Payday loans for very bad credit -Fast and easy payday loans for poor credit

The payday market is changing very dynamically. Until recently, the first violin in the non-bank arena was played by only a few lenders. Now, however, we have much more room for maneuver, as the brands offering payday loans are becoming more and more. We can not hear about all of them on television, however. That is why today a few words about non-bank loans, which you may not have learned yet.

It is difficult to estimate exactly how exactly momentary brands are currently operating on the market. However, when we go deeper into the loan frameworks that they provide, it will soon turn out that the same lender is behind many of them. So why all the fuss about promoting the offer under successive signs?

Well, we already know the existing loan brands. We have borrowed money from them often more than once. And as you know, new customers usually have the best loan terms. Usually, they can count the time without paying. If they reach for the offer of a new brand, they will be able to use the loan again for free. In this way, lenders will attract them again. This solution works in favor of both parties: loan institutions have more clients, and we are the next chance for an attractive loan.

Fast and easy payday loans for poor credit

Lenders under various brands provide not only payday loans, but also loans with repayment option in installments. So if you have ever used other non-banking products, carefully study the documents attached to the loan (regulations, information form, framework loan agreement ). You can explore them on the website of the given loan brand.

In these documents, the lenders provide detailed information about the customer’s profile. Often there are also annotations about connections with other non-bank brands and limitations resulting from this title. For example, a person who has an active loan in one company cannot apply for a break in a sister’s brand. The lender reserves that at any given time the customer can only use one obligation.

So let’s check this type of restrictions before you decide to apply for a payment in a given company. Although filling out the form, of course, costs nothing, an earlier analysis of the terms of the loan will save you time dedicated to inference and will make you unnecessary hope for cash in a place where there is no chance in advance.

What is the bridge loan and how does it work?

The bridge loan is a real estate loan intended to finance the acquisition of a property pending the realization of the sale of another property.

 

What is the bridge loan?

Bridge loan is a short-term home loan that allows the borrower to make a real estate purchase before completing the sale of another property. The bridge loan is an alternative for homeowners who would like to live in another home that suits them more. Several forms of bridge loans are offered by banks, it is therefore necessary to choose the loan relay that best suits his project of real estate purchase and especially his financial means.

Nearly half of the real estate borrowers buying a property resell this property to obtain a new real estate acquisition. The bridge loan is the financial period that allows you to sell your property in the best conditions while obtaining another. The bridge loan is a short-term contract that usually lasts only 12 months to 24 months.

 

How does the bridge loan work?

The bridge loan is a simple principle, banks issue this loan to a borrower if he is in need of a sum of his current property to buy a new property, the borrower will give part of the amount, under the form of a bridge loan at the end of which will only be reimbursed interest, this loan is only for interest to be sold at the sale of the current property. This loan is a modifiable loan that takes into account characteristics specific to each operation. Bridging loans are divided into two repayment categories:

  • Payment of monthly installments to gradually repay the insurance premium and interest on the bridge loan .
  • Repay only the full bridging loan by paying the insurance premium throughout the contract. This choice is better for borrowers who can only pay a small monthly payment.

Through the bank, the amount of the bridge loan is calculated based on the property offered for sale. It is a real estate expert who estimates the value of real estate, as a rule it is granted 70% of the price of the property put on sale under the loan relay , this rate can be reduced according to certain technical elements that the bank takes into account.

 

The different forms of loan relay

The different forms of loan relay

There are three types of bridge loan :

1 – The bridge loan accompanied by a classic amortising loan

If you borrow more than the value of the property that will be sold, the lender advances on average 50 to 70% of the value of the property for sale. This amortizing loan complements your financing needs, a fixed rate is taxed excluding insurance to repay each month from the start. You repay the interest on the bridge loan and the maturities of the conventional loan.

2 – The bridge loan with “total franchise” accompanied by a depreciable loan

In this case, too, you borrow more than the value of the property that is for sale. This bridge loan is created to lower the monthly charges during the period when the property is not yet sold, it is associated with a long-term loan. Granted for a period of 24 months, the bridge loan has in full a total franchise period, so the interest is not paid monthly but only once.

3 – The dry relay loan

The dry relay loan is not associated with a long-term mortgage loan, it is a type of bridge loan that is in the interest of borrowers who only want an advance because the price of a new property is less than or equal to the price of housing that is offered for sale.

 

Relay loan example

  • Amount of the sale: 400 000 €
  • Amount of the purchase: 350 000 €
  • Amount of the bridge loan: € 280,000 (in fact, for security purposes, the banks only finance part of the sale price because its current value will be weighted)
  • Amount of the main loan: 350 000 – 280 000 = 70 000 €

Between the sale and the purchase, the borrower will have two credits. He will therefore pay the installments of the principal loan, together with the interest on the bridge loan .

In some arrangements, the interest on the bridge loan is also offset at the date of sale. This is called total franchise. In the case where the value of the property sold is greater than that of the property purchased, the borrower does not need the principal loan. This is called dry loan.

To simplify this operation, we offers a Buy Resale solution. This is a loan that covers the entire project: taking over the old mortgage and financing the new property.

 

The benefits of the bridge loan

The benefits of the bridge loan

The bridge loan is an interesting option for borrowers who want to acquire a new property that relies on the sale of another property to pay part of the price. The loan relay allows to obtain a new house before the sale of the old. The bridge loan allows you to wait for a buyer who meets your expectations and avoids paying two mortgages at the same time. It does not miss the opportunity to get a new home even if your current property is not sold yet.

What is personal contribution loan?

The acquisition of a real estate property often gives rise to the issue of personal contribution. The personal contribution is a sum of money that the borrower has to get out of his pocket to finance a real estate project . The savings you may have directly put in the real estate you want to obtain in order to simplify its obtaining.

What’s the point of personal contribution?

What

Protect yourself from the risk

In general, banks ask borrowers that their personal contribution can finance notary fees and guarantee fees . These fees represent up to 10% of the sale price of a property in a purchase in the old real estate, in the new it represents about 5% of the sum.

This request of the bank is justified because it makes it possible to guarantee the property, the expenses are additional elements in the acquisition of a housing.

If the borrower commits a default, the loan agency may seize the property and take back the loaned amount. If the fees are loaned to you by the bank, it is not possible to recover the funds.

Forcing the credit on the value of real estate allows the bank a guarantee of total recovery of funds in case of default. That is why bringing the notary and guarantee fees allows the lending organization to take control of the risk, your file will be more easily accepted by the bank.

The origin of your personal contribution

Your personal contribution can come from several sources: savings, current accounts, booklets, inheritance, donation … it is cash that a borrower has in his possession.

If you do not reside in France and your personal contribution is on an account abroad, you need to repatriate on the national territory, it sometimes happens that this is problematic in the country where you want to acquire the real estate because the source of any contribution must be justified with a bank .

In addition, in some situations a personal contribution can also come from the sale of an old home, you can use in this context to a loan relay: the time that you sell a property, you can make the acquisition of another.

Personal contribution increases your borrowing capacity

Personal contribution increases your borrowing capacity

higher input, lower rate

Apart from the costs financed by a personal contribution, the loan organizations favor loan applications that guarantee a large personal contribution .

Indeed, regardless of the source of the contribution as long as it remains legal in the eyes of banks, a personal contribution that exceeds 20% of the price of the property is an advantage for lending institutions and this marks a real trust between both parties.

With a personal contribution of around 20%, real estate rates offered by banks are logically lower. A borrower with a personal contribution proves his seriousness in front of the bank.

Do not put all your savings in your personal contribution

It should be understood that the borrower should not put all his savings into his personal contribution . Additional fees and unexpected expenses may occur during your real estate purchase, so you need to keep some money.

However, if you have a savings with a remunerative rate that is higher than the interest rate of the mortgage loan it is not financially attractive to increase your personal contribution.

In this scenario, the bank will know that you are able to save and will see in your project a money back guarantee in a difficult situation.

How is the personal contribution calculated?

You want to calculate your personal contribution before the presentation of your loan application file to your bank, you must understand beforehand that a contribution is a percentage of the total amount of your property acquisition project.

If you have found the property you wish to buy and you are aware of the price, you must divide the amount you want to invest to the total amount of the property .

example of calculates the personal contribution

Suppose you want to buy a house for 300,000 euros, your personal contribution is 50,000 euros. Your personal contribution will then be around 15% of the price of the real estate: 50 000/30 000. The mortgage will then be 166 000 euros, about 75% of the price of the acquisition.

to borrow without personal contribution, it is possible

to borrow without personal contribution, it is possible

However, we must nuance all the things said previously, the lending agencies are not against granting credit without personal contribution even if they are more rare, you will need to be vigilant with banks. Three types of borrower profiles without contributions are however accepted by the loan organizations:

young first-time buyers

Young first-time buyers who have just entered the workforce and have not had the opportunity to save before can benefit from a mortgage without any personal contribution. Aided loans such as the Zero Rate Loan or the Housing Loan can however make it possible to make a contribution, the banks make no distinction at this level.

To benefit investments

Otherwise, there are individuals who have significant savings and wish to acquire while keeping the money that has just been invested. If you have a lot of savings and tax exemption products, then you can get a home loan without any input, the interest rate that is offered by the lending agency will be lower than the investment rates you have facts.

Investors

Investors wishing to rent a home can have a credit without personal contribution. The payment of the interest of a mortgage allows a reduction of taxes. The more investors borrow, the more land benefits will decrease. That’s why it’s best for them not to come with a personal contribution. This method is often used as part of a Credit in Fine.