An adjustable rate mortgage may offer a lower initial interest rate and monthly payments than a conventional fixed rate mortgage. After an initial term, the interest rate on an adjustable rate mortgage loan is re-set periodically to keep the rate in line with current market interest rates.
For example, a 3/1 ARM loan offers a fixed rate for the first 3 years. The interest rate adjusts once a year thereafter. 5/1, 7/1 or 10/1 ARM loan offer a fixed rate for the first 5, 7 or 10 years respectively, adjusting yearly thereafter.
We set the adjustable interest rate by adding a fixed percentage to an index rate. When the interest rate goes up, your monthly payment also increases.
ARM loans have a periodic rate cap and lifetime cap to limit the amount the interest rate can increase each adjustment period and over the term of the loan. If your start rate is less than the fully indexed rate, your interest rate and monthly payment may increase significantly at the first adjustment – even if the Index does not change. And, your interest rate and monthly payment will increase even more if the Index rises.

With an interest only mortgage, your mortgage payment covers interest only, with no principal reduction for a designated period of time. Payments will be lower during the interest-only period and increase when that period is over.
If you choose an interest only mortgage, you may not build equity during the interest only period if you make the minimum payment each month. At the end of the interest only period, your monthly payment will increase even if interest rates haven’t changed. If you try to sell your home before you reduce the principal, you could risk getting little or no money from the sale.
An advantage of and interest only loan, is that you can choose to make payments above the interest-only amount. All of the overpayment is applied directly to the principal you owe, so this product provides the opportunity for aggressive principal reduction.

The Federal Housing Administration’s loan programs enable more buyers to qualify for a mortgage. With more flexible credit guidelines, FHA mortgages can be a viable choice for first time buyers, buyers with less than perfect credit, self-employed buyers, buyers with limited liquid assets for a down payment or buyers with short or interrupted employment histories.
FHA loans can also be used to refinance an existing mortgage. The down payment on an FHA loan can be as low as 3.5% of the purchase price. To reduce the amount of cash needed at closing, the upfront mortgage insurance premium can be included in the mortgage. Borrowers are also responsible for paying monthly mortgage insurance premiums.
Additional information can be found at hud.gov

Second Mortgage: We offer 2nd mortgages in conjunction with our 1st mortgage products. A second mortgage may provide an option for borrowers who want to minimize their down payment but do not want to pay for private mortgage insurance.
Alternative Documentation: Our alternative documentation product is for self-employed borrower with strong credit scores and verified assets.