State Health Care Plans Defined – According to Census Bureau

The United States Census Bureau splits all insurance coverage into two groups. It is either private coverage or coverage through the government. These two groups have divisions within each group. There are three divisions in the private coverage group; and likewise, three divisions in the governmental group.The government insurance coverage is classified as Federal Health Care Plans, State Health Care Plans and Local Health Care Plans. Each plan is funded by the government at that level. In addition to these three classifications, there are six categories of government insurance coverage. They are Medicare, Medicaid, SCHIP, Military Health Care, State-specific plans and Indian Health Service.Most people know that Medicare is for people sixty-five and over and for some people with disabilities who are under sixty-five. Many people have heard of Medicaid, and know that it is Health Care for low income but are not really sure what the coverage area includes.Medicaid is one of the State Health Care Plans which is administered by the state and was developed for low or no-income families. This insurance is not for individuals or people who are married with no children, unless they are blind, disabled or aged and are in financial need. Depending on the state, Medicaid may be called by a different name.SCHIP or the State Children’s Health Insurance Program is one of the State Health Care Plans that is given matching funds from the federal government so that health insurance may be provided to families with children. SCHIP was created to give health insurance to families with children who have income that is high enough they do not qualify for low income programs such as Medicaid and have no other source of insurance for their children.Every state has one of the approved State Health Care Plans for SCHIP coverage. Each state can develop their own SCHIP eligibility requirements and policies, but they must stay within the wide-ranging federal guidelines. In some states, the SCHIP funds can be used to cover pregnant women, the parents of children who are also receiving benefits from Medicaid, and other adults.However, even with this coverage in place the number of uninsured children in the United States continues to rise. The Vimo Research Group conducted a study in October of 2007 that concluded 68.7 percent of these children were in families whose incomes were two hundred percent of the federal poverty level or higher. Several states had deficits in their SCHIP funding in fiscal year 2008.

Business Owners, Beware When Shopping For A Commercial Mortgage

Entrepreneurs that have been through the process of purchasing a commercial property for their business, understand the complexity of the process. Securing financing is just one part of the equation – which in and of itself is cumbersome and borrowers literally have 100′s of loan option to choose from.A very common mistake we see is that entrepreneurs assume they will get the best deal from their existing bank. It’s a logical assumption. After all, the business has their checking/savings account, perhaps they have other services such as their 401 k etc tied in with their bank. And they have personal relationships with the people and assume this will help them get a break/edge. The reality is that traditional banks have the most conservative underwriting standards and offer some of the shortest fixed periods and amortization schedules in the market.To often the business owner simply does not shop and get lured into a short term loan that either adjusts, from once a quarter to once every 5 years or full on balloons. This puts the business owner in a very vulnerable position as rates/terms could be much worse when the loan adjusts or balloons.Another issue of having your commercial mortgage held by your bank that has your deposits is a nasty little provision called the “right to offset”. This means that the bank has the right to enter your checking/savings account (business or personal) and remove cash to “offset” the balance that’s owed on the mortgage. Banks only exercise this right in times of distress/default but it is dangerous for the borrower and often comes when the business owner has the biggest need for cash – in bad times.There are many more options out there than most entrepreneurs realize. For example, there’s a little known 30 year fixed commercial loan that has rates and fees right in line with bank financing, but the loan is fixed for 30 years. The borrower can enjoy piece of mind knowing they never have to worry about refinancing or having their rate adjust in the future.In addition, because of the long amortization period the cash flow savings can be substantial – often 15% – 25% less than a typically 5 year fixed 20 year amortization bank loan.Business owners may consider working with an experienced broker that is in touch with innovative commercial mortgage programs that are not offered by banks. A broker normally works with several different lenders, each of which has multiple programs. So, by working with a broker the borrower is exposed to many different options, and only has to deal with one source. Essentially the broker’s market knowledge can quickly and efficiently point out all relevant options that fit the business owner’s situation.A common misperception is that brokers will add a substantial cost onto the loan, which is simply not the case. A good broker will create a competitive situation between banks/lenders and should save the borrower money, not just tack on an additional origination fee. Likewise, most brokers now get paid directly from the lender on deals from $200,000 – $5,000,000, so the entrepreneur doesn’t have to worry about that.Regardless, if the borrower wants to shop on their own or work with a broker it is in the best interests of the entrepreneur to get out there and explore options. Don’t simply assume that your existing bank has your best interest at heart, because they don’t.

Commercial Mortgage Loan – Biggest Mistakes

Commercial mortgage loans can be complex and getting them closed and funded can be a challenge. And some loans are harder to close than others. No matter how difficult a given borrowers situation is, one of the biggest mistakes a borrower can make is to “misrepresent” the truth about their situation on their commercial mortgage loan. And this includes borrowers is really difficult scenarios.It is important for borrowers in tough spots (or really any borrowers) to realize that underwriters are there to verify and prove all components of the commercial mortgage loan. They are actively “policing” the loan and looking for fraud and or misrepresentation. That is there job. Their mentality is guilty until proven innocent.Borrowers in a difficult situations that have perhaps been turned down from a few banks, learn what the banks didn’t like about their deal and sometimes make the mistake of “altering” their story in hopes that the issue will go undiscovered or that they will somehow outwit professional commercial loan underwriters.Besides just being shady or simply dumb, this strategy is often a complete waste of time, energy and money for all involved and especially the borrower. Underwriters almost always discover the truth.Keep in mind that the typical commercial mortgage loan process starts with an initial loan underwriting/review. After the major points of the loan are looked at and confirmed to be acceptable, banks issue a Letter of Intent or Term Sheet which spell out the details of terms of the proposed loan AND the require a good faith deposit to ensure that the borrower is committed to working with the bank. N This deposit will also be used to cover third party report later on. This deposit, which is normally between $5,000 -$10,000 or more is almost always refundable.However, there is always language in the Letter of Intent explaining that one of the conditions to the deposit being refundable is that the borrower cannot misrepresent their situation. If the bank finds that the borrower has been hiding, leaving out or just plain lying their deposit will be forfeited and not refunded.The better strategy for the borrower is to roll up their shirt sleeves and get to work. Find a list of say fifty or so banks and call all of them. Disclose all the facts of the commercial mortgage loan. It doesn’t have to be a sob story either, just give the facts. For example if your credit score is a 580 you don’t have to go into a long story about what happened unless asked. Once you find a bank that is interested you’ll have real chance of closing your commercial mortgage loan and not having it declined two months into process.