Type of Program |
Advantages |
Disadvantages |
First Time Buyer Programs |
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Lower down payment |
May be subject to income and property value limitations |
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Easier to qualify |
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Sometimes a lower rate |
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Stated Income |
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Don't need to verify income |
Higher rates |
| |
Faster Approval |
Higher payments |
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No Point, No Fee Programs |
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No closing costs |
Higher rates |
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Less money required |
Higher payments |
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Imperfect Credit Programs |
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Potential for re-establishing credit if you pay your mortgage on time |
Higher rates |
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When used for debt consolidation, you may be able to reduce your monthly debt payment |
Terms may not be as favorable |
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Harder to get long term fixed loans |
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Loans may have prepayment penalties |
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Home Equity Line of Credit |
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You only borrow what you need |
Rates can change |
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Pay interest only on what you borrow |
The maximum interest rate is normally high |
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Flexible access to funds |
Payments can change |
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Interest may be tax deductible |
Harder to refinance your first mortgage |
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| Home Equity Fixed Loan |
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Fixed payments |
Higher interest rates than on 1st mortgages |
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Interest may be tax deductible |
Harder to refinance your first mortgage |
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