How to Buy Your Home Through a Deposit Loan Program
Quickly Raise Your Credit Score for a Lower Rate
- Author Unknown
Would you like to raise your credit score in a hurry?
Did you know that there is a program that will give you the appearance of greater assets and payment history that can be acquired from any bank?
I have been telling people for years; Know the rules before you play the game. This, and various other strategies that I write about, are what the wealthy have been doing to achieve their riches. They learned the strategies and techniques necessary to get what they want and need in life. You can do it too. You just need to learn how.
What I write about gives the reader a foundation to build further studies upon and spark, hopefully, something within that makes you want to learn more about a topic.
Increasing your credit score by 40 points and lowering your interest rate by 2% can save you over $100,000 on a 30 year mortgage. Additionally, the higher your score, the less you may have to put down as a down payment.
For example, if your score is between 500 and 619, you will typically have a down payment of 30%. However, if your credit score is between 620 and 699, your down payment could be as low as 5%.
Consumers with a score of 620 to 699 typically do what are known as SIVA (stated income verified asset) loans. They state their income and must verify that they have some type of asset such as savings or retirement account, CD's, or an annuity.
Consumers that do not have any or enough reserve assets can use a little known method called a Deposit Loan Program.
Here's how it works.
A bank associated with a Deposit Loan Program deposits $25,000 or more into a bank account in your name and using your social security number. The account is deposit only therefore you cannot withdraw any of the funds.
The only purpose of this account is to make it appear as though you have some type of asset that the bank can verify. The borrower simply lists the bank account on their loan application and the lender contacts the bank and requests a verification of deposit (VOD)
Once the VOD is received, the problem of having no reserve assets is solved. In addition, if the lender requires that the VOD be seasoned (aged a number of months) or sourced (closing costs paid through account) these things can also be handled for a nominal fee.
Deposit loan programs charge a monthly interest rate for this service. This is where they make their money. Let's say that they charge 1% of the $25,000 example. That would mean that they earn $250 per month. Let's also say that the minimum term of the loan is 3 months. The total interest paid would be $750.
Another great feature of this program is that once you make your first payment. The account reports to the credit bureaus as a current installment loan.
Deposit loan programs are an excellent tool to build your credit quickly. Once you make your final payment, using our example of 3 months, the account gets reported to the credit bureaus as a paid installment loan of $25,000.
Typically, this program can increase your credit score 80 to 100 points in as little as 3 months.
Published by Fed Up American
The dark underbelly of America contains numerous warts, boils, and cancerous tumors, inflicted by that loathsome grimoire of madness that the elected leaders of our nation have become. Well, I'm Fed Up an... View profile
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- A score is between 500 and 619, you will typically have a down payment of 30%.
- Consumers with a score of 620 to 699 typically do what are known as SIVA loans
- A score is between 620 and 699, your down payment could be as low as 5%.
11 Comments
Post a Commentcan I get the names of banks that deal with deposit loan programs because Itry www.try.tc and got nonthing please help datayman5750@netzero.com thank you
I am a commercial bank loan officer. I've refinanced a few of the Deposit Loans done by Trade Capital. The program works if you pay attention and pay on time. If you miss your first payment, or can't afford your payments, you won't like the credit reporting. But if you take it seriously, you will have no problem.
I've sent some clients to Jonathan Warren at Trade Capital Company too. No problems. If you get a Standard Deposit Loan with them, and you don't have any derogatory credit for 24 months, they will get you a line of credit with us or a half dozen other banks. Better for $100,000. to $1 mil. Too complicated for consumers.
I used a deposit loan with Trade Capital Company to improve my business credit. It worked perfect. They got it on Experian Business. I also got D&B to confirm it. It did take a little over a month to show up. But you have the description a little off. You just borrow funds to hold them on deposit, and later give the deposit back. Meanwhile you just make monthly interest payments. I think your description is a bit confusing here. Also, they don't do any fake 'seasoning' of the funds. And, If you DON'T pay on time, it will hurt your credit. I think some of the comments in here are people who couldn't pay and are trying to get back at Trade Capital.
Hi just to let all of you know about Deposit Loan Programs. Do not; I warn you do not apply through Try.Tc aka (Trade Capital Company). They have not reported my account or started to draw from my savings or checking to pay off the interest required for the loan to be valid as a certified paid for loan when the year is up (yes, 1 year is required through Trade Capital Company). This loan is not reported to the 3 major credit bureaus unless any payment is drawn. I have gotten a loan for 50,000K and only a verification or VOD is valid but no reporting to the credit bureaus. I too am warning you, do not go for this scam. The main point of getting this type of loan is to get good credit, credit that is reported to the credit bureaus for proof of good-with standing credit.
Don't apply through Trade Capital Company. You will find a problem getting your payments reported to the 3 major credit bureaus do due fraudulent claims of the President: Jonathan Warren. You were warned. Look up a google search and look below the page.
Check out http://www.try.tc/apps.html but it might be a little more than 1%.
ladybug where is trade capital located
dlp programs in chicago
Trade Capital offers this.
Im having a hard time finding a bank who does the DLP ... most of them tell me that they only do secured lines of credit, with a rate of prime+2 or 3 points.... can you please refer me to the institution who offer such a program at 1% ?
Thank you in advance ..( great info) )