Fixed rate loans offer a set interest rate and payment amount for the entire length of the mortgage, usually 15 or 30 years. One of the advantages of this type of mortgage is that you'll know how much you will be paying toward the loan every month, allowing you to plan accordingly.
Adjustable rate mortgages (also called ARMs, or variable rate loans) usually start with a lower interest rate than most fixed rate mortgage loans. The initial interest rate is fixed for a set period of time (often 1, 3, 5, or 7 years) at the beginning of the loan. When that period ends the rate will periodically change based on a set schedule and your payment will either increase or decrease. The monthly payment adjustment will be based on a specified index (like the LIBOR or T-Bill) and a predetermined margin.
FHA loans are insured by the Federal Housing Administration, and allows borrowers to put as little as a 3.5% down payment on a home. FHA loans also allow the down payment or closing costs to be paid by a gift.
VA loans are guaranteed by the Department of Veterans Affairs and are available to veterans and those currently serving in the military. VA loans are often made with little to no down payment.
USDA loans are guaranteed by the United States Department of Agriculture, and are only available in eligible geographic areas. These loans can provide 100% financing.
Foreign National Loan
Foreign National Loans are mortgaged to a non-resident of the United States. The minimum down payments are usually between 30% -40% down with an option to Fixed or Arm loan for either 15 or 30 years loan.
Mortgages are approved for terms up to 30 years. For the first 3-5 years the interest rate is fixed, thereafter the rate will change in accordance with the LIBOR (London Inter-Bank Offered Rate) index. It usually takes from 30 to 45 days to close. Mortgages may also be issued to a U.S. Corporation or LLC as well as to an individual.
Items required to obtain a foreign national loan:
• Copy of the last 3 months of bank statements, with a balance sufficient for the down payment, closing costs and 2 months of reserves for the monthly mortgage payment.
• One Reference Letter from the accountant, specifying services rendered by the company, position, percentage of shares and declared Income taxes revenues for the last 2 years .
• Copy of last 2 years of Income Tax Returns.
• 2 Bank reference letters.( Letters must be dated, with bank name, address, phone number, full name and signature of the account manager).
• 2 Credit Reference letters of in the country of origin on a letterhead, dated, stamped with the company name, address, phone number, full name and official title (must be at least 24 months of credit history). Ex: letter from the insurance agency
• Copy of the last 3 months of credit card statements.
• Proof of address. Ex: Copy of a utility bill or phone.
• Copy of passport and visa.
A commercial mortgage is a mortgage loan secured by commercial property, such as an office building, shopping center, industrial warehouse, or an apartment complex. The proceeds from a commercial mortgage are typically used to acquire, refinance, or redevelop commercial properties.
Commercial mortgages are structured to meet the needs of the borrower and the lender. Key terms include the loan amount (sometimes referred to as "loan proceeds"), interest rate, term (sometimes referred to as the "maturity"), amortization schedule, and prepayment flexibility. Commercial mortgages are generally subject to extensive underwriting and due diligence prior to closing. The lender's underwriting process may include a financial review of the property and the property owner (or "sponsor"), as well as the commissioning and review of various third-party reports, such as an appraisal.