OTHER LOAN PROGRAMS

Negative Amortization Loans

Some loans offer artifically low monthly payments for a period of time. If the monthly payment is less than the amount of the interest that accrues on the loan during the month, the difference will be added to the principal balance of the loan. This is called negative amortized loan. It means that your mortgage loan is getting BIGGER with time, not smaller.

This type of loan does have some benefits. It is usually easier to qualify for and can help out buyers who are having problems qualifying at the standard 30 year fixed rate. It also usually offers the borrower an option on how they wish to pay the loan off each month. They can pay the fully amortized payment, and not allow the loan to go into negative amortization. They can pay the full interest only payment, which does not pay the mortgage down but also does not add to the mortgage balance. They can pay the fully amortized payment for a 15-year loan and pay the balance in full in 15 years. They can also pay the smallest payment allowed which is at the payment cap and allows the loan balance to increase. If your negative amortization loan has this feature, you can usually choose each month which payment option you want to take. This can often make this type of loan very flexible. It is important to remember though, that if you are the type of borrower who will more then likely always pay the minimum due each month, this type of loan is probably not for you.

Bridge Loans

Bridge loans enable a home buyer to close on the purchase of a new home while the current property is offered for sale. We offer a "synthetic" bridge loan that eliminates many of the disadvantages of traditional bridge loans. Our bridge product is designed to offer the buyer maximum flexibility in managing the sale of the old property by providing ample financial reserves and eliminating short-term baloon maturities.

Construction and Remodel Loans

We offer a variety of construction loans that would enable the acquisition of a building lot and the contruction of a new home. Our construction loans convert to a permanent fixed rate or adjustable mortgage once the construction work is concluded.