Conforming Refinance-For borrowers with a good credit rating. Loan amounts possible
to 95%LTV. Some stated income products available with approved credit. Some restrictions
do apply.
Conforming Purchase-For borrowers looking to purchase. Must have good credit.
Possible "no money down" programs available. Restrictions apply
Non-Conforming Refinance(subprime)-For
home owners that may have low credit. These rates are usually higher than conforming
rates. These loan options are very limted now. Low LTV’s and very high rates.
Combo
Loan-A combo loan is used primarily to achieve 100% financing for purchases or refinances.
This is a first mortgage with a second mortgage added on to achieve a higher LTV.
Option
ARMs-These ARMs are based on the three most common indices for deciding rates. These
can be negative amortization loans, reverse mortgages, 2/28, 3/27, 5/1,7/1, etc.
These are popular for borrowers that are looking for a low payment creating money
for savings, investments, or extra money for high interest debt payments.
125%-A
second mortgage using 125% of the appraised value. To figure the loan amount, subtract
the balance of the first mortgage from the value at 125% of the appraised value.
Must have excellent credit for approval.
Stated Income Loan-A mortgage in which the
borrower's income is stated and not proven. The rates are higher for these types
of loans. Good for Self-Employed borrowers.
No Doc Refinance-Refinance your mortgage
without proving income, assets, or employment. This is a good loan for borrowers
who don't have 2 years same line of work or no employment. Rates are high.
Home Equity
Line of Credit(HELOC)-A line of credit based on equity available in your home. These
can be fixed or adjustable rates.
Home improvement loan-Loan based on the future
value of a property. These are usually 200% of the current value of the home or financed
as "subject to" loans.
First Time Homebuyer Programs-Purchases for borrowers with
little credit an no previous mortgage history. Needs to have somewhat good credit.
Requires little or no money down.
February 2008 Update-With the changes in the mortgage industry many programs have
been discontinued or guidelines have changed. Please call with any scenarios that
you would like to go over.
