Texas |Home Loan | Mortgage | Refinance

Archive for September, 2010

When it comes to paying for a college education, the biggest source of direct student aid is grant money for college. After all, the best money is free money, and while loans and scholarships make up more than 50% of student aid, grant money for college are widely preferred because you don’t have to pay the money back.

The qualifications for grant money for college, however, can be very strict. Unlike in loans and scholarships where money may be awarded based on your credit standing or merit, grant money for college is usually based largely on need.

The Free Application for Federal Student Aid Program under the Department of Education even has a specially designed formula to determine whether or not the student is in dire need of financial assistance from the Federal Government for his education. Grants aren’t just given to anybody; you will have to prove that you or your parents do not have the means to support you in college.

In addition to the economic restrictions, grant money for college is often parceled out on a first-come, first-serve basis. Government funds are limited and you certainly cannot expect government to fund every student in need that comes their way. So late applicants will have a lesser chance of winning a grant from government since all the money reserved for student aid would have been given to earlier applicants. That’s why it’s very important to apply early for financial aid and be aware of any available grants that might help lower your overall college contribution.

Below are the basic types of grant money for college:

Federal Pell Grants

Considered as the largest grant money for college program, Pell grants ranged from $400 to $4,050 for the 2004-2005 academic year. These grants are based solely on need. The entity who will determine the student’s need will be the college of choice but with the use of guidelines that have been previously approved by the Federal Government.

Eligible colleges receive a fixed amount of Pell money each year, and many students apply for a grant every school opening. The grant money runs out pretty fast and once it’s gone, it’s gone. So if you want to win a Pell grant for college, then apply for aid early.

Federal Supplemental Education Opportunity Grants

The grant money for college you receive from one grant may not be enough to support all your expenses. That’s why the government is offering the Federal Supplemental Education Opportunity Grant Program. This grant program is reserved for the neediest of students and may supplement your grant money for college with amounts ranging from $100 to $4,000. Like Pell grants, you may apply for this grant through your college’s financial aid office.

State Grants

Most states have some kind of free money program, based on need, targeted to encourage study in certain areas, such as teaching or nursing. The State of California, for example, has 3,000 Cal Grants for future teachers. The grant comes with certain obligations, such as in the case of Cal Grants, the grant money for college must be repaid if the student doesn’t end up teaching in low-income area for at least one year for every $2,000 received.

The new Stimulus Package Obama’s administration has put forth is a new initiative aimed at assisting struggling homeowners at risk of foreclosure or bankruptcy. Chase bank and others are involved with providing their customers with options from the government plan. In addition, they offer a jumbo, adjustable rate (ARM), interest only, or a fixed rate, among other measures to help homeowners keep their homes.

The Stimulus Plan is divided into two main programs — one is for loan modifications, the other is through refinancing with revised guidelines. Homeowners can apply for either option with Chase, but will need to know the following before doing so:

* Prepare your paperwork ahead of time, including your bank and credit card statements, tax returns, and a clear and concise hardship letter that can gain your lender’s empathy, so that you can be granted the help you need. Having all your documents in order will ensure that your case will be given consideration in a lesser amount of time.

* Be timely in maintaining contact with the bank. Be as available as you can for their attempts to reach you, returning their calls as promptly as you can.

* If you are looking into applying, or have questions during the process, visit Chase’s website or your local branch directly to speak with them. This will save you time and continue the process.

* Be truthful in your information, but know ahead of time what you plan on saying to explain your finances during your in-depth interview and in providing your paperwork. Any falsified information will be discovered, and can potentially hurt your chances of receiving a loan modification or refinance for your home.

* Know that only Fannie Mae or Freddie Mac owned loans will be considered for the application process. Also keep in mind that the amount you owe on your mortgage must be greater than 105% of the current market price for your home’s worth. These stipulations are mandatory in even being considered for the programs.

* Utilize known resources, such as the Federal Housing and Urban Development department (HUD). Since their services are free, you can receive advice and information on how best to approach Chase.

For tips and facts about how you can benefit from Obama’s Home Stimulus Plan – or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net

Article Directory: Article Dashboard http://www.articledashboard.com

NEW YORK — Have you been working to boost your credit score before trying to get a mortgage? It may not yield the payback you expect. The mortgage loan interest rates offered to borrowers with stellar FICO scores aren’t much lower than the rates offered …
Go to Source

Bank of America and United Midwest Savings Bank have become the first financial institutions to assemble SBA 504 first mortgage pools to be sold on the secondary market, the U.S. Small Business Administration announced today. The announcement follows the …
Go to Source

The Help Desk is all about getting answers to your financial questions! Send an e-mail to CNNHelpDesk@CNN.com.
Go to Source

With a new home, a family needs to sell their prior house.
Go to Source

Experienced bankruptcy lately? You may wonder if you will still will be able to get a home loan. You may also be wondering if buying home after bankruptcy is a good idea for you.

While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.

They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.

This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.

Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:

Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.

After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.

You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.

Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.

Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.

It is very tempting to buy an new home, new car, do some renovations, etc., after bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment due to the financial experience that you have.

But it is not that easy so here are some factors to consider before committing yourself to a new house payment.

The Pre-payment penalty. This penalty is usually about 6 months worth of house payments. And usually lasts from 2-3years. Once you sign those mortgage papers you absolutely have to make those payments. If you don’t have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.

The Two Year Mark. Keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty.

So, if you are within 6 months or so from the 2 year mark. It would be smart to wait it out and have more mortgage loan options.

Borrowing Too Much. This is the most common mistake that we usually get into. If you do decide to buy a house, buy one that you know you will be able to afford. Don’t max yourself out on credit, living right up to the edge of your income.

If your income suddenly drops, you’ll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.

Most of us always think that bankruptcy is the end of our credit life. But don not despair because I know some people that have been in to bankruptcy but has been able to get up again and rebuild there credit quickly most of them has even been able to buy a new house.

Bankruptcy will show up on your credit report for 10 years. That means that every mortgage lender will certainly see that fact when evaluating your mortgage application.

Although it may be difficult to find a bank to give you a mortgage it’s certainly not impossible. Banks want to make money and you may find one that’s willing to take the risk.

To read about ninjutsu techniques, racism in the workplace and other information, visit the Knowledge Galaxy site.

Article Directory: Article Dashboard http://www.articledashboard.com