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 HOME   Construction CONSTRUCTION  Email Me! Glossary

 PRODUCT GRID & CLIENT PROFILE

 PRODUCT

DESCRIPTION

CLIENT PROFILE

MINIMUM
DOWNPAYMENT
 1 YEAR ARM Adjustable (Variable) Rate Product that changes every 12 months A client who understands the risks of the ARM, but are willing to accept them. Typically, the client anticipates that the mortgage loan will be paid off within an acceptable risk period.
   LOAN AMOUNT
 5% $300,000
10% $400,000
20% $500,000
25% $650,000
30% $750,000
35% $1,000,000
3/1 ARM


 Fixed rate for the first 36 months, converts to a 1-Year Treasury-Bill ARM thereafter. Rate increase "caps" of 2% per year, with a lifetime cap of 6%. Example: if the 1-Year Treasury Bill Start Rate is 6.5%, it can go up (or down) no more that 4.5% to 6.5%, and can go up to a maximum of 12.5% over the lifetime of the loan.

At the end of the 36-month period, the ARM Start Rate is determined by the current 1-Year Treasury Bill, PLUS an additional of .625%. Example: if the current 1-Year T-Bill rate is 7.125%, add .625%,
total = 7.750%

 A client who intends to either sell the property or pay off the property within the 36-month period, or shortly thereafter.  Same as above 
5/1 ARM


 Fixed rate for the first 60 months, converts to a 1-Year Treasury-Bill ARM thereafter. Rate increase "caps" of 2% per year, with a lifetime cap of 6%. Example: if the 1-Year Treasury Bill Start Rate is 6.5%, it can go up (or down) no more that 4.5% to 6.5%, and can go up to a maximum of 12.5% over the lifetime of the loan.

At the end of the 60-month period, the ARM Start Rate is determined by the current 1-Year Treasury Bill, PLUS an additional of .625%. Example: if the current 1-Year T-Bill rate is 7.125%, add .625%,
total = 7.750%
 
A client who intends to either sell the property or pay off the property within the 60-month period, or shortly thereafter. 		 Same as above
7/1 ARM


 Fixed rate for the first 84 months, converts to a 1-Year Treasury-Bill ARM thereafter. Rate increase "caps" of 2% per year, with a lifetime cap of 6%. Example: if the 1-Year Treasury Bill Start Rate is 6.5%, it can go up (or down) no more that 4.5% to 6.5%, and can go up to a maximum of 12.5% over the lifetime of the loan.

At the end of the 84-month period, the ARM Start Rate is determined by the current 1-Year Treasury Bill, PLUS an additional of .625%. Example: if the current 1-Year T-Bill rate is 7.125%, add .625%,
total = 7.750%
A client who intends to either sell the property or pay off the property within the 84-month period, or shortly thereafter.  		 Same as above
7/23 ARM


Fixed rate product for the first 84 months, then converts to another Fixed Rate for the remaining 23 years.

At the end of the 84-month period, another Fixed-Rate product is offered, based on the Fixed Rates at the time of conversion,
plus .625%.
A client who wants a good rate, but have an option to either sell the property or pay off the property within the 84-month period, or shortly thereafter.   		 Same as above
10/1 ARM


 Fixed rate for the first 120 months, converts to a 1-Year Treasury-Bill ARM thereafter. Rate increase "caps" of 2% per year, with a lifetime cap of 6%. Example: if the 1-Year Treasury Bill Start Rate is 6.5%, it can go up (or down) no more that 4.5% to 6.5%, and can go up to a maximum of 12.5% over the lifetime of the loan.

At the end of the 120-month period, the ARM Start Rate is determined by the current 1-Year Treasury Bill, PLUS an additional of .625%. Example: if the current 1-Year T-Bill rate is 7.125%, add .625%,
total = 7.750%
A client who intends to either sell the property or pay off the property within the 120-month period, or shortly thereafter.   		 Same as above
       

SPECIALTY PRODUCTS


NO EMPLOYMENT
VERIFICATION
The best No-Income Verification loan product available.


There is no income verification, no asset verification, and no verification of employment.

The IRS Form 8821 and IRS Form 4506 are not required.

Lender requires good credit and 2 appraisals.

Better pricing available if Assets can be verified. Products offered include:

1-Year ARM
3/1 ARM
5/1 ARM
15-Year FIXED
30-Year FIXED

 As little as 10% down on Primary Residence, but pricing is expensive.

Preferred is 25% down
on Primary Residence;

35% down on Second Homes.
“THE” BRIDGE LOAN  A Bridge Loan is a loan product that permits a client to get a loan-against-equity in an existing property that they own, to help facilitate the purchase of another property.  A Bridge Loan will allow a percentage of the value of a property that is listed for sale, or under sales contract scheduled to be sold "THE" BRIDGE LOAN is special, in that it does not count the Bridge Loan Payment NOR the current home mortgage (1st mortgage) payment against a client's income, allowing the client to qualify for a larger property.

 

Up to 65% of the Value of the Listing Sales Price of a home, minus the 1st mortgage balance;

Up to 70% of the Value of the Sales Price of a home, minus the 1st mortgage balance. Payment is calculated, and payment schedule identified and initiated, but "THE" Bridge Loan Payment is not counted in the client's Debt-To-Income Ratios, making it easier for the client to qualify for their next home.

Product available to be used with a previous residence outside of Florida or Colorado. Lender must have holdings in that particular state. (Lender has holdings in 33 states). Also, "THE" Bridge Loan can only be used when a client intends to buy another property as their
Primary Residence.

LOT LOANS
    

25% down
NO INCOME
VERFICATION  

Also knows as Stated-Income loans, these products use only what the client states is their income, but does not verify these figures, UNLESS....

 

Underwriting determines that there is a need to review the client's tax returns. As part of the loan process, the client must sign 2 documents which authorizes the Lender to pull tax returns from the IRS to check the accuracy of the loan application. The 2 IRS forms are:

IRS Form 8821
IRS Form 4506

The Stated-Income loans require the following:

2 years of continued employment on the same job, or in the same line of work;

Verification of Assets for cash-to-close, as well as 6 months cash reserves after closing.


As little as 10% down, although the lower the amount down, the greater scrutiny the file attracts.

Preferred cash down would be in the range of 20% to 30%.

FOREIGN BUYER
NO INCOME VERIF.

Product doesn't verify foreign buyer income, assets or credit

 



30% down as a stated
Second Home.

40% down for Investment

CONSTRUCTION-TO-PERMANENT LOAN PRODUCTS

FOR DETAILS ON CONSTUCTION-TO-PERMANENT LOANS,
SEE MY SECTION, "TO BUILD OR TO BUY" BY CLICKING HERE
 1-YEAR ARM

1-YEAR ARM, BASED ON THE U.S. TREASURY BILL. CAPS
OF 2 & 6
  
   LOAN AMOUNT
 5% $300,000
10% $400,000
20% $500,000
25% $650,000
30% $750,000
35% $1,000,000
3/1 ARM    

SAME AS ABOVE
5/1 ARM    

 SAME AS ABOVE
15-YEAR FIXED    

 SAME AS ABOVE
30-YEAR FIXED    

 SAME AS ABOVE