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Types of Loan Products

Saturday, September 04, 2010    
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Types of loan products

Sub-Prime - Products and guidelines that accommodate borrowers with less-than-perfect credit histories.  May include bankruptcy, foreclosure, or late payments.

Typical guidelines:

  • Residential pay history to 1x90 are eligible
  • Allow open collections, judgements, and tax liens notaffecting title
  • No seasoning on BKs, foreclosures, or CCCS
  • 100% Full Doc with no tradelines at 620 midscoreand no BK
  • 100% LTV Full Doc with 580 midscore, rent-freeokay
  • 100% LTV non-owner occupied with no MI
  • Interest only 1st and 2nd mortgages available
  • 100% Stated Income with 620 midscore
  • 40 and 50 year loan options available

Stated Income - Stated income (and stated asset) products are designed for self-employed and non-W-2 borrowers.  Also includes no doc and no asset (verfication) products.  Benefits: Vastly reduced paperwork required to process the loan.  Competitive rates.

Typical guidelines:

  • NINA 80/20 at 680 midscore, primary residence
  • NIVA, SISA, SIVA 80/20 combo at 640 midscore,primary residence
  • Full Doc primary residence 80/20 combo at 620midscore (600 for cash out)
  • 100% CLTV available for non-owner occupied
  • Loan amounts up to $2 million
  • Available on most property types (including condotels)
  • Stated income allowed on W-2, self-employed & fixedincome
  • ARMs, 40-year loans, Interest Only 1st & 2nds, andHELOC 2nds available on most programs

Option ARM - an Adjustable Rate Mortgage (ARM) that offers several monthly options for payment.  Benefits: four choices each month – minimum fixed payment, interest-only payment, 15-year amortized payment, or 30-year amortized payment – enable you to tailor your budget and cash flow.

Typical guidelines:

  • Up to 95% Purchase, Rate & Term, and Cash Outcombo with 2nd
  • Introductory rate as low as 1%*
  • 1st time homebuyers on stated income up to 95%
  • Four monthly payment options
  • Choose MTA or LIBOR index
  • HELOCs, Interest Only 2nds and 40-year loans

Full Doc/Reduced Income

Typical guidelines:

  • Minimum 520 midscore
  • 90% LTV at 580 midscore
  • 100% LTV at 660 midscore
  • Non-owner occupied 100% LTV at 700 midscore
  • Interest Only loans available at 600 midscore
  • Reduced Income -- 100% financing on 12 mos bank statement program (personal, DBA or business); available for W-2 and self-employed
  • 2-1 Buydown and Select Score options available
  • 1099 Income program - 2-year history of 1099 income in same field with no gaps - No Tax Returns Required
  • Interest Only 1sts available
 

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