"Yeah, Thanks for everything Ben, I really appreciate your help with this process. This is the first time buying a house in a foreign country, it was a "big deal" for me and I appreciate you answering my phone calls every time. I would definitely recommend you for all my friends that want to buy a house!"
J. Peixoto
Specialty Loans
Negative amortization Loans-pay
option arms
A loan payment schedule in which the outstanding principal balance of
a loan goes up rather than down because the payments do not cover the
full amount of interest due. The monthly shortfall in payment is added
to the unpaid principal balance of the loan. Pay option arms typically
have four payment options. These are typically a 30 year payment, 15
year payment, interest only payment, and a negative amortization payment.
The negative amortization payment is the minimum payment allowed.
Reverse mortgages
A reverse mortgage is just the opposite of a traditional or "forward"
mortgage. A reverse mortgage loan is when a homeowner receives money
using the equity from their home without having to make monthly payments.
As time goes on, the borrower's debt will increase and their equity
will decrease.
The amount you receive with a reverse mortgage depends on your age and
the value of your home. The older you are, the more money you'll get.
Proceeds paid from the loan are not considered income and therefore,
will not affect Medicare, Social Security, Medicaid or Supplemental
Security Income (SSI).
A reverse mortgage can be set up as a monthly cash advance, a lump sum,
and a credit line type of account or as a combination of these methods.
Though they can be useful to many seniors in their retirement as a way
to supplement income, reverse mortgages are not for everyone.
Bridge Loans
A short-term loan that is used until a person or company secures permanent
financing or removes an existing obligation. This type of financing allows
the user to meet current obligations by providing immediate
cash flow. The loans are short-term (up to one year) with relatively
high interest rates and are backed by some form of collateral such as
real estate or inventory. Also known as "interim financing",
"gap financing or a "swing loan".
Hard Money and Private Money Loans
Hard Money Loan (also known as a Private Money Loan) is a form of asset
based borrowing that deals not only with real estate financing, but
also includes lending for other types of projects or instances. The
common thread is that there are assets that can be used as collateral,
and there exists a need for capital when the normal financing sources
are not available or have been exhausted, or when time is of the essence
and conventional financing channels will not work.
More information on Hard Money Loans
Acquisition and Development loans
Acquisition and Development loan (also known as an A&D loan) is
a loan where a part of the proceeds are used to buy the property. The
total project cost would include the cost of the land, the hard costs
for the horizontal improvements, the soft costs (including an interest
reserve and sales commissions) and a contingency reserve.
Apartment Loans
A loan that is used to secure financing on a multi housing project that
consists of 5 or more units.
Blanket Loans
A mortgage covering more than one parcel of real estate providing for
each parcel's partial release from the mortgage lien upon repayment
of a definite portion of the debt.
Commercial Loans
A commercial loan is used to finance apartments, mobile home parks,
mixed-use, retail, office, warehouse, industrial, hotel, motel, self-storage,
or gas stations that are secured as real estate. The loans are typically
made to a business entity with personal guarantees from the owners.
Commercial mortgage typically require a larger down payment or lower
loan to values for refinances.
More information on Commercial Loans
Seller Carry Seconds
A seller carry second is used to obtain a higher loan to value financing
when the bank will not provide it or not provide as favorable of terms.
This is common in the sub prime market to help lower the overall payments
or provide low down payment financing.
Lot and Land Loans
Lot or land loan is used to finance land that is raw or in a subdivisions.
Better terms apply to subdivided lots that have utilities to the property
and paved streets.
Fix and Flip Loans
The fix and flip loan is utilized to purchase an undervalued property,
use proceeds from the loan to fix it up, and then sell it for a profit.
Every property is unique when this loan is considered so the terms vary
from each property. This loan typically does not have a prepayment penalty
because it is meant to be a short term loan and usually has a higher
interest rate. Most of the consideration for the loan is on the collateral.