In addition, when interest rates for 30-year fixed-rate mortgages are high, an Adjustable-Rate Mortgage (ARM) loan can be favorable. 7/1 and 10/1 ARMs are 30-year loans with an initial fixed-rate period followed by an adjustable-rate period.
- 7/1 ARM: Fixed rate for seven years and then adjusts every year based on current interest rates.
- 10/1 ARM: Fixed rate for ten years and then adjusts every year based on current interest rates.
Program Highlights:
- Up to 95% Loan-To-Value (5% down payment) on primary purchases and rate/term refinances
- 90% Max LTV allowed for second home purchases and rate/term refinances
- 80% Max LTV allowed on cashout refinances
- Commitment fee is 1.5% of the loan amount
- No MI required
- Conforming loan maximum by market
- Two most recent bank statements to verify closing funds
- 1 year tax return filed with ITIN to support income
- At least 2 credit lines with minimum 1-year history for each borrower