Loan Programs
The following are the major loan programs offered by Live Better Financial to help individuals, families, and companies purchase homes, investments, or commercial property.
A fixed-rate loan is a type of loan in which the interest rate remains constant, or "fixed," throughout the entire life of the loan (typically for 30 years). This means that the borrower will make equal monthly payments for the duration of the loan, and the interest rate will not change, regardless of fluctuations in the broader financial markets or changes in the lender's cost of funds. Here are some key features and benefits of fixed-rate loans: - PREDICTABLE PAYMENTS - PROTECTION FROM RATE INCREASES - LONG TERM PLANNING - SIMPLICITY
A variable home loan, often referred to as an adjustable-rate mortgage (ARM) or a floating-rate mortgage, is a type of home loan where the interest rate can fluctuate over time. Unlike a fixed-rate mortgage where the interest rate remains constant throughout the loan term, the interest rate on a variable home loan can change periodically based on certain factors and conditions specified in the loan agreement. These factors typically include changes in a benchmark interest rate or an index, such as the Prime Rate or the London Interbank Offered Rate (LIBOR). Variable home loans are generally chosen by borrowers who expect interest rates to remain relatively stable or decrease over time or by those who plan to sell or refinance their homes before the adjustable rate period begins. However, they come with a level of risk and uncertainty, as rising interest rates can lead to higher monthly payments. Borrowers should carefully consider their financial situation, risk tolerance, and future plans before opting for a variable home loan.
A reverse mortgage is a loan available to homeowners 62 years or older that allows you to convert part of the equity in your home into tax-free cash. If there is enough equity, you can also secure a reverse mortgage line of credit and convert it into a guaranteed, lifetime monthly income stream. Although you will need to continue making property tax and homeowners insurance payments, there are never any mortgage payments, and you may elect to stop receiving the payments at any time.
A Debt Consolidation Home Loan, sometimes also known as a Debt Consolidation Mortgage, is a financial product that allows homeowners to use the equity in their home to consolidate and pay off other high-interest debts, such as credit card balances, personal loans, or medical bills. The basic idea behind a debt consolidation home loan is to simplify a borrower's debt management by rolling multiple debts into a single, more manageable home loan.
A VA loan, or a Department of Veterans Affairs loan, is a mortgage loan program designed to help eligible veterans, active-duty service members, and certain members of the National Guard and Reserves purchase, refinance, or improve homes with favorable terms and reduced (or zero) down payment requirements. The VA loan program is administered by the U.S. Department of Veterans Affairs and provides a range of benefits to qualified borrowers. It's important to note that VA loans are available to veterans, active-duty service members, certain members of the National Guard and Reserves, and in some cases, surviving spouses of veterans. The specific eligibility criteria and loan limits can vary depending on factors like the borrower's service history and the location of the property.
An FHA loan, or Federal Housing Administration loan, is a mortgage loan program that is insured by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to make homeownership more accessible and affordable for a broader range of borrowers and typically only require a 3.5% down payment. They are primarily used by those who may have lower credit scores or limited down payment savings. The FHA does not provide the loans directly; instead, it insures them, which reduces the risk for lenders, making it easier for borrowers to qualify for these loans.
A commercial loan is a financial product designed for businesses and commercial purposes, as opposed to personal or residential use. Examples are multi-family apartment buildings, medical/dental buildings, warehouses or even single-use building such as fast-food buildings. Rates on these loans are typically higher than residential loans, and offer rates that are fixed for 3-10 years with a 25 or 30 year amortization. Unlike residential loans, the primary means of qualifying for a commercial loan depends on the cash flow of the property.
Private money loans, often referred to as hard money loans or simply hard money, are a type of short-term, asset-based financing typically provided by private investors or private lending companies. These loans are commonly used in real estate transactions, particularly for real estate investors and developers. Private hard money loans are commonly used in situations where traditional financing is not readily available, such as for distressed properties, fix-and-flip projects, or investment opportunities with a short time frame. While they can provide quick access to capital, borrowers should be aware of the higher costs and risks associated with hard money loans. Borrowers should carefully evaluate their financial situation and investment project before choosing this type of financing.
A bridge loan, also known as a swing loan or interim financing, is a short-term loan used to provide temporary financing and bridge a gap between two different financial events. These loans are typically used in real estate transactions and can serve various purposes. Bridge loans can be a valuable tool in situations where there is a temporary need for funds to facilitate a transaction or project. However, they come with higher costs due to the higher interest rates and fees, so borrowers should carefully assess the financial implications and risks before obtaining a bridge loan. Additionally, borrowers should work with reputable lenders and ensure that they have a solid plan for repaying the loan according to the agreed-upon terms.