Get a No Credit Check Mortgage
January 19, 2012 | 
Author There are many reasons you may need a no credit check mortgage. Some of the most popular reasons you may need such a mortgage are having no verifiable income, or having a great income, but poor credit score or no credit history. If you have your own business, especially if it’s fairly new, you may have a very high income, but you may not have either the income history or documentation required by most mortgage lenders. The same is true if you did very well in investments at an early age or are a professional athlete early in your career. What are you supposed to do? Unless you have enough cash on hand to actually purchase a property outright, you’re going to need a mortgage. Unfortunately, many mortgage lenders won’t give you the time of day unless you can verify your income and credit history. If you don’t have either, you’ll be out of luck.
Fear not, there is hope if you want a mortgage but don’t want to get a credit check first. It won’t be as easy as running to your neighborhood bank or mortgage broker, but you’ll be able to get that mortgage and purchase your house. You will probably have to do more legwork to find a mortgage lender that is willing to loan money to you without performing a credit check.
Look at it from the lender’s perspective. It is much easier, less expensive and more accurate for them to assess your ability to repay your mortgage if they can check your credit. Any lender is interested in your ability to repay their money. The more difficult it is for them to determine weather or not you can do so, the higher interest rate you’ll typically pay for your mortgage. You can still get a mortgage if you don’t allow them to run a credit check however.
They may require a larger down payment in addition to a higher interest rate. In some cases they may not give you a higher interest rate, but you may have to have at least 20% down. The larger your down payment is on the property, the lower the risk for the mortgage lender. If they need to foreclose, they stand to have your equity to recover their costs. In addition, experience has determined that the larger your down payment, the less likely you are to default on the mortgage. Again, it’s about the lender lessening their risk.
You’ll probably have to approach many lenders in order to find those willing to work with you, and to get the best interest rate and fee structure for your loan. In any case this is a good approach to take. You want to be able to compare the loan package from several different lenders, especially in the case of a no credit check mortgage. Lenders know your options are limited compared to a conventional mortgage. That’s another reason you stand to pay higher interest rates and fees.
So, don’t give up in your search for a no credit check mortgage. There are lenders that will make your dream a reality. Weather you work with a mortgage broker, or other service that looks at mortgages from several lenders, you probably have to compare what you are offered from multiple different lenders. They key to getting a great mortgage is to get out there and look.
Fannie Mae and Freddie Mac New Guidelines
Fannie Mae and Freddie Mac make it harder for home buyers and real estate investors with mortgages on Condos. It’s hard to really understand why these giants corporations are tightening their regulations while the government is trying to fix the economy. If you’re a condo home buyer or a condo home seller you should read this article because it might change the way your realtor presents your property.
These days most real estate purchases are done by real estate investors. This is a great time for all investors to put the money they’ve saved in the past years in real estate, but purchasing condos is a little different animal I guess unless if you will purchase the property cash. Condos are a little different than single family residents by all means, also by the way they’ve getting financed by banks or the government.
Fannie Mae and Freddie Mac have said in march that they will no longer guarantee mortgages on condos in buildings where fewer than 70 percent of the units have been sold. They’ve created controversy, this may drive the condos market down because they are one of the main investors in America to land money on real estate. I’m thinking how the first 70% of condos will sale if home buyers and/or real estate investors can’t get a loan to purchase them.
While I’m thinking about Fannie Mae and Freddie Mac’s new regulations and thinking about the real estate market and the economy crisis in the world I discovered another new reason why Fannie Mae and Freddie Mac will not land money to new home owners: “delinquency in home owner association dues. I really don’t know why it’s so important that while a home buyer with a great credit comes to purchase a condo in a building that other homeowners weren’t responsible enough to pay the Home owner association dues will not qualify for a mortgage.
Fannie Mae and Freddie Mac said they will not guarantee mortgages to condo buyers if 15% of the homeowners in the building are delinquent on the homeowner association dues.
That’s what I wanted to talk about today just to give you readers some general information about the market.
Good Luck.
Posted in Fixed Rate Remortgage Articles | 
Tags: Design, Development, Fannie, Freddie, Guidelines, Proposal, Request, Writing | 
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When Should You Remortgage Your Home?
If you’re a homeowner, you’ll know only too well the cost of owning a house. With ongoing maintenance costs, council tax and more, often being a homeowner is at the expense of things like holidays and new cars. However, this needn’t be the case, with remortgages proving extremely popular over the last few years when it comes to needing extra money.
Additionally, remortgages are also an excellent way to make sure you continue to get the best interest rate available, and offers you the chance to change mortgage lenders or providers if necessary. Despite this, many people still aren’t taking advantage of this opportunity, through a mixture of misunderstanding and belief they have the best deal anyway. This is why it’s important to look at what a remortgage can offer you.
Getting a Better Interest Rate
One of the prime reasons for remortgaging your home is that it can help you choose a better interest rate than what you’re currently paying. For example, when you first buy your house, you’ll usually either take out a fixed-rate mortgage or one that has a variable rate.
Because interest rates fluctuate quite often, it doesn’t make sense staying in a fixed interest rate mortgage that is charging 5%, when you could easily swap to one that’s only charging 4.5%. The same goes for variable interest mortgages – use the opportunity that a remortgage offers you to swap to a lender that can offer you a lower interest rate than what you’re currently paying. Even if you find that there’s a penalty for doing this, the savings you make will be more than worth the cost.
Release the Equity in your Home
Another benefit that remortgaging your home can offer is that it can release a lump sum of money whenever you need it. This can be for a variety of reasons, and best of all it’s often far cheaper than taking out a more traditional loan from a bank or similar.
Many homeowners are now using the equity in their home to pay for things like a child’s wedding; home improvements and renovations; or even a luxury cruise for a special occasion, such as a golden wedding anniversary. You can even use the money release by a remortgage to buy yourself a new car – unlike a lot of normal loans, there’s no restrictions on what you use the money for.
How it Works
One of the reasons there are still so many people not making use of this easy way to free up some extra money is that they misunderstand what a remortgage involves. However, it’s a fairly straightforward process yet can make such a difference to you financially.
At its simplest, remortgaging your home is simply replacing your current mortgage with a new one. This may mean only changing the type of mortgage you have with your current lender, or changing lenders altogether. Just like an actual mortgage, there are a host of different rates and types of remortgages available to you, so before you make the final decision, make sure you shop around.
What is a Mortgage Checking Account?
So you scrimped and saved and found a way to buy your first home. You’re proud of the fact that your efforts have earned you a substantial down payment, allowing you to get a smaller loan to pay for the house. Your friends tell you to get an interest only loan or a short term ARM. “Rates are much better,” they tell you “and you can just refinance before it adjusts.” While it may be tempting, you’re no dummy. “Only a fool would get something other than a 15 or 30 year fixed!” You can still hear the words of your father counseling you about the purchase.
Not quite being able to afford the 15 year payment, you opt for the 30 year and couldn’t be happier. Your rate is good, your rate is fixed, and your paying down your house with each payment. You did the smart thing . . . right? While it’s true that a 30 year fixed offers you the peace of mind that your loan will never adjust, there’s a serious flaw that most people see but just don’t grasp enough to do something about. Have you ever took the time to add up how much that peace of mind is actually costing you?
Consider this: a $200,000 loan with a 30 year fixed rate of 7% takes 29 months and costs you a jaw dropping $33,000 in interest just to pay down a mere $5,000 of principal. Don’t believe me? Find any online Amortization calculator and see for yourself. Doesn’t seem very fair, does it? Let’s be realistic about this. We all know that banks take quite a bit of risk in loaning you hundreds of thousands of dollars. They deserve compensation for their risk but $33,000 to your $5,000?! And that’s just the first 29 months – over the entire life of the loan (30 years) that $200,000 will actually cost you a total of $479,000!!! I know it’s a tough pill to swallow but relax, there IS a better way. . . Enter the Mortgage Checking Account.
By combining your mortgage with your checking account, you can harness those lazy, idle dollars that sit in your checking or savings account at the end of each month and put them to use for you in your mortgage in the form of paid down principal. Each month you start with a lower loan balance and since the payment is based on a daily balance, you pay less interest each month. Consider the following example: Let’s take the same $200,000 we used in the previous example. Let’s also say you make $4,000 per month in net income and that you pay a total of $3,200 in bills each month, including you mortgage payment. That leaves you with $800 a month left over. You deposit your paycheck into your checking account as usual and after your bills are paid, that $800 that would have sat in your checking account doing nothing, now sits in your mortgage. You started with a loan balance of $200,000 but now, after only 1 month, you owe $199,200. And that’s what next months payment will be based off of. Repeat this 5 more times and what would have taken you 29 months to do with a 30 year fixed, now took you a mere 6. The best part is, however, what would have cost you $33,000 in interest, now was cut down to just under $7,000. Feel better? It gets even better.
Because this is a checking account, you can access your money the same way you normally would with a conventional checking account. Free unlimited checks, on-line bill pay, ATM and a debit card can be used to access your cash or pay your bills. This loan is a great tool for those wanting to pay their house off in half the time, reverse mortgages and investors looking to accumulate cash while saving 5% – 8% in interest each month. While the mortgage checking account can be an outstanding tool for some, it’s not for everyone and not everyone can qualify. Your money should work for YOU, NOT the banks.
What Happened to the Ameriquest Mortgage Company?
The Ameriquest Mortgage Company was one of the leading lenders in the United States lending scene. Founded in 1979 in California as a bank then called Long Beach Savings and Loan, it was converted to become a mortgage lender in 1994 and was renamed Long Beach Mortgage Co. The business had two divisions with its retail part being privately run and called Ameriquest Capital. Its wholesale part was publicly traded and was called Long Beach Mortgage.
The Ameriquest Mortgage Company was a private company owned by Mr. Roland Arnall of ACC Capital Holdings. By 1999, Washington Mutual bought Long Beach Mortgage. In 2007, Citigroup acquired the wholesale division of the Ameriquest Mortgage Company.
It was one of the first mortgage companies to employ computers in doing business. This was an effective way of speeding up the processing of loans. Ameriquest Mortgage CompanyâEUR(TM)s services included providing business solutions, direct loans, seeking alternatives for effective business relations and providing financial and educational means to its customers.
When Ameriquest Mortgage Company was still engaged in business, they used to offer two types of mortgages. These were the Fixed Rate Mortgage and Adjustable Rate Mortgage. Fixed Rate Mortgage has a fixed interest rate and only a single monthly payment for principal and interest for the entire loan period. The Adjustable Rate Mortgage was viable for people who tolerated high risk and wanted lower initial monthly payments.
The company was well-known in the United States since it was well advertised through television, blimps, and its sponsorships of concerts and NASCAR drivers. They even had a slogan stating that they were the proud sponsor of the American dream.
Ameriquest was also widely known for its community programs and charitable works. They believed that homeownership, youth development and financial literacy were the building blocks of ideal communities. And with this belief, they created specialized programs for each block. For financial literacy, Ameriquest created programs that help young people to develop planning and money management skills. Homeownership programs invested efforts to provide low income families a chance to own their very own homes. Youth development supported educational services and geared programs to give young adults the tools in becoming productive people.
During the later part of 1995, Ameriquest got into trouble with its customers since they complained of fraudulent mortgage services. By 1996, the company, in its attempt to save its tarnished image, agreed to a $325 million settlement for the customers. And although it was seen as a victory for their customers, it did little to reduce the damage done since most properties were up for foreclosure already. At present, Ameriquest Mortgage Company is no longer accepting loan applications since its sale to Citigroup in 1997.
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Refinance or Second Mortgage? Combining 1st & 2nd Mortgages Together
I had a recent conversation with one of my clients, Mr. Jackson, who is a finance savvy homeowner from Virginia Beach, VA. He asked me an interesting question that I wanted to share with you, because it seems to be a common dilemma for homeowners in many states.
What the best solution for refinancing my first & second mortgages? Mr. Jackson elaborated, “I have an 6% 1st mortgage with a balance of $255,000, and a second mortgage at 14% with a balance of $52,500. We did a 125% second mortgage to pay off some credit cards. If I add the loans together, we exceeded our homes equity, as the property was appraised at $280,000. We are satisfied with the 1st mortgage rate, but we wanted to lower the rate on the second mortgage. A few years have passed since we took out the 2nd loan back in 2002, and importantly our home’s value has increased to about $325,000.” He continued, “Should I refinance the second by itself and try and get a lower rate, or should I refinance the 1st and 2nd mortgage together for one mortgage payment?”
Wow, what a good question. I praised my client for consolidating his credit card debts with a fixed rate loan. He was very satisfied with his monthly savings with the 125% loan and because it exceeded his property value, he did not consider refinancing that loan until neighbor hood housing costs went up significantly. Now that his house has increased its value it appears that his combined loan to value was under 100%. His refinancing options become much greater with the increased equity from the home appreciation.
I asked Mr. Jackson a few questions so I could help him find the best solution. How is your credit? Do you know your credit score? Is there a pre-payment penalty on your second mortgage?
Does your first mortgage have a fixed interest rate?
Jackson answered quickly: 689 credit score no pre-payment penalty after 3 years, and his 1st mortgage is at 6% with a 30 year fixed rate.
Combining first and second mortgages into one loan can be challenging, but sometimes it makes sense financially as well as being practical. In Jackson’s case, the best option was to leave his first mortgage alone, and simply refinance the 125% home equity loan with a 95- 100% second mortgage to lower his monthly payments. So Mr. Jackson was approved for a fixed rate 2nd mortgage. He had inquired about a home equity line of credit, but I reminded him that they have adjustable rates that have been increasing rapidly in the last few years. Since he was paying off long term debt, a fixed rate loan with simple interest was the only way to go. I was excited for Mr. Jackson, because we were able to get him approved for a loan with no pre-payment penalty and we were able to reduce the closing costs, because of his credit score.
Depending on the home equity program, 2nd mortgages may cost you a few thousand dollars in closing costs. Most closing costs are tax deductible and getting the lowest possible rate pays off in the long run. For example, With a 15 year term, you would recover the cost of the second mortgage within a few years, so if you can get 1% or more better paying some closing costs, it would be better than a home equity loan with no points. The lending reality is that most no point no fee 2nd mortgages require credit scores over 700, and the combined loan to value will most likely need to be under 90%.
If you are able to get the second mortgage with no penalty for early payoff, then get that feature with your loan, because if your home’s value continues to increase, then in a year or two, you may find yourself ready to refinance because you are back at the golden 80% combined loan to value. If 1st mortgage rates happen to drop again, then you may find yourself in a great position to finally combine both loans together. If the 1st mortgage rates dropped to the 6% zone, and you still plan to live in your home for many years to come then make the move to refinance. It all comes down to what the rate are doing, when the time comes.
Posted in Fixed Rate Remortgage Articles | Tags: Combining, Mortgage, Mortgages, Refinance, Second, Together | No Comments »
Home Equity Loan: Second Mortgage Loan Advantages
If you are a homeowner considering a home equity loan, a second mortgage might be a better choice than a home equity line of credit. Second mortgages have several advantages in today’s economy. Here are the basics you need to make an informed decision regarding your home equity loan.
Interest Rates Are On The Rise
When you opted for a home equity loan with a fixed interest rate you are locking in this rate and payment amount for the duration of your loan. If you opt for a Home Equity Line of Credit (HELOC), your loan will have a variable interest rate and will change when the lender adjust your loan. Locking in your interest rate will guarantee your payments will be fixed regardless of interest rate changes.
Borrow Only What You Need
Home Equity Lines of Credit are risky because of the temptation to keep spending. These loans provide the borrower with a debit card they can use to make purchases that is tied directly to the equity line. This ease of access to the equity causes many homeowners to overspend, borrowing more money than they intended. Using a second mortgage allows you to borrow a fixed amount, eliminating the temptation to overspend.
Fi
xed Payment AmountsBecause second mortgages come with fixed interest rates you can count on your payment staying the same for the duration of your loan. This will allow you to budget for the additional payment and keep better control over your finances. If you choose a home equity loan with a variable interest you run the risk of an ever increasing payment as interest rates rise. You can learn more about choosing the best home equity option for your financial situation by registering for a free mortgage guidebook.
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The Easiest Mortgage Loan You Will Ever Get
Picture a refinancing option that is lightning fast, extremely easy to qualify for, and guaranteed by a government agency to benefit YOU! This is exactly what the VA Streamline program does for homeowners. It makes the home loan process easy and safe for veterans.
Going by the official name IRRRL, or Interest Rate Reduction Refinancing Loan, this incredible loan program was introduced by the VA as a way to keep veterans in better mortgages. It is available to anyone with a current VA mortgage. What makes this loan so amazing is that as long as you have kept on top of your monthly mortgage payments and have not had any more than one reported 30-day late payment on your loan in the last twelve months, then you are most likely eligible to LOWER YOUR INTEREST RATE without having to re-qualify!
Streamlines are used primarily by veteran homeowners that want to get out of their current Adjustable Rate Mortgage or Variable mortgage that will be adjusting to a higher rate soon, or by a homeowner that sees an opportunity to lower their current fixed rate mortgage to a new rate and thus lower his or her monthly mortgage payments. A few of the benefits of the VA Streamline Program are:
No Appraisal needed
No income or employment verification
Credit score doesn’t matter
Possibly skip 2 mortgage payments
Get a cash refund of any escrow balance with current lender
Get a Lower Interest Rate
Get a lower monthly payment
No out of pocket costs
If you are in a VA Mortgage it would be wise to consult a VA loan specialist in regards to whether or not there is a benefit for you in the VA Streamline Program.
What Determines Mortgage Rate?
The mortgage rate is the rate at which the banks are willing to lend money to you to buy a house or other types of property. The rate is determined in part by the repo rate that the reserve bank is lending money to the banks. That is not the only factor that determines the mortgage rate though. There are other factors involved and some of these factors are within your control.
That is why it’s important to shop around for your mortgage to get the best possible mortgage rate for you. But don’t be fooled by a very low mortgage rate. Some banks offer very a very low mortgage rate but then charge service fees that are way above other banks which means in the long run that your mortgage may cost you far more.
There are also many credit report companies who can help you with your credit score. It is important to have the best credit score possible, since your credit score also in part determines the mortgage rate the bank will offer you. A good credit score means a better rate. It can also mean lower deposits and lower insurance premium rates, so find out your credit score and try to improve it as much as possible
There are a lot of mortgage companies out there. This is good for you because they are all competing for your business and in order to compete they often offer a competitive mortgages.
And don’t just take the first loan offered to you, unless its the best of course! Find out if you can negotiate. Remember each percentage point on your mortgage rate, translates to thousands of dollars saved in the long run.
Finally, research the different loans available at different mortgage rates. There is a best type of loan for you and again, by applying for the right kind of loan, getting the best mortgage, you will or could save thousands which could be used for other things – like college, retirement or holidays…
The extra effort you put into finding the right loan at the best mortgage rate is well worth it in the long run.
But whether you’re looking for a fixed or variable mortgage rate loan, be sure to shop around for the cheapest mortgage rate.
Best Home Mortgage Rates
The best home mortgage rates are not reflected by simply identifying the lowest rate. In considering the best home mortgage package for them, borrowers should understand that they are unique, and that your home loan requirements may differ sharply from those of another borrower.
KNOW WHAT TYPE OF LOAN FITS YOUR FINANCIAL NEEDS
A good start is to make a list of your requirements. Your first priority might be a low deposit loan. Entrepreneurs are usually self-employed, so for them a low doc mortgage may be number one on their list.
A borrower may require a construction loan and research might show that a line of credit feature in a loan will work best for them. Your best mortgage may be a fixed rate loan or a variable rate loan. Some people may want interest only payments for a fixed period. Others may want only a principle plus interest mortgage.
Which is right for you?
SHOPPING SOLO FOR LOANS REQUIRES TIME AND ATTENTION
It is popular to start searching for a mortgage loan online – be sure to pay attention to some of the less recognizable names offering mortgages online. You can discover dozens of loans offered with a rate under 7%.
You can conduct research online and offline, learn the vocabulary and sort out the information about each loan. This will require diligence since rates are tied to financial instruments, affected by government agencies and government policies – all of these respond, in varying degrees, to global pressures.
FREE PROFESSIONAL HELP IS A POPULAR ROUTE TO A MORTGAGE
You are well advised to take advantage of free assistance from mortgage broker professionals. Their services will include an inventory your loan needs, a comparison of hundreds of home loan choices and an explanation of all details. Some will even come to your home to explain the best home mortgage rates.
A personal visit with an industry authority is highly recommended. This person can answer all of your questions, address your concerns, and help guide you to a responsible decision. They will help you to sort out loan features, help you understand your borrowing constraints, and give you a clear picture of the financial details.
ASK ABOUT SPECIAL NICHE LOAN BOOSTS
It is important to talk about government sponsored help that may be available to some buyers. Remember that some cities offer extra incentives to buyers and you may also meet the criteria for a special class of buyer that is qualified to apply for other incentives.
Borrowers and loans are different. Mortgage professionals will help you sort out the loan offers and explain each one thoroughly. The process should result in the best home mortgage rates for each borrower based on the best fit and value for each one.
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