An ARM is an adjustable rate mortgage. The rate is determined by using a standard index such as the prime rate and adding a fixed amount (often called the margin) to this to determine the rate (e.g. prime + 2.00%). The rate fluctuates based upon changes in the index. The frequency of rate changes varies from program to program.
This loan program type permitted income to be stated on application for qualifying, but was not verified. This type of mortgage program is prohibited in the Commonwealth of Pennsylvania.
NO, there are many programs available that allow you to treat this type of transaction as a refinance thereby allowing you to use the equity in the property (based upon a current appraisal) as the down payment AND the closing costs can be rolled into the mortgage.
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Yes, there are many programs available for clients with these credit issues.
Yes, there are programs available that require no down payment. Many of these programs also allow for seller assistance towards closing costs in addition to not requiring a down payment.