Pension Loan Financing Made Easy
Pension advances, commonly misnamed pension loans are one of the fastest ways to acquire an unrestricted access to cash. Pension financing allows you to exchange your future pension payments, for a large lump sum of money now. Whether you need to take care of some unexpected bills, or need money for something such as an investment opportunity, pension financing can help. Pension advances have no approval limit and are based on the current value of your pension. This means you are not required to have excellent credit for approval. As a matter of fact, this is a great option for individuals with less than perfect credit.
If a pension advance sounds like something that may meet your needs, Life House Financial can help you get approved at the best rates and terms possible. As a leader in all types of personal loan financing, we will provide you with all options so you can decide which is best for your situation. Even though a pension loan or advance may seem like a good idea, there may be other financing solutions that can offer you a better rate and term. Using your pension to get the money you need should not be taken lightly, and is usually only considered if other types of lending is unattainable.
We have experts standing by ready to speak with you about all your options, and will give you the pros and cons of each financing product currently available so you can decide what is best. Our service is free and there is never any obligation to proceed if you are not satisfied with the results. Get started today!
Pension Advance Financing Explained
Pension financing, commonly referred to as a pension loan or pension advance can be a great way for individuals with accrued equity in a pension or annuity plan to to borrow money. Pension financing loans will normally require a borrower to sign over the rights to a certain number of future pension payments as collateral, in exchange for a lump sum payment. In some cases, the lender may purchase the pension or annuity in its entirety. This type of loan arrangement allows a borrower with any credit standing to obtain financing.
Types of Pension Loan Financing
There are several types of pension financing that a borrower has to choose from. Life House Financial can provide you with access to all possible pension financing options, and is here to answer all your questions. The basic types of pension financing include:
- Direct pension buyout – In a direct buyout, a borrower is required to waive all rights to their future payments, in exchange for a sizable lump sum of cash that can be used for any purpose. This financing option is not a loan, but instead a sale of a pension or annuity.
- Partial pension buyout – In a partial buyout, a borrower is required to transfer the rights to a certain number of pension or annuity payments, in exchange for a smaller cash payment. The agreement may be for a set number of payments or for an agreed-upon number of years. When the agreement expires, the rights to the pension or annuity payments are reverted back to the borrower.
- Traditional pension loans – Traditional pension loans use the equity in a pension as collateral. This is similar to a traditional secured installment loan. The duration and payment amount required for this loan type varies and depends on the lender. In some cases, a lender may offer a line of credit option instead of an installment loan.
Pension Buyout Lender Requirements for Approval
In order to obtain a pension buyout or advance, you will need a certain amount of equity in your pension. Most financial institutions require that your pension be fully vested, in order for a sale of your future pension payments to occur. If you are interested in a traditional pension loan, your credit history will be taken into account and can affect the rate and term you are offered. Because each pension financing company offers different products and rates, it is recommend you comparison shop. Its important you understand pension advance financing products can have significantly higher rates then other types of personal loan financing, so comparing your options is a must.
Life House Financial allows you to comprehensively compare your options side by side. At Life House Financial, our mission is to help you locate the best financing solution for your short or long-term financial needs. If you need money, and want the best rate possible, let us show you why so many Americans have trusted us with their financing needs over the years. We'd be happy to help you identify your best options, and are here to answer all your financing questions, including those on pension loans and the lenders offering this great financing product.