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Loans
Money lent to individuals or businesses in return for interest in addition to repayment of principal. Common types of loans include commercial loans, interbank loans, mortgage loans, and consumer loans.
13,117 Questions
Should you get a cash advance payday loan?
"I just need enough cash to tide me over until payday.""GET CASH UNTIL PAYDAY! . . . $100 OR MORE . . . FAST." The ads are on the radio, television, the Internet, even in the mail. They refer to payday loans, cash advance loans, check advance loans, post-dated check loans, or deferred deposit loans. The Federal Trade Commission, the nation's consumer protection agency, says that regardless of their name, these small, short-term, high-rate loans by check cashers, finance companies and others all come at a very high price. Here's how they work: A borrower writes a personal check payable to the lender for the amount the person wants to borrow, plus the fee they must pay for borrowing. The company gives the borrower the amount of the check less the fee, and agrees to hold the check until the loan is due, usually the borrower's next payday. Or, with the borrower's permission, the company deposits the amount borrowed - less the fee - into the borrower's checking account electronically. The loan amount is due to be debited the next payday. The fees on these loans can be a percentage of the face value of the check - or they can be based on increments of money borrowed: say, a fee for every $50 or $100 borrowed. The borrower is charged new fees each time the same loan is extended or "rolled over." The federal Truth in Lending Act treats payday loans like other types of credit: the lenders must disclose the cost of the loan. Payday lenders must give you the finance charge (a dollar amount) and the annual percentage rate (APR - the cost of credit on a yearly basis) in writing before you sign for the loan. The APR is based on several things, including the amount you borrow, the interest rate and credit costs you're being charged, and the length of your loan. A payday loan - that is, a cash advance secured by a personal check or paid by electronic transfer is very expensive credit. How expensive? Say you need to borrow $100 for two weeks. You write a personal check for $115, with $15 the fee to borrow the money. The check casher or payday lender agrees to hold your check until your next payday. When that day comes around, either the lender deposits the check and you redeem it by paying the $115 in cash, or you roll-over the loan and are charged $15 more to extend the financing for 14 more days. If you agree to electronic payments instead of a check, here's what would happen on your next payday: the company would debit the full amount of the loan from your checking account electronically, or extend the loan for an additional $15. The cost of the initial $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100. Before you decide to take out a payday loan, consider some alternatives. # Consider a small loan from your credit union or a small loan company. Some banks may offer short-term loans for small amounts at competitive rates. A local community-based organization may make small business loans to people. A cash advance on a credit card also may be possible, but it may have a higher interest rate than other sources of funds: find out the terms before you decide. In any case, shop first and compare all available offers. # Shop for the credit offer with the lowest cost. Compare the APR and the finance charge, which includes loan fees, interest and other credit costs. You are looking for the lowest APR. Military personnel have special protections against super-high fees or rates, and all consumers in some states and the District of Columbia have some protections dealing with limits on rates. Even with these protections, payday loans can be expensive, particularly if you roll-over the loan and are responsible for paying additional fees. Other credit offers may come with lower rates and costs. # Contact your creditors or loan servicer as quickly as possible if you are having trouble with your payments, and ask for more time. Many may be willing to work with consumers who they believe are acting in good faith. They may offer an extension on your bills; make sure to find out what the charges would be for that service - a late charge, an additional finance charge, or a higher interest rate. # Contact your local consumer credit counseling service if you need help working out a debt repayment plan with creditors or developing a budget. Non-profit groups in every state offer credit guidance to consumers for no or low cost. You may want to check with your employer, credit union, or housing authority for no- or low-cost credit counseling programs, too. # Make a realistic budget, including your monthly and daily expenditures, and plan, plan, plan. Try to avoid unnecessary purchases: the costs of small, every-day items like a cup of coffee add up. At the same time, try to build some savings: small deposits do help. A savings plan - however modest - can help you avoid borrowing for emergencies. Saving the fee on a $300 payday loan for six months, for example, can help you create a buffer against financial emergencies. # Find out if you have - or if your bank will offer you - overdraft protection on your checking account. If you are using most or all the funds in your account regularly and you make a mistake in your account records, overdraft protection can help protect you from further credit problems. Find out the terms of the overdraft protection available to you - both what it costs and what it covers. Some banks offer "bounce protection," which may cover individual overdrafts from checks or electronic withdrawals, generally for a fee. It can be costly, and may not guarantee that the bank automatically will pay the overdraft. The bottom line on payday loans: Try to find an alternative. If you must use one, try to limit the amount. Borrow only as much as you can afford to pay with your next paycheck - and still have enough to make it to next payday. (Source - FTC http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt060.shtm)
From other contributors:
* A payday loan is an expensive way to borrow money. Paying $50 to borrow $200 for two weeks is something like a 600% APR. Even a credit card with a 20% interest rate (which is very high right now, given today's low rates), would be much better for you. During an emergency we borrowed a payday loan and the experience was worth mentioning. == == * Cash advance payday loans are designed for people who do not have any other resources to solve their cash crisis. Therefore, the fact that a credit card cash advance has lower rates is not applicable to someone who is either maxed out or does not have a credit card. The cash advance industry came about due to strict small loan policies put into lace by traditional banks. If they refuse to service these consumers without perfect credit and collateral, than who will? And when the lights go out because the electric bill isn't paid or the rent overdue, than what is a person to do? Paying a bill late or bouncing a check can end up being much more costly than the fees associated with a cash advance payday loan. LATE charges on most bills are MUCH less than payday loan rates.Most banks now offer the "overdraft" protection at slightly less than payday rates . LOL * Absolutely not... this is a quick way to take yourself further into debt. You must understand that in order to get the cash advance, you have written that agency a check for the amount "advanced" plus a fee, usually $50. That check you wrote will be submitted to YOUR bank for payment after about 2 weeks. If the funds are not there, then YOUR debt multiplies by leaps and bounds, furthering your need to "borrow" even more money to pay off a prior advance "loan". That simple $200 cash advance has then quickly turned into Thousands of dollars being owed. * Bottom line: If you don't have the funds in the bank in the first place, you really have no business borrowing against what you haven't yet earned.
Is an installment loan a good idea?
An installment loan is a good idea,where you don't have to make guesses what
payment one has to make every month.
Check cashers, finance companies and other businesses may offer you small, short-term, high-rate lending known as a cash advance loan. (Also called a check advance, post-dated check, or deferred deposit check, or payday loan.)
Usually, a borrower writes a personal check payable to the lender for the amount he or she wishes to borrow plus a fee. The company gives the borrower the amount of the check minus the fee. Fees charged are usually a percentage of the face value of the check or a fee charged per amount borrowed � say, for every $50 or $100 loaned. And, if you extend or "roll-over" the cash advance loan � say for another two weeks � you will pay the fees for each extension.
Under the Truth in Lending Act, the cost of a cash advance loan � like other types of credit � must be disclosed. Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis).
Many check cashing businesses offer small sum, short-term, high-rate, unsecured personal loans. These go by many names, including: payday loan cash advance loan post-dated check loans deferred deposit In a payday loan transaction, the borrower will provide to the lender items such as a paycheck stub, photo identification and a recent bank statement. The borrower writes a check to the lender for the amount and the lender's fee. Under law in some states, the lender's fee is limited. The lender agrees to hold the check until the customer's next payday, up to 30 days. At that time, the borrower may redeem the check with cash, allow the lender to deposit the check or roll over the loan by paying another fee. Payday lenders advertise their services as a way to cover unexpected expenses like car repairs and avoid bounced check fees and late payment penalties. Potential payday loan customers should be aware of the risks and responsibilities involved with this sort of lending. Let's say you want to borrow $200 until you get your next paycheck in two weeks. You write a postdated check to a payday lender for $230 (15% of $200 = $30 lender's fee + $200 loan amount = $230) and get $200 cash in return. The $30 interest you pay on the loan calculates to an Annual Percentage Rate (APR) of 391%. The payday lender may also charge you a one-time fee of $10 to set up an account. If you are unable to repay the loan after the agreed-upon 14 days have elapsed, you may elect to extend the loan for another two weeks by paying an additional $30. If you choose to roll over the loan, you will have paid $60 in lender's fees for a one-month loan of $200. It's easy to see how these fees can quickly add up
Are loan-by-phone companies legitimate?
Yes, but not all of them. *Make sure to see if they're registered with the state, and are with the BBB
Can you get a title loan if you have bad credit and your car was repossessed but you own a business?
If you apply with multiple title loan lenders the odds are high that you will run across scam companies. Some offshore companies have moved from payday loan scams to those that involve the title loan industry. Be careful and always research the company you work with. Find a website or company(like Premier Car Title Loans Online) that lists their contact info on the homepage. Consider what happens when a potential borrower starts filling out online loan applications. His or her information is shared by the credit reporting agencies with outside entities and marketing firms. This practice makes it easy for unsuspecting consumers to become targets of unlicensed lenders. Consumers with bad credit are especially vulnerable because they have limited financing options. Some applicants are desperate to find any lender who will guarantee them a loan. Watch out for unsolicited calls, e-mails, or letters that claim that an approval guarantee for your pink slip. Likewise, if a lender asks for money in advance for “an “application fee,” or for the “first month’s payment,” this is likely a car title loan scam. Most reputable companies will deduct their fees from the actual loan amount that is obtained.
Are the 'instant payday loan' companies advertising over the Internet legitimate?
You may be tempted by ads and websites that guarantee loans or credit cards, regardless of your credit history. The catch comes when you apply for the loan or credit card and find out you have to pay a fee in advance. According to the Federal Trade Commission (FTC), the nation's consumer protection agency, that could be a tip-off to a rip-off. If you're asked to pay a fee for the promise of a loan or credit card, you can count on the fact that you're dealing with a scam artist. More than likely, you'll get an application, or a stored value or debit card, instead of the loan or credit card.
The Signs of an Advance-Fee Loan ScamThe FTC says some red flags can tip you off to scam artists' tricks. For example:- A lender who isn't interested in your credit history. A lender may offer loans or credit cards for many purposes - for example, so a borrower can start a business or consolidate bill payments. But one who doesn't care about your credit record should give you cause for concern. Ads that say "Bad credit? No problem" or "We don't care about your past. You deserve a loan" or "Get money fast" or even "No hassle - guaranteed" often indicate a scam.
- Banks and other legitimate lenders generally evaluate creditworthiness and confirm the information in an application before they guarantee firm offers of credit - even to creditworthy consumers.
- Fees that are not disclosed clearly or prominently. Scam lenders may say you've been approved for a loan, then call or email demanding a fee before you can get the money. Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away, especially if you're told it's for "insurance," "processing," or just "paperwork."
Legitimate lenders often charge application, appraisal, or credit report fees. The differences? They disclose their fees clearly and prominently; they take their fees from the amount you borrow; and the fees usually are paid to the lender or broker after the loan is approved.
It's also a warning sign if a lender says they won't check your credit history, yet asks for your personal information, such as your Social Security number or bank account number. They may use your information to debit your bank account to pay a fee they're hiding.
- A loan that is offered by phone. It is illegal for companies doing business in the U.S. by phone to promise you a loan and ask you to pay for it before they deliver.
- A lender who uses a copy-cat or wanna-be name. Crooks give their companies names that sound like well-known or respected organizations and create websites that look slick. Some scam artists have pretended to be the Better Business Bureau or another reputable organization, and some even produce forged paperwork or pay people to pretend to be references. Always get a company's phone number from the phone book or directory assistance, and call to check they are who they say they are. Get a physical address, too: a company that advertises a PO Box as its address is one to check out with the appropriate authorities.
- A lender who is not registered in your state. Lenders and loan brokers are required to register in the states where they do business. To check registration, call your state Attorney General's office or your state's Department of Banking or Financial Regulation. Checking registration does not guarantee that you will be happy with a lender, but it helps weed out the crooks.
A lender who asks you to wire money or pay an individual. Don't make a payment for a loan or credit card directly to an individual; legitimate lenders don't ask anyone to do that. In addition, don't use a wire transfer service or send money orders for a loan. You have little recourse if there's a problem with a wire transaction, and legitimate lenders don't pressure their customers to wire funds.
Finally, just because you've received a slick promotion, seen an ad for a loan in a prominent place in your neighborhood or in your newspaper, on television or on the Internet, or heard one on the radio, don't assume it's a good deal - or even legitimate. Scam artists like to operate on the premise of legitimacy by association, so it's really important to do your homework.
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
Yes, most of them are legitimate. For added security, check to see that their website carries the BBB, Verisign, or other security symbol.
Is it better to obtain a loan from a credit union or a bank?
Credit Unions are usually the more favorable in regards to loan repayment terms and interest charges. However, the loan amount is likely to be small, if you need bigger loans you will need to go to a bank or bad credit lenders if you have a bad credit rating. One thing to remember here is to ask if the institution reports to the credit bureau. Some smaller credit unions will not report and will not help someone establish credit.
Bad credit lenders would be willing to help you. However, it is up to every lender to decide whether you meet their lending requirements, the previous bankruptcy might be a problem. More deposit might make a difference. Also, since its for a good cause, you may be able to get the loan from a non-profit lender, thus costing you less.
You can talk to lenders who are specializing the loan. Maybe they can have some percentage down.
How do you collect on a private loan that has been defaulted on?
You can't legally collect on another individual.
You can however take them to court: You will need proof that the person took a loan from you, this can be a written and signed document or a verbal agreement with a third party witness. You can then take the person to a small claims court.
If you have several jobs, most likely the ones that will be considered are the ones you can prove that you have held for a year or more. This includes part time, moonlighting jobs if you wish to have that income considered. Keep a good file with paystubs, award letters and so on. If you have paid off a judgment or a bankrupcy, you will need the letters saying they are paid. It will save you time when you need to produce the information. Income that can be used in your qualifying ratios has to first be "proveable", either via W-2s, paystubs, award letters, etc. It must have been consistent in the past(usually 2 years) and more importantly be expected in the future. Sources of income can include hourly jobs, salaried jobs, self-employed situations, pensions, trust awards, alimony, child support, retirement and so on; basically anything that you can prove that you have received in the past and can prove that you will receive.
You won't have any trouble at all getting a loan but most banks will probably want to issue credit by way of a credit card unless you have some sort of collateral (paid off car, or equity in a home)
Does being the co-owner of a car give you credit?
Not necessarily. It is possible to co-own a car, be on title, and not have borrowed money for the vehicle. Credit history is established when you borrow money. It is a record of how you have paid the money back. If you purchased a car with someone else by paying one lump sum, and never borrowed; then co-owning would not have established any credit history for you.
No. Credit history pertains to the individual. With the exception of joint accounts such as credit cards, not bank accounts.
Is there a standard percentage that collections agencies generally accept?
If you mean negotiating a settlement for a debt, it is possible. The best strategy is to "aim low" Offering a third of what is owed is a good place to start.
Is it mandatory for every single bank or lending agency to request proof of employment or income?
No, it is not mandatory, but it is a good idea. You can get around having assets verified, but it usually comes with a cost, ( such as a higher interest rate for repayment). The more documentation you have to show that you are capable of paying off the loan, the more the company trusts you with the loan, and in terms of mortgages, they trust that they are able to possibly sell your loan to another loan company. If they do not have any trust in you ability to pay, they charge a higher interest rate in order to get the most money out of you while they can.
Do banks only consider the name on the title when checking credit?
The lender will consider the credit of the people that will be applying for the mortgage. Anyone with bad credit will only hurt the other person's chance of getting the mortgage. If they can apply by themselves they should. After the the closing of the mortgage and sale--anyone can be added to the title --it is called a quit claim deed.
The bank will consider the credit of all people on the application. They will want anyone on the Title to be on the Application. In order for the party with bad credit to not be considered, they must remain off the title and the application. Only income of the people on the application will be considered for the debt ratio.
A bank might, but a mortgage company won't. On a conventional loan you can have only one spouse on the loan application and both on the title. This is done all the time. Call me if you have any further questions. Rachel, Capital Lending, 504-818-0400
How can you save money on a home mortgage loan?
Here are some tips for saving money on your home loan:
Although your monthly payment may be higher, you can save tens of thousands of dollars in interest charges by shopping for the shortest-term mortgage you can afford. On a $100,000 fixed-rate loan at 8% annual percentage rate (APR), for example, you will pay $90,000 less in interest on a 15-year mortgage than on a 30-year.
You can save thousands of dollars in interest charges by shopping for the lowest-rate mortgage with the fewest points. On a 15-year, $100,000 fixed-rate loan, just lowering the APR from 8.5% to 8.0% can save you more than $5,000 in interest charges. In this example, paying two points instead of three would save you an additional $1,000.
If your local newspaper does not periodically run mortgage rate surveys, call at least six lenders for information about their rates (APRs), points, and fees. Then ask an accountant to compute precisely how much each option will cost and its tax implications.
Don't be afraid to check out non-traditional lenders. Often the fixed cost of your local bank branch makes their mortgage rates higher than an internet-based provider.
Be aware that the interest rate on most adjustable rate mortgage loans (ARMs) can vary a great deal over the lifetime of the loan. An increase of several percentage points might raise payments by hundreds of dollars per month.
The above information is excellent, and is a great way to pay less on your mortgage. A way to pay off your mortgage in half the time without changing your current monthly payment, however, is to get a Cash Flow account. By paying less in interest and more in principle, and because your principle will earn interest, you will be able to pay off a 30 year mortgage in about 15 years or less. If you keep your Cash Flow account for the whole 30 years, you will actually have over $1 million that you can use to pay off your house, and use the rest to retire or pay for college funds or invest or whatever.
NewHow to maximize your saving depends on your situation. You have to ask yourself, how long will I be in this property?If you plan to retire and live in the house forever please PAY POINTS. If you are going to repay your entire mortgage is it almost universaly better to pay extra points upfront to "buy-down" your interest rate. Try to obtain the lowest fixed-rate mortgage loan you can afford to buydown. Since you usually payback three times the amount of the original balance over the life of the loan, it will be better to pay some extra upfront points to save much more in interest payments over the life of the loan. Also, Discount Points used to buy-down you interest rate are tax-deducable.
Conversely, if you plan to only be in the property for a limited number of years, DO NOT PAY POINTS. Since you will not have the loan for very long, frequently the monthly interest saving will not be enough to cover the initial invest towards points. To compensate, try to obtain a short-term adjustable rate mortgage (ARM) with an initial fixed period of the same length you plan to be in the house. For instance, if you plan to sell the property within the next three years, take out a 3-year or 5-year ARM. These loans will have a lower interst rate than there fixed rate counterpart.
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Guide to Mortgage RateMortgage rates or the interest rates for home loans are affected by a variety of factors. More often than not, they are influenced by supply and demand. A strong economy results in more borrowing which in turn results in higher interest rates. Conversely, with the softening of an economy, borrowing goes down and so does interest rates. The Federal Reserve can also influence interest rates through raising or lowering the discount rate which is the interest rate banks are charged when they borrow money from the Federal Reserve.Read More:
http://www.housingnewslive.com/mortgage-rates.php>
How does a balloon mortgage work?
A balloon mortgage is a short-term, fixed rate home loan with fixed monthly payments for a set number of years (usually 5-10) followed by a final payment of the principal.
Payments are usually lower with a balloon mortgage because only the interest is paid each month. For example, borrowing $10,000 in a balloon mortgage means that a large payment is due in one lump sum at the end of the term.
Note that if you cannot make the final payment or refinance the amount, you can lose your home.
The reason for the "balloon" payment is due to a difference between the repayment term (time until maturity) of loan and the actual payment amortization (repayment plan).
With regular financing, 30-year mortgages will have a 30-year amortization (repayment plan) and a 15-year mortgage will have a 15-year amortization. With ballooon finanicng, the loan is frequently due (term) in 15 years, but the payment amortization is for a 30-year repayment. Consequently, at the maturity of the loan in 15-years the debt will not have been repaid, resulting in the last payment being significantly higher.
The benefit for this type of financing is that the borrowers have a low monthly payment. The downside is that the loan usually must be refinanced before the last payment is due (as most people do not have enough to cover such a high lump sum).
This type of financing has put a lot of people in the situation that they have bought more home than they can afford and believe they are paying it off by making a low monthly payment. Meanwhile, when they cannot prove enough equity or if their future situation does not allow them to refinance, they end up as one of the very many who are being foreclosed upon.
What if you can't make your mortgage payments?
If you fall behind on your mortgage, contact your lender immediately to avoid foreclosure. Most lenders are willing to work with you if they believe you're acting in good faith and the situation is temporary. Some lenders may reduce or suspend your payments for a short time. When you resume regular payments, though, you may have to pay an additional amount toward the past due total. Other lenders may agree to change the terms of the mortgage by extending the repayment period to reduce the monthly debt. Ask whether additional fees would be assessed for these changes, and calculate how much they total in the long term.
If you and your lender cannot work out a plan, contact a housing counseling agency. Some agencies limit their counseling services to homeowners with FHA mortgages, but many offer free help to any homeowner who's having trouble making mortgage payments. Call the local office of the Department of Housing and Urban Development or the housing department in your state, city, or county for help in finding a housing counseling agency near you.
Do you need a down payment if the value of the home is higher than the loan?
I am a Loan Originator for a Mortgage Company and to answer your question, you must go off the purchase price in a Sale no matter the appraised value, but there are so many different loans in my market you may not have to put a down payment at all. And the seller can pay all of your closing costs. It just depends on the situation. You could walk away with no money down.
Actually a mortgage company will use the lesser of the purchase price or the appraised value. Some lenders can do "hard money" loans and will lend on the "future" value as opposed to the purchase price, but expect very high rates.
Can someone else be a co-signer for a loan on a house?
Yes, but that person is guaranteeing to pay the mortgage if the primary borrower defaults. That means they will have to pay for property they don't own. No one should co-sign any loan that they cannot afford to pay.
What is a reverse mortgage and how does a reverse mortgage work?
Designed for seniors, a reverse mortgage is a loan that allows the homeowner to convert some of the equity in their home into cash or monthly income, while retaining home ownership. A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM) is a relatively new product. A reverse mortgage provides unique benefits for its target market eg: someone over 62 who lives in his/her primary residence, who has substantial equity in his/her home, and who has little or no income. A reverse mortgage is a loan against the equity in your home that you don't need to pay back for as long as you live in the home. Eligibility for a reverse mortgage is set by the Federal Government; The Federal Housing Authority FHA tells HECM lenders how much they can lend you, based on your age and your home's value.
The mortgagor is not required to make any payments, the home is owned by the bank upon the death of the mortgagor and the transaction is structured so that the loan amount will not exceed the value of the home at that time. That feature should raise a red flag. That means the homeowner isn't given the fair market value of the property initially because the bank must figure in the interest over the possible life of the loan.
Good credit is not relevant because the home provides the security for the loan. In some cases the heirs have the option to pay off the mortgage when the owner dies but the cost can be extremely high. This type of mortgage has higher up front fees than conventional mortgages and those costs become part of the original mortgage which accrues interest at a rapid rate. This is an important factor to consider because the mortgage must be paid in full if the owner decides to sell the property or if their heirs desire to keep it after their death. Especially troublesome is the fact that many reverse mortgage lenders will send a loan officer to the senior's home to sign the loan documents and the senior has no benefit of having another pair of eyes and ears present at the transaction.
To be eligible for a reverse mortgage, you need to be at least 62 years old, occupy the home as a primary residence, and either own your own home outright or only owe a small amount on your existing mortgage loan that can be paid off at closing with the proceeds from the reverse mortgage.
In general, a reverse mortgage is tax free and has no income restrictions. Additionally, most payments from a reverse mortgage won't affect Social Security or Medicare benefits. In fact, many seniors use a reverse mortgage to supplement their Social Security and Medicare, allowing for more financial security.
Reverse mortgages also work in a purchase transaction. You can purchase a home without making a single monthly mortgage payment. This option allows seniors to move close to family when the need arises. There are various ways seniors can benefit with a reverse mortgage including receiving additional tax-free monthly income or a lump sum payment, cancelling a current mortgage payment, funding long term care insurance and in-home care, renovations and repair work to their homes.
In many states, the Reverse Mortgage, or Senior Reverse Mortgage, allows for a new home purchase with the use of reverse mortgage funds, this rule does not apply nationwide. Although HUD and the FHA recently passed the HECM Reverse Mortgage home purchase program, allowing you to purchase a new home with reverse mortgage proceeds, borrowers in Texas are not yet eligible. Rules in individual states may vary. Please see a specialist in your own state for more details.
Can someone with a mortgage get another mortgage to buy a second house?
If they have good credit and the ability to repay. Most people who own multiple homes have multiple mortgages.
Can your daughter and son-in-law and you all be on the same home loan?
Certainly. As far as the mortgage company is concerned, the more responsible parties the merrier.
However, be very careful if you are acting as a co-signer and your name is not on the deed. In that case your are completely responsible but have no legal rights.
I would consult with an attorney to be sure you completely understand what you are signing.
