If you are purchasing South Lake Tahoe real estate, there are multiple loans available. In fact, just as you would search for a South Lake Tahoe realtor, you should search for different loan options. Loans are not “One Size Fits All”. If you are buying South Lake Tahoe real estate, take a look at these different loans.
Adjustable Rate Mortgage
Adjustable rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan.
Balloon Payment Loan
A fixed rate loan that is amortized over 30 years but becomes due and payable at the end of a certain term. May be extended or may roll-over into another type of loan.
Buy-Down Loan
Buy-Down Loans are fixed rate loans where the interest rate and the payment are reduced for a specific period of time by passing the interest up front to subsidize the lower payment.
Community Home Buyers Program
A fixed rate loan for the first time home buyer with a low down payment usually 3-5 %, no cash reserve requirements and easier qualifying ratios. Qualification is subject to borrower meeting income limits and attendance of a four hour training course on home ownership.
Conventional Loan
Conventional loans are sometimes more lenient with the appraisal and condition of the property. When you are buying a “fixer upper” you may need to use a conventional loan.
FHA Loan
FHA loans are insured by the Federal Housing Administration under H.U.D. They offer a low down payment and are easier to qualify than conventional loans.
Fixed Rate Loan
A fixed rate loan has one interest rate that remains constant throughout the life of the loan.
Graduated Payment Mortgage
A fixed rate loan that has payments starting lower than a standard fixed rate loan, which then increases by a predetermined amount each year for a set number of years.
Mortgage Credit Certificate
A first time home buyer program is subject to purchase price and income limits to some areas. It is actually a special tax credit and assists the buyer in qualifying for many loan programs.
Non-Qualifying Loan (assumable)
Non qualifying loans are pre-existing loans which can be assumed by a buyer from the seller of a property without going through the qualifying process. The buyer pays the seller for their equity and then starts making payments.
VA Loan
VA loans are guaranteed by the Veterans Administration. A veteran must have served 180 days of active service. The maximum VA loan is currently $203,000 with no down payment.
For more information on South Lake Tahoe real estate, give me a call. I would be happy to help!
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