Quick Loan Programs Guide

• With Fixed Rate Mortgage (FRM), monthly payments are fixed over the term of the loan.
• Interest rate won't change
• Can refinance if rates go down
  

• Qualification requirements more restricted than Government loans
• Borrower must pay down- payment and closing costs. The shorter the term of a loan, the lower the interest rate you could get.
  

• Below Market Interest Rates
• Easier qualification, than Conventional Loans
• VA loans available with no down-payment

• Borrower must pay down-payment and closing costs

• Lower initial monthly payment.
• May qualify for higher loan amounts.
• Available with interest only options

• Risky
• Payments may change over time
• Potential for high payments
• Option ARM questions to ask

• No income verification
• Faster approval
• No Asset/employment Verification

• Higher interest rates
• Higher down payment
• Higher credit score

• Low down payment 80-10-10
• Low down payment 80-15-5
• No down payment 80-20

• 80% 1 st , 10%2 nd , and 10% down.
• 80% 1 st , 15% 2 nd , and 5% down.
• 80% 1 st and 20% 2 nd and no-down.

Balloon Mortgage Loans

5/25
7/23

• The balloon mortgage has a short term (5 or 7 yr), the monthly pmt is computed using 30 yr term and requires to pay off the remaining balance in one lump-sum pmt.
  

• This loan is suitable for temporarily relocation, or barrower's who are certain they will not stay in the property beyond the fix (5 or 7 yr) period.
  

• You can qualify for a larger loan amount.
• Lower monthly payment
• Qualify for larger home

• The 'interest-only' loan is the type of mortgage that lets you pay only the interest portion of your monthly payment for a fixed period
  

• 62 year and Older can Borrow against equity of their home.
• No loan repayment.

• Lenders recover their principle, plus interest, when the home is sold, or refinanced. Insurance premium is charged.
  

• Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as jumbo loans.
• Loans that do not meet the borrower credit requirements of Fannie Mae and Freddie Mac are called ' B ', ' C ' and ' D ' paper loans vs. ' A ' paper conforming loan.
  

• Because jumbo loans are bought and sold on a much smaller scale, they often have a little higher interest rate than conforming loans.
• B/C loans are offered to borrowers that may have recently filed for bankruptcy, foreclosure, or have had late payments on their credit reports.
• Higher interest rate.