Mortgage Products

Secured Loan

A mortgage loan is a common type of debt instrument, used by many individuals to purchase a home or other real estate. In exchange for money lent to buy or refinance a property, the lender is given as security for repayment, a lien on the title to the property purchased or refinanced, until the mortgage loan is paid in full. If the borrower were to default on the loan, the bank would have the legal right to repossess the property and sell it to recover the amount owed.

Unsecured

Unsecured loans may be available from financial institutions under many different names or marketing packages: credit card debt, personal loans, bank overdrafts credit facilities or lines of credit, or corporate bonds.  The interest rates applicable to these different forms may vary depending on the lender and the borrower. Unsecured loans may or may not be regulated by law.

Types of Loans

• Adjustable Rate Conforming

  • Loan where the interest rate on the note is periodically adjusted based on an index. This is done to ensure a steady margin for the lender, whose own cost of funding will usually be related to the index. Consequently, payments made by the borrower may change over time with the changing interest rate.

• Alt-A (Alternative Documentation Loans)

  • Mortgage loans where the borrower possesses a strong credit history but is in need of non-traditional underwriting and processing guidelines.  Examples of these non-traditional guidelines include limited documentation, both asset and income, and expanded debt-to-income ratios.

• Conforming Fixed Period Adjustable Rate Mortgage

  • Loan that has a fixed rate for 3, 5, 7, or 10 years and then adjusts annually based on a financial index.

• Expanded Criteria: Levels I, II, and III

  • Expanded Criteria loans are for borrowers who don’t have the greatest credit history and don’t qualify for the best rate.  Instead of denying the loan altogether, the approval criteria is expanded, which causes the rate to be slightly higher.  In other words, the rates are adjusted but the lending program stays the same.

• Fast & Easy

  • The Fast & Easy home loan is a 15- or 30-year amortizing fixed-rate loan.

  • Limited income, assets, or employment documentation is required.

  • The interest-only option is only available with the 30-year fixed-rate mortgage. During the first 10 years of the loan, borrowers have the choice each month to pay only the interest or interest plus principal. After the 10-year interest-only period, principal and interest payments are due. The remainder of the loan balance will be recalculated and amortized over the remaining 20 years.

  • May be used to finance primary, secondary, or investment home.

  • Actual mortgage payments will vary based on each individual situation and current mortgage rates.

  • Not available in all states.

  • Who it's for: people with good to excellent credit ratings and those who don't want to fully document income and would like less paperwork.

• FHA (Federal Housing Administration)

  • Program for those declined by PMI (Private Mortgage Institution)

  • Insured federal assistance is made available to consumers who cannot afford a down payment, or otherwise, considering income, cannot afford the home they want.

• Fixed-Rate Conforming

  • Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These two stockholder-owned corporations purchase mortgage loans complying with certain guidelines from mortgage lending institutions, package the mortgages into securities and sell them to investors. By doing so, Fannie Mae and Freddie Mac, like Ginnie Mae, provide a continuous flow of affordable funds for home financing that result in the availability of mortgage credit for Americans.

  • Fixed-rate conforming loans have a fixed interest rate for the life of the loan.

• FNMA/FHLMC (Fannie Mae/Freddie Mac) Expanded Approval Levels

  • The Federal National Mortgage Association ("FNMA"), commonly known as Fannie Mae, is a government-sponsored enterprise (GSE). As a GSE, it is a privately-owned corporation authorized to make loans and loan guarantees. It is not backed or funded by the U.S. government, nor do the securities it issues benefit from any explicit government guarantee or protection.  This secondary mortgage market helps to replenish the supply of available money for mortgages and ensures that money continues to be available for new home purchases. The name "Fannie Mae" is a creative acronym-portmanteau of the company's full name that has been adopted officially for ease of identification.

  • The Federal Home Loan Mortgage Corporation ("FHLMC"), commonly known as Freddie Mac, was created in 1970 to expand the secondary market for mortgages in the United States. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them, and sells them as mortgage-backed securities to investors on the open market.

• Jumbo Loans

  • Loans where the amount is above the conventional limit (currently set at $417,000) allowed by agencies such as FNMA/FHLMC

• My Community

  • Being a Fannie Mae Program, the My Community Lending options are designed for moderate income homebuyers who have limited funds for a down payment and closing costs.

• Non-Conforming

  • Loans for amounts that exceed the current $417,000 jumbo loan limit, dictated by Fannie Mae and Freddie Mac, two government-sponsored entities that help facilitate the availability of home loans by investing throughout the country.

  • Non-conforming loans typically have higher interest rates and different down payment requirements.

• Reverse Mortgage

  • An FHA loan available to seniors (62 years and over in the United States) that is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (i.e. into aged care).

• Subprime (First Mortgage, Standard)

  • Loans to borrowers who do not qualify for the best market interest rates because of their deficient credit histories. Subprime lending is risky for both lenders and borrowers due to the combination of high interest rates and poor credit history. 

• Super Jumbo

  • Residential mortgages or other home-equity secured loans in amounts greater than $650,000

• VA (Veterans Administration)

  • Provides long-term financing to veterans and their spouses