| Fixed-rate programs are usually identified by their term. |
Fixed-Rate Programs |
|
| 40-years |
X |
| 30-years |
X |
| 25-years |
X |
| 20-years |
X |
| 15-years |
X |
| 10-years |
X |
| Balloon-loan programs are identified by the
period for which the quoted rate holds. The balance is due at the end of that period. |
Balloon-Loan Programs |
|
| 5-year |
|
| 7-year |
|
| 15-year |
X |
| The first figure is the initial rate period, the
second figure is the rate adjustment period after the initial rate period ends. ARM programs
are also identified by the interest rate index that they use, and other features.
See Requirement 4. |
Adjustable-Rate Programs * |
|
| 1 month/1 month |
X |
| 3 months/3 months |
|
| 6 months/6 months |
|
| 1 year/1 year |
X |
| 3 years/1 year |
X |
| 5 years/1 year |
X |
| 7 years/1 year |
X |
| 10 years/1 year |
X |
| 3 years/3 years |
|
| 5 years/5 years |
|
| |
FHA Programs |
X |
| VA Programs |
|
| Second Mortgage Fixed-Rate Programs |
X |
| Second Mortgage Adjustable-Rate Programs |
|
| Not all lenders operate in every state. |
All states except: HI & NY |
| Few lenders make loans on all types of properties |
Single-family |
X |
| 2-4 family homes |
X |
| Condo, less than 5 stories |
X |
| Condo, more than 5 stories |
X |
| Co-ops |
|
| Manufactured homes |
X |
| Land |
|
| In a planned unit development (PUD) |
X |
| Farms |
|
| Commercial |
|
| The precise details of alternative documentation
requirements may differ a little from one lender to another. |
"Stated income", "stated assets", or both: income and/or assets are
disclosed but not verified by lender. |
X |
| "No ratio": maximum ratios of housing expense and total expense to income
are ignored by lender. |
|
| "No income", "no assets", or both: income and/or assets are not disclosed. |
|
| Shoppers should expect to pay more for a waiver
of escrows or a float-down, less for accepting a prepayment penalty. A float-down is a lock
plus the right to a lower rate if market rates decline. |
Waive escrow of taxes and insurance |
X |
| Prepayment penalty |
|
| Float-down |
|
| Interest-only |
X |
| Temporary buydown |
|
| All of these cost more than loans taken out to
purchase a home for permanent occupancy, or to refinance with no cash out. |
Cash-out refinance |
X |
| Use house as vacation or second home |
X |
| Rent out house |
X |
| Borrower a non-resident alien |
|
| Construction loan |
|
| Bridge loan |
|
|
Warning! The maximums and minimums vary for different programs. For example, the longest lock
might be available for ARMs but not FRMs. Further, the stated maximums and minimums are not
likely to be available on the same loan. Don't expect to get a 107% loan, for example, if you
have a 540 credit score. (Note: you can get your credit score on www.myfico.com.) Housing
expense is the sum of the mortgage payment, property taxes and homeowners insurance. |
Maximum ratio of loan to value |
100% |
| Minimum credit score |
NA |
| Maximum loan size |
$6 million |
| Minimum loan size |
$50,000 |
| Maximum ratio of housing expense to income before taxes |
NA |
| Maximum ratio of housing expense plus other debt payments to income before taxes |
NA |
| Longest lock period available |
60 days |
