SPECIALTY LOAN PROGRAMS
These are special loans for borrowers with special needs. These loans are used in places where ordinary home loans may not work. Getting a longer term for repayment, or making interest only payments, or lowering your monthly payments.
The variety of loan products have narrowed down since 2008 and now we may not have some of the products listed here. The best specialty loans in a poor economy or a slow economy when real estate prices are stagnant are FHA loans for purchases and refinances both. These are Government insured loans, meaning the lender making the loan has a backing from FHA for certain percentage of loss in the event of a default.
One of the special product that is available is the Home Affordability Refinance Program for homeowners that can refinance your loans up to 125 percent of the value. These programs help people whose mortgages are under water and they are locked in the loan which cannot be refinanced by any other means because the original loan is higher than the current market value.
Interest only loans:
- Want lower payments?
- Pay interest only for 10 years
- Qualify for 25% more home loan
- Great for short term holding
- Save hundreds of dollars on monthly cash flow
- This is not a 'negative amortization loan'.
- Fico score 580 required
No seasoning loans
Will use appraised value first mortgages only. The are loans also known as hard money loans. The loan to value is lower and the points are usually between 3 to 5 percent of the loan amount and short term. But they are easy to get if there is enough equity in the property.