What Loan Product is right for you?

• Standard Conventional Loans up to 100% financing
• 103% Loans (can roll up to 3% of closing costs into loan)
• Interest Only Loans (Borrower pays only interest for first 10 years)
• Stated Income (Borrower provides limited documentation on income)
• No Doc (Borrower provides no documentation on income or assets)
• 1,3,5,7 & 10 year Adjustable Rate Mortgage Programs available
• 100% Investor Loans available
• FHA, VA, Bond/Grant Programs (First-time Homebuyer, Police, Firefighter, Teacher)
• 80/20, 80/15/5, 80/10/10 Products available (no PMI required)
• 2nd Liens
• Sub-prime Loans (Borrowers with imperfect credit histories)

We offer ALL loan products available in the industry today!

Convential and Government Loans

• Conforming loan limit is currently: $417,000. Loan amounts in excess are considered non-conforming and referred to as Jumbo loans.
• VIP typically does not require a Termite, Well or Septic inspection on conventional loans.
• VIP offers loans that do not require a down payment, referred to as 100% LTV loans, even 103% LTV's are available.
• Private Mortgage Insurance (PMI) is required on all conventional loans with an LTV greater than 80%. PMI can be deleted by utilizing a second mortgage.
• Typical customers qualifying for a conventional loan will have FICO scores greater than 620 and have sufficient cash reserves to cover closing plus 2 months payments.
• Seller contributions can total 6% w/borrower paying more than 10% down, 3% seller contributions w/borrower paying less than 10% down. 2% limit on Investment Properties.

• Loan limit is currently $200,160
• Borrower must supply down payment of 2.25% with a total contribution of 3% to transaction including closing costs. The 3% can be paid with a down payment assistance gift program, i.e. Homestead trust, Nehemiah, Esther’s, etc.
• Seller can contribute up to 6% of sales price to transaction
• Gifting of funds can be any amount, no limits
• FHA loans typically can offer lower interest rates because of the mortgage insurance that is required
• FHA loans require 1.5% of the loan amount to pay for UFMIP (can be rolled into loan amount)
• FHA loans require.5% annually of the loan amount collected each month through escrows to insure the loan repayment. 25% with 15 year term. When the balance reaches 78% the MIP is possibly eligible to be canceled
• Escrow accounts cannot be waived
• There is no provision such as a second lien in order to waive the MIP – it is required on all FHA loans
• Lower credit scores are more acceptable than on Conventional loans

• VA currently offers up to $417,000 loan w/no down payment
• VA charges a Funding Fee (can be added to loan amount)

• If Veteran is registered as being disabled with VA, or the unmarried surviving spouse of a veteran who died as a result of service or service-connected causes, there is no funding fee charged
• No down payment is required on VA loans
• VA allows seller to pay closing costs and pre-paids in full

Fixed Rate Mortgages

In a Fixed Rate Mortgage, the interest rate, and hence monthly payment, remains fixed for the life (or term) of the loan. The term is usually for 10, 15, 20, or 30 years. The only increase a consumer might see in their monthly payments would result from an increase in their property taxes or insurance rates (paid using an escrow account, if they've opted to use an escrow). But payments for principal and interest will be consistent throughout the life of the loan using a Fixed Rate Mortgage.

30 Year Fixed Rate Loan

This type of loan has 360 monthly payments that remain the same for the entire 30 year period after which time the loan is paid in full. The monthly payment is based on an interest rate which does not change over the term of the loan (hence the term (“fixed rate”).

20 Year Fixed Rate Loan

This type of loan is the same as the 30 year fixed rate loan except the life of the loan is 240 months as opposed to 360 months. Since the loan is being paid slightly faster than the 30 year fixed rate loan, monthly payments for this type loan are higher than the 30 year fixed rate loan.

15 Year Fixed Rate Loan

This type of loan is the same as the 30 year fixed rate loan except the life of the loan is 180 months as opposed to 360 months. Since the loan is being paid faster than either the 30 year fixed rate loan or the 20 year fixed rate loan, monthly payments for this type loan are higher than the other two loans.

Generally, the longer a lender agrees to keep the interest rate “fixed”, the greater the risk to the lender, therefore, in most instances, interest rates on 15 year fixed rate loans are slightly lower than on 20 or 30 year fixed rate loans.

5 Year Balloon Loan

This type of loan has fixed monthly payments for the term of the loan (five years) that are based on a 30 year repayment schedule. At the end of the five year term, the outstanding principal balance of the loan is due plus any unpaid interest.

This loan program generally has a refinance option at the end of the five year period that gives the borrower the option to extend the loan at a fixed rate for the remaining 25 years. The new interest rate is based upon fluctuations in an index (typically the fixed interest rate offered at that time by the Federal National Mortgage Association (60 day mandatory yield rate) and is calculated by adding a specified amount to the index (typically .625% - 1.25%). For example, if the index equals 7.0% a the time of the extension of the loan and the margin is 1.00%, the new interest rate would be 8.00%.

In order to exercise this option, there are usually several conditions that must be met such as: (1) the borrower must still be the owner/occupant of the property, and (2) the borrower must be current in making monthly payments and can not have been more than 30 days late on any of the last 12 monthly payments made prior to the time the option is exercised. In addition, the option may not be available in interest rates have risen by more than 5.00% over the initial rate.

First-Time Homebuyer Loan

A loan is considered a 1st time homebuyer loan when it has one or more features that are available only to 1st time homebuyers. For example, a lender may reduce its interest rate (typically by one eighth to one quarter of one percent), reduce or eliminate its closing costs and, if an adjustable rate mortgage, reduce its margin (typically by one quarter of one percent). Such a loan may also have less stringent loan qualification guidelines.

Sub-prime Loan

These types of loans are available to borrowers who have or have had credit problems such as being late on or defaulting on the repayment of loans or credit cards. Although such loans are available as fixed rate or adjustable rate mortgage loans, the interest rate and/or costs associated with such loans are generally higher than loans available to borrowers who do not have a history of credit issue to reflect the fact that the risk associated with such loans is generally higher. Borrowers who do not have a history of credit issues are said to have “A” credit. Those with a history of credit issues are said to have “B” credit or “C” credit depending on the severity of the credit issues.

Second Home Loan

This type of loan is used to purchase or refinance a property other than a borrower’s principal residence. In most instances, such a property is a borrower’s vacation home (or “second home”). Provided that the property is not strictly an investment property, the interest rate and costs charged on such loans will generally be the same as those available on loans used to purchase or refinance a borrower’s principal residence.

No Income/No Asset Verification Loan

This type of loan is similar to a No Income Verification Loan and a No Asset Verification Loan except it is used by borrowers who do not wish to or are unable to verify their income and their assets. Once again, the interest rate and/or costs for such loans may be slightly higher than normal to reflect the higher degree of risk involved in loaning to borrowers without verifying their income or assets. Such risk is often offset, to some degree, by borrowers who have a significant history of paying loans of a similar type as the one being sought or who are borrowing only a small percentage of a property’s value.

Government Loan

This type of loan is guaranteed by a federal agency such as the Veterans Administration or by a State agency such as a State housing authority. As a result, such loans are typically offered at reduced interest rates and have less stringent loan qualification guidelines. Such loans, however, are generally targeted to a specific group of people and contain income, purchase price or other eligibility requirements.

No Income Verification Loan

These types of loans are available to borrowers who, for one reason or another, do not wish to or are unable to verify their annual income. An example of such borrowers includes those who obtain revenue from sources they do not wish to divulge or those that receive all or a portion of their income in cash. While available from some lenders as fixed or adjustable rate loans, the interest rate and/or costs may be slightly higher than normal to reflect the higher degree of risk involved in loaning to borrowers whose incomes have not been verified. Such risk is often offset to some degree by borrowers who have significant verifiable assets or who are borrowing a small percentage of a property’s value.

Extended Lock Loan

This type of loan refers to a loan that enables a borrower to “lock in” an interest rate (generally at the time of submitting a loan application) for an extended period of time. Since most loan programs enable borrowers to lock for 45-60 days, a loan program that allows for longer periods of time such as 90, 120, or 180 days is considered an extended lock loan.

Adjustable Rate Mortgages

In an ARM, the interest rate is fixed for a period of time, after which it will periodically (annually or monthly) adjust up or down to some market index. Common indices in the U.S. include the Prime Rate, the LIBOR, and the Treasury Index ("T-Bill").

6 Month Adjustable Rate Mortgage (ARM)

This type of loan has monthly payments that are based on a 30 year repayment schedule but the interest rate (and, therefore, the monthly payments) may change every 6 months (this is referred to as the “adjustment period”). The new rate is based upon fluctuations in an index (typically the One Year Treasury Security) and is calculated by adding a specified amount to the index. The amount that is added to the index is called the “margin” (typically 2.50% - 3.00%). For example, if the index equals 5.0% at the time of adjustment and the margin equals 2.75% the new interest rate would be 7.75%.

However, this type of loan program usually has limits on how much the interest rate can change (either up or down) at each adjustment date, compared with the interest rate being charged before the new adjustment is made. Typically, this limit is 1% and is referred to an “adjustment cap”. There is also a limit as to how much the interest rate can change (either up or down) from the initial interest rate over the entire life of the loan (typically 6%) and this is referred to as a “lifetime cap”. The monthly payment changes, as needed, at each adjustment period, to reflect the adjusted rate.

1 Year Adjustable Rate Mortgage (ARM)

This type of loan is similar to the 6 month ARM except for the fact that the adjustment period is every 12 months (one year) as opposed to every 6 months. In addition, the adjustment cap on a l year ARM is typically 2% as opposed to 1%. The lifetime cap is typically 6%. The index is typically the One Year Treasury Security index and the margin is typically 2.50% - 3.00%.

2 Year Adjustable Rate Mortgage (ARM)

This type of loan is also similar to the 6 month ARM except for the fact that the adjustment period is every 24 months (two years) as opposed to every 6 months. As with a 1 year ARM, the index is typically the One Year Treasury Security index and the margin is typically 2.50% - 3.00%. Also, the adjustment cap is typically 6%.

3 Year Adjustable Rate Mortgage (ARM)

This type of loan (also referred to as a “3/3 ARM”) is similar to the 6 month ARM except for the fact that the adjustment period is every 36 months (three years) as opposed to every 6 months. The index is typically the Three Year Treasury Security index. As with a 1 or 2 year ARM, the margin is typically 2.50% - 3.00%, the adjustment cap is typically 2% and the lifetime cap is typically 6%.

5 Year Adjustable Rate Mortgage (ARM)

This type of loan (also referred to as a “5/5 ARM”) is similar to the 6 month ARM except for the fact that the adjustment period is every 60 months (five years) as opposed to every 6 months. The index is typically the Five Year Treasury Security index. As with a 1 or 2 year ARM, the margin is typically 2.50% - 3.00%, the adjustment cap is typically 2% and the lifetime cap is typically 6%.

3/1 Adjustable Rate Mortgage (ARM)

This type of loan has monthly payments thar are based on a 30 year repayment schedule and the interest rate remains fixed for the first 36 months (three years). After that time the interest rate (and, therefore, the monthly payments) may change every 12 months (one year). This is referred to as the “adjustment period”. The new rate is based upon fluctuations in an index (typically the One Year Treasury Security) and is calculated by adding a specified amount to the index. The amount that is added to the index is called the “margin” (typically 2.50% - 3.00%). For example, if the index equals 5.0% at the time of adjustment and the margin equals 2.75%, the new interest rate would be 7.75%. However, this type of loan program usually has limits on how much the interest rate can change (either up or down) at each adjustment date, compared with the interest rate being charged before the new adjustment is made. Typically, this limit is 2% and is referred to as an “adjustment cap”. There is also a limit as to how much the interest rate can change (either up or down) from the initial interest rate over the entire life of the loan (typically 6%) and this is referred to as a “lifetime cap”. The monthly payment changes, as needed, at each adjustment period, to reflect the adjusted rate.

5/1 Adjustable Rate Mortgage (ARM)

This type of loan is similar to the 3/1 ARM except for the fact that the interest rate remains fixed for the first 60 months (five years) as opposed to the first 36 months. After that time the interest rate (and, therefore, the monthly payments) may change every 12 months (one year). As with a 3/1 ARM, the index is typically the One Year Treasury Security index, the margin is typically 2.50% - 3.00%, the adjustment cap is typically 2% and the lifetime cap is typically 6%.

7/1 Adjustable Rate Mortgage (ARM)

This type of loan is similar to the 3/1 ARM except for the fact that the interest rate remains fixed for the first 84 months (seven years) as opposed to the first 36 months. After that time the interest rate (and, therefore, the monthly payments) may change every 12 months (one year). As with a 3/1 ARM and a 5/1 ARM, the index is typically the One Year Treasury Security index, the margin is typically 2.50% - 3.00%, the adjustment cap is typically 2% and the lifetime cap is typically 6%.

No Asset Verification Loan

This type of loan is similar to a No Income Verification Loan except it is used by borrowers who do not wish to or are unable to verify their assets as opposed to verifying their income. As with No Income Verification loans, the interest rate and/or costs may be slightly higher than normal to reflect the higher degree of risk involved in loaning to borrowers without verifying their assets. Here, such risk is often offset to some degree by borrowers who have significant verifiable incomes or who are only borrowing a small percentage of a property’s value.