What does that mean?
Banks and lenders use very specific language when explaining loans. I walk all of my clients through a step by step process so you understand all of your options. Give me a call and we can setup a free mortgage consultation!
These loans are for the credit challenged. They can vary from slightly damaged credit to severely damaged credit.
Traditional loan programs that usually require 5% down and offer competitive interest rates. Documentation and fair to good credit is necessary.
There are two main types of home construction loans:
Construction-to-permanent: You borrow to pay for construction, and when you move in the lender converts the loan balance into a mortgage.
Stand-alone construction: You borrow to pay for construction, but when you are ready to move in you apply for an additional mortgage loan to pay off the construction debt.
Backed by the Department of Housing and Urban Development, this mortgage offers the borrower the ability to put as little as 3% down payment, and they can even finance "allowable" closing costs. Seller can contribute up to 6% of the purchase price to the buyer towards closing costs.
2nd Mortgage Loans
Subordinate to the first mortgage these loans offer the borrower the ability to get money for home improvements, debt consolidation or many other reasons without disturbing their first mortgage. Convenient when you have a low interest, first mortgage.
Flex 97 Loans
Similar to FHA but without maximum mortgage amount limitations. Must be a single family owner occupied home and borrower must have a credit score of over 680.
High Debt Ratio Loans
A ratio of monthly bills to monthly income higher than 50% is considered a high debt ratio. Loan programs are available for borrowers in this situation, allowing them to finance the purchase of a home or property.
First-Time Home Buyer Loans
First Home and First Home Plus programs offer a below-market, 30 year fixed rate mortgage loans to qualifying low and moderate income home buyers. First Home interest rates change from time to time.
No Income/No Assets Loan
Loans where your income is not requested or verified with as little as 10% down are stated income loans. There are several varieties of the "no-doc" loan. The type of loan that is best suited for a particular borrower depends on that borrower's situation. Some borrowers choose not to disclose employment, income, or asset information, while others may be willing to disclose employment and asset information but not income. Still others might be willing to disclose income but select a program that doesn't calculate debt-to-income ratios, allowing those borrowers to exceed the traditional guidelines, in order to qualify for a larger mortgage amount.
No Down Payment Loans
0% down payment required and closing costs paid by the borrower (seller can contribute up to 6% towards closing costs).
103% Purchase Loans
0% down payment required and closing costs can be finance up to 103% of the purchase price. Only single-family homes that will be owner-occupied are eligible. First time home buyer status not required and there are no income limits.
With a reverse home mortgage, you get all the benefits of selling your house and all the benefits of getting a home equity loan - but you can still live in and retain ownership of your home and you don’t have to pay back the loan. No matter how you structure a reverse mortgage, you typically don't pay anything back until you die, sell your home, or permanently move out. Your ability to secure a reverse mortgage is not dependent on your credit history, income level, health or any other factors that might make a home equity loan expensive or problematic.
Backed by the Veterans Administration and the Federal government, it is similar to FHA except that you have to be a qualified Veteran or current military.