Gone are the days of no down payment alternatives, down payment assistance and seller-offered programs to come up with the money needed to buy a home.

To successfully purchase a home today, you will need a down payment of at least 3.5 percent of the purchase price. While it may be difficult to imagine coming up with enough money, you do have several options when it comes for getting help increasing your down payment.

Here are five ways you can come up with a down payment on the fly:

Gift Money

Gift money is simply that, a gift from a family member. If you decide to get family assistance, you will need to be very clear whether the funds are a gift or a loan, and you’ll have to be able to prove that the gift money was given as a gift.

If you receive a loan from family or friends, draw up repayment terms, and if you receive a gift, keep in mind that parents can give up to $13,000 annually to their children without having to pay gift taxes.

The gift giver will also need to provide a gift letter (stating that it’s a gift and not a loan) and a paper trail for the monies they are gifting for the benefit of the buyer. In other words, they will have to provide a bank account showing that they had the ability to gift the money to you.

Savings Plan

Although it might take a little time and discipline, an old-fashioned savings plan can be a great way for consumers to put together enough cash for a down payment. If you sit down and analyze your personal budget, you may find a few areas where you can reduce your expenses – and if you don’t yet have a budget, establishing one is your first step toward finding some money you didn’t know you had in the first place!

Borrow from your 401(k)

Most companies let employees borrow from the balance of their 401(k) accounts, especially when looking to purchase a new home. Rules vary but, generally, you can extract as much as half of the vested amount in the account, up to $50,000.

If you can borrow money from your 401(k) for your down payment, this is generally accepted for helping you to qualify for purchasing a mortgage loan. Because it’s a loan rather than a withdrawal, this does not trigger the early withdrawal tax penalty.

Sale of a Good

Some of your down payment cash could be sitting right in front of you. Consider looking through all of the stuff that you have accumulated and see if there are things you no longer need, but which have some value and would be worth selling for fundraising purposes.

Getting rid of some of those assets and turning them into something that’s going to be more productive for you, like cash for a mortgage down payment, is your best bet. Once you have assembled an inventory of items you would be willing to sell, consider holding a garage sale or selling them online via eBay, Craigslist, or some similar site.

Consider Taking out a Short-Term Loan

Where a down payment lacks, enter strength in income. You can take out a line of credit or a personal loan, deposit the funds into your bank account, let it sit for two months, and then it will be eligible for use in your mortgage transaction.

If you are unable to get approval for a conventional bank loan, it’s time to look into collateral loans. One great option you should consider is a car title loan, which provides you with a loan pegged to the value of your vehicle in exchange for temporarily giving up possession of its title.

As long as you keep making loan repayments on time, you will retain the right to use your vehicle, and as soon as you have paid off the loan in full, you will regain possession of the title.

Car Capital Financial

If you are interested in receiving an affordable, high-quality, hassle-free car title loan, then be sure to contact Car Capital Financial today. Title loans are issued based on the borrower’s ability to repay the loan.

We have provided car and other vehicle title loans to Southern California for over 17 years, and we specialize in lending to people with credit problems.

To speak with a title loans adviser and get the cash you need in as little as 30 minutes, please call us now at 1-888-500-9887.

Paying the mortgage is one of our most essential expenditures, as nothing is more important than providing ourselves and our families with shelter. The inability to pay your mortgage can result in eviction or even homelessness, making it most homeowners’ absolute worst nightmare.

Should you find yourself needing money to pay the mortgage, it’s possible to try taking out a traditional bank loan to make mortgage payments, but doing so would typically take days or even a couple of weeks to raise the necessary funds.

In that time, you could end up facing legal issues or even be asked to leave your home for late payments, so a bank loan may not be your best bet in this particular situation.

Fortunately, if you need to raise emergency money to make the mortgage payments, there are a variety of potential solutions. If you ever find yourself in a situation where you need to raise money for the mortgage payment quickly, consider taking one or more of the following actions:

Work Odd Jobs

Offer your services to your neighbors. Perhaps you could babysit, mow someone’s lawn or walk their dogs. Everyone needs a little bit of help around the house from time to time, from weeding the garden to washing the car. Use your brawn, in other words.

State your hourly rate up front and insist on cash. You may not be paid a great deal for your services, but since it’s coming as cash-in-hand it will be tax free, and it could be just enough to collect up the funds you need to make the mortgage payment.

Dropping your ego and sucking up to doing some manual labor is nothing to be ashamed of – in fact, it’s both a character building process, as well as a much better option than missing a mortgage payment.

Sell Personal Items

If you have valuable furniture, electronics, jewelry, clothes or art work that you could see yourself living without, definitely try to sell them. Before selling any item, find out what the item is worth.

Do not get shortchanged by pawn stores or garage sales. Do utilize online marketplace sites like eBay and Craigslist to maximize your returns. Departing with beloved possessions may be difficult, but selling your stuff could easily provide you with enough funds to cover your mortgage.

Ask for Assistance from Family

You may want to ask your family or friends for financial assistance. It’s relatively unlikely that your request for help with rent money would go unfulfilled. Just make sure that you work things out in advance so that your family and friends know that they’re either donating to the cause, or offering you a short-term loan that you intend to pay back.

Figure out whether or not you’ll need to pay them back the loan with interest, and only agree to assistance that you’re sure you’ll be able to return in the near future. Missing a mortgage payment is a big deal, and something to be avoided, but is it really worth risking your relationship with family and friends?

Make sure to also be prepared for rejection, since there’s no guarantee that they’ll say yes, and do not let a potential rejection hinder your relationship with your friends and family. Remember that they might be facing financial problems of their own.

Take Out a Car Title Loan

If all else fails, you might need to resort to taking out a loan to raise some liquidity, especially if you’ve only got a few days, or a few hours, to raise the necessary funds. If you have paid off or nearly paid off your vehicle, then it’s likely that you would qualify for a car title loan from Car Capital Financial.

The process of obtaining a car or vehicle title loan is almost guaranteed to be much faster than that of a traditional loan. Our title loans work by awarding you with a cash loan amount based on the value of your car in exchange for taking temporary ownership of your car’s title.

You will then have up to 3 years to gradually pay back your loan to us in monthly installments, during which time you are free to continue driving and using your vehicle as much and however you want.

Car Capital Financial

If you’re looking for a quick solution to your money problems, then an auto title loan could be just what you need. To receive a car title loan in California, look no further than to the experts at Car Capital Financial.

We’ve served Southern Californians for over 17 years, providing safe, effective and affordable auto title loans. Thousands of individuals have escaped financial pitfalls with the assistance of our reliable title loans, and in this tough economy, we offer one of the most reliable forms of fast financial assistance. Title loans are issued based on the borrower’s ability to repay the loan.

Call Car Capital Financial at 1-888-500-9887 to set up an evaluation for your vehicle today so you can get yourself back on the path to financial freedom with an excellent no-credit check title loan of your own.

 

People refinance their homes for various reasons, but often as an effort to reduce monthly mortgage payments and lock in a lower interest rate. A central determining factor on home refinancing approval depends on the applicants credit score. Mortgage companies tend to favor good credit scores, making refinancing with a poor credit score typically very difficult.

However, if you have poor credit, this doesn’t necessarily mean you can’t refinance your home. There are some ways poor credit holders can still get approved and here are our top suggestions on how to refinance with poor credit:

1.      Consult with Your Mortgage Company

Mortgage refinancing with poor credit is a challenge, but it may be possible if you consult with your mortgage company and explain your financial situation. If your poor credit score is the result of a sudden, unexpected financial emergency and you can provide proof of that, then it’ll tremendously help improve your chances of getting approved for the refinance.

Likewise, if you’re taking active steps to then you should also provide documentation to demonstrate this, as it shows the lender that you’re doing everything you can to clean up your financial issues. Generally speaking, mortgage companies are much more likely to provide home refinance with poor credit holders if they believe that your credit issues are temporary and that you’ll be able to make monthly refinanced mortgage payments on time. If you can prove both of these, you’ll have a better chance of receiving approval.

2.      Take Out a Small Loan

A great way to boost your credit score is to take out an installment loan. Paying off a loan in full reflects excellently on your credit score, as it demonstrates financial responsibility and the ability to manage debt successfully. To boost your score fast, consider getting a title loan. A title loan lends you a cash sum based on the value of your vehicle and temporarily takes hold of your vehicle’s title (pink slip). Once repaid in full the title is returned into your name and your credit score should gain a noticeable boost.

3.      Stop Making Credit Card Charges

Your credit score will only worsen if you continue to make credit card charges without paying off your credit card debt first. Home refinancing with a poor credit score is doable but is less likely to happen if your credit score is utterly dismal. Take direct steps to improve your score by stopping all charges to your credit card and gradually pay off your debt. Living off your debit card likely won’t be easy, but worth it if it means an improved credit score and your home refinance request approved, also you can find other options online to help you with this.

4.      Raise Money

You may be able to avoid mortgage refinance with poor credit all together by raising enough money to pay off your credit debts. This way you’ll be able to apply to refinance your home either with a significantly improved or even “good” credit score – which should allow for a better deal.  Try to think of realistic ways you can raise money fast, and this could provide you with the cash you need to pay off your debts and restore your credit score fast.

5.      Use a Specialist Company

There are refinancing and home loan companies out there that specialize in home refinance for poor credit holders. These companies are often very willing to approve poor credit holders, meaning you could get your home refinanced easily by going down this route. However, it’s important to note that these specialist poor credit home refinance companies typically charge greater interest rates and thus may not provide as great a deal as if you simply worked toward improving your credit score and then applied for home refinance with a traditional home refinance company.

Car Capital Financial

If you’re struggling financially, are considering refinancing your home or fear you’ll lose it to foreclosure – consider a title loan from Car Capital Financial first.

We deliver the money you need fast and have been providing loans to Southern Californian residents in financial need for over 15 years.  Title loans are issued based on your ability to repay the loan.

Get your title loan today by calling 1-888-500-9887!

Buying a home is the core of the American Dream, ranking up there on many people’s life goals along with graduating from college, buying a car, getting married and starting a family.

If you have poor credit, accomplishing this dream may seem impossible to you, but it doesn’t have to be! Mortgages for poor credit holders may not be easy to obtain, but they are definitely available to those who are willing to make some sacrifices.

To get a mortgage with poor credit, the first step is to be willing to shop around and talk to many different mortgage brokers and advisors. You should be prepared to be rejected by some lenders, but remember that just because one of them turns you down, that doesn’t necessarily mean that the rest will!

To have the best chance of getting a poor credit mortgage approved, follow these key tips for successfully navigating the mortgage approval success:

1. Choose a Reputable Mortgage Company

Don’t be fooled into choosing a mortgage company simply because it claims to not care about your credit score or states that it specializes in offering poor credit mortgages. These types of mortgage companies tend to rip clients off by approving mortgages to bad credit holders, but only offering them with exuberantly high interest rates attached. Unless you’re made of money and don’t mind paying tens of thousands of extra dollars, this won’t be your best long-term option.

There’s also the danger of loan sharks, who may promise an amazing mortgage rate deal regardless of your credit score, but who may be operating a business that’s not entirely legal.

For the fairest and safest poor credit mortgages, aim to get one from a well known, reputable company that you can trust. As a bad credit holder, you may need to go through many hoops and hurdles to get approved by a reputable company, but this should save you both time and money in the long-run.

2. Explain Your Poor Credit History & Demonstrate Efforts to Rebuild It

Once you’re face to face with a mortgage broker, be prepared to explain why you have poor credit. Is it because of irresponsible spending or because you had an unexpected financial emergency such as high medical bills or sudden unemployment? Whatever the cause, make sure that you’re prepared to clearly and accurately explain the story behind your poor credit rating, as well as to demonstrate what steps you are actively taking to rebuild it.

Show the lender your recent bank records that demonstrate you’re steadily paying off your credit card debt and also make sure to show them any short term loans you have either paid off completely or are in the process of paying off.

By doing showing your progress, it will prove that you’re taking active steps to boost your credit score, and that you’re actually responsible with your finances – whether or not your credit score makes it seem that way. Even poor credit mortgage lenders want to lend money only to people they believe they can trust, so you should consider it your duty to prove that you’re trustworthy.

3. Show a Steady Employment History

If you’ve been unemployed for a number of years, then you’ll definitely struggle to get approved for a mortgage anywhere (unless you have a huge amount of money stored in savings) but if you’ve had steady employment for at least two years then you’ll definitely need to prove that to each mortgage company you consider.

Steady employment and a steady paycheck indicates that you’re financially stable, and that you will have enough funds on a month to month basis to make your mortgage payments. Don’t forget this part of the process, as someone with bad credit will absolutely need to be able to prove a steady income in order to get a loan. If you can prove that you’re making enough money now, even if you’ve had financial problems in the past, it will make a huge difference in your chances of getting approval for a poor credit loan.

4. Offer a High Down Payment

Once you’ve found the property you want, consider offering to make a high down payment on each mortgage application you fill out. This way you’ll demonstrate that you have enough in savings to pay for a significant amount of the property and the mortgage company will have less to lose if you end up defaulting on the loan.

Of course to put a high down payment down you’ll need to have a significant amount in savings, so if you don’t have this yet then it’s time to start saving up! If you don’t have enough money to make a high down payment and you’ve got poor credit, then you’ll find it extremely difficult to get a mortgage loan.

5. Buy Below Your Means

Another way to make yourself less of a risk to mortgage companies is to only consider purchasing properties that are priced well below your financial means. This way you’ll be able to make monthly mortgage repayments much more easily and you’ll be viewed as less of a risky mortgage candidate.

Consider buying a modest property that’s well below your means, or alternatively, look for foreclosures and short sales that offer you genuine value for your buck. Buying below your financial means should allow you to get a mortgage despite your poor credit more quickly and easily approved.

Consider Car Capital Financial

While we aren’t a traditional mortgage lender, we can certainly help you raise money to purchase a new home, a piece of property, or some other form of real estate. If you’ve got valuable enough vehicles, taking out title loans on them could allow you to completely avoid the mortgage applications and approval process entirely!

Our loans aren’t limited by credit scores in any way – we won’t even charge you more interest if you have a bad score. In fact, we won’t even require that you submit to a credit check, or ask for your credit score during our approvals process. If you’ve got terrible credit, but have valuable assets, then trying to get a mortgage might be completely unnecessary.

Alternatively, if you’re looking for a fast way to demonstrate that you’re taking direct action to improve your credit score, consider taking out a car title loan from Car Capital Financial. We offer short term no credit check title loans and can deliver the money you need in a matter of hours – in some cases as fast as 30 minutes!  Title loans are issued based on your ability to repay the loan.

Pay off your title loan responsibly and you’ll improve your credit score and boost your chances of getting approved for a mortgage.

Call us now at 1-888-500-9887 to get your safe, reliable and affordable title loan today!

Buying a house is a major milestone, viewed by many people as the quintessential component of achieving the American Dream. Owning a house provides financial security, equity, stability and a sense of personal pride.

Most people can only afford to buy a house through the process of taking out a mortgage. Mortgages are a form of large loans used specifically to purchase a property. To secure a mortgage, borrowers usually have to provide a minimum down payment of 10-20% of the total cost of the loan, which is used as collateral by the mortgage company. A mortgage is generally paid back in monthly increments, typically at a fixed 10 year, 15 year or 30 year interest rate.

Monthly mortgage repayment rates are determined by the interest rate that borrowers are able to obtain, with lower interest rates offering much lower long-term costs of borrowing. Lower rates are typically only offered to individuals with great credit, but they are also determined by debt to income ratios, the current prevailing interest rate (a rate that banks charge each other to borrow money) and a variety of other factors.

Finding the best mortgage rate and negotiating the finishing touches can be extremely challenging, as the process is relatively grueling, and quite complicated. Read on for some basic tips that will help you find the best mortgage rates:

Have a Good Credit Score

Perhaps the most important component to achieving a low interest rate for your mortgage is to have a great credit score. Mortgage brokers want to know that you are a reliable and responsible borrower, who will be able to make regular and consistent mortgage repayments, and they use credit scores as the most important indication in the evaluation of potential borrowers.

A poor or even average credit score will reflect badly on your financial responsibility and could cause you to be rejected entirely from approval, or offered a loan with a high interest rate. Therefore, unless you are certain that you have an excellent credit score, make sure that you do everything you can to raise your credit score before applying for a mortgage.

Check Your Debt to Income Ratio

Significant debt can reflect poorly on your credit score and lead mortgage lenders to worry about providing you with additional funds. Ideally, your debt to income ratio should be as low as possible. Mortgage companies do not want to provide people who already have high debt to income ratios with additional funds, as this signals a riskier loan that has a greater chance of eventually ending up in default.

Before you apply to take out a mortgage, make sure to erase as much debt as possible. This includes student debt, credit card debt, previous lines of credit, other mortgages and any other kind of debt that has been legally documented. Reducing your debt to income ratio will boost your credit score and make lenders far more likely to offer you a low interest rate mortgage loan.

Get all of Your Paperwork in Order

Most mortgages require extensive paperwork, with a wide variety of personal documents, so make sure that you have all of this available and at the ready when you’re looking for a mortgage. Being slow on delivering paperwork can look unprofessional, leading it to look like you don’t have your act together, or even like you have something to hide.

Generally, mortgage lenders require two years of tax returns, W-2’s, your two most recent paystubs, your most recent credit card statements, checking account statements and savings account statements. Basically, you’ll have to document all debt and all assets or the process of securing your loan could be compromised.

Being highly organized from day one in the mortgage negotiation process will show that you’re dedicated to getting a mortgage and allow you to be fully prepared for any unexpected surprises. Make absolutely sure that you have your documents in order before beginning the process, or you could end up going through a nightmare ordeal of seemingly endless phone calls, emails and faxes.

Shop Around & Compare Rates

Each mortgage broker is likely to tell you that he or she is offering you the best deal around, but don’t take their word for it. Remember that these are salespeople, and that they have been trained to get you to sign their deal as offered. Some lenders will even resort to using tricks and loopholes to get you to sign up for a mortgage program that provides them with far more profit than they really deserve.

Don’t be misled by their salesmanship tactics, and make sure to shop around for the best deal possible. Many websites now allow you to compare mortgage rates from different companies, even providing a break-down that lets you compare other fees such as processing fees and the minimal down payments required. Use these to collect information and shop lenders against each other.

If you like a particular mortgage company but you find that another one is offering a better value deal, provide your findings to your preferred lender and ask if they can beat the price of their loan, or the interest rate that’s being offered. While it might not sound like a big difference to drop your rate by a half a point, or a quarter of a point, even small changes to mortgage rates can have unbelievably massive long-term financial implications.

Have Sufficient Funds

Mortgages should ideally only be taken out if you have sufficient savings and a stable income. Most mortgage companies require that you put at least 20% down to secure your loan, otherwise you’ll have to pay for the added cost of providing them with Private Mortgage Insurance, which is an absolute waste of your money.

If you can’t provide 20% down payment to secure your loan, consider holding off until you’re able to collect that much funding, as all the money you contribute to PMI is essentially wasted, since you won’t receive any additional equity from paying into it. PMI is a sunk cost that provides you no benefit other than allowing you get a mortgage that you otherwise wouldn’t qualify to afford.

Don’t overextend yourself by taking out a mortgage that you think or know you can’t afford, as this can only lead to financial ruin. If you can’t provide at least 10% down payment for a property, then you are shopping outside of your price range and should either look for something more affordable, or wait to secure a mortgage until you can save additional funds.

Be Prepared to Negotiate

You don’t necessarily have to settle for the first offer a mortgage broker offers you, in fact, it’s more than likely that he or she is not giving you their best possible deal up front. There’s usually some negotiating and bartering involved in achieving the best deal.

Don’t settle for a shoddy offer simply because you want to purchase your dream house. That dream could soon become a nightmare if you aren’t careful when shopping for the actual loan.

Remember that a mortgage broker’s job is basically to intimidate you to save their company and themselves as much of the profit as possible, so hold your ground firmly when it comes to negotiating a good deal and do not agree to one that you don’t feel comfortable with signing.

The Next Step

Once you’ve read all of the above suggestions and know that you’re prepared both mentally and financially to consider obtaining a mortgage, get out there and start exploring your options. Compare and contrast rates, payment plans, and up-front costs to find the most affordable loan, and remember to never settle for second best. Good luck!