Loan Program

How Much Can I Borrow?
100% Financing for Purchases. We have more than 25 banks and lenders that we can shop your loan to at any given time. Almost all of these lenders will allow you to borrow up to 100% of the purchase price depending on certain criteria, such as credit score. The average home buyer often is eligible for these 100% loan programs.

Refinances. Typically, lenders will go as high as 90%-95% Loan-To-Value on refinances.

Private Loans. When institutional banks let you down, it may be possible to get a private money loan regardless of your credit score and financial condition. However, because these lenders do not consider credit score and other lending criteria, they require a Loan-To-Value of no more than 80%.

How Much Is My Monthly Payment?
Standard Loans. The standard loan requires payments of principal and interest each month over the amortization term (usually 30 years). Since payment is being made on both accrued interest and principal, the loan is paid off at the end of the amortization period.

Interest Only Loans. Interest only loans means that the lender allows monthly payments of only interest. Since no payment of principal is made, a balloon payment is required at the end of the loan to pay off principal. These loans are good for individuals seeking to lower their monthly mortgage payment (since they only pay interest). Banks are willing to accept interest only payments because they expect the overall value of the property to appreciate over time, which allows the home owner to build equity even though they are not making payments toward the principal balance.

Negative Amortization Loans (also called partial interest payment loans). “NEG AM” loans allows the home owner to reduce their minimum payment to very low levels. While these loans are confusing to most home owners, they can be a smart way to use your money. NEG AM loans allow the home owner to pay only a portion of the interest accrued on their loan each month and no payments towards principal at all. Most programs, for example, allow the borrower to pay just 1.95% each month, even thought he actual interest rate may be 5%. The unpaid interest is added to the principal balance each month. Hence, the loan balance actually gets bigger, not smaller, over time. People seeking NEG AM loans want to use their monthly income for other purposes, or simply want a very low minimum payment in case they need it. For example, the minimum monthly payment on a $500,000 loan is just $812.50 (compared to roughly $2800 for a standard loan). The advantage of the NEG AM loan is that you can always pay the full payment of principal and interest each month, however, you have the option of paying much less.

How Much Documentation Must I Provide?
Full Document Loan. Traditionally, banks have always required full documentation including pay stubs, W-2's, and tax returns. Today, this is not always required, however, the interest rate will be a little lower for full document loan applications.

Stated Income. Many individuals find it difficult to show a consistent, easily verified income, such as owners of small business, self-employed professionals, and others who do not received a standard paycheck every two weeks. A stated income loan means that you state the amount of annual income you expect to earn, but you do not have to provide any documents to substantial your stated income. The rate is a little higher for these loans, but make getting a loan possible for some individuals who could not otherwise obtain a loan for lack of being able to document their full income.

No Doc Loans. In addition to not having to document income, “no doc” loans allow individuals to obtain a loan without having to do hardly any paper work. For example, if a purchaser has to move fast a no doc loan may be the quickest route, although the interest will be a little higher.