Products Include (DESCRIPTIONS BELOW) :

• First time home-buyer programs

• 100% financing for investments

• Home Equity loans to 100%

• Purchase money for borrowers with damaged credit

• Jumbo loans for $1 million-plus homes

• Reverse Mortgages

• Commercial and Multi-Unit Financing

• Construction Loans

• Conventional Financing

• FHA Loans

• Veterans Administration (VA)

• 5/1 ARM

• 7 Year Balloon

---

First Time Home-Buyer Programs

A loan is considered a 1st time homebuyer loan when it has one or more features that are available only to 1st time homebuyers. For example, a lender may reduce its interest rate (typically by one eighth to one quarter of one percent), reduce or eliminate its closing costs and, if an adjustable rate mortgage, reduce its margin (typicaly by one quarter of one percent). Such a loan may also have less stringent loan qualification guidelines.

100% Financing for Investments

With Redwood Mortgage's investor financing program allows you to purchase an investment property with a little or zero down payment option. We execute loans that make sense and establish permanent relationships with reliable and successful investors. Our rates are based upon your performance and ability. Investment properties are not for everyone and we advise that you contact a Financial Planners or Tax Consultants before attempting to purchase an investment property.

Home Equity Loans to 100%

Borrow up to 100% of your home's equity, after subtracting your first mortgage.

Purchase Money for Borrowers with Damaged Credit

Every year, people are turned down for mortgage loans by banks and other financial institutions. Although they may have had some minor credit problems, these potential borrowers are usually responsible, creditworthy people. We offer a number of loan programs available for people who have been turned down by less progressive lenders. At Redwood Mortgage, we realize that circumstances beyond your control can lead to a negative credit report. We understand that a new loan can be the way to help you improve your financial status, especially if you pay off some of your current bills. We are willing to help you with your unique situation and borrowing needs. We have a variety of mortgage programs, one of which may be right for you!

Jumbo Loans

Loans in excess of FNMA/FHLMC limits (greater than $417,000) are called Jumbo loans and often carry higher interest rates and points. Larger down payments may also be required.

Reverse Mortgages

With a reverse mortgage, you remain the owner of your home just like when you had a forward mortgage. You are still responsible for paying your property taxes and home-owner insurance and for making property repairs. When the loan is over, you or your heirs must repay all of your cash advances plus interest. The amount of money you can get depends most on the specific reverse mortgage plan or program you select. Some reverse mortgages cost a lot more than others, and this reduces the amount of cash you can get from them. Within each loan program, the amounts you can get generally depend on your age and your home's value.

Commercial and Multi-Unit Financing

Loans for investors who own multi-unit homes (4 or more units), commercial office buildings, mobile home park, manufacturing buildings or medical office buildings.

Construction Loans

This type of loan is typically used to finance the construction of a home. It may or may not also include the purchase of the land upon which the home is to be built. Unlike a typical mortgage loan where the entire amount of the loan is disbursed to the borrower at the time the loan transaction is consummated, a construction loan typically involves a series of disbursements which are linked to a construction schedule. Some construction loans have fixed interest rates, others have variable interest rates. In addition, some construction loans automatically convert to a regular mortgage (referred to as "permanent" financing) once construction has been completed, while others require another loan transaction to take place so the borrower can payoff the construction loan and obtain permanent financing.

Conventional Financing

A conventional loan is a mortgage loan, which is not insured or guaranteed by any agency of the state or federal government. Many years ago, the only loans available for housing were conventional loans with very short terms of 3-5 years with balloon payments and high down payment requirements of as much as 50% down.

FHA Loans

FHA loans have a lower down payment requirement than conventional loans, but higher than VA loans. FHA has a more liberal qualifying formula than on conventional loans but not as liberal as VA loans. FHA loans made before December 15, 1989 are fully assumable and can be creatively financed. Loans made after December 15, 1989 can be assumed at the same interest rate with qualification. FHA is more lenient on properties that are older or are located in undesirable neighborhoods. Disadvantages - County loan limits may be inadequate in some high cost areas. Appraisals may contain more repair requirements than conventional loans.

Veterans Administration (VA)

The VA loan program for owner-occupied housing is one of the best loan programs in the free world. It is possible for a veteran to obtain 100% loans up to $203,000 with absolutely no down payment and the seller or builder is allowed to pay all of the veteran closing costs, making the total cash required to purchase, in some instances, zero. If the veteran desires higher priced homes, he generally is required to make a down payment on the amount over $203,000. Generally, the Veterans Administration is a little more liberal than conventional lenders would be with regard to the veteran's credit standing and qualifying for the VA loan, although recent VA underwriting changes make the qualifying criteria similar to conventional mortgages.

5/1 ARM

The 5/1 ARM mortgage is a 5-year level payment program that guarantees the payments for the first 5 years and then it becomes a 1-year ARM for the remaining 25 years. The interest rate upon renewal is determined by an index out of the lender's control and may not be increased by more than 5% in interest. The prime advantage to the borrower is that the lender can offer a fixed rate level mortgage payment at interest rates .25% - .50% below 30 year fixed rate mortgages. This is because the lender is only locking in the interest rate for 5 years, rather than 30 years under the traditional 30-year fixed rate mortgage. The one disadvantage is the borrower may have to pay substantially higher interest rates and payments after the first 5 years, if interest rates go up over the first 5 years.

7 Year Balloon

The 7/23 mortgage is a 7-year level payment ARM that guarantees the payments for the first 7 years and then it becomes a fixed rate mortgage for the remaining 23 years. The interest rate upon renewal is determined by an index out of the lender's control and may not be increased by more than 6% payment at interest rates .25% - .50% below 30-year fixed rate mortgages. This is because the lender is only locking in the interest rates for 7 years, rather than 30 years under the traditional 30-year fixed rate mortgage. The one disadvantage is the borrower may have to pay substantially higher interest rates and payments after the first 7 years, if the interest rates go up over the first 7 years.