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This page is a great place to start when you have questions about which loan is right for you. Feel free to review this information or simply be in touch. Matching loans with home-buyers is an art in and of itself. From conventional loans and government programs, to jumbo and super jumbo loans, we can walk you through the various products available and answer all your questions in the process. Email Us or call during business hours to speak with someone immediately.

LOAN OPTIONS

First Time Home Buyers – If you are a first time home buyer, special programs may be available. “First time home buyer” is currently this defined as, “not holding interest in primary real estate property for the most previous three year period.” They are beneficial in that they often allow you to keep money in the bank, increase your borrowing power and provide more flexibility in underwriting guidelines.These programs may even offer decreased down payment eligibility and special grants, and can include government programs as well.

FHA Loans – These loans are insured by the FHA (Federal Housing Administration) and allow for lower down payments, higher debt-to-income ratios, and more flexible credit package underwriting guidelines. Typically, most people can qualify for an FHA loan, with the two requirements: a social security number and a valid state driver’s license. Offered are fixed and/or adjustable rate mortgages, which tend to remain competitive with the conventional market. However, they do have limitations as to maximum loan size (which can vary by county) and occupancy, as they must be owner-occupied.

VA Loans – These loans are guaranteed by the VA (Veteran’s Administration.) The VA programs allow for zero down payments, higher debt-to-income ratios and more flexible credit package underwriting guidelines. These fixed and adjustable rate loans are offered to eligible and qualified veterans.

3o Year Fixed Mortgage – This is a “fully amortizing” program and has a fixed interest rate over the life of the loan. You pay both principal and interest each month. At the end of 30 years the loan is paid in full.



15 Year Fixed Mortgage – This is a “fully amortizing” program with a fixed interest rate over the life of the loan. You pay both principal and interest each month. At the end of 15 years the loan is paid in full.



Periodic Fixed ARM  – An “ARM” is an Adjustable Rate Mortgage and they can be used for either short or long term objectives. As you might well imagine, with a Periodic Fixed ARM there are many factors involved. These could include: a declining interest rate market, increasing borrowing power, overall cash flow preferences or monthly budgetary plans. The interest rate and/or payments are kept in check and are protected from sizable changes in the market by “caps”. This cap limits movement within a reasonable level.  Index + Margin = Rate

1yr Periodic Fixed ARM – This type of loan is fixed for the first 12 months of the loan, then adjusts every twelve months thereafter based on the current index value plus margin. The interest rate and payment rate both change annually with payment caps of one percent and life of the loan caps of six percent.

3yr Year Periodic Fixed ARM – This type of loan has a fixed rate for the first 3 years of the loan, adjusting thereafter based on the index value plus margin. The interest rate and payment rate both change after three years with payment caps of two percent every six months and life of the loan caps of six percent.

5yr Periodic Fixed ARM – This type of loan is fixed for the first 5 years of the loan adjusting thereafter based on the index value plus margin. The interest rate and payment rate both change after five years with payment caps on two percent every six months and life of the loan caps of five percent. Any of the above loans can have an interest only option of up to ten years of paying interest only with no principal reduction. After the ten years the remaining principal and interest will be amortized over the remaining life of the loan.

7yr and 10yr Periodic Fixed ARM – This type of loan is fixed for the first 7 years of the loan (or ten years in the event of a ten year Periodic Fixed ARM) adjusting thereafter based on the index value plus margin. For more information about these loans or other loan options, please give us a call.

Adjustable Rate Mortgage (ARM) – This is a mortgage loan in which the interest rate is scheduled to increase or decrease throughout the life of the loan. The rate is tied to a particular index and, upon terms specified in the note, the rate will change with the value of that index.

Equity Lines of Credit – An equity line of credit has set and predetermined dollar amounts, terms and rate structures, and usually adjustable rates. The available funds can be borrowed via check or sometimes a credit card and then repaid in full or with monthly installments. Equity Lines of credit are secured against real property and the funds borrowed are against the equity in one’s home, hence “equity lines of credit”.

If a balance does not exist then (similar to the use of a credit card) payments are not required and interest is not charged, although some may have an annual fee for servicing. They are usually for a 15 or 25 year period.

Similar to a second mortgage, Equity Lines of Credit can also be used in conjunction with a first mortgage during a purchase transaction to avoid the need for mortgage insurance at higher loan to values. Any requested funds are disbursed at the close of escrow and then are paid back on the predetermined terms.

“Refinancing a loan” is the process of taking a loan (or loans) to pay off an existing loan that is secured by the same property and typically by the same borrower’s.

There are basically two types of refinance products:

• Rate and Term
• Cash Out

Rate and Term – This type of refinance is one in which the objective is to change the interest rate (generally lower) and the term (often extending it). This is done in order to obtain a lower and more manageable monthly payment.

Cash Out – This type of refinance is one in which a larger loan is taken out to pay off a smaller one, with the difference, also known as the equity, going to the homeowner in the form of cash.

Reverse Mortgage – This mortgage option is designed for clients 62+ years young. It is an option meant to improve your cash flow. These mortgages require no payment. Please give us a call at your convenience for a free analysis.

Apartment Loans – This type of loan is designed for buildings with greater than 4 units and the interest rates vary based upon the grade of unit, and income vs. expenses analysis. Please call with your details, as we are happy to provide you with a quote.

Small Commercial Loans – These loand are often offered by the Small Business Administration (SBA). This type of loan is for commercial spaces which are owner-occupied (up to 90% of value).

In addition to the SBA loans, there are many other commercial loan programs available and we are happy to discuss them with you at your convenience. Please call for a quote.