Christian Bankruptcy Home Loan
A Christian bankruptcy home loan is a mortgage for a person who has previously been discharged from bankruptcy. This can leave a black mark on a person's credit report for years to come, which makes it difficult for them to get a home loan afterwards. Despite the difficulty, there are lenders out there who are willing to give out money. However, borrowers must be cautious and watch out for scams. Any credit counselor will advise those coming out of this situation to work towards a good credit score before attempting to obtain bankruptcy home loans.
Many bankrupt individuals are advised to live on a budget and manage their money cautiously since many of their purchases are monitored. Continuing a budget shouldn't be too difficult. Also, these individuals need to build up a savings account and obtain a credit card. The credit balance - not minimum payment - must be paid in full each month. It is also wise to establish a consistent home address and employer for at least six months. These steps will help borrowers obtain a better bankruptcy home loan. The most important thing to remember about bankruptcy home loans is that they tend to be higher in interest than typical loans. Lenders consider borrowers with a history of bankruptcy especially risky to work with. They will make up for that risk in interest. Seriously consider putting off borrowing until credit improves, and a person can show lenders that they are a reliable borrower. Pray about the decision carefully. "Blessed be God, which hath not turned away my prayer, nor his mercy from me". (Psalm 66:20)
For whatever reason, some individuals are too pressed for time to reestablish their credit before looking at other options. In these cases, they will want to search for a reliable lender. They can either do so themselves or work with a mortgage broker. A mortgage broker is especially helpful in finding home loans because they know many lenders and what each lender requires. The broker understands their client's financial history and can find the best deal on a bankruptcy home loan. For those who prefer to do the homework themselves, there are many services on the Internet, but use caution. Some of these sites offer too-good-to-be-true deals on bankruptcy home loans. Check the background of these lenders. Be especially wary of lenders who don't post information about their company or policies on their website. Make sure that the lender has a clean record with the Better Business Bureau. Other websites are available which compare lenders and their rates. A person can simply fill in one form and the website will submit it to dozens of lenders. The lenders then offer an unofficial quote.
Direct home loans make it much easier and cheaper for a homebuyer to research and understand the offerings of a home mortgage. These loans have many positive and negative features that will be attractive to a variety of consumers. A direct home loan will do away with the use of broker services, fees, and hassle that may often come with pursuing a home mortgage through other venues including banks and local finance companies. A note of this type allows the homebuyer to obtain a mortgage even when there have been past credit problems that may be plaguing the homebuyer. Negatively, however, as a Christian, it is necessary to understand the teaching of the Bible on the topic of owing money which may make these loans seem less appealing.
If the consumer or homebuyer wants to receive a mortgage contract without having to use the services of a broker or agency, direct home loans may be the answer. By using an agency that deals with these notes, there is no banker or financial officer to deal with about account information. Also with the note of this type, there is no fee for services rendered, other than the typical fees that may be accrued. With banks and finance companies, there may be fees for meetings or specific services that are provided, even on a daily basis.
Acquiring a mortgage contract is much easier for homebuyers with past credit problems or issues through direct home loans. They can bypass the issues that prevent banks or financial services from approving mortgage applications. Independent contractors, past bankruptcy, credit card debt, and a variety of other issues may plague the person who is seeking a loan. By pursuing a direct home loan, these issues are a factor, but the companies do what it takes to make it possible for the homebuyer to receive competitive rates. A note of this type is a great opportunity for someone with problems that may create a blemish on their credit history.
In conclusion, obtaining a direct home loan seems to be a great opportunity for anyone with credit problems who is seeking a mortgage. However, being indebted to a number of people is a terrible idea, and one that is heavily frowned upon in the Bible. "Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law." (Romans 13:8) These notes go completely against the teaching of the Bible. With a Direct home loan, instead of facing credit problems, borrowers may become involved in much deeper debts and credit problems.
Christian Home Bridge LoanHome bridge loans are used when a prospective homebuyer has found the home they would like to purchase, but has not yet sold their current one. Qualifying for this depends on how much equity there is in the current home. If the equity is adequate, a home bridge loan can provide the homebuyer with the cash needed to make a down payment on the new home. Normally, the interest rates and mortgage points are very high, not to mention the costs and fees involved. "And Jesus looking upon them saith, With men it is impossible, but not with God: for with God all things are possible." (Mark 10:27)
Less expense alternatives to this type of financing include 401k funds, stocks or bonds, an insurance policy or another asset that can be borrowed against, even an automobile. Any physical or financial asset that can be secured would work. In addition, a "gift" from a family member can be used to make up for a shortfall in funds. If none of those resources are available, a home bridge loan may be the only option for purchasing that new residence before the current one has sold. The least amount needed to close on the purchase of the new residence is usually the maximum amount allowed of most home bridge loans.
It is usually required that the homebuyer's current residence either be under contract or listed for sale in order to qualify for this type of loan. Terms vary among lending institutions, but typically the term on home bridge loans is six to twelve months. If the homebuyer's current residence sells sooner, it must be repaid in full immediately. These loans differ from traditional ones in that there is normally no monthly payment toward principal or interest. Instead, a home bridge loan is not amortized and is payable in full, including the interest that has accrued, at the end of the term.
Interest rates are higher than on traditional financing. The rate is figured by taking the current prime interest rate on the day of closing and adding a margin to that rate. For example, if the prime rate is five percent, the lender may tack on a two to three percent margin yielding a total rate of seven or eight percent. When considering a home bridge loan, it is imperative that one is sure the right choice is being made. It is a good idea to seek professional guidance in a matter of this magnitude.
Home builder spec home loans are available on the Internet, and most include a convenient application process. Users looking for financing for an upcoming building project can find a lender that will allow him to begin his payments after the construction has been completed. A spec house is a home that is built on speculation, or includes plans to build a house without a pre-sale of the building. After the spec house is finished, the buyer puts it up for sale. With this type of financial arrangement, a builder can finance up to 90 percent of his project. He can also draw requests for money online at any time during the construction phase.
An applicant can get home builder spec home loans for as much as 1.5 million dollars. Land equity and prepaid costs can be used as a down payment for some deals. But the builder must have an average or better credit rating score and provide a 10 percent post-closing liquidity of the total amount. He must also have a 15 percent minimum gross profit margin to qualify. Some lenders also require that the applicant have a certain number of years' experience, or a co-signer with home-building experience, in order to qualify.
Applicants can hold up to ten contracts at one time, enabling them to begin more than one construction project at a time, as long as he meets the other qualifications. The terms are normally 12, 15, or 18 months, giving the home builder plenty of time to complete the project and sell the speculative house. The total amount of home builder spec home loans a person can take out at one time may equal a sum of no more than 1.5 million dollars no matter how many houses they have being built. Once a person applies for a contract, the lender will work with him to process the paperwork and to help him get the most from his loan and glorify God at the same time.
In Luke 14:27, Jesus gives us advice about building: "Which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?" That's what makes taking out Christian home builder spec home loans so important. Each person must first sit down and count the cost. Without the right kinds of financing, many projects would fail before they began. The right financing can make the difference in any construction business.