AMI-School.com » Finance

How do I finance a house down payment while I am still making payments on the home I am trying to sell?

Henri Decaneau — Sun, 28 Nov 2010 02:04:49 +0000

The buyer for our home just backed out and we have to close next Friday on the house we had made an offer on. We don’t have enough cash on hand without our equity in this house to make the down payment. Is there anyway we can get a loan to make the down payment so we can move ahead with the purchase. I would rather not get a bridge or finance 100%.

Good evening. Your best option is going to be to do an 80/20 combo loan. This way you will finance an 80% first mortgage and a 20% second mortgage/home equity line of credit. In essence this is a 100% loan but you can use the proceeds of the sale of your Home (whenever you sell it) to pay off the 2nd mortgage/home equity line of credit.

Another option is to borrow from a 401k if you have one. You can take a loan out on your 401k and simply pay that money back once you sell your home. If you have an IRA, you can take out a 60 day loan on that as long as you have it paid back within 60 days, which could potentially be risky if you can not pay it back within that time.

Last option, and least recommended, is to borrow from credit cards, take out a personal loan, borrow from family, etc… This may be a quick fix and can possibly solve your short term problem. Many credit card companies offer specials on cash advances periodically, so call around and ask your credit card companies if they have anything going on right now.

As someone else stated, you should have had a clause in your contract that stated you buying the home was contingent upon selling your home. Although some sellers will not accept bids with this clause in their contract because this could potentially place them in a bind as well if you need to back out. Best of luck and I hope the information helps. See the links below about down payment ideas.

How does islamic finance /mortgage actually work in plain english please?

Henri Decaneau — Thu, 25 Nov 2010 12:41:28 +0000

I dont understand Finance at the best of times and this is even more confusing.
So basically you are still paying the interest, its just dressed up.
Interest is interest just cos you put halal/islamic infront of it doesnt make it all right.

Well in western banks…you borrow the money and pay it back with interest….but what you buy with it is yours.

In the islamic banks……based on the length of your payments….the banks figure out how much interst you would have paid. Then they then buy the house…they tack on the estimated interest to the price they bought it for…then sell it back to you at that price.

So lets say you wanted to buy a house for 100,000$. Pay it back over 10 years…lets say the interest would have added up to another 100,000.
So they sell the house to you for $200,000….and you make payments…you never own the property until you pay it off though.
They don’t give you any money…so its not a loan….its "trade".

I heard that’s changing somewhat..so you can sell your lease….otherwise…if after 5 years you want a new house….since you never owned that house…you don’t get the money back that you put in..plus you’re out of a house.

Bad Credit Auto Finance Also for New & Used Cars

Henri Decaneau — Wed, 24 Nov 2010 09:58:28 +0000

With Today’s economic situation every individual can only dream of buying a new car. In such condition Bad credit auto finance is really a kind of blessing for people facing credit problems. According to the national survey every individual searches for some credit repair solutions. Form this we can conclude market situation of people opting for auto financing.

This auto Finance is designed for people who need a car but cannot get them financed as they carry a poor credit. The money lenders operating online do not care about your past. They say that they are not interested in your past. They believe in your present and hence will finance you your car even if you have a poor credit.

Bad credit or no credit history is no more a hindrance that you have to face while applying for loans in order to purchase any auto of your choice.

The main advantage to auto loan with bad credit online is that they can be applied online without much of a paper work from your end. All that you need to do is apply for the loan online and you will get a reply within 24 hours of your application. Some of the lenders even have a 24 hours customer assistance centre that will help you in any time you need. The amount of the loan will vary by looking at your financial situation and also after reviewing your repayment potential. In most the cases part of the cost of the vehicle is born by the lender, but in some cases the lenders even does a full finance for the vehicle.

These loans are available online these days and that is why you can get the finance for your car instantly. This are mostly secured car loans in feature because the lenders in most of the cases will do a credit check on you before giving the loan. It is only because of this reason the rate of interest is much higher that the normal loans that you get in the market. The period of repayment can be either short or long. In case of the short term loans the amount of interest is much higher while the long term loan will give you a lower rate of interest. In case of the short term loan you have to pay back the money maximum within a period of 2-5 years while the long term loan can be repaid back for a period of 20-25 years. You can always go for a pre car loan rate check before applying.

Financial help is available for new and used cars also for the vehicles used for commercial purposes. The rate of interest will come down if you can give a sufficient amount of money as down payment for the loan or if you can pledge collateral as security to the lender. The offers like Low rate Used Car Loans are available.

Karl Caprio
http://www.articlesbase.com/loans-articles/bad-credit-auto-finance-also-for-new-used-cars-711665.html

I just got my masters in finance from a good school. How far am I from making atleast 150K?

Henri Decaneau — Sat, 20 Nov 2010 01:42:32 +0000

I have decent experience (3-4 years) in the finance field. How long will it take me to make that kind of money? How often do
Finance people make that kind of money?

Your question is too broad and unclear !!
Please state what you mean by "decent experience" ?
What is the field in which you are employed ?
What is your level of Exposure ?
Unless details are available, any answer to your question will be hypothetical and far from reality !!!

How possible would it be to finance a rather cheap house?

Henri Decaneau — Wed, 17 Nov 2010 08:53:12 +0000

Ok, this is starting to get rather confusing. I am looking to buy a Home in a surprisingly cheap neighborhood. The house I am interested in purchasing is under $50,000. My credit qualifies me for a bad credit loan, but no one wants to finance for such a small amount. I am definately trying to live within my means and do not necessarily want to purchase a higher value home just because I can. Does anyone have any idea where I can finance such a house even though my credit is tarnished (but getting fixed due to multiple discrepencies)? I know there are different requirements depending on the state. My state is PA, and I am first time homebuyer.

yes of course theres a way! it sounds as if the banks/mortgage companies you are contacting just are not the right ones. If you have blemished credit there are still tons of places out there willing to lend you the money- some may want a down payment or minimal downpayment – but there are sometimes ways to work around that, you just need to get ahold of the right people. It makes no sense at all that they would be willing to lend you more – but not less. So that leads me to believe that possibley this home you want to buy needs work? if thats the case then you may have better luck looking either towards a government loan such as 203k if you qualify, and if not maybe towards a investor loan (hint google search hard money in your area). you might want to try country wide at 1-800-825-4549, or priority at 1-888-685-5885, or 813-473-4702. from my experiences none of these places have a minimum they will lend- but some of it depends on the home. If your credit is that bad- you may beed a small down payment. If in a couple of months you have exhausted your resources – then maybe you should work on getting your credit repaired.! here’s a site worth looking at if thats the case: http://www.ftc.gov/bcp/conline/pubs/credit/repair.shtm.
good luck

How to finance a new Mustang with bad credit and low down?

Henri Decaneau — Sun, 07 Nov 2010 11:07:57 +0000

Any ideas? I make good money, nearly 3-4 thousand dollars a month. But I’m self employed and have collections because of past medicals. Does Ford Motor finance people like me? I talk to dealers here and they try to take 3-4 thousand down to switch me to a 2002 escort.

I don’t mean to sound rude, but take a hint. If the Finance companies want a HUGE down payment it’s because they think either you are a high risk or with your current bills, cannot afford the payments on the car with so little money down. Apparently Ford finance thinks you can only afford the payments if they were based on $3-4k down. That’s usually a big hint you would be living beyond your means. If you don’t have much money to put down on any new car, it’s a sign you can’t afford the vehicle. If you have to finance your life away for something, you simply can’t afford it.

How to finance investment property with almost zero down?

Henri Decaneau — Wed, 03 Nov 2010 14:40:12 +0000

I own two condos one, I live the other I am renting out. Both dont have any equity yet. I already have 51% debt to income. I can still afford MXM 5K down including closing costs and tax prepayments. My interest is to buy foreclosures and sell after ~2 yrs. I am aiming at high end units that can currently be bought at ~200K but will apraise to ~350 in about 6mos. Is there a way to find finance in this situation.

get a team of people who have money to finance this deal and split the profits. Hard money lenders will lend up to 65% of the appraised value. However, I worked with some that based the loan on the property itself as I am very sharp into finding good deals and have built a trusting relationship with them.

You could also control the property by having a 6 month purchase option contract on that property and then assign your rights to a Retail buyer or other investor.

Trust me, if you can find deals like that, finding the money is easy.

Regards…

How to convince recruiters about a career change to Corporate Finance?

Henri Decaneau — Wed, 27 Oct 2010 09:21:49 +0000

I am an Industrial engineer and want to make a move to Corporate Finance, one of the questions I get most often is why do I want to make such a career change and how I see myself fit into this role ? or justify how you can do well in Corporate Finance role despite your non finance background?
I am currently enrolled in a full time MBA program and planning to take finance courses but I want to know how I can really sell myself on this idea ?

You need to find a hiring manager that will take a chance on you. Avoid head hunters or recruiters. They are looking for easy, no-brainer, matches. They are usually a step up from used car salesmen in my opinion.

You may need to take a cut in pay to make this happen. I made a career change in IT from one technology to another and I was able to find a manager that took a chance on me, but I had to take a 20% cut in pay. At the time, I had no mortgage or kids and I was able to do it without it seriously impacting my lifestyle.

Good luck.

What is the different between finance and accounting?

Henri Decaneau — Tue, 19 Oct 2010 15:39:49 +0000

What is really different between finance and accounting?

Finance: is money management, including investment.

Accounting: make records for the profit and liability.

Is that right?

You finance to Finance and account to accounting. LOL

Finance Debt Consolidation: Solve Your Financial Woes

Henri Decaneau — Fri, 15 Oct 2010 04:21:37 +0000

Finance debt consolidation is a type of loan that allows you to easily waive off your existing piled up debts in easy manner. All your existing and unpaid debts are consolidated into a single one. These consolidated debts can be financed from a new lender or one of existing lenders. The new loan is more manageable and affordable in terms of the loan repayment. The new loan is offered at lower rates of interests so that you are not burdened and could repay the loan conveniently.

The loan amount offered through finance debt consolidation depends on you outstanding debts, mortgages and unpaid expenses that have to be paid off. Also before approving your loan amount lenders check on your repaying ability, annual income and financial standing. It is suggested that you should borrow an amount only to an extent that can be repaid back; so just take a careful step so as to avoid any further addition to your problems. The installments are kept small and can be scheduled on the basis of your capability.

Not only this, Finance debt consolidation also exempts you from harassing calls of your previous lenders as you have to make payments to your new lender and not the previous multiple lenders. Making payments to a single lender is much more convenient and easy.

Finance debt consolidation can be applied online and from banks as well. You just have to fill up a simple form to apply and the processing starts immediately. Through a little research you can find affordable rate deals also; just compare a few loan quotes and select the best one.

Once you are able to waive off all your existing debts with the help of finance debt consolidation then your credit scores will improve automatically. It is a slow process and till the debt consolidation process your scores remain low but once all the accounts are settled and loan is paid in full then your scores show up positive in your credit report. This will enable you to qualify for conventional loans at lower rates in future.

Gracie Bishop
http://www.articlesbase.com/debt-consolidation-articles/finance-debt-consolidation-solve-your-financial-woes-698919.html