1. Subprime loans 500 score – 0 down – ARM
a. Bad credit – adjustable rat -no down payment e – NO CHANCE
2. 100% Investor loans.
a. No down payment – No experience – add in a declining market = foreclosure
3. Stated Income Loans (SISA)
a. Got a 680 credit score and a job? You to can own a home!
4. Fannie Freddie 0 Down loan
a. Good program for good borrowers – casualty of the times
5. 80/20 – 80/15/5
a. 2nd lien lenders never knew what hit them
6. Seller funded Down payment loans
a. Got a bad rap in many circles – was eliminated in the “Housing and financial recovery Act of 2008” Tell me again how eliminating programs is recovery!
7. Interest only loans
a. Still around – but not cost effective any longer.
8. NO DOC Loans (NINJA)
a. Got a Pulse?! GET A HOUSE!
9. Pay option Arms
a. Let’s put you into something that you cannot afford tease you with a 1% rate for the first month (that’s right one month) and then instead of paying down the mortgage lets increase how much you owe every month. Hum?
10. Level 1-3 loans with MI
a. Fannie and Freddie’s foray into the subprime arena. Rate was higher and the MI could be up to 4.5 times higher. On a 200k loan amount the MI could be up to 691 per month! As opposed to $130 per month on a conventional loan.
11. Jumbo 0 to 10% down – with low rates
a. Need a million dollars? Got a 680 credit score? Sure! Here is the check….just think about it!! Who needs a gun anymore