Financing Programs
Home Ownership Accelerator:
Your income lowers your monthly balance.
The lower balance saves you interest.
The saved interest becomes extra principal payment.
This further lowers your balance, saving more interest.
This frees up even more money to reduce principal.
This cycle repeats itself each month, compounding your interest savings
 and accelerating the reduction of your debt.
Home Ownership Accelerator
Articles
How It Works Video
FHA Programs:
In 1965 the Department of Housing and Urban Development (HUD) was formed. Within HUD operates the Federal Housing
Administration (FHA), which has the primary responsibility for administering the government home loan insurance
program. This program allows a first time home buyer who might otherwise not qualify for a home loan to obtain
one because the risk is removed from the lender by FHA who insures the loan for the lender.
Fixed Rate Products:
30 year fixed
15 year fixed |
- Monthly payments are fixed over the life of the loan
- Interest rate does not change
- Protected if rates go up
- Can refinance if rates go down
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- Higher interest rate
- Higher mortgage payments
- Rate does not drop if interest rates improve
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ARM Products:
10/1 ARM
7/1 ARM
3/1 ARM
5/1 ARM
1 year ARM
6 month ARM
1 month ARM |
- Lower initial monthly payment
- Lower payment over a shorter period of time
- Rates and payments may go down if rates improve
- May qualify for higher loan amounts
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- More risk
- Payments may change over time
- Potential for high payments if rates go up
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Baloon Mortgages:
7 year
5 year |
- Lower initial monthly payment
- Lower payment over a shorter period of time
- Many balloon mortgages offer the option to convert to a new loan after the
initial term.
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- Risk of rates being higher at the end of the initial fixed
period
- Risk of foreclosure if you cannot make balloon payment or if you cannot
refinance or if you cannot exercise the conversion option
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First Time Buyer Programs:
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- Lower down payment
- Easier to qualify
- Sometimes you may get lower rate
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- May be subject to income and property value limitations
- Some programs which have government subsidies may have a recapture tax if
you sell the house too early.
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Stated Income Programs:
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- Don't need to verify income
- Faster approval
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- Higher rates
- Higher down payment
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No Point, No Fee Programs:
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- No closing costs
- Less money required to close
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- Higher rates
- Higher payments
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Imperfect Credit Programs:
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- Potential for re-establishing credit if you pay your mortgage on
time.
- When used for debt consolidation, you may be able to reduce your monthly
debt payment
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- Higher rates
- Terms may not be as favorable
- Harder to get long term fixed loans
- Loans may have prepayment penalties
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Home Equity Line of Credit Programs:
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- You only borrow what you need
- Pay interest only on what you borrow
- Flexible access to funds
- Interest may be tax deductible
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- Rates can change. The maximum interest rate is normally
high.
- Payments can change
- Harder to refinance your first mortgage
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Home Equity Fixed Loan Programs:
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- Fixed payments
- Interest may be tax deductible
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- Higher interest rates than on 1st
mortgages
- Harder to refinance your first mortgage
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Besides the standard loan programs, Justin can also offer a
large number of unique programs to serve your needs:
- Purchase a house with 0 down
- Piggyback loans 80-10-10 or 80-15-5. No PMI payments even with 5% or 10%
down.
- Debt consolidation programs
- Home Improvement loans
- Qualify even if you may have been turned down before!
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