As the product name suggests, a reverse loan is a mortgage product allows homeowners to receive fixed monthly payments from a lender using an exiting home as collateral. Only borrowers over the age of 62 are eligible to apply for this loan and the property must not have any other debt.  The loan amount is determined by equity in the home, the borrower’s age and estimated life expectancy, market interest rate, and residency status - all within a limit of 40-70% of its market value at the time of the loan.  Unlike a typical mortgage, this loan does not require information regarding the borrower’s asset or income and the loan does not need to be repaid until the borrowers are deceased, or the house is sold.  As a result, a reverse loan offers financial security for the retired elderly by giving them steady monthly income.  There are, however, high closing costs as well as mortgage insurance payments involved with this product.  Potential borrowers may also want to consider the effective reduction in inheritance and security for their children.

The construction of commercial buildings, apartment complexes, and residential home can be financed through banks.  The entire cost of construction can be financed as well as the land acquisition cost if needed. In the case of a construction loan only, the value of the land will be used as collateral. The loan will be given in installments by the bank based on progress, which the bank will monitor. During the construction period, the borrower is only responsible for interest payments. Once a Certificate of Occupancy is obtained, most banks will offer permanent financing and covert the construction loan into a regular mortgage (Permanent Financing). This will simplify the mortgage process as well save on closing costs. However, borrower may get a better rate, albeit with additional costs, by shopping the permanent loans from other financial institutions.

Also known as Foreign Investor Loans, Non-Resident Loans are available to borrowers residing outside of the U.S. as well as foreigners residing in the U.S. legally. There are not many options for non-U.S. residents, but as long as the borrower can satisfy the guidelines of the offering banks, it is possible to obtain a mortgage. In order to reduce the risk due to the borrower earning an income outside of the U.S, lenders will require a minimum 25% to 35% down-payment as well as charge a higher interest rate. As the lender will have the property as collateral, the documentation requirements are fairly standard and are as follows: copy of Visa, copy of U.S., bank statements, and/or foreign bank statements, and proof of business or proof of employment.

Also called a Sub-Prime loan, those with bad credit can obtain a mortgage, albeit at a higher rate and more restrictive terms than borrowers with good credit.

Credit scores less than 620 and down to 500 can still obtain a mortgage without verifying assets or employment of up to $750,000 with a LTV of up to 60 to 80%. However, the interest rate will be 2 to 3% higher.

Borrowers whose properties are in foreclosure can borrow up to 50 to 60% of the value of their home not lose their home to the bank – of course the borrower must accept a higher rate.

This program allows you to purchase a home without making any down payment by obtaining a loan of up to a 100% of the value of the home.  When obtaining a 100% mortgage, the borrower has the option of taking the entire loan as a first mortgage and pay mortgage insurance (PMI), or taking on a first mortgage at 80% of the value of the home with the 20% balance as a second mortgage. The first option requires full verification of income and asset documentation as well as a high credit score, while the second option can be done with or without documentation at a higher interest rate. Because there is a greater risk to the lender with these loans, requirements will be more stringent and higher interest rates will apply.