The three major sources of credit information about consumers are Equifax, Trans Union, and Experian. Lenders will obtain your credit record from all three of these credit bureaus. The lender will evaluate this information to determine whether or not you are likely to repay the mortgage loan in a timely fashion.

How does the mortgage lender evaluate the information in the

credit report? One way is through credit scoring.

What is a credit score? A credit bureau score, is one of many pieces of information that the lender will use when evaluating a mortgage loan application. A credit score is a summary of a borrower’s credit report and a numerical measurement that reflects a borrower’s management of credit. Your credit score is based on the records compiled by credit bureaus and includes the information reported each month by your creditors, such as the amount of existing credit you have and your payment history. A credit score considers all of the information in the credit report and converts this information into a number that helps the lender determine the likelihood that you will repay your loan on time. 00 is the lowest possible score, 900 is the highest. 680 to 700 is considered excellent, and less than 620 is typically considered sub-rime, though if there are errors on the report, this would be considered.

Credit scoring is an objective process, based only on the infor¬mation in your credit report. Factors such as age, race, religion, gender, national origin, marital status, your income, employment, and where you live are not considered in determining your credit score.

Is credit scoring new? Banks and other lenders have used credit scoring for over 30 years for credit cards and other types of consumer loans, such as automobile and home equity loans. Now, credit scoring is being used in mortgage lending.

Why is credit scores used? Lenders want to extend credit to people who will pay them back, and pay them back on time. They also want to be objective in making lending decisions. In order to approve your application for a mortgage loan, your lender must evaluate and understand many different risk factors, including your ability to repay the debt as well as how you have managed credit in the past. Because borrowers’ credit histories can range from being very simple to being very complex, it is sometimes difficult to determine whether a given credit history is acceptable or unacceptable, or whether certain information represents a strength or a weakness.

By using credit scoring, a lender can quickly and objectively evaluate your credit history in a consistent manner, and determine the likeli¬hood that you will repay the loan as agreed. The use of credit scores not only improves the accuracy of the analysis of your credit history, but does so in a way that enhances the efficiency and consistency of the underwriting process.

How does a lender get my credit score? When you apply for your mortgage loan, you will give your lender permission to check your credit history with the various credit bureaus. More than likely, the lender will obtain your files from the major credit bureaus: Equifax, Trans Union, and Experian. In addi¬tion to obtaining a credit report, the lender will also request a credit score. Your score is calculated by the credit bureau — not your lender — and is based only on the information contained in each of the credit bureau’s files.

Myself webmaster of www.castlemortgagegroup.com dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida Home Loans, refinance loans, constructions loans.

Being your own boss is certainly rewarding, but few people think about the extra work of preparing invoices and tax forms. Independent contractors need to be aware that being independent of the client company is a special tax situation, and they will need to file differently with Internal Revenue Service than they might have in the past.

What is an Independent Contractor?

Those who work regularly for the same clients or who only contract under one company might wonder if they are just an employee. Generally, independent contractors do not participate in the same programs and activities as the rest of the employees do and are not subject to the same restrictions. Those who are starting a job should define their obligations with the clients and make sure the client will be listing them as an independent contractor in tax forms. If the company pays the contractor more than $600 over the course of a tax year, they will be required to send him or her a 1099 form.

These lines start to blur when the contractor spends much of their time in the office or conferring with employees on the project. If the employer labels the contractor a common-law employee and sends them a W2 by mistake, the individual can file Form SS-8 to dispute the classification.

The IRS defines an independent contractor using the “20 Questions” test, which looks at a number of factors including the amount of control the hiring company has upon their work. According to them, an employer “has the right to control or direct only the result of the work and not what will be done and how it will be done or method of accomplishing the result.”

For tax purposes, however, an independent contractor is a business. Most will fall under the category of sole proprietorship. However if the contractor employs others or is incorporated, their status may change. Another option might be to run your business through an “umbrella company” or so-called “pass-through agency,” which can give the option of being either a W-2 or a 1099 for tax purposes, and this can be a great option to simplify the back-office administration that independent contracting requires. There are benefits to all of the tax business classifications, but business owners should do research on which one best fits their organization.

Self-Employment Tax

When someone who is an employee receives a W2, income and social security taxes are already taken out of their paycheck and sent to the IRS by the employer. Those who receive 1099 forms do not have any taxes removed from their wages by an employer. The self-employed individual must file their income and pay self-employment tax.

Any individual who makes more than $400 from freelancing or independent contracting work must file a 1040 Schedule C form with the rest of their taxes. This form will help the individual calculate how much tax they owe. The federal self-employment tax rate is 15.3% but it can vary depending on how much income the person has earned and their deductions. Deductions are business expenses that can be deducted from the gross income. See the IRS website for more information.

The calculated tax must be paid to the IRS. If the tax is likely to be more than $1000, see estimated tax payments below. If the tax is less than $1000, the business owner may pay the owed tax at the end of the year upon completing their tax return.

If the business is a sole proprietorship and the business owner does not have a social security number, they will need to file for an Individual Taxpayer Identification Number or ITIN in order to submit their taxes.

Estimated Tax Payments

Businesses that anticipate owing more than $1000 at the end of the tax year are required to make quarterly estimated tax payments. Using an estimation of their income for the year, the business completes worksheet 1040-ES and sends in one fourth of the amount on each deadline. Payments can be made electronically via credit card or automatic withdraw. The IRS still accepts check and money orders by mail as well.

The payment deadlines generally fall in April, June, September, and January, but can vary by tax year. If the business miscalculates their income, the end of year filing will be adjusted. Unpaid tax will be added, and those that overpaid will receive refunds.

State Tax

Most U. S. states have separate state income tax laws. Filing procedures and rates vary widely from state to state. Those who own a business should investigate their local tax code for more information.

Obligations of the Self-Employed

Independent contractors should keep excellent records to make the process of filing taxes easier. Receipts and invoices should be kept for reference, but also stored for use in case of a future audit or tax dispute.

Tax code is complicated and ever changing, so make sure to look up the new tax rules for each filing year. Those with complicated finances may want to hire a professional advisor to check or prepare the tax forms as they can prevent costly mistakes.

Florida FHA loan Information from an FHA lender

An FHA loan is a federal insured mortgage loan that is made by a private Florida mortgage lender that is  insured by the Federal Housing Administration. The FHA loans are only provided by federally qualified lenders.

FHA loans have historically allowed lower income Floridians to borrow money for the purchase of a home that they would not otherwise be able to afford. The FHA mortgage program originated during the Great Depression of the 1930s to stimulate the economy and get people buying homes again when the rates of foreclosures and defaults rose sharply. The FHA loan program provides lenders with sufficient insurance to protect against loss in a case of default. Some FHA loan were subsidized by the government, but the goal was to make it self-supporting, based on insurance premiums paid by Florida borrowers.

Over time, private Florida mortgage insurance (PMI) companies came into play, and now FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for PMI.

On August 31, 2007, the FHA added a new refinancing program called FHA-Secure to help borrowers hurt by the 2007 subprime mortgage financial crisis.

The history of FHA loans

The National Housing Act of 1934 created FHA or  Federal Housing Administration which was established primarily to increase home construction, reduce unemployment, and operate various FHA loan insurance programs. FHA does not loans, nor does it plan or build houses. As in the Veterans Administration’s VA loan program, the Florida mortgage applicant must qualify for the loan though a private Florida lending institution. This financial organization then may ask if the borrower wants FHA insurance on the loan or may insist that the borrower apply for it. The federal government, through the Federal Housing Administration, investigates the applicant and, having decided that the risk is favorable, insures the lending institution against loss of principal in case the borrower fails to meet the terms and conditions of the mortgage. The borrower, who pays an insurance premium 1/2 percent on declining balances for the lender’s protection, receives two benefits: a careful appraisal by an FHA inspector and a lower interest rate on the mortgage than the lender might have offered without the protection.

For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3.5% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or visit www.FHAmortgagePrograms.com

For Florida first time home buyers and other borrowers, the FHA home loans can have key advantages:

Easy Qualification – The FHA loan insures Florida mortgage lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify than any other mortgage program..

Minimal Down payment Requirements – Florida FHA loans work with as little as 3.5% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your loan officer can point you to many Down payment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Miami, Jacksonville, Fort Lauderdale or any Florida city we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, FHA/HUD can allow the lender to place past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an Florida FHA loan.

Options for Manufactured Housing – Under certain conditions, you can even finance a Florida Mobile Home or manufactured home using a Florida FHA mortgage loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan for manufactured housing or just use our quick application to learn more!

FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

These are just seven of the many good reasons to apply for an FHA mortgage. Call 1-800-570-0448 to speak with a friendly Florida FHA loan specialist now!

FHA Home Loans for Purchasing a Florida Home

Although Florida FHA home loans require additional paperwork, the reality is that applying for an FHA mortgage loan in Florida is not much different from applying for conventional financing. In fact, for many Florida mortgage applicants learn that the small amount of extra time turns out to be an exceptional mortgage bargain because they save thousands of dollars over the life of their Florida Mortgage.

At 1st Continental Mortgage, we have been working with the FHA program for many years. We’re experts at assembling the proper paperwork and presenting your loan application to FHA approved lenders diligently and professionally. It’s one of the ways that we have earned our reputation for closing FHA home loans in Florida on-time.

You may be surprised at how flexible Florida sellers are in the current market and how many programs there are that provide Down payment assistance to applicants for FHA financing to purchase Florida homes, condos, and townhouses. The fact is, seller can pay up to 6% towards your closing costs. This means, no closing costs for you when negotiated during the purchase contract!

The FHA loan program offers excellent fixed rate options and never a prepayment penalty. If other Florida mortgage lenders are quoting you subprime rates, you owe it to yourself to make the call to compare the costs of getting an FHA home loan for your home purchase. Call 1-800-570-0448 to speak with an FHA loan expert before accepting any conventional mortgage quote as the best you can do!

History of FHA loans

Until the latter half of the 1960s, the Federal Housing Administration served mainly as an insuring agency for loans made by private lenders. However, in recent years this role has been expanded as the agency became the administrator of interest rate subsidy and rent supplement programs. Important subsidy programs such as the Civil Rights Act of 1968 were established by the United States Department of Housing and Urban Development.

In 1974 the Housing and Community Development Act was passed. Its provisions significantly altered federal involvement in a wide range of housing and community development activities. The new law made a variety of changes in FHA activities, although it did not involve (as had been proposed) a complete rewriting and consolidation of the National Housing Act. It did, however, include provisions relating to the lending and investment powers of federal savings and loan associations, the real estate lending authority of national banks, and the lending and depositary authority of federal credit unions.

Further changes occurred in the 1977 Housing and Community Development Act, which raised ceilings on single-family loan amounts for savings and loan association lending, federal agency purchases, FHA insurance, and security for Federal Home Loan Bank advances. In 1980 the Housing and Community Development Act was passed; it permitted negotiated interest rates on certain FHA loans and created a new FHA rental subsidy program for middle-income families.

On March 6, 2008, the Florida “FHA Forward” program was initiated. This is the part of the stimulus package that President Bush had in place to raise the loan limits for Florida FHA loans.

With the coming up of construction databases, the way information is accessed and shared has undergone a dramatic change. Now you do not have to be lucky or high up in the construction industry to receive information about the latest construction projects in your area/locality or even in your state or country. These databases have uptodate information about projects in the pre-bidding and bidding stages.

Sites which own these construction databases offer easy access of information about the bidding process. At the click of a mouse, you can find bid due dates, project description, contact information, and more, without having to build contacts or rely on insider information. The websites enable you to search bids by state, project type or keyword. Thus you can identify and manage bidding opportunities in a convenient and effective manner.

How do these websites work? They provide weekly bid notices and construction project reports.When you subscribe to their services, you receive online, real-time access to bid notices reports. Each report provides all the information you need to make an informed decision about a particular project. Through the weekly delivery of this data, construction managers, contractors and building product manufacturers can begin working on projects much sooner than they would otherwise.

The best of websites that provide such construction reports, provide convenient options for accessing information. This enables you to find leads over your competitors by bidding early, before others know about a lucrative project.

Besides, sites which maintain construction databases also equip one with market/geographical insight. They provide you with an overview of the markets such as retail and hotel markets, as well as states that a particular company is currently working in. Moreover, by providing you a list of companies that are similar to a certain company, they enable us to form a good idea about our competitors, which is particularly helpful when making construction project bids .

Finally, certain websites even put you in touch with the research staff who make the construction project report , if you have got a question on a specific project. You can also find contact information for the key decision makers in a certain project.

Also you need to keep in mind that through the project information theses sites offer, you’ll not only track projects, you can also develop contacts in the construction industry.