Mortgage Loan Products

Mortgage Loan Products2018-09-20T21:42:58+00:00

We are experts at finding the right home loan for each borrower, whatever their circumstances. If you don’t see the loan type that you’re interested in learning more about below in this list of mortgage loan products, please contact Vic.

Adjustable Rate Mortgages, ARMs, are typically mortgages where the monthly payments amortize over 30 years. But the interest rate is not fixed over that entire 30 year term. These loans usually have a fixed interest rate for an introductory period of 1, 3, 5, 7, or 10 years.

The interest rate during the introductory period may offer a lower starting rate than a comparable 30-year fixed mortgage. This is why borrowers may want to take an ARM over a fixed rate mortgage. After the introductory fixed rate period, the interest rate will begin adjusting at a regular periodic time frame. Typically one adjustment is made per year until the loan is paid off. During the adjustable rate period, the rate can go up or down, depending on market factors.

ARM loans help investors or homeowners who know they will only keep the property for a limited period of time. Also, homeowners who are savvy enough to be able to play market fluctuations may benefit. These products can be complicated. You’ll need to spend some time with me on the phone or in person to fully understand whether or not these options are the best for your particular situation.

Balloon mortgages are similar to Adjustable Rate Mortgages (ARMs) in that the interest rate is fixed for an introductory period of 1, 3, 5, 7, or 10 years. They may offer a lower starting rate than a comparable 30-year fixed mortgage.

The difference between a Balloon and an ARM is that after the introductory fixed rate period, the balloon loan will require the borrower to pay off the loan in full. You can either by pay off the remaining principal balance using your existing funds, refinance the loan to pay off the balloon loan, or sell the property to pay it off.

Balloon loans can be helpful to investors or homeowners who know they will keep the property for a limited period of time. Also, homeowners who are savvy enough to be able to play market fluctuations may benefit. These products can be complicated. You’ll need to spend some time with me on the phone or in person to fully understand whether or not these options are the best for your particular situation.

We have access to commercial loan products that are appropriate if you are trying to purchase an apartment building or a mixed-use property, or want to renovate a currently-owned property. Any building where the number of units is over 4 units is going to require a commercial loan.

I have access to a number of “hard money” lenders that will do private financing for borrowers who do not have good credit, but who do have a lot of equity in the property they’re trying to purchase or renovate. This also applies to borrowers who cannot document their income, but do have bank statements to reflect that they do or will have income from rentals in the property.

A conventional mortgage is a loan that is not guaranteed or insured by any government agency. It is typically fixed in its terms and rate.

Conventional mortgages can be the perfect match for people with a good credit history looking for a variety of down payment options and loan amounts. These mortgages follow the lending guidelines set forth by government-sponsored enterprises like Fannie Mae or Freddie Mac. A conventional mortgage can come with super low closing costs and flexible payment options.

Choosing the best FHA mortgage can give you a chance to own the home of your dreams. An FHA home loan is a government-subsidized loan that is  popular with first-time homebuyers as well as buyers who have purchased a home before.

FHA (Federal Housing Administration) mortgage loans are not particularly credit score driven. For this reason they are very attractive for people with not-so-perfect credit. There is a minimum credit score, however. With a small down payment and fantastic rates, it is easy to see why home buyers choose this option.

The traditional fixed-rate mortgage is the most common type of loan program. With a fixed-rate loan, monthly principal and interest payments never change during the life of the loan. Fixed rate mortgages are available in terms ranging from 10 to 30 years and you can pay them off at any time without penalty.

It’s useful to have a fixed rate mortgage because you always know how much you will be paying monthly. Fixed loans are generally amortized over 10, 15, 20 or 30 years. Many lenders now also offer custom fixed rate terms for any term from 10 to 30 years. If a borrower wants a 17-year or 23-year mortgage, we can find those options as well.

Hard Money or Private Money is a specific type of asset-based loan financing for a borrower who receives funds secured by real property. Private investors or companies typically issue these loans. Interest rates are higher than conventional commercial or residential property loans and they come with higher closing costs.

These loans are for borrowers who are credit challenged or who cannot document their income. In a purchase scenario, the borrower will generally have to put more skin in the game with a larger down payment requirement than for conventional lending. In a refinance scenario, the collateral property will generally have to have a higher amount of equity than for conventional lending.

Hard money loans will usually have a short term to pay off. You will typically need to refinance or pay off the loan within two to three years maximum. Hard money is especially good for fix and flip or renovation projects.

Home prices have risen in California to the point where many buyers need jumbo loans to finance them. Jumbo loans are loans that exceed the limits set by the government-sponsored enterprises Freddie Mac and Fannie Mae that buy most home loans resell them to investors. This makes them non-conforming loans. As of 2018, these limits are $453,100. Rates for a property of that value are typically higher due to the amount of risk associated with financing a larger property. There is risk in that it may be harder to sell and recoup losses in case of a default.

Accessible via FHA, a Renovation Loan enables you to fix up a property you already own that is in disrepair. One strategy is to take out the Renovation Loan with FHA, which gives you the funds to do the work. Then you can roll that into a fixed-rate mortgage when the work is completed. Or, if the renovation has generated enough equity in the property, you might refinance into a conventional loan. If you have passed the minimum percentage requirements, you can get out of paying PMI.

There are multiple ways to renovate an existing property using a mortgage loan to fund that project. One such mortgage product is the FHA 203K loan that we have access to through multiple lenders.

In addition to FHA 203K, there are other strategies such as conventional cash-out refinances or private money lenders. We also have access to construction lending that doesn’t require going through FHA.

Reverse Mortgage is a growing part of the industry as the baby-boomer generation reaches the age of retirement. This mortgage enables you to tap the equity of your home property to “age in place” and stay in the home longer. Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income.

The only reverse mortgage insured by the U.S. Federal Government is a Home Equity Conversion Mortgage (HECM). This loan is only available through an FHA-approved lender. But we have over 50 FHA approved lenders working with us at C2 Financial.

Also, recently a new reverse mortgage product has come to market called a Jumbo Reverse Mortgage. Jumbo reverse mortgages are not limited to the FHA loan limits.

I am happy to consult on the phone or in person with borrowers who want to learn more about reverse mortgage options. My hours are flexible and I can work evenings and weekends when needed. Understanding reverse mortgages is a process and it requires time and patience, both of which I have to share.

The rural housing loan is a federal loan program that helps low-income borrowers to purchase homes in rural areas. USDA Loans are for non-farm homeowners in rural areas and are also for rural housing development. The United States Department of Agriculture’s (USDA) Rural Housing Service guarantees loans up to 100% financing for qualified customers living in rural areas around the country. More about USDA loans

If your credit is not perfect, it may be harder to qualify for a loan. However military or ex-military buyers may be approved quickly and qualify for low down payment with a Veterans Administration Loan.

The VA home loan product for military veterans is a very good product for vets. It allows them to purchase or refinance with zero down or no equity in the property. The purchase and refinance products go up to a million dollars or more on loan size, depending on certain conditions.