Loans, Insurance & credit card information

SBA Loans

Explanation: The Small Business Administration is an independent agency of the federal government. Its mission is to help people start, build and grow businesses. The SBA does not actually supply the loan; lenders are responsible for that part. But the SBA guarantees between 50 to 85 percent of the loan, making the lender less wary of lending to riskier borrowers. The SBA does this by backing and securing loans that are given by banks.

Requirements/Documentation: Applicants of SBA loans will be required to provide a business profile, loan request, collateral, business financial statements and personal financial statements.

Pros: SBA can back loans of up to $2million dollars. Start up businesses can also take advantage of SBA loans if they meet the requirements, provide the proper documentation and present a sound business plan.

Cons: Borrowers are at the SBA’s discretion when it comes to getting a loan. They have to be able to persuade them that the loan will be put to good use, and they must outline exactly how the loan will be used. Also, as bank lending practices tighten, SBA loans are also becoming harder to receive.

Business Line of Credit

Explanation: A business line of credit is like a credit card for one’s business. A business line of credit offers revolving credit with lines that typically range from $10,000 to $100,000.

Requirements/Documentation: Many different banks offer business lines of credit. They may offer lines of up to $25,000, or lines of $25,000 and over. Requirements may vary depending on the lender that you are working with.

Pros: You have accessible cash on hand anytime you want. Also, many lenders do not require borrowers to have collateral to receive a business line of credit.

Cons: Like a personal credit card, you must pay interest on the outstanding monthly balance.

Business Cash Advance

Explanation: A business cash advance is a purchase of a business’s future credit card receivables. Borrowers receive an upfront lump sum and in return, a small percentage from their business’s future credit card sales is deducted and used to repay the advance.

Requirements/Documentation: Most business cash advance lenders require that the borrower has a business that has been in operation for at least four months, and that the business processes a minimum of $2,500 per month in credit card sales. Borrowers must provide lenders with at least the four most recent months of their business’s credit card statements.

Pros: Borrowers do not need to have collateral to receive a business cash advance. There is no interest on the advance, and there are no fixed monthly payments. There are also no penalties for repaying the advance slower or faster than expected. Also, there are no restrictions on how your business cash advance can be used.

Cons: Business cash advances can not be used to fund start-ups, as the borrower must have owned his/her business for at least four months to be eligible to receive the advance. Also, only merchant businesses that process credit card transactions are eligible to receive business cash advances, as the payments are taken as a small percentage from a business’s daily credit card sales.

Unless you have a 760 or higher FICO score, it might be a good idea to review your credit report and see what you can do to improve your credit score. After the credit crunch, obtaining auto and personal loans became much harder. Today, what used to be considered excellent credit may only qualify for good credit, and it is that much more important to maintain a high score.

Generally speaking, a 760 FICO score will get you the very best rates at the very best loan terms. Anything higher really will not change what an auto lender can offer you since you will likely already qualify for the very best deal. If you have a 720 credit score or so, you should still be able to get a pretty good rate on your auto loan and not have any trouble getting approved.

Where you will start to have trouble is if you fall below a 720, which is the national average credit score. When you fall below this less than perfect credit level, lenders start seeing you as a risk and will start charging higher interest rates in order to offset the risk. Depending on the credit grade the lender is willing to lend to, you may not even qualify for a loan.

Once you fall below a 700 FICO score, you have a greater chance of getting your loan automatically denied before a human even reviews your credit report. At this point your only resort is to seek a bad credit lender, or get to work on fixing your credit score. Luckily, there are a number of quick fixes you can make to improve your credit rating and get the loan you need at the rate you want.

Reason #1: tax advantages equal an increase in your paycheck.

There are many advantages to using a VA home loan. They include: no money down, no private mortgage insurance, no buyer paid closing costs (most cases), the ability to use BAH as an investment, a government guaranteed home loan, a certificate of value and much much more.

There are many advantages to home ownership. Among those include; pride of ownership, home equity, personal autonomy, long term investment strategy, and the focus of this article; tax incentives. Tax incentives are among the most overlooked advantages to home ownership. This is especially true for first time VA home loan buyers. Tax advantages for the VA homeowner include the first time home buyers credit and the various home ownership tax deductions. In this article, I will attempt to explain both to the perspective of a VA home loan owner.

When you become a home owner, you are given the ability to claim certain tax deductions from the IRS. If you itemize your tax fillings, you could save up to $108,000 dollars a year (as of 2006). Simply by adjusting your withholding, you can receive hundreds or even thousands of extra dollars in your paycheck or LES deposit each month!

What is deductible? The following is a list with a brief explanation of the most common deductions. In some cases, even expenses and closing costs paid for by the seller can be deducted.

Mortgage interest. You can deduct interest on up to $1.1 million of loans used to buy, build or improve your first or second home. This is especially important due to the fact that a 30 year VA home loan is fully amortized. This means that a bulk of the first decade of payments in a VA home loan are interest. This interest can be a tax deduction. This alone can increase you tax deductions by more than $1,000 per month!

Moving expenses. If a move is at least 50 miles farther from your old home you can deduct travel and lodging expenses for you and your family and the cost of moving your household goods. If you are prior service and use your VA home loan benefit, this can be a substantial sum.

Property taxes. Real estate taxes can be a major deduction totaling in the thousands per year! You can deduct state and local real estate taxes associated with your VA home loan paid during the year.

First-time home buyer credit. A new $8,000 tax credit is available to taxpayers who buy their first home after April 8, 2008, and before November 30, 2009. You are considered a first-time home buyer as long as you did not own a home during the three years leading up to the purchase of your new home. As of this writing, there is talk that the credit may be extended until the end of the first quarter 2010. This credit can even be used for a buyer that uses a VA home loan.

Energy credits. You can claim a credit for energy-saving home improvements. If your home is equipped (or if you install) solar units used to heat your home or water you can claim up to $1,500.

Home-equity debt. Interest on up to $100,000 of debt secured by your first or second home — using a second mortgage, or home equity line of credit — can be deducted, regardless of how you use the money.

Home-office use. A home office that is used exclusively and regularly for business purposes can be deducted from your tax returns. This includes depreciation, utilities and insurance for the office portion of your home.

Points. Prepaid interest percentage points you pay to get a VA mortgage for your principal residence are generally fully deductible in the year paid, or over the life of the loan even if you have the seller pay the points for you.

The following items are commonly paid at settlement (close of escrow) and can also be deducted:

Escrow fees or attorney’s fees, recording transfer and county stamp taxes, land survey, owner’s title insurance, prepaid interest, and repairs.

The gift form Uncle Sam keeps giving.

If you sell your home, most likely you won’t have to pay taxes on the profit. There are capital gains exclusions for homeowners. Up to $250,000 of profit from the sale of your home can be tax free; $500,000 if you are married and file a joint return.

Disclaimer: Copyright 2009 VAHomeLoanCenters.com – all rights reserved. Philip D. Georgiades is licensed by the California Department of Real Estate as the Chief Loan Officer for VA Home Loan Centers and is not a tax adviser. Please consult with a CPA to make sure you get all the tax breaks you are entitled to. Nothing in this article should be construed as tax advice. For more information go to http://www.VAHomeLoanCenters.com.

Unfortunately in today’s society, the need for bad credit student loans has become more common. But don’t feel that because you don’t have great credit, you will not be able to get education funding. You do have options for getting the money you need to complete your education.

There are actually some student loans that are not based on credit. Federal student loans can be gotten by almost anyone that needs one. You just need to fill out a FAFSA form and apply for a federal Perkins loan or Stafford loan. These loans also have very reasonable interest rates.

There are many private lenders that offer student loans to almost anyone, but you will be paying a higher interest rate on these loans. Cosigners are also another option for getting a loan. Many lenders will lend with a cosigner. Some of these lenders will drop the cosigner after a certain number of on-timer payments are made.

Grants are another option for getting money for school. Many education grants are need based, but not all of them. Grants can be based on many things. It is best to get a list of grants and see what is available. Most grant lists are free, but you may have to pay a small shipping fee. Education can be quite unique and may give you a resource you had not considered.

One of the best options for free tuition money is tuition reimbursement through an employer. Many people get degrees with this method. A large number of employers offer reimbursement on tuition as a benefit. Now this means you have to come up with the money for the first quarter through another option or you will have to attend a school that allows you to defer your tuition until you receive your reimbursement check. You usually get about $5,000 per years as a full time employee. It must also be understood that most employers will require you to work for them for up to 2 years after you graduate. This method allows a large number of people to get a college degree without a loan. Without a loan, the status of your credit is not important.

There are more options for students with bad credit than one might think. You just have to know where to look. Bad credit student loans are available, but you may need a cosigner or get a federal student loan. Do not let lack of money keep you from getting an education. You do have choices.