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finance

4 Ways To Protect Your Finances During A Separation

Strategic Financial Solutions

Divorce and separations leave deep emotional and financial holes to the affected people. Under normal circumstances, you would get always advised to try and fight for your marriage and avoid separations as much as possible. Apart from the emotional hurting from the heartbreak, there is the aspect of going through the courts with the help of attorneys. You would not want to process your way throughout of a disturbed marriage only to end up broke and completely bankrupt. There are a few simple ways that one could follow to keep their finances safe during this hard time.

1. Make Sure All Your Cash Is Secure

As trouble starts to show in the relationship and you feel that it might lead into a separation, you would want to secure your accounts to make sure in case the separation goes through; you would remain with some cash on your end. Cancel credit cards to your accounts that your partner could have access, for joint accounts, you might talk to your bank to advise on the same. This is because you would need some cash to settle in case you needed to move out for rent, electricity bills, telephone and even the internet. Redirect all your income for a few months to your separate accounts to be sure of your financial stability.

2. Discuss How To Deal With The Fixed Costs

Most households share the burden of fixed costs for their homes by some ratio depending on their agreement or income. Some of these include mortgage, electricity, water and internet bills. After the separation, your partner might refuse to pay their instalments hence leading to defaulting. The problem is that these defaults would end up affecting both parties with their credit worth for the future you might decide to get some financial support from companies like Strategic Financial Solutions during this hard time as you plan further. Make a point of discussing these costs with the help of lawyers and agree on their repayments.

3. Rethink All Expenses On The Children

These include school fees, daycare fees and all activities involving your children. These expenses might also get so high depending on the terms of separation you might have agreed upon. Both parties need to discuss these expenses in the presence of lawyers to make sure one side isn’t pressed too hard. Notify the school and all relevant institutions about the separation so that they would also know how to deal with the payments as they would be dealing with two different parties as compared to previous times.

4. Rethink Your Incomes And Expenses

As a measure to cab you from running bankrupt after the separation, accept the new situation and try increase on your earnings and avoid too much spending. You need to seek financial advice so you can learn if you would be okay comparing your earnings with your expenditures. At times, you might need to get extra jobs or work extra hours if your partner used to cater for more of the expense when you were married. This might get you a little more worn out compared to your previous schedule but soon or later; you would get used to the situation.

As much as your counselors might try and save your marriage; sometimes it might get past their capability to save and hence advise you to both move on with your lives. You might also be working towards saving your marriage, but your partner, on the other hand, has already started the divorce process. In this case, do not also hesitate, so it doesn’t hit you by surprise when least expected. You should immediately start preparing emotionally and financially for separation and maybe a divorce.

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finance

Hornet Partners Explain The Difference Between Good Debt and Bad Debt

Hornet Partners
Hornet Partners

When it comes to debt, there are a number of misconceptions. Some people believe that all debt is bad. In fact, there is good debt and bad debt. It is important to know the difference since most people will want to utilize good debt while eliminating bad debt. Expert debt consolidators like Hornet Partners have been helping people organize and service all types of debt for years. Below this article will show the difference between good debt and bad. 

What is Good Debt?

Good debt is simply debt that one can manage and pay back in a timely manner. This debt is also used to finance something that will increase the wealth, income or future earnings of the debtor. Below are some common examples of good debt that one can utilize. 

1. Home Mortgages

Since the majority of people cannot buy a home for cash, a home mortgage is an excellent way to get into a home with limited available funds. Most mortgage loans are approved according to strict lending standards. Since home values usually appreciate, this is an example of good debt.

2. Auto Loans 

Most people will need an automobile in order to commute to work and get around town quickly. A properly financed auto loan will be easily manageable by the borrower. While most automobiles do depreciate, this type of purchase provides incredible time-saving value to the user as well as providing access to increased opportunity, and thus qualifies as good debt.

3. Students Loans 

Education is one of the most valuable investments one can make. A student loan will allow the borrower to greatly increase their future earnings. Therefore, a student loan will qualify as good debt.

4. Business Loans

Those who start a business will want to take out a loan in order to buy inventory or expand operations. Since businesses have cash flow, the loan can usually be easily serviced. Business loans can apply to companies that have millions of dollars in assets or a self-employed individual who needs some cash to buy computer equipment. In many cases, a business loan will qualify as good debt. 

While good debt is usually serviceable, it may be a good idea to consolidate these good debts into one manageable payment plan. This will allow easier management and payment of the debt. Hornet Partners has helped a number of clients manage and service their good debt. 

What is Bad Debt?

Bad debt usually consists of loans that are difficult to pay back. These usually come in the form of loans with high-interest rates or debts that are riddled with payment penalties or other unfavorable terms. Bad debt can also apply to purchases of quickly depreciating assets. Below are some common examples of bad debt.

1. Credit Cards

Most credit card companies lure in new customers with low introductory interest rates. However, these interest rates can expand over 23% a year. Since this interest rate far exceeds the return on most investments and is difficult to service, this is bad debt.

2. Payday Loans

Many people in a financial crunch will go to a payday loan office to seek some quick cash. These payday loans have some of the most punitive interest rate terms available. Therefore, this is considered bad debt. In many cases, people who take out payday loans have trouble servicing this loan and end up in an even worse financial situation.

3. Unsecured Personal Loans 

Those seeking money for an undefined personal use will take out unsecured personal loans. Since there is no specific reason cited for the loan, financial institutions consider these loans riskier and charge a higher interest rate. This is bad debt that can be difficult to service. 

Since bad debt can cause financial hardship, it is important that these debts be repaid as quickly as possible. Hornet Partners are experts at consolidating bad debt to help their clients avoid further financial pain and potential default. By consolidating all bad debts into one payment plan, one can better service the debt. 

Properly Managing All Types of Debt

Good debt and bad debt both need to be serviced in a timely manner to protect the credit rating and the reputation of the debtor. One of the best ways to service all debts is through consolidation. By organizing all debts into one payment plan, a debtor can manage their payments while lowering their overall interest rate payments.

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finance

Lance Advisors Explains When to Consider Consolidating Your Debt

Lance Advisors
Lance Advisors

Debt consolidation means that you are taking all your debts and turning them into one larger loan. Instead of having to deal with multiple lenders, you will be left with one to deal with, and total interest will be lower. Some of the advantages consolidating loans include having fewer lenders to deal with and lower monthly interest rates. However, do you know when it is the right time to consolidate all those loans? You should not consolidate just because you have the chance. Before consolidating, look at your situation and determine whether it is the right time to merge loans or whether you should stick to the current situation. If you read some of the information published by Lance Advisors, you will notice that the following situations are likely scenarios when debt consolidation would be beneficial.

When you want to make changes to your spending habits

Spending habits often determine how much debt you accrue. When you are frequently overspending and seeking an additional loan, you will end up accumulating too much debt. You will have loans from the unlikeliest lenders, and this will affect your credit report. When you visit a financial counselor, they will suggest that you make changes to your spending habits, and these changes may include consolidating previous loans. The aim is to make sure that you have your debt in one place where you will manage it better, and that you embark on the process of correcting your credit rating by controlling the way you shop for things.

When you want to pay off your debts in a shorter duration

Consolidating a loan may be a result of your resolve to pay it off faster. Different lenders will have different terms associated with their loans. For instance, you will come across those who require you to pay in several years while others may only allow you a few months. This means that the time it will take you to pay all the debts will vary, and so, it will not be a comfortable experience. Financial experts often ask people to consolidate their loans so that they can pay faster and more efficiently. You may notice that depending on your collateral and credit score, the new lender allows you to pay in one year. However, there are those that will require you to clear everything in up to three years depending on the terms and conditions attached to their financial products.

When you want to put your debts behind you

There is no more natural way to get out of debt than by consolidating all your loans. Lance Advisors suggest that if you are always attending to every loan individually, it will be a hectic experience. People who want to put their debts behind them often find it easy to create a payment schedule when they move them to one place. Therefore, no matter how much you owe to lenders, you may want to consider getting a single loan to repay other loans in their entirety and create a monthly payment schedule that will see you put the debts behind you faster. You will notice that when you do this, the new lender will help you in creating a repayment plan based on your income and monthly bills.

When you have decided to save money on interest

Are you looking for lower interest rates? The best way to pay less interest on your loans is to choose a company that will help you to consolidate them. There is an almost immediate effect that this move will have on your credit score. For example, it may mark some of the debts on your credit as paid even though you just moved them to a different company. What this means is that your credit score will improve and therefore, you have a chance to negotiate better interest rates on your new loan. The companies will also offer you better rates when you commit to paying your loans every month until the day they are fully settled.

You no longer want to deal with multiple bills every month

Imagine if you have dozens of lenders all looking for you at the end of every month. This situation translates into too many monthly bills. Sometimes, you may not have the time to deal with all the companies, and therefore, it makes a lot of sense when you consolidate the loans. With the new arrangement, you know that there is only one company that you will be contacting, and it gives you a lot of peace of mind.

As you can see, many situations can make you consolidate your loans. To have an easier time with the process, Lance Advisors recommends that you should start by understanding your finances and choose a consolidation plan. After that, go through the consolidation application process, and be sure to select the right company so that no additional problems arise.

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finance

Gladiator Lending on What Lenders Look for When Setting Terms

Gladiator Lending
Gladiator Lending

Many individuals and businesses are able to survive based on the presence of bank and lender loans. Lender loans provide money to help businesses make payroll, expand their operations, or hire more staff. Loans also help individuals make additions to their house or pay basic expenses. When looking for a loan, individuals want to find the best terms possible. They have to present their best case in order to earn terms that will actually work for their business or individual financial needs. 


Feasibility

Lenders are looking for individuals who have a plan to make the money required to pay back their loan. This feasibility is the most important factor when determining a loan decision and the terms behind that decision. Loan officers make their money by lending out certain amounts of money and having borrowers pay that money back with interest. The terms and interest rates offered are related to the chances that an individual will pay their money back and the related chances that they will default on their loan.

As a result, lenders like Gladiator Lending often ask a series of financial questions related to individuals’ income and job status. Individuals must have a clear plan in place to pay off either the personal or business loan. They should detail their expenses and income. Any potential bonuses or raises should be mentioned to a loan officer. A borrower has to be prepared for a lender who may have questions or concerns about a person’s job and payment status. A bank will not make a loan to an individual if they are convinced that the individual will not have the money to pay that loan off. 

In order to show feasibility, an individual must construct a narrative where they are a competent individual who will most certainly be able to make all of their loan payments on time. They should research any potential pitfalls or holes in their argument. An individual working for a business should be prepared for any criticism towards their business field that they may receive. Individuals should have backup plans for if they lose their jobs. A few hours of research and preparation can mean thousands of dollars saved or lost in interest payments over a period of years. 


Experience

Experience is helpful for determining loan terms and for acquiring the best loan possible. Gladiator Lending and other large and small lenders certainly want to find individuals who are experienced at paying off their bills. A high income relative to a loan may not matter if a person has shown in recent years that they were delinquent or generally unable to meet their previous debt obligations. The most familiar way for an individual to show their experience with managing payments and lending is through their credit score. Credit scores are compilations of how an individual treats and uses their credit. It is a record of the debts and debt payments that individuals have taken over an extended period of time. 


Confidence

The personal meeting with a loan officer can be enormously effective at helping to set favorable terms. Smaller lenders like Gladiator Lending often want to make some sort of a connection, either virtually or in person, with the individuals they are lending to. Many individuals receive a set list of advice when looking to set terms and ask for a loan. They are told to sit up straight, dress well, and always be respectful. This process may seem redundant or unnecessary to most individuals who are confident in their plan to pay back their loan. It is not part of a credit score and does not appear on any sort of balance sheet.

But these concepts are vital because of the role of trust in the acquiring of a loan from the vast majority of small and large lenders. Trust is critical because of the information that an individual is sharing with their lenders. Lenders cannot always verify all of the information that an individual is telling them. They have to trust beyond the financial information and credit scores that they often require individuals to provide. 

For instance, an individual may be able to explain that a negative entry on their credit report was caused by an illness that was not reported anywhere else. The lending institution has to trust an individual’s word if they decide to mitigate the effects of that negative credit report mark when making a loan. An individual who dresses well, arrives prepared, and takes the process seriously has a much better time receiving trust and the benefit of the doubt than individuals who do not. 


The lender’s own finances

Additional factors outside of a borrower’s control influence loan terms. Loan terms may be influenced by the overall economic health in a particular area. Economic trends can determine how long a loan is extended for and the interest rates an individual may have to pay. The lender also has to consider its financial situation. A lender that has been successful in one particular area may want to continue making loans work in that area.

Lenders who have suffered significant recent foreclosures may not be willing to accept marginal cases or low loan terms. Individuals do not always know about these factors. However, they should certainly read news reports and publicly available information before picking a particular lender and setting an appointment to discuss a loan. News reports may help an individual find out what lenders are facing stressful situations or economic hardships. Such information can help an individual time their meeting as carefully as possible to ensure the best potential loan rates. 


Conclusion

People are understandably concerned about the lending process. They are stressed about their case and worry about how their terms will fit their company’s bottom line. Part of each decision is influenced by forces outside of the borrower’s control. For the rest of the lending process, individuals simply need to be as thorough and careful as possible. They have to make the best case that they can to their lender and articulate their business/payment plan clearly and forcefully.

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finance

The Top 5 Universities Accounting Majors Should Consider in 2019

Robert Tweed

Accounting is one of those career fields where you need to have continued education. The accounting field is always bringing out new information. You need to stay informed. What better way than to keep educating yourself that way you can assist your clients in the best possible way.

Colorado State University

One of the more top-of-the-line courses you will find. You have the chance to finish the credits you have already or you can complete your Master’s degree here. The course load has more than 100 college credits. These college credits represent 18 different field selections. That way you can earn the proper accreditation regardless of which spectrum of account you decide to go into.

Penn State University

A top-of-the-line college. Penn State’s reputation is everything you have been hearing about and more. Did you know that their online Bachelor of Science is one of the few accredited courses through World Class and the AACSB? That is an exceptional honor that only the top 5% of business schools across America receive. Penn State has also been given the seal of approval from Robert Tweed along with many others. Penn State is one of the better schools you can hope to attend. You can transfer your credits from another school to Penn State. You just need to check the requirements.

Washington State University

Washington State has a lot of options when it comes to continuing education with accounting. You can study everything from tax laws to audits. You can continue your preferred major in the field of accounting and supplement with some minor courses to round your skills out.

The one downside to attending Washington State University is that you need to take business classes prior to coming. In fact, your major has to be in business with a focus in the accounting field. Washington State University is going to take your education and advance it to an upper-level course load. In other words, your continued education is going to be far more advanced than you had anywhere else but is going to prepare you for the financial and business world.

Old Dominion University

The fourth one to talk about. Did you know that Factual College and College Choice named this university of the best in online education for accounting and business majors? You can receive any degree including your Ph.D. with Old Dominion. You can combine current degree major with other minors or majors to round out your studies.

Flordia Tech

The bachelor’s program will prepare you for any direction you want to go in the accounting field, including taxation, financial and business management, and audits. It is accredited. You can apply it to go for your CPA(Certified Public Accountant) or CMA( Certified Management Accountant).

Every student begins the same way, setting a foundation for whatever direction you want to go in the future.

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finance

Mistakes That Make Divorce Even More Expensive

There’s a reason it’s important to hire an experienced lawyer to handle your divorce. Separating from your spouse isn’t just about dissolving the legal partnership. It also concerns separating your finances to ensure your assets and credit profiles are no longer linked. There are many mistakes you can make in this regard that could have long-lasting effects on you.

 


Forgetting About Assets


The divorce settlement is based upon the total assets produced from the marriage, but it’s possible to overlook some of these items. The court can only account for the assets you and your spouse provide, so, if something isn’t included, it could affect the final settlement. For instance, if your spouse owns an acre of land that he or she bought during your marriage and it isn’t included as an asset, you may forfeit any profits associated with the sale or rental of that land. 


Forgetting About Taxes


It’s important to go over any settlement with your Tampa divorce attorney before you sign off on it. Aside from making sure it’s a fair settlement, remember that you’ll be responsible for paying taxes. Even where splitting a retirement account is concerned, handling the division improperly can result in having to pay hefty income taxes upfront. You should similarly expect to pay taxes on any stocks, real estate, and other investments transferred into your name. 


Hanging onto Your Home


One of the biggest disputes between couples is determining who will get to keep the home they bought together. While there may be practical and emotional reasons for wanting to keep the home, it can sometimes be better to let it go. When you bought the home, you probably determined that you could afford the mortgage, insurance, taxes, and upkeep with two incomes. Those burdens become more troublesome, when you’re reduced to a single income. In most cases, it’s a better strategy to sell the home and split the profit. 


Going to Court Out of Spite


A divorce trial is more expensive than people realize. From the standard court fees and attorney fees to requiring testimony from experts and mounting investigations into financial records, those costs quickly add up. Many of those costs can be eliminated if you and your spouse can settle your issues in mediation. While you each may still need to have a Tampa divorce attorney present, even those attorney fees will be much lower. This is an opportunity for you and your spouse to divide your assets and settle child custody issues on your own terms. This can save you both a considerable amount of money and help you develop a new platonic relationship. 


Inaccurately Representing Expenses


If there’s an issue of spousal or child support, it may be especially important to report your total expenses to the court. In determining support, family court judges look at the income and expenses for each spouse to determine if support should be paid and how much support should be given. If you fail to include all of your expenses or underestimate variable expenses, you may not be granted sufficient support. To get a more accurate estimate, you should look at each expense for the past year and determine the average monthly cost for that expense. 


Divorce is a complex matter that largely deals with separating the couple’s finances. Even a small error can have a big impact on your future, so it’s important to provide your attorney with meticulous records. This will help ensure all of your financial needs are met and you and your spouse arrive at a fairer settlement. Even when there are no minor children involved in the marriage, taking these steps will help you come out of the marriage on solid footing.

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finance

Investors are Made, Not Born

Investing

How to Learn to Be a Successful Investor

Investors are made, not born. Becoming a good investor comes with experience and training. It is knowing when to trade, when to buy, and when you’ve spent enough time in one place. Some people are born with these talents to some extent; we must learn the rest through years of practice. There are several characteristics of a good investor. Nate Armstrong of Home Invest knows a few strategies that can help an investor become great.

Good Learners and Strategists

When you think of an investor, first consider all the time they have spent in learning the relevant system. They are the type of people who learn things fast and efficiently. They are constantly looking for better ways of maneuvering and handling situations. They will attend meetings and conferences or seminars to learn all they can about new systems and developments. Successful investors also have a strategy in place at all times. This can be a regular day to day strategy or an exit strategy. They know there are two different sides to every type of investment. Preparation for either outcome is the key to success. Prepare for the worst scenario as well as the best.

Patience and Control

Another thing that successful investors have is control of their emotions. They do not let their emotions lead them. Greed can be seen throughout the industry today. It is important that an investor never feel greed nor the fear of failure. This can lead them to make mistakes and failures that will be hard to overcome. They also need a lot of patience. They must know when to hold out on investments and calculate. Being able to hold out will benefit them in the end.

Focus, Persistence, and Discipline

Good investors are cautious not to jump into anything at a fast pace. They should take it one step at a time and one investment at a time. They also tend to focus on one thing such as commodities. They focus on dealing with what they know best, which will bring them more money and success in the end. They are also sticklers for following their strategies and persistent in not straying from them. If the strategy has been successful, then stick to it. When switching strategies, investors tend to lose sight of the big picture and don’t do as well. This is where the discipline to stick to what they know comes in. It will keep them on the right track.

Using Leverage and Taking Risks

Using leverage means investing with money that belongs to someone else. This is what makes a great investor different from an average one. An ordinary investor is someone who uses their own money to invest here and there. A successful one uses someone else’s money to invest and make a profit. This is also important to remember when considering risks. Successful investors aren’t afraid to take risks after consideration and calculating the risk.

Learn as They Go

Investors learn from mistakes made in the past. Every investor starts off learning. The way you take these lessons and apply them will determine whether you will be a good investor or a great one. They don’t get discouraged when they make a mistake.  Rather, they see mistakes as a way to improve. They also rely on a stable financial background of their own to help them with investing. It is a learning aspect and each day brings something new to the table. They also enjoy what they do.

Nate Armstrong at Home Invest is a man that is growing in the industry. He loves to talk real estate and investing, and with each passing day he has more to share with his investors and the public.

 

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finance

The Best Ways to Finance Your New iPhone

Sean Seshadri
Many may be baffled to find out the different ways that iPhone owners purchase their phones. Some are not paying the high price, or they are getting help to pay the hefty price. As of right now, there are two new iPhones on the market: The iPhone XS ($999) and XS Max($1450). Many have a savings account or bank cd that they can dip into in order to finance their new iPhone, but what about those that want to get their hands on the smartphone and aren’t financially equipped to pay full price? Fortunately, this article will cover the best ways to finance your new iPhone. If you aren’t sure how financing through a third-party company works, read this interview with Sean Seshadri to get a better understanding. Sean Seshadri is a financial expert offering up great advice, even for new iPhone users.
Sean Seshadri

Apple Financing

Yes, Apple does financing. You are able to apply a loan to the product of your choice, this case an iPhone and pay it off within 12 months. There is also $0 interest if approved. Be careful to not try and pay it off earlier because interest and other fees can pile up. Try to do Apple financing with Barclays.

Personal Loans

A personal loan is for the times where you need to pay out for a rather large expense such as a car, education, home repairs if not covered by insurance, etc. Personal loans can range from $1,000 up to $50,000. You can get the phone, a computer, a new car, accessories, start a business. Just make sure to read the fine print, understand your credit score, and ensure that you can make monthly payments. See some of the best personal loans of 2018 here. Some of the companies will approve you within a few minutes and some can a few business days.

Finance through your carrier

If the financing route did not work with Apple or the personal loan, try your current mobile carrier. You are able to get financing through Verizon, AT&T, Sprint, and T-Mobile, and your new phone loan will be added to your monthly bill. Read the fine print here too, but most carrier’s that offer financing will allow 24-month interest-free, but you may still have to make a one-time payment at the time of purchase.

Go with a new carrier

Some phone owners are committed to their carriers no matter what and switching can cause unnecessary problems and headaches. Major mobile carriers have an on-going deal for new phones. “Switch today and get two for one, or half off.“ Most will sweeten the deal with a trade-in offer or will have you sign a contract for a couple or so years. For instance, T-Mobile has a $0 down offer for approved customers with $300 of your new iPhone. Verizon is offering deals not only the new clients but current clients as well. They are offering a $100 minimum trade-in and the to save up to $700 off your bill if you purchase a second iPhone.

iPhone trade-up program

Do you already have $899 or $1350 ready to go, but need a few extra bucks for the purchase? Do you already own an iPhone or another smartphone? Apple has a trade-up program where your trade in your old device and can receive up to $525. The good thing about this program is it does not only apply to Apple, but other carriers have a similar offer. Of course, the trade will depend on the model and the condition of the phone. Newer models give a higher trade value, but it’s worth a shot for smartphones that you or a friend are no longer using.

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finance

5 Types Of Home Loans For Bad Credit

Associates Home Loan

The market for subprime mortgages has shrunk drastically since the 2008 financial crisis. As a result, people with bad credit have found it more difficult to qualify for a mortgage, whether for a home purchase or refinancing. Though the market has changed, many great options still exist for those with lower FICO scores. These five loan types remain widely available.

Hard Money Loans

These loans are based on the equity in a property. As a result, they don’t require a high FICO score. Lenders feel the property value sufficiently secures their interests.

Hard money loans are written based on loan-to-value ratios of 65 percent or less. This means you need substantial equity or a large down payment to qualify. They also close very quickly. This makes them ideal for distressed properties. Hard money mortgages are one of the few loans that can be written while foreclosure and bankruptcy cases are active.

Federal Housing Administration (FHA) Loans

With a minimum credit score of 580, qualification for FHA loans is a good bet when your credit score has sunk. Credit scores are negatively impacted by high revolving debt, bad payment history, and life events like bankruptcy or foreclosure. Though some time may need to pass after a life event, you can qualify for an FHA loan despite any of these credit challenges.

Down-payment requirements of 3 percent make these loans obtainable for average folks. Individual lenders provide FHA loans based on federal program guidelines. Each lender has slightly different credit requirements, so you may need to shop around. For more information on the FHA loan program, visit HUD.gov.

Veterans Administration (VA) Loans

VA loans are designed to promote homeownership loans for veterans. Qualification requirements are remarkably similar to FHA loans. As with FHA loans, VA loans are issued by private lenders based on program requirements, so if you are a veteran, consider shopping around with several VA lenders.

One tremendous benefit of VA loans is the no down payment option. This makes it possible to become a homeowner if saving for a down payment is impossible. In a day and age where the majority of Americans live paycheck to paycheck, this benefit is one of the most important.

United States Department of Agriculture (USDA) Loans

USDA loans are often overlooked because people assume they only apply to rural farms. Though USDA loans are great for purchasing a farm or ranch, they can also be used to purchase a home in town. To qualify, the property must be in a small town or city (population less than 20,000). If you like the country or small towns, USDA loans provide bad credit mortgages. One of the best parts, a 0 percent down-payment option is available.

Credit Union Loans

As explained on BankRate, many credit unions offer bad credit mortgage loans. Some credit unions have requirements similar to FHA loans. Others offer low or no down payment loans. Still, others provide loans regardless of FICO score. The caveat is that not everybody is eligible for every credit union. Your credit union may or may not offer bad credit mortgages.

Despite the decline in subprime mortgages, there are still options available. Some lenders are providing loans with low FICO scores. Generally, lower FICO scores require that the borrower has either equity, a large down payment, or a low debt-to-income ratio unless based on one of the above programs. If you are in the market for a subprime home loan, reducing your overall debt load always helps. Cash also remains king. If you have enough cash or equity, a poor credit score can be overcome. When obtaining a loan is an emergency, you can qualify for a rapid hard money mortgage.

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finance

4 Ways To Make Big Investments On A Small Budget

sean-seshadri

Many people count themselves out when they think about investments as they look at their paychecks. According to a recent study, the number of Americans who invest in the stock market has declined since the 2008 economic crash. Although the numbers are steadily increasing, there are still a lot of skeptics who would prefer to keep their money or spend it on their expenses.

There are many advantages when it comes to investing early on in life. Trading and Investment Strategist Sean Seshadri explains to us the benefits of having multiple streams of investments:

  • Opportunities for passive income – the top wealthiest people, do not depend on trading their time for money. Through several wise investments, they were able to create a source of passive income, which means that their investments work for them and develop dividends in the long run.
  • A lifestyle of freedom – who doesn’t want to be free from fiscal responsibilities? A lot of individuals are stressed out about many things, money included. Making investments can help you be financially free, which allows you to do the things you want.
  • Accumulating money for retirement – as time passes by, you may frequently think about your retirement and how you will be able to function without having to work. Creating investments at an early age can help you feel secure about your retirement plans.

Considering the benefits of being financially secure through investments, what are some ways to grow your wealth even with limited income?

4 Ways To Make Big Investments On A Small Budget

Consider real estate crowdfunding.

Perhaps you don’t have enough budget to have your single real estate property. No worries! There is a mounting option for investors to have crowdfunding regarding real estate property. This is similar to buying a fraction of “shares” towards a potential growth of a real estate property. As the real estate property earns profits, you will also be given dividends depending on your amount of shares.

Consider opportunities for compounded interest.

Compounded interest is defined as an interest that accumulates and grows over time. For example, you may have started placing $100 in an investment. You may start by only having 2% interest annually, which means you get $102 by the end of the year. However, through compound interest, you will acquire 2% of the $102 on the following year as the pattern of exponential growth continues further. A lot of bank accounts and some bonds offer compounded interest over time. This can be a considerable amount especially if the money remains in your account over a long span of time.

Try out exchange-traded funds (ETFs).

According to Sean Seshadri, ETFs are a great way to invest your money as an alternative to index mutual funds. You can avail a brokerage account and use it to buy ETFs. As a general rule, ETFs don’t require you to pay a commissioner’s fee, and they have a lower barrier of entry compared to mutual funds. You can inquire in your bank or a trusted investment company for ETF offers.

Experiment on peer to peer lending.

All around the world, there are people finding ways to borrow money to fund their businesses. These people are willing to borrow as soon as possible, even with potential interest. This system you can invest your money is called peer-to-peer lending, and you can easily set up an account on websites such as Lending Club. As borrowers return your money, you can gradually gain interest while you reinvest your profits for future borrowers.

As you consider these strategies, it is good to know that you don’t have to be stuck with the ideology that you have to earn more to make more. Small budgets can turn into significant investments with the proper guidance and right strategies.