How to Acquire a Home and Build Equity Even with Poor Credit

Until recent years, if you had a middle score of 520 or even as low as 500, you could qualify for mortgage. For example if your Experian score was 513, your TransUnion score was 522, and your Equifax score was 507, your middle score would be 522. 

That would be the score the mortgage company would use to set up your mortgage financing. 

Because of this low score, you may have had to accept a higher interest rate, come up with a higher down payment, or our accept a lower loan-to-value if you are refinancing, but you could still would have gotten your financing done.

Now, you must have a middle score of at least 620 to even get considered.

And along with the need for a higher score, the interest rate for a conventional loan is 4.12%. And, for a FHA loan the current interest rate is 3.75 % if you and the property meets the qualifications. Both of these rates require specific down payments and closing costs.

Nevertheless, despite these mortgage requirements, you still have a chance to acquire your home and build equity. You just need a higher level of sophistication and be willing to carry out your search either with or without a realtor. 

Here are some choices:

Rent with an Option to Buy.
Many sellers are realizing that buyers are having more difficulty qualifying for a mortgage, but have a steady job, adequate income, and some savings. This type of buyer would make a good candidate for Rent with an Option to Buy.

Contract for Deed
This is often referred to as buying on an installment contract or just buying on contract. This as another option for the similar type of buyer, but gives the buyer more rights while living in the property.

Seller Financing
On occasion a seller might have a need to move because of a death in the family, a need to relocate for employment purposes, or just tired of the property and the location. If the property has a low mortgage balance or a non-existent one, the owner may be receptive to a wraparound mortgage. 

In a situation like this, the owner may agree to an amount which will wrap around his current monthly mortgage payment as well as a give him a profit.

The details covering the owner and buyer obligations are very important and it would be wise to consult a real estate lawyer to review the agreement.

Finding these types of sellers will require persistence and follow through. These types of sellers generally advertise in the classified sections of the local newspapers. 

They are receptive to your calls and offers and although they may be tough negotiators, it is possible to have a meeting of the minds. The key is being diligent and persistent.

Almost ready to make a decision? E-mail me at wwillbar@gmail.com or call (773) 614-3201

 

Don't Buy Health Insurance Until You Read This

Keep Regular Dental Visits

It has been said that the best health insurance is moderation. 

However, even though you may be conscientious enough to get a regular physical examination, you may unexpectedly experience symptoms that may require you to get an urgent examination to find out what’s going on and to get treatment.

If hospitalization is necessary, then you have to get admitted. To meet these expenses without insurance can wreck havoc on your bank account.

According to the National Association of Health Underwriters, only 5 percent of Americans get their health coverage from an individual health insurance policy. Individual health insurance is a type of health care coverage that is provided to individuals rather than to employers or organizations. It can be sold to an individual or to a family.

There are 4 major advantages to choosing an individual health insurance plan rather than employer-based coverage:

1. You can customize your coverage, where employer-based coverage may provide limited options.
2. You have the freedom to pursue better rates with other companies.
3. Depending on your circumstances, it may be more affordable than employer-based health insurance, particularly if you're paying for coverage via COBRA.
4. It's not dependent on an employer. Individual health insurance plans protect you no matter where you work.

Maintaining health insurance coverage doesn't have to cost a fortune and neither does dental insurance. Here are a few ways to help keep your health insurance premiums low:

1. Costs can vary widely depending on the insurer, sometimes by as much as 50 percent for similar plans. Make sure you shop around.
2. The higher your deductible, the lower your monthly premium. You'll be responsible for more out-of-pocket costs should you need to file a claim, but the money you save on your premium may be well worth the risk.
3. Keeping yourself healthy can save you money on health insurance costs. Excess weight or tobacco and alcohol usage will drive up your premium.
4. If a member of your family isn't in perfect health or is of advanced age, it may be more affordable to purchase separate health insurance plans.

Protect yourself and your family with the health insurance coverage you deserve.

Any comments? Leave them below. For a free consultation, call (773) 614-3201 or e-mail me a bwillbar@gmail.com.  

Whole life, Universal Life, or Term - How to Decide What's Best for You

A whole life insurance policy covers you for your entire life. Your death benefit and premium in most cases remain the same. 

Whole life also builds cash value, which is a return on a portion of your premiums that the insurance company invests. This tax-deferred cash value can be borrowed to help finance your children's education and is self-completing if either parent unfortunately experience an untimely death. 

Whole Life
A whole life insurance policy may be used as a part of your estate planning. Consequently, whole life insurance is a good choice for you if you want to ensure that you have a life insurance policy in place for your entire lifetime and can comfortably afford the premiums, 

While whole life insurance is designed to provide coverage on the insured for the insured's entire life as long as the premiums are paid and the policy has not been surrendered, 

Universal Life
Universal life is a type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element, like whole life insurance, which is invested to provide a cash value buildup. 

The death benefit, savings element and premiums, can be reviewed and altered as a policyholder's circumstances change. 

In addition, unlike whole life insurance, universal life insurance allows the policyholder to use the interest from his or her accumulated savings to help pay premiums.

Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. 

Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on their individual circumstances. 

For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums.

Universal Life and Whole Life Compared
Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly. As an example, the Indexed Universal Life may base the performance of its cash values on one of several indices, including the S & P 500 or the Dow Jones Industrial Averages. 

Moreover while it provides an opportunity for growth, it has guaranteed returns and provides considerable stability. In that it provides both growth potential and a safety net, it is excellent for college planning or retirement supplemental planning.

Term Life

Term life insurance provides coverage only for a fixed period 10, 15, 20, or 30 years, as stated in the policy. And, it has no cash build up. While it can be extremely affordable for a person in good health up to the age of fifty. After that age, the premiums start to get progressively more expensive. 

Term should be purchased if you only need insurance for a specific period of time, such as if you want an outstanding fifteen or thirty year mortgage balance paid off in the event of an untimely death.

Any comments on the needs for  life insurance? Leave them below. If you need a quote, call (773) 614-3201.