On a regular repayment schedule, they have less financial
leverage than borrowers with better incomes to pay down their debt early and keep up the pace with their interest rates.
Not exact matches
And thirdly, of course, higher
leverage means that monetary policy's impact via its effect on the behaviour of
borrowers will be bigger
than in the past — especially in a country like Australia where the majority of household debt is at floating rates.
Leveraged buyout loans are subject to greater credit risks
than other investments, including a greater possibility that the
borrower may default or enter bankruptcy and may be «covenant lite» loans, which do not include terms that allow the lender to monitor the performance of the
borrower and declare a default if certain criteria are breached.
«It is not surprising to see Millennial
borrowers leverage FHA loans because they typically offer lower down payments and lower average FICO score requirements
than conventional loans.
In another case, the primary
borrower became disabled, and the co-signer was able to use that as
leverage to negotiate a buyout for much lower
than the balance of the loan.
The risk of default by
borrowers that issue below investment - grade securities is significantly greater
than other
borrowers because these
borrowers are often highly
leveraged and more sensitive to adverse economic conditions, including a recession.
Jumbo Prime are high -
leverage programs that allowed
borrowers to buy much more home
than they should have.
With more
than 20 years of experience, Ed Christian advises a variety of entities, including investment funds, portfolio companies, lenders and
borrowers, business development companies (BDCs), airlines, and lessors and lessees on complex debt and equity transactions in the alternative finance,
leveraged finance, aviation, transportation, energy and capital equipment sectors.
«It is not surprising to see millennial
borrowers leverage FHA loans because they typically offer lower down payments and lower average FICO score requirements
than conventional loans.
Plus, unless you're an ultra-qualified
Borrower we've worked with before, you'll probably need to keep a lower LTV (in the 65 % - 80 % range), meaning you'll have a bit more skin in the game
than on some of the higher
leverage single family loan programs.
Plus, unless you're an ultra-qualified
Borrower we've worked with before, you'll probably need to keep a lower LTV (in the 65 % - 80 % range), meaning you'll have a bit more skin in the game
than on some of the high
leverage single family loan programs.
Further, even though the process of applying for government subsidies may be arduous, more often
than not it is worth the effort for the
borrower and may result in better
leverage or better loan terms.