Interest Only Mortgages
With an Interest Only mortgage, your mortgage payment covers interest only with no principal reduction for a designated period of time. During this period you build no equity. When the interest only period ends, your payment is adjusted to include principal and interest in an amount that will fully amortize your loan over the remaining years of your mortgage. This means your payments will be lower during the interest only period and increase once that period if over. An Interest Only mortgage can help you lower your monthly payment, leaving more money in your budget for other investments and expenses.
FHA/VA Loans
Both the Federal Housing Administration and the Department of Veteran’s Affairs offer loan programs that enable qualified buyers to move into a home with little or no down payment. These programs are often attractive to first time home buyers because of minimal down payment requirements, regulated closing costs, lower acceptable credit score, fewer employment requirements and higher debt ratio. FHA and VA loans allow down payments of less that 3% and also have 100% financing options available. There are no minimum FICO or credit score requirements. Prospective home owners who are self-employed or who have been on the job for less than two years may qualify for a mortgage through FHA and VA programs.
Stated Income Mortgage
Stated income loans offer simplicity to the mortgage process with the convenience of less documentation than a traditional home loan. On the application, you simply state your income. If you have verifiable assets, confirmed employment and an acceptable credit score this mortage allows you to simplify the mortgage process, providing less documentation than usual. It may also be an option to consider if you are self-employed. The interest rates on stated income loans are generally higher than a fully documented loan because the lender is assuming more risk.
