Bankers and Advisors to the real estate industry.
The firm will primarily be active in assisting buyers & owners or commercial real estate properties with their financing needs. The firm can also assist buyers in performing the due diligence process, and can assist owners in re-positioning their properties.
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Experiencing ‘Purchase Anxiety’? How to Calm Your Nerves Before Committing to Buy a New Home Experiencing 'Purchase Anxiety'? How to Calm Your Nerves Before Committing to Buy a New Home Whether this is your first big purchase, or your family is moving to a new location or looking for more space, buying a home has its share of ups and downs. It’s perfectly normal to feel anxious about whether or not you’ve found the right property. Here are some things you can do to make yourself feel more secure with your decision. Do The Math You’ve probably already done this, but it’s okay to go over it a number of times to be sure. Factor in your household income and all the bills you expect to pay every month. Add everything up. It sounds like a stressful activity, but when you look at the numbers and realize that buying a home is actually doable, it can be a liberating feeling. When you know for sure you can make it as a homeowner without getting underwater, you will feel more confident. Meet The Neighbors If you haven’t had the chance to knock on a couple of doors yet, you should spend some time saying hello to people in the neighborhood. The more you can get to talking with families that are just like yours, the more you will be able to picture yourself as a member of the community. If you have kids, find out if there are other kids the same age nearby. That will help to ease their anxiety about moving as well. Ask Your Agent Don’t feel like you are being overly cautious if you ask your real estate agent and or mortgage professional your lingering questions. Make sure you’re getting a good price for the area, and make sure you know about any issues with the condition of the property. You should be able to trust that your realtor and mortgage professional are excited for your decision. Familiarize Yourself With The Neighborhood Take a drive and figure out which stores you’re nearest to, the route you can take to get to work, and which other amenities you might take advantage of. Home buyers often underestimate how important living in a safe neighborhood with plenty of accessible businesses can be. The more you can imagine yourself living at your new address, the better you will feel. Remember, never sign the papers on a new home unless you feel one hundred percent secure in your buying decision.
Mortgage Terms 101: Understanding ‘Cash-Out Refinancing’ and How to Determine if It’s Worth It Mortgage Terms 101: Understanding 'Cash-Out Refinancing' and How to Determine if It's Worth ItWith interest rates remaining near historic lows for the past several years, many of your friends and neighbors may have already told you that they have refinanced their home mortgages once or even a couple of times. A cash-out refinance can provide you with several important benefits, but it is not the best option for all homeowners. By learning more about what a cash-out refinance is and what the pros and cons of this type of refinance loan are, you can make a decision that is best for your current and future plans. What Is a Cash-Out Refinance? When you refinance your home mortgage, you can select a rate and term refinance which does not pull equity out of your home, or you can select a cash-out refinance to access some of the equity in your property. You can research your property value and your outstanding principal balance to determine how much equity you have available. Keep in mind that most lenders will not allow you to access all of the equity, and you can obtain more information about the loan amount you may qualify for by speaking with a mortgage professional. The Benefits of a Cash-Out Refinance If you decide to apply for a cash-out refinance loan, you may be able to walk away from the closing table with tens of thousands of dollars or more. This is money that you may use for any purpose, including home improvements, paying off high interest rate credit cards, sending the kids to college and more. In addition, you may enjoy other benefits from refinancing, such as lowering your interest rate and mortgage payment and adjusting your loan term to meet long-term goals. When a Cash-Out Refinance May Not Be Advisable A cash-out refinance loan can be beneficial, but there are instances when it is not the best solution. The loan will adjust principal reduction, the loan payoff date, the interest charges and other factors. The adjustment of these factors may make your new loan less advantageous for you in some cases, so you should carefully consider the full impact of refinancing before you decide to move forward. From learning more about the benefits of refinancing to finding a competitive rate for your new mortgage, there are many factors to consider. You can speak with a mortgage professional today to inquire about the cash-out refinance loan terms that you may qualify for and to explore the options in greater detail. If you are thinking about applying for a cash-out home loan, contact a lending representative today.
Five Tips for Managing Your Monthly Budget to Ensure Your Mortgage is Paid On-Time, Every Time Five Tips for Managing Your Monthly Budget to Ensure Your Mortgage is Paid On-Time, Every Time Homeowners who are struggling to make their monthly mortgage payments can make it easier on themselves by cutting costs in other areas. Learning how to budget effectively will likely enable homeowners to pay their mortgage payments on-time, every time. Here are five of the best budget tips: Conserve Energy It is advisable to be mindful of energy use in order to keep utility bills down to a minimum. Lights, televisions and other devices requiring electrical power are best to leave off in unoccupied rooms. It is also a good idea to make sure that windows and doors are properly sealed so that energy is not wasted. Stay Committed to Couponing All too often, coupons that arrive in newspapers or through emails are quickly discarded. Collecting coupons from various sources can give homeowners the chance to save big on groceries, entertainment and other everyday purchases. Some of the savviest consumers have been known to spend practically nothing on their purchases by simply staying committed to the art of couponing. Watch Credit Card Usage Having a credit card often creates a false sense of financial security. Many card holders are tempted to charge their credit cards up to their limits only to be burdened with high interest rates and inflated minimum payments. Credit cards are best to use only in times of emergencies. Consider Alternative Transportation Methods Fuel costs, auto repairs and other expenses associated with driving a vehicle on a frequent basis can make it much harder for homeowners to stay on top of their mortgage payments. People who have access to adequate public transportation may be able to significantly reduce their commute costs. Car sharing services give people the opportunity to use a car on an as-needed basis and often prove to be a smarter alternative to owning a vehicle. Keep Expense Records It can also be easier to set money aside for mortgage payments if expenses are carefully monitored with a detailed eye. It is best to closely scrutinize receipts, bank statements and other financial documents for any discrepancies. Keeping track of expenses on a spreadsheet so that all financial information is clearly displayed may be another practical idea. Smart budgeting practices can help homeowners save the extra money they need to pay their monthly mortgage payments before each due date passes. Contact a local mortgage professional to learn more clever ways to manage money while trying to pay on a mortgage.
Can’t Get Pre-Approved for a Mortgage? Here Are Three Tips to Try to Get a Mortgage Approval Can't Get Pre-Approved for a Mortgage? Here Are Three Tips to Try to Get a Mortgage Approval Few people in the world can afford to pay the entire cost of a new home upfront, which is why banks and other financial institutions offer home loans. Also known as mortgages, those loans let you make monthly payments to pay off the money you borrow and the interest charged on that loan. If you can’t get approved for a mortgage, try using a few easy tips. Improve Your Credit Score When you apply for a home loan, the lender looks at your credit history and credit score first. Your credit history contains a long list of all the money you borrowed in the past, but it also shows your total debts, medical bills and if you had a foreclosure or a bankruptcy. Your credit score is a three digit number based on your ratio of debt to credit, any defaults on your account and any issues you had in the past. If a lender denies you for a mortgage, get your credit score up before you apply again. Even something as simple as paying off more of your debt can increase your score by a few points. Eliminating bad debts and removing any mistakes from your credit report can also help. Apply with a Cosigner Applying for a loan with a cosigner is another option for those with poor credit. The lender will put more weight on the credit score of your cosigner than the lender does on your own credit report. You want to find someone with a close connection to you and someone who has a good credit score. Your cosigner agrees to pay back the loan if you default on that loan. The loan will also appear on your cosigner’s credit report, which means you need to find someone willing to take a chance on you. Look for Cheaper Homes After applying for a loan, the lender looks at your credit history, your income and other factors to determine how much money you can borrow. Applying for a more expensive home might result in a rejection. The lender can determine that you cannot afford to purchase that home, but applying for a home that costs less might help you get the loan you need. It’s possible for you to obtain a mortgage that helps you pay for the home of your dreams. Applying with a cosigner, improving your credit and looking at cheaper homes might help you get that loan.
Amerisave on the hook for alleged mortgage scheme ATLANTA – Aug. 18, 2014 – The Consumer Financial Protection Bureau (CFPB) is ordering Amerisave Mortgage to pay $19.3 million, alleging the lender scammed thousands of customers with a bait-and-switch mortgage-lending scheme. CFPB also accuses Amerisave affiliate Novo Appraisal Management Company and Patrick Markert, the owner of both companies, of involvement in the scam. CFPB says that between mid-2011 and 2014, Amerisave advertised misleading interest rates and then locked customers in with pricey up-front fees. The agency alleges that Amerisave failed to honor its advertised rates to customers and illegally overcharged them for affiliated "third-party" services. "By the time consumers could have discovered that the advertised low rates were too good to be true, they had already committed to pay hundreds of dollars to Amerisave," says CFPB Director Richard Cordray. Amerisave advertised its low interest rates through online banner ads and searchable rate tables on third-party websites. When customers clicked on the ad, they were then directed to Amerisave's website, which provided consumers with quotes based on an 800 FICO score, even if customers had entered a lower FICO score on the previous third-party website. As such, CFPB says that customers were being provided with misleadingly low interest rates. CFPB also alleges that consumers were required to order and pay for an appraisal before Amerisave would provide a Good Faith Estimate for the mortgage. Amerisave then charged consumers for "appraisal validation" reports and failed to disclose that NOVO provided the service, a move that violates RESPA. According to the CFPB, the price charged on the appraisal report was inflated by as much as 900 percent. Amerisave and Novo have been ordered by CFPB to refund $14.8 million to customers who were affected and pay a $4.5 million penalty. Markert is ordered to pay an additional $1.5 million penalty. Source: "Amerisave to Pay $19.3M for Bait-and-Switch Mortgage Scheme," Atlanta Business Chronicle (Aug. 12, 2014) and "CFPB Takes Action Against Amerisave Mortgage," HousingWire (Aug. 13, 2014) © Copyright 2014 INFORMATION, INC. Bethesda, MD (301) 215-4688
If UCP can assist you with obtaining an SBA loan for your business, please contact our office. Below are some SBA Webinars that may be helpful: South Florida District Webinars: Wednesday, August 20, 3 PM. "Getting to Yes - How to Help Your Lender Help You Get a Business Loan" Seeking a business loan from a bank? Have you been turned down before, or are just unsure of what the bank requires when requesting a business loan ? Learn How to get closer to getting from "NO" to "YES"! Thursday, August 21, 2 PM. "Take Your Business Global" Learn how to reduce your risk of nonpayment when selling overseas—four international methods of payments explained and compared How to finance your export development activities, working capital needs, and business expansion plans —using SBA and Export-Import Bank export financing programs. Most webinars are scheduled for one hour. Participants can ask questions about the information. Log-in and connection information can be accessed by clicking on course titles. Registration is encouraged so instructors can provided last minute log-in instructions or other change information if needed. "IN-PERSON" South Florida Business Events: Thursday, August 21, Homestead, 9 AM. "Lending Possibilities for Small Businesses" Join SBA South Florida District's Althea Harris as she joins a discussion about the Lending Possibilities for Small Business. Althea will talk about SBA Finance resources. This breakfast event is part of the Miami Dade Economic Advocacy Trust's Breakfast Series. Thursday, August 21, Tampa, 9 AM. "SBA Loans and Other Programs" Learn about the resources available to small business owners and entrepreneurs via the U.S. Small Business Administration. Senior Area Manager Robert Chavarria will talk about the SBA loan programs and more. Let UCP help you grow your business with an SBA loan.
3 Benefits of a Reverse Mortgage A reverse mortgage allows you to turn your home equity into cash, and can be a perfect solution for individuals who are 62 or older. Here are 3 benefits of a reverse mortgage. #1 The Loan is Paid Back with Home Equity After taking on a mortgage, there are many costs that you have to worry about. One of these problems is mortgage insurance premiums. Add interest and fees from lender service providers to the mix, and you’ve got yourself many costs. All of these fees can create tremendous headaches, as a large chunk of the loan amount goes into covering these costs. When you undertake a reverse mortgage, you don’t have to worry about any of that. The loan is paid back with home equity, not ongoing cash flow, so monthly payments aren’t a worry. #2 Income You’ll be Getting From the Loan is not Taxable If the reason you’re hoping to get a reverse mortgage is your low income, the last thing you want is that income to be the deciding factor. With this type of loan, it’s not an issue. That’s because the thing that determines eligibility is your house’s value. In fact, the income you’ll be getting from this loan is not taxable, which means you’ll be able to keep it in full. Plus, any benefits you get from Medicare will not be affected, and neither will your Social Security. As such, what you’ll be getting is a loan that doesn’t take into account your current income. Rather, it adds on to it, without creating any issues for you. Plus, you’ll be able to get the money in several different ways, which means you’re in control. Lastly, the money you get is fully yours. That means that you can use it for anything you want, whether that means you’ll be paying off other loans, or simply funding your day-to-day needs. #3 Yet Get to Stay in Your Home Your house is yours because it feels that way. It’s the place in which you’ve invested money and effort. It’s also the place where many loved memories were created, and where they’ll keep on being created. One of the hardest things for the elderly is being removed from their loved homes and placed into care. They have to leave the place they’ve grown to love. Worse than that, they’re thrown into a world they don’t know. With a reverse mortgage, this doesn’t need to happen. With this type of loan, you get additional income, and you get to stay in your own home. Not only that, but you’re also keeping the title to that place until you move, pass away, or reach the end of the loan’s term. Your home will stay yours, both effectively and in the documents. Learn More There are many more reasons why a reverse mortgage is a great idea. However, the fact that you’re in complete control of the income you’ll be getting is one of the most important things. To learn more about the Reverse Mortgage Program please contact us at 305.894.4100 Ext 3651 or at firstname.lastname@example.org when you are ready to discuss a reverse mortgage with a Loan Counselor.
How Does a Reverse Mortgage Work? A reverse mortgage is a home loan that provides cash payments to senior citizens based on home equity. Homeowners typically defer payment of the loan until they die, sell, or move out of the home, but other payment options are available. Check the specific rules for reverse mortgage transactions, since laws can vary by jurisdiction. Think about a reverse mortgage like you would any other home loan. You have to qualify and meet certain criteria, just like any mortgage. But with a reverse mortgage, you can take the cash value of your equity, and postpone payments of the mortgage until you leave the home, typically at the time of death. For detailed information, see the HUD.gov website. Here are some of the bullet points from the HUD information: Borrower Requirements for a Reverse Mortgage You must: Be 62 years of age or older Own the property outright or paid-down a considerable amount Occupy the property as your principal residence Not be delinquent on any federal debt Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc. Participate in a consumer information session given by a HUD-approved HECM counselor Property Requirements for a Reverse Mortgage The following eligible property types must meet all FHA property standards and flood requirements: Single family home or 2-4 unit home with one unit occupied by the borrower HUD-approved condominium project Manufactured home that meets FHA requirements Financial Requirements for a Reverse Mortgage Income, assets, monthly living expenses, and credit history will be verified. Timely payment of real estate taxes, hazard and flood insurance premiums will be verified. You may be eligible for one of the following payment plans: Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence. Term – equal monthly payments for a fixed period of months selected. Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted. Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you remain in the home. Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower. Single Disbursement Lump Sum – a single payment at loan closing. Mortgage Amount Based On The amount you may borrower will depend on: Age of the youngest borrower Current interest rate Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price; and Initial Mortgage Insurance Premium HECM Costs As with any mortgage, there are costs for a reverse mortgage. The costs can be financed from the proceeds of the loan, which will reduce the net loan amount available to you. Fees and charges associated with a reverse mortgage include: mortgage insurance premiums (initial and annual) third party charges origination fee interest and servicing fees You will be charged an initial mortgage insurance premium (MIP) at closing, which will be 0.5% percent or 2.5%, depending on your disbursements. Over the life of the loan, you will also be charged an annual MIP that equals 1.25% of the mortgage balance. Apply for a Reverse Mortgage At UCP, we make applying for a mortgage easy. Give us a call at 305.894.4100 Ext 3651 to get started, or contact us online at email@example.com at your earliest convenience.
To all of our Facebook friends. If you are looking for a residential mortgage to purchase your dream home or simply wish to refinance your existing home mortgage, please call our office. If you mention that you saw this post on Facebook, we will give you $200.00 at the time of the closing for you to use towards your closing cost. UCP is a full service mortgage lender offering residential and commercial mortgages. UCP can also assist you with your financing needs for your business. UCP can assist you with making your dream of buying home a reality! Contact our at 305.894.4100 and our email is firstname.lastname@example.org, to speak with one of our experienced mortgage professionals to discuss the loan that fits your needs.
NAR: Pending home sales slip in June WASHINGTON – July 28, 2014 – After three consecutive months of solid gains, pending home sales slowed modestly in June, according to the National Association of Realtors® (NAR). The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, declined 1.1 percent to 102.7 in June from 103.8 in May – 7.3 percent below June 2013 (110.8). Despite June's decrease, the index is above 100 – considered an average level of contract activity – for the second consecutive month after failing to reach that mark since November 2013 (100.7). "Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved," says Lawrence Yun, NAR chief economist. "However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates." Despite the headwinds, Yun ultimately expects a slight uptick in sales during the second half of the year. "The good news is that price appreciation has decreased to its slowest pace since March 2012 behind much needed increases in inventory," he says. "With rents rising 4 percent annually, potential buyers are less likely to experience sticker shock and can make smart decisions on whether or not it makes sense to buy or continue renting." The PHSI in the Northeast fell 2.9 percent to 83.8 in June, 3.2 percent below a year ago. In the Midwest, the index rose 1.1 percent to 106.6, but it remains 5.5 percent below June 2013. Pending home sales in the South dipped 2.4 percent to an index of 113.8 in June, 4.3 percent below a year ago. The index in the West inched up 0.2 percent in June to 95.7, but it remains 16.7 percent below June 2013. Yun forecasts existing-homes sales to be down 2.8 percent this year to 4.95 million, compared to 5.1 million sales of existing homes in 2013. The national median existing-home price is projected to grow between 5 and 6 percent this year and in 2015. © 2014 Florida Realtors®
UCP arranges equity for Bravo and Partners 99500, LLC Bravo and Partners 99500, LLC acquires the old Largo Honda site in Key Largo, Florida. UCP arranged a portion of the equity needed to acquire the property from Bayamo Financial Services, LLC. Armando Bravo, the managing partner of the entity plans on redeveloping the property. UCP will be advising and arranging for the financing required to develop the property. UCP is a full service mortgage and real estate investment banker, assisting its clients with their financing and equity needs.
he U.S. economy has churned out some pretty encouraging news lately, but plenty of skeptical Americans still have much anxiety about this recovery. Major questions remain about certain aspects of the health of the economy, including stagnant wage growth, unemployment and corporate taxes. (Watch President Barack Obama discuss the state of the American economy in an exclusive interview with CNBC's Steve Liesman, Thursday at 5 p.m. ET on CNBC-TV and CNBC.com) After some weak numbers at the beginning of the year, the U.S. economy may be nearing a crucial turning point, economists told CNBC. "The economy is mediocre," said Joel Naroff, president of Naroff Economic Advisors. "But it's getting better by the month." A job seeker leaves his contact information at a career fair held by Union Square Hospitality Group in New York. Michael Nagle | Bloomberg | Getty Images A job seeker leaves his contact information at a career fair held by Union Square Hospitality Group in New York. A Gallup poll from July found that Americans are less worried about unemployment and jobs issues in the U.S. than in previous months, although 14 percent still said they think it is the most important problem facing the country. Despite these concerns, Michael Feroli, J.P. Morgan's chief U.S. economist, said he sees a promising employment picture. Jobs growth "seems to be doing as well as one could hope," he said. US jobs data glitter may not be gold Some worry, however, that strong jobs numbers—U.S. companies gained 288,000 nonfarm payrolls as the unemployment rate dropped to 6.1 percent in June—are masking less rosy economic trends. Not only are marginally attached workers still a significant part of the "regular" employment figure, but many Americans have become discouraged and disappeared from the workforce altogether. "I am concerned about the labor market," Wells Fargo senior economist Mark Vitner said in an email to CNBC. "We have so many people working part-time today that would like to find more meaningful work." But as employment figures continue positive trends, wages have remained stagnant, and this is "the missing link in this whole economic recovery," Naroff said. While jobs growth is usually expected to lag behind economic growth, workers' wages will trail positive employment trends, Naroff said. But as the economy begins to reach full employment (a point he estimates to be about nine months in the future), employers will be forced to increase pay to attract the best workers. Wages should begin to rise in the next six months, Naroff projected. Feroli agreed, saying "we may be close to a turning point."
If you are in the market to purchase a new home or wish to refinance your existing mortgage, this may be the time to do so. Mortgage Rates Lower in June, But Expected to Rise Through 2015 Mortgage rates are lower in June, hitting a new low for the month on June 25th by pushing the 30yr fixed rate for best-case scenarios to 4.125%. Although mortgage rates have pulled back slightly in June, experts still expect rates to rise over the next several months. So expect the longer-term trend to continue upward. Forbes contributor, Bill Conerly, updated his forecast for 2015 interest rates and expects mortgage rates to get up to about 6% by the end of 2015. Long-term mortgage rates get up to around six percent by the end of 2015, but that’s not deadly to the economy. The interest rate changes are not exogenous changes that will harm the economy; they are endogenous, the result of stronger economic growth and part of the automatic dampening that occurs as the economy expands.
Did you know that 95% of consumers live outside the United States? And a whopping two thirds of the world’s purchasing power is in foreign countries! Exporting can mean big things for your small business, and SBA is here with resources and information to help you succeed! • Financing Programs – SBA has three core export loan programs specifically designed to help you develop or expand your business' trade and export activities. • Expert Guidance – U.S. Exporting Assistance Centers (USEACs) are staffed by professionals from the SBA, the Department of Commerce, the Export-Import Bank and other organizations. They'll help you understand the global marketplace and get you organized. • Planning Tools – Perfect for the small business owner exploring exporting, the Export Business Planner is a free, customizable tool that helps you work through the critical processes of export readiness and planning. Your business may be small, but there’s a big opportunity in selling your product or service overseas. And SBA is here to help put you on the path to international success. If you are interested in knowing more about the SBA programs, please contact our office to speak with one of experienced account executives. UCP is a full service lender offering residential, commercial and SBA financing. We look forward to speaking with you and to assisting you with your financing needs.
Good morning all, we have been notified by several of our lenders that the are aggressively seeking to purchase the following loan types: Owner Occupied Commercial Real Estate Loans: Office Buildings Office Condominiums Warehouse Buildings Warehouse/Flex Condominiums Commercial Loans: Working Capital Financing Equipment Financing Aircraft Financing If we can assist you with any of the above financing, please contact our office to speak with one of our account executives. We look forward to serving you and to assisting you with your financing needs.
Home builder sentiment index jumps to 53 in July, crossing into positive territory The nation's home builders are clearly feeling better about the housing recovery. A monthly sentiment index from the National Association of Home Builders jumped 4 points in July to 53, finally crossing into positive territory; 50 is the line between positive and negative sentiment. "This is the first time that builder confidence has been above 50 since January and an important sign that it is strengthening as pent-up demand brings more buyers into the marketplace," said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Delaware. The number is beyond the Street's expectations of a 1-point gain and comes amid concern that the housing recovery has lost considerable steam. Home prices are still rising well beyond income gains, and even Fed Chair Janet Yellen, in testimony Tuesday to Congress, called the recovery "disappointing." Mortgage rates have not moved, but demand for home loans continues to fall.
CDC/504 Loan Program Eligibility To be considered for Certified Development Company(CDC)/504 loan, applicants must meet these eligibility requirements: Operate as a for-profit company Do business (or propose to) in the United States or its possessions Has a tangible net worth less than $15 million and an average net income less than $5.0 million after taxes for the preceding two years. Loans cannot be made to businesses engaged in speculation or investment in rental real estate. Be an eligible type of business. While the vast majority of businesses are eligible for financial assistance from the SBA, some are not. Check this list of eligible and ineligible types of businesses to see if your company qualifies. Under the 504 Program, Plan to use proceeds for an approved purpose. CDC/504 loan proceeds may be used for the financing of fixed assets like real estate or equipment. This list explains Eligible and Ineligible Use of Proceeds. Not have funds available from other sources. SBA does not extend financial assistance to businesses when the financial strength of the individual owners or the company itself is sufficient to provide all or part of the financing. Both business and personal financial resources are reviewed as part of the eligibility criteria. If these resources are found to be excessive, the business will be required to use those resources in lieu of part or all of the requested loan proceeds. Ability to repay the loan on time from the projected operating cash flow of the business Good character. SBA obtains a "Statement of Personal History" from the principals of each applicant firm to determine if they have historically shown the willingness and ability to pay their debts and whether they have abided by the laws of their community Relevant management expertise Feasible business plan If you are interested in an SBA loan to expand, equipment financing, or to purchase a property for your business please contact our office at 305.894.4100.
5 Reasons Your Business Credit Scores Don’t Get You the Credit You Need: When you apply for a new credit line or request a credit limit increase for your business, suppliers, creditors and lenders want to see how your company has handled its existing credit obligations in the past. This enables them to determine if they should approve your request and to help determine what terms they should offer. Lenders often use business credit scores to help them assess the level of risk a company presents. Business credit scores are calculated based on the information in a company’s credit report. In most cases, higher business credit scores mean lower risk to a lender when extending credit to a business. Your business credit scores are calculated by a statistically derived algorithm, designed to calculate risk based on a variety of factors. Although each business credit reporting agency has its own unique scoring models, scores and ratings, other types of information – such as financials, payment history and credit diversity – all play a role in the strength of your business credit reports and scores. Here are five reasons that may prevent your business from getting the credit it needs: 1) A weak or incomplete business credit profile – The report and demographics of a company play an important role in how creditors assess creditworthiness. A business with issues such as poor financials, outdated registrations or high-risk industry classification codes can trigger a denial of credit or unfavorable credit terms. So it's vital that your company’s documents, financials, filings, and registrations are complete, accurate and up to date. 2) Limited or negative payment history – Your payment track record demonstrates how well your company handles its current and past credit obligations. A company with limited or negative payment history will have a difficult time getting credit. Aside from paying invoices in a timely manner, keep your credit usage consistent. Regular purchases and timely payments are what establish a positive payment history; it’s what lenders want to see. 3) Low credit limits – Low credit limits across multiple accounts plainly reveal to creditors that a business has limited credit capacity. However, a business with high credit limits reveals that it has the ability to handle large credit obligations. As a result, a business will receive much larger credit limit recommendations, especially if the company has low revolving debts. If your company has a positive payment track record with an existing supplier or creditor, it may be in your company’s best interest to request a credit limit increase. 4) High credit utilization ratio – While the size of credit limits reveal what amount of credit your creditors are willing to extend to your company, credit utilization ratios show how well your business manages it. Creditors view a high credit utilization ratio as a business with excessive debt with a greater risk of default. Keep credit utilization ratios at 50% or below to avoid falling into this high risk category. Low credit utilization is a clear indication that your business can handle its credit obligations. Doing so will ultimately benefit you during the credit application process. 5) Lack of credit diversity – The types of trade lines your business has reporting play a substantial role in the credit granting process. Limited credit diversity may limit your company’s ability to qualify for certain types of funding. Having short term financing, revolving accounts, installment loans and open accounts reveals to creditors that your company can manage various types of credit responsibly. Bear in mind your business credit scores will certainly have the tendency to fluctuate with each business credit agency, so it's vital to monitor your business credit profiles on a regular basis. While business credit reports and scores are an essential tool for lenders, suppliers and creditors to assess credit risk; other factors such as banking history, revenues and personal credit scores may play a larger role if a business lacks depth, diversity and density in its files.
Last week brought news from the Fed as two Federal Reserve Bank Presidents made speeches and the Federal Open Market Committee (FOMC) of the Fed released the minutes of its last meeting. The minutes reveal the Fed’s intention to wrap up its bond-buying program in October with a final purchase of $15 billion in mortgage-backed securities (MBS) and Treasury bonds. No economic news was issued Monday following of the 4th of July holiday. Further indications of a strengthening labor market were seen. May job openings reached their highest level since June 2007, and quits and layoffs fell from April’s reading of 4.55 million to 4.50 million. Weekly jobless claims fell to 304,000 against expectations of 320,000 new jobless claims and the prior week’s reading of 315,000 new jobless claims. Fed Speeches Address Inflation, Banks Too Big to Fail Tuesday’s speech by Minneapolis Fed Bank president Narayana Kocherlakota calmed concerns over inflation; Mr. Kocherlakota said that the Fed expects inflation to remain below its target rate of two percent for several more years. He tied low inflation to the unemployment rate and said that the nation’s workforce is not fully utilized in times of low inflation, and cautioned that June’s national unemployment rate of 6.10 percent “could well overstate the degree of improvement of the U.S. labor market.” Stanley Fischer, the Fed’s new vice-chairman, spoke before the National Bureau of Economic Research last Thursday. Mr. Fischer addressed the issue of breaking up the nation’s largest banks to eliminate the government’s exposure to banks too big to fail. He said that it wasn’t clear that breaking up the largest banks would end federal bailouts of banks considered too big to fail. Mr. Fisher also said that breaking up the biggest banks would be “a complex task with an uncertain payoff.” Mr. Fischer also said that any efforts to prevent a housing bubble should focus on the supply side and cautioned that “measures aimed at reducing the demand for housing are likely to be politically sensitive.” FOMC Minutes Reveal End Date for Bond Purchases The minutes of the Fed’s last FOMC meeting indicate that the Fed plans to continue bond purchases at the rate of $10 billion per month with a final purchase of $15 billion in October. FOMC members re-asserted their oft-stated position that the Fed’s target interest rate of 0.00 to 0.25 percent will not change for a considerable time after the bond purchase program ends. Mortgage Rates Rise Average mortgage rates rose across the board last week. The average rate for a 30-year fixed rate mortgage increased by three basis points to 4.15 percent; discount points were also higher at 0.70 percent. The average rate for a 15-year fixed rate mortgage rose by two basis points to 3.24 percent with discount points higher at 0.60 percent. The average rate for a 5/1 adjustable rate mortgage rose by one basis point to 2.99 percent with discount points unchanged at 0.40 percent. What’s Ahead This week’s scheduled economic news includes retail sales and retail sales without the auto sector, Fed Chair Janet Yellen’s testimony, the Fed’s Beige Book report and the NAHB Homebuilder’s Market Index. Housing Starts, Consumer Sentiment and Leading Economic Indicators round out the week’s economic reports.
If you are nearing retirement, a reverse mortgage might be right for you. This type of mortgage essentially allows you to turn your home equity into cash. If you find yourself with little money, a reverse mortgage could be the perfect solution, and here’s why. No Worries About Monthly Payments After taking on a mortgage, there are many costs that you have to worry about. One of these problems is mortgage insurance premiums. Add interest and fees from lender service providers to the mix, and you’ve got yourself many costs. All of these fees can create tremendous headaches, as a large chunk of the loan amount goes into covering these costs. When you undertake a reverse mortgage, you don’t have to worry about any of that. The loan is paid back with home equity, not ongoing cash flow, so monthly payments aren’t a worry. Your Income Won’t Affect Your Eligibility, And The Income You’ll Get Won’t Create Problems If the reason you’re hoping to get a reverse mortgage is your low income, the last thing you want is that income to be the deciding factor. With this type of loan, it’s not an issue. That’s because the thing that determines eligibility is your house’s value. In fact, the income you’ll be getting from this loan is not taxable, which means you’ll be able to keep it in full. Plus, any benefits you get from Medicare will not be affected, and neither will your Social Security. As such, what you’ll be getting is a loan that doesn’t take into account your current income. Rather, it adds on to it, without creating any issues for you. Plus, you’ll be able to get the money in several different ways, which means you’re in control. Lastly, the money you get is fully yours. That means that you can use it for anything you want, whether that means you’ll be paying off other loans, or simply funding your day-to-day needs. You Won’t Be Taken Away From Your Home Your house is yours because it feels that way. It’s the place in which you’ve invested money and effort. It’s also the place where many loved memories were created, and where they’ll keep on being created. One of the hardest things for the elderly is being removed from their loved homes and placed into care. They have to leave the place they’ve grown to love. Worse than that, they’re thrown into a world they don’t know. With a reverse mortgage, this doesn’t need to happen. With this type of loan, you get additional income, and you get to stay in your own house. Not only that, but you’re also keeping the title to that place until you move, pass away, or reach the end of the loan’s term. Your home will stay yours, both effectively and in the documents. There are many more reasons why a reverse mortgage is a great idea. However, the fact that you’re in complete control of the income you’ll be getting is one of the most important things. If you’d like to learn more about reverse mortgages, be sure to contact our office to speak to one of our mortgage professionals.
When taking on a new mortgage, it is important to know that you can afford to carry the debt load involved, as many people find themselves in financial trouble by spending more on real estate than they can comfortably maintain. Your mortgage budget can be calculated to determine just how much you should spend on your next mortgage. Mortgage Rates And Today’s Market Conditions Mortgage rates change every day, and in times of high volatility can even fluctuate more than once in a twenty-four hour period. The market reflects a number of economic variables, including relevant world news and events. Wall Street also directly affects the real estate market. By researching and watching mortgage rates closely you will be able to secure your mortgage at the best rate possible. With so many different loan types, terms and interest can affect your monthly mortgage payment significantly. Shop around, and see which loan types will work for you. The rates available will be effected by the type of real estate you are purchasing, and your credit score. Your Total Income Your income helps give lenders an indicator of your ability to pay a mortgage. Your total income may include alimony, investment revenue, or other sources in addition to regular wages. Knowing this total and how it might change in the near future can help one get a sense of what is manageable. Mortgage Expectations And Monthly Expense Monthly expenses play a big role in your mortgage budget. Credit card debt, vehicles and other monthly commitments need to be factored in full to clearly understand your financial situation. If you are carrying a large debt load, you may want to pay your debts down before adding more debt via a mortgage. Clearing up outstanding debts will help boost your credit score and in turn your appeal to lenders. Expenditures that may be considered frivolous or redundant could be eating away at your mortgage budget. Try to cut out unnecessary spending to create some breathing room in your monthly budget. It is important to be more realistic when budgeting than one would be when goal setting, but it is always a good idea to ‘trim away the fat’. The Amount You Put Down On The Debt Another factor of affordability and eligibility will be your down payment. How much money you put as a down payment can and will affect the types of mortgage loans and interest rates accessible to you. The value of the down payment will vary depending on the type of property or investment that is being secured; higher value properties will require a larger down payment. Real estate is a great way to invest in your future. Although some can turn a profit ‘flipping’ houses, most mortgages are long-term investments. The investment grows more beneficial over time as the principal is paid down. By carefully considering your personal finances, you will be able to determine what you can and cannot afford. Researching the options available will build your confidence when choosing a loan. Contact our office for answers to any additional affordability questions you may have.
3 Benefits of a Reverse Mortgage A reverse mortgage allows you to turn your home equity into cash, and can be a perfect solution for individuals who are 62 or older. Here are 3 benefits of a reverse mortgage. #1 The Loan is Paid Back with Home Equity After taking on a mortgage, there are many costs that you have to worry about. One of these problems is mortgage insurance premiums. Add interest and fees from lender service providers to the mix, and you’ve got yourself many costs. All of these fees can create tremendous headaches, as a large chunk of the loan amount goes into covering these costs. When you undertake a reverse mortgage, you don’t have to worry about any of that. The loan is paid back with home equity, not ongoing cash flow, so monthly payments aren't a worry. #2 Income You’ll be Getting From the Loan is not Taxable If the reason you’re hoping to get a reverse mortgage is your low income, the last thing you want is that income to be the deciding factor. With this type of loan, it’s not an issue. That’s because the thing that determines eligibility is your house’s value. In fact, the income you’ll be getting from this loan is not taxable, which means you’ll be able to keep it in full. Plus, any benefits you get from Medicare will not be affected, and neither will your Social Security. As such, what you’ll be getting is a loan that doesn’t take into account your current income. Rather, it adds on to it, without creating any issues for you. Plus, you’ll be able to get the money in several different ways, which means you’re in control. Lastly, the money you get is fully yours. That means that you can use it for anything you want, whether that means you’ll be paying off other loans, or simply funding your day-to-day needs. #3 Yet Get to Stay in Your Home Your house is yours because it feels that way. It’s the place in which you’ve invested money and effort. It’s also the place where many loved memories were created, and where they’ll keep on being created. One of the hardest things for the elderly is being removed from their loved homes and placed into care. They have to leave the place they've grown to love. Worse than that, they’re thrown into a world they don’t know. With a reverse mortgage, this doesn't need to happen. With this type of loan, you get additional income, and you get to stay in your own home. Not only that, but you’re also keeping the title to that place until you move, pass away, or reach the end of the loan’s term. Your home will stay yours, both effectively and in the documents. Learn More There are many more reasons why a reverse mortgage is a great idea. However, the fact that you’re in complete control of the income you’ll be getting is one of the most important things. To learn more, contact our office when you are ready to discuss a reverse mortgage with a Loan Counselor.
Paying off Debt the Smart Way Between mortgages, car loans, credit cards, and student loans, most people are in debt. While being debt-free is a worthwhile goal, most people need to focus on managing their debt first since it's likely to be there for most of their life. Handled wisely, that debt won't be an albatross around your neck. You don't need to shell out your hard-earned money because of exorbitant interest rates or always feel like you're on the verge of bankruptcy. You can pay off debt the smart way, while at the same time saving money to pay it off even faster. Assess the Situation First, assess the depth of your debt. Write it down using pencil and paper or use a spreadsheet like Microsoft Excel. You can also use a bookkeeping program such as Quicken. Include every instance you can think of where a company has given you something in advance of payment, including your mortgage, car payment(s), credit cards, tax liens, student loans, and payments on electronics or other household items through a store. Record the day the debt began and when it will end (if possible), the interest rate you're paying, and what your payments typically are. Next, add it all up--as painful as that might be. Try not to be discouraged! Remember, you're going to break this down into manageable chunks while finding extra money to help pay it down. Identify High-Cost Debt Yes, some debts are more expensive than others. Unless you're getting payday loans (which you shouldn't be), the worst offenders are probably your credit cards. Here's how to deal with them. Don't use them. Don't cut them up, but put them in a drawer and only access them in an emergency. Identify the card with the highest interest and pay off as much as you can every month. Pay minimums on the others. When that one's paid off, work on the card with the next highest rate. Don't close existing cards or open any new ones. It won't help your credit rating, and in fact, will only hurt it. Pay on time, absolutely every time. One late payment these days can lower your FICO score. Go over your credit-card statements with a fine-tooth comb. Are you still being charged for that travel club you've never used? Look for line items you don't need. Call your credit card companies and ask them nicely if they would lower your interest rates. It does work sometimes! Save, Save, Save Do whatever you can to retire debt. Consider taking a second job and using that income only for higher payments on your financial obligations. Substitute free family activities for high-cost ones. Sell high-value items that you can live without. Do Away with Unnecessary Items to Reduce Debt Load Do you really need the 800-channel cable option or that satellite dish on your roof? You'll be surprised at what you don't miss. How about magazine subscriptions? They're not terribly expensive, but every penny counts. It's nice to have a library of books, but consider visiting the public library or half-price bookstores until your debt is under control. Never, Ever Miss a Payment Not only are you retiring debt, but you're also building a stellar credit rating. If you ever move or buy another car, you'll want to get the lowest rate possible. A blemish-free payment record will help with that. Besides, credit card companies can be quick to raise interest rates because of one late payment. A completely missed one is even more serious. Pay With Cash To avoid increasing debt load, make it a habit to pay with cash. If you don't have the cash for it, you probably don't need it. You'll feel better about what you do have if you know it's owned free and clear. Shop Wisely, and Use the Savings to Pay Down Your Debt If your family is large enough to warrant it, invest $30 or $40 and join a store like Sam's or Costco--and use it. Shop there first, then at the grocery store. Change brands if you have to and swallow your pride. If you're concerned about buying organic, rest assured that even at places like Costco you will have many options. Use coupons religiously. Calculate the money you're saving and slap it on your debt. Each of these steps, taken alone, probably doesn't seem like much, but if you adopt as many as you can, you'll watch your debt decrease every month. If you need help managing debt give us a call. We can help.