The interest rate on a Fixed Rate loan remains constant for the term of the loan.  So, your loan payments (combined interest and principal) remain constant for the life of the loan.  Consider a fixed rate loan if you want to lock in your debt expenses for a long time, or if you think interest rates are likely to rise before you sell or refinance your property.

Commonly know as ARM's or Adjustable Rate Mortgages.  The interest rate is usually fixed for some period of time, then adjusts once a year thereafter.  For example, the rate on a 3/1 ARM would be fixed for 3 years, then would adjust once a year for the remainder of the term of the loan.  The rate is often based on an index such as the Prime Rate, 10 year Traesury rate, or LIBOR.  The rate you pay varies with the index.  Minimum rates, yearly increases, and maximum rates are ususally specified.  They can be fully amortizable, or specified with balloon payments at the end of the term.  Consider this type of loan if you intend to hold your property for only a few years, if you think rates are likely to remain constant, or for revenue generating properties for which you are likely to be able to charge more rent in the future.

You state the amount of income you want the lender to consider in assessing your qualifications for a loan.  Lenders usually require that you have cash deposits equivalent to 6 months of your stated income, although this requirement varies.  Rates for stated income loans tend to be higher than those on loans for which income is verified.  However these types of loans can be beneficial if your income fluctuates greatly year-to-year.

For these programs your income is not discolsed to the lender.  Your credit scores and the Loan-To-Value ratio are the primary factors considered for qualification.  Because the risk to the lender is less well defined, rates for these programs tend to be higher than those for Stated Income loans.  They are worth considering if you can't qualify for lower rate programs that require income verification. 

Your payments cover only the interest charged for use of the lender's funds.  There is no amortization of the principal amount of the loan, which will be due at the end of the loan term.  While these loans minimize your monthly payment amount, it is important to have a strategy for eventual repayment of the principal.  We generally do not recommend these types of loans except under certain conditions where an experienced borrower seeks to preserve their cash flow and the property is likely to appreciate at a healthy rate.

These fund the building of a residential or commercial structure.  Proceeds can also be used to buy or pay off a loan on the associated land.  These are typically interest only for the period of construction.  If desired, the required interest payments can be included in the loan amount so that the borrower need not make payments during that period. 

"One-time close" loans provide funding for land and construction, then convert or "modify" to a traditional fixed or adjustable rate mortgages, without additional fees or charges.  They are ideal for projects that will be occupied by the owner at completion of construction.

Alternately, at the end of construction, the borrower makes a balloon payment of amount due or refinances the completed project.

This is a unique type of financing for custom home builders.  The loan is in the name of the builder, giving the builder complete control over disbursement of the loan proceeds, and providing simpicity for the builder's client.  Typically the builder can borrow up to 90% of the costs to build (including land costs) or 80% of the appraised value of the finished project.   

Commercial loans are for acquisition of office, retail, warehouse, or industrial properties, any of which can be owner occupied or for lease.  Although owner income and assets are considered, the primary factor in qualifying for a commercial loan is the Net Operating Income produced by the property.  Commercial loans typically have adjustable rates, relatively short terms, and ballon payments.  However fixed rate, fully amortized programs are available.