The Difference Between Conventional Loans and Government-Backed Loans

Prospective homeowners have many options to consider in deciding what type of loan is best aligned with their financial needs and goals. And it’s often possible to get lost in the sea of mortgage lingo without ever really understanding what all of the various terms mean.What follows is an attempt to clarify the difference between two types of mortgage loans that can be taken out for the purchase or refinance of a new home: conventional loans and government-backed loans.Conventional Loans
Conventional loans are loans that are made purely in the private sector and therefore come with no sort of backing by any federal agency. Because these types of mortgage loans don’t have any backing by a federal agency, they typically tend to have a higher down payment and credit score requirements than government sponsored loans.The amount of the down payment varies for conventional loans, but it can typically be around 10%. Now, if you’re taking out a home loan on a house that cost $500,000, that’s going to involve a $50,000 down payment cost.Most people simply don’t have that much money lying around ready to be invested. But, of course, that isn’t the case for everyone. If you’re well off with great credit and can afford it, then there are powerful incentives to look into getting a conventional mortgage. Not only will you likely get one of the better mortgage rates available, you won’t necessarily have to pay for private mortgage insurance.Government-Backed Loans
By contrast, government-backed loans are insured through some sort of government agency. The Federal Housing Agency, the Department of Veterans Affairs and the Department of Housing and Urban Development are among three of the government agencies insuring these loans.Federal Housing Administration (FHA) loans are by far the most popular and widely used government-backed loans. FHA loans constituted only a fairly modest market share of home loans, somewhere in the single digits just a few years ago.By 2011, these loans dramatically rose in popularity and now comprise 30% of all home loans being produced. This sharp rise in government-backed loans is due in part to the way the private sector has responded to the housing crisis.As more and more households were thrown into foreclosure, lenders in the private sector began tightening up their lines of credit to prospective new homeowners. They also instituted stricter requirements on the type of credit worthiness that would allow one to qualify for a home loan.Because of the stricter new requirements, FHA loans often became the only choice for people looking to qualify for a home loan.The most popular FHA loan requires that the recipient of the mortgage loan put at least 3% down, but 100% of this money can come from an external source. It may come from a gift from a relative, non-profit organization or government agency. So, in at least some sense, it is possible to get a FHA loan with zero money down.There are numerous factors that should be considered when deciding to get either a conventional or government-backed loan. But the same general rules apply. Buyers with good credit should look into conventional loans. Buyers with less than perfect credit who are looking for a low down payment and low closing costs should definitely look into getting a government-backed loan.

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What It Means To Buy Owner Financing Homes

These days, with the overabundance of existing homes already on the market for more than 90 days, conventional methods are simply not working like they used to. Add into the mix the ridiculous numbers of foreclosed homes and you wind up with a stagnant housing market. Even with sterling credit, you will jump through hoops trying to get financing to purchase a home and still wind up unapproved. The solution many are turning to is purchasing owner financing homes. This is one area that could use a change, as the average fair market value for a home today is over one million, but even with being listed at half that value, are still not selling.You have to look for those that are listed as home for sale owner financing, or for sale by owner, in the local newspapers and websites. This is the best way to find owner financing homes. If you talk to a real estate agent, they may not know of any, and just approaching a seller to ask if they can finance the sale for you will probably not work out. That said, before you start your search, it may be a good idea to learn how it works, and the benefits that comes with owner financing.What is Owner Financing?Whenever a home for sale carries that added term “owner financing”, it means that the purchase price, minus the down payment, will be part of a financial contract that exists solely between the seller and the buyer. The buyer negotiates with the seller a purchase contract that is binding, and allows for a payment plan over time that is put towards the final purchase of the home.Just like bank loans, the seller and buyer agree to an acceptable interest rate, monthly payment amount, and term of loan. In most cases, these are also called rent to own, with option to buy deals, where a portion of the monthly rent is put towards either the purchase price or the down payment, depending upon the buyer and seller’s financial position. A security instrument will be created, listing all details of the sale agreement, and will be filed with the court as would any other real estate transaction, for the protection of both parties.Types of Owner FinancingIn the case of owner financing homes, the seller will often carry the mortgage for the entire purchase price, less the down payment. This is known as an all-inclusive mortgage. When a buyer cannot get a mortgage loan on their own, this is often the best way for them to purchase a home, and the resulting loan is often in the seller’s name, rather than the buyer’s. All payments are made to the seller, who then uses them to repay the loan.Lease purchase agreements are another way to handle this kind of real estate sale. This means that the seller is giving the buyer an equitable title, and is leasing the property to the buyer. The negotiated lease payments or a portion of each payment is put towards the purchase price, less interest, until the balance is paid, and the buyer receives full and clear title to the property.Benefits of Owner FinancingFor the buyer, there are obvious benefits to this kind of purchase agreement, especially if their credit rating is not the best. The loan can also be tailored through negotiating with the seller to an affordable and reasonable monthly payment, down payment and interest rate that you know you can afford. You also get possession of the property faster, and you probably will not have to pay any extra fees or closing costs.For the seller, the owner financing homes program means that you will be able to command the full market price for your home, and you will not have to pay the full taxes on the sale that year. With an installment plan in place, you only have to pay taxes on the income from that sale collected that year, not the full amount all at once. You can offer the buyer a lower interest rate than any lender, making the sale even more attractive and it will most likely spend less time on the market than it would through an agency.

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Topics in Networking for Project and Thesis

TCP/IP ProtocolTCP(Transmission Control Protocol) is a set of rules to access the internet with interconnection of various internet-based devices. We can say it is a communication protocol in which there is a host with access to the internet. This is a good topic for an M.Tech thesis in networking. If you are planning to choose this networking topic for research, then here is some basic introduction to this.TCP/IP provides end to end data transmission between devices along with some other functionalities like addressing, mapping and acknowledgement. TCP/IP is a combination of two protocols. TCP controls the messages by dividing them into packets. IP controls the transmission of these packets from sender to the receiver.TCP/IP protocol layersFollowing are the four layers of TCP/IP:Application layerTransport layerInternet layerPhysical layerWorking of TCP/IP protocolClient/Server model is used as a mode of communication by TCP/IP. It works in the following way:Application layer consists of various applications for data exchange with use of protocols like HTTP(Hypertext Transfer Protocol), FTP(File Transfer Protocol), SMTP(Simple Mail Transfer Protocol)Transport layer provides end-to-end communication between the host and the user. It uses protocol UDP(User Datagram Protocol).Internet layer is responsible for transfer of packets over the network and uses IP(Internet Protocol) for this purpose.Physical layer provides interconnection between the nodes.Advantages of TCP/IP protocolIt can be easily modified.It is compatible with all the operating systems.It is scalable in determining the most appropriate path.Thus it is a good topic for M.Tech thesis as well as for research. A student can get thesis help on this topic from experts specialized in thesis guidance. You can also explore the internet for further details on this topic.NS2Another good computer networking topic for an M.Tech thesis is NS2. NS stands for Network Simulator. It is an open-source, discrete-event based network simulator mainly used for research purpose and for teaching. It provides help in simulating routing protocols like IP, TCP, UDP etc. It creates a simulation environment for studying the network. Following steps are followed while creating a simulation environment:Topology DefinitionDevelopment of the modelConfiguration of the linkExecutionAnalysis of the problemVisualizationNS2 create network topologies and then examines the behavior of the network under any event. The behavior is analyzed by tracing down the events. NS2 provides text-based as well as animation-based simulations.Advantages of NS2It has the ability to support multiple protocols.It can represent network traffic graphically.It can also support multiple algorithms for routing and queuing.NS2 is a very good topic for an M.Tech thesis in computer networking field. You will not only get theoretical knowledge but also practical experience of network simulator tool. You can get thesis help about NS2 from an expert who has practical knowledge about how to use this tool.MANETMANET stands for mobile ad hoc Network and is another good choice for an M.Tech thesis topic in networking. In MANET, the nodes are self-configurable and have the ability to move freely in any direction and can link with other devices frequently. MANET was originally used as military project in defense. MANET have the challenges of weak signal strength, reliability, power consumption along with some other problems.Characteristics of MANETEach node is independent in nature i.e. each node act as the host as well as the router.It is based on distributed nature of operation for security and configuration.The network is dynamic in nature I.e each node can join and exit the network at any time.The nodes in the network are associated with less memory and power.In MANET, the bandwidth remains fluctuating.MANET creates a symmetric environment such that all the nodes have identical features like responsibilities and capabilities.Hurdles in the path of MANETThere are certain hurdles in the path of MANET, which it has to overcome. Some of these are:The reliability of the transmission is affected by certain factors like data loss, interference, and blockage.The rate of transmission is limited to a certain range thus there is reduced data rate.Packet loss can occur while transmission of data.Frequent path breaks.Lack of firewall results in security issues in the network.This was just the introduction to MANET to give an overview of what it is if you are going with this topic for your M.Tech thesis.Network SecurityNetwork Security is the set of rules to ensure the safety of the network of an organization or personal network. You can choose this topic for your M.Tech thesis if you have complete understanding of how the data is transferred over the network. Network Security also include security of physical hardware devices. Network Security in software means providing authorized access to the network by means of ids and passwords.Whenever a user tries to access the network, his authenticity is checked by means of ids and passwords. This is done to prevent any malicious user entering the network by the motive of hacking it.Types of attacks to networkActive Attack – In this type of attack, a hacker tries to make changes to data while it is being sent from one node to another.Passive Attack – In this type of attack, an outsider monitors system of the organization consistently to find vulnerable ports.Network Security ToolsFollowing are some of the tools employed in network security:WiresharkAircrackSnortBackTrackNetcatThus if you really have significant knowledge(practical + theoretical) of networking tools, securitymeasures then you should choose this topic for M.Tech thesis. Besides, you will get thesis help on this topic from computer networking experts.Network TopologiesNetwork Topology is the arrangement of nodes in the network both physical and logical. It is an easy topic for M.Tech thesis. Following are some of the common physical topologies:Bus – In bus topology, each node is connected to the main cable known as bus such that every node is directly connected to every other node.Star – In star topology, each node is connected to a central hub such that all the nodes are indirectly connected to each other.Ring – In this topology, the nodes form a closed loop such that the adjacent nodes are in direct connection with each other.Token Ring – In token ring topology, a protocol is used. A token is passed from one node to another. A node that want to tansfer data should acquire the token.Mesh – In mesh network, each node is directly connected to every other node. It can be full mesh or partial mesh network.Tree – It is the interconnection of bus topology and star topology.Daisy Chain – In this topology, each node is connected to two other nodes but do not form a closed loop like ring topology.Hybrid – It is a combination of two or more topologies.If you are afraid of complex topics in networking for M.Tech thesis, then this topic is for. It is relatively simple to understand and work on. Just go for it.IPv4/IPv6It is another major topic in computer networking and also a good choice for thesis or project. Ipv4 is the fourth version of internet protocol while Ipv6 is the sixth version of internet protocol.Characteristics of IPv4It uses 32-bit address.The address is written in decimal separated by dots.The header includes a checksum.Broadcast addresses are used to send data packets to other nodes.In this the Internet Protocol Security is optional.Characteristics of Ipv6It uses 128-bit address.The address is written in hexadecimal separated by colons.The header does not include a checksum.Broadcast addresses are not used to send data packets.The Internet Security Protocol is compulsory.It is a good area to study how data transfer takes place over the internet. You will study about the IP data packets of Ipv4 and Ipv6. You can select this as your M.Tech thesis topic.OSI ModelOSI stands for open system interconnection. It is another good topic for an M.Tech thesis in computer networking field. It provides a networking framework to implement protocols in layers. There are seven layers of OSI Model:1. Physical Layer – This layer is responsible for transferring digital data from source to the destination.2. Data Link Layer – This layer checks error in data along with the MAC address. It turns bits into data frames.3. Network Layer – This layer checks whether the data has reached the destination or not by examining the source and the destination address.4. Transport Layer – This layer transfers data over the network by using TCP protocol.5. Session Layer – This layer manages the events and keep them in sequence. It supports multiple types of connections.6. Presentation Layer – It looks after the syntax along with encryption and decryption for the application layer above it.7. Application Layer – It provides end-to-end user applications using protocols like HTTP, FTP, SMTP.It is different from TCP/IP model. You will get thesis guide on this topic from computer networking experts.WLANIt stands for Wireless Local Area Network. It can be another good choice for an M.Tech thesis topic in computer networking. It is wireless distribution method that uses high-frequency radio waves with a single access point to the internet. In other words, it is a wireless communication between two or more devices such that users can move around in a limited range area. It is most commonly used in homes or offices. The component connected to WLAN is referred to as the station. There are two types of stations – Access PointClientAccess Points are the base stations that transmit and receive radio frequencies for wireless enabled devices. Clients are the mobile phones, laptops, desktops connected to the wireless network.Modes of Operation of WLANThere are two modes of operation of WLAN:Infrastructure – In infrastructure mode, base station act as the access point and all the nodes communicate through this point.Ad hoc – In Ad hoc mode, mobile devices transmit data directly using peer to peer method. In this, there is no base station.WLAN AdvantagesIt can support a large number of devices.It is easy to set up wireless LAN than installing cables for wired network.It is easier to access wireless network than a wired network.WLAN DisadvantagesIt is difficult to expand the network.It faces security issues like hacking.Interference is another problem of WLAN.WLAN is another easier topic for an M.Tech thesis. It is used everywhere. You can take thesis help on this topic from networking professionals.CryptographyIt is the science of maintaining privacy of data. It is also easy topic to choose for your M.Tech thesis in networking. There are three main objectives of cryptography used in transferring data over the network:ConfidentialityIntegrityAuthenticationCryptography employs two techniques for maintaining the privacy of data:Encryption – In encryption, the plain text is converted into some other form known as cipher text.Decryption – In this technique, the converted text I.e the cipher text is translated back to the original text.There are two algorithms for cryptography. In a symmetric key, both the sender and the receiver share the same key for encryption and decryption.In an assymmetric key, both the users have different keys respectively for encryption and decryption.This is a familiar topic and very easy to understand. Take the guidance of a thesis expert about this area to start with this topic.IEEE 802IEEE stands for Institute of Electrical and Electronics Engineers. IEEE 802 is a very challenging and a very good topic for your thesis. IEEE 802 comes under IEEE and deal with LAN(Local Area Network) and MAN(Metropolitan Area Network). It specifies certain services and protocols for data link layer and physical layer of OSI model. IEEE is further subdivided into 22 parts that cover a wide range of services.IEEE 802 subdivides data link layer into two layers namely: Logical Link Layer(LLC)Media Access Control(MAC)You can choose any of its subfields as a part of your project or thesis. It is a very good area to explore.These were some of the few topics for an M.Tech thesis in computer networking. You can also choose any one of these for research in networking or for your project. You can explore more on these topics.

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