Sentences with phrase «rely on the borrower»

Conventional sources of finance rely on the borrower's history (how long it has been in business), its overall financial health including profitability, positive cash flow, and debt service coverage.

Although the bank relies on a borrower's credit score, income, and debt - to - income ratio, the chances of qualifying for a loan are increased when borrowers pledge a savings account or CD as collateral.

Other organizations, such as Kiva, do not rely on a borrower's credit score and instead look for an interesting personal and business story.

Unlike Federal student loans, private student loans rely on a borrowers» credit score (among other factors) to make a decision.

FICO's current methodology dates back to around 2004 and relies on a borrower's income, payment history, debt load and to a lesser degree on how often lenders take a look at a borrower's credit history.

Not exact matches

When both lender and borrower are businesses, much of the evaluation relies on analyzing the borrower's balance sheet, cash flow statements, inventory turnover rates, debt structure, management performance, and market conditions.

Or if you're looking for a mortgage, one credit bureau might rely on a different FICO algorithm that gives them a more accurate picture of whether you're a better mortgage borrower than, say, a car loan borrower.

Thus, they can not rely as much on the value of the housing collateral in securing their mortgage loans, and consequently now put more weight on the credit histories of the borrowers.

Rather than relying on personal assets such as a car, boat or home to secure the loan, unsecured lenders look exclusively at a borrower's credit worthiness to determine eligibility, making those with high credit scores and a long, solid credit history the best candidates for an unsecured business line of credit.

However, borrowers need to be aware of the caveats of federal student loan forgiveness, including tax implications, uncertainty about the viability of forgiveness programs, and the need to take lower - income positions before relying heavily on a forgiveness program to repay student loan debt.

This indicates that these graduates attended some form of graduate school (or at least an expensive college), and borrowers with this background are less likely to need to rely on such a plan.

This form of lending is concerning for three main reasons: Like storefront payday lending, auto - title lending carries a triple digit APR, has a short payback schedule, and relies on few underwriting standards; the loans are often for larger amounts than traditional storefront payday loans; and auto - title lending is inherently problematic because borrowers are using the titles to their automobiles as collateral, risking repossession in the case of default.

Federal student loans have many advantages over private loans, and in most cases a borrower should extinguish all available federal loans for any given academic year before relying on private loans.

A lot of insiders are thus willing to pay what is in effect a custodianship fee to those they reckon can be relied on to return their money... That only makes sense if they expect any borrower offering positive interest rates to be essentially insolvent, either already or soon.

Most of WeLab's borrowers are individuals and small businesses who don't have enough established credit to take out loans from traditional banks at a low interest rate and typically rely on friends and family or microloan programs instead.

That explains why so many borrowers in this area have to rely on jumbo mortgages to finance their home purchases.

It's the third provision which may be most welcome to self - employed mortgage borrowers — especially those who don't rely on their «side business» to support their home or household.

Borrowers will no longer be able to rely on existing pre-approvals obtained by using the HEM benchmark as they can then find themselves in a position where they have won an auction but then the bank does not give them enough money to settle which would mean losing their deposit.

For older borrowers who rely on student loans to finance their own education, government statistics show their default rate is much higher than that of younger borrowers.

However, Rajan (2009) debates this breaking down of the financial model while underestimating the political, social and economic risks should not have been very much of a surprise while the models relied entirely on hard information and ignored soft control variables such as the incentives of lenders to collect information about borrowers, which was one of the fundamental causes for their failure (Rajan et all., 2009).

Many lenders were heavily relying on secured loans, when a borrower had to pledge some sort of collateral, usually real estate, in order to get financing.

We relied on a typical borrower profile that included a purchase price of $ 198,000 and a 10 % down payment, with good credit and $ 58,000 in annual household income.

In a recent Wall Street Journal article, Pfau indicated that a sound investment strategy includes taking out a reverse mortgage line of credit and relying on it only during periods when the value of the borrower's stock portfolio is declining.

Banks rely on o credit score to assess borrowers but that doesn't seem to bother private mortgage lenders in Peterborough who can provide loans to people with poor credit.

Because they rely on equity, lenders don't hesitate to provide funding even to borrowers with low credit scores.

One can also access the loans in spite of a bad credit rating as most lenders consider the overall financial health of the borrower, not just relying on the credit score.

Short term money providers rely on their own scoring criteria based on the borrowers» payment history, income and ability to pay as opposed to the overall credit score.

In other words, borrowers can't rely on an increase in equity due to market movement.

So far, the FHA has been able to rely on the insurance premiums paid by FHA borrowers to cover the costs of loan defaults and foreclosures.

Unsecured loans require no collateral, so the lender must rely on the creditworthiness of the borrower when approving a loan.

Lenders these days are more likely to rely on the debt - service - to - income ratio, which is the ratio of the normal monthly payments on the borrower's loans to the borrower's gross monthly income.

Most private lenders rely on word - of - mouth referrals, but the website of private lender Athas Capital Group Inc. advertises to borrowers and brokers.

However, borrowers need to be aware of the caveats of federal student loan forgiveness, including tax implications, uncertainty about the viability of forgiveness programs, and the need to take lower - income positions before relying heavily on a forgiveness program to repay student loan debt.

But payday loans also can trap borrowers who rely on it for nonessential, nonemergency expenses.

For purchase mortgages, we relied on a theoretical Massachusetts borrower with an assumed $ 350,000 home purchase with a 20 % down payment and personal credit score of 740.

While borrowers have had issues relying on the paper application and other documentation to re-certify their earnings in the past, there are also complaints that these companies are not keeping their customer base properly informed with issues surrounding the data retrieval tool's outage.

Student loan borrowers across the U.S. rely heavily on federal student loans to shoulder the cost of attending a higher education institution.

Without the data retrieval tool, these borrowers would have to rely on a paper process that can be especially difficult for low - income borrowers to navigate.

FHA does not rely on credit scores alone for preliminary loan approval, and allows borrowers to qualify at higher rations of debt to income than conventional loan programs.

That explains why so many borrowers in this area have to rely on jumbo mortgages to finance their home purchases.

Federal student loans have many advantages over private loans, and in most cases a borrower should extinguish all available federal loans for any given academic year before relying on private loans.

And while TD's share of originations is tiny compared to these competitors, it has maintained an above - average JD Power Rating for consumer satisfaction among borrowers who rely on its loan servicing.

LendingPoint's approval method relies less on a borrower's credit score and funds loans based on a holistic review of each credit profile; consequently, it is likely to be more lenient when it comes to approvals and lower credit scores.

What's more, borrowers can have Discover fund personal loans directly to creditors, so they don't have to rely on their own discipline to ensure the funds are used wisely.

But it is a different matter when it comes to unsecured loans, where lenders rely on the promise of the borrower to make their repayments to get their money back.

Loan comparison sites should recommend, in a clear and conspicuous fashion, that prospective borrowers should borrow federal first before relying on any private student loans.

There are so many reasons why we know our borrowers rely on National Cash Credit and cash advance loans.

To help set your mind at ease, find out what our satisfied borrowers say are the top five reasons they rely on these great loans.

It's the third provision which may be most welcome to self - employed mortgage borrowers — especially those who don't rely on their «side business» to support their home or household.

Wealthier borrowers also rely less heavily on student debt to finance college, according to left - leaning think tank Demos.