Is a 100% Home Loan Impossible?

There are one or two banks or lenders that give prospective home buyers 100% home loans, but there are specific requirements.

This type of home loan is only available for a purchase price of up to R300 000 and a joint or single monthly income of R15,000.

So what about the rest of you that do not fall into that category?
Well, unfortunately the maximum you would get is between 85% - 95% of the purchase price and you would have to give the rest as a deposit, plus cover the legal fees.
This could end up being quite a large amount, therefore we have a suggestion.
If you are currently renting, work out or get a qualified mortgage originator to work out how much you qualify for and what the approximate monthly installment would be.

What you should do then is to take the difference in what you would be spending on a home loan and your current rent and save that on a monthly basis for about 6 months.
Well, if you do that you will see if you would be able to comfortably afford a home loan installment and not get a shock if you suddenly just buy and your installment is much larger.

After 6 months you could then use what you have saved up and put that towards your deposit. Depending on the amount you want to buy for, this may actually be enough to cover your deposit and some of your legal fees.

By Zulika Van Heerden

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Applying for Your First Home Mortgage? What You Need to Know

The following home mortgage tips will help you figure out how to best go about the home mortgage loan process for your situation.

Home Mortgage tip #1 Interest Rates

Before applying for your first home mortgage loan you will want to shop around and see what average home mortgage loan rates are. Shopping for home mortgage rates online is a timesaver and frequently have lower rates as well. Your home mortgage rate will affect how much money you have to pay back over the term of the loan, so the lower the better.

Home Mortgage Tip #2 Fixed or Variable Interest Rate

When it comes to your home mortgage loan there are more options than just a loan you pay back over a set amount of years. You can choose different home mortgage interest rates that work best for your current and future situations. So, before you apply for a home mortgage loan do some research on variable and fixed interest rates to find what will work best for you.

Home Mortgage Tip #3 Down Payment

When applying for a home mortgage loan for the first time you might not be aware of the general down payment you will be required to make. Many times a home mortgage loan requires between 10 and 20% of the price of the home, but if you have good credit sometimes you can make a lower down payment and still get a good deal on your home mortgage. This depends on the home mortgage lender, so shop around.

By Jay Moncliff

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Commercial Mortgages - Finding the Right Commercial Mortgage Lender

If you are considering the purchase or refinance of a commercial property, securing the best possible financing is an integral part of your long-term success. Getting your commercial mortgage isn't rocket science; it's a matter of strategy and execution.

However, before you can prepare your loan proposal for success, you must understand the commercial mortgage process and how to find a lender. This article will discuss a variety of strategies that can give you insight about the commercial mortgage market and help you land the best lender and loan for your unique situation.

Understanding the Commercial Mortgage Lending Climate

Many business owners and real estate investors have realized the extraordinary profit potential of owning commercial real estate. When I refer to commercial real estate, I'm talking about any property that is owned for investment purposes. These are properties that generate a cash flow for the owner. Or in the case of owner-occupied property, these are properties where the owner runs a business.

Many business owners prefer to build equity in an owner-occupied property rather than continuing to pay an ever-increasing monthly rent to their "smart" landlord. These savvy property owners enjoy the relative safety and predictability of owning commercial real estate; they like the positive cash flow, tax benefits and appreciation their investment delivers.

Keep in mind that financial institutions are in the business of turning companies and individuals into property owners. They're eager to lend money to responsible borrowers. And even today, while mortgage success is more challenging than it has been in decades, funding is still abundantly available for qualified investors and projects.

If your transaction makes sense, there are many lenders who will work creatively with you to get it funded. Never forget that lenders WANT to make loans. And as a qualified borrower with a sound loan requirement, you have more leverage than you might imagine.

Target Your Lender

There are literally hundreds of lenders active in the commercial real estate marketplace. Each of these lenders has different criteria for the transactions that will interest them. Matching your specific transaction to the most appropriate lender is an important first step to getting your transaction funded.

When choosing a lender, make sure you're working with an institution that is willing and able to make the loan you need. If you're working on your own, you might start out by phoning your local bank and asking to speak with a commercial mortgage officer. Explain to them the specifics of your loan transaction and ask if the transaction meets their lending profile.

Key questions you might ask include:

- Do you finance my type of property?
- Is my transaction and appropriate size for your institution?
- What types of loan programs are available?
- How quickly can you close a loan?
- How does your due diligence process work?

If you have specific loan requirements, make them known at the start. For instance, some borrowers are not able or willing to provide tax returns. These borrowers require what is known as a stated-income commercial loan--but not every lender offers this type of program. Other borrowers may have low credit scores, require cash out from a transaction, need very short-term financing, have properties with negative cash flow or have other requirements that place them outside a given lenders loan parameters.
Regardless of how strong you think your loan request is, never waste time trying to get a lender to fund a transaction that is outside of "their box." Regardless of what your loan officer tells you, these loans rarely get done.

Being referred to a lender from another industry professional is a big plus. The lender will know you're probably qualified and serious, and they will not want negative feedback making its way back to the referral source. You should always ask your realtor, accountant, attorney, banker, or others professionals for a solid referral to a potential lender.

If you learn that the institution you've contacted is not interested in working with you, don't sweat it. Simply have the lender suggest another commercial mortgage broker or lender that may be more appropriate for your situation.

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Know the Mortgage Loan Requirements Before Buying a Home

Generally, mortgage loan requirements are not very complicated, but getting a mortgage can be quite a bit of work. Accurate and organized financial records can greatly simplify this process. Make a usual habit of keeping all records of your financial history in one easily located place. A strongbox or file cabinet is perfect for this purpose.

For many reasons, you have probably already kept copies of your tax returns. These will be needed when applying for mortgage loan. This is the best record of your income history.

You will need copies of all bank statements for at least the previous two months, and sometimes more. This will include all checking, savings, retirement, and any other financial account that you hold.


You will be required to provide the name, address, telephone number, and any other pertinent information about your employer. If you are self-employed, you will need to provide all 1099 forms. This will show your overall profit for the year, before you have deducted your expenses.

If you are retired, and receive your income from Social Security, pension, or another source, you can not be denied a mortgage loan, as long as your debt to income ratio is appropriate. A bank will expect you to provide accurate documentation of the source of your income.

More often than not, you will be expected to have a certain amount of money dedicated as a down payment. A portion of this money may be held in escrow. This will ensure that all necessary taxes and insurance will be paid.

You may be asked for copies of both your Social Security card and your drivers license. These will be added to, and kept in your mortgage file.

As you can see, the requirements for a mortgage loan are not complicated, however accurate record keeping will certainly simplify this matter.

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How To Use Obama's Mortgage Stimulus Plan and Refinance a Mortgage

President Barack Obama has enacted a mortgage stimulus plan which will allow millions of homeowners the opportunity to refinance their home mortgage into a 4.5% fixed rate. This "Home Affordability Program" will give homeowners the chance to save hundreds of dollars per month. Here is how:

Currently, there are numerous grants available to homeowners, regardless of their credit rating. This government program is targeted towards people who need short term help. These grants can be used for loan repayments

There are loan modification programs available to homeowners who are facing "Financial Hardship" this can be, medical bills, loss of income or job, other debts. These loan modification programs will allow homeowner to have a monthly mortgage payment that is no more than 31% of their gross monthly income.

Also, the total amount of all other debts, including mortgage payments, must not exceed 51% of the homeowners gross monthly income.

The Federal Reserve and President Obama would like to see mortgage interest rates locked into a low 4.5% for all current and potential homeowners.

Homeowners can save on the cost of a mortgage counselor by getting free help from HUD appointed mortgage counselors, who act as representatives for you when talking to banks or lenders, for free.
Homeowners who have seen the value of their property fall by 15% or more during this mortgage crisis will be able to refinance into a 4.5% fixed rate home loan. This will help homeowners who have seen their property values drop as the housing market crashed.

President Obama knows that the economy is facing hard times and is trying to help homeowners. The government has set aside over $75 billion dollars to help homeowners refinance their mortgage. Home foreclosures are on the rise and home prices are falling. This mortgage stimulus plan will help to stabilize the housing market and with that, home prices will start to rise. Refinancing a home mortgage the right way will save you a lot of money, especially with this "Home Affordability Plan" from Obama. Take advantage of this great chance and speak with a mortgage lender or bank.

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Do You Meet Requirements For an FHA Loan?

Many people have a dream of owning their own homes. Some of these people feel they will never succeed at this dream. However, with the help of an FHA loan they may well be able to buy a home. These loans are backed through the Federal Housing Administration and are much easier to qualify for than other loans.

There are still things that you are required to meet in order to receive a loan. This program has been created for people who have a tough time meeting the requirements of conventional lenders.

A loan that you apply through the FHA for is one for which you will not need to have a minimum income to get. However, you will need to show that you have had an income that is steady for the last three years, and you were able to pay bills in a reasonable amount of time.


The ways that an income can come in are through seasonal work, child support, VA benefits, unemployment compensation, retirement pensions, SSI, and several more. There must be a ratio met that proves you will be able to pay for a loan. With only 29% of the money you have coming in going for housing cost, and another 41% allowed going for long-term debt.

For a FHA loan you will need to have a down payment that you can place on a home. This amount needs to be equal to 3% of the purchase cost.

The Federal Housing Administration will also check your credit. However, for a loan through the FHA you don't need great credit. These loans again are made easier to qualify so more people are able to own a home. And people who have not established credit can still get a loan also. As long as the requirements are met there are several people who can now have their dream of owning a home.

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Mortgage Shopping Considerations

The right mortgage is the single most important fiscal decision you can make. This loan will affect you for 30 years, and any mistakes in selecting the right financial product will cost you dearly over the course of these 30 years. Begin your shopping excursion with the knowledge of your own credit profile. What you do not know can - and will - hurt you! Mistakes, wrong accounts, and also inaccuracies in your credit profile lead to a reduction of your overall credit rating. The lower your credit rating, the more money a mortgage loan will cost you. Thus, you credit rating is directly tied to the interest rate of the mortgage for which you are applying. Know what is in your credit profile, clean it up if necessary, and then apply for a mortgage loan once the credit rating is accurate.

Of course, before you can actually apply for a mortgage loan, it is a good idea to shop around for a favorable interest rate. Mortgage rates are rarely ever constant and instead appear to be in a constant state of flux. As such, they subject to change because of current economic changes, treasury bills, and of course also the bond market. While it is not necessaryto be as knowledgeable as a securities trader about these items, it does pay to know which way the mortgage rates are heading. If they head downward, try to wait out the market until they reach their lowest points. Conversely, if they are heading up, you may either consider waiting until the loan rates are once again low enough to be favorable, or if you want to lock in the current rate and protect yourself against actually having to pay more for the loan in the near future.

With credit profile and loan rates firmly checked, it is now time to decide on a loan product. There are a variety of loans specifically designed for the different needs consumers may face. Some loans are set up for those who wish to pay off the loan within 15 or 20 years. In other cases there is the loan product that is tailored for the borrower who anticipates only spending a short period of time as homeowner of a particular property - usually five years or less. These loans anticipate the change in ownership and are advantageous as they feature low payments at the onset of the loan, but later on actually increase. Someone who will only stay in a home for a brief period of time will find this kind of fiscal vehicle to be very advantageous.

Another set of considerations to think about are the various fees that are charged during the application process. These charges are added to the cost of the credit, which is the interest rate. They may encompass fees, brokerage commissions, charges, and in some cases also nonsensical costs that drive up the overall amount of money the new home is costing you. As a consumer you have the right - up front - to demand a fee schedule from a lender you are considering. Check through the fees and if they are too high, ask for the fee schedules of various other lenders as well. You may be surprised to learn that some borrowers have actually successfully negotiated lower fees and costs with their lenders!

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