© OnCourse Learning Chapter 14 : Types of Financing

 Interest rate  Margin  Adjustment period  Interest rate cap  Payment cap  Negative amortization  Disclosures ADJUSTABLE RATE MORTGAGE What to look for? © OnCourse Learning

ADJUSTABLE RATE MORTGAGE

 Graduated Payment Mortgage  Equity Sharing  “Rich Uncle” Loan  Package Mortgage OTHER FINANCING © OnCourse Learning

 Blanket Mortgage  Reverse Mortgage  Interim Loan  Construction Loan  Blended-Rate Loan  Equity Loan OTHER FINANCING (CONTINUED ) © OnCourse Learning

 Underwriting standards are modified to recognize different forms of credit responsibility.  Pre-purchase home buyer education.  Low down payment. AFFORDABLE HOUSING LOANS © OnCourse Learning

 97% Conventional Loan  The Nehemiah Program  Seller Financing  Wraparound Mortgage  Subordination  Contract for Deed MORE FINANCING © OnCourse Learning

 The current owner of the property agrees to accept part of the purchase price in the form of a loan (promissory note and mortgage or deed of trust) also becoming the lender in the transaction. SELLER FINANCING © OnCourse Learning

Wraparound Mortgage Buyer Seller $20,000 Debt $60,000 Debt 1 st Lender (Includes wrapped $20,000) © OnCourse Learning

 Option  Rental  Land Leases  Creative FINANCING © OnCourse Learning

ARM Blanket mortgage Construction loan Equity sharing GPM Negative amortization Option Package mortgage RAM Seller financing Wraparound mortgage Key Terms © OnCourse Learning