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Piggyback loans are greatly helpful for buyers who cannot complete the money as down payment for the Miami Beach luxury condo they want to purchase. This type of financing makes use of more than one mortgage from two or more different lenders. There are several types of piggyback loans. Let’s take a lot at these, and the option’s most common pitfalls and benefits.The three types If you’re looking for a piggyback loan to finance your Miami Beach luxury condo purchase, you have three options: 80-10-10, 80-20-0, and 80-15-5. Each number corresponds to a specific element of the mortgage. The first number indicates the 80 percent of the total home’s value, which will be provided by the first lender. The second is part of the down payment, which will be provided by another lender. Lastly, the last number is the amount (down payment) you must provide to complete the financing. In the second instance, 80-20-0, 80 percent of the home’s value will be financed by the first lender and the entire down payment by another lender. This means that you don’t have to pay for the down payment but will most likely pay off the amount just as you would your home mortgage. Benefits of Piggyback loans If you can’t complete the down payment for your Miami Beach luxury condo, you’ll find piggyback loan as a desirable option. This is probably the most beneficial aspect of the loan. Since most lenders, nowadays, require homebuyers to pay as much as 20 percent of the total home value as down payment, those with less than that amount can turn to piggyback loans. This type of financing spreads the risk of the loan between the two lenders. This easily qualifies you to purchase the property with little to no down payment. In addition, the approval process of this type of loan is easier than those of the conventional mortgage type. The Pitfalls The major disadvantage of piggyback loans is the rate. Unlike standard mortgage types, the combined rates of two or more loans can be overwhelming especially for first-time homebuyers or those with uncertain financial future. The first lender might be willing to drop the rate due to the significant amount of financing they will provide for the borrower. This isn’t true, though, for the second lender. Since lender two will only answer for 5 to 20 percent of the total home value, he might be more inclined to provide the financing if there is a guarantee of higher interest return. Furthermore, most piggyback loans have significant balloon payment at the end of the loan term. Compared to standard mortgages, you’ll find this amount greatly overwhelming. But if you plan early and anticipate such payment, your Miami Beach luxury condo will be safe from any financial trouble in the future. Mark Michael Ferrer Miami Beach Luxury Condos

While the recent recession and economic crisis have made it difficult to secure many types of loans, Texas property tax loans stand out as an exception. Texas continues to report some of the highest property tax rates in the country and with real estate values holding up well in this state, there has been little tax relief for property owners.  Given the high rates and the ever present challenges in the economy, property owners should know that delinquencies can be addressed with a property tax loan before penalties, interest, and possible foreclosure by the county.

With the economic crisis worsening, property tax lenders expect a record number of borrowers in the months ahead.  If you are interested in a solution for your delinquent property taxes, these frequently asked questions may assist your search.     

Q: What is a property tax loan and how can it help me?A: Property taxes are due in a lump sum by January 31st.  The amount of tax due increases every month thereafter until the taxes are paid.  A tax loan consolidates the delinquent taxes, accrued penalties, interest, and any legal fees owned on the property into a loan with affordable monthly payments. The taxing authority´s existing lien is transferred to the property tax lender as security for the loan. 

Q: What type of property will qualify for a Property Tax Funding loan?

A: Loans are available for almost any type of real estate as long as the borrower is not in bankruptcy, there is no IRS lien on the property, and the property is reasonably maintained. This includes residential, commercial, investment properties, and vacant land. 

Q: What if I’ve had past credit problems?

A: Credit history is typically not an issue, except in cases of current bankruptcy.  Loans are approved for most applicants, even those with not so perfect credit.  All loans are subject to income verification

Q: How long does the loan process take?

 A: From the time the application is completed the closing can occur in less than a week.  Applications can be taken online or over the phone.  Loan closings are typically handled with a mobile notary that comes to a location convenient to the borrower.  Q: How much money can be saved by avoiding interest and penalties on a delinquent property tax bill?A: Penalties and interest are set by state legislature and begin to accrue on February 1st.  While county rates vary, you can expect penalties, interest, attorney fees and court costs of 37% to 44% per year.  It´s easy to see how a property tax loan can save thousands in penalties and interest, while more importantly, avoiding foreclosure and lawsuits by the taxing authorities.Q: What are some considerations when choosing a property tax lender?A: In addition to choosing a lender with years of experience and specialization in property tax lending, only work with a lender who is licensed by the state of Texas.  You can validate if the property tax lender is licensed to make property tax loans in Texas with the Office of Consumer Credit Commissioner.   http://www.occc.state.tx.us/pages/searches.html

You can also learn more about Texas property tax loans by contacting Property Tax Funding at http://www.propertytaxfunding.com/ or calling a loan officer at 877-776-7391.