Category Archives: Auto Loans
Are Banks funding Apartment Loans, ReFinancing and Commercial MultiFamily Construction Projects?
A common question being asked in todays financial climate, “Are apartment financing, MultiFamily property refinancing or apartment construction loans still available?” The answer to this question is a resounding YES. I continue see loans funded for apartment purchases, apartment refinances and construction lending. This is awfully good news in a time of a protracted credit crunch; a credit squeeze which has now gone global in its scope.
A source close to my company, one with ties to the top counsels of Fannie Mae and Freddie Mac, recently confided that Fannie and Freddie have been making money ONLY in the Apartment and Mobile Home Lending sectors. The upshot is this: These two venerable institutions of probity are determined to increase liquidity and strengthen apartment lending programs. The Fed needs to hang its hat on something, so why not strengthen an already existing stable lending platform to promote future growth in an industry already doing well: Apartments.
This protracted credit squeeze began as a virus. This virus started with the housing industry and contaminated the commercial real estate market along with just about every stock, financial instrument, business man, woman or line of credit in the country. Apartments have been the least impacted the credit crunch, but sales volume has still registered sizeable decline.
What a mess it has become. The chill in the credit markets began in October 2006. By October of 2007, this chill had become a deep freeze.
To understand the steep decline in the commercial real estate industry, one need only look at the numbers: Total commercial sales volume for October 2008 was barely one-quarter of its October 2007 level and just over 20% of the levels it achieved in 2006. Now that is a drop!
The aggregate deal volume and sales volumes for commercial real estate as a whole is down 75%, October 2007 to 2008.
For apartments, the fall off in deal volume has been sharp and steady: The number of properties trading hands has fallen 60% from October 2006 to October 2007 and has fallen another 75% this past 12 months.
There are several explanations for this but perhaps the number one reason is price risk, as measured between the spread of cap rates and the 10-Year Treasuries. In the apartment sector, this spread has more than tripled, (not Good) to a spread of 263 bps from their narrowest point in July of 2006, when it was 81 bps.
Between 2000 and 2004, the total renter households declined by 1.9 million as home ownership increase from 66.9 percent to 69 percent.
In 2005 this house-hold, rental-living trend began to reverse itself. Since the beginning of 2007,the home ownership rate has fallen by 110 basis points, resulting in 1.5 million additional renter households. This reversal is most pronounced in the younger age segment but it cuts across all age lines. The trend is up for rental-living-units.
In the end, Apartments are holding up well. Financing IS available and more people than ever are in need of rental housing.
Student Loans For Bad Credit Scores
Any private loan company or alternative student loan is going to require a credit check before they approve a student loan or set an interest rate. Since most students have no credit, which can be just as difficult to deal with as bad credit, finding student loans for bad credit scores through private lenders can be difficult. To avoid this problem, most student financial advisors and counselors recommend avoiding applying for private student loans for bad credit ratings, instead try finding an alternative loan that doesn’t pull your credit report.
Some of the best funding options for people looking for student loans for bad credit scores are scholarships and grants. These programs may be set up by schools, private businesses, organizations, churches or non-profit organizations and can be offered locally, by state or even nationally and internationally. Go online and do some searching, you may have to use a variety of search terms such as:
School grant applications
Private grants
Scholarship programs
Bursaries
Study grants
Another options to student loans for bad credit risk individuals is to consider looking into a field of study where there is a recognized shortage of new professionals. A good example of this is nursing or education where there is a chronic shortage of new graduates to fill already vacant employment spots. Often the professional organizations or the employment sources such as school districts and hospitals will subsidize or pay students to complete their education in return for a few guaranteed years of work. Not only does this assure you that your tuition will be paid but it also provides you the assurance of work immediately upon course completion.
Federal government student loans for bad credit scores have long been the most preferred option. The federal programs do not pull credit reports in determining eligibility, amounts or rates of loans. The problem is that these loans are often not enough to fully pay for education, so some sort of supplemental funding source is required. Federal student loans for bad credit are still an important consideration and should be the first application that a student or their parents complete after they have obtained any and all applicable scholarships and grants.
The worst type of student loans for bad credit are the very high interest, high penalty and fee type of loans that many lenders advertise as a “no credit check” type loan. These loans are often sold immediately, resulting in a complete change in terms for many students, often becoming virtually impossible to pay back due to the high interest rates and fees. Always check any loans very carefully and only work with well established student loan companies and services.
For more information, visit Student Loan Solution.