Loan Program

Besides our standard loan programs, we also have 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
  • Construction loans
  • Commercial loans
  • Qualify even if you may have been turned down before!
  • Reverse Mortgages to Loan Programs
  • 100% Financing to 1,000,000

Loan Programs
Advantages
Disadvantages
Fixed Rate Mortgages
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
• Higher interest rate
• Higher mortgage payments
• Rate does not drop if interest rates improve
Adjustable Rate Mortgages
10/1 ARM
7/1 ARM
3/1 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
• More risk
• Payments may change over time
• Potential for high payments if rates go up
Balloon 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.
• 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
First Time Buyer Programs • Lower down payment
• Easier to qualify
• Sometimes you may get lower rates
• 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.
Stated Income Programs • Don’t need to verify income
• Faster approval
• Higher rates
• Higher down payment
No point, No fee Programs • No closing costs
• Less money required to close
• Higher rates
• Higher payments
Imperfect Credit Programs • Potential for reestablishing credit if you pay your mortgage on time.
• When used for debt consolidation, you may be able to reduce your monthly debt payment
• Higher rates
• Terms may not be as favorable
• Harder to get long term fixed loans
• Loans may have prepayment penalties
Home Equity Line of Credit • You only borrow what you need
• Pay interest only on what you borrow
• Flexible access to funds
• Interest may be tax deductible
• Rates can change. The maximum interest rate is normally high.
• Payments can change
• Harder to refinance your first mortgage
Home Equity Fixed Loan • Fixed payments
• Interest may be tax deductible
• Higher interest rates than on 1st mortgages
• Harder to refinance your first mortgage

American Dream Financial 1500 E. Hamilton Ave., Suite 215, Campbell, CA 95008 408.369.8500 Tel, 408.369.8501 Fax