Fixed-rate programs are usually identified by their term.

Fixed-Rate Programs

40-years

30-years

25-years

20-years

15-years

10-years

Balloon-loan programs are identified by the period for which the quoted rate holds. The balance is due at the end of that period.

Balloon-Loan Programs

5-year

7-year

The first figure is the initial rate period, the second figure is the rate adjustment period after the initial rate period ends. ARM programs are also identified by the interest rate index that they use, and other features. See Requirement 4.

Adjustable-Rate Programs

1 month/1 month

3 months/3 months

6 months/6 months

1 year/1 year

3 years/1 year

5 years/1 year

7 years/1 year

10 years/1 year

3 years/3 years

5 years/5 years

FHA Programs

VA Programs

Second Mortgage Fixed-Rate Programs

Second Mortgage Adjustable-Rate Programs

State Coverage

Not all lenders operate in every state.

All states except: DE, KS, LA, NE, NJ,

NV, NY, PA, RI, UT, VT

Property Types

Few lenders make loans on all types of properties

Single-family

2-4 family homes

Condo, less than 5 stories

Condo, more than 5 stories

Co-ops

Manufactured homes

Land

In a planned unit development (PUD)

Farms

Commercial

Alternative Documentation

The precise details of alternative documentation requirements may differ a little from one lender to another.

"Stated income", "stated assets", or both: income and/or assets are disclosed but not verified by lender.

"No ratio": maximum ratios of housing expense and total expense to income are ignored by lender.

"No income", "no assets", or both: income and/or assets are not disclosed.

Options

Shoppers should expect to pay more for a waiver of escrows or a float-down, less for accepting a prepayment penalty. A float-down is a lock plus the right to a lower rate if market rates decline.

Waive escrow of taxes and insurance

Prepayment penalty

Float-down

Interest-only

Temporary buydown

Special Loan Purposes

All of these cost more than loans taken out to purchase a home for permanent occupancy, or to refinance with no cash out.

Cash-out refinance

Use house as vacation or second home

Rent out house

Borrower a non-resident alien

Construction loan

Bridge loan

Maximums and Minimums Across All Programs

Max & Min of Lender

Warning! The maximums and minimums vary for different programs. For example, the longest lock might be available for ARMs but not FRMs. Further, the stated maximums and minimums are not likely to be available on the same loan. Don't expect to get a 107% loan, for example, if you have a 540 credit score. (Note: you can get your credit score on www.myfico.com.) Housing expense is the sum of the mortgage payment, property taxes and homeowners insurance.

Maximum ratio of loan to value

100%

Minimum credit score

NA

Maximum loan size

$1.5 million

Minimum loan size

$10,000

Maximum ratio of housing expense to income before taxes

NA

Maximum ratio of housing expense plus other debt payments to income before taxes

NA

Longest lock period available

60 days