Land loans can be broken down into two subdivisions; residential and commercial. This distinction makes it easier for one to understand their terms and conditions since there can be a few differences between the two. There are various financial institutions in the market who offer both types of loans. Keep in mind that once again, terms and conditions of a land loan can vary depending on the type, the lender, or even the future prospects of the property and neighboring land.
Residential land loans are also sub divided into two more specific categories. Namely, the residential lot purchase and residential lot refinance. In case of a residential lot purchase, the customer applies for a land loan in order to construct a house for residential purposes while in the case of a residential lot refinance, the customer is hoping to acquire an already existing residential property.
In general, residential land loans are primarily for residential purposes, whether you are purchasing land for future residence or buying a pre-built house. Most land loans are usually available through a 30-year mortgage with a 3 year amortization term. Normally, the minimum amount sanctioned for such loans is about $ 75,000 and can go up to $ 500,000. As an applicant, you must be able to provide full income documentation in order to get approved for such land loans. The rate of interest varies with the different financial institutions, and if the loan is taken in order to improve or build a residential property for rental purposes, then it will be approved only after accessing the future prospects of that property.
As you would expect, there are two subcategories to commercial land loans as well. One is for agricultural land and the other is for commercial lots. An agricultural land loan will depend on the productivity of the soil and the financial institution will assess the loan after going through an assessment of the soil and the productivity of the land. When it comes to assessing a loan application for a commercial lot, the financial institution will once again research the future prospects of your prospective business. On an average, the minimum amount sanction for commercial land loans is around $150,000 and can max out at two or three times that. A very important aspect of loans for commercial lots is that most of them are offered with a fixed interest rate loan.
As always, conduct your research and make an educated choice when it comes to land loans or any other types of loans that are being offered to you.
Monday, August 10, 2009
No Doc Loans and Their Convenience
Getting a loan sanctioned has become a much harder task with the vast amount of documentation that's required from most financial institutions. Minor financial issues from your past or losing one of those many documents can lead to a disapproved loan. Then there is the time issue. It can take up to months for a bank in order to properly examine a traditional loan application. Many customers shy away from loans, just because of the high level of documentation that they have to produce in order to apply for them. Some even think that giving a detailed account of their personal life for a loan is risky. Guess what? There is a way to work around all that. Several financial institutions have come up with a new form of loans, commonly known as no doc loans or no documentation loans. They offer customers the ease of less paperwork, and only ask for slightly higher interest rate in return.
If you don't have all the necessary paperwork to qualify for a regular loan or if you just need to get a particular loan sanctioned due to a sudden emergency, then no doc loans are your solution. With no doc loans, you need minimum paperwork and the processing time is greatly reduced. Most of the times, financial institutions just look for proof of income and residence in order to start processing no doc loans. There is no need for any additional documentation.
However, it's not all nice and sweet. The ease of no doc loans comes at a price - higher interest rates. It is basically a good option for those customers that can afford to pay the higher rate of interest and need the loan approved promptly. You must assess the advantages and disadvantages carefully before making your decision.
If the high interest rate seems like too much of a turn off for you, think again. How many times have you wished for those few extra cash in order to get a great deal? There are emergencies, like a dream home going for sale with a deadline that's approaching. No doc loans would be the way to go in such a scenario.
The bottom line is that if time is pressuring you and you need a quick loan for any reason, then no doc loans are your best option out there.
If you don't have all the necessary paperwork to qualify for a regular loan or if you just need to get a particular loan sanctioned due to a sudden emergency, then no doc loans are your solution. With no doc loans, you need minimum paperwork and the processing time is greatly reduced. Most of the times, financial institutions just look for proof of income and residence in order to start processing no doc loans. There is no need for any additional documentation.
However, it's not all nice and sweet. The ease of no doc loans comes at a price - higher interest rates. It is basically a good option for those customers that can afford to pay the higher rate of interest and need the loan approved promptly. You must assess the advantages and disadvantages carefully before making your decision.
If the high interest rate seems like too much of a turn off for you, think again. How many times have you wished for those few extra cash in order to get a great deal? There are emergencies, like a dream home going for sale with a deadline that's approaching. No doc loans would be the way to go in such a scenario.
The bottom line is that if time is pressuring you and you need a quick loan for any reason, then no doc loans are your best option out there.
Loans For the Unemployed - Financial Help For Unemployed People
You may get frustrated when you are out of job and you are not having enough money in hand to pay your urgency. Unemployment is the phase that one can face it in any point of time. Are you seeking a satisfactory job and need cash help till the time? Loans for the unemployed people can be termed as a helpful financial source. These loans enable you to meet your urgent cash needs without any discomfort.
To get a liberty of borrowing the money, loans for the unemployed can be the finest approach. You can apply these loans from anywhere in the world but you should have a computer with internet. You just need to fill out a simple form with relevant details. The money can be transferred in your checking account within least span of time. The lack of paperwork plus taking away the faxing formalities makes the application and approval simpler and quicker. With the borrowed money you can easily pay off your unpaid debts, urgent bills, and purchase a car at ease.
You can find this loan option in two forms, these are secured and unsecured from. The applicants who are enable to pledge a security against the loan amount can go for secured scheme. The collateral may include your vehicle, real estate or any residential property. On the other hand, unsecured form does not require you to place any collateral. There will be slightly higher rate of interest with unsecured form. In unsecured form, unemployed loans have a loan amount limited to £25000 and a repayment term that lasts up to a maximum period of 10 years only.
Applicants do not have to concern about their bad credit scores. No matter if you are having various imperfections in your credit status like arrears, bankruptcy, and insolvency and so on. You can simply obtain funds for your particular requirement without any restriction at all.
If you are frightened in availing a loan help of being a jobless, loans for the unemployed is the suitable option. You can easily meet your demands with sufficient amount of cash with swift terms and conditions.
To get a liberty of borrowing the money, loans for the unemployed can be the finest approach. You can apply these loans from anywhere in the world but you should have a computer with internet. You just need to fill out a simple form with relevant details. The money can be transferred in your checking account within least span of time. The lack of paperwork plus taking away the faxing formalities makes the application and approval simpler and quicker. With the borrowed money you can easily pay off your unpaid debts, urgent bills, and purchase a car at ease.
You can find this loan option in two forms, these are secured and unsecured from. The applicants who are enable to pledge a security against the loan amount can go for secured scheme. The collateral may include your vehicle, real estate or any residential property. On the other hand, unsecured form does not require you to place any collateral. There will be slightly higher rate of interest with unsecured form. In unsecured form, unemployed loans have a loan amount limited to £25000 and a repayment term that lasts up to a maximum period of 10 years only.
Applicants do not have to concern about their bad credit scores. No matter if you are having various imperfections in your credit status like arrears, bankruptcy, and insolvency and so on. You can simply obtain funds for your particular requirement without any restriction at all.
If you are frightened in availing a loan help of being a jobless, loans for the unemployed is the suitable option. You can easily meet your demands with sufficient amount of cash with swift terms and conditions.
Saturday, May 19, 2007
WHAT IS A LOAN ?
A loan is a financial transaction in which one party (the lender) agrees to give another party (the borrower) a certain amount of money with the expectation of total repayment. The specific terms of a loan are often spelled out in the form of a promissory note or other contract. The lender can ask for interest payments in addition to the original amount of the loan (principal). The borrower must agree to the repayment terms, including the amount owed, interest rate and due dates. Some lenders can also assign financial penalties for missed or late payments.
Because a loan can contain many hidden costs such as interest payments and finance charges, many people tend to avoid applying for one until it becomes absolutely necessary. Purchasing a new vehicle or home almost always necessitates some form of financial loan, whether it be a bank mortgage or a private loan with the seller. Financing a higher education may also require a federally-backed student loan. Interest rates on these types of large loans can be fixed at the time of the application or may vary according to the federal prime interest rate.
There is a very important legal difference between a gift and a loan. A very generous relative or friend may give you $5000 for car repairs, for example. If there is no expectation of repayment, the money can be considered a gift. The giver could not sue for repayment later in a civil lawsuit. But if the lender designates the money as a loan and the borrower pays back even one dollar, the money can be considered a legal loan and the lender can demand repayment any time. Small claims courts spend much of their time determining whether or not a transaction involving money was a gift or loan. This is why paperwork is essential when making private loans to friends or relatives.
Most loan applications are handled by banks or other professional lending institutions. They may use any number of criteria to determine if a potential borrower is eligible for a loan. Past credit history is almost always considered, along with current income and assets. The purpose of the loan may also be a factor--a proven investment opportunity may have more appeal than an unproven idea for a new restaurant. One important consideration is the income to debt ratio of the borrower. Can the borrower afford to pay the loan back with interest? Professional lenders essentially 'sell' money, so borrowers must realize how much a loan actually 'costs' in terms of real dollars and cents.
Because a loan can contain many hidden costs such as interest payments and finance charges, many people tend to avoid applying for one until it becomes absolutely necessary. Purchasing a new vehicle or home almost always necessitates some form of financial loan, whether it be a bank mortgage or a private loan with the seller. Financing a higher education may also require a federally-backed student loan. Interest rates on these types of large loans can be fixed at the time of the application or may vary according to the federal prime interest rate.
There is a very important legal difference between a gift and a loan. A very generous relative or friend may give you $5000 for car repairs, for example. If there is no expectation of repayment, the money can be considered a gift. The giver could not sue for repayment later in a civil lawsuit. But if the lender designates the money as a loan and the borrower pays back even one dollar, the money can be considered a legal loan and the lender can demand repayment any time. Small claims courts spend much of their time determining whether or not a transaction involving money was a gift or loan. This is why paperwork is essential when making private loans to friends or relatives.
Most loan applications are handled by banks or other professional lending institutions. They may use any number of criteria to determine if a potential borrower is eligible for a loan. Past credit history is almost always considered, along with current income and assets. The purpose of the loan may also be a factor--a proven investment opportunity may have more appeal than an unproven idea for a new restaurant. One important consideration is the income to debt ratio of the borrower. Can the borrower afford to pay the loan back with interest? Professional lenders essentially 'sell' money, so borrowers must realize how much a loan actually 'costs' in terms of real dollars and cents.
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