Mortgage Loan Programs

Mortgage Loan Programs

We are approved with many lenders offering nearly every mortgage loan product available on the market. These include the standard conforming programs for loan amounts under $417,000 and jumbo loans over this amount. Terms may be for 40, 30, 25, 20, or 15 or 10 years. The 15 and 10 year fixed rates offer better pricing with A-paper lenders for both conforming and jumbo. All these A-paper loans normally require a minimum of a 620 mid score of the primary borrower as well as minimum tradeline requirements to pass through automated underwriting. I have seen a some folks get through with compensating factors in a strong application. Interest only is available on the 30 year fixed program at a rate which is slighly higher than the normal 30 year fixed rate at par. It is also available on most ARM products. Index

Adjustable rate loans can be advantageous for short periods, and we recommend them if you are planning to stay in your property for a few short years. Often, because of the initial low interest rate, it is easier for some borrowers to qualify for financing when buying a home. For others, this is the only type of loan for which they qualify due to their debt to income ratios.
Although the initial rates can be quite low, due to the periodic increases to the interest rate, your rate can exceed the rate of a 30 year fixed in just a few years, after which time it is likely that you would want to refinance. (i.e. pay closing costs again) If you have some derogatory credit items and you don’t qualify for that 30 year fixed rate, the ARM is usually what most people will opt take to help them get back on track. After making enough “on time payments”, the loan can be refinanced into the 30 year fixed. Index

Hybred adjustable rate mortgages include the 2/28, 3/27, 5/1, 7/1, or 10/1 ARMs, in which the interest rate will stay fixed for 2,3,5,7 or 10 years. The rate will become variable and adjust periodically after the fixed period expires. The periodic change up or down is tied to an index which is typically the 1 year Treasury-Bill, or LIBOR. You receive a margin which is fixed for the life of your loan. This is added to the index to determine your current rate. (There are also annual and life caps). The main advantage with these loans is the better interest rate that you get over the straight 30 year fixed conforming or jumbo rate. Interest only is an option with most of these products.
These loans are more accomodating for those who aren’t sure how long they plan to keep their property, but do plan on selling at some time in the future. Some homeowners feel that it doesn’t really matter if they’re not chipping away at any principal while their home is appreciating in value since they won’t be there that much longer. If your goal is lowering your monthly payment, then the interest only option will certainly do this for you. This is available with the 2/28, 3/27, 5/1 and 7/1 ARM’s.

No-income qualifier loans or EZ Qualifier loans are available for those with all types of credit, and can be made when someone is unable to qualify with his or her current income. This can be for both salaried and self-employed borrowers who have been in the same line of work for 1-2 years+. There are SIVA (Stated income verified assets) and SISA (stated income stated assets), where the latter requires excellent credit and a fairly high credit score.
There are stated income programs among the subprime lenders,(for those with blemished credit) and in exchange for no income documentation, you pay a slightly higher rate. There is no mortgage insurance on any of the loan products and this is compensated for by charging you a higher rate. Index

No Money Down financing is available for those with good credit and those with imperfect credit. The rates are higher for borrowers with low FICO scores, however, it is available even shortly after a bankruptcy has been discharged, and good credit reestablished. There is a minimum FICO score requirement (middle credit score of the primary borrower), and I have lenders which go down to a 560 mid score for this product. You do need to be able to document a clean housing payment history. (cancelled checks work) 100% financing is normally accomplished via a combination of an 80% 1st mortgage and a piggyback 2nd mortgage of 20%, or just one large 1st mortgage at 100% LTV in certain cases. The blended rates on the 80/20 combos are normally better than getting the one loan at 100%.
It is always best to re-establish some new credit after a bankruptcy discharge with any combination of financing to help rebuild your credit scores. They usually plunge after a bk 7 or bk 13. This can include auto loans, secured VISA cards, and department store or gas cards. Each trade line you establish and maintain a track record of on time payments will help over time to increase your credit scores at the 3 credit bureaus.
If you are seeking to buy an investment property with no money down, this is a niche product which we have available. To qualify, you must have a minimum of a 620 middle score and at least one account for 24 months. (This account has to be open and active when we pull the credit report.) In some cases, we can use alternative credit for qualifying purposes but the credit score needs to be higher. Alternative trade lines could inlude a utility or a cellphone bill.

We also do home improvement loans and second mortgages for both A-paper and subprime borrowers. It is possible to refinance a 1st mortgage alone to 80% of your market value (some lenders go to 85% of your market value) to take cash out for any purpose. A home improvement loan is just what it sounds like, and these are normally second mortgages, however, there are some 3rd mortgage lenders available for this purpose. They are normally one lump sum for home improvements and/or cash as well. Index

Additionally, home equity loans or lines of credit are available with a variable interest rate. This is basically a credit line which comes with a checkbook and you write out a check when you want to access your credit line just like a normal checking account. These often have a draw period of several years before any payments need to be made (5 years) and is followed by a 10 or 15 year repayment period. These loans have an interest only option for 60 months.Index

We also offer loans for manufactured homes. This may include modular housing in which the home is built in a factory to your specifications and then hauled out onto the lot which you have chosen. The home is permanently fixed to the foundation, and normally the passer by cannot detect the difference from this type of housing unit from a site built home.
Our mobile home loans are for double wide homes only and they must be permanently fixed to the foundation. We offer both purchase and refinance loans. The maximum LTV I have seen is to 95% with good credit. Index

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