Loan Programs

Which loan is right for me?

Years you plan to stay in the home	Recommended program
1-3 years	3/1 ARM, 1 year ARM or 6 month ARM
3-5 years	5/1 ARM
5+ years	30 year fixed or 15 year fixed
Special Loan Programs: First Time Home Buyers

SPECIAL HOME LOAND PROGRAMS NOW AVAILABLE
Program	Description
First Time Home Buyer Program	Buying your first home does not have to be a stressful event. We have programs designed specifically to help you open the door to your new home. We offer 0% down and closing fees are typically under $1000.

Builder Benefits Program	We asked members that have built their home what they would like most in a mortgage. That’s how we created the Builder Benefits Program. It offers an extended rate lock for up to 9 months, no money down and the ability to reduce the rate one time within 60 days of closing. Our closing fees are closing fees are typically under $1000.

Stated Income Program	Not every profession has a steady paycheck. The amounts fluctuate for some self-employed entrepreneurs or sales professionals. The Stated Income Program reduces the typical hassle that these professionals go through when applying for a loan. With qualifying credit, there is no verification of income or assets and you can borrow up to 90% of the home’s value. Our closing fees are typically under $1000.

Medical Student Program	We know that medical students are working hard to realize their professional dreams. We remove the barriers of home ownership by excluding student loan debt in their debt-to-income ratio. This program offers 0% down and we will even pay for your Mortgage Insurance. Our closing fees are typically under $1000.

Loan Program	Advantages	Disadvantages
Fixed Rate Mortgages 30 year fixed 15 year fixed	Monthly payments are fixed over the life of the loan Interest rate does not change Protected if rates go up Can refinance if rates go down	Higher interest rate Higher mortgage payments Rate does not drop if interest rates improve

Loan Program	Advantages	Disadvantages
Adjustable Rate Mortgages (ARM) 10/1 ARM 5/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM	Lower initial monthly payment Rates and payments may go down if rates improve May qualify for higher loan amounts 30 year term, no balloon payment	More risk Payments may change over time Potential for higher payments if rates increase

Loan Program	Advantages	Disadvantages
Balloon Mortgages 7 year 5 year	Lower initial monthly payment Lower payment for a predetermined 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 balloon payment, refinance, or exercise the conversion option Balloon payment requires you to sell or refinance after the term, as opposed to a 7/1 or 5/1 program with a 30 year term

Loan Program	Advantages	Disadvantages
In-House	Lower down payment Easier to qualify Lower rates may be available

Loan Program	Advantages	Disadvantages
Stated Income Programs	Don't need to verify income Faster approval Good for borrowers who may not qualify with a full income documentation program	Higher rates Higher down payment

Loan Program	Advantages	Disadvantages
Interest Only Programs	You have several payment options Lower monthly payments Qualify for a higher loan amount Qualify at the interest only payment Option to pay the full normal payment Interest only payments for up to ten years	Higher rates Principal loan balance will not decrease during the interest only payment period Payment will be higher for the remaining term

Loan Program	Advantages	Disadvantages
No point, No fee Programs	No out-of-pocket loan costs at closing Closing costs are paid from the lender rebate Less money required to close Refinance without increasing your loan amount	Higher rates Higher payments Some lenders may have a short payoff penalty which is usually charged to the loan broker, but may be passed on to you Some require a prepayment penalty for the first one to five years

Loan Program	Advantages	Disadvantages
Imperfect Credit Programs	Potential for reestablishing credit if you pay your mortgage on time When used for debt consolidation, you may be able to reduce your monthly debt payment	Higher rates Terms may not be as favorable Harder to get long-term fixed loans Loans may have prepayment penalties

Loan Program	Advantages	Disadvantages
Home Equity Line of Credit	You only borrow what you need Pay interest only on what you borrow Flexible access to funds Interest may be tax deductible May be free of closing costs A good source for an emergency fund, if set up in advance Can be used for debt consolidation and lower payments Rates are usually lower than consumer loan or credit card rates	Rates can change. The maximum interest rate can be relatively high Payments can change Harder to refinance your first mortgage

Loan Program	Advantages	Disadvantages
Home Equity Fixed Loan	Fixed payments Interest may be tax deductible Get cash out for any purpose	Higher interest rates compared to first mortgage Harder to refinance your first mortgage Interest is paid on the entire loan amount, compared to an equity line of credit