Mary P asked:


buying a home and its not a mortgage loan but a real estate loan whats the difference?

Paula

Gordon T Brown asked:




So you are thinking of buying a home or maybe you are interested in getting a home equity loan, well either way you are going to have to make sure that you are educated and aware on a few things, one being the difference between mortgage and equity. Only by making sure that you have a good understanding are you going to know how to make the right decisions when it comes to this sort of thing.

There is a huge difference between them that you are going to have to be aware of, and the details of which will be discussed in more detail here.

In order to see the difference between them, you need to take the time to learn more about each so that you can see where these differences lie. A mortgage is a loan that is taken out by someone in order to buy a home. When you do not have the full amount to buy the home, which is the case for most people, then you are able to apply for and get a mortgage which is a loan from the bank that allows you to buy the home.

Then you have to pay this loan back just as you would with any other type of loan, with interest accrued. There are a few different types of mortgage loans that are available to choose form and you really want to make sure that you spend the time learning more about each so that you can be sure that you are choosing the right one for you.

Now in order to see the differences you need to be aware of what home equity is. Home equity is basically the amount of value that a homeowner has in your home. The longer that you have owned your home for and the more payments you have made on your mortgage, the more you have.

This is important, because often times homeowners will want to take out a loan sometime down the road, and if they need to they can get a home equity loan which is basically them putting their house value up as collateral on the loan and if they don’t pay their home gets taken, which is risky but if you pay your bills you will not have to worry. Now you know the main difference between mortgage and home equity.

Carrie

Carrie Reeder asked:




If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment.

After bankruptcy most lenders want you to wait at least 2 years from the time of the bankruptcy discharge before they will consider you for a mortgage loan. After the two year waiting period is over, you should be able to get financing easily. You should also be able to get 100% financing as well. You can usually achieve this as long as at least most of your payments have been reported to the credit bureau as having been paid on time since the discharge of your bankruptcy.

If you are looking to get a mortgage loan after bankruptcy sooner than the 2 years from the time of discharge, you will need to have almost flawless payment history since your bankruptcy discharge. Also, you may need to have a down payment. If you have even 3-5% to use as a down payment, that may be enough to help you get approved.

There are ways to get a down payment for your mortgage besides having the money saved in the bank. Here are some ideas of ways to do that:

1. Borrow or ask for a gift from relatives. After you have financed the house, you can usually go and take out a 2nd or 3rd mortgage up to the full value of your house, and then you could repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.

2. There are down payment assistance programs like Neighborhood Gold or the Nehemiah program. These programs basically aid the seller in helping you with a down payment. Receiving a down payment from the seller of the property is illegal, but through these programs, it is legal. There are also other down payment assistance programs which are grants and do not need to be repaid or paid for by anyone. To find out about these, do a search on “down payment assistance” with your favorite search engine.

3. You could cash out a 401K or another investment and like in the first example, repay yourself with a 2nd or 3rd mortgage after the loan has closed.

Mortgage loans after bankruptcy are getting to be much easier to obtain these days. If you would like to see a list of our preferred bad credit mortgage lenders, visit this page: After
Bankruptcy Mortgage Lenders.

Neil