Artist tax – David Hemmings Bird Photography http://davidhemmingsbirdphotography.com/ Sun, 15 May 2022 20:05:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://davidhemmingsbirdphotography.com/wp-content/uploads/2021/06/icon-2021-06-25T155134.587.png Artist tax – David Hemmings Bird Photography http://davidhemmingsbirdphotography.com/ 32 32 When to Use Litigation Funding for Business Law Litigation https://davidhemmingsbirdphotography.com/when-to-use-litigation-funding-for-business-law-litigation/ Sun, 15 May 2022 20:05:08 +0000 https://davidhemmingsbirdphotography.com/when-to-use-litigation-funding-for-business-law-litigation/ A growing company supplies high-quality plastics to a manufacturer for use in packaging materials. Millions of dollars are at stake. But the large-scale international manufacturing company is not paying the bills and returning the plastics. The CEO of the plastics company plans to meet with a lawyer, but of a caliber ready to fight a […]]]>

A growing company supplies high-quality plastics to a manufacturer for use in packaging materials. Millions of dollars are at stake. But the large-scale international manufacturing company is not paying the bills and returning the plastics.

The CEO of the plastics company plans to meet with a lawyer, but of a caliber ready to fight a Goliath. After all, the international manufacturing company maintains a recognized law firm with teams of attorneys.

The business owner soon learns that reviewing the case may require a retainer of $250,000; superior legal representation may charge $1,000 per hour.

Large companies can prolong the litigation process, knowing that time is not on the side of small companies. Legal fees will continue to accumulate if the case takes years.

The CEO knows advancing legal claims will quickly drain his coffers as he tries to juggle day-to-day business and relationships with other, more responsible clients. It may need to start dipping into operating accounts and budgets to stay afloat.

The plastics business owner might consider litigation funding.

What is Commercial Litigation Funding?

Some attorneys who believe the merits of the case are sound, but know their clients’ track records are not, refer their commercial clients to moneylenders. However, clients find and make contact with most commercial litigation funders.

Commercial loans are not real loans, but non-recourse advances. These advances can be as small as $50,000 or $100,000 up to $20 million. A non-recourse advance means that clients receive a lump sum, but repayment of the advance depends on the case.

Commercial litigation funding helps companies with legitimate claims that would never see their way to court because they have been shut out of the legal system. There are so many businesses that don’t have access to the justice system simply because they don’t have the money to continue.

With litigation, even the smallest law firms can tackle complex business cases, expanding access to justice. This is especially relevant today as some large corporations use the courts and bankruptcy proceedings as protection against claims.

Some lawyers are unsure whether funders are getting involved in ongoing legal proceedings or settlement talks or interfering in the client-attorney relationship. Commercial litigation funders find good cases with strong arguments, then walk away. Commercial Dispute Funders are not involved in the settlement or any other ongoing aspect.

How the commercial litigation funding process works.

Each commercial litigation funding process and its outcome is exceptionally unique and assessed on its own merits – no two are the same. Loan applications are reviewed based on claims, damages incurred and expected settlement amount.

Commercial litigation firms tend to be more cautious and carefully review each case. If they think the deal isn’t right for them, they may be able to steer business clients and their legal team to a new source of funding.

Typically, the funder reviews the documents and engages in conversations with the clients and their attorney, then offers a term sheet outlining the rate and cost of the money. Conditions may depend on the risk level of the case, the value of the case and the likelihood of recovery. Typically, the number is expressed as a percentage per year or per semester and earns interest every six months. Many loans are capped at 3 years, after which interest ceases to accrue.

The speed of funding depends on the details of the deal. Simpler cases could see funding within 24 hours. In general, funders tend to investigate business cases closely, doing their due diligence. Commercial litigation funding could occur between 30 and 90 days after application, making speed essential.

After receiving the cash injection, clients can use the amount for case expenses or just keep their business afloat.

What types of business lawsuits can be funded?

Litigation funding includes matters relating to: breach of contract, international arbitration, international tort, oil and gas disputes, liquidations, breach of contract and anti-trust.

Funding lawsuits cover many sectors, including technology, trade and manufacturing, oil and gas, and the power industry, among others. Some lenders do not work with international cases.

Business lawsuits come to funders in one of a few ways. Sometimes companies contact litigation funders first and ask for guidance moving forward and recommendations from law firms. The best litigation funders develop good relationships with well-established and reputable law firms to provide excellent referrals. For example, commercial litigation firms that excel have good relationships with many of the top litigation firms in the United States.

While commercial litigation funders can expand access to justice, it is essential to understand the rates and terms of any funding agreement. With the right approach, business lawsuit funding can provide a cost-effective method of keeping a business afloat while securing justice.

© 2022 Copyright Tribeca Lawsuit LoansNational Law Review, Volume XII, Number 135

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Co-op Vs. Condo: Differences, Advantages and Disadvantages https://davidhemmingsbirdphotography.com/co-op-vs-condo-differences-advantages-and-disadvantages/ Sat, 14 May 2022 05:28:10 +0000 https://davidhemmingsbirdphotography.com/co-op-vs-condo-differences-advantages-and-disadvantages/ What is the difference between a condo and a co-op? The main difference between condos and co-ops comes down to who owns the property. If you live in a condominium, you own your individual unit. If you live in a co-op, you own shares in a corporation that owns the building. As a co-op owner, […]]]>

What is the difference between a condo and a co-op?

The main difference between condos and co-ops comes down to who owns the property. If you live in a condominium, you own your individual unit. If you live in a co-op, you own shares in a corporation that owns the building. As a co-op owner, you do not own the unit. Instead, you own the right to live in the building and be part of the community that runs it.

This difference in ownership can lead to further disparities between co-op and condominium living. Here are a few other ways these house types can differ:

Affordability

Co-ops are better suited to short-term residents, while condos are better suited to those looking for something longer term. Indeed, buying a condo is a form of real estate investment and each of your monthly payments will help you build capital over time.

Co-ops can have high down payments depending on where you are, ranging from 20% to 30% in popular cities. However, The Washington Post found that most co-ops tend to be cheaper than condos per square foot. Another trade-off is that co-ops tend to have lower closing costs than condos, since you won’t have to pay for things like title insurance.

At a glance, condominiums may appear to have cheaper monthly payments than co-ops. However, co-op payments are generally more expensive and cover things like utilities, building maintenance, and other costs that aren’t rolled into the monthly payment for a condo. Remember that with a co-op, you may be asked to help with the general upkeep of the building, including common areas or updates.

Governance

It’s common for condo dwellers to answer to a condo association, which, much like a homeowner’s association (HOA), creates and maintains community guidelines. Ultimately, however, the occupants of a condo have ownership of their unit, which gives them the freedoms that a typical homeowner has, such as the ability to renovate.

Co-op residents, on the other hand, only pay for the right to live in the building. Since co-ops are collectively owned, any changes a resident hopes to make will have to go through the shareholders for approval. Most co-ops also hire a management company or assemble a board of shareholders to make decisions and carry out day-to-day tasks. This includes collecting fees and managing common areas.

By nature, cooperative communities are usually tightly knit. While this is great for camaraderie, it can make the approval process to enter co-op daunting or time-consuming. Also, if you want to make any changes to your living space, you will need permission before doing so.

Approvals

If you’re looking for a community with lots to do, a condo is probably the best fit for you. Condos tend to offer residents a wider range of amenities. Here are some of the most common:

  • Pool access
  • Roof terrace or lounge area
  • Gym
  • Recreational sports fields and fields
  • Event space

This does not mean, however, that cooperatives do not bring anything to the table. Many co-ops also offer shared spaces for residents – game rooms and lounges being among the most common. And with a co-op, you’ll also have peace of mind that your fellow citizens are equally invested in the preservation and upkeep of the building and community spaces.

It is also common for condos and co-ops to have some sort of front desk service and third-party security to keep residents safe.

Subletting

If you’re looking to get into real estate investing and think subletting might be something you’re interested in, co-ops aren’t the best fit. Most co-op boards do not allow subletting, and those that do generally allow it only in very specific circumstances.

Condos, however, are a great option for buyers looking to generate passive income by renting out their home. Condominium associations very rarely have rules against subletting because it is, after all, your property.

Eligibility

At first, the mortgage approval processes for co-ops and condos seem quite similar. You need to get loan approval and choose your lender. Your lender must then review the property you wish to finance to ensure that it meets criteria such as construction status and occupancy requirements. Only then will your lender move forward with approving a mortgage.

But when it comes to moving into a co-op, there are a few extra steps regarding eligibility. Not only is it more difficult to obtain financing for this type of housing, but you will also have to go through the approval process put in place by the board of directors of the building you are interested in. This involves a thorough application process, interview and getting board approval before being allowed to buy shares in the co-op.

Availablity

While condos are widely available in cities and suburbs, co-ops are a little harder to find. Most often located in densely populated cities and metropolitan areas, co-ops may not be suitable for buyers seeking a more pastoral lifestyle.

Funding

Since a condo is considered real estate, most lenders aren’t afraid to work with borrowers looking to finance one. For this reason, the process of buying a condo is almost identical to buying a house. Here are the types of mortgages generally available for condos:

  • Conventional
  • FHA
  • USDA
  • Virginia

Financing a co-op, however, is where it gets tricky. Not only are lenders hesitant to take out cooperative loans, but the cooperatives themselves may have strict rules when it comes to financing. Depending on how you plan to fund, the co-op’s board may declare you ineligible.

Also, when the time comes for you to leave the co-op, it can be difficult to find someone to sell your shares to. Even if you find an interested buyer, they still need to get approval from the co-op’s board before they can sell.

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Opinion: Our student loan system needs fixing — and that change would be smarter than just canceling debt https://davidhemmingsbirdphotography.com/opinion-our-student-loan-system-needs-fixing-and-that-change-would-be-smarter-than-just-canceling-debt/ Thu, 12 May 2022 11:52:00 +0000 https://davidhemmingsbirdphotography.com/opinion-our-student-loan-system-needs-fixing-and-that-change-would-be-smarter-than-just-canceling-debt/ Much of the recent talk of student debt has focused on the possibility of canceling that debt, telling borrowers they don’t have to repay the funds the federal government has provided to help pay for their college education. or higher. Fierce debates about the pros and cons of such a policy rarely focus on the […]]]>

Much of the recent talk of student debt has focused on the possibility of canceling that debt, telling borrowers they don’t have to repay the funds the federal government has provided to help pay for their college education. or higher.

Fierce debates about the pros and cons of such a policy rarely focus on the benefits of extending student credit or what debt cancellation would mean today for students borrowing tomorrow, the next year and for the foreseeable future.

If President Biden canceled outstanding student debt, it would not absolve students from depending on borrowing in the future. Indeed, if student loans are canceled, some parents may receive cancellation notices for their student loans the same day their children sign agreements for their own loans.

Lily: Here’s how Biden could cancel student loans

Most people who come out of high school want to go to college for a reason, and most of their parents can’t afford to cover all the costs. Adults who return to school to improve their labor market opportunities rarely have the money to pay up front. Yet while governments help with grants and subsidies to public colleges, as a society we are quite clearly reluctant to pay taxes at the level needed to foot the bills of people who cannot afford to pay.

Borrowing to finance an investment with a high expected rate of return is rational. Entrepreneurs with business plans do it every day. And as with higher education today, other major investments in the history of American economic growth—railroads, chemicals, electricity—have relied on federally subsidized loans. Just ask Elon Musk: Tesla was a major recipient of government subsidies in its early years.

Government-backed loans have been a central part of funding higher education in the United States ever since Lyndon Johnson made federal loans central to his efforts to remove financial barriers to college education through the Higher Education Act 1965.

Recognizing the need for a permanent federal student loan system brings the design of that system to the fore. The current system is deeply flawed. It can be strengthened so that students continue to have access to this essential funding without having to face excessive charges when it comes time to repay.

The following achievable changes would alter our student loan system so that it can improve opportunities for students from all backgrounds.

First, higher education has a high average rate of return, but it is not profitable for everyone. Some students leave school without a degree and never get the increased income they hoped for. Some get degrees that don’t pay well, either because the professions they choose are low paying or because they can’t find good jobs.

A strong funding plan will reduce the share of borrowers whose investments do not return by holding institutions accountable for student outcomes, excluding schools that do not serve students well from eligibility for federal student aid programs. The federal government should act forcefully to implement such restrictions.

But some insurance against poor performance is a requirement for a lending system that does not leave personal crises in its wake. For this reason, income-contingent loans (ICLs), where monthly payments are limited to an affordable share of borrowers’ income, are becoming increasingly popular in the United States and other countries. ICL programs generally provide that any outstanding balance after a certain number of years will be cancelled.

In the United States, we have made piecemeal reforms, with borrowers choosing from a confusing array of repayment plans – some based on income and others with fixed monthly payments.

In the UK and Australia, all borrowers are automatically placed in ICL. Payments are collected through the tax system and adjust immediately when borrowers lose their jobs or experience other significant changes in income.

In the United States, one-third of borrowers who have taken the steps to register with ICL must provide documents to verify their income each year. Many fall out of plan due to this requirement. Many are still defaulting on their loans, although a lower share than among those in other plans.

Making ICL automatic will cut out the private loan servicers that the federal government contracts with to advise borrowers and process their payments. This system is plagued with problems of inefficiency and corruption.

Princeton University Press

But the payout structure also needs to be changed. There are frequent calls to reduce expected payments. The personal circumstances of some borrowers certainly make their payments onerous, but for most, the 10% of current income above 150% of the poverty line is not onerous.

That said, raising the down payment threshold to 200% of the poverty line would come closer to assessing only incomes above those of typical high school graduates.

Besides:

  • Borrowers whose monthly payments do not cover the interest charged see their loan balance increase, even when they are in good standing. Limiting the amount of interest that can accrue would alleviate this problem.

  • A disproportionate share of loan forgiveness under the ICL is expected to go to those who borrowed for higher education. Most people hungry for bigger government grants for students don’t think about these students. Although there are strict limits on the amount that undergraduates can borrow from the federal government, this is not the case for graduate students. Imposing such limits would reduce the cost to taxpayers and allow the system to more equitably target improving access to and success in undergraduate education.

  • For borrowers who do not fully repay their debts before balances are canceled (usually after 20 years for undergraduate borrowers), the amount they repay depends solely on their income trajectories, not how much they they borrowed. It is a gift for those who have large debts and unfair for those who have made the effort to limit their borrowings. Linking the repayment period to the amount borrowed could solve this problem.

We have other detailed guidelines for strengthening the ICL system elsewhere. In an environment where easing current loan repayment difficulties is politically and economically critical, we should retain the fundamental purpose of student loans, which is to help more people attend and succeed in college. To achieve this goal, we must do a better job of steering students away from educational options that will serve them poorly while ensuring that students whose education has helped them thrive repay their loans.

Unless there is a radical transformation of our tax system and the resources available to pay for higher education and cover student expenses while they are in school, the elimination of federal student loans would severely limit educational opportunities. in the USA. Fixing the current system is the best approach to preserve and increase these opportunities.

Sandy Baum is a nonresident senior fellow at the Center on Education Data and Policy at the Urban Institute and professor emeritus of economics at Skidmore College in Saratoga Springs, NY Michael McPherson is president emeritus of the Spencer Foundation and Macalester College in Saint Paul, min. They are the authors of “Can College Level the Playing Field? Higher education in an unequal society.

Now read: Teens heading to college this year could face nearly $40,000 in debt, and more parents are shouldering the burden

More: ‘I was treated unfairly by everyone’: Student loan lawsuit claims government and collectors are costing borrowers tax refunds and Social Security checks

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Gas Station Loans: Financing Options for Gas Stations https://davidhemmingsbirdphotography.com/gas-station-loans-financing-options-for-gas-stations/ Mon, 09 May 2022 21:15:02 +0000 https://davidhemmingsbirdphotography.com/gas-station-loans-financing-options-for-gas-stations/ A gas station loan can help you buy a new gas station, gas station or convenience store, expand an existing one, or increase the number of gas stations you own. Gas station financing or a business line of credit can also help you with the day-to-day costs associated with operating a gas station or convenience […]]]>
  • A gas station loan can help you buy a new gas station, gas station or convenience store, expand an existing one, or increase the number of gas stations you own.
  • Gas station financing or a business line of credit can also help you with the day-to-day costs associated with operating a gas station or convenience store.
  • Due to the fact that many gas station customers only accept cash, it can be difficult to obtain a loan or find a lender due to a lack of proof of income.

What is a gas station loan?

A gas station loan is financing or debt that gas station owners can use to purchase a new gas station or expand an existing business. You can also use a gas station loan to boost your cash flow to help pay for day-to-day expenses such as utility bills, payroll, or inventory.

As with any other business financing, a gas station loan or financing can come from a number of sources or loan programs. The type of financing you choose will depend on your goals, business history, business credit, and a number of other factors.

How a business loan can help your gas station

As any small business owner knows, there are many costs associated with running a business like a gas station or convenience store. Financing can help you get the money you need to buy or build a gas station. A gas station loan can also help you increase your working capital or cash flow to pay for normal operating costs or unexpected expenses.

Here are some ways a borrower can use their funding:

  • Outright purchase of a gas station or convenience store
  • Purchase commercial property to expand footprint of existing gas station
  • Pay for upgrades or renovations at the gas station
  • Buy real estate and equipment to build a new gas station
  • Fund other projects to grow the business, such as adding a car wash or other amenities
  • Cover payroll
  • Purchase of inventory
  • Pay utilities

Types of loans for gas stations

There are a variety of small business loans that can be a good option for gas station owners.

Business bank loans

A business bank loan may be suitable for the gas station industry, depending on your qualifications and type of ownership. Commercial loans and small business loans can allow you to use the money for a variety of purposes, from buying a gas station to paying day-to-day expenses associated with running a business. The type of loan you qualify for will depend on your business credit score and the quality of your finances, as well as the loan terms and repayment terms.

Commercial real estate loans

If you are looking to buy an existing gas station or build a new one, a commercial real estate loan may be a good option. You can also use a home loan to refinance and cash out your existing property. You’ll probably need a down payment with this option as well.

Small Business Administration Loans for Gas Stations

The Small Business Administration (SBA) offers several loan options for gas station owners that are more flexible than a traditional mortgage or home loan. SBA loans are generally more flexible than other financing, although there may be stricter conditions.

As the most common loan program, an SBA 7(a) loan can be used to increase short- and long-term working capital, refinance business debt, or purchase equipment. However, you must have eliminated your other financing options before seeking this type of loan.

An SBA CDC/504 loan is another financing option that allows a gas station owner to purchase or construct existing buildings, land, new facilities, machinery and equipment. You can also use it to improve existing buildings, grounds, utilities, parking lots, and landscaping. However, unlike the SBA 7(a) loan, you cannot use this loan for working capital, to purchase inventory, or to refinance debt.

USDA Business and Industry Loan Guarantees

The US Department of Agriculture has a rural development program for those who want to run a rural business, including a gas station. These USDA Business and Industry (B&I) loans are available to gas station owners who want to run a business located in an area with less than 50,000 people.

A USDA B&I loan can be used for:

  • Business development
  • Buy real estate
  • Purchase of equipment or machinery
  • Purchases of supplies and inventory
  • Refinance debt to improve cash flow or create jobs

This loan requires collateral, usually your gas station. The USDA allows certain lenders to provide financing, and they will negotiate interest rates with you individually.

Business line of credit

If you need financing to cover equipment, inventory purchases, or day-to-day expenses, a business line of credit may be a good choice. Similar to a business credit card, you can use any amount from your line of credit up to your limit, and you only pay interest on the amount you borrow. It can also be easier to qualify for a line of credit than a traditional business loan, which can be very helpful for a gas station owner.

How to qualify for a gas station loan

Eligibility for a gas station loan depends on the type of loan you decide to apply for, but there are some general requirements that any lender will ask you:

  • Professional and personal credit history and ratings. This is by far the most important factor when applying for a loan. Your credit score determines the risk that a bank or financial institution will lend you money.
  • Your income. In order to determine how well you will be able to repay the loan, the bank will want to know your business income. Again, since many customers at gas stations and convenience stores use cash to pay for their items, you may not have a good paper trail to prove it. You will likely have to rely on your tax returns to show your annual income.
  • Debt to income ratio. A lender will want to know what other debts you owe to help them determine if you will be able to repay them on the new loan.
  • Assets and Collateral. A financial institution may ask you to provide security to ensure that if you are unable to repay the loan, they have something to take and sell to pay off the debt. It could be your gas station, your equipment or even your personal assets like your house or your personal money.
  • Assembly costs. You will likely have to pay some fees to the lender to process your loan application, so you will need to have this money up front.

What do you need to apply for a gas station loan?

In general, you’ll want to have the following on hand when applying for a gas station loan:

  • Tax returns (individuals and companies)
  • Income statement and balance sheet
  • Bank statements (personal and business)
  • Identity document (driver’s license or passport)
  • Leases
  • Commercial licenses
  • Articles of incorporation
  • Your CV
  • Any financial projection
  • Collateral

You may need to provide other documents depending on the type of loan you are applying for.

Which lenders offer gas station loans?

In addition to the loans mentioned earlier in this article, there are a number of lenders that offer gas station loans:

  • JPMorgan Chase
  • Capital one
  • Wells Fargo
  • Capital of the green box
  • CREFCOA
  • RMC Funding
  • fast bridge

If you have an existing relationship with a bank or financial institution for personal banking or other business banking services, you may be able to secure a gas station loan with them.

Is it hard to get a gas station loan?

Unfortunately, due to their operating model, it can be difficult to obtain good financing options for gas stations from traditional lenders. However, with the right preparation – especially knowing and improving your business credit score – there are ways to get gas station financing. Nav helps small business owners of all kinds understand the factors that go into your business’ credit rating and offers tools to find the financing you’re most likely to qualify for. Create an account today to get started.

This article was originally written on May 9, 2022.

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Your cash savings can get a higher return, but only at certain banks https://davidhemmingsbirdphotography.com/your-cash-savings-can-get-a-higher-return-but-only-at-certain-banks/ Sat, 07 May 2022 14:00:01 +0000 https://davidhemmingsbirdphotography.com/your-cash-savings-can-get-a-higher-return-but-only-at-certain-banks/ Guido Mieth | Digital Vision | Getty Images Banks are starting to pay a higher return on your money – good news for savers who have watched their stocks languish due to a horrific combination of low interest rates and high inflation. However, some banks are moving faster than others. Some, especially traditional brick-and-mortar stores, […]]]>

Guido Mieth | Digital Vision | Getty Images

Banks are starting to pay a higher return on your money – good news for savers who have watched their stocks languish due to a horrific combination of low interest rates and high inflation.

However, some banks are moving faster than others. Some, especially traditional brick-and-mortar stores, may not move for a while.

At least 10 banks have raised interest rates on their high-yield savings accounts or money market deposit accounts since mid-April, according to data compiled by Bankrate.

They include: American Express National Bank, Barclays Bank, Capital One, CIT Bank, Colorado Federal Savings Bank, Discover Bank, Luana Savings Bank, Marcus by Goldman Sachs, Sallie Mae Bank and TAB Bank, according to Bankrate. A handful of others boosted yields earlier in 2022.

Rates are still relatively low — none still pays more than 1%. Most are between about 0.5% and 0.80%, according to data from Bankrate.

But the highest-paying accounts pay about 10 times more than the national average, which is 0.06%, according to Greg McBride, chief financial analyst at Bankrate.

And consumer yields are likely to climb steadily as the Federal Reserve continues to raise its benchmark interest rate to curb inflation. The central bank lowered this rate to low levels at the start of the Covid-19 pandemic to help support the economy.

“If the Fed ends up being as aggressive as it should be, the best-performing savings accounts could pull off 2% later this year,” McBride said.

“It’s the only place in the world of finance where you get the free lunch of higher return without higher risk,” he added. “It’s pure gravy.”

emergency savings

Guido Mieth | Digital Vision | Getty Images

Financial advisors often recommend that savers place their emergency funds in these types of accounts. The funds are safe (the deposits are insured by the Federal Deposit Insurance Corporation) and liquid (they are accessible at all times).

Savers should aim to have several months of household expenses on hand, in case of job loss or other unforeseen event.

Financial adviser Winnie Sun, co-founder of Sun Group Wealth Partners in Irvine, Calif., recommends saving at least six months on crucial living expenses (housing, food and medicine costs), plus an additional three months for each child in the household.

Learn more about personal finance:
Here’s what the Fed’s half-point rate hike means for your money
As Mortgage Rates Rise, Should You Buy a Home or Rent?
Rising interest rates mean higher costs for car loans

Consumers also do not need to move all their funds. They can continue to manage their day-to-day finances (their checking accounts, for example) at their current bank to avoid the hassle of switching, and open an account at a new bank just for emergency funds, McBride said.

Not all banks are increasing their payments or doing so at the same pace.

Largely, those who have raised their account rates (some have done so multiple times in 2022) are online banks or the online banking divisions of traditional banks.

They have lower overhead and can use the lure of higher rates to compete with brick-and-mortar stores, which hold the lion’s share of customer deposits and are “in no rush” to increase payments, McBride said.

It’s pure sauce.

Greg McBride

chief financial analyst at Bankrate

When the Federal Reserve raises its benchmark interest rate — known as the federal funds rate — it increases the cost of borrowing. Loans are becoming more expensive for consumers and businesses.

Banks earn money from loan interest. As the Federal Reserve raises its benchmark rate, banks derive more revenue from interest payments on higher loans and therefore may find themselves in a better position to pay a higher return on customer savings.

The central bank raised its key rate by half a percentage point on Wednesday, the biggest increase in more than two decades.

However, this seesaw effect will not necessarily be true for all institutions, due to another factor. Banks use deposits to lend money to other customers. But customers flooded the US banking system with cash to an unprecedented degree in the early months of the pandemic, in part due to cash hoarding and the flow of government payments like stimulus checks.

As a result, most banks may not see the need to pay higher savings rates to attract deposits and fuel their lending machine.

Inflation

Even though a handful of banks are increasing their payouts, consumers are still struggling to keep pace with inflation.

The consumer price index, a key gauge of inflation, jumped 8.5% in March 2022 from a year earlier, the fastest 12-month increase since December 1981. As a result , money loses its value at a high rate.

“Overall, you’re still well below inflation levels,” Sun, a member of CNBC’s advisory board, said of high-yield savings account rates.

However, she added: “Sometimes we have to be comfortable receiving less return for less. [worry].”

Savers can opt for different approaches to emergency savings, depending on their household situation, Sun said.

For example, people who don’t want to open a separate high-yield savings account at another bank may be able to replicate those returns in an emergency cash account by investing 5% to 10% (depending on their appetite for risk) in a simple balanced fund sharing. between stocks and bonds, she says.

This investment is however subject to market risk. In an emergency, savers would leverage money (not invested assets) as much as possible.

People who don’t have the financial capacity to fund both an emergency savings account and a retirement account can also consider a Roth Individual Retirement Account, Sun said. In an emergency, investors can tap into their Roth IRA contributions as a last resort. (This does not incur a tax penalty, although withdrawing investment income may in some cases, such as withdrawing before age 59½. Roth IRAs also have annual contribution limits.)

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Could Student Loan Debt Threaten Your Health? – Consumer Health News https://davidhemmingsbirdphotography.com/could-student-loan-debt-threaten-your-health-consumer-health-news/ Thu, 05 May 2022 18:00:07 +0000 https://davidhemmingsbirdphotography.com/could-student-loan-debt-threaten-your-health-consumer-health-news/ THURSDAY, May 5, 2022 (HealthDay News) — As the Biden administration weighs the possibility of a broad student loan forgiveness, a new study finds those mired in student debt face an increased risk of heart disease at home. ‘mature age. The results are not the first to suggest that student debt can have a mental […]]]>

THURSDAY, May 5, 2022 (HealthDay News) — As the Biden administration weighs the possibility of a broad student loan forgiveness, a new study finds those mired in student debt face an increased risk of heart disease at home. ‘mature age.

The results are not the first to suggest that student debt can have a mental and physical impact.

Young adults who repay huge loans have been shown to have poorer sleep, higher blood pressure and higher smoking rates than their debt-free peers – although the reason remains unclear.

The new study suggests that while student loans can bring big benefits — namely, a college degree — there may be health consequences for people who struggle for years to repay them.

Researchers found that Americans who still had student debt in their 30s and early 40s generally had more risk factors for heart disease, including high blood pressure, diabetes, smoking and overeating. weight. They also had higher blood levels of C-reactive protein, a marker of chronic inflammation.

This was in comparison both to people who had never been in debt and to those who had paid off their student loans faster.

In recent years, there has been growing recognition of the “financial toxicity” that can accompany debt, including being buried in medical or household bills.

“I think this new study is important because it focuses on student debt,” said Thomas McDade, a professor and researcher at the Institute for Policy Research at Northwestern University in Evanston, Illinois.

McDade, who was not involved in the research, noted that student loans can be considered a mild form of debt: they are taken out in exchange for a higher degree and the perks that come with it – the chance to earn more , move up a career ladder, and have health insurance and other benefits.

These things are all associated with better physical and mental health.

“But it has to be a manageable amount of debt,” McDade said.

The new study cannot say why persistent student debt was linked to poor heart health. But McDade suspects chronic stress is the main route.

“Stress has direct physiological effects on the body,” he said, “and it also affects your behavior — how you eat, whether you smoke.”

Plus, McDade added, when people spend years paying off debt, they have less money for healthy eating, a gym membership, or a stress-relieving vacation.

For the study, researchers led by Adam Lippert of the University of Colorado at Denver used data from a long-running project that tracked the health of nearly 4,200 Americans between 1994 and 2018. During the first assessment, participants were in middle school or high school. school. At last, they were between 33 and 44 years old.

Overall, 37% reported no student debt in early adulthood or in their 30s or 40s. Just over half, however, were either constantly in student loan debt or took out loans between early adulthood and middle age.

Another 12% had student loans, but paid them off in a relatively short period of time.

It turned out that debt-ridden people in their 30s and 40s had higher cardiovascular “risk scores” on the final assessment of the study. These scores are based on factors such as weight, smoking, high blood pressure, and diabetes.

People with debt also had higher blood levels of CRP. It’s an important finding, McDade said, because it links student debt to a biological marker of chronic inflammation — though it doesn’t prove debt burden is the cause.

The results were published May 3 in the American Journal of Preventive Medicine.

According to J. Geiman, a policy analyst at the Center for Law and Social Policy in Washington, DC, other research has linked student debt to serious mental health issues.

For example, a 2021 survey found that one in 14 heavily indebted student borrowers had ever considered suicide due to the financial burden.

Student debt is also a health equity issue, said Geiman, who was not involved in the new study: Black Americans, on average, take out more student loans and borrow more money, while reaping fewer rewards – with lower college graduation rates than most other racial and ethnic groups. Thus, they are more likely to bear the substantial inconvenience of the loan.

Geiman also pointed to the larger context: The latest findings are based on people who went to college 20 or more years ago — and now the outlook may be worse.

“Tuition fees are up, the cost of living is up, and wages have stagnated,” Geiman said.

Higher education certainly has many benefits, McDade said, but ultimately the rising cost of obtaining it must be considered.

“Everyone should have the right to pursue higher education if they choose, without bearing undue financial burden,” McDade said.

More information

The American Psychological Association has more on the psychological toll of debt.

SOURCES: Thomas McDade, PhD, professor of anthropology and fellow, Institute for Policy Research, Northwestern University, Evanston, Illinois; J. Geiman, Policy Analyst, Education, Labor Law and Workers’ Justice, Center for Law and Social Policy, Washington, DC; American Journal of Preventive Medicine, May 3, 2022

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Winners and losers: Loans are getting more and more expensive https://davidhemmingsbirdphotography.com/winners-and-losers-loans-are-getting-more-and-more-expensive/ Tue, 03 May 2022 16:44:40 +0000 https://davidhemmingsbirdphotography.com/winners-and-losers-loans-are-getting-more-and-more-expensive/ (CRON) – Winner: Stocks advance as investors wait for the Fed Stocks are slightly higher after investors weighed the Federal Reserve’s upcoming moves and a fresh round of quarterly results. The benchmark 10-year Treasury yield rose above 3%, its highest level since December 2018. The Securities and Exchange Commission nearly doubled the staff of the […]]]>

(CRON) – Winner: Stocks advance as investors wait for the Fed

Stocks are slightly higher after investors weighed the Federal Reserve’s upcoming moves and a fresh round of quarterly results.

The benchmark 10-year Treasury yield rose above 3%, its highest level since December 2018.

The Securities and Exchange Commission nearly doubled the staff of the crypto unit to crack down on abuses in the booming market.

Crypto curiosity remains strong. Fidelity Investments is launching a bitcoin option for its 401(k) plans, but investors may still want to think long and hard about whether it’s for them.

Teachers are dropping out in record numbers and building 6-figure businesses as virtual assistants, coaches and real estate agents.

Burger King’s revenue soared 15% and Krispy Kreme launched new cinnamon milk glazed donuts.

Loser: Credit cards, car loans and mortgages are getting more and more expensive

The Federal Reserve launched an aggressive campaign of interest rate hikes to curb soaring inflation.

Tomorrow, the Fed will put rate increases on steroids by raising rates by 50 basis points, and consumers will have to dig even deeper into their wallets to repay their loans.

The move will lead to higher rates on everything from credit cards, auto loans, variable rate mortgages and HELOCs.

Your debt will become much more expensive in a hurry. There was a 2.25 percentage point increase in rate increases this year, the highest since 1994.

On the positive side, consumers, especially seniors, will finally see bank deposit rates rise from paltry levels, especially for online savings accounts and CDs.

For a credit card balance of $5,000, a half-point increase will likely add $193 in total interest on a minimum monthly payment.

A total of 2 percentage points of rate increases the rest of the year would add $800 in interest.

An ARM whose rate drops from 3.85% to 5.85% the rest of the year would increase the monthly payment of a $600,000 adjustable rate mortgage by $720.

Winner: Can ‘Top Gun’ and ‘Avatar’ Save the Movie Industry?

The US theater industry has been devastated over the past two years by the coronavirus pandemic.

The theater industry is not out of the woods yet – the box office is still down from pre-pandemic levels and will take some time to fully recover.

“Top Gun: Maverick” and “Avatar: The Way of Water” will open this year.

Warner Brothers and Disney are moving away from releasing films like “Black Widow” on their streaming services the same day as in theaters.

“Avatar: The Way of the Water” has the potential to be a game-changer for the industry.

Paramount’s long-delayed “Top Gun: Maverick,” which hits theaters May 27, will appeal to older audiences — the 45-and-over crowd that’s been slow to return to theaters.

It is estimated to gross between $95 million and $135 million for its opening weekend.

Big movie stars sell tickets in theaters. Warner Bros. invited Dwayne Johnson, one of the biggest movie stars in the world, to present his upcoming DC films, “League of Super Pets” and “Black Adam”.

Will Netflix release shows like “Stranger Things” in theaters?

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It’s time to normalize frequent job changes https://davidhemmingsbirdphotography.com/its-time-to-normalize-frequent-job-changes/ Sun, 01 May 2022 20:58:13 +0000 https://davidhemmingsbirdphotography.com/its-time-to-normalize-frequent-job-changes/ The woman has tendered her resignation, waving to her colleagues, and happily moves on to a new … [+] opportunity. Getty We need to rethink the concept of staying with one company for the long term. It’s time to normalize frequent job changes. Maybe we looked at the work wrong. Instead of staying at one […]]]>

We need to rethink the concept of staying with one company for the long term. It’s time to normalize frequent job changes. Maybe we looked at the work wrong. Instead of staying at one company for decades, the Great Shakeup makes it clear that people are quick to quit and change.

The pandemic has opened our eyes to the fragility of life and the impermanence of things. One day we are here on earth, then we are gone. One of the positive messages coming out of the virus outbreak is that we need to appreciate and make the most of the little time we have.

Workers don’t want to waste more than eight hours a day, five days a week, at work they don’t enjoy or feel unappreciated by their bosses. Life is too short to settle for mediocrity. People want meaning, purpose, fulfillment, and fair compensation for their efforts. If employees can’t make it where they are now, they aren’t afraid to pursue new opportunities.

The revolutionary new agreement between companies and workers

If company executives and individual workers agreed that their relationship would only last one to three years, the whole dynamic would change. Companies would not have to pretend that there will always be a career path to follow. Workers will not experience the “Groundhog Day” effect of working in the same place, day after day and year after year.

This new model would be liberating for people who feel trapped by society’s emphasis on long-term employment at one company. Job seekers are still discriminated against when they are perceived to have changed jobs too often. Investigators are grilling candidates demanding why they made every move with a high degree of skepticism. The undercurrent is that there must be something wrong with the person who made them move so often.

HR and business leaders should start thinking differently. Instead of assuming the worst when a candidate shows their resume with a number of jobs, the interviewer should think that the person is thinking about managing their career and making decisions based on how they can continue. to grow, develop and improve its earning potential.

The good old days?

It seems that the future of work will be for people who regularly change jobs and careers. In our parents’ and grandparents’ day, people would take a job, stay there for twenty to thirty plus years, and retire. At the end of their service, they received a gold watch, a farewell party and a small pension.

As life expectancy was shorter, they had about ten years to enjoy retirement. We now live longer and everything is more expensive. There is a real fear that you may outlive the money you have in your bank accounts and investments. Many people feel the pressure to pursue new opportunities as they struggle to repay their student loans. Younger generations may be the first cohort to be worse off than their parents. There are also people of all ages who do not want to stagnate. They want to accelerate their career and make something of themselves.

These bold individuals will learn, build new relationships, and move on if there is no ability to advance within the organization. While there is a chance to move up the corporate ladder, things are changing so fast that many think it makes sense to continually look for other jobs to add to their skills and stay current.

Work would be like a sprint rather than trudging

Rather than hanging around for more than thirty years in the same organization, working would be like a sprint. You learn as much as possible in a compressed time frame. Contribute, ask questions, try different things, find mentors, have proteges, and take on big scary projects without worrying about failing. If you are given a life sentence in a business, past mishaps will also come back to haunt you. In a new place, you arrive with a clean slate.

If you have a bad boss, it doesn’t matter too much because you’ll be out of there after your service period ends and it’s time to move on. Managers won’t have to worry about a bad hiring decision because the person won’t be around very long. The manager might not be there herself after about a year. It takes a lot of pressure off everyone.

The benefits are important for workers, but most are forward-looking. Young people need money now. Human resources could change their programs. Anticipate benefits, especially compensation, which people desperately need with rapidly rising inflation.

The advantages of the short-term tour of duty

There would be no shame for job hunters to change jobs, as it would be normalized. Companies will continually hire people who have a fresh perspective by working at several different companies. It’s like bringing in management consultants who have been to multiple companies, learned what works and what doesn’t, and offer that valuable insight to the company and its management.

If you took a job only to find it wasn’t right for you or overpriced, you’d feel stuck and forced to stay despite your dissatisfaction. With this new mindset of being free to move on without condemnation, you can quit politely, cut your losses, and find the right person. To socialize this concept, HR could establish short-term contracts. If the person and the company wish to continue the relationship, they can sign another agreement for a fixed period.

No more being called a job hopper and being stigmatized. Instead, the person would be perceived as forward-looking, assertive, a risk-taker who is enthusiastic about learning, contributing, taking on a new challenge, and sharing what they have learned. . This can especially help older workers who have been in the same place for decades and are unaware of some of the new developments, technologies, applications and platforms used by their competitors.

When people leave, rather than grill them on what went wrong, HR could thank them for their service, wish them well, and cement a long-term relationship by asking the departing employee to stay in touch. . Later, information can be shared, joint ventures and collaborations can develop in the future. Also, it opens the door for boomerang employees to one day return to the company for another stint.

Sports stars happily switch teams for better deals

“The time has come, in our view, for a new employer-employee pact. You can’t have a nimble company if you give employees lifetime contracts — and the best people don’t want a lifetime employer anyway,” LinkedIn founder and venture capitalist Reid Hoffman wrote, as well. than Ben Casnocha and Chris Yeh in a Harvard. Company review piece.

They added that “the employer-employee relationship has already taken new forms” and that “the new pact recognizes the probable impermanence of the relationship, but still seeks to establish trust and investment. Instead of entering into strict ties of loyalty, both parties seek the mutual benefits of the alliance.”

It’s like professional sports. Star athletes are loyal to their team and do their best to win. Staying on a team for an entire career is a relic of a bygone era. If there’s a better offer on the table, they’ll happily accept it and work just as hard with the new team. They will likely have a number of moves, and some will return to join former teammates.

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Elon Musk’s bank loans show the divide in American finance https://davidhemmingsbirdphotography.com/elon-musks-bank-loans-show-the-divide-in-american-finance/ Sat, 30 Apr 2022 04:00:50 +0000 https://davidhemmingsbirdphotography.com/elon-musks-bank-loans-show-the-divide-in-american-finance/ On a commercial level, it’s easy to see why the banks agreed to provide Elon Musk with $25.5 billion in loans for his Twitter takeover bid. With hundreds of billions of dollars in stocks and possibly a cryptocurrency like dogecoin in reserve, the Tesla founder is a solvent man. A serial entrepreneur, he is also […]]]>

On a commercial level, it’s easy to see why the banks agreed to provide Elon Musk with $25.5 billion in loans for his Twitter takeover bid. With hundreds of billions of dollars in stocks and possibly a cryptocurrency like dogecoin in reserve, the Tesla founder is a solvent man. A serial entrepreneur, he is also likely to pay significant fees for financial services in the years to come.

However, there is something disturbing in what has just happened. The red carpet being rolled out for Musk on Wall Street contrasts with the hurdles entrepreneurs of more modest means face when seeking bank loans — and points to a growing divide between credit haves and credit-have-nots in America’s business world.

Banks, of course, have never been welfare agencies. But they’ve gradually moved away from Main Street business lending in recent years as consolidation has changed the shape of the U.S. banking industry. The number of small community lenders plunged while a handful of large banks built balance sheets measured in the trillions of dollars. Economies of scale became the holy grail of industry, and the little business guy started getting lost in the shuffle.

“We’ve gone from too big to fail to too big to care,” says Beth Bafford, vice president of strategy at Calvert Impact Capital, a nonprofit group that works with private lenders and local governments. to develop market mechanisms that make credit more accessible — and cheaper — for small businesses, especially in minority communities.

“Day in and day out we see small business owners who are nothing but heroes,” she says. “They’re giving their company, their people, and all they’re asking for is a fair shot, just access to the same tools that Elon Musk has access to. Very often it is not available. This is an example of a financial system that is set up to serve very few people well, and it’s all driven by scale.

Changes in lending practices were particularly pronounced in the years following the financial crisis. Bank lending has risen for big businesses, but not for smaller ones, according to statistics compiled by Rebel Cole, a former Federal Reserve Board economist who is now a professor of finance at Florida Atlantic University. According to his tally, the total stock of business loans over $1 million at US banks rose from $1.44 billion in 2010 to $2.75 billion in 2019 (the last year before the data not be distorted by the pandemic). In contrast, total loans under $1 million fell from $652 billion to $645 billion.

Businesses seeking the smallest loans have been hit the hardest. Cole says the fixed cost of issuing a business loan in the United States can be as high as $10,000 to $15,000, making loans under $100,000 or even $200,000 unprofitable for many banks. . This result is that small entrepreneurs are often forced to tap into more expensive sources of funding, ranging from credit cards to products known as merchant cash advances, which sometimes carry triple-digit annual percentage rates. , according to industry sources.

The super-rich, on the other hand, can in fact live on bank loans, borrowing against their equity to avoid declaring income and subjecting themselves to the same taxes as the working masses. The terms are also attractive; the FT reported only last year that the wealth management arms of major US banks were offering two-year loans against liquid assets like stocks at an interest rate of around 1.4%.

Musk is leveraging his stock holdings to help fund his $44 billion Twitter buyout. Nearly half of its $25.5 billion debt under the deal — $12.5 billion — is secured by Tesla stock. In the popular imagination, margin loans of this type are considered risky because stocks can go down as well as up. But banks today are happy to lend against such assets. “Stocks are cash equivalents,” Cole says. “What’s easier to convert to cash than stocks?”

The question is how many gigantic margin loans are too many for our own good. Keeping Musk happy diverts attention — and money — from other needs. The bankers tripping over themselves to quickly arrange funding for his Twitter offering were likely too busy to support new supply chains or deliver on their promises to help communities of color.

Now may be the time for policymakers to encourage US lenders to broaden their horizons. I hesitate to give an optimistic note in the current political environment, but I bet there are people left and right who would like credit to be more widely available to qualified borrowers.

Ask yourself: is the national interest better served by helping the current Elon Musk get even richer – or by finding new Elon Musks? Feel free to tweet your response.

gary.silverman@ft.com

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Artist Loans & Other Financial Options https://davidhemmingsbirdphotography.com/artist-loans-other-financial-options/ Fri, 29 Apr 2022 15:44:35 +0000 https://davidhemmingsbirdphotography.com/?p=3067 Loans and other types of financing PAYDAY LOANS It’s not advised. Do not take out payday loans the same day from Oak Park unless have exhausted all other options available. You can get the loan by sending a post-dated cheque made out of your checking account, which is put into your account at the designated date. The lender […]]]>

Loans and other types of financing

PAYDAY LOANS

It’s not advised. Do not take out payday loans the same day from Oak Park unless have exhausted all other options available. You can get the loan by sending a post-dated cheque made out of your checking account, which is put into your account at the designated date. The lender has the ability to give you a predetermined amount of money until you have paid. The lender typically has a cost that is determined by a particular amount. For example, a $250 loan can be as costly as $45. In general, loans expire in two weeks when you are required to repay the loan and amount in full.

If you can’t pay the loan back, you may make a payment ($45) and then roll the loan over for another two weeks, which means you’ll have to pay the whole amount, or pay the fee and roll the loan over for another two weeks. If you choose to roll the loan over just once, you’ve already made a payment of $90 for borrowing $250!

If you need money, borrow from close friends and family or a financial institution such as banks or credit unions. You could even be able to sell your work! Payday lenders should be avoided.

LOANS FOR ARTIST PROJECTS

Several organizations will lend you money to assist you to finance the project you have contracted. Because certain grants and financing sources do not payout at the outset of a project, you will need to find a way to support your firm. Non-profit organizations have devised strategies and are willing to pay you in exchange for a contract. The fees they charge for their services are reasonable, and they can help you put your strategy into action. To complete the loan, they will need to pay their legal and accounting employees, as well as their accountants.

NONPROFIT FINANCE

Numerous non-profit organizations offer artist loans. The amount and amount of loans may differ. Certain loans are used towards the finalization of a task and are only due upon completion. For example, The New York Foundation for the Arts may make a loan, but it should not be more than 80 percent of the contract value for the project. Each loan amount comes with a 3% fee. The loan usually lasts 120 days. Make yourself informed of your possibilities.

LOANS FOR AN EMERGENCY

There are donors that will provide you with the money you need in an emergency to address a variety of scenarios, including medical crises, natural disasters, and personal concerns. These can be obtained at the library or online.

VA LOANS

The Dept. of VeteranAffairs guarantees fixed-rate VA loans for veterans who meet the eligibility requirements and are part of the US Military. They can be purchased for either 15 or 30 years. VA Loans do not often demand a down payment and have fewer criteria than regular loans. They also use funds through donation programs, as well as loans and grants from a variety of sources. The proceeds will be used to pay down the balance (if necessary) and cover closing charges. This program of the Veterans Administration’s Loan Guaranty program does not limit the number of loans available to qualifying veterans, but it does set restrictions on loan location.

The loan is only available to an eligible veteran, who was a member of any of the branches of the United States Military. Additionally, the loan can only be used to purchase residential homes. It is mandatory that you reside in or intend to transform the property into your own residence within a reasonable period after the loan is closed. This means that the loan cannot be used to purchase an investment property to rent.

LARGE LOANS

This form of loan is utilized when the loan amount must exceed the guidelines established by Fannie Mae and Freddie Mac, federal government-sponsored investors who issue loans on an intermediate market to buy mortgages. To be eligible to participate, lenders offering commercial mortgages on residential properties for the purpose of selling them to Fannie Mae or Freddie Mac must comply with their underwriting requirements.

These loans may have a higher interest rate. As a result, the loan may have a higher monthly cost and may cost more over time. Because Jumbo Loans are regarded as riskier, the conditions to qualify for them are more severe, and you’ll need to be financially solid in order to qualify. Due to the economic downturn and the financial difficulties that are associated with Fannie Mae and Freddie Mac, They are harder to obtain and pay back. Before signing on to a loan, thoroughly review the papers associated with it and consider using an accountant who is accredited by a reputable firm.

GOVERNMENT LOANS

Contrary to other programs for home buyers, government loans, such as that of the FederalHousingAdministration (FHA) secured mortgage, aren’t just for first-time homeowners. The programs offered by the federal government change frequently, and it is advised to go to government websites for the most up-to-date information.

These loans are subject to an opportunity for income caps, as well as limits on the amount of mortgage. They may also have additional conditions that the borrower must meet to meet to be eligible for the loan. The loan is also contingent on the program of the loan.

PERMANENT LOANS FOR CONSTRUCTION

They are designed in order to aid those who are looking to build the home of their dreams. Construction loans, as well as a construction/permanent option, are available.

It is backed by a promise to pay for the land and property after it has been constructed. The typical construction loan comes with an initial period of (12-24 months) to allow time for the building process and later changes into an ongoing mortgage for the completed property. If it is loans, it is necessary to determine whether or not they want to accept the risk of making the space. It is backed by a guarantee to pay for the land and property once it is built. The standard construction loan has a 12- to 24-month term to allow for the construction phase and then converts to an ongoing mortgage on the completed home. If it’s loans, they must decide whether or not they are willing to take the risk of making the space. It is backed by a promise to pay for the land and property after it has been constructed. The typical construction loan comes with an initial period of (12-24 months) to allow time for the building process and later changes into an ongoing mortgage for the completed property. If it is loans, it is necessary to determine whether or not they want to accept the risk of making the space.

FHA MORTGAGE

The FederalHousingAdministration (FHA) was established in 1934 and is the most well-known and longest-running lender of residential mortgages in the U.S. An FHA loan is a lower interest rate for borrowers who meet certain criteria when compared to traditional loans. Fixed and adjustable-rate mortgages are provided and usually require an investment minimum of 3 percent.

FHA loans also draw on the proceeds of gift programs as well as other loans and grants which come from a variety of sources. They are used to pay closing costs and deposits. In contrast to conventional loans, the maximum percentage of property debt is increased to 29% compared with the standard 28% that is permitted on conventional loans. Additionally, the ratio could reach at or above 41% in comparison with 36 percent.

In addition, conventional loans might need at least two months of reserves (money at the banks to cover an insurance or mortgage) It is not necessary to be eligible for FHA loans.

The mortgages are subject to the power to establish income limits and restrict the amount of the mortgage. Certain down-payment assistance programs which are combined with loans from the government could be subject to income limits on these loans, as well.

EMERGENCY RELIEF FOR ARTISTS

Crisis Management

There are two kinds of emergencies that could be thought of as emergencies for a loan. huge disasters and personal emergency situations.

Large-scale catastrophes can trigger various damages, such as the aftermath of a natural disaster or earthquake, or terrorist attacks. These kinds of disasters can ruin communities and their lives in a matter of seconds and could take years to rebuild communities.

Personal injuries can be the result of accidents, injuries from sudden illness, studio and home floods, and fires.

The pressure of having to deal with two types of emergencies simultaneously can be a challenge. It’s important to be aware of the several emergency assistance programs available. It is important to learn what is available prior to find yourself in a situation of emergency.

What Situations Are Eligible for Emergency Support?

If you’re facing an emergency situation, what should you do? Before you contact an emergency assistance organization, it’s important to know the distinction between legitimate emergencies and those that could be prevented. Many emergency assistance agencies have clearly defined distinctions in relation to the former. The phrase “valid emergency” can be defined as an emergency that is necessary. These are life-threatening events such as emergency medical situations, fires, flooding, natural catastrophes, and other such situations. Emergencies triggered by one’s own actions aren’t considered to be eligible for help when faced with an emergency. This is true for circumstances that aren’t financially planned, like financial management mistakes, credit card debt, child support that is in default on student loans, or other forms of evictions due to refusal to make payments for rent, etc. These emergency organizations weren’t created to aid with the unique opportunities such as sudden and unplanned events, exhibitions in other countries, or residencies or professional conferences (although there are many opportunities within the United States comparable to the NYFA Special Opportunity Stipends which offer opportunities for events that are special). These aren’t emergencies that could lead to death or life-threatening situations.

Types of Emergency Support

The majority of emergency organizations provide one or more of the following types of help including emergency grants, low-interest loans (these have to be repaid), and emergency assistance. They also differ with respect to the time they can respond to emergency requests therefore, make sure you visit their websites to find out more details.

The emergency grants can range from as little as a few hundred to thousands of dollars. They are available in similar amounts, and typically have an extended period for a period of about one year so that artists can be on their feet prior to when the repayment process begins. Additionally, numerous emergency organizations (and non-emergency organizations as well) provide assistance for artists in figuring out how they can collect their possessions and get on with their lives. In addition, certain organizations cooperate with social service agencies on behalf of the artist. No matter what kind of assistance or support the flexibility (i.e. speedy turn-around time) and access to information and resources are the guidelines for how these organizations are managed and maintained.

It is also crucial to realize that the vast majority of businesses don’t place much importance on the artistic merit of an artist. In general, businesses will examine the resume of an artist to verify whether the person is a “professional” working artist. The company will also look at the need and the severity of the situation. In addition, those who have been through several crises over the years may be able to reapply to a variety of emergency organizations for assistance.

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