CrisKnowsLending.com Blog

If you were looking and waiting for a great loan deal, now is the time to act.  HUD is currently carrying an excess of inventory and has launched some agressive programs through FHA (Federal Housing Administration) to liquidate it.  If you are purchasing a primary residence and choose a HUD foreclosed home, you can gain 100% financing with only $100 dollards out of pocket!  The program allows a seller or interested party to contribute 3% towards your closing costs as well, which can mean you can literally walk away from the transaction with only $100 dollars total out of pocket.  Most importantly, this is a government backed loan and is offered at great rates.  Coupled with the current rate drops you have likely noticed on the news, you can gain 100% financing at rates matching 40yr lows!  Its a win/win for everyone and was "blog worthy" in this tough market.

If I can be of assistance, please feel free to contact me at anytime!

This is a question I get asked at least once a week. The answer is a fairly simple one, that I learned in college during a Money & Banking class. This simple concept applies to all investing stratagies: "Rates are based on Risk" The more risky an investment, the more the investor (in this case, the bank) will expect in return.

First, think of this from your own point of view. You have two friends who both want to borrow $100 dollars from you. One of your friends is very reliable and has a good reputation of smart financial decisions. However, your second friend is in financial trouble and has a history of slow payments with creditors. Emotional decision making aside, you would probably be more reluctant to lend to your second friend.

Now, think of this from a bank's point of view. If a customer plans to make a home purchase and has 10% to spend as downpayment, as well as good credit, they are likely to receive preferred financing rates. The same customer, with no downpayment, is going to receive a higher interest rate from a lender. Basically, the individual who put 10% down has more to lose if they walk away from the house, making them a lower risk investment.

Also, disclosure comes into play in the rate game. If one customer can verify strong job history and income and another customer cannot or will not disclose these items, they can expect to receive a higher interest rate for their financing. The more you disclose, the less risk your overall profile represents. There are tons of various examples, but the base idea always applies: Rates are based on Risk.

Therefore, when you are ready to move forward with a home loan, try to do what you can to reduce your overall risk profile. These simple steps can mean thousands of dollars to you and your family!