Loan Programs

There are a lot of loans out there, and our job is to help you find the one that best suits your needs and determine if you're eligible or not. Here are some of the loans we offer:

Conventional Loans are not insured or guaranteed by the Federal Government and meet Fannie Mae and Freddie Mac guidelines. Most loans are in this category with down payments varying depending upon the particular loan program. The conventional conforming loan limit is $500,550 for properties in the State of Hawaii.

Fixed Rate Loans have fixed interest rates (will not change) for the term of the loan, which can be from 15 to 40 years depending on the loan program. Monthly payments are amortized over the full term of the loan. The 30 year fixed rate loan is the most common loan obtained and gives the borrower the peace of mind of a stable interest rate payment.  This is a good option when rates are low and expected to rise.

Adjustable Rate Loans or Adjustable Rate Mortgages (ARM), typically have lower interest rates than the fixed rate programs and are fixed for a certain period of time at the beginning of the normal 30 year term.  The fixed period of time will range from 6 months to 7 years.  After the fixed period, interest rates can adjust monthly or yearly depending on the loan program.

The interest rate for each type of ARM loan is calculated using a formula which adds index and margin. There are many types of indexes, the most popular of which are: 1 year Treasury securities (T- BILL) , 6 month certificates of deposit (CD) , London Interbank Offered Rate (LIBOR), or 11th District Cost of Funds (COFI). The index is a value which is constantly changing based on market conditions.

No Income Verification Loans, (NIV), also known as a Stated Income loan are for borrowers that have difficulty in proving or documenting income.  This loan will require verification of typically at least 2 years employment and assets.  Credit scores, credit history, and down payments must meet requirements of loan programs.  Usually interest rates are higher.

No Income / No Assets, (NINA), are for borrowers that have difficulty in proving or documenting employment, income, and assets. Credit scores, credit history, and down payments must meet requirements of loan programs.  Interest rates are higher.

Interest Only Loans will allow the borrower to pay interest only for a set period of time, such as 3, 5, 7 or 10 years. After the end of the interest only period, the monthly payments readjust to include the principal, and the loan is re-amortized for the remaining years which can cause the payment to rise substantially. Credit scores, credit history, and down payments must also meet requirements of loan programs.  This loan will give the borrower lower monthly payments and greater cash flow.

“Less Than Perfect Credit” Loans also know as sub-prime or “B” paper loans are for borrowers with low credit scores, in general less than 660, and might have a credit history of collections, late payments, charge-offs, bankruptcies, tax liens, etc.  Depending on their credit, borrowers can take advantage of 100% financing and no income verification loans.  Interest rates are higher for these programs and are subject to prepayment penalties.

First Time Home Buyer Loans will typically offer 100% financing.  Some programs will offer 103% to help the borrower cover closing costs.  These loan programs will sometimes make it easier for borrowers to qualify, however, it could be subject to income and property limitations.

Construction Loans normally will combine the construction and permanent financing of your project. You qualify for the loan once for the construction and the permanent loan. During the construction period, interest is charged only on the funds that have been disbursed. When the project is completed, the permanent loan period begins.   

Vacant Land Loans will require down payment, monthly payments could be interest only, and terms will range from 3 to 30 years depending on the loan program.

Loans for Lava Zones 1 and 2 are lender specific.  Most lenders will not loan on properties located in these zones.  As a mortgage broker we have access to lenders that offer a full range of loan programs with competitive rates, not increased to compensate for these zones.

Please contact us for more information and/or a free no obligation pre-qualification.