100% Financing Loans Explained

Buying a home is a primary goal for tons of people. However, the financial requirements for becoming a homeowner are one of the main things that prevent many people from pursuing their homeownership dreams. Coming up with a down payment on a home is simply too much to ask for lots of people. However, there is a loan option out there which allows people to purchase a home without putting down the money for a down payment. This loan type is known as a 100% financing loan. With a 100% financing loan, buyers are financing the entire purchase price of the home. If you are interested in a 100% financing loan, keep reading on below or contact All American Financial Services to learn more.

You might be wondering why a company would offer a 100% financing loan. Banks and loan companies want to get paid back, which is why they often require a down payment. Logically, if someone puts down a larger down payment, they are less likely to default on the loan. However, there are government sponsored programs out there that insure the lender and allow people to purchase their home without putting down the 20% down payment that is normally required.

The two main ways to obtain a 100% financing loan to purchase a home are with VA home loans and section 502 rural housing loans. These are government sponsored programs that help people get into homes if they don’t have enough money to put down the down payment on a property. Which one you go with will depend on your eligibility. The VA home loan is intended for people that have either 90 days of military service or that served in the military for at least two years. VA loans tend to have very low rates, which is great news for veterans that are looking to start a family in a new home. They are often the most affordable loans available when you compare them to the other options on the market.

If you are interested in applying for a 100% financing loan, keep in mind that it’s typically the buyer’s responsibility to come up with the closing costs. This can be an additional cost that comes as a surprise to 100% financing loan recipients. It’s important to look into all of your options for dealing with closing costs, as you can possibly receive a closing credit cost from the seller to take care of this additional expense.

We hope this article has provided you with some valuable insight into the world of 100% financing loans. Just because you can’t afford the down payment on a home doesn’t mean you can’t become a homeowner. Contact All American Financial Services today to hear more about our loan options and receive help with applying for financing. We can let you know what loans you might be qualified with and answer any question you have about our financing options.

Advantages of Construction Loans

If you are an aspiring homeowner looking to build your house from the ground up, you will need to obtain financing. There are tons of options out there for getting the funding you need to purchase or construct your own real estate. Finding the best option for you is easy with All American Financial Services. We offer construction loans so that you can construct the home of your dreams. There are several advantages to pursuing a construction loan. It’s an option that can really make a difference. Keep reading on to learn some of the major advantages associated with pursuing a construction loan.

Low or No Initial Payments

A great feature of obtaining a construction loan is that they are normally interest-only during the time period when your home is being constructed. That can be a big help from a financial perspective because you won’t have to spend a ton of money up front while the home is being built. Sometimes, construction loans don’t even require any interest payments until after the home has been fully constructed. After the home is constructed, your payment of the principal on the loan usually begins.

More Control

With a construction loan, you are gaining the ability to control every aspect of the construction of your home. You can personalize every aspect of your home if you’d like and have the control to make changes as things go along. A construction loan provides you with a lot of control during the construction of your home, which is ideal for people who are seeking flexibility. The loan typically will cover the cost of the work and the materials needed to construct your home from the ground up.

Two Loan Options

Construction loans are typically offered in two different types, which means you have more flexibility. A construction-to-permanent loan is designed to provide you with the capital needed to cover the construction of the home. After the construction is finished, the loan becomes a permanent mortgage. A construction-only loan, you will take out two loans. The first loan will be short term and only used to cover the construction of the home. After you move in, you will then take out a mortgage loan to pay off the construction costs. You will pay two sets of fees with this option, but you won’t need to put down as big of a down-payment.

Construction loans can provide you with the capital needed to construct the home of your dreams from the ground up. They offer flexibility and control for future homeowners that aren’t sold on traditional mortgages. If you are interested in hearing more about construction loans or would like to apply, reach out to All American Financial Services today. We can provide you with more information on the construction loan process and let you know what you need to do to apply for a construction loan with us.

Why Your Business Can Benefit from a Commercial Loan

Commercial business loans are a common way for businesses to obtain the capital they need to grow. They provide a great opportunity for businesses to make property purchases, improve cash flow, and even expand to new locations. People usually start their businesses with their own personal savings or by taking out a loan, which is why commercial loans are an intriguing option. It’s always a big decision to receive a commercial loan, which is why it’s important to do your homework and learn as much as you can about commercial loans prior to pursuing one. There are plenty of benefits associated with getting a commercial loan, let’s take a look at some of them below.

Commercial Loans Have Lower Interest Rates

One of the key incentives of pursuing a commercial loan if you are a business owner is that commercial loans tend to have lower interest rates than other loan types. That means that business owners can get access to the funds and capital they need without spending a lot more money on their overhead costs. Any business that is looking to expand or purchase property should look into a commercial loan.

Retain Ownership of the Company

Another huge benefit of a commercial loan has to do with ownership. If you go for venture capital funding, they will usually ask for a fraction of the company in exchange for the funding. This can lead to issues later on down the road when it’s time to make big decisions since the venture capitalist will want their voice heard. With a commercial loan, you will retain full ownership of the company which allows you to maintain your decision making.

Long Term Payment Plan

The great thing about commercial loans is that they are typically issued for terms of 3 to 10 years in length. That means your business can pay back the loan at a slower pace. You can focus on growing revenues and increasing profits while paying back the loan at your own pace. A business doesn’t become successful overnight, which is why commercial loans are structured the way that they are.

Can Obtain Large Sums

If you really want to grow your business into a powerhouse, you will need sufficient capital. Commercial loans allow business owners to obtain large sums of money so that they can grow their business to entirely new levels. You can even cover the bulk of the startup costs of a business in a single loan.

Commercial loans are a great option for business owners that are looking to take the next step. Keep in mind that the application process requires extensive financial reporting of the business and excellent business credit. If you are interested in a commercial loan, reach out to All American Financial Services today. We can walk you through the application process so that you can obtain the funds you need for real estate purchases, growth, or any other business need.