Category Archives: Finance

How to Qualify for FHA Streamline Refinance Program

refinancing mortgage contractThere are various ways to work on your mortgage rates without losing your home. The FHA streamline refinance program in Utah, for instance, is a great option for homeowners who have an existing FHA loan and want to lower their monthly payment.

However, certain qualifications need to be met. Here are the criteria for you to qualify:

You Have to be Staying in the House

One of the qualifications for refinancing is that you have to be living in the property you are refinancing. You should also own the home for at least six months before you could apply for a refinancing program.

Your Payments Should be Updated

You will not qualify for refinancing if you have two late monthly payments on your FHA home loan within the past 12 months. So before your application, check if all your payments are current and made on time.

Get an FHA-approved Letter

You need to have an FHA-approved letter to refinance your existing loan. Meanwhile, homeowners who want to switch to a different lender must ensure that the FHA approves the bank that they will choose as well.

Save Up for the Closing Costs

Another factor that you should consider is the closing costs. Keep in mind that all the closing costs must be paid up front prior to your loan approval. You may also arrange for a “no-cost” FHA streamline home loan.

Although the FHA streamline refinance program is the fastest and the easiest way to refinance your mortgage, there are still a few qualifications that need to be met. To make the process easier, you may want to consider working with qualified mortgage planners to assist you with the entire application process.

An Overview of the Kinds of 1031 Tax Exchanges

Man reviewing documentsBuying and selling property is among the most lucrative ventures nowadays. There are, however, various taxes involved in property transactions, which might not be so convenient for you. But Section 1031 of the United States IRS code allows you to defer the taxes from property transactions.

It is prudent to consult the best among the many 1031 exchange companies in Utah to get the ideal one for your situation. Here are some of the available 1031 tax services.

Simultaneous Exchange

This is the original type of 1031 transactions. In this tax service, your original property is sold and the replacement one bought at the same point in time and using one escrow office. A simultaneous exchange is tough to navigate, and hence just one player in a property transaction is involved in the trade.

Delayed Exchange

In delayed exchange, real estate is sold then a replacement one is bought within 180 days. The replacement property should be recognized within 45 calendar days of the sale of the original one. A delayed exchange is the most popular because of the window period between selling and buying replacement property.

Reverse Exchange

In this 1031 tax exchange, replacement property is bought before the sale of your original property. If you must close the deal of your replacement property yet you haven’t found a buyer of your original one, a reverse exchange is an ideal option. However, this tax exchange will not allow you to own your old and new properties at the same time, and so complications may arise regarding your deed transfer.

From the above tax exchange types, you will appreciate that there is one to suit virtually every need. Section 1031, however, only applies to transactions involving commercial and investment properties. With a good 1031 exchange company, you will know the best way to structure your properties to benefit from this profitable service.

FHA loan form

The Most Common Types of FHA Loans

FHA loan formThe Federal Housing Authority established the FHA loan program upon its formation in 1934. The purpose of the FHA loan program is to help Americans get housing loans.  The FHA does not lend out money itself. It only promises lenders that if the owner of a loan it backed does not pay, the FHA would cover it.

The benefit to the mortgage owner is the low down payment. If you are eligible for the FHA loan program, you only have to pay 3.5% as a down payment. To make the program more accessible to more people, the FHA supports different types of home loans. Below are some of the most common ones.

Fixed rate

A fixed rate mortgage is a conventional type of loan. The interest rate is the same throughout the loan term, which can be as long as 30 years. The only things that will change the monthly payment are the amount of the property taxes and insurance premiums.  It is the most common type of loan people apply for through the FHA loan program.

Adjustable rate

An adjustable rate mortgage is also a conventional loan. However, the interest rate can change over the term of the loan. You might get a fixed interest rate for the first few years, after which the interest rates will follow market changes.

Reverse mortgages

People over 62 years old that own their primary residence can apply for reverse mortgage loans. They can use the equity on their homes to get money from a lender to spend on whatever they want. The loan principal and interest rate become due when the property owner dies or sells the property.

Gradated payment

This type of loan is for people with good prospects but limited incomes. A new college graduate or professional just starting out is a good candidate for this loan. Also known as a Section 245(a) loan, the monthly payments are smaller than normal in the early part of the loan term. This gradually goes up over time when the mortgage owner can presumably afford to pay more.

Many more types of loans are available under the FHA loan program. These are just the most common ones. If you qualify for and want to apply for an FHA-backed loan, it’s likely you’ll find one to fit your circumstances.

3 Common Reasons People Take Out Cash Loans

a man handing over dollar billsMany people apply for loans to cover some unexpected but highly urgent bills. And while the reasons vary, it’s still good to know that you can count on these loans to get you through your financial responsibilities. If you haven’t taken out a loan yet, these situations are examples of when cash loans in Provo will be helpful.

You need to pay off your credit card debt

Based on recent figures, the average credit card debt per card is $1,154. When you’ve already reached your credit limit and you need to pay off past debts, you can apply for personal loans. For many people, it is important to keep their credit score stable because a poor one can have several consequences, which may affect not only their borrowing capacity but also their chances of getting future loans.

You need a buffer for your childbirth or child-rearing budget

Babies are precious. And expensive. While you can save up for the baby’s future needs such as diapers and milk, the biggest bulk of all baby-related expenses are the hospital bills during childbirth. Of course, you have nine months to prepare for the day, but if you became a candidate for a Cesarean section at the last minute or needed to have an emergency operation, a loan will be your rescue option.

Holidays are expensive, too

You’re making a list and checking it twice, because you need to find which items will cost you much this time. Holidays such as Thanksgiving and Christmas are expensive and sometimes, with all the festivities happening, you need some extra cash for spending.

Borrow Wisely

There are many types of cash loans you can apply for. Just make sure that you borrow within the range you’re comfortable with and that you have a debt-free plan in action. Lastly, personal loans are great for unexpected expenses so make sure you spend it wisely, so you don’t end up developing a borrower’s habit.

Misconceptions about Filing for Bankruptcy You Should Not Believe Anymore

a business woman tired and worry about workNobody likes to fail in life, yet failure is often unavoidable, despite making every effort to avoid it. While some letdowns stem from ignorance, some failures are unpredictable. Financial failures straddle both ends of this spectrum.

On one hand, you might incur too unsecured loans debt. On the other hand, you might be saddled with an impossible medical bill. If the debts spiral out of control, it is time to seek out a bankruptcy attorney in Salt Lake City such as Utah Bankruptcy Professionals.

But, but, but lawyers cost money

Sure, you’re backed against the corner and every dollar counts. However, you stand a better chance of success if you have a seasoned legal mind guiding your every move. Otherwise, you are likely to overlook a crucial fact that could lead to the dismissal of your application. Then you must start the process over.

Again, a lawyer can help you decide between chapter 7 or 13 bankruptcy. A great attorney gives you a fighting chance by ensuring the exemptions are sufficient to give you a fresh start. Although they differ between states, exemptions let you keep a certain amount of your properties instead of stripping you bare.

But, but, but that will ruin my life

Sure, your friends and families are likely to whisper behind your back, but that pales in comparison to the alternative. Failing to address such issue can lead you to develop health problems, which could further complicate your life.

Filing for bankruptcy offers relief from some debt and it affords you the chance to offset the others. While it does not exempt you from back taxes, child support, student loans, and alimony, it frees up some cash. You can channel this freed income to clear some of the mandatory bills.

That way, you can lessen the financial burden, collect the pieces slowly, and rebuild your life.

Many misconceptions surround the topic of filing for bankruptcy, which causes people to shy away from exploring it when in need. In most cases, it provides you with a way out when drowning in debt.

Finance sheet, calculator, and eyeglasses

4 Benefits of PO Financing That All Businesses Should Know

Finance sheet, calculator, and eyeglassesPurchase order (PO) financing is a short-term funding option for any company that needs capital. With it, business owners could pay their suppliers and fill the single or multiple orders of their customers. This is ideal for companies that lack funds, as PO financing can cover a huge part (up to 100%) of their operational costs.

There will be times when businesses need to accept a large order, but may be afraid to do so because they don’t know where to get funds. Well, not anymore because this is where PO financing companies come into play. They could cover a portion or most of the additional operating expenses and help businesses grow.

Here are some of the major benefits of this amazing financial arrangement:

PO Financing is not a credit

A purchase order financing company will agree to cover the cost of the materials that the company needs to complete a certain order. They will collect based on the invoice and require you a fee — with rates of 1.8% to 6% per month, for example.

Loans can get expensive and difficult to obtain if the company doesn’t have a great credit. Fortunately, PO financing could be a good alternative.

PO Funding allows you to take on bigger opportunities

Accepting big job opportunities means bigger revenue for your business. As you won’t be paid until the job is complete, PO financing will be your initial helping hand in getting the money you need for your supplies. It’s a great opportunity for businesses to expand and get bigger opportunities from clients.

PO Financing doesn’t need A-1 credit standing from loan applicants

Acquiring a PO financing is a great option for companies that have average credit scores. PO financing companies won’t require you to have an excellent credit. Instead, they’re more concerned about your client’s creditworthiness because that’s where they’ll be getting back their money.

Don’t be afraid to take that opportunity for your business. Apply for PO financing to make the most of your operations.

Effective Management of Restaurant Finances

a cashier at a restaurantMaintaining a successful restaurant business requires ongoing investment, and getting the appropriate lender to partner with you is essential to keep your restaurant in top shape. What most restaurateurs don’t understand is that after opening your doors, you still need to be financially prepared to keep them open.

Over 60% of restaurants close within their first two years of opening because of financial missteps. It is essential to manage your finances efficiently making sure that you have a sufficient ROI. ARF Financial recommends a few tips you can use to manage your restaurant financing efficiently.

Understand Your Cash Flow

The money you earn and the amount you spend make up your cash flow. Proper cash flow is one of the essentials of any successful business venture. You should adequately budget your expenses including loan repayment, mortgage or rent, food orders and payroll. You should monitor your cash flow closely so you are not spending too much on certain things. Don’t take goods from your suppliers for more than ten days on credit. This helps in preventing you from using more cash than you should.

Control Your Payroll

Your restaurant’s payroll is another crucial area that requires vigilance. Ensure you have just enough staff for an outstanding customer service experience. Overstaffing will eat into your profits while understaffing will tire your workers and affect the service they offer your clients.

Reduce Your Running Costs Daily

There are many simple ways you can minimize the daily operating costs in your restaurant business. Consider changing to energy-efficient appliances and low flow taps. Regularly update your menu and keep your inventory low. You can remove items which do not sell to lower your inventory. These small measures will save significant operating costs for your business.

You can also track your food and beverage sales daily using a business review. It will help evaluate your customer counts and sales trends and assist you in planning for future sales. With the right financial management skills, you will reap handsome returns from your business.

The Different Types of Mortgage Rates

applying for mortgageDifferent people have diverse needs. Since mortgages are designed to meet people’s needs, they are packaged differently, each trying to meet various needs. This suggests that mortgage rates are not standard.

If you consult with a mortgage lender in Portland, you will know that borrowers with high credit scores often get lower rates. Depending on the type of loan you want, mortgage rates will vary.

Conventional mortgage rates

Mortgages by either Freddie Mac or Fannie Mae are referred to as traditional mortgages. Their securities control the prices so that the Fannie Mae rates will depend on their bonds, for instance. The most common program here is the 30-year fixed-rate in which home buyers make a 20% down payment. Bundled with the Freddie Mac and the Fannie Mae are loans like HARP refinance, Delayed Financing, and HomeReady loan.

FHA interest rates

These are rates for Federal Housing Administration-based insurance. Available all over the U.S., these loans are most preferred by home buyers who want a low down payment. The FHA requires just 3.5% as down payment. The rates are determined by the GNMA (Government National Mortgage Association) bonds. When these rates go up, the FHA loan rates drop.

VA interest rates

Also controlled by the GNMA mortgage-backed bonds, these rates tend to work alongside the FHA rates although they are often lower. When the Department of Veterans Affairs guarantees a loan, the recipients use these standards. U.S. veterans get 100% financing without the need for mortgage insurance.

The government also controls USDA interest rates, which are for borrowers in the suburban and rural areas all over the country. They are guaranteed by the government, which allows you to enjoy a rates discount. Whatever the case though, mortgage rates will be unpredictable. However, if you know them, you at least stand a better chance to get the lowest rates possible.

Cash Flow Problems? It Could Be Your Employees

Cash FlowCash flow – it is always a business’s sticky situation. Many things can cause it to disappear very quickly. One of these is your employees.

How can employees drain your business financially? Here are two ways.

Employee Theft

Many employees steal. In fact, more than 70 percent of them do it. They are also doing it habitually. In a 2017 survey by the National Retail Federation, the inventory shrink rate went up. About 36 percent of it was due to shoplifting while 30 percent was because of employee theft.

The average cost per employee theft was almost $2,000.

Solution: Implement penalties or punishments against those who steal. Since employees are more likely to steal a lot of money through manipulating the accounting books, businesses should invest in online bookkeeping app or software to establish control, accountability, and automation.

Employee Turnover

Businesses lose employees for a wide variety of reasons. Some of them leave due to better work opportunities. Others you have to terminate because of poor conduct or work ethics. Either way, you are bound to lose money.

In 2012, the Center for American Progress published a paper concerning the high cost of employee turnover, especially for high-skilled work. It can be as much as 213 percent the annual salary for the position. Overall, it can be between 10 and 30 percent.

Meanwhile, a bad hire could cost the business around 30 percent of the employee’s earnings for the first year. The spending usually goes two things: the re-hiring process and retraining. However, a high employee turnover rate can also affect productivity, which also translates to more losses.

Solution: Set up an employee retention program. Constantly measure the turnover rate and, most of all, know the reasons. This way, you have better knowledge on how to manage the problem.

There is no foolproof plan to avoid these two employee-related issues, but you can minimize them from happening. Most of all, you can learn some ways to protect your cash flow as much as possible.