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COMBINATION LOANS - This is a loan which carries a second
mortgage for up to 20% of the purchase price of the property. It is
usually used when wishing to avoid PMI insurance or to keep your first
mortgage under the FNMA/FHLMC limit to avoid Jumbo rates. The borrower
finances a first mortgage up
to the FNMA/FHLMC limit and a second mortgage of up to 20% of the
purchase price. Variations typically include 80/15/5 80/10/10 or 75/15/5.
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FHA MORTGAGE – Backed by the Department of Housing
and Urban Development this mortgage offers the borrower the ability
to put as little a 3% down payment and they can even finance “allowable”
closing costs. Seller can contribute up to 6% of the purchase price
to the buyer towards closing costs.
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VA MORTGAGE – Backed by the Veterans Administration
and the federal government it is similar to FHA except that you have
to be a qualified Veteran or military person.
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JUMBO LOANS - These are loans that
exceed the FannieMae, FreddieMac loan limit of $333,700 but usually
under $650,000. Offers 30 and 15 year fixed rate
mortgage and competitive ARM products with full document, alternate
documentation and limited documentation. Interest only is
available or the use of a combination loan to stay within the
conforming loan limits.
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103, 105, 107% DOWN PROGRAMS – 0% Down payment required
and closing costs can be financed up to 107% of the purchase price.
Only single-family homes that will be owner occupied are eligible.
First time homebuyer status not required and there are no income
limits. Mortgage insurance will be part of these loans. back to top
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ZERO DOWN PROGRAMS 100% loan – Same as above only the borrower
pays for closing costs or can have the seller contribute up to 6%
towards closing costs. back to top |
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NO DOC/STATED INCOME - Loans where your income
is not requested or verified with as little as 10% down are stated
income loans. There are several varieties of the "no-doc"
loan today. Basically the type of loan that is best suited for a particular
borrower depends on that borrower's situation. Some borrowers choose
not to disclose employment, income or asset information, while others
may be willing to disclose employment and asset information but not
income. Still others might be willing to disclose even income but
select a program that doesn't calculate debt-to-income ratios allowing
those borrowers to exceed the traditional guidelines in order to qualify
for a larger mortgage amount. With all the different variations of
the no-doc loan, there is definitely a mortgage program for today's
non-conventional borrowers. back to top |
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FLEX 97/100% - Similar to FHA but
without maximum mortgage amount limitations. Must be a single family,
owner occupied home and borrower must have a credit score of over 680.
Used as a low down payment closing cost alternative instead of the
combination loans. Still includes Mortgage insurance as part of
the payment.
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A- THRU D LOANS – These mortgages are for
both the individual without traditional credit bureau information
and the credit challenged. They can vary from people who choose not to
use credit (pay cash for most things) and individuals with slightly damaged credit
to severely damaged credit. Whatever the situation we have a mortgage that
will address this. ***Note: The actual rates/terms are
very close to the "A" credit loans. back to top |
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2ND MORTGAGE LOANS – Subordinate to
the first mortgage these loans offer the borrower the ability to get
money for home improvement, debt consolidation or many other reasons
without disturbing their first mortgage. Convenient when you have
a low interest first mortgage. back to top
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125% 2nd MORTGAGE – Same as above
but the 2nd mortgage lending but is up to 125% of the value
of the home. back to top
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HIGH DEBT RATIO LOANS - Borrowers having the
ratio of their monthly bills to their monthly income higher than 50%
is considered a high debt ratio. Loan programs are available
for these borrowers, allowing them to finance the purchase of a home
or property. back to top
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INVESTOR LOANS – Used to finance 1-4 family properties
that will be for investment with as little as a 5% down payment.
Aggressively priced these programs have many variations such as NO
DOC, LIMITED DOC and FULL DOC.
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INTEREST ONLY LOANS – This is
actually a feature or variation to the typical principal and interest
amortized loans. Your obligated payment is the interest only,
you are responsible for adding any additional amount you want to go
towards the principal. These loans have various triggers for
full amortization/payoffs - ensure you understand the details.
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SUPER JUMBO – Loans that are
usually above the typical Jumbo loan limit of $650,000. These
are readily available up to $2Million, anything over this becomes even
more of a niche product with limited sources..
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FIXED LOANS – These loans are the
bread and butter loans that the average person is aware of.
These loans are the principal, interest, taxes and insurance full
payment loans amortized over a fixed period of time - 30, 20, 15 years
typically. They were the only choice for so many years that the
public came to accept them as the "best" loan. This may or may
not be true for your situtation and you should carefully consider your
short and long term needs before selecting ANY loan program.
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ADJUSTABLE RATE MORTGAGES (ARMs) –
These loans are designed to be fixed for a specific time without
change and then begin to adjust UP and DOWN based on a pre-determined
index and time interval. Extremely popular but very
misrepresented by most loan officers. As with all loans these
are designed for specific purposes and should meet your needs for the
appropriate short/long term needs you have. Indexes
(Treasury, LIBOR, COFI, MTA
etc), adjustment periods/caps and amortizations have
significant impact on the specific program you should select.
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HOME EQUITY LINE of CREDIT (HELOC) –
These loans can be used as either the primary or 2nd mortgage.
Their primary appeal has been the ability to withdraw the available
equity without having to incur refinance costs. Most also
feature an interest only minimum payment option. Be aware of the
details and features of this particular type of loan.
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You may qualify to buy a property with no
money down and a variety of structures. The
relation between the property value and the mortgage debt is
a determining factor, providing the standard basic requirements are
met.