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Loan OptionsA loan where the interest rate and monthly payment will remain "fixed" or constant throughout the term of the loan. Adjustable Rate Mortgage "ARM" 
An "ARM" allows a borrower to start with a lower interest rate and lower payment for a set period of time. After the initial period, the interest rate and payment can adjust on a monthly, semi-annual or annual basis depending on the program. Every "ARM" program has a specific index it follows, a fixed margin and periodic and lifetime caps. The periodic caps set the limit on how much the "ARM" can increase or decrease at its periodic adjustments, while the lifetime cap refers to the maximum increase over the term of the loan. Hybrid ARMS Hybrid ARMS are a combination of a fixed rate loan and an adjustable rate loan. After an initial period with a fixed interest rate, these loans become adjustable. Loans are typically fixed for a period of 2, 3, 5, 7 or 10 years. After the initial fixed period, they become ARMs and follow ARM guidelines. Interest-only Loans Interest-only loans can be either fixed rate or adjustable rate mortgages. As stated in the name, the monthly payment is based on interest only. No principal payment is required. The primary benefit of an interest-only loan is a monthly payment that is lower than a standard principal-and-interest payment. Interest-only loans are used when borrowers want to reduce their monthly payment to qualify for more home, plan to use the monthly savings to pay off other high-interest debt, or to invest in other opportunities yielding a higher rate of return. Reduced Documentation Programs Reduced documentation programs are typically for borrowers with good credit scores who wish to minimize the amount of paper documentation for income and assets needed for loan approval. These low- or no- documentation loans are usually available in both fixed and adjustable rate programs. Loan programs include "Stated Income, No Ratio, and No Doc Loans". 
FHA & VA
FHA & VA are government insured loans. FHA offers a 3% down payment option while VA requires 0% down. They feature flexible lending guidelines, making it easier for buyer to qualify for a home loan. For additional info, go to: No Down Payment Loans "100% Financing" No down payment loans are useful for borrowers who have limited savings, or for those individuals who want to fully leverage their real estate investments. No down payment loans can be one loan, or split into two loans - an 80% first mortgage and 20% second mortgage, referred to as an "80/20." An 80/20 eliminates the need for mortgage insurance. Construction Loans Construction loans allow people to acquire a lot, hire a contractor and build a custom home all in one package, called a "One Time Close." Once borrowers get their home plans and builder approved, they will close on the land sale, and construction funds will be placed into a construction escrow account. Borrowers will make monthly interest payments on the funds that are drawn from the construction account and paid to the contractor as the home is built. At the end of the construction phase, the construction loan will be modified into permanent financing. Home Equity Loans and Lines of Credit With home purchases, these types of loans are used to eliminate the need for mortgage insurance when buying a home with less than 20% down. When used to refinance 
, these second mortgages are commonly used to consolidate debts, and for large expen-ditures such as college, home improvement, divorce settlements, a second home or rental purchase, or other investment opportunities.
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