An investment property mortgage is a loan for non-owner occupied property. There are two main classifications of investment property mortgages. These classifications include: commercial and residential. A commercial property mortgage is for a dwelling that contains 5 or more units and/or is zoned as commercial. A residential investment mortgage is for a dwelling that is one to four units and is zoned residential. Commercial and residential mortgages are two completely different loan types and have significantly different qualification standards. The following is a basic description of each mortgage type.Residential Property Investment LoansResidential property investment mortgages have similar qualification guidelines as standard owner-occupied mortgages. Although, they do have higher down payment and credit score requirements. Below is a summary of the general guidelines for residential investment mortgages.• Credit Score Requirement – The minimum credit score requirement is typically 680 or above for investment mortgages.• Debt to Income Ratio – Typically, the debt ratio limit for an investment mortgage is 40% of the borrower’s verifiable income. Besides W2 income, the borrower’s last 2 years tax returns will be needed to calculate the income that can be used from other rental properties or other sources of income.• Down Payment – Investment property mortgages require at least 15% down, but the down payment requirement increases with lower credit scores and the greater the number of units in the property.• Income – Lenders typically will only use rental income if the borrower has a two-year history of owning rental properties. This is usually documented via the tax returns and schedules.Commercial Property Investment LoansCommercial loans typically have higher rates, greater fees, and shorter terms than residential mortgage. The two most important factors for lenders on this loan type include: a positive cash-flow for the property, and the borrower’s past commercial property management experience. Below is a summary of the general guidelines for residential investment mortgages.• Credit Scores Requirement – The minimum credit score requirement is typically 720 to 740 for a commercial loan.• Down Payment – The minimum down payment for a commercial mortgage is typically 30% or greater. When refinancing, the maximum equity position is usually 70% of the appraised value of the property.• Debt Service Coverage – This is a ratio used by lenders to calculate the property’s ability to generate cash flow. It is a calculation comparing the net operating income minus the mortgage payment and the other debt payments.Other funding sources include: hard money lenders and private loans. Hard money loans are short-term loans from private investors. Private lenders typically use the equity position in the property as the determining factor whether they will approve and fund the loan. There are usually excessive closing costs and fees (points) charged on this type of loan. Private loans are loans that a person would receive from their family or friends. The terms may or may not be similar to hard money loans. Both hard money and private lenders typically only put a lien on the property and do not report payments on the borrower’s credit report.
Funeral homes, assisted living facilities, campgrounds and other special purpose properties represent one of the most difficult commercial loan situations which will be confronted by a business owner. Unique properties are not easily understood by traditional lenders, so the most common solution involves finding a non-traditional lender for funeral home financing as well as commercial financing for other special purpose properties. Such non-traditional lenders will be appropriate for purchase situations as well as refinancing and new construction.KEY REASONS FOR DIFFICULTY IN ARRANGING COMMERCIAL FINANCING FOR SPECIAL PURPOSE PROPERTIES(1) By definition special purpose properties are not similar to other commercial properties. This makes many lenders uncomfortable due to the likely difficulty of finding another owner for a unique commercial property should it be necessary due to a loan default.(2) For funeral homes and many other special purpose commercial properties, most of the business value is represented by non-real estate assets. With traditional commercial lenders that focus on commercial real estate loans, it is almost impossible to get a loan based on the real estate value and the business value. For example, it is not uncommon to have a situation in which the real estate for a funeral home is valued at less than one million dollars while the overall business value is in excess of three million dollars.(3) Because commercial financing is so difficult to arrange for special purpose properties such as funeral homes, assisted living facilities and campgrounds, sellers of such properties are generally willing to provide substantial seller financing to assist the buyer in acquiring the business. However, many traditional lenders do not recognize or accept seller financing as a means of reducing down payment requirements for special purpose properties.(4) Many lenders simply do not understand the business complexities associated with a special purpose property. As a result, it is not uncommon for these lenders to attach onerous and expensive requirements such as business plans and environmental reviews. In most cases such lenders do not even want to make the business loan but will use undesirable loan requirements as a means of appearing to approve a loan when in fact they have disapproved the loan by adding commercial loan terms that they do not expect a commercial borrower to accept.COMMERCIAL LOAN SOLUTIONS FOR SPECIAL PURPOSE PROPERTIES For a business borrower facing the situation described above, the highest priority should be to locate a non-traditional commercial lender that engages in the following commercial loan practices:(1) Openly welcomes special purpose properties and routinely finances such properties.(2) Provides commercial financing for both the business and real estate.(3) Accepts substantial seller financing.(4) Does not add special requirements to the business loan for special purpose commercial properties.(5) Has a history of making loans for the specific type of property under consideration.(6) Can accommodate both small and large commercial loans for special purpose commercial properties (for example, loans as small as $100,000 and loans as large as $5 million or higher).Copyright 2005-2006 AEX Commercial Financing Group, LLC. All Rights Reserved.
Over the last six years, in the United States, health insurance rates have almost doubled. The good news though is that there are ways by which individuals can lower their health premiums.Firstly, it is important for individuals to research and shop for various rates. An agent can help individuals to search the rates, which suit the budget of the buyer.The other method by which individuals can lower their health insurance rates is by quitting smoking. Firms always charge more to smokers, as they are more prone to health problems and hence costs.In addition, if individuals maintain good health or improve on their health, they can also cut down on their health insurance rates. With the help of few tips and precautions, individuals can get good health rates that can save them their hard earned money.Important Factors:Age is the most important factor, which affects health insurance rates. Young people pay a lower premium on their health plans.One more factor that affects the health insurance rate is gender. Women pay lower health premiums as compared to men. The reason is women are less likely to suffer from diseases such as high blood pressure, heart attacks, and other illness.Some insurance companies in the U.S. offer discounts to individuals, if they pay their insurance premiums on time, since they are viewed as better customers.Health insurance rates vary as per the variance in medical expense in different areas. The medical costs vary due to differences in medical practice, the degree of specialization in different fields of medicine, and the level of competition in that area. Most plans vary in their rates depending on the zip code. The address of the employer’s business determines the rate.Some policies pay only limited amount of health expenses. The insurer has to pay the remaining amount. Some plans have maximum lifetime coverage. Here, the policy will pay individuals until the amount reaches benefit’s maximum. The remaining amount has to be paid by the policyholder.Conclusion:Health insurance is an agreement between the company that provides the insurance and the insurer. It is possible to renew the contract annually or monthly.HMOs use the term health plan, whereas insurance companies use the term health insurance. A health plan can also be a medical care arrangement offered by health organization. These plans are similar to pre-paid dental plans. HMO stands for Health Maintenance Organization. It is costlier than a PPO. The major disadvantage of HMO is that, it gives limited choice in doctors that too present in the network provided by the policy.PPO stands for Preferred provider Organization. The only difference between a HMO and PPO is the possibility to seek medical attention from outside the network.POS stands for Point of Service. It has the features of both PPO and HMO. POS is considered as the best health insurance, although not the cheapest.According to a recent study, health insurance rates are on the rise due to increased demand and new treatments. Advancements in medical technology are also responsible for increase in health insurance rates. Factors related to lifestyle also contribute to increase in insurance prices.With all this in mind the only way to be certain if you are paying the lowest rates is to get a quote online for free. The good news is that you can do just that by vising one of the sites listed below.
Automotive training schools give students the tools they need to successfully work in auto career jobs they will truly enjoy. Travis DeCesaro is a recent graduate of an auto mechanic training program in Colorado Springs and has been kind enough to share his story.Mr. DeCesaro graduated from an auto mechanic training program in 2010 and is currently working at an auto center in Pueblo Colorado. He has been working with them for over a year now.Q: What are some of your favorite things about your new auto career job?A: I would say my favorite part of my job is working with my hands as well as my head. Sometimes I have to use a lot of problem solving abilities. Also, I’m not flipping hamburgers!Q: How do you like the auto mechanic career field so far?A: I enjoy it very much. It can range from boring sometimes to challenging and rewarding at other times.Q: What are your day-to-day auto career job duties and responsibilities?A: Job duty and responsibilities are to me summed up into two words, “Quality control”. My responsibilities are to make sure the customer doesn’t leave with an inferior repair, and that they are satisfied with the service they’ve received.Q: How do you like the hours at your new job?A: As of right now the hours are good. We’ve been so slammed we have had to reschedule a lot of customers.Q: Do you feel fulfilled in your new career as an auto mechanic?A: I would say that I am fulfilled in my career. I mean, there is always room for more money. But I work with a great team of guys; we have chemistry. If there is ever any problem I have that I can’t figure out, which isn’t that often, we have no problem putting our heads together to get the job done.Q: In what ways did your auto mechanic training prepare you for your new auto career job?A: Well, aside from (providing me with) the tools I needed to get started, the program helped boost my confidence by teaching me hands-on (skills). Don’t get me wrong, I’ve done my share of book work, but not as much as I thought there was going to be. The best way to learn something for me is to be shown, and they did show me a lot.Q. Would you refer friends to the automotive training school you attended?A: Of course I would recommend my school to a friend.Q. What advice would you give to current or potential students of auto mechanic training programs about finding and sustaining auto career jobs in the real world?A: Experience matters in this industry. Aside from just going to school and learning about cars, you need to get out there and put your knowledge to the test. Try and document what you’ve repaired and put it in your portfolio. Employers want to know that you’re capable of doing the work. Pay attention to your instructors. Ask questions, even if you think it might be a dumb one. You’ll never know if you don’t ask. Really, you only get out what you put in!SummaryMaybe you’ve been on the fence about contacting an automotive training school about auto mechanic training. Now that you’ve heard first hand from an actual student-turned-auto mechanic, you can make a more educated and personal decision on the type of career training that is the best fit for you.