Top 3 Online Business Lenders

Looking for a business loan you can get without breaking your back? Traditional loans tend to include a long and at times complicated procedure you must endure before being approved. And even after giving all the proper documentation and waiting the required period, you’re not even guaranteed to be approved at all.  Luckily, you no longer have to go down the traditional route of walking into a bank and handing over your…

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FHA Loan vs. Conventional Loan: Which one is right for you?

Definitions FHA loan is a mortgage which is guaranteed by the Federal Housing Administration (FHA). A conventional loan refers to a traditional home loan without any government backing. For an FHA loan, the FHA agrees to pay for a large portion of the balance of a loan if a borrower defaults on the loan, this is what’s meant by the FHA insuring the loan. This insurance means the lenders can provide FHA…

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FHA Loan Vs. VA Loan – Main Differences

FHA loans and VA Loans are both home loans that are backed by a federal agency. The Federal Housing Administration (FHA) back FHA loansThe Department of Veteran Affairs (VA) back VA loans. While both loans are backed by a federal agency, neither agency actually provides the loans. Instead, they insure a large portion of the loans, paying the lenders if the borrower defaults. The insurance of the federal government helps make both…

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How to Remove PMI on an FHA Loan

To remove PMI (private mortgage insurance) on an FHA loan, one must have paid off at least 20% of the equity on their home. To pay off 20% of the equity means that the balance of the loan needs to be at most 80% of the value of the home. The value in this calculation can be based either on the value of the home at the time it was purchased or…

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How to Get an FHA Loan

An FHA loan is obtained through the Federal Housing Administration mostly by applicants who do not qualify for conventional loans under current market conditions. The minimum qualifying conditions require a 580 Fico Score and a minimum 3.5% downpayment (cash-in-hand). There are also other contingencies such as not having been bankrupt for the last 2 years, have not been foreclosed on for at least 3 years, and the housing being applied for must…

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Invoice Financing vs. Invoice Factoring

Both invoice discounting and invoice factoring are means for a business to use money owed to them to get working capital now. Table of Contents: Side by Side Comparison:Main DifferencesWhy Choose One Over the Other?What to Consider Side by Side Comparison: Invoice financing is commonly used to refer to invoice discounting, which is a loan or line of credit which uses money owed to the borrower as collateral.Invoice factoring is a means of alternative financing in…

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The Difference Between a Roth IRA and a 401(k)

What's Covered in this Article Side by Side ComparisonSimilaritiesYou Might Not Qualify for a 401(k)Employed? Here's What to Look forLimitations Side by Side Comparison An IRA (individual retirement account) is a kind of savings account that an individual can invest in for their retirement. A 401(k) is also a savings account, but one that workplaces often offer to help their employees save for retirement. Similarities The income invested and annual growth is untaxed for both investments, but both options…

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How to Get a Loan to Buy a New Business

To get a loan to buy a business, an individual must first select what business to buy. Then they must pick the type of financing which best suits their needs and means. It’s important to investigate the history of the business and get a projection of future profits and consider those numbers concerning the cost of the business. The borrower typically needs a credit score of at least 650 to qualify for a…

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Best Real Estate Crowdfunding Sites Right Now

What is Real Estate Crowdfunding? Real estate crowdfunding is a type of investing which involves taking small investments from a very large group of people to fund large-scale real estate investments. Typically, the funds are pooled into a portfolio of property investments, to stabilize the investment. Each of the investors gains a stake in the portfolio based on their portion of the investment. Stakeholders receive either interest on their investment or their…

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Types of Collateral for a Business Loan

The six (6) types of collateral for a business loan include: EquipmentReal EstateInventory FinancingReceivables (Invoice Factoring)Personal GuaranteeBusiness Lien Equipment Equipment is used as collateral most commonly for industrial or agricultural businesses. The equipment used as collateral can be equipment already owned by the borrower, equipment the borrower is borrowing money to buy or a combination of the two. Highly specialized equipment may have a lower value as collateral, because of the difficulty…

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