Urgent Mortgage Loans for Home Buyers

If you haven't yet sold your home and you need a loan to purchase a new one fast, or if you are an investor and you need an urgent mortgage loan to buy a foreclosure house, then you should consider government or privately funded instant loans. These loans offer fast solutions to your mortgage financial problem. The following are some of these types of loans.

1. Hard Money Loans

If you are investing in real estate, and you want to overturn a house in a year, then hard money loans are the way to go. The lenders of hard money loans consider your ability to repay the loan, your current cash reserves, and your credit-to-debt ratio. They also look at your level of experience in renovating houses and the area you are planning to invest.

Advantages
• These loans get finances from private investors.
• With this type of loan, you can buy a house through an auction.
• It is easy to get the loans as it only takes five business days for the loan to be approved.

Disadvantages
• You may have to make a massive deposit if your credit score is low compared to the lenders' standards.
• You must have less than seventy-five percent loan-to-value ratio for you to acquire a hard money loan.
• Interest rates and origination fees are typically higher on hard money loans compared to other market average loans.

2. VA Loans

VA loans are ideal for surviving spouses, veterans and active-duty service members. These loans are supported by the United States Department of Veterans Affairs. VA loans can be used to build, buy or improve homes. For you to qualify for VA loans, you must have a Certificate of Eligibility from the VA. You also have to meet their income and credit requirements.

Advantages
• VA loans do not require brokerage or any commission fees.
• They do not require deposits or monthly payments for mortgage insurance.

Disadvantages
• Closing costs and interests rates vary.
• You will have to pay a percentage of the loan as a VA funding fee.

3. Bridge Loans

A bridge loan is designed to bridge the gap between securing permanent financing and buying a property. It is applicable when you want to buy an investment property or when you want to buy your dream home, and you haven't sold your current one.

Advantages
• There are no prepayment fines that come with the bridge loans.
• You can purchase a new home before you sell your current one.

Disadvantages
• The bridge loans interest rates are usually higher than the fixed-rate mortgage loans by 2 percent.
• The closing costs of a bridge loan might be higher than that of other loans.

4. Jumbo Loans

Purchasing a luxury home might not be possible with regular home loans. Getting a jumbo loan helps you go beyond the traditional loan limit fixed by the Federal Housing Finance Agency. The loan limit set by the FHFA ranges from 424,100 USD to 636,150 USD. The limit depends on where you are residing. Having a more than 700 FICO score is an advantage.

Advantages
• Jumbo loans have reasonable rates.
• Buying limits are much higher compared to usual home loans.
• These loans are more affordable than regular loans in some areas.

Disadvantages
• The loans require a higher deposit, usually twenty percent.
• Your debt- to –income ratio must be less than 45%.

5. Federal Housing Authority (FHA) Loan

The FHA loan is covered by the Federal Housing Authority hence it lessens the lender's risk. This will enable the lender to give you a better deal. Only lenders that are approved with FHA are allowed to give out these loans. These loans are designed for people who want to become homeowners. FHA loans have low deposits and closing costs. The loans are usually disbursed in two to three weeks.

Advantages
• The deposits are 3.5%.
• If you have a down payment of at least ten percent and a 500 FICO score you might get approved for the loan.

Disadvantages
• You must have a private mortgage insurance.
• You must meet all the requirements such as income, credit score, and monthly debt score.

6. First-Time Homebuyer Grants

These loans are available through your local government, state or county. The United States Department of Housing and Urban Development support the grants.

Advantages
• These grants make buying a home much more affordable.
• It is not a must you repay the homebuyer grant.

Disadvantages
• The grant does not cover the whole amount of your home's cost.
• You have to qualify for a mortgage to get a grant.






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