Private loan » Private Lenders http://www.cfive.org Tue, 29 Jun 2010 18:49:31 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 Federal Direct Student Loans – A Helping Hand From Government http://www.cfive.org/federal-direct-student-loans-a-helping-hand-from-government http://www.cfive.org/federal-direct-student-loans-a-helping-hand-from-government#comments Wed, 23 Jun 2010 11:53:18 +0000 admin http://www.cfive.org/federal-direct-student-loans-a-helping-hand-from-government

Direct student loans are federal government loans provided through the William D. Ford Federal Direct Loan Program. These types of loans are designed to help students who have graduated from the high school and are continuing their education in colleges, universities or trade schools.

Direct student loans are part of the federal student aid programs administered by the US Department of Education. These loans are not offered through private lenders or companies. The loan agreement is between the student and the US Department of Education, without any agencies as a middle man.

Students that want to apply for direct student loans must complete a Free Application for Federal Student Aid (or FAFSA) over the internet and submit all required information and documentation. In addition each student will also have to complete a Master Promissory Note (or MPN). MPN is a legal document that explains the contract between the student and the Department of Education. It also outlines how the loan will be repaid and the specific terms and conditions of the loans.

After awarded with one of the direct student loans, you should sign up and use the Service Center. It provides you all the information of your payments and allows you to view the records on the balance you owe. If you need one, you can also obtain a counselor service from a Direct Loan Servicing site.

To be eligible for direct student loans, a student needs to attend the school that is participating in the direct loan program. Also, the student must be enrolling for at least on a part-time basis.

Types of Direct Student Loans

The two most common direct student loans are: (i) subsidized Stafford loan and (ii) unsubsidized Stafford loan. The subsidized loan has an interest subsidy and paid by the Government. Students who are awarded don’t need to worry about paying interest and hence can concentrate on his or her study in full.

Not all students will receive subsidized direct loans (Stafford loan). Only those students with very few resources and with greater financial needs are qualified for subsidized loans. Students who are dependent, or have parents that are able to help pay for their schooling are usually given the unsubsidized direct loan which doesn’t have an interest subsidy.

For graduate students who are considered independent or have families of their own to support, or no living parents to assist with educational funding can apply for PLUS loans. PLUS loans are low interest loans for graduate students and parents. These loans are under the same criteria as the Stafford loans, you’re required to complete and submit FAFSA and a MPN. Typically direct student loans have a limit on the total amount. Most students manage to get by with loans of $8,000.

Direct student loans have a fixed interest rate that is set every July 1st. There is also a loan fee that can be up to 4%. This fee is usually used to offset the cost of the programs or services.

By: Yvonne Suzannah

]]> http://www.cfive.org/federal-direct-student-loans-a-helping-hand-from-government/feed 0 Seeking A Hard Money Commercial Mortgage Loan? Here’s What You Need To Get Approved http://www.cfive.org/seeking-a-hard-money-commercial-mortgage-loan-heres-what-you-need-to-get-approved http://www.cfive.org/seeking-a-hard-money-commercial-mortgage-loan-heres-what-you-need-to-get-approved#comments Fri, 18 Jun 2010 02:06:06 +0000 admin http://www.cfive.org/seeking-a-hard-money-commercial-mortgage-loan-heres-what-you-need-to-get-approved

Privately funded, often called “hard money” commercial mortgage loans are equity based loans written by privately owned lending companies or wealthy individuals. The loan approval process is fairly straight-forward when compared to conventional, institutionally funded loans, but private lenders have lending standards and loan parameters just like banks do. To secure an approval and get your deal funded you’ll need to understand what hard money lenders need to see in a loan request.

Equity

Private commercial mortgage loans are essentially equity loans. To be considered for funding by a hard money firm, a building or project must have significant equity. Land deals are usually done at 60% LTV or less. Buildings can receive offers of up to 70% LTV depending on the quality of the asset and its income production.

Large down-payments and/or hefty 2nd mortgages are frequently required by private lenders who will, generally insist on being in 1st position with a low LTV.

Cash

In today’s challenging credit environment, it is not reasonable to ask a lender to participate in a deal that is 100% financed. Regardless of the amount of “soft equity” in a property, virtually everyone, even hard money people, are asking that borrowers have a significant “hard equity” (cash) stake. Most private lenders are looking for at least a 10% cash investment by the principle borrowers. They will simply insist that their clients have something to lose if the deal goes south.

Exit

Hard money loans tend to be short term loans. 6-36 months is standard. Before they approve you for a mortgage they’ll want to know exactly how you intend to pay them back when the loan matures. If your plan is to sell the property, you’ll need to prove it’s marketable and have a sound strategy for finding a buyer. If you intend to refinance the private loan with a more conventional mortgage, you will need to prove that the project will qualify when the time comes.

Simple, not Easy

The private commercial mortgage lending process is a simple process, but that does not mean that it’s easy to get a deal done. A project must have a decent amount of equity, a cash investment will be asked of all borrowers and it is imperative that the exit plan is well thought out.

By: Glenn Fydenkevez

]]> http://www.cfive.org/seeking-a-hard-money-commercial-mortgage-loan-heres-what-you-need-to-get-approved/feed 0 Low Interest College Loans – Where To Look For A Suitable Deal http://www.cfive.org/low-interest-college-loans-where-to-look-for-a-suitable-deal http://www.cfive.org/low-interest-college-loans-where-to-look-for-a-suitable-deal#comments Wed, 09 Jun 2010 01:15:53 +0000 admin http://www.cfive.org/low-interest-college-loans-where-to-look-for-a-suitable-deal

Now that you are aspiring to pursue college studies, you would need financing various expenses through a loan. And surely the loan must come at lower interest rate so that you are not at all under any stress of repaying it. Well, there are many sources where from a student can find low interest college loans depending on his or her personal circumstances.

The best considered source of low interest college loans are federal student loans. These loans can be categorized under Perkins loan, subsidized or unsubsidized Stafford loans. A student can choose these loans as per his or her prevailing circumstances. But one common feature of these loans is their lower interest rate as these loans are federal loans. Perkins loans are made to students in greatest needs. Such a student does not repay the loan until he or she completes education. Perkins loans are of lowest interest rate. Stafford subsidized loans are funded by the government and hence interest rate is very low. Unsubsidized Stafford loans are meant for all type of students and interest payment continues throughout the loan repayment duration.

Those who fail to avail Federal loans; they can borrow money through private lenders. These lenders offer college loans at low interest rate on certain condition. For instance, secured loans are of lower rate. Parents will have to pledge home or any valued asset as collateral of secured student loans to get it at low rate. Also, parents past credit history should be good. There are many online lenders providing low interest college loans. You can search them on internet.

In case a student is tagged bad credit, he or she should take private student loan with a co-signer who has excellent or good credit history. The lender may reduce interest rate as the repayment responsibility is with the co-signer. These are some of the aspects of low interest college loans that you should keep in mind prior to applying for it.

By: Julia Russell

]]> http://www.cfive.org/low-interest-college-loans-where-to-look-for-a-suitable-deal/feed 0 No Credit Check Lenders For Loans Over $5000 Dollars http://www.cfive.org/no-credit-check-lenders-for-loans-over-5000-dollars http://www.cfive.org/no-credit-check-lenders-for-loans-over-5000-dollars#comments Thu, 27 May 2010 20:33:44 +0000 admin http://www.cfive.org/no-credit-check-lenders-for-loans-over-5000-dollars

Are you looking for a personal loan of over $5000? Do you need this loan to have no credit check? There are no credit check lenders for loans over $5000 dollars, but they are not easy to find. Here are some of the better options for you to try when it comes to getting the loan that you need.

Prosper is option number one and they do check credit, but they do not judge you too harshly on your credit. They help match borrowers with private individual lenders that get to read your loan listing and decide whether they want to bid on your loan or not. They can fund the entire loan or just a portion of it. Sometimes you will have a group of people willing to invest a little in your loan and that will add up to your full amount.

Using collateral is your next answer. If you have a paid off car, then a title loan might get you where you need to go and many title loan dealers do not check credit. They check income and the value of your vehicle. They will usually loan up to about 95% of what your vehicle is worth.

You can also get a loan against a piece of property or land and if you do it with the right type of lender they will do a no credit check loan for you. These are usually private lending companies that are a bit harder to find, but they are out there.

Your last option is to find a private lender. This can be done through the classifieds and craigslist. Sometimes you just have to ask around and depending on what you need the no credit check lenders for loans over $5000 dollars for will depend on whether someone is willing to help you or not.

By: Gressly Stevens

]]> http://www.cfive.org/no-credit-check-lenders-for-loans-over-5000-dollars/feed 0 How To Find A Low Rate Student Loan ? http://www.cfive.org/how-to-find-a-low-rate-student-loan http://www.cfive.org/how-to-find-a-low-rate-student-loan#comments Fri, 21 May 2010 03:28:28 +0000 admin http://www.cfive.org/how-to-find-a-low-rate-student-loan

Student Loan Programs are generally designed to offer a low interest rates and very flexible repayment terms than conventional car or home loans. But finding a low intrest student loan will require some serious work on your part.
Federal loans, federally guaranteed loans, private loans, parental loans – how do you find the one that’s right for you?

Federal Student Loan Programs

Your first stop should always be the federal student loan programs. Even if you don’t think you are eligible, it is worth completing the standard application form and submitting it just to see if there are grants or other types of loans you might be able to obtain. Also, most colleges and universities require you to complete the federal form because they use the information it contains to assess your eligibility for state aid as well as their own institutional programs.

During the late 1990’s and the early 2000’s the interest rates on federal student loans were at historic lows. The rates have since moved back up some, but they are still substantially lower than those available through conventional loans.

Alternative Student Loans

There are alternative sources of low interest student loans if you look around a bit. There are many lenders with special loan programs for student needs that are similar but not exactly the same as the more well-known federal student loan programs. Most private lenders offer interest rates that are lower for student loans than for conventional loans, but they are generally still a bit higher than the federal rates. Shop around with several lenders, comparing interest rates, terms and conditions, and repayment requirements.

Despite the slightly higher interest rates of alternative student loans, they are a good option for many people who don’t qualify for enough other aid to fully cover their college expenses. Before you commit to any loan make sure you carefully compare all of your options, looking at long term benefits as well as short term expediency.

By: Maria Sundar

]]> http://www.cfive.org/how-to-find-a-low-rate-student-loan/feed 0 Hard Money Commercial Mortgage Loans – What It Takes To Get Approved http://www.cfive.org/hard-money-commercial-mortgage-loans-what-it-takes-to-get-approved http://www.cfive.org/hard-money-commercial-mortgage-loans-what-it-takes-to-get-approved#comments Mon, 17 May 2010 14:09:14 +0000 admin http://www.cfive.org/hard-money-commercial-mortgage-loans-what-it-takes-to-get-approved

Privately funded, hard money commercial mortgage loans require much less documentation than conventional, institutionally funded mortgages, and they are generally equity based and not dependent on the borrowers credit score. Decisions are made very quickly and private loans can close in less than half the time it takes to close a bank loan. For many commercial real estate investors and developers, hard money is a useful and dependable source of funds.

Private commercial mortgage lending is a straight-forward, no-nonsense business; if you meet the requirements you’re likely to get funded quickly.

Cash in the deal

The era of 100% financing is over. Private lenders may not have strict down-payment rules but, virtually all will ask that a borrower have skin-in-the-game. The borrower’s cash contribution does not, necessarily, have to come in the form of a check at the closing. The investor or builder will get credit for all money they’ve but into a building or tract of land. Money spent on hard costs, such as actual site work and soft costs such as engineering and architectural plans can and will be credited to the borrower as “hard equity” just like a large down payment would be. As a general rule private mortgage lenders will stay away from any project where the principal is not willing or able to bring 10% cash or hard equity to the deal.

Equity

Hard money loans are essentially equity loans. It is mandatory that any commercial real estate attempting to be financed through a private lender have substantial equity in it. Loan-to-value ratios (LTV) in the hard money sector are much lower than in conventional.

Do not expect to be approved for a loan of any more than 50% of the value of raw land, 60% on fully entitled land, or 65% on buildings. However, keep in mind that most private lenders will allow a good sized seller carry back or other 2nd position mortgage, as-long-as the total amount financed does not exceed 90% of the value of the collateral.

Credibility

Private, hard money loans are not credit driven, but that does not mean private lenders won’t check your credit report; they will. Like it or not your credit report speaks to lenders about your character and credibility. No matter how sweet a deal looks from an equity standpoint, few lenders will risk their capital on obvious deadbeat borrowers.
You do not have to have perfect credit, you don’t even need good credit, you can even get a hard money loan with poor credit, but you can’t have ugly credit.

Experience

Any builder or property owner with a track record of success will stand a better chance of getting funded than will a fist time investor or first time developer. Private lenders are savvy professionals and like to work with other professionals. If you are new to commercial real estate, my advice is to bring a seasoned professional in on the deal. You may have to give up some profit, but the deal is much more likely to go through. Once you have your name associated with a successful project or profitable building, getting mortgages will be a-lot easier.

With These Factors in Place, You Will be Approved

These are the main things private lenders are concerned with when they consider a hard money loan. If a borrower is of good character, has some experience (or has a partner with experience), and can show both hard (cash) and soft equity in a deal, chances are very good that they’ll easily qualify for a privately funded commercial mortgage loan.

By: Glenn Fydenkevez

]]> http://www.cfive.org/hard-money-commercial-mortgage-loans-what-it-takes-to-get-approved/feed 0 Construction Loans Don’t Need To Come From Your Bank & Don’t Have To Take Three Months http://www.cfive.org/construction-loans-dont-need-to-come-from-your-bank-dont-have-to-take-three-months http://www.cfive.org/construction-loans-dont-need-to-come-from-your-bank-dont-have-to-take-three-months#comments Mon, 10 May 2010 08:22:07 +0000 admin http://www.cfive.org/construction-loans-dont-need-to-come-from-your-bank-dont-have-to-take-three-months

Many people do not understand why home construction loans are more difficult to get than standard mortgage loans. Lenders consider them “story loans”, meaning simply that there is a tale that leads up to the building plan. One common story is that the borrower is hoping to improve the value of his property. Another is that an investor has purchased a property and plans to resell it for a profit.

If you are the prospective borrower, you must be willing to share your stories and your plans, before you can get home construction loans. Your plan may not fit into the guidelines of standard mortgage providers like Freddie Mac and Fannie Mae. It may not fit the guidelines followed by the majority of commercial bankers. This is especially true if you never plan to actually live in the home. That is, if you are building or upgrading a home simply for investment purposes.

So, you may need to look into unconventional sources for home construction loans. Private lenders are becoming an increasingly popular source. The loans that they offer are sometimes referred to as hard money loans. Some people call them “hard-luck” loans, because they think of them as the last resort for someone with credit problems. The truth is that the majority of private loans go to rehabbers.

A private lender will still want to know your story and that you have a good plan. You will need to have some experience and some capital of your own, but they will often approve a loan that a commercial bank would deny. They can provide funding for purchasing and rehab construction loans. If the difference between the after improvement value and the purchase price is good, they can even roll in the closing costs. In any case, the closing costs on private construction loans are lower than the closing costs on a conventional loan.

One of the biggest advantages for a rehabber is that closing is faster. Depending on the bank and their policies, it can take as long as three months to close on home construction loans. A private lender can close in as little as two weeks.

Another advantage…most banks will charge a penalty for early repayment. If you purchase a property for investment purposes, your goal is to get the repairs done, improve the value and find a buyer quickly.

Let’s say that you are able to get a bank loan. You make the needed repairs, find a buyer and resell the property six months later. If you repay the loan in full at that time, the bank will charge you a percentage (the amount varies) of the original loan value. Since they could not make the interest that they planned to, they still plan to get their share. Their share cuts into your profits.

If you choose the right private lender, there are no early repayment penalties for home construction loans You might want to look into it before you begin your next rehab project.

By: James Whitmore

]]> http://www.cfive.org/construction-loans-dont-need-to-come-from-your-bank-dont-have-to-take-three-months/feed 0 Mobile Home Loan Freedom http://www.cfive.org/mobile-home-loan-freedom http://www.cfive.org/mobile-home-loan-freedom#comments Sun, 09 May 2010 17:01:06 +0000 admin http://www.cfive.org/mobile-home-loan-freedom

Did you know that you have to have a good reason to get a traditional loan? Banks will not dole out loans to anyone unless they know how you intend to spend loan money. Banks aren’t willing to let borrowers spend loan money any way they choose, and this can be entirely frustrating.

It’s within the interest of every bank to know exactly how a borrower will spend loan money. Why? This way, a bank can ensure that their money will be paid back. For example, no borrower can obtain money for a business venture unless the bank in question agrees upon the venture itself. Of course, in order to convince a bank that you will be spending money wisely, you’ll have to come up with a fairly concise business (or other) plan.

What happens when you need money, but your bank doesn’t see your cause as being a worthy one? In most cases, you’ll be instantly turned down for a loan. In other cases, a bank may decide to deliberate over the necessity of a loan for many weeks or months.

Then again, people who have bad credit won’t even be considered for a bank loan. When your record is marked with bad credit, banks won’t take a risk – it’s that simple. Unfortunately, this leaves a lot of people in need of money without any hope of a loan. In addition, it leaves many people scrambling to find a good enough reason to ask for a bank loan.

In stark contrast, a mobile home loan that is gained through a private lender is not restrictive in any manner. A private loan will allow you to use your loan money as you see fit. Whether you intend to take a vacation or make home repairs, your private mobile home loan is yours to spend in any manner.

In this way, mobile home loans allow people a lot more freedom when compared to a traditional loan. The best part is that private lenders do not base your loan acceptance upon your past credit history. All you need to apply for this type of loan is to own a mobile home.

If you can prove that your mobile home is yours, then you can apply for a private loan right away. You won’t have to wait for months, the application process is simple, and you will have your money in a flash. In short, a mobile home loan is the only way to go if you want complete and total loan freedom.

By: Molly Wider

]]> http://www.cfive.org/mobile-home-loan-freedom/feed 0 Why Should I Consolidate My Student Loan? http://www.cfive.org/why-should-i-consolidate-my-student-loan http://www.cfive.org/why-should-i-consolidate-my-student-loan#comments Sat, 08 May 2010 12:20:52 +0000 admin http://www.cfive.org/why-should-i-consolidate-my-student-loan

College loans are used to pay for assorted college related expenses; they’re usually offered as interest-deferred until the student leaves school. From the perspective of a lender, a college loan is a sound investment; most college students more than triple their immediate annual income after graduation, and this makes lending large sums (tens of thousands) of dollars very easy and sensible to do.

Most college loans have a grace period; during the first six months after leaving college, the loan doesn’t require payment, and isn’t accumulating interest – this window is meant to let the new college graduate find a job and settle in to their career, cover moving expenses and the like, before the clock starts ticking on their loan.

Unfortunately, the job market for new college graduates doesn’t always guarantee a lucrative starting career. Even with a good degree most students have to get an entry level position. Also, around that time in life, graduates are often getting married or having kids. These factors can turn a student loan into a nightmare of debt, as they juggle payments from multiple lenders and try to live within their means as other expenses accrue. Fortunately, there’s a way out. College loan consolidation lets you borrow a lump sum of money from another lender to pay off all your student loans. In return, you get a lower interest rate over a longer term; your monthly bills drop considerably; the monthly savings can be used to cover the bevy of new expenses you’ve got as you work your way into your professional life.

College loan consolidation programs in the United States come in two varieties – private and Federal. Federal student loan consolidation can happen if you have outstanding federal student loans that total more than ten thousand dollars, and are finished with school. If you do not fulfill these requirements, you must use a private lender.

Private lenders will look at your credit history and determine your monthly payments and interest rate. As with any private loan, it’s worth it to shop around, for lower monthly payments or better terms. It also makes sense to watch interest rates – if interest rates are low, consolidate your loans now before they rise again.

By: Nicholas Hurd

]]> http://www.cfive.org/why-should-i-consolidate-my-student-loan/feed 0 Student Loans Consolidation – The Federal Loan Program http://www.cfive.org/student-loans-consolidation-the-federal-loan-program http://www.cfive.org/student-loans-consolidation-the-federal-loan-program#comments Sat, 08 May 2010 06:01:53 +0000 admin http://www.cfive.org/student-loans-consolidation-the-federal-loan-program

If you have multiple student loans, consolidation might be the tool that can help you with your education expenses. It can also make it easier for you to pay off all your debts in the future. In this article, I will discuss the basics about student loans and loan consolidation.

If you are looking for a more detailed description of the loans that you applied to, the National Student Loan Data System can help you with that. It is a database that contains several data about the different federal loan programs, lending companies, schools and other loan institutions.

Like what I said earlier, consolidating your student loans can make everything much more convenient for you. The right times to get into student loans consolidation is when you are repaying or in deferments. You can also apply for one even if you are not yet in the pay off period. It is better to plan everything ahead to avoid complications in the future.

A federal loan consolidation program does not charge any kind of fee. Its rules and regulations are not as strict as the private lenders. You can start paying off your debts early so that penalties in any form will not be asked from you.

Once you apply to a loan consolidation program, you may have to wait for one to three months for them to process your application. It is advisable to never forget your loan repayment schedules until you receive an approval notification from the loan consolidation company.

Different kinds of loans consolidation have varying interest rates. The lending company, the type of loan that you applied to, and the timing are just some of the factors that determine the interest rate. You might want to do some research and comparison before making a final decision on which loan consolidation program to use.

By: Elanora T. Kelly

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