Q. I am in the military and have used my VA loan to purchase our current home. Our home now, we would like to keep as a rental after we are reassigned to a new base, until retirement. I have 10 years until retirement and would like to purchase a fixer upper in MA, where my wife and I plan to retire. By purchasing a home now we would be able to rent it out, paying down the mortgage, until after retirement. Some of the home's we are looking at require some serious work, ie plumbing, electrical, flooring. What type of loan would best fit this project and who are some credible lenders that carry it?
A. If you plan on renting the home out, it will be considered a rental property or investment property as opposed to a second home, even if you plan on living there after retirement. The difference between a 2nd home and a rental property in terms of financing are slightly higher rates and usually somewhat of a down payment required. There are many conventional lenders who offer various types of rehab loans where you can purchase a home based on the value of the work being done and the lender will hold the money for these repairs in an escrow account until the work is completed. Usually, a contract for all work that is going to be done will be required and most of the time it will need to be from a general contractor or a licensed contractor. Most lenders do not like for the work to be done by yourself. The lender will usually require an inspection (or multiple inspections throughout the construction) to make sure the work is being done and so that they can dispurse some of the funds if needed before total completion. You can also try an FHA lender and ask about a 203k loan. This is for rehabbing a home as well, but I am not sure if they will do these on investment properties. I believe Countrywide, Wells Fargo, Chase, Washington Mutual and many other lenders offer both of these types of financing. You can also try contacting a few mortgage brokers and they will shop the loan around and find a lender for you with good loan terms. A mortgage broker may have a little more to offer with this type of financing. I would also check with your local bank and a credit union if you belong to one as they usually have some pretty agressive stuff. Best of luck.
Which is the best company to get an auto loan from?
Q. I've been doing some research on auto loans and was wondering if I could get a second opinion on auto loans. Which is the best company to get an auto loan from? What should one look for when applying for an auto loan? I understand that this question really depends on the individual that is applying for an auto loan and what their story is, although, on average, which is the best?
A. Well, the "best" car loan is usually going to be the one that offers you the lowest interest rate! How good is your credit? Try your own bank first...if you have a good relationship with them, they might offer you a good rate. Credit Unions almost always offer the best rates. If you are a member of a credit union, or have one available through your job, check there. If you or your parents are in the military, or are military veterans, see if you are eligable for a loan with Navy Federal Credit Union or USAA. They offer great rates. If you have not-so-great credit, check out RoadLoans online.
I would recommend going to the dealership with outside financing already secured, if possible. If you don't qualify for outside financing, you would have to go with whomever the dealership can get to finance you...and that's not TERRIBLE. However, some not-so-scrupulous dealers have a habit of "adjusting" the price or interest rate of the car you are purchasing based on the monthly payment that you tell them you want. I would settle on a price for the vehicle before you start talking about financing, and make sure that you double check when you sign the paperwork that the price of the vehicle, interest rate, and monthly payments are the same ones you agreed upon before you sign. Dot all your Is, cross your Ts, and watch your own back and you'll be fine. :-)
I would recommend going to the dealership with outside financing already secured, if possible. If you don't qualify for outside financing, you would have to go with whomever the dealership can get to finance you...and that's not TERRIBLE. However, some not-so-scrupulous dealers have a habit of "adjusting" the price or interest rate of the car you are purchasing based on the monthly payment that you tell them you want. I would settle on a price for the vehicle before you start talking about financing, and make sure that you double check when you sign the paperwork that the price of the vehicle, interest rate, and monthly payments are the same ones you agreed upon before you sign. Dot all your Is, cross your Ts, and watch your own back and you'll be fine. :-)
What would you do if you were in such a debt that the Military wasn't enough and you needed a second job?
Q. Your whole paycheck is taken from allotments and negative balances before you can even use your money that you need for necessities and you have to get a second job. You're soon to get out of the Army so they're not going to give you any AER loan, and the check into cash places will not give you money because of your negative drafts, you have nothing of value to sell, Your credit cards are maxed out and they have their hand out wanting money, your in threat of a repossesion of a vehicle, and that's going to be at least $10,000. You want to stick it out so you don't file bankruptcy because you have only the other vehicle and that's your transportation. What would you do?
A. My you have lived beyond your means for a long time huh? I betcha it all started with those credit cards?! (The work of the devil on earth.)
You need to see a debt counsellor. There are companies that deal with this sort of thing. They will talk to your debtors to try to get some of your debt forgiven (at least the penalty charges). Believe me, the last thing your debtors want is for you to declare bankruptcy!
Do this as soon as possible. Your financial situation will be tight for awhile, but there will soon be light at the end of that tunnel.
http://www.debtorassistance.com/services.html
http://www.consolidatedcredit.org/
http://www.consumercredit.com/
These links should help get you started.
You need to see a debt counsellor. There are companies that deal with this sort of thing. They will talk to your debtors to try to get some of your debt forgiven (at least the penalty charges). Believe me, the last thing your debtors want is for you to declare bankruptcy!
Do this as soon as possible. Your financial situation will be tight for awhile, but there will soon be light at the end of that tunnel.
http://www.debtorassistance.com/services.html
http://www.consolidatedcredit.org/
http://www.consumercredit.com/
These links should help get you started.
Im 18 and in the military where can I get a typical credit card?
Q. Im 18 and in the air force. I have no credit history. I have a USAA bank account. But when I applied for a credit card they only offered my a secured card. I dont want to put into a CD in order to have a credit card. So I was wondering if there was another reputable credit card that I would have a chance of getting.
A. @Keren: a secured cc IS a real credit card. You get a bill every month, and you make timely payments. [preferably IN FULL]. Payment only comes out of the CD if the bank cancels the credit card and repays itself b/c you are not paying. The bank loses nothing. Hence the term "security."
$1,000 into a CD would get you (about) $900 [as in 90%, so $2,000 CD = $1800, if you wanted or needed to fly home some time] line of credit, of which you are advised to not carry forward more then $300 [but you should really pay it off IN FULL every month.] << if you do, then the 1/3 rule is not so set in stone.
=== many credit unions do not charge an annual fee for their secured credit cards.
An $1800 credit limit could serve you well for years (say, until you get out in 4 years, and get a civilian job). When you finally get an unsecured cc, you pay off the secured cc, cancel it, and get your CD money back.
Did you try the base credit union? (or is that USAA?) In any case, you should set up direct deposit of your pay, set up automatic payment of your credit card bill {PREFERABLY IN FULL] -- and then you have your financial life started. They will also be more responsive if and when you go in looking for a car loan (which you also set up to be paid automatically. No late payments, no checks lost in the mail, no 45 cent stamps, and you can direct payment close to the due date).
$1,000 into a CD would get you (about) $900 [as in 90%, so $2,000 CD = $1800, if you wanted or needed to fly home some time] line of credit, of which you are advised to not carry forward more then $300 [but you should really pay it off IN FULL every month.] << if you do, then the 1/3 rule is not so set in stone.
=== many credit unions do not charge an annual fee for their secured credit cards.
An $1800 credit limit could serve you well for years (say, until you get out in 4 years, and get a civilian job). When you finally get an unsecured cc, you pay off the secured cc, cancel it, and get your CD money back.
Did you try the base credit union? (or is that USAA?) In any case, you should set up direct deposit of your pay, set up automatic payment of your credit card bill {PREFERABLY IN FULL] -- and then you have your financial life started. They will also be more responsive if and when you go in looking for a car loan (which you also set up to be paid automatically. No late payments, no checks lost in the mail, no 45 cent stamps, and you can direct payment close to the due date).
What are some practical ways to get a credit score without getting a credit card?
Q. I have no credit at all because I don't make large purchases, and I don't use credit cards. What are some good ways to get a credit score without getting a credit card? I have a checking account will that help in any way?
A. Unfortunately, these previous two answers are inaccurate - as is VERY common with consumers today. We just aren't told accuracies because few people truly KNOW them because we aren't taught. I have 20 years experience in credit and finance and now head a consumer awareness program for consumers in and the following is FACT:
1) You do NOT need credit cards to establish and create credit scores but read on
2) You DO need MINIMUM 3 accounts to get a credit score
3) You do NOT need to be in 'debt' to get a credit score
ALL of these are 'myths' we must dispel. Here is what you NEED to do, whether you like it or not - and please realize I am NOT a fan of the conspiracy of credit - but we need to deal with it.
Quickest, easiest and cheapest way:
1) 1 account - go to your bank where you have your account, have them do a 'secured' loan against some of your balance. Let's say $1000 loan. they will take $1000 of your balance and put it into a different account or 'freeze' that amount in your account. You then make the monthly payments to pay the loan off - do NOT pay it off earlier than 1 year. Since you are establishing credit - you want to start establishing decent LENGTH of credit accounts.
2) Then research the National Banks that have 'Secured Credit Cards' and obtain one. ONLY use TRULY secured credit cards which work identically to the secured loan with your bank that we discussed here. DO NOT use ANY OTHER TYPE OF CARD OFFER YOU SEE. They Scams meant to get consumers who don't want to part with any of their money and deposit with a bank and are RIDDLED with hidden fees and WILL RUIN your credit before you EVER get it built. BTW, you technically CAN use the $1000 dollars from your bank loan to deposit for the secured credit card - I don't recommend it but you can.
3) Then do the same thing again for ANOTHER Secured Credit Card just as in step 2 - don't worry if the credit limits are $500 or $1000 based on your deposit, these work just fine - BUT don't get cards with only $250 limits - one if you HAVE to, but not both.
4) You MUST USE YOUR CARDS to be certain they report to the bureaus. BUT DON'T PAY INTEREST on them, this is not necessary. Just pay off the balance AS SOON AS THE BILL comes in. If you don't LIKE the idea of credit that's fine - pay only the stuff you'd use cash for in the first place like gas or a loaf of bread - IT DOESN'T MATTER how much you charge on the account - only that you USE the card.
5) Lastly AND EXTREMELY importantly, find a resource for Learning about credit and your finances - since you're new to this, you MUST get all of the education possible. Credit Literacy Group will be online inside of the next 30 - 60 days and if you are a student, military or first responder the access is free to you.
In no time at all, you'll be offered many other credit cards. You'll be then able to to open new accounts and obtain your deposits back. The banks you opened the Secured Cards with, will likely make you this offer to return your money.
Once you have become aware and knowledgeable about credit by learning in step 5, you'll be unafraid of credit and see the necessity for it. UNFORTUNATELY it IS needed - not the debt but the scores. Credit Scores are NOT ONLY used for credit offers anymore but now even:
- employment, insurances (health, home, auto and life), and soon much much more.
So you MUST get scores and learn how to manage them - PLEASE for your sake take these steps INCLUDING the learning -it is essential.
Good luck!
1) You do NOT need credit cards to establish and create credit scores but read on
2) You DO need MINIMUM 3 accounts to get a credit score
3) You do NOT need to be in 'debt' to get a credit score
ALL of these are 'myths' we must dispel. Here is what you NEED to do, whether you like it or not - and please realize I am NOT a fan of the conspiracy of credit - but we need to deal with it.
Quickest, easiest and cheapest way:
1) 1 account - go to your bank where you have your account, have them do a 'secured' loan against some of your balance. Let's say $1000 loan. they will take $1000 of your balance and put it into a different account or 'freeze' that amount in your account. You then make the monthly payments to pay the loan off - do NOT pay it off earlier than 1 year. Since you are establishing credit - you want to start establishing decent LENGTH of credit accounts.
2) Then research the National Banks that have 'Secured Credit Cards' and obtain one. ONLY use TRULY secured credit cards which work identically to the secured loan with your bank that we discussed here. DO NOT use ANY OTHER TYPE OF CARD OFFER YOU SEE. They Scams meant to get consumers who don't want to part with any of their money and deposit with a bank and are RIDDLED with hidden fees and WILL RUIN your credit before you EVER get it built. BTW, you technically CAN use the $1000 dollars from your bank loan to deposit for the secured credit card - I don't recommend it but you can.
3) Then do the same thing again for ANOTHER Secured Credit Card just as in step 2 - don't worry if the credit limits are $500 or $1000 based on your deposit, these work just fine - BUT don't get cards with only $250 limits - one if you HAVE to, but not both.
4) You MUST USE YOUR CARDS to be certain they report to the bureaus. BUT DON'T PAY INTEREST on them, this is not necessary. Just pay off the balance AS SOON AS THE BILL comes in. If you don't LIKE the idea of credit that's fine - pay only the stuff you'd use cash for in the first place like gas or a loaf of bread - IT DOESN'T MATTER how much you charge on the account - only that you USE the card.
5) Lastly AND EXTREMELY importantly, find a resource for Learning about credit and your finances - since you're new to this, you MUST get all of the education possible. Credit Literacy Group will be online inside of the next 30 - 60 days and if you are a student, military or first responder the access is free to you.
In no time at all, you'll be offered many other credit cards. You'll be then able to to open new accounts and obtain your deposits back. The banks you opened the Secured Cards with, will likely make you this offer to return your money.
Once you have become aware and knowledgeable about credit by learning in step 5, you'll be unafraid of credit and see the necessity for it. UNFORTUNATELY it IS needed - not the debt but the scores. Credit Scores are NOT ONLY used for credit offers anymore but now even:
- employment, insurances (health, home, auto and life), and soon much much more.
So you MUST get scores and learn how to manage them - PLEASE for your sake take these steps INCLUDING the learning -it is essential.
Good luck!
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