MLS Available Programs


	Available Programs Fixed Rate Mortgage 1/1, 3/1, 5/1, 7/1, 3/6, 5/6 ARM 1 Month MTA, 1 Month Libor ARM Home Equity Line of Credit (HELOC) Raw Land Financing Bridge Financing 100% Financing Interest Only Loans Stated Income Loans No Doc Loans No Cost Loan
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Fixed Rate Mortgage	Interest Rate remains unchanged throughout the loan period. Loan payments are a fixed amount, usually payable monthly, and include both interest and a portion a portion of the loan balance. The loan is paid off by the end of the loan period. Typical fixed mortgage loan periods are for 10, 15, 20, 25 and 30 years.
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1/1, 3/1, 5/1, 7/1, 3/6, 5/6 Adjustable Rate Mortgages fixed for an initial time period	The first number refers to the fixed period (in years). The second number refers to the adjustment period thereafter with 1 representing an adjustment once per year and 6 representing an adjustment every 6 months.
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1 Month MTA 1 Month Libor Adustable Rate Mortgages	These loans often begin with a low start rate with minimum payments adjusted anually. The cost of the loan changes to a rate equal to an index plus a margin after an initial period. Most of these programs have 3 payment options: Minimum payment - Start rate payment adjusted annually with maximum payment increase of 7 1/2%. Interest Only Payment - Loan balance remains unchanged. Fully Amortized Payment - Amount to repay the loan balance over the remaining life of the loan. Loans rates and payments are re-adjusted every five years, re-amortizing the loan balance over the remaining life of the loan. Payments less than interest only payments result in negative amortization, an increase in loan balance equal to the amount of unpaid interest. These loans usually cap the total amount of negative amortization by limiting the maximum loan amount to 110% of the original loan amount.
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Home Equity Line of Credit (HELOC)	Lines of credit are for the borrower's primary residence and are easier to qualify for if the borrower has a good credit score. Most are interest only for the draw period of 5 or 10 years. Payback periods vary. Rates are often based on the Prime Rate plus a small margin. Homeowners can borrow 90% or more of the equity in thier home.
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Raw Land Financing	Property must conform to local ordinances for buildable lots. Loan amounts are usually limited to 50% of the appraised value. Loans on large lots will be for less than 50%.
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Bridge Financing	Bridge financing is quick and expensive. Properties with large amounts of equity qualify. Rates are usually interest only.
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100% Financing	Rates are higher for qualified borrowers who have a high credit score with a low debt to income ratio.
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Interest Only Loans	During an initial period the payments are for interest only. No portion of the payment is required to reduce the balance of the loan. Payments during this period are considerably lower than payments due on fixed rate loans for the same loan amount.
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Stated Income Loans	Most lenders offer many of their loan programs with an option to state their monthy income amount without requiring any documentation or verification as to the amount. In most cases emloyment is verified. Self employed borrowers are required to have a two year history. Many lenders do not allow employees to state their income. Lenders look strongly at borrowers credit history and reserve assets to qualify borrowers.
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No Income No Asset Loans or No Doc Loans	Borrowers are qualified based on the amount of equity in their property and their credit score. No employment history or asset verification is required.
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No Cost Loan	Most lenders offer rebates for slightly higher loan rates on many of their programs. Borrowers are encouraged to consider slightly higher rates with all fees (except regularly occuring interest, property taxes and insurance expenses) paid for by the lender. Borrower recieves a disclosure statement estimating the expected charges for the loan along with an amount to be credited at the close of escrow for all nonrecuring closing costs. Borrower pays the appraiser at the time of inspection and $15.00 for a credit report at the time application is submitted and are reimbursed for these costs at the close of escrow.