Accredited online payday loans

A loan pre-approval is an agreement in principle by a particular lender to lend a specified amount to a particular borrower on exact terms and conditions. In fact, a loan pre-approval is a preliminary stage prior to the lender's final approval and signing of the loan agreement.

A personal unsecured loan is a personal loan issued by a lender without any collateral from the borrower's side. Of course, unsecured loans are accompanied by an increased risk of the borrower's default, so the interest rate is much higher and the maximum loan amount is much lower than for secured loans.

Loan origination fee is an upfront fee associated with opening an account with a bank, broker, or other processing entity in connection with obtaining a loan. It is usually a fixed amount, but sometimes the fee is spread over the term of the loan or integrated into the interest rate. It is worth adding that in some countries, loan fees are prohibited at the state level.

Because FHA (Federal Housing Administration) loans are designed to help low- and moderate-income consumers, they have a lower down payment compared to other types of loans. More specifically, the down payment is as low as 3.5% of the loan amount.

A direct loan is a form of low-interest student credit administered by the Department of Education. A student may have more than one direct loan at a time. In addition, direct loans are divided into subsidized and unsubsidized loans. Under subsidized loans, the borrower is partially exempt from paying the interest rate.

A loan to value ratio is an indicator determined by dividing a loan amount by the value of the assets or property for the purchase of which the loan is taken. In simple terms, a loan to value ratio (LTV) shows what share in the cost of the property to be purchased on credit represents the loan. LTV exceeding 80% is considered to be one that is associated with higher risks, so lenders usually force the borrower to insure such a loan.

An FHA loan is a Federal Housing Administration guaranteed low down payment mortgage loan that allows you to purchase your first home. FHA loans help families become homeowners by lowering the cost of financing and reducing the size of the down payment that makes it difficult to purchase a house. According to the Mortgage Reports website, approximately 20 percent of eligible buyers apply for and receive an FHA loan due to moderate credit history and income requirements.

A finance charge on a loan is the sum of all interest and other charges and costs, including one-time charges, that the borrower will pay over the life of the loan agreement, that is, from the time the loan is signed until the last payment is made and the loan is closed. Thus, a finance charge on a loan includes not only the interest rate, but also origination fees and insurance.

A micro lender is a type of lending institution that specializes in providing small ammounts of money. Since micro-lending is not accompanied by collaterals, the risks for the lender increase exponentially. Because of this, the interest rate on microloans is usually very high. In addition, the activity of micro lenders is strictly controlled by state authorities, especially in terms of collecting outstanding loans.

To be able to apply for an FHA (Federal Housing Administration) loan, you must meet some strict requirements. Specifically, your FICO (Fair Isaac Corporation) score must come within 500 to 579 with 10 percent down or 580 and higher with 3,5 percent down. Also you should demonstrate verifiable history of employment for previous 2 years.

There are several classifications of loans, so let's consider the most common one. According to it, there are three loan categories: bank, commercial and state. In its turn, bank loans are divided into personal, mortgage, loan on overdraft, factoring, forfeiting and intrabank loans. Commercial loans may be of the following types: signature, trade and advance. Finally, the state category is subdivided into state loan, subventions, grants, transfers and state tax loan.

A peer-to-peer lending is a way of lending money to unrelated individuals or 'peers' without involving a traditional financial intermediary such as a bank or other financial organization. Loans are provided online on the websites of special lending institutions through a variety of lending platforms and credit check tools.

The main difference is that with a conventional loan the borrower is required to pay mortgage insurance only if the down payment is less than 20%, and with FHA (Federal Housing Administration) mortgage insurance is paid regardless of the size of the down payment. There is also a difference in the maximum loan amount.