Which loan is right for you?

Whatever your situation, we have a loan just for you. If it's a loan to buy a home, lower your monthly payments, pay bills or improve your credit -- we've got it! Let us show you. CALL NOW.

Credit-Building Loans

LOANS TO HELP REESTABLISH CREDIT
Loan Programs Advantages Disadvantages
Adjustable Rate Mortgage (ARM)
  6 month ARM
  12 month ARM
Six and twelve month ARMs can significantly lower a mortgage payment for six or twelve months. That can be enough time to catch up on other debt payments and improve your credit rating. Six and twelve month ARMs can become expensive after the initial six or twelve month introductory period. Chances are, you'll want to improve your credit and obtain a better loan.
Fixed Rate Mortgages
  2 year fixed
  3 year fixed
Two and three year fixed rate mortgages provide the security of a fixed loan payment and relatively low, fixed interest rate for the first two or three years. For most people trying to improve their credit, two to three years is plenty of time. After two or three years, these loans convert to ARM loans. Two and three year fixed rate mortgages convert to ARM loans at the end of the fixed rate period. Rates on ARMs can increase. Chances are, you'll want to improve your credit and obtain a different loan before the two or three years are up.
Fixed Rate Mortgages
  15 year fixed
  30 year fixed
Fixed monthly payment and rate protect against interest and monthly payment increases • Higher interest rate compared to ARM introductory rates
• Higher rate compared to two and three year, fixed rate loans
• Fifteen and thirty year loans should generally be obtained if you plan not to move or refinance in the foreseeable future. If you're trying to improve your credit in anticipation of refinancing for a lower-rate loan, consider avoiding these loans.
FHA Loans
  • Qualifying is easier. With lower credit score requirements
  • You can be eligible for financing faster after bankruptcy or foreclosure
  • Non-occupant co-borrowers are allowed. This means close friends or relatives can help you qualify for your home by applying for the mortgage with you.
  • FHA Mortgage can be assumed by qualified home buyers. This can make your home easier to sell.
  • FHA allows you to finance home improvements when you purchase or refinance your home.
  • FHA allows you to refinance into another FHA mortgage with no appraisal. If your home’s value drops below your mortgage balance, it won’t keep you from refinancing.
  • FHA provides more assistance in the event that you have problems paying your mortgage.
  • FHA appraisal and inspection requirements are more rigorous, which may protect you from buying a home with unexpected problems.
  • You’ll have to pay mortgage insurance premiums (MIP) for the life of the loan. Even if your home’s value increases to the point that you have 20% home equity, unless you refinance it to a non-FHA loan.
  • FHA mortgages require both upfront mortgage insurance (currently 1.75 percent), which can be wrapped into the loan, and monthly premiums, which are added to your mortgage payment. This will increase your total loan.
  • FHA mortgage limits mean that you won’t be able to buy a really expensive home with FHA financing.
  • FHA has some pretty strict guidelines when it comes to financing condominiums. If your development is not approved by FHA, you won’t be able to finance a unit with an FHA mortgage.
  • FHA appraisals can be more comprehensive and might cost more.
Private Investor Loans
(Hard money)
• Fast close
• Less “red tape”
• Easy qualification guidelines
• Higher interest rate
• Higher loan fee

Credit Advantage Loans

ONCE GOOD CREDIT IS ESTABLISHED (OR REESTABLISHED), THESE LOANS ARE AVAILABLE
Loan Programs Advantages Disadvantages
Adjustable Rate Mortgages
  10/1 ARM
  7/1 ARM
  3/1 ARM
  1 year ARM
  6 month ARM
  2/28: 2 yr. fixed
  rate; 28 yr. ARM
  1 month ARM
• Lower initial monthly payment
• Lower payment over a shorter period of time
• Rates and payments may go down if rates improve.
• May qualify for higher loan amounts
• More risk
• Payments may change over time
• Potential for high payments if rates go up
Balloon Mortgages
  15 year (30 yr. fixed,
  due in 15)
  7 year
  5 year
• Lower initial monthly payment
• Lower payment over a shorter period of time
• Many balloon mortgages offer the option to convert to a new loan after the initial term
• Risk of rates being higher at the end of the initial fixed period
• Risk of foreclosure if you cannot make the balloon payment, refinance or exercise the conversion option
No or Stated Income/Asset Programs • No tax returns or W-2s
• No proof of assets or down payment
• No verification of income
• Fast approval
• Higher rates
• Higher down payment
No point, No fee Programs • No closing costs • Less money required to close • Higher rates
• Higher payments
Home Equity Line of Credit • You only borrow what you need
• Pay interest only on what you borrow
• Access to funds as needed
• Interest may be tax deductible
• Up to 125% loan-to-value
• Rates can change. The maximum interest rate is normally high
• Payments can change
• Harder to refinance your first mortgage
Home Equity Fixed Loan • Fixed payments
• Receive one lump sum at closing
• Interest may be tax deductible
• Higher interest rates compared to 1st mortgages
• Harder to refinance your first mortgage

 
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