|
Loan Programs and Loan Options In today's lending market there are many options to choose from. Sometimes the differences in these programs can be subtle but signi ficant. We offer a variety of loan programs to fit your needs. This page provides an overview of many of the different programs on t he market. Contact us to find out what programs are currently available, or for any other related questions.
80/10/10 - This is a loan which carries a second mortgage for up to 10% 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 10% down payment and then finances a first mortgage up to the FNMA/FHLMC limit and a second mortgage of up to 10% of the purchase price. A variation of this strategy may be to avoid Jumbo Loan interest rates. For Example: Purchase a home for 600k with 10% down. To avoid Jumbo rates you could get a 417k First Mortgage with a 123k Second Mortgage. (600k-60k down payment) The overall rate on the money borrowed is usually less usning this strategy. It is now difficult to find the 10% second mortgage now. FHA MORTGAGE ~V Backed by the Department of Housing and Urban Development this mortgage offers the borrower the ability to put as little a 3.5% down payment and they can even finance ~Sallowable~T closing costs. Seller can contribute up to 6% of the purchase price to the buyer towards closing costs. With the use of a down payment assistance program this can be made into a ZERO DOWN loan. The Federal Government has just revamped the FHA and raised it's lending limits in Maricopa County to $346,250! Call for more details. 203K FHA MORTGAGE ~V 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~E VA MORTGAGE ~V 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. JUMBO LOANS - Jumbo loans are loans that are over 417k in Maricopa County. With new legislation, many counties offer higher loan amounts that are not considered 'Jumbo'. Offers 30 and 15 year fixed rate mortgage and competitive ARM (Adjustable Rate Mortgage) products with full document, alternate documentation and limited documentation. Cash out and No cash out refinances are allowable. Single family detached, Condo~Rs, PUD~Rs and single-family second homes can be financed with no prepayment penalty. Jumbo Loans normally carry a higher rate than non-Jumbo loans. EMERGING MARKETS PROGRAM ~V 0% Down payment required and closing costs can be financed up to 105% of the purchase price. Only single-family homes that will be owner occupied are eligible. First time home buyer status not required and there are no income limits. This loan is currently unavailable in Maricopa County due to the "Declining Market" designation. ZERO DOWN PROGRAMS ~V Loans that the lender does not require a down payment and sellers are permitted to pay the buyer's closing costs. These types of programs include but are not limited to; FHA with Down Payment Assistance, IDA Bond Program, My Community, Emerging Markets, USDA Rural Housing Loan. Maricopa County has very limited zero down programs due to being designated as a "Declining Market". Call for more details. NO DOC/STATED INCOME - Loans where your income is not requested or verified are stated income loans. There are very few of these types of loans available today. 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. Unfortunately in today's mortgage market, most lenders and banks have eliminated this type of loan from their portfolios. There are very few options when it comes to this type of loan. INTEREST ONLY - This is one of the most misunderstood terms in mortgages. "Interest Only" loans are NOT specific types of loans. They are an OPTION that can be added to almost any type of loan; 30 year fixed, 5 year ARM, 3 year ARM, etc. Exercising this option allows the borrower to pay only the interest that has accrued without any payment to the loan principle. At any time the borrower may make payments to the principle if they would like. 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. These are also unavailable in Maricopa County due to the 'Declining Markets' designation. A- THRU D LOANS ~V These mortgages are for the credit challenged. They can vary from slightly damaged credit to severely damaged. These are also called Subprime loans. Almost 95% of these options have been eliminated from lenders' portfolios. Most banks that specialized in these loans have since gone out of business. 2ND MORTGAGE LOANS ~V 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. Most lenders will now lend up to 75-80% of your homes value for 2nd mortgages and Lines of Credit. 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. Also well qualified borrowers are many times able to exceed traditional Debt to Income guidelines. 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. INVESTOR LOANS ~V Used to finance 1-4 unit family properties that will be for investment. Theses loans traditionally carry higher interest rates than loans used to purchase a primary residence. In Maricopa County today there are opportunities to purchase investment homes with little or no money down using a combination of different types of creative financing. PROGRAM NOT AVAILABLE IN NEW YORK. Click here to contact us for more information on any of these programs.
|
 |
|||||||||||||||||||
|
|||||||||||||||||||
 |
|||||||||||||||||||
|
|
||||||||||||||||||
