anyone know much about loans?

[punkorange]

Does anyone know any tricks to getting a loan with not so great credit, no real collatoral, and no signer? lol

I need $36,000 and already have $12,000.

I am also looking into purchasing a home, which will cost me $23,000 and I believe it appraises for $26,000 or $27,000. I also have a co-signer for up to $23,000 on the home, would it be reasonably possible to use the home to get another $12,000-$24,000?

I'm a fairly young pup and don't know much of anythign when it comes to this kind of stuff, so any help/advice would be greatly appreciated.

 

[Aeson]

I would love to know where you can find a house that only cost $36,000.

 

[Elephant]

It would help if you said what you want the money for. Many loans are broken up by type, so you have different options if you're looking for money for college vs. money for a new car vs. money to buy a home.

 

[Crothian]

You just need to gather up all your info and see if you can hunt for the loan. You might get it but the variables won't favor you. Best of luck though.

 

[Henry]

I would love to know where you can find a house that only cost $23,000.

You live near Atlanta; mystery solved. (I've seen the house market in Marietta, and the Atlanta suburbs ain't cheap).

Some rural areas have 1,000 sq. ft. houses like 2 bed one bath or 3 bed 1 bath for "dirt cheap" relatively speaking.

 

[Aeson]

You live near Atlanta; mystery solved. (I've seen the house market in Marietta, and the Atlanta suburbs ain't cheap).

Some rural areas have 1,000 sq. ft. houses like 2 bed one bath or 3 bed 1 bath for "dirt cheap" relatively speaking.

Most new houses going up around me are $500,000+. Even in some of the more rural parts of the state we have these houses being built. Very soon we will have no rural area.

I noticed an error in my last post. The house is 36,000 not 23,000. Still extremely cheap. I'll take a dozen.

 

[punkorange]

it's a small little house, 2 bedroom, 1 bath. Built in like the 40's. A good size lawn, in a nice quiet neighborhood. I am thinking $23,000 is a good price.

The money is to start a store, but I would prefer just a personal loan over a small business loan if possible.

I was just kind of curios as to how borrowing against your house worked, say if I had a $40,000 home and I only owed $30,000 on it...

 

[Henry]

You just need to gather up all your info and see if you can hunt for the loan. You might get it but the variables won't favor you. Best of luck though.

I'm definitely no loan expert, but I can show you some hard-earned battle scars and tell some stories. When looking for loans, watch out for:

--how much any initial payments will be
--interest rate (currently, 7 to 8 percent in the U.S. is a decent rate, over 10% is WAY too much).
--how much the final payment is supposed to be (some companies will offer low payments, and then hose you on the end "balloon" payment.)
--BE SURE TO KEEP YOUR MONTHLY PAYMENTS ON-TIME. Even more so than utilities, a mortgage payment is the most dangerous payment in the world to let fall behind.

Like anything else, ask older folks you know well, and ask them who their mortgage was with, if they have one currently, and if they got good service from them.

For my take, Both Bank of America and First Citizens have good service departments, but Wachovia not so much. I've also known a couple of people who absolutely adore Chase Bank & Trust.

Shop around; get two or three. You may be young and just starting out, but many mortgage companies and banks are willing to work with young first-time buyers more than someone with an established, but shoddy, credit history. Credit Rating doesn't tell the whole story.

Good Luck.

 

[Henry]

it's a small little house, 2 bedroom, 1 bath. Built in like the 40's. A good size lawn, in a nice quiet neighborhood. I am thinking $23,000 is a good price.

I was just kind of curios as to how borrowing against your house worked, say if I had a $40,000 home and I only owed $30,000 on it...

Word of warning: Have someone you trust go over that house with a fine-toothed comb (this is assuming you're not a licensed contractor or something). My wife and I bought our house, and love it still, even though it's getting a bit small for us - but we had to sink in about TEN THOUSAND dollars, a bit at the time, to fix damage from a shoddy water heater and a leak we never knew about until it was too late. Old houses can be great, but they can hide hideous problems, too.

 

[Infiniti2000]

You general can't borrow more than 90% of the equity in a house, particularly for someone with little history (even good history, little is not that good). This type of loan is obviously called a home equity loan, but you might consider getting an equity line of credit instead since you won't have the huge overhead of a loan (which might offset the possibly higher interest if you pay it off quickly). No bank/credit union will give you an ambiguous personal loan. You'll have to specify the reason and therefore pigeon-hole you into the correct department -- i.e. automobile, small business, big business, second mortgage, etc. You will, undoubedtly, have to do a small business loan. Check with the county offices, though, as the Small Business Association will be very helpful (in most cases in my experience). If you are also a minority (any non-male caucasian), you can get a lot of help that way, too.

In summary, if you use the $12K to buy the house, you'll immediately have $15-16K in equity (minus overhead for the loan). You can use some of that (maybe 90%) for an equity line of credit for your business, which will be much more useful than the loan in the long run IMO. If this amount is not enough, I would then get a small business/minority business loan to cover the additional numbers. Make sure you estimate high. It's much better to have more money than not enough -- because not enough can quickly run you out of business.

Good luck on the business -- you're gonna need it given the percentages of small business that fail within the first few years.