Real Estate Principles Tenth Edition Real Estate: An Introduction to the Profession Tenth Edition

Chapter 14 Types of Financing ___________________________

Adjustable Rate Mortgage Interest rate Margin Adjustment period Interest rate cap Payment cap Negative amortization Disclosures What to look for?

Other Financing Graduated Payment Mortgage Equity Sharing “Rich Uncle” Loan Package Mortgage

Other Financing (continued ) Blanket Mortgage Reverse Mortgage Interim Loan Construction Loan Blended-Rate Loan Equity Loan

Affordable Housing Loans Underwriting standards are modified to recognize different forms of credit responsibility. Prepurchase home buyer education. Low down payment.

Comparison of Conventional Mortgage to AIM

Seller Financing The current owner of the property agrees to accept part of the purchase price in the form of a loan (promissory note and mortgage or deed of trust) also becoming the lender in the transaction.

Wraparound Mortgage BuyerSeller $20,000 Debt $60,000 Debt 1 st Lender (Includes wrapped $20,000)

Financing Subordination Contract for Deed Option Rental Creative

Key Terms ARM Asset intergrated mortgage Blanket mortgage Construction loan Equity sharing GPM Negative amortization Option Package mortgage RAM Seller financing Wraparound mortgage