A VA loan represents a mortgage loan guaranteed by the Department of Veterans Affairs (VA) of the United States. The program is for veterans, various military personnel currently doing military service in the army, reservists and spouses (provided they do not remarry). It can be used to buy single family houses, condominiums and apartment buildings, as well as for building new houses. You can apply for a VA loan multiple times, as long as you meet the above requirements.

A PPP abbreviation means Paycheck Protection Program which is a governmental initiative to support business. To participate in the program, you must represent a small business or a non-profit organization with up to 500 employees. Almost forgot: You have to prove that getting a loan is really necessary for your company.

Before taking out a consumer loan, it is worth calculating all the interest and overpayments in advance, so that you understand the acceptability of the loan offer before applying. This way you will know in advance how much you will need to pay each month to repay the loan. Loan payments are most often calculated using two payment schemes: annuity and differential. Which of them is applied in a particular proposal is specified in the loan agreement. Knowing the formula of a particular scheme, you can calculate the amount of the monthly payment and know in advance its full amount with all the overpayments. In rare cases, a bank offers to choose the scheme.

In general, one of the key features of personal loans is that lenders rarely require collateral, because usually it is not a very large amount of money. This, in fact, explains such a high popularity of this type of credit. However, if collateral is still required, it can be any movable or immovable property of the borrower, as well as monetary assets in bank accounts.

Gradual repayment of the loan through regular payments of principal and accrued interest is the amortization of the debt. Specific repayment terms are determined according to the concluded loan agreement and are fixed in the payment schedule. The payments are broken down for the entire term of the loan agreement and consist of the 'principal' (original amount of the loan) and interest. The amount of the amortization charges in this case shows the total amount of repayment at the moment.

In the case of FHA (Federal Housing Administration) loans the minimum acceptable credit score is directly related to the amount of the down payment. If we are talking about a minimum down payment of 3.5% of the property value, your credit score must be 580 or higher. However, if you can make a 10% down payment, the credit score requirement goes down to 500.

There are 2 ways to get rid of PMI (private mortgage insurance) on your FHA (Federal Housing Administration) loan. First, you can address your creditor with this problem if your balance is at least 78% of the original buying price and you've already payed PMI for five years. Secondly, you can just refinance your FHA loan into conventional loan.

Personal loan is a loan granted directly to individuals for the purchase of consumer goods. Such loans are taken not only for long-term purchases of expensive goods (cars, furniture), but also for everyday products, such as cell home appliances or even food. It comes in the form of either the sale of goods with deferred payment or a bank loan for consumer purposes, including through credit cards. It charges a fairly high interest rate. Usually, personal loans are accompanied by additional fees and charges, which increase the real cost of credit and form the so-called hidden interest rate. This is why choosing a loan from one bank or another based on the advertised interest rate on the loan may not always be the best choice. In this case you should be guided by the calculation of the full cost of credit.

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.

A loan margin is defined as the difference between the appraised value of a product or service and the amount of the loan issued by the bank for the purchase of that product or service. These two figures are fixed in the loan agreement at the time a borrower applies for a loan.

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.