finances

What You Need to Know About Permit and License Bonds

permit bond

Both permit and license bonds are special types of surety bond. Individuals starting businesses are required to have them before they are given their businesses licenses. A permit bond is meant to protect the end users or the consumers by ensuring that every business is abiding by all the regulations and rules.

Consumers are supposed to make claims when certain businesses fail to abide by certain regulations and rules. Such claims are made against the business Permit and License Bond. Main types of permit and license bonds include the following;

  • Freight Broker Bonds- deals with freight brokers
  • Motor vehicles Dealer Bonds- meant for the car dealersmotor dealer
  • Contractor license bond- deals with general, main and subcontractors
  • Notary Bonds-meant for the notary public
  • Money Transmitter Bond- this is for money transmitters

The following are the main facts that you need to know about these bonds

Permit and license bonds don’t protect you

These bonds are not meant for protecting businesses. Instead, they protect other individuals. They are different from insurances that protect the insured persons and their businesses. In fact, this is like insurance for other people that has been paid by you. Nothing happens with your bonds if you happen to follow the law and fulfill all your duties. Your bond will only be claimed by other people whenever you break the law or fail to fulfill certain duties. People who break these laws are forced to pay every coin of that claim. Individuals who want to protect their premises should go for Fidelity Bonds.

No fortune is incurred on Permit and License bonds

They have a specified bond amount. Individuals do not have to pay the full amount for them to get bonded. For instance, if you are required to get a bond of $ 20,000 for your profession, then you will only be required to pay a certain percentage or fraction of that amount instead of paying the entire amount. It might only cost you about $ 200. The rate paid depends on the credit score of a person.credit score

Businesses can not operate without them

Anyone having a legitimate business is required to pay for this service. Otherwise, you might end up facing financial and criminal charges for operating illegally. Licensing is a must in any business. In some states, you can face affine of up to $15,000 or a jail term of six months. Abiding by all the federal regulations and state regulations is highly recommended.

 

The requirements for FHA 203k loan eligibility

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You might be interested in buying a residential home which still has to undergo renovation. This will compel us to upgrade our living spaces. The FHA 203k program is a top recommended financing option. It has been purposefully designed to eliminate piling paperwork and ease the financing process. Previously home buyers would apply for several loans to purchase the fixer-upper. Today, those loans have been packaged under one FHA 203k Loan.

The requirements for FHA 203k loan eligibility

How does the home FHA 203k loans work?

dfgdfdgfdgdfghfghThere are properties which are perfectly located yet require significant improvements to be undertaken. Without undergoing those repairs the home might not meet your standards. Lenders too might become difficult when asked to finance properties that need repairs. The FHA 203k make it possible for users to renovate these properties. Sometimes it is described as a fund and purchase loan that allows you to borrow and make the necessary adjustments.

You might be wondering whether you are eligible for the loan or not. What are the minimum credit scores one must have attained? Is the home open to first-time buyers? Just how much cash will you have stacked? For those who are worried about their FICO credit scores or the maximum loan amounts, briefly described are he eligibility benchmarks on the 203k loans.

Credit scores

Any loan request, whether home or car related, touches on your credit score. The FHA eases the process for property buyers to get such loans. You must have attained a minimum of 620 on your FICO score and meet a 3.5 percent down payment. Having this places you in a strong position when applying for the loan. Unfortunately, if your FICO score is below 620, other requirements will be considered.

First-time buyers

If you have never owned a home within the past three years, you fit into the bracket of a first-time buyer. There will be several loan options on avail – including the FHA 203k loan program. In as much as the 203k loans are best suited for first-time buyers, they are not limited to homeowners. As long as you reside or plan on living, your eligibility is guaranteed. Your previous history on homeownership does not affect your
prospects.

Despite FHA loans being available to all, they are best suited for first-time homebuyers. Most first-timers do not have the liquidity to meet the down payment. FHA loans will only require a down payment of 3.5 percent. Other homeowners with low credit scores may find difficulty in getting approvals for their home loans. This brings them to the FHA 203k loan program.

Lending services

fdgdfgdfgdfgdfgdfgThere are several institutions such as Mortgage Loan Originators that deliver the 203k loans. Their options depend on the severity and cost of your renovation plans. They will advise you on which of your home renovation plans meet their finance options. The most notable options available for the public are Standard consultant K loan and the Limited K loan.

Homes that require over $35000 in repairs and innovations are ideally suited for the Limited K loans. This Most of these homes lack structural or foundational damages. Repairs that exceed $3500 are earmarked for the Consultant K loans.