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Menu of Loan Products
A wide variety of loans to meet any financing need:
| Home Mortgage: |
Home Equity: |
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| Years you plan to stay in your home |
Years |
Suggested Loan Program |
| 1 - 3 |
2/1 ARM, 3/1 ARM or Option ARM |
| 3 - 5 |
5/1 ARM, or Option ARM |
| 5 - 7 |
5/1, 7/1 ARM or Option ARM |
| 7 - 10 |
10/1 ARM, 30 Year Fixed or 15 Year Fixed |
| 10 + |
30 Year Fixed or 15 Year Fixed |
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| Fixed Rate Loans (1st mortgage only) |
| Stability -- Monthly principal and interest payments do not change over the term of the loan, which means expenses are easily anticipated. Learn more about Fixed Rate loans. |
Loan Program |
Why select this loan type? |
Disadvantages? |
| Basic 30 or 15-year Fixed Rate Loan |
You want a fixed monthly payment which doesn't change during my loan period.
-or-
You believe interest rates will rise and you expect to stay in your house for more than 5 years. If you seek stability, this may be the best option for you.
Loan features: Loan to Value (LTV) to 97%. |
But: Interest rate and total interest paid will be higher (than adjustable rate loans), and with less flexibility, you can't take advantage if market rates decline. |
Zero Down Plus loan
(103-107% LTV loan) |
You have stable income but no savings for a down payment. If you have limited or no cash for a down payment or closing costs, this is your best loan choice.
Loan features: 30-year term, LTVs range from 100-107%, no mortgage insurance required, loan amounts to $650,000, allows for closing costs or debt consolidation included in financing. |
But: Higher interest rates. |
| No PMI loan |
You have less than 20% for a down payment but want to avoid paying the PMI usually required when LTV is over 80%.
Loan features: No PMI is a key feature of our Zero Down Plus loan (see above). |
But: You trade off the cost of traditional mortgage insurance by paying a higher interest rate. |
| Stated income loan |
You can't or won't document your income. If you are self- employed or can't document a large portion of your income, these loans do not require income verification.
Loan features: 90-100% LTV depending on loan and credit; no tax returns, W-2s, or proof of assets required. |
But: You pay a higher interest rate when full documentation of income is not provided. |
| Adjustable Rate Loans (ARMs) |
| ARMs give you the security of a fixed rate mortgage for up to 10 years with lower payments. ARMs offer fixed rate periods of 6 months, 1, 3, 5, 7, and 10 years before converting to an adjustable rate for the remainder of the 30-year term. The increased risk associated with these loans usually means you are rewarded with a lower interest rate during the fixed portion of the term. Learn more about ARMs. |
| Loan Program |
Why select this loan type? |
Disadvantages? |
| Fixed Period ARMs |
You want to start with a low payment, or want to afford more home.
-or-
You know you will sell or refinance before the adjustable period begins.
Loan features: Lower fixed rate (when compared with fixed rate loans) for 1, 2, 3, 5, 7 or 10 years, then adjusts annually based on a financial index. LTVs to 95%. |
But: Increased risk, inability to predict housing costs after fixed period ends, potentially higher payments after fixed period ends. |
| Flex-Pay (interest only) loans |
You want to minimize my monthly payments, and save cash for other purposes-debt reduction, investment, savings.
-or-
You want to afford the most home possible (by changing my debt to income ratio)
Loan features: Lower monthly payments made possible by deferring or reducing the payment of principal (interest payments are the only obligation for the first ten years of the loan-you pay as much or little principal as you want). |
But: Little or no repayment of principal until adjustable period begins, when payments increase significantly. |
| Bad credit loans |
You have credit problems, your FICO score is below 620, or you can't meet the qualifying requirements for most home loans.
Loan features: 2/28 ARM where LTV ranges from 80-95%, depending on your credit. |
But: Borrowers will less-than-perfect credit pay higher interest rates. |
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| Special loan programs: To help you qualify or pre-qualify for more! |
| Don't miss out on a great loan or your dream home just because you don't have adequate cash for a down payment, have credit problems, or special financial circumstances which might disqualify you from many loans and lenders. We can help! |
| Loan Program |
Why select this loan type? |
Disadvantages? |
Zero Down Plus loan
(103-107% LTV loan) |
You have stable income but no savings for a down payment. If you have limited or no cash for a down payment or closing costs, this is your best loan choice. |
But: Higher interest rates. |
| Flex-Pay (interest only) loans |
You want to minimize my monthly payments, and save cash for other purposes-debt reduction, investment, savings.
-or-
You want to afford the most home possible (by changing my debt to income ratio).
Loan features: Lower monthly payments made possible by deferring or reducing the payment of principal (interest payments are the only obligation for the first ten years of the loan-you pay as much or little principal as you want). |
But: Little or no repayment of principal until adjustable period begins, when payments increase significantly. |
| Bad Credit loans |
You have credit problems, your FICO score is below 620, or you can't meet the qualifying requirements for most home loans.
Loan features: 2/28 ARM where LTV ranges from 80-95%, depending on your credit. |
But: Borrowers will less-than-perfect credit pay higher interest rates. |
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| Home Equity Line of Credit |
| A home equity line of credit is a form of revolving credit in which your home serves as collateral. Think of it as a credit card that is secured by the equity in your home. Many homeowners use these credit lines for major items such as debt consolidation, travel expenses and home improvements. |
| Loan Program |
Why select this loan type? |
Disadvantages? |
Home Equity Line
of Credit (HELOC) |
- Flexible access to funds
- Potential tax advantages
- You only draw what you need
- You only pay interest on what you borrow
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- Ties up equity making it unavailable for other needs
- Higher interest rate than a first mortgage
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| Home Equity Loan (Second) |
| A home equity loan enables you to borrow money in a lump sum against the equity (the value of your home minus what you owe) you have built up in your home. This loan is subordinate to the existing first mortgage. Buyers commonly use a second mortgage to keep their first mortgage in the conforming loan range (which keeps the rate lower) and to avoid PMI. Home equity loans are often used to pay off credit card debt, buy a car or to make major renovations to a home. |
| Loan Program |
Why select this loan type? |
Disadvantages? |
Home Equity Loan
(Second) |
- Predictable fixed payments
- Possible tax advantages
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- Ties up equity making it unavailable for other needs
- Higher interest rate than a first mortgage
- Cannot pay down and withdraw additional funds
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Watkins Home Loans also offers VA and FHA loans. However, because you may qualify for even more competitive rates and loan amounts than those offered by VA and FHA, you are encouraged to apply for non-conventional loans as well.
Please note that various lender conditions apply to all loan products, depending on the size of the loan, down payment amount, loan-to-value ratio, applicant credit history, and other conditions.
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All rights reserved. Property of Watkins Realty Group. No part of this website may be reproduced by any means, electronic or mechanical, without advance written permission from Watkins Realty Group.
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