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Mortgage Products
Choosing the wrong mortgage program can literally cost a home buyer thousands of dollars in interest costs over the life of the mortgage. To select the right mortgage program, you should consider the following factors: lifestyle, age, profession, possibility of professional relocation, marital status, family growth plans, risk tolerance and length of time you realistically plan to own the property.
Listed below are a few of our mortgage programs with some mortgage product definitions.
Fixed Rates
The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage. Common fixed rate mortgages are 30, 25, 20, 15, and 10 years.
The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage. Common fixed rate mortgages are 30, 25, 20, 15, and 10 years.
Adjustable Rate Mortgages (ARMs)
The mortgage interest rate will not remain the same throughout the term of the mortgage, which is usually 30 or 15 years. The interest rate will change after the initial fixed rate period. The initial fixed rate period for an ARM may be as short as 1, 3, and 6 months or as long as 3, 5, 7, and 10 years. The interest cannot change during the initial fixed rate period.
The mortgage interest rate will not remain the same throughout the term of the mortgage, which is usually 30 or 15 years. The interest rate will change after the initial fixed rate period. The initial fixed rate period for an ARM may be as short as 1, 3, and 6 months or as long as 3, 5, 7, and 10 years. The interest cannot change during the initial fixed rate period.
Balloons
A short term fixed rate mortgage that requires a very large payment at the end of the loan. Balloons commonly are offered for 5 and 7 years. Some balloon loans can be extended and converted to a longer term fixed rate mortgage.
A short term fixed rate mortgage that requires a very large payment at the end of the loan. Balloons commonly are offered for 5 and 7 years. Some balloon loans can be extended and converted to a longer term fixed rate mortgage.
Interest Only
Interest Only products allow borrowers to make lower payments for the first years of a fixed-rate or adjustable-rate mortgage by offering an interest-only period during the early years of the loan, followed by a fully amortizing period.
Interest Only products allow borrowers to make lower payments for the first years of a fixed-rate or adjustable-rate mortgage by offering an interest-only period during the early years of the loan, followed by a fully amortizing period.
Standard Products
80/20
This product has two loans and no private mortgage insurance. The sum of the two loans is equal to the purchase price or appraised value. This program require as little as $500 from the borrower. This programs is designed for borrower's with excellent credit and some reserves (funds left over closing, including retirement funds).
This product has two loans and no private mortgage insurance. The sum of the two loans is equal to the purchase price or appraised value. This program require as little as $500 from the borrower. This programs is designed for borrower's with excellent credit and some reserves (funds left over closing, including retirement funds).
80/15/5
This product offers a 5% down payment without Private Mortgage Insurance. The first mortgage is 80% of the purchase price, the second mortgage is 15% of the purchase price, with 5% remaining as a down payment; thus the term 80/15/5. For example, if you buy a home for $100,000, you will have a first mortgage of $80,000 and a second mortgage of $15,000 with a $5,000 down payment. The second mortgage can be a fixed rate, which is typically higher than the first mortgage, or a HELOC with an interest-only payment and a rate that floats on prime.
This product offers a 5% down payment without Private Mortgage Insurance. The first mortgage is 80% of the purchase price, the second mortgage is 15% of the purchase price, with 5% remaining as a down payment; thus the term 80/15/5. For example, if you buy a home for $100,000, you will have a first mortgage of $80,000 and a second mortgage of $15,000 with a $5,000 down payment. The second mortgage can be a fixed rate, which is typically higher than the first mortgage, or a HELOC with an interest-only payment and a rate that floats on prime.
80/10/10
This product offers a 10% down payment without Private Mortgage Insurance. The first mortgage is 80% of the purchase price the second mortgage is 10% of the purchase price, with 10% remaining as a down payment; thus the term 80/10/10. For example, if you buy a home for $100,000, you will have a first mortgage of $80,000 and a second mortgage of $10,000 with a $10,000 down payment. The second mortgage can be a fixed rate, which is typically higher than the first mortgage, or a HELOC with an interest-only payment and a rate that floats on prime.
This product offers a 10% down payment without Private Mortgage Insurance. The first mortgage is 80% of the purchase price the second mortgage is 10% of the purchase price, with 10% remaining as a down payment; thus the term 80/10/10. For example, if you buy a home for $100,000, you will have a first mortgage of $80,000 and a second mortgage of $10,000 with a $10,000 down payment. The second mortgage can be a fixed rate, which is typically higher than the first mortgage, or a HELOC with an interest-only payment and a rate that floats on prime.
LPMI
LPMI stands for "Lender Paid Mortgage Insurance". This program has one loan that is over 80% loan-to-value without Private Mortgage Insurance. The interest rate is higher than the borrower-paid mortgage insurance, but a typical payment is lower. The mortgage interest is tax deductible.
LPMI stands for "Lender Paid Mortgage Insurance". This program has one loan that is over 80% loan-to-value without Private Mortgage Insurance. The interest rate is higher than the borrower-paid mortgage insurance, but a typical payment is lower. The mortgage interest is tax deductible.
No Private Mortgage Insurance (PMI)
80/20
This product has two loans and no private mortgage insurance. The sum of the two loans is equal to the purchase price or appraised value. This program require as little as $500 from the borrower. This programs is designed for borrower's with excellent credit and some reserves (funds left over closing, including retirement funds).
This product has two loans and no private mortgage insurance. The sum of the two loans is equal to the purchase price or appraised value. This program require as little as $500 from the borrower. This programs is designed for borrower's with excellent credit and some reserves (funds left over closing, including retirement funds).
103% financing
With the 103% program, you can buy a house with zero down, and also finance your closing costs or first year's mortgage insurance premium. Eligibility is based heavily on the borrower’s credit score and total debt-to-income ratios.
With the 103% program, you can buy a house with zero down, and also finance your closing costs or first year's mortgage insurance premium. Eligibility is based heavily on the borrower’s credit score and total debt-to-income ratios.
100% financing
With 100% financing, the loan amount is equal to the purchase price or appraised value. This program requires as little as $500 from the borrower. This program is designed for borrower's with good credit and some reserves (funds left over closing, including retirement funds). Private mortgage insurance is required.
With 100% financing, the loan amount is equal to the purchase price or appraised value. This program requires as little as $500 from the borrower. This program is designed for borrower's with good credit and some reserves (funds left over closing, including retirement funds). Private mortgage insurance is required.
97% financing
Loan amount is equal to 97% of the purchase price or appraised value. This program requires a 3% down payment and is subject to income limitations (the borrower cannot earn more than the median income level for the area the home is located in). In addition the borrower is required to complete a telephone homebuyer education course. This program is designed for borrowers with good credit, 3% to put down, and some reserves (funds left over closing, including retirement funds). Private mortgage insurance is required. This loan offers a lower interest rate than 100% financing.
Loan amount is equal to 97% of the purchase price or appraised value. This program requires a 3% down payment and is subject to income limitations (the borrower cannot earn more than the median income level for the area the home is located in). In addition the borrower is required to complete a telephone homebuyer education course. This program is designed for borrowers with good credit, 3% to put down, and some reserves (funds left over closing, including retirement funds). Private mortgage insurance is required. This loan offers a lower interest rate than 100% financing.
FHA (Federal Housing Administation)
This program requires a down payment of 2.75% of the purchase price. The down payment can come from the seller, a gift from a relative, or from a down payment assistance program. This program does not require a minimum credit score or reserves. It is designed for borrowers with stable income, minimal funds to close, and less than a perfect or average credit history. FHA mortgage insurance is required.
This program requires a down payment of 2.75% of the purchase price. The down payment can come from the seller, a gift from a relative, or from a down payment assistance program. This program does not require a minimum credit score or reserves. It is designed for borrowers with stable income, minimal funds to close, and less than a perfect or average credit history. FHA mortgage insurance is required.
1st Time Homebuyer/Minimum Down Payment
HELOC
A HELOC is an interest-only line of credit that is secured to your home. It is typically used as a second mortgage, although first mortgage HELOCs are available. HELOC payments are calculated based on your current balance, and the rate floats on prime plus a margin. You can pay the line of credit down or access additional funds by using checks and/or a credit card.
A HELOC is an interest-only line of credit that is secured to your home. It is typically used as a second mortgage, although first mortgage HELOCs are available. HELOC payments are calculated based on your current balance, and the rate floats on prime plus a margin. You can pay the line of credit down or access additional funds by using checks and/or a credit card.
1st Lien HELOC
"First lien position" means that this is a first mortgage, with an interest-only payment that floats on prime plus a margin. This product is good for borrowers who are looking to lower their mortgage payment on a very short-term basis, or to take some cash out without increasing their payment dramatically.
"First lien position" means that this is a first mortgage, with an interest-only payment that floats on prime plus a margin. This product is good for borrowers who are looking to lower their mortgage payment on a very short-term basis, or to take some cash out without increasing their payment dramatically.
Stated Income HELOC
A standard HELOC in which the borrower's income is not verified by paystubs, W-2s or tax returns. Borrowers may be self-employed, but it is not always a requirement.
A standard HELOC in which the borrower's income is not verified by paystubs, W-2s or tax returns. Borrowers may be self-employed, but it is not always a requirement.
Fixed Rate Second Mortgage
A fixed rate second mortgage is useful for borrowers with less than 20% equity in their home. This mortgage allows you to borrow anywhere between 81 and 100% of your home's value without paying private mortgage insurance. It is typically a fixed rate balloon, with 30 year amortization, due in 15 years.
A fixed rate second mortgage is useful for borrowers with less than 20% equity in their home. This mortgage allows you to borrow anywhere between 81 and 100% of your home's value without paying private mortgage insurance. It is typically a fixed rate balloon, with 30 year amortization, due in 15 years.
Equity Loans
One Time Closing
The One-time Closing loan is a construction loan for home buyers who have contracted a licensed General Contractor to build their home. This loan features an initial one-time rate lock and closing prior to construction. The builder will make draws from this interest-only loan during construction, and once the project is complete the loan is automatically converted to a conventional loan and is amortized over thirty years.
The One-time Closing loan is a construction loan for home buyers who have contracted a licensed General Contractor to build their home. This loan features an initial one-time rate lock and closing prior to construction. The builder will make draws from this interest-only loan during construction, and once the project is complete the loan is automatically converted to a conventional loan and is amortized over thirty years.
Two Time Closing
The Two-time closing loan includes a 12-month construction period with an interest-only rate based on the floating prime rate plus a margin. When construction is complete, a separate permanent loan pays off the construction loan.
The Two-time closing loan includes a 12-month construction period with an interest-only rate based on the floating prime rate plus a margin. When construction is complete, a separate permanent loan pays off the construction loan.
Renovation Loan
A renovation loan gives you the funds to purchase a home and renovation, all in a single loan. Unlike first mortgages with a home equity loan to fund renovations, the amount of money you are permitted to borrow with a renovation loan is based on the home's value after improvements are made.
A renovation loan gives you the funds to purchase a home and renovation, all in a single loan. Unlike first mortgages with a home equity loan to fund renovations, the amount of money you are permitted to borrow with a renovation loan is based on the home's value after improvements are made.
Construction Loans
Stated Income
Typically used for self-employed borrowers who write off a good portion of their income, stated income programs allow borrowers to state income on their application without presenting a tax return for proof. We also have stated income programs for borrowers who are paid on commission, bonuses, or who are W-2 wage earners. Typically borrowers must have been in the same line of work for two years. This program usually carries a higher interest rate than full documentation loans.
Typically used for self-employed borrowers who write off a good portion of their income, stated income programs allow borrowers to state income on their application without presenting a tax return for proof. We also have stated income programs for borrowers who are paid on commission, bonuses, or who are W-2 wage earners. Typically borrowers must have been in the same line of work for two years. This program usually carries a higher interest rate than full documentation loans.
No Document Loans
With a high credit score and good down payment, borrowers can get a loan without proving either income or asset documentation.
With a high credit score and good down payment, borrowers can get a loan without proving either income or asset documentation.
Bridge Loans
Often times it is not possible to sell your existing house before you close on a new house. A bridge loan gives you money from your current home's equity to make a down payment on your new home. Some of our programs require no payment during the term of the bridge loan, others require interest-only payments until you pay the loan off with proceeds from the sale of your home. A bridge loan typically has a six month term.
Often times it is not possible to sell your existing house before you close on a new house. A bridge loan gives you money from your current home's equity to make a down payment on your new home. Some of our programs require no payment during the term of the bridge loan, others require interest-only payments until you pay the loan off with proceeds from the sale of your home. A bridge loan typically has a six month term.
Temporary Buydowns
If you have money to buy a house but are payment sensitive, a temporary buydown allows you to pay money up front to lower the note rate by one or two percent for a specific term (one or two years). After the low-interest term, your rate goes up to the note rate. Since borrowers qualify at the low start rate, this program allows them to qualify for a higher purchase price.
If you have money to buy a house but are payment sensitive, a temporary buydown allows you to pay money up front to lower the note rate by one or two percent for a specific term (one or two years). After the low-interest term, your rate goes up to the note rate. Since borrowers qualify at the low start rate, this program allows them to qualify for a higher purchase price.
Option ARMs (1.95% payment)
An Option ARM typically gives you four choices of payment. 1) Low payment rate, 2) Interest only 3) Fully amortizing 30 year fixed 4)Fully amortizing 15 year fixed. The option arm interest rate will normally adjust every 1-3 months, depending on the specific program. It is common to have a negative amortization feature if you elect to pay the low payment rate option.
An Option ARM typically gives you four choices of payment. 1) Low payment rate, 2) Interest only 3) Fully amortizing 30 year fixed 4)Fully amortizing 15 year fixed. The option arm interest rate will normally adjust every 1-3 months, depending on the specific program. It is common to have a negative amortization feature if you elect to pay the low payment rate option.
Specialty Products