Posted on: 08th Dec, 2005 08:23 pm
The mortgage industry offers a variety of loan programs suitable for a wide range of borrowers. There are loans that require high payments but there are also programs specially developed to provide homeownership opportunities to low-income families. These mortgages have special features and one really needs to get a brief idea of their pros and cons before he applies for it.
This section provides you with an explanation of mortgage types and their features. Apart from highlighting the types of mortgage loans, this section also mentions who all are suitable for the different types of mortgages. The purpose is to help you explore the features of various types of mortgage loans so that you can compare and choose the one that's best for you.
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This section provides you with an explanation of mortgage types and their features. Apart from highlighting the types of mortgage loans, this section also mentions who all are suitable for the different types of mortgages. The purpose is to help you explore the features of various types of mortgage loans so that you can compare and choose the one that's best for you.
Types of mortgages | Features | Eligible Borrowers |
Fixed rate mortgage (40, 30, 15, 10 years) | Fixed rate of interest and hence fixed Monthly payments throughout the loan term. |
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10/1 year ARM | Interest rate and the monthly payment remain the same for 10 years. From the 11th year, the rate is adjusted every year. This will change the payments each year for the rest of the loan term. |
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7/1 year ARM | Interest rate and monthly payments remain fixed for the first 7 years. From the 8th year, interest rates are adjusted every year. The payments are thus changed every year till the loan period is over. |
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7/23 (2-Step) | Fixed rate and monthly payments for first 7 years. On the 8th year, the interest rate is adjusted according to prevailing market rates. The resulting payments will remain constant for the remaining loan period. |
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5/25 (2-Step) | Interest rate and monthly payment remain the same for the first 5 years of the loan period. The rate is adjusted on the 6th year to reflect the prevailing rate. The resulting payment remains constant throughout the rest of the loan term. |
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5/5 and 5/1 year ARM | For the first 5 years, the interest rate and monthly payment remain constant. But from the 6th year, the rates adjust after every 5 years and 1 year respectively. |
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3/3 and 3/1 year ARM | The interest rate and monthly payments remain fixed for the first 3 years. From the 4th year, the rates are adjusted in every 3 years and 1 year respectively. |
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1 year ARM | The interest rate is adjusted every year as a result of which the monthly payments also vary each year for the entire loan term. |
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5 year Balloon Mortgage | Interest rate and monthly payments remain unchanged for the first 5 years. After 5 years, the borrower must refinance the loan (which is largely due) at the prevailing rates. |
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7 year Balloon Mortgage | Interest rate and monthly payments remain fixed for 7 years. At the end of 7 years, the borrower should refinance into a new loan at the prevailing market rates. |
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Iam living in mobile park! want to buy another in same park. I own mine clear and not elegilbe for loan as it is older! my bank does not do mobile home who do I go to get loan for the newer home I want to get ?it is a 1990
Hi shirley,
Not many lenders are offering loans to help borrowers finance the purchase mobile homes. You will have to search a bit to find out a lender who would finance the mobile home. You have not mentioned the credit scores? What are your scores?
There are lenders in this community, you can go for a no-obligation free mortgage consultation with the lenders in this community to find out if any of them can help you with a mobile home loan and whether you have the sufficient income and credit scores to qualify for it.
Hi Kathleen,
Most of the lenders would not want to finance an old mobile home in this market. So, finding a lender to finance the 1990 mobile home will be difficult for you. But you can check out if the lenders in this community can assist you with a mobile home loan through a no-obligation consultation.
Not many lenders are offering loans to help borrowers finance the purchase mobile homes. You will have to search a bit to find out a lender who would finance the mobile home. You have not mentioned the credit scores? What are your scores?
There are lenders in this community, you can go for a no-obligation free mortgage consultation with the lenders in this community to find out if any of them can help you with a mobile home loan and whether you have the sufficient income and credit scores to qualify for it.
Hi Kathleen,
Most of the lenders would not want to finance an old mobile home in this market. So, finding a lender to finance the 1990 mobile home will be difficult for you. But you can check out if the lenders in this community can assist you with a mobile home loan through a no-obligation consultation.
I own a mobile home on almost two acres of land in Texas. I am trying to sell my property. I have an interested buyer, but he can only qualify for an FHA loan. Do you know if FHA will loan money for my property? I was told that the house has to be placed on concrete slabs to qualify for FHA financing. Is there anything I can do to help the buyer find financing? I also noticed that the VA has a program. Do you know what there requirements are?
I need lower interest rates and lower payments. Taking care of Grandson and son who is disabled.I'm disabled, husband is the only one who works.We have been thru so much personal Tragedies since 2002. People would not believe it. we officially have nothing in our name.
our credit still has a bankruptcy on it . where my husband was laid off with 500 other co workers. we have not bought anything we could fix. I say fixed rate.
our credit still has a bankruptcy on it . where my husband was laid off with 500 other co workers. we have not bought anything we could fix. I say fixed rate.
Hi dobb,
Have you talked to your lender regarding the loan modification? Write a hardship letter to the lender informing them about the financial hardship you are facing. The lender may agree to modify your loan, if he thinks you are in serious financial difficulty. However, even if your loan is modified, you will still need to have a certain amount of monthly income to qualify for the modification.
Have you talked to your lender regarding the loan modification? Write a hardship letter to the lender informing them about the financial hardship you are facing. The lender may agree to modify your loan, if he thinks you are in serious financial difficulty. However, even if your loan is modified, you will still need to have a certain amount of monthly income to qualify for the modification.
do you know who does manufactured home loans with foundation
To kimkim,
If your mobile home is placed on a permanent foundation, it can get an FHA insured Title I loan. It is comparatively easy to qualify for a loan on a mobile home with permanent foundation. However, given the market situation, it could be a little difficult for you to find a mobile home loan lender. You may go for a no-obligation free mortgage consultation with the lenders in this community to find out if they can help you with the loan. You may also contact your local lenders to check out if any of them can offer you the loan.
If your mobile home is placed on a permanent foundation, it can get an FHA insured Title I loan. It is comparatively easy to qualify for a loan on a mobile home with permanent foundation. However, given the market situation, it could be a little difficult for you to find a mobile home loan lender. You may go for a no-obligation free mortgage consultation with the lenders in this community to find out if they can help you with the loan. You may also contact your local lenders to check out if any of them can offer you the loan.
Please advise on this info: I have pretty good credit, I am thinking maybe a 690? I have an excellent offer from a family member to buy a 2005 double wide mobile in a 55+ park, I would be paying space rent, as the land is not included. Cost to me would be $50,000. I live in Hemet CAlifornia, and the mobile park is 5 miles away in San Jacinto. thanks
I have signed a contract to purchase a home. I currently rent paying 850. monthly. This contract is for 100,000. I am currently not working receiving unemployment. But I also receive child support and I have a adopted child which I receive a montly payment for. Using these incomes can I apply for a mtg loan
I've been trying to get my 1st mortgage modified for the past 2 years. I'm in a Neg Am Loan at 7.35%. The loan company was CountryWide and sold my loan to Private Lenders that decline the Obama loan programs, etc..and have been turning me down to rewrite my loan. I've been paying the neg am low paying payment that I can afford; I can't refi because my loan is $792,000 and my home has dropped in value to $860,000 so I would have to short sell. I want to stay in my home. All I need is a decent payment fixed. I'm a little in debt but can pay down my debt making my credit to 70.0 but I don't want to use that money to do this in case I have to move. If I were assured I could get a refi with a decent fixed payment I would. I'm at a loss and I need to do something very soon about this situation. I read about foreclosures and chapter 13, but I've always had good credit. Any thoughts on this would be appreciated. Thank you.
welcome dsavedra,
you need to check out if there is any equity in your property. if you have equity in it, then only the lender will be ready to refinance your mortgage. if there is no equity, then you will have to negotiate with your private lender to modify your loan. if your lender is not ready for a modification, then you will have to sell off the property through a short sale.
you need to check out if there is any equity in your property. if you have equity in it, then only the lender will be ready to refinance your mortgage. if there is no equity, then you will have to negotiate with your private lender to modify your loan. if your lender is not ready for a modification, then you will have to sell off the property through a short sale.
I want to finance the home if the rate is reasonable. However, the lot is not mine, and I am hearing the rates are 8.5% or thereabouts. Is this true?
As the property is located on a rented lot, you will have to go for a personal property loan. These loans are available at a higher interest rate.