Under the Community Reinvestment Act (CRA), any homeowner living in or buyer purchasing in a designated census tract is eligable for special incentive financing, regardless of income.

One of the following options are availble from various financial instrutions:

• Up to $6000 credit towards your closing costs
• .5% interest rate reduction on any loano program up to $750,000.  100% financing OK for qualified buyers, with 2nd mortgage equity line or loan for the difference between the sales price and $750,000
• .25% interest rate reduction on any loan program
• Reduced margins on Option Arm loans up to 95% LTV

There are two different types of loans available to tap into equity - Fixed Rate (HELOAN) and Equity Lines (HELOC).  Equity loans are secured by the equity in a property and therefore the interest is usually tax deductible.  Equity loans can be originated at the time of purchase or anytime after closing.

Fixed rate seconds are fully amortized loans, sometimes with a balloon payment.  Common repayment periods are 15, 20, and 30 years.  The interest rates are based on the higher risk of a mortgage in second position.

Equity lines of credit have variable interest rates and repayment terms.  Equity lines are usually tied to the prime rate, plus a profit margin dependent upon the overall risk.  Unlike fixed rate seconds, accelerated paydown of principal reduces the required monthly payment.  As principal is reduced, additional equity becomes available and the borrower can draw off the equity again.  Interest is paid only on the outstanding principal balance at any time.  Equity lines of credit can also have portions of the line locked into a fixed rate at closing or after.

Financing to build a new home typically comes in the form of a construction-to-permanent loan.  This financing options has two parts: a loan to cover the costs of construction, and a mortgage on the finished (permanent) home.

A rehab mortgage loan provides homebuyers and current owners the best financing method available to improve property condition and value with one simple transaction.

A lot loan allows you to finance the purchase or refinance of a platted lot and, eventually, convert the loan to fund construction of your home and permanent mortgage

A bridge loan is a short-term loan to cover a home buyer's financing costs when selling one house and purchasing another. The loan provides funds to buy a new house before proceeds are available from sale of the old house.

A reverse mortgage is for homeowners at least age 62 and is loan against your home that you do not have to pay back for as long as you live there. It can be paid to you all at once, as a regular monthly advance, or at times and in amounts that you choose. You pay the money back plus interest when you die, sell your home, or permanently move out of your home.

In commercial financing, the most important factor is the value of the property and the cash flow.  Commercial financing is required for any residential property with more than four units, mixed use properties, and retail or office space.

The borrower is expected to meet the usual standard of credit worthiness, but qualifing for the loan is done primarily by the cash flow of the property.

The Option ARM loan program is an adjustable rate mortgage with the fleibility of making one of several payment option on your mortgage each month.

It's low introductory start rate and qualifing rates allow you to qualify for more home and make low initial payments.

Option ARM loans are right for you if you'd like to own your property only for a short time, and want affordability and flexibility in your payment.

*Be aware, if you select the minimum payment option, you should be prepared for payment shock when the rate adjusts.  Also, you could owe deferred interest if you sell or refinance your home.