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80/15/5 - This is a loan
which carries a second mortgage for up to 15% 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 puts down a 5% down payment and
then finances a first mortgage up to the FNMA/FHLMC limit and a
second mortgage of up to 15% of the purchase price. Other variations
are 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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203K FHA MORTGAGE – Same
as FHA above but with the ability to finance home improvements that
are needed. One mortgage is given based on the value plus
improvements up to 115% of the future value. These improvements must
be over $5000 and can be for a new kitchen, new bathroom, to add a
garage or to structurally improve the property. They cannot be to
add a swimming pool etc…
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JUMBO LOANS - Offers 30 and
15 year fixed rate mortgage and competitive ARM products with full
document, alternate documentation and limited documentation.
Cash out and No cash out refinance are
allowable. Single family detached, Condo’s, PUD’s and
single-family second homes can be financed with no prepayment
penalty.
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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.
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ZERO DOWN PROGRAMS – Same
as above only the borrower pays for closing costs or can have the
seller contribute up to 6% towards closing costs.
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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.
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FLEX 97% - 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.
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A- THRU D LOANS – These
mortgages are for the credit challenged. They can vary from slightly
damaged credit to severely damaged. Whatever the situation we have a
mortgage that will get you back on track.
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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.
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125% 2nd MORTGAGE
– Same as above but the 2nd mortgage we will lend up to
125% of the value of the home.
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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.
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CONSTRUCTION LOANS -
Building a new home can be an exciting prospect - unless you get
caught up in a construction loan approval process that's overly
complicated and time consuming. With this loan we will finance up to
90% of the cost of land plus the costs of construction. We offer a
one time fixed rate closing or the traditional ARM products.
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INVESTOR LOANS – Used to
finance 1-4 family properties that will be for investment with as
little as a 10% down payment. Aggressively priced these programs
have many variations such as NO DOC, LIMITED DOC and FULL DOC.
PROGRAM NOT AVAILABLE IN NEW YORK.
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Fixed Rate Mortgages
- 30 year fixed
- 15 year fixed
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- Monthly payments are fixed over the life of the
loan
- Interest rate does not change
- Protected if rates go up
- Can refinance if rates go down
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- Higher interest rate
- Higher mortgage payments
- Rate does not drop if interest rates improve
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Adjustable Rate Mortgages
- 10/1 ARM
- 7/1 ARM
- 3/1 ARM
- 1 year ARM
- 6 month ARM
- 1 month ARM
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- Lower initial monthly payment
- Lower payment over a shorter period of time
- Rates and payments may go down if rates improve
- May qualify for higher loan amounts
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- More risk
- Payments may change over time
- Potential for high payments if rates go up
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Balloon Mortgages
- 7 year
- 5 year
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- Lower initial monthly payment
- Lower payment over a shorter period of time
- Many balloon mortgages offer the option to convert
to a new loan after the initial term.
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- Risk of rates being higher at the end of the
initial fixed period
- Risk of foreclosure if you cannot make balloon
payment or if you cannot refinance or if you cannot exercise the
conversion option
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First Time Buyer Programs |
- Lower down payment
- Easier to qualify
- Sometimes you may get lower rates
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- May be subject to income and property value
limitations
- Some programs which have government subsidies may
have a recapture tax if you sell the house too early.
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Stated Income Programs |
- Don’t need to verify income
- Faster approval
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- Higher rates
- Higher down payment
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No point, No fee Programs |
- No closing costs
- Less money required to close
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- Higher rates
- Higher payments
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Imperfect Credit Programs |
- Potential for reestablishing credit if you pay your
mortgage on time.
- When used for debt consolidation, you may be able
to reduce your monthly debt payment
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- Higher rates
- Terms may not be as favorable
- Harder to get long term fixed loans
- Loans may have prepayment penalties
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Home Equity Line of Credit |
- You only borrow what you need
- Pay interest only on what you borrow
- Flexible access to funds
- Interest may be tax deductible
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- Rates can change. The maximum interest rate is
normally high.
- Payments can change
- Harder to refinance your first mortgage
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Home Equity Fixed Loan |
- Fixed payments
- Interest may be tax deductible
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- Higher interest rates than on 1st
mortgages
- Harder to refinance your first mortgage
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