College Parents Benefit From “Kiddie Condo Loans”

Despite its relative obscurity, a great investment tool for college bound students is growing in popularity among savvy college parents. The FHA loan program, affectionately nicknamed “Kiddie Condo Loans”, is one of the best programs out there to help jump start a student’s credit and provide a low down payment option for cash strapped parents to purchase a home for their son or daughter.For details on the loan program, I went to Steve Beecham, President of Hometown Mortgage in Alpharetta, Georgia. Steve’s excitement over the program is evident as he explains, “There are few programs, if any, left in the market place where a co-signer doesn’t have to live in the property.” The bottom line is a college bound student can qualify, with a parent’s help, for as little as $500 down.The FHA program actually requires three percent down. However, that three percent can come as a gift from several different places, such as:1. A relative by blood, marriage, or law2. The borrower’s employer3. A charitable organization4. The seller (can give up to six percent)One easy source for the funds might be the Nehemiah Down Payment Grant. This is a charitable organization that will fund up to six percent for the purchase; three percent of which can be used for the down payment and three percent which can be used for closing costs. Your mortgage lender would fill out the paperwork on your behalf. Six percent would be written into the purchase price as a contribution to Nehemiah. The organization in turn, at closing, gives all of it back to the seller, less a $500 contribution from the buyer. So, the net out of pocket from the buyer is the $500.Obviously, there are some ground rules for the program, some of which are:1. At least one of the buyers (usually the college student), must occupy the home. But extra bedrooms can be rented out to help defray the costs of the mortgage.
2. Qualifying guidelines are based on the student’s and the parent’s credit and income. Generally, both parties must have a credit score of at least 580.
3. If it is a condo, then a majority of the condos in the complex must be owner occupied.Also, don’t let the nickname fool you. This program can be used on virtually any property, not just condos. And, it can be used up to a maximum loan amount of $346,000 for homes inside Metro Atlanta.

Easy Home Equity Loans Here

You can get the best current home equity loan rate and insight here if you read carefully.Using home equity loan calculator to calculate your payments and learn more about home equity loans through the guides on this article will help you a lot. But with retirement accounts shriveling up, where will today’s seniors find the funds for life’s simple pleasures? The answer may be found in their home equity.It allows you as a homeowner to get a loan by using the equity in your home as collateral. Since it is a debt against your own property, which you are in actual possession of, an equity loan is a secured debt. The equity consists of whatever funds you have invested in your property in order to own it or improve it and can be obtained in a lump sum or used as a revolving home equity line of credit.Using a equity line of credit to pay off the mortgage can be risky and dangerous if not handled well, it is a type of second mortgage, not to be confused with a home equity line of credit. Payments on equity loan may be tax deductible.The main thing is that you can lose your home if you fail to meet the payment schedule required by the loan.this type of loans are typically junior loans and should not be confused with a basic refinance, which means paying off an existing mortgage and replacing it with another loan.It is very important to understand that the lender’s security for the loan is your home, meaning if you go into default and do not make your mortgage payments or otherwise abide by the terms of the loan, the lender has the right to foreclose. There is what is called bridge loans, these Bridge loans are used by sellers who want to buy a new home before selling an existing home but need the cash from the existing home.Some lenders demand the borrower obtain the financing for their new home from the lender making the bridge loan.This is one of the main reason many sellers obtain bridge loans instead.

Home Equity Line of Credit – 6 Ideas For Making Your Equity Grow

Take advantage of the equity you have built up in your house using a home equity line of credit. Interest rates are currently near all-time lows so the timing is good for those who have enough equity to borrow from their home.Instead of using the money to spend on expenses and more liabilities, such as a new car or an expensive vacation, why not take advantage of the money by investing it in opportunities that could end up paying you more later on? This can be a smart way to get ahead by creating more personal wealth.Consider these six ideas to help get started:1. Invest in a home improvement project that will help increase the resale value when you decide to move. Experts suggest that bathrooms, kitchens, basements and garages offer the most return for your money. Talk to a local real estate agent to get a sense for what offers the most value in your neighborhood and then put the cash to work. But be careful not to overspend – even a basic home improvement project can be enough to add value to your home.2. Consider putting some of your equity in a high-interest bearing investment such as preferred stock, a government bond or mutual fund. For this to make sense, the investment ought to be relatively safe and offer an interest rate higher than what you are currently paying on your home mortgage.3. Many great businesses are started with home equity lines of credit. If you have a great idea or even an existing business that needs some capital, consider using some of the equity in your home for this purpose.4. Think about investing in a rental property. Take advantage of the current low interest rates and purchase a rental property that will provide a stream of future cash flows over time. Use your home equity line of credit to make the down payment.5. Consolidate high-interest bearing credit cards to help potentially save thousands of dollars in finance charges. This could also help improve your credit score by lowering your utilization ratio – the amount of total debt to available credit. With an improved credit score, future loans can be secured with a lower interest rate.6. Invest in you! Using a home equity line of credit to go back to school or to take a class that will help you further along a career can pay great dividends for years to come. Studies show that people with bachelors degrees earn more than their peers who do not have one. The same is true for those with an advanced degree.Too many consumers use a home equity line of credit to get into even more debt. Avoid making this costly decision and instead think smart and invest for your future to truly get ahead.Save yourself the most time and money by applying for a home equity line of credit online with a company that provides multiple quotes from various loan providers.

Thoughts on Paying For College Beyond Just Loans

You’ve made it through all of it – high school, prom, applications – and now you have finally been accepted into the college of your dreams. Move over mom and dad, it’s time to hit the college road. The only question now is, how do you plan to pay for your education?If you are like most newly accepted college students, you probably plan to apply for a number of student loans in order to help with those payments. And, let’s be realistic here. You probably plan to go for the maximum amount of money just in case you have to spend a bit on, um, books.While this strategy is one that is adopted by nearly every college student on the planet, more students than ever before are graduating with a boat load of debt. How much debt? Roughly seventy percent of all college students these days rack up around $20,000 worth of student loan debt.This number may not seem like much to you now, but it will seem like a lot when you start getting those repayment bills four years from now. Four years seems like a long way away, doesn’t it? Make no mistake about it, those four years fly by far too fast leaving you with a lot of hefty bills.So, how can you avoid this horrid fate? Well, choose your loans (and loan amounts) wisely. Should you have any amount of money currently save up, use this money to pay for some of that tuition prior to applying for loans. You may be a bit skeptical about spending this money on loans, but it is worth it.Should you have a decent job that you plan to hang onto in college, try and pay for your courses one by one without applying for loans. If you are spending your pay check as soon as you get it, now is the time to realize that you must start saving some of that money.You’re young, free, and ready to experience life, so you don’t have to save all of the money that you work hard for (after all, you do want to enjoy those college years too). Still, save enough to cover your courses, books, and tuition if you can. This way, the accrued debt will be a lot less when you graduate.It may be hard to think of those inevitable student loan bills now, but when those four years are up you will be glad that you did. Enjoy your college years, get a great education, and find a superb job that you love. Just don’t wind up owing more than you can handle when you graduate.