Loan Options
In todays marketplace there are almost as many loan options as there are borrowers. The type of loan that is best for you depends on a handful of factors:
- Credit Score
- Equity in your property
- Income
- Ability to prove income
- Time you plan on owning your home.
- Future financial outlook or stability.
The follow are a handful of options available:
| Loan Type | Typical Consumer | Loan Features | ||
| Low Payment Option Loans | For borrowers who want to keep payment as low as possible. or those who are having trouble qualifying based on income. | 40 or 50 year loans, Interest Only, Pay Option. Great Flexibility. Can pay more if desired. Great to buy larger home when expecting income to rise. | ||
|
No Down Payment Loans |
For borrowers with limited to no down payment who whant to purchase a home. | Either offered in an 80/20 two loan scenario or higher rate one loan option. Can spend money on moving costs or furnishing new home. This loan is getting tighter guidelines as foreclosures increase. Minimum 600 credit score. | ||
|
Low Down Payment Loans |
For borrowers with down payment looking to maximize cash flow yet take advantage of lowest rates. | still maintains best market rates with the minimum required down payment. | ||
| Low or No income Documentation Loans | You have excellent credit and want to avoid paperwork, or have income that is difficult to prove; self-employed | No income verification required. For Self-Employed or w2 wage earner. Slightly higher rates. No documention available for short employment history or spotty employment. | ||
| Construction or Rehab Loans | You are building or signifiacantly renovating a home. | Can borrow based on future value of home. Interest-only payments during construction, the choice of adjustable rate or fixed rate mortgage products. Great for investors. | ||
|
Investment Property Loans |
You are buying a home that you are not going to personally live in. e.g. Rental Property | Stated, No Doc, and Full Doc available. Usually higher interest rates and down payment required. | ||
| Commercial Loans | Property is used for commercial purposes or houses a business or other purpose than a residence. | usually a 20% down payment required. Extensive appraisal process. | ||
| Home Equity Line of Credit (HELOC) | You are looking to access quick cash for home improvmements or debt consolidation. Or you want to avoid paying mortgage insurance | Used to borrow against equity in the home. Can be used like a credit card. Normally based on the prime rate. Can be used instead of down payment in many cases, or to keep 1st mortgage below 80% to eliminate PMI. | ||
