Financing
Financing questions and answers
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Q: How does owner financing affect your credit oppose to financing your home through a bank?
I bought my house by financing through the owner (Owner financing) because my credit was not great. I have never had anything repossesed or any major credit problems. Yet my credit is not all that great. I am wondering if it has to do with not financing my house through a mortgage company.
A: Chances are that private lenders do not report your loan and payment history to the credit bureaus.
Q: What method of financing is better when buying a car, Balloon Financing or traditional financing?
What is better Balloon financing or traditional financing? What are the pros and cons of each?
A: Balloon loans provide lower payments but then you owe a huge final payment, which you have to finance again. What this does is keeps you upside down on your loan for years, increases your total finance costs, and makes it almost impossible to sell or trade your car before the end of both loans. Stay away from balloon loans if you can. Dealers sometimes push them just to get the payment a customer wants, without fully explaining the downside.
Q: How does financing work on a residential lot?
There are 2 residential lots in this neighborhood that is up and coming. I want to buy the two lots but sit on them for about a year or so. How would the financing work? Do you finance something like that as you would a 30 yr mortgage?
A: You get a lot loan from a lender. The interest rate will be higher than a traditional mortgage. Typically the terms are shorter, I have seen several 10 year land/lot loans, a few 15s.
Q: Financing?
I've never financed anything before (I do have credit though so I know I can get one).
I'm wanting to finance my breast augmentation & I had a question.
It's going to cost me a little over $4300 and I was wondering if you could pay the doctor half of that and then finance the rest or if you had to finance the total lump sum & then you make bigger payments on the monthly payments to get it paid off faster.
Or which way is better?
Thank you all SO much
A: Yes,you can.most require it.Check the interest rates at several places to make sure you get the lowest rates,another thing is many good plastic surgeons charge dramatically different depending on what part of the country they're in.I got a much better price in Florida and both docs checked out fine,board certified,etc.good luck!
Q: What construction financing is available if I have vacant land and an offer to buy a house on that land?
I live in an urban area and just found a vacant plot of land between two townhouses. I am interested in building a house with a cutting edge/modern design and eco friendly features. If I buy the land and hire an architect/engineer to design the structure, I have a few people interested in buying the house before it's built. If I have an offer from them to buy the house, what are my financing options for the construction of the project?
A: Construction perm loan would be best.
Q: What companies provide financing for a mobile home?
I live in a 1987 doublewide mobile home - its made out of wood not tin. I own it 100% and its valued at $40K+ but it needs work - like new windows and I would love to remodel the kitchen but have yet to find any companies that offer financing.
Per the county thats what its valued at - please don't answer if you are ignorant.
Its in a park - I was told by my bank they would finance moving it and a piece of land. I just want an improvement loan.
A: it's not worth 40k. not sure what upgrandes you are running... Marble floors, slate roof, oil paintings, imported tiles?
Q: What banks do financing on the wholesale side for spec homes?
I have a friend who is a builder and would like to use me for his mortgage broker. I have no problem finding banks who will do financing for owner occupied builder programs, but nothing for spec homes. A lot of the banks offer spec programs on the retail side, but I'm having trouble finding it wholesale. Thanks!
I do know what a spec home is
My rep at Indymac said that they only do owner occupied construction, but maybe there is another dept she's unfamiliarr with? I'll ask her again. Thanks!
A: I don't think you know what is spec home is. A spec home is just a home that is build in speculation of a buyer and was not a custom built home. 98% of all homes built are spec homes.
Q: Where can I gat financing for a truck and trailor from a private individual?
I need financing to purchase a 2000 379 Pete and Doonan trailor. Tractor is fully contained. Trailor has 10 side boxes with all equipment. This truck and trailor are job specific, they are specialized and the job comes with it.
A: Other than wealthy friends or co-signers., if your credit is bad, at least it should be good enough for a very high interest loan, especially if you have a written contract for a job that will last the duration of the loan.
Truck financing is only part, you road fees, diesel, insurance, maintance, etc costs a lot & if you happen to have a major problem before you get funds built up you are kinda up the creek.. 2000 trucks with trailer are not terribly expensive.
If you own property you can use that for collaterial. good luck.
Q: How does an American obtain financing for buying property in a foreign country?
I am looking to buy a flat in Romania. I currently own my own home in the US and have excellent credit. I can afford to buy another house but need a mortgage loan or other financing. Thank you.
A: As a small investor, you need to contact a local bank in Romania.
Q: How do I find a financing company to work with our home improvement business?
The business does renovations on homes - kitchen/bathroom updates, adding dormers, etc. But some people aren't able to afford the full price of the renovation up front. How can I find a financing company that would be willing to partner with our business to get loans for the customers?
A: you nedd a business with an option, try
http://www.orbitbusinessloans.com/
http://www.orbitmerchantsolutions.com/
:: No Credit Report required, Bad credit ok
:: No collateral required
:: No Upfront fee
:: Simple Application process
:: No set monthly payment
:: No Application fee
:: Unsecured Money
Q: What are the pros and cons of owner financing a home?
I have a home that I am interested in selling and am looking at various ways to entice buyers in this tough market. One option told to me was owner financing the property. What are the pros and cons as a person that would be financing my property? Also, what would be the difference if I still have a small mortgage on my property?
The property is in Pennsylvania.
A: Pros: you will have lots of buyers to choose from
you can make a good profit
you have the right to foreclose and take back the home
if payments are not made as the promissory note
states
Cons: You will need to screen all of those buyers
Profit is long term
You will have to go through the legal process to
foreclose if necessary
This is in my state of Texas, you should find out what the rules are where you are. Many investors in my area have become quite wealthy with owner financing. One reason is that when the owner forecloses, they lose all equity in the home and the financier can then sell the property again, keeping the last person's equity. Not saying this is right or wrong, just a fact.
Q: What is the difference between financing a car thru a dealership and getting an auto loan through your bank?
I'm purchasing a new car soon and I alaways see specials for financing a car thru a dealership. What is the difference? I was planning on going through my credit union.
A: It depends on what special financing you are talking about. If you mean the ones advertised on TV, such as 5.9% APR on the 2008 Fusions, this is not dealership financing. True dealership financing comes mostly from buy-here, pay-here lots. This is manufacturer financing and typically there is a cash rebate in lieu of the APR, so find out what your credit union will approve you for, as far as an interest rate.
Research the car you are looking to buy on edmunds.com and see what rebates are available to you in your area. Now when you pick out the vehicle, have the sales associate figure payments both ways
Q: What is the best method of financing for house flipping?
Whats the best way to get financing in order to flip houses, without taking a loan against my own home? Something with a low interest rate for a short time, or a fixed rate for a longer term?
A: In an interest-only mortgage, you pay nothing toward your principal debt for the first few years. On a $200,000 mortgage, for instance, a traditional 30-year-fixed mortgage at 6% might run you $1,500 a month, including principal, interest, real estate taxes, and insurance. Remove principal from the equation, and the payments drop to $1,300.
If you can't afford a $1,500 payment but $1,300 is manageable, if you plan to own the home for only a few years, or if you intend to resell it before the principal payments kick in, this arrangement can look like a great deal. But if interest rates increase, so, too, may problems. Most interest-only loans are of the "adjustable rate" variety, meaning that the 6% interest you start out paying can increase. Some of these mortgages adjust the interest rate every month.
Let's attach a dollar figure to this phenomenon. For every 1% increase in the interest rate, the payment on our hypothetical mortgage increases by $167. All it takes is a 2% rate hike to push that $1,300 payment to well over $1,600, and perhaps beyond a homebuyer's ability to pay. Bad situation for the homebuyer? Sure. But this also could spell trouble for lenders such as Countrywide Financial (NYSE: CFC), Wells Fargo (NYSE: WFC), J.P. Morgan Chase (NYSE: JPM), and many other banks offering this flavor of mortgage. Why? Because homebuyers using an interest-only mortgage do not build equity in their homes and so have less to lose by walking away from a house, and a mortgage, when they can no longer afford either.
If interest rates continue to rise, there's a good chance we'll begin to see a rise in such "walk-aways" and a consequent rise in the number of banks getting stuck with foreclosed houses they don't necessarily want. Simultaneously, we'd expect house-price appreciation to slow or reverse, since higher interest rates make houses less affordable. Assuming that both trends hit simultaneously, as seems likely, these banks could be setting up a situation in which they find themselves in possession of a lot of houses, just as houses become harder to unload on the market. And that would spell trouble for the banks and their investors alike.
Q: What recourse do I have when a dealership can't obtain financing and wants payments made to lower purchase amt
My son purchased a used car and the dealer indciated they would obtain financing. They could't then wanted him to make the payment they quoted to reduce the amount to be financed, saying this would enable them to get the financing. He opted to return the car for the deposit. We sent a letter stating all the terms and facts with the sell and explained that the car would be returned and requested refund of downpayment. An appointment was made to return auto but owner wasn't there and several calls with no response. What repurcussions are we looking at? Are there any suggestions in resolving this?
A: I'm assuming you purchased this vehicle in NSW.
Under the general terms of the Motor Traders Act (NSW) most vehicle purchase agreements are subject to finance approval. In other words, if you signed a purchase agreement at the dealer and applied for finance that contract is only valid provided the dealer can secure the necessary finance to finalise the purchase of the vehicle.
If the finance application was declined then typically the dealer must refund the deposit and the vehicle purchase agreement is deemed null and void. This isn't always the case but in the majority of cases holds true.
I would challenge the dealer on this and if they persist I suggest you contact the Department of Fair Trading (in NSW).
Dealers can be a little dodgy on this so hold your ground and challenge their knowledge of the law. Most of the time they will test you and when you quote specific legislation most will back down.
Good luck.
Q: How do I find out the financing arrangements negotiated within a real estate transaction for a property sold?
I am real estate student trying to appraise a comparable property. How to find out what expenses and financing used within the sale of a property already sold?
A: Go to the clerk and recorders office and look up the deed for the property and then at the documents recorded just before and after. It usually is the financing agreements. The recorder will also have a record of the trust deeds for the property and referenced to the names. If they are computerized it is a snap to find. Hope this helps.