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LOAN PROGRAMS - MANY TYPES FOR MANY SITUATIONS
In today's economy, lenders offer a wide variety of loan programs with ever-changing rules, guidelines, and terms. Programs vary widely from Lender to Lender, and there are literally thousands of Lenders offering home loans.
Because there are so many variations of programs among lenders, today's borrower needs someone who is fully versed in all the issues that go into determining which programs you qualify for, which you don't and how choosing between two seemingly similar programs can sometimes dramatically affect your situation, either positively or negatively.
A Few of the many loan types:
Fixed-Rate Mortgage
A mortgage loan in which the interest rate does not change during the entire term.
Adjustable-Rate Mortgage (ARM)
A mortgage that permits the lender to periodically adjust the interest rate on the basis of changes in a specified index.
"Full Doc"
A loan that requires full documentation - proof of employment, income, assets, etc., usually 3 prior months of income and savings and 2 years Federal Tax Returns.
"Alternate Doc"
Some lenders accept a yeaer's bank statements and other documentation instead of tax returns for income proof.
"Stated Income"
A loan that is based on your stating your income rather than showing the otherwise typical two years of written proof of income. Lenders typically use a special database that quotes normal income for various types of employment to verify your statements.
HELOC
Home Equity Line Of Credit - typically a secondary mortgage subordinate to the primary loan on a property. Allows the home owner to draw funds using checks up to the maximum of the loan amount - can be paid down and re-drawn under certain circumstances for up to 10 years.
There are many sub-sets and classifications within each of these. It takes a great deal of knowledge & experience to guide clients through the loan maze.
Contact me today so that we can discuss your specific situation and which program would be best for building your financial portfolio and real estate investments.
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