Christian Home Repair Loans
Christian home repair loans are great for those emergency leaky roofs or the shingles that have gone beyond their twenty years and just need replaced. These lending agreements are also wonderful for that driveway that needs blacktopped again or a swimming pool that needs a new liner or perhaps electrical wiring that is thirty years beyond its prime. This special lending agreement is important for the over 70% of Americans who live pay check to paycheck and do not have savings to cover these kinds of major expenses. Living paycheck to paycheck means, in most cases except for the very destitute that debt has enslaved our country and our citizenry must count on loans for those much needed maintenance projects on the largest single investment most of us have. So what are the best places to look for these lending agreements?
If a person has stellar credit, the best home repair loans come from a bank offering a home equity line of credit. These lending agreements, nicknamed HELOCS by the financial world, are also offered by credit unions and are loans based on the equity a person has in his/her place of residence. These borrowing offers are among the most favored by financial experts because in the case of banks and credit unions, the interest rates are quite reasonable and while no borrowing is always a good way to avoid the trap of debt slavery, these HELOCS are the best in terms of loans. What percentage of the home equity a bank or cu will offer depends form institution to institution. Some may allow 70% of the equity and some may allow 50% to be used as the amount of the loan. These lending agreements are packaged as actual checking accounts on which the borrower can draw checks for the home repair needed, although the HELOC is not required to be used solely for home repair, so after the roof is finished a Bahamas vacation might be in order!
One of the things that need to be kept in mind about a HELOC from a bank: an above average credit report score needs to be presented by the borrower. In many cases, a score of 640 or above is required for consideration as well as a debt to income ratio of no more than 40%. In order to figure the ratio out, compare monthly income to monthly debt payments including the mortgage. If the debt payments are above 40%, the ratio is considered unacceptable by banks and perhaps by credit unions, although they are a bit less stringent in their requirements for lending money for home repair loans. A HELOC will require an appraisal of the house and have closing costs. The HELOC will be a revolving charge, just as a credit card is, and will be, in most cases, a variable rate of interest. One of the attractions for a HDELOC is that the interest paid each year on the loan is deductible, just a mortgage interest is.
Home repair loans are also available for those with credit scores that are under the bank's threshold of comfort. Lending companies that are funded by high risk investors are also a good source of borrowed money, but the interest rates and points charges will be much higher. The loan companies typically found at strip malls are often national in scope, but also sometimes privately owned. These companies are regulated by the federal government and operate within the legal guidelines of the law and will often over look sullied credit scores and higher debt to income ratios. In this particular arena, a willingness to pay perhaps twice the bank interest rate may land a borrower the money needed for the home repair needed. "Know ye not that to whom ye yield yourselves servants to obey, his servants are ye to whom ye obey; whether of sin unto death or obedience unto righteousness?" (Romans 6:16)
For the one who is fiscally challenged and the roof does need repair but a high interest loan is just not feasible, the federal government does have some low interest home repair loans to offer those who can prove financial hardship. These particular home repair loans are offered by the Department of Housing and Urban Development, also known as HUD, and are administered locally by housing authorities and nonprofit organizations. These loans are often administered with four percent interest making them extremely amenable to those strapped with monthly bills. If a person is interested in these kinds of lending agreements, the local library can probably help guide a person to finding local HUD representatives.
When the phrase was coined "There is no place like home," there was probably no way of conceiving how many times the words would be repeated by weary families arriving home in their van in the middle of the night after two weeks on the road. Having one's own familiar space is beyond description and so when something goes wrong with the wiring or the furnace or the roof or the water pipes or the foundation, the whole thing can be a little unsettling and home repair loans become very important because certainly the routine of everyone is upset. NO wonder people often frantically look to find the best home repair loans that can be quickly accessed. For the child of God, Jesus promised that each of us has a room in the Father's house. Imagine, one's own space, taking God over two thousand years to get ready for those who have trusted Jesus Christ as their Savior and Lord. For the Christian, the day of death means the light is on and the Father is at the door waiting to show us to our own room near Him. How cool is that?
Christian Home Improvement Loan OnlineReceiving a home improvement loan online requires the purchase of a property that is in need of repair in order to make it habitable or is in need of preparation for resell. Home improvement loans on line endure a catch 22 cycle because lenders will not lend money to purchase the property until the repairs are complete, and the repairs can't be done until the property has been purchased. The United States Department of housing and Urban Development has a program called the HUD 203(k) program. Application can be made through the usage of Internet technology and by filling out a form on the HUD website.
The HUD 203(k) program is serviced by lenders and allows the buyer to purchase and refinance a house plus include the financing needed for the cost of repairs. The HUD 203(k) program is FHA insured, meaning that if the borrower defaults, or the proper repairs are not complete, the federal government will repay on the borrower's behalf. This should not be how a Christian handles their debt. They should pay their mortgage on their own. "When thou vowest a vow unto God, defer not to pay it; for he hath no pleasure in fools: pay that which thou has vowed" (Ecclesiastes 5:4-5).
The down payment required for home improvement loans on line is 3% of the purchase and repair costs of the property. The steps to receiving the home improvement loan online are first to locate the house and execute a sales contract that confirms the type of financing desired. All financial and employment information must be entered via the Internet to apply. A local appraisal is done before the rehabilitation of the home and after the funds have been distributed and repairs have been made. This type of funding acts similar to construction financing in that all of the borrowed funds are not distributed at once, but as repairs are approved and completed.
The funds are distributed as needed for the payment of repairs. Once each section that is in need of repair is completed, more money is distributed. After the entire house has been completely repaired and all home improvement loan online funds have been used, the borrower must refinance for a traditional mortgage with a conventional lender. The borrower also has the option of selling the property once the repairs are complete, for a presumed profit. Borrowers seeking home improvement loans on line are advised to check with the BBB or Better Business Bureau to review the ratings of various lenders offering this type of loan. Those with the best ratings should be contacted for further information and pre-qualification.
The home improvement loan rate is determined by a credit score and by the length of the loan for the homeowner who wishes to make internal or external repairs on their property. Home improvement loan rates vary with each lending institution such as banks and credit unions or mortgage brokerages. Funding can be wrapped into the borrower's mortgage with the intent on repairing the property for resell or for occupancy. If a homeowner wants to flip the property (buy, fix up and sell), they may qualify for a lower interest charge through HUD or the United States Department of Housing and Urban Development.
HUD's 203(k) program offers low interest charges for borrowers who purchase a property that is in need of repair. HUD's program is within the FHA insured program. The FHA guarantees funding that is serviced by a conventional lender. These lenders must use a home improvement loan rate that the federal government allows. A borrower with bad credit may receive a higher interest charge, but there is a limit to the interest increase, and if the borrower's credit score is too low, they will be denied before receiving an extremely high charge, unlike with conventional financing. FHA interest charges can also be variable in nature. A variable interest charge begins as fixed for a predetermined number of years. Once the specified time frame has expired, the interest charge will either increase or decrease to meet the current market housing index. There is also a limit placed on variable home improvement loan rates that state how high and how low an interest charge is allowed to adjust (typically 2- 3 percentage points). "whatsoever thy hand findeth to do, do it with thy might; for there is no work, nor device, nor knowledge, nor wisdom, in the grave, whither thou goest" (Ecclesiastes 9:10). Borrowers that commonly utilize a variable program are real estate investors or people who plan on living in their home for a short period of time once the repairs have been completed.
It is advised that a Christian borrower check their own credit score before applying for and receiving quotes for home improvement loan rates. The more accurate the quotes, the fewer problems the borrower will have at the closing of the funding. Obtaining copies of a credit report can be done by contacting one or all three of the nationally recognized credit reporting agencies; Equifax, Experian, and TransUnion. These agencies offer a credit report free of charge to the borrower. Once the credit score is known, a check for inaccuracies that may lower it should be done. The best way to raise a credit score quickly is to pay down credit cards to at least 20% of their limits. Any other credit raising methods should be advised from finance professionals. The higher the credit score, the better the home improvement loan rate will be. Good credit is a sign of responsibility in paying off debts.