debt ratios are two numbers expressed as a percentage of your gross monthly income. The first debt ratio is called your housing ratio because it only uses your house payment (which includes your monthly tax and insurance payment) for the ratio, often also called your ‘‘front end.’’ The second ratio is your housing ratio plus any other debt listed on your credit report, divided by your gross monthly income. This is sometimes called the ‘‘back-end’’ ratio.
Common front and back ratios on conventional loans with 5 percent down are 28 percent and 36 percent. Take your gross monthly income, multiply that by 28 percent, then by using the ‘‘Cost per Thousand’’ chart in the Appendix at the back of the book you can find what a lender would consider a comfortable house payment. For example, your gross monthly income is $5,000. Remember, this is your gross income. Income before all your taxes and withholding are deducted. Let’s say that the typical housing ratio is 28 percent, historically a common housing ratio for borrowers with 5 percent down. 28 percent of $5,000 is $1,400. Included in that $1,400 is your monthly hazard insurance bill of $75 and your monthly tax payment of $125. Also note that if you put less than 20 percent down you’ll need a private mortgage insurance premium as well, which might be $85. By subtracting these amounts from your ‘‘allowable’’ $1,400, you’re left with $1,115 for your principal and interest payment.For a 30-year fixed payment of $1,115 and a note rate of 7.00 percent, the loan amount calculates to about $168,000. You’re prequalified to borrow $168,000. Give or take. Again, this is your front-end ratio.
Note that this has nothing to do with the sales price of your new home but only pertains to how much you’re going to be able to borrow. If you have a $168,000 loan amount that doesn’t mean you have a $168,000 sales price. You can have a million dollar home with just a $168,000 loan amount, as long as you have $832,000 in down payment, right?
The second ratio, or back-end ratio, is your total debt ratio and includes mostly those items that would show up on your credit report, such as automobile loans, minimum credit card payments, student loans, and the like. Other things you pay for but that are not included in your ratios are the cost of your electricity, telephone, and food. If you had a car payment of $400 and student loan payments totaling $250, then in this example your ratios would be $1,400 _ $400 _ $250 _ $2,050. Divide that by your gross income of $5,000 and your back ratio is .41, or 41 percent. Your overall ratios would be 28/41.
Common front and back ratios on conventional loans with 5 percent down are 28 percent and 36 percent. Take your gross monthly income, multiply that by 28 percent, then by using the ‘‘Cost per Thousand’’ chart in the Appendix at the back of the book you can find what a lender would consider a comfortable house payment. For example, your gross monthly income is $5,000. Remember, this is your gross income. Income before all your taxes and withholding are deducted. Let’s say that the typical housing ratio is 28 percent, historically a common housing ratio for borrowers with 5 percent down. 28 percent of $5,000 is $1,400. Included in that $1,400 is your monthly hazard insurance bill of $75 and your monthly tax payment of $125. Also note that if you put less than 20 percent down you’ll need a private mortgage insurance premium as well, which might be $85. By subtracting these amounts from your ‘‘allowable’’ $1,400, you’re left with $1,115 for your principal and interest payment.For a 30-year fixed payment of $1,115 and a note rate of 7.00 percent, the loan amount calculates to about $168,000. You’re prequalified to borrow $168,000. Give or take. Again, this is your front-end ratio.
Note that this has nothing to do with the sales price of your new home but only pertains to how much you’re going to be able to borrow. If you have a $168,000 loan amount that doesn’t mean you have a $168,000 sales price. You can have a million dollar home with just a $168,000 loan amount, as long as you have $832,000 in down payment, right?
The second ratio, or back-end ratio, is your total debt ratio and includes mostly those items that would show up on your credit report, such as automobile loans, minimum credit card payments, student loans, and the like. Other things you pay for but that are not included in your ratios are the cost of your electricity, telephone, and food. If you had a car payment of $400 and student loan payments totaling $250, then in this example your ratios would be $1,400 _ $400 _ $250 _ $2,050. Divide that by your gross income of $5,000 and your back ratio is .41, or 41 percent. Your overall ratios would be 28/41.
Minggu, 14 Februari 2010
How to use internet to find the best mortgage rate?
You must use it carefully. But there are some places to start. One of the best-known Web sites for interest rates in general and specifically for mortgages is BankRate Monitor, found at www.bankrate.com. BankRateMonitor both surveys area lenders for mortgage rates while at the same time providing a venue for mortgage companies—brokers as well as bankers—to advertise on the same page.
The mortgage section lets you select which major city and state your property is located in, whether you want a conforming or jumbo quote, and breaks down fixed and adjustable rate mortgages. If you live in San Diego, you would fill in your city and state, click on your mortgage requirements and, voila, lists upon lists of mortgage rate quotes. On these rate quotes you’ll see loan parameters, such as the rate, the APR, how long the rate is good for, when the rate was posted, plus any other comments lenders may add, such as, ‘‘We specialize in loans for hamster farmers!’’
One thing you’ll notice is that there are a great many lenders who advertise on the Internet, and you’ve probably never heard of most of them. Is that a bad thing? Of course not, but you do need to scrutinize these people with a tad more diligence than lenders who were referred to you by your agent or by your friends. Is Big Shot Mortgage offering an interest rate of 4.00 percent while everyone else is offering 7.00 percent? Do you think Big Shot Mortgage has a special edge on the mortgage market? Of course they don’t. But there are some ways to help qualify those companies you see advertising on the Internet.
First, visit their Web site. Easy enough, right? But you’re not looking for key terms such as ‘‘we offer great rates’’ and ‘‘we offer great service’’ or any other such patter. Instead, compare the interest rates quotes on their Web site with the ones that are advertised on the Internet. Do they match up? If they do, are they for the same date?
You can’t compare interest rates unless they’re for the same date, and even then the markets may have changed. If you get interest rates that are much different on the company’s Web site than you see advertised in other places, take their advertisement with a grain of salt.
Another thing to determine from their Web site is to see if they’re in compliance with Federal Truth in Lending laws by quoting interest rates in the correct and legal manner. If you see a rate quote, do you also see the corresponding APR quote? Do you see the loan amount used for the quote? If you see a lender or broker quoting interest rates on their Web site without complying with federal statute regarding rate quotes, you might think of moving on.
Are they operating legally in your state? Most states have licensing laws for lenders and brokers. If someone is advertising in your state, are they doing so legally? A broker’s Web site usually lists the states where they’re authorized to do business. If you find no such list or nothing about their licensing, don’t consider this lender or broker. I know this sounds a little tough, and quite frankly there are probably some very good lenders and brokers out there who might get dropped from your list because they didn’t advertise properly or disclosed their licensing authority. But think about that for a moment if you are tempted to apply with someone you’ve never heard of just because they advertise a great rate while at the same time they’re in flagrant violation of Federal Truth in Lending Laws. Do you really want to take that chance?
The mortgage section lets you select which major city and state your property is located in, whether you want a conforming or jumbo quote, and breaks down fixed and adjustable rate mortgages. If you live in San Diego, you would fill in your city and state, click on your mortgage requirements and, voila, lists upon lists of mortgage rate quotes. On these rate quotes you’ll see loan parameters, such as the rate, the APR, how long the rate is good for, when the rate was posted, plus any other comments lenders may add, such as, ‘‘We specialize in loans for hamster farmers!’’
One thing you’ll notice is that there are a great many lenders who advertise on the Internet, and you’ve probably never heard of most of them. Is that a bad thing? Of course not, but you do need to scrutinize these people with a tad more diligence than lenders who were referred to you by your agent or by your friends. Is Big Shot Mortgage offering an interest rate of 4.00 percent while everyone else is offering 7.00 percent? Do you think Big Shot Mortgage has a special edge on the mortgage market? Of course they don’t. But there are some ways to help qualify those companies you see advertising on the Internet.
First, visit their Web site. Easy enough, right? But you’re not looking for key terms such as ‘‘we offer great rates’’ and ‘‘we offer great service’’ or any other such patter. Instead, compare the interest rates quotes on their Web site with the ones that are advertised on the Internet. Do they match up? If they do, are they for the same date?
You can’t compare interest rates unless they’re for the same date, and even then the markets may have changed. If you get interest rates that are much different on the company’s Web site than you see advertised in other places, take their advertisement with a grain of salt.
Another thing to determine from their Web site is to see if they’re in compliance with Federal Truth in Lending laws by quoting interest rates in the correct and legal manner. If you see a rate quote, do you also see the corresponding APR quote? Do you see the loan amount used for the quote? If you see a lender or broker quoting interest rates on their Web site without complying with federal statute regarding rate quotes, you might think of moving on.
Are they operating legally in your state? Most states have licensing laws for lenders and brokers. If someone is advertising in your state, are they doing so legally? A broker’s Web site usually lists the states where they’re authorized to do business. If you find no such list or nothing about their licensing, don’t consider this lender or broker. I know this sounds a little tough, and quite frankly there are probably some very good lenders and brokers out there who might get dropped from your list because they didn’t advertise properly or disclosed their licensing authority. But think about that for a moment if you are tempted to apply with someone you’ve never heard of just because they advertise a great rate while at the same time they’re in flagrant violation of Federal Truth in Lending Laws. Do you really want to take that chance?
How has the internet helped mortgage lending?
The Internet provides unprecedented speed and access to information. Your loan closes in a matter of days, not weeks. Because of the Internet, ‘‘Google’’ is now a real word. Because of the Internet, it takes just a few seconds to get a question answered. Encyclopedia? Ha! Nothing is as fast and as handy as the World Wide Web, right? Doing things faster and with fewer people keeps costs down and helps to keep rates lower than they otherwise might be.
By providing speed and information to the process. Speed and access to information are the two key reasons mortgage lending is so much easier today than it was just a few short years ago. Consumers now log onto a lender’s Web site and apply online. This does a couple of important things. First, it allows customers to complete applications at their convenience rather than sitting at some loan officer’s desk filling out reams of paper. Honestly, aren’t there just a few things you’d rather be doing than going to a lender’s office and fill out loan applications? Second, by completing the online application you’re also easing the workload for the lender.
It used to be that a customer would complete the loan application, sign it, and pass it on to their lender who would then take that same handwritten application and input it into a computer program. Saving your lender time means they’re (hopefully) spending more time on customer service and less time on mundane paperwork. Lenders also use the Internet daily.
From my desk I can download your loan application from our Web site, review the data, and then use the Internet to submit your loan for approval. Within a few seconds, the approval arrives, and I can then order your credit report, your title report, and your appraisal. All online. Within a few days, your title report is delivered to me electronically, as well as your appraisal, which I can download, print, or forward to you. All this takes about five minutes. Before the Internet those procedures could take hours.
By providing speed and information to the process. Speed and access to information are the two key reasons mortgage lending is so much easier today than it was just a few short years ago. Consumers now log onto a lender’s Web site and apply online. This does a couple of important things. First, it allows customers to complete applications at their convenience rather than sitting at some loan officer’s desk filling out reams of paper. Honestly, aren’t there just a few things you’d rather be doing than going to a lender’s office and fill out loan applications? Second, by completing the online application you’re also easing the workload for the lender.
It used to be that a customer would complete the loan application, sign it, and pass it on to their lender who would then take that same handwritten application and input it into a computer program. Saving your lender time means they’re (hopefully) spending more time on customer service and less time on mundane paperwork. Lenders also use the Internet daily.
From my desk I can download your loan application from our Web site, review the data, and then use the Internet to submit your loan for approval. Within a few seconds, the approval arrives, and I can then order your credit report, your title report, and your appraisal. All online. Within a few days, your title report is delivered to me electronically, as well as your appraisal, which I can download, print, or forward to you. All this takes about five minutes. Before the Internet those procedures could take hours.
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