Products

Fixed Rate Loans & Buydowns

FIXED RATE - A loan with a fixed rate and a payment for the life of the loan. Fixed rate mortgages can be amortized for any period from 10 to 30 years. We deliver the best fixed rate programs in the area because of our broad investor base.

30 Year Fixed Rate Program
This is the simplest and probably the most common type of loan. Your interest rate and payment are fixed for a 30-year term without any possibility of adjustment.

20 Year Fixed Rate Program
This loan is not used very much. Your interest rate and payment is fixed for a twenty year term without any possibility of adjustment.

15 Year Fixed Rate Program
This loan is popular for those who wish to have their mortgage paid off sooner. You can expect a little better interest rate than the 30 Year Fixed, but a payment about 20% higher than the 30 Year. Your interest rate and payment is fixed for a 15-year term without any possibility of adjustment.

BUYDOWN - A fixed rate loan that starts at a rate two or three percent below the actual interest rate an goes up 1% in interest rate per year. This allows the borrower to qualify at a lower rate and have payments that are lower for the first two to three years. The interest rate on a buydown is usually slightly higher than the normal fixed rate which compensates the lender for the initial period of lower rates. We can help you decide if a buydown loan is a good choice for you.

2-1 Fixed Buydown Purchase Program
This is a loan program in which the rate is fixed for the life of the loan but it is fixed at different rates. For example if the rate is 6.00% that is fixed for the first 12 months then it would go up exactly 1.00% to 7.00% for 12 months and finally lock in at 8.00% for the remaining 28 years of the loan. This can help borrowers when trying to qualify or if they only plan to be in the house for a short time.

Adjustable Rate Loans
Dozens of ARM loans are available. Commonly called "ARM" is a loan that allows the lender to adjust the borrower's interest rate and payments at prescribed times and sometimes with prescribed limits. They usually offer a lower than market "teaser" rate for the first six to twelve months giving the borrower lower payments in this initial period. ARMs are often easier to qualify for due to the low start rate. I provide the best ARMs I can find for each individual situation.

10/1 Adjustable Rate Mortgage Program
This is for Jumbo loans. It has a fixed interest rate for the first ten years and then turns into a 1 year ARM.

7/1 Adjustable Rate Mortgage Program
This is a loan program in which the rate is fixed for the first 84 months (7 Years) and then fluctuates annually from then on based on the current Treasury bill rate plus 2.875. The maximum the rate can go up or down on any given adjustment is 2.00% and the maximum rate for the life of the loan is 6.00% over the start rate.

5/1 Adjustable Rate Mortgage Program
This is a loan program in which the rate is fixed for the first 60 months (5 Years) and then fluctuates annually from then on based on the current Treasury bill rate plus 2.875. The maximum the rate can go up or down on any given adjustment is 2.00% and the maximum rate for the life of the loan is 6.00% over the start rate.

3/1 Adjustable Rate Mortgage Program
This is a loan program in which the rate is fixed for the first 36 months (3 Years) and then fluctuates annually from then on based on the current Treasury bill rate plus 2.875. The maximum the rate can go up or down on any given adjustment is 2.00% and the maximum rate for the life of the loan is 6.00% over the start rate.

3/3 Adjustable Rate Mortgage Program
This is a loan program in which the rate is fixed for the first 36 months (3 Years) and then fluctuates every three years from then on based on the current Treasury bill rate plus 2.875. The maximum the rate can go up or down on any given adjustment is 2.00% and the maximum rate for the life of the loan is 6.00% over the start rate.

1 Treasury Bill Year Adjustable Rate Mortgage
This is a loan program in which the rate is fixed for the first 12 months (1 Year) and then fluctuates annually from then on based on the current Treasury bill rate plus 2.875. The maximum the rate can go up or down on any given adjustment is 2.00% and the maximum rate for the life of the loan is 6.00% over the start rate.

Cost of Funds 6 Month Adjustable Rate Mortgage
This is a loan program in which the rate is fixed for the first 6 months (.5 Years) and then fluctuates every 6 months from then on based on the current cost of funds index rate plus 2.75%. The maximum the rate can go up or down on any given adjustment is 1.00% and the maximum rate for the life of the loan is 6.00% over the start rate.

Cost of Funds 3 Month Adjustable Rate Mortgage
This is a loan program in which the rate is fixed for the first 3 months (.25 Years) and then fluctuates every month from then on based on the current cost of funds index rate plus 2.75%. There are no interest rate adjustment caps on this program but it does have a life cap (max rate) for the life of the loan of 11.95%.

Balloon Programs

30 Due in 7 Balloon (a.k.a. 30/7 or 7/23)
This is a loan program in which the rate is fixed for the first 84 months (7 Years) and then the lender has the right to call the note due and payable. These loans may also come with an extendable feature however you must meet specific criteria to be eligible to extend, and they will adjust your rate to the current market rate.

30 Due in 5 Balloon (a.k.a. 30/5 or 5/25)
This is a loan program in which the rate is fixed for the first 60 months (5 Years) and then the lender has the right to call the note due and payable. These loans may also come with an extendable feature however you must meet specific criteria to be eligible to extend and they will adjust your rate to the current market rate.

"Piggy-Backs"

80-15-5
You put 5% down, get a second mortgage for 15% of the value and get a first mortgage for 80% of the value. Why do it? Usually to avoid Mortgage Insurance which is very high on 5% transactions! If the exposure on the first mortgage does not exceed 80%, you will not have Mortgage Insurance. However, the second mortgage will be at a higher interest rate.

80-10-10
Usually used on Jumbo loans. You put 10% down, get a second mortgage for 10% of the value and get a first mortgage for 80% of the value. Why do it? Usually to avoid Mortgage Insurance! If the exposure on the first mortgage does not exceed 80%, you will not have Mortgage Insurance. However, the second mortgage will be at a higher interest rate.

75-15-10
Usually used on conforming loans. You put 10% down, get a second mortgage for 15% of the value and get a first mortgage for 75% of the value. Why do it? Usually to avoid Mortgage Insurance! If the exposure on the first mortgage does not exceed 80%, you will not have Mortgage Insurance. However, the second mortgage will be at a higher interest rate.

"0" Down loans

107%
You get a loan for 107% of the homes value.  Some of the 7% will be used to cover the closing costs and pre-paids and what is left over of the 7% can be used to payoff any existing debt (credit cards, car loans, student loans...) which will help with your over all monthly payments.  The key to this kind of loan is that you must have perfect credit.  Why do it? Usually because you are ready to buy a home and can afford the payment but have not been able to save for a down payment.

103%
You get a loan for 103% of the homes value.  The 3% will be used to cover the closing costs and pre-paids.  The key to this kind of loan is that you must have perfect credit.  Why do it? Usually because you are ready to buy a home and can afford the payment but have not been able to save for a down payment.

100%
You get a loan for 100% of the homes value.  You could ask the seller to contribute to you closing costs and pre-paids to make this a true "0" down loan similar to the loans listed directly above.  The key to this kind of loan is that you must have perfect credit.  Why do it? Usually because you are ready to buy a home and can afford the payment but have not been able to save for a down payment.

80-20
You put 0% down, get a second mortgage for 20% of the value and get a first mortgage for 80% of the value. Why do it? Usually to avoid Mortgage Insurance and a down payment! If the exposure on the first mortgage does not exceed 80%, you will not have Mortgage Insurance. However, the second mortgage will be at a higher interest rate.

Other

Self-Insurance
Some Lenders offer loans with self-insurance This means they will "portfolio" your loan (keep it instead of selling it to another Bank) and offer you the option of taking a higher interest rate with a down payment less than 20% without having mortgage insurance. Why would you do this? It would allow you to avoid Mortgage Insurance, which is non-tax deductible but mortgage interest is. Why would you not do this? The loan would be at a higher interest rate for the life of the loan, where there would have been a chance you could have the Mortgage Insurance removed as soon as two years into the loan.

Loans for Custom Construction and Poor Credit

Construction Loans
These loans provide money for the purposes of building a home. They are usually interest only payments charged only on the amount of funds drawn. The payments get larger as the construction proceeds and the amount drawn becomes greater. Most construction loans float at two percent above the prime rate and have a term of twelve to eighteen months. Our personal experience in this area is extensive.

"B" Paper Loans
These are loans designed for people who for one reason or another can't qualify for a regular or "A" paper loan. Credit problems, high debt ratios, and unusual properties are acceptable to B paper lenders, who offer slightly higher interest rates and fees. We definitely know how to get the most for your money in "A- to D" paper situations.

Hard Money Loans
Loans which allow people with extreme credit problems or invisible income to borrow money by using equity as the primary requirement for qualification.