Types of Real Estate Home Loan Programs Available...

bi weekly payments, Primary residence, vacation second homes & investment property
30,20,15 & 10 year fixed rate
30,20,15 & 10 year fixed rate with a 2/1 buy down
30 year fixed rate and adjustable rate fha loans with and without buy downs
30 year fixed rate va loans with and without buy downs
1 year adjustable rate mortgage (arm)
1 year convertible arm
2/1 arm
3/1 arm
3/1 convertible arm
3/1 arm with a 2/1 buy down
5/1 arm
5/1 convertible arm
5/1 arm with a 2/1 buy down
5/25 balloon
5/25 balloon with a 2/1 buy down
7/1 arm

7/1 convertible arm
7/1 arm with a 2/1 buy down
7/23 balloon
7/23 balloon with a 2/1 buy down
10/1 arm
10/1 convertible arm
10/1 arm with a 2/1 buy down
pre-payment penalty
one closing construction and permanent loans
home equity & fixed rate second mortgages to 125%
bridge loans
97% community homebuyer
land purchase loans
80% "No job required" loans

30,20,15 & 10 YEAR FIXED RATE: or anything in between. You tell us the number of years and we'll tell you what you will pay each month. Tailor make your own loan to your specifications. Rates are fixed the entire life of the term.
30,20,15 & 10 YEAR FIXED RATE WITH A 2/1 BUY DOWN: A 2/1 buy down means you give the bank 3 points and they slowly dole it back out to you. Say the rate is 6.50% with a 2/1 buy down, you buy down the rate 2% to 4.5% in the first year and 1% to 5.5% in the second year. There is nothing magical about it. They are giving you back your own money. The key is that you qualify based upon the first year's rate, meaning you can afford more of a house based upon the same amount of income, all things the same. From 5-10% down depending on loan program.
30 YEAR FIXED RATE AND ADJUSTABLE RATE FHA LOANS WITH AND WITHOUT BUY DOWNS.
30 YEAR FIXED RATE VA LOANS WITH AND WITHOUT BUY DOWNS.
1 YEAR ADJUSTABLE RATE MORTGAGE (ARM): This is a loan program where the rate is fixed for only one year at a time. Generally they have 2/6 caps which means the maximum the rate can change is 2% above (or below) the previous year, and 6% over the entire life of the loan. Usually these loans have a teaser rate in the first year, meaning the first year is a really low rate just to get you in. These loans will tend to go up and up and up. The rate is calculated each year by taking the index (let's say the 1 year T-bill in this case, but it can be anything including, the 6 month LIBOR , COFI, etc) and adding the margin, say 2.75. If the one year t-bill is 5.5% today and your margin is 275(margins vary by loan program), then your rate would want to go to 8.25% But it can't because you have a 2% cap per year. In this example, your rate would only go up to 7.5% in the second year. If rates stayed the same the year after that, your rate would go to 8.25%, the fully indexed rate now, but it could go as high as 9.75% if rates went up. This type of loan is good if you will be living in the house 1-2 years. The average rate over two years, even assuming the maximum adjustment, will usually work out to average less than a 3/1 ARM. and sometimes a 2/1 ARM. 5-10% down depending on the loan program. It can get confusing, can't it? Don't worry, we can help you choose the best program for your situation - call or e-mail us today.
1 YEAR CONVERTIBLE ARM: This works the same as a 1 year ARM but gives you a window of opportunity. Between the 13^th and the 60^th payment you can convert to a 30 year fixed rate at a minimal charge, thereby saving you the cost of refinancing. This program is great for people who are not sure if they will be selling soon or may end up staying, but will know within the next five years. This way, if they leave, they have had the benefit of a real low rate and saved a bunch of money. If they decide they are staying, then they can covert to a 30 year fixed and not take the risk with an adjustable loan. 5-10% down depending on the loan program.
2/1 ARM: This is an ARM where the rate is fixed for the first 2 years, then changes to a 1 year ARM. This is a new product and is good for a 1-2 year scenario. Also, for some C-D loans, this is perfect as typically banks want to see 1-2 years of clean credit before giving you an "A" rate on a refinance. 5-10% down depending on the loan program.
3/1 ARM: This is an ARM where the rate is fixed for the first 3 years, then changes to a 1 year ARM. This is good if you will be living in the house 3-4 years. 5-10% down depending on the loan program.
3/1 CONVERTIBLE ARM: This is the same as the 3/1 ARM but gives you a window of opportunity between the 13^th and the 60^th payment to convert to a 30-year fixed rate at a minimal charge. 5-10% down depending on the loan program.
3/1 ARM WITH A 2/1 BUY DOWN: This is an ARM where the rate is fixed for the first 3 years, then changes to a 1 year ARM. But with the buy down, you buy down the rate 2% in the first year and 1% in the second year. With the 3/1 Arm rate already so low to begin with, add a 2/1 buy down feature to this program and you can afford to buy a lot more house. A terrific program if you are stretching to qualify. 5-10% down depending on the loan program.
5/1 ARM: This is an ARM where the rate is fixed for the first 5 years, then changes to a 1 year ARM. This is good if you will be living in the house 3-5 years. 5-10% down depending on the loan program.
5/1 CONVERTIBLE ARM: This is the same as the 5/1 ARM but gives you a window of opportunity between the 13^th and the 60^th payment to convert to a 30-year fixed rate at a minimal charge.
5/1 ARM WITH A 2/1 BUY DOWN: This is an ARM where the rate is fixed for the first 5 years, then changes to a 1 year ARM, but with the buy down, you buy down the rate 2% in the first year and 1% in the second year.
5/25 BALLOON: This is a fixed rate for 5 years, then it adjusts one time and is fixed for the next 25 years. Some conditions apply to get the next 25 years. The rate is usually substantially lower than a 5/1 ARM. This loan requires 20% equity. This is good if you will be living in the house 3-5 years.
5/25 BALLOON WITH A 2/1 BUY DOWN: This is a fixed rate for 5 years then it adjusts one time and is fixed for the next 25 years, but with the buy down, you buy down the rate 2% in the first year and 1% in the second year. Some conditions apply to get the next 25 years. This loan requires 20% equity.
7/1 ARM: This is an ARM where the rate is fixed for the first 7 years, then changes to a 1 year ARM. This is good if you will be living in the house 5-7 years. 5-10% down depending on the loan program.
7/1 CONVERTIBLE ARM: This is the same as the 7/1 ARM but gives you a window of opportunity between the 13^th and the 60^th payment to convert to a 30-year fixed rate at a minimal charge.
7/1 ARM WITH A 2/1 BUY DOWN: This is an ARM where the rate is fixed for the first 7 years, then changes to a 1 year ARM, but with the buy down, you buy down the rate 2% in the first year and 1% in the second year.
7/23 BALLOON: This is a fixed rate for 7 years then it adjusts one time and is fixed for the next 23 years. Some conditions apply to get the next 23 years. The rate is usually substantially lower than a 7/1 ARM. This is good if you will be living in the house 5-7 years. This loan requires 10% equity.
7/23 BALLOON WITH a 2/1 BUY DOWN: This is a fixed rate for 7 years then it adjusts one time and is fixed for the next 23 years, but with the buy down, you buy down the rate 2% in the first year and 1% in the second year. Some conditions apply to get the next 23 years. This loan requires 10% equity.
10/1 ARM: This is an ARM where the rate is fixed for the first 10 years, then changes to a 1 year ARM. This is good if you will be living in the house 7-10 years. 5-10% down depending on the loan program.
10/1 CONVERTIBLE ARM: This is the same as the 10/1 ARM but gives you a window of opportunity between the 13^th and the 60^th payment to convert to a 30 year fixed rate at a minimal charge.
10/1 ARM WITH A 2/1 BUY DOWN: This is an ARM where the rate is fixed for the first 10 years, then changes to a 1 year ARM, but with the buy down, you buy down the rate 2% in the first year and 1% in the second year.
PRE-PAYMENT PENALTY: Some of the above loans may feature the option of a pre-payment penalty. Some investors take up to three years to break even on a loan. During the refinance craze, people were refinancing so often that approximately .25% of the rate on most loans is due to this early turnover they would expect. Therefore, on some loans you may actually get a .25% better rate if you promise not to pay off more than 20% of the outstanding balance for the first 3 years. After that, you may pay as much as you want without penalty. The penalty is 2% of the amount over 20% you prepay the loan, i.e., a $200,000 loan may be repaid $40,000 in each year for the first 3 years without penalty. But, if you paid down $41,000, the penalty would be 2% of $1,000, or $20.
ONE CLOSING CONSTRUCTION AND PERMANENT LOANS: A 6-month land acquisition and construction loan providing funds to build your own home. The construction loan then rolls into a 30-year loan at no additional charge.
HOME EQUITY & FIXED RATE SECOND MORTGAGES TO 125%: Rates vary depending on credit, income, etc. Great for debt consolidation, home improvements, or anytime you need to take equity out for any reason. Same tax deductibility as any other type of mortgage. Lines of credit are reusable.
BRIDGE LOANS: Used in conjunction with selling your old home and buying a new one. Allows you to pull the equity out of your existing home before it sells.
97% COMMUNITY HOMEBUYER: 3% down. Income must not exceed certain regional income limits. Qualifying ratios expanded to 33/38 . Clean credit a must.
LAND PURCHASE LOANS: Terms are a year balloon with a 25-year amortization. Must be a buildable lot. 20% equity required.
80% "NO JOB REQUIRED" LOANS: Rates vary depending on size of down payment and credit. All credit types considered. Restricted to certain geographical areas. No questions asked about your employment or where the down payment money came from. Foreign nationals okay. Cash business owners okay.