1. Chapter 14: Types of Financing
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2. ADJUSTABLE RATE MORTGAGE
What to look for?
 Interest rate
 Margin
 Adjustment period
 Interest rate cap
 Payment cap
 Negative amor tization
 Disclosures
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3. ADJUSTABLE RATE MORTGAGE
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4. OTHER FINANCING
Graduated Payment
Mortgage
Equity Sharing
“Rich Uncle” Loan
Package Mortgage
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5. OTHER FINANCING (CONTINUED)
Blanket Mortgage
Reverse Mortgage
Interim Loan
Construction Loan
Blended-Rate Loan
Equity Loan
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6. AFFORDABLE HOUSING LOANS
Underwriting standards are
modified to recognize different
forms of credit responsibility.
Pre-purchase home buyer
education.
Low down payment.
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7. MORE FINANCING
97% Conventional Loan
The Nehemiah Program
Seller Financing
Wraparound Mortgage
Subordination
Contract for Deed
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8. SELLER FINANCING
 The current owner of the proper ty agrees to accept par t of
the purchase price in the form of a loan (promissory note
and mor tgage or deed of trust) also becoming the lender in
the transaction.
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9. Wraparound Mortgage
Seller Buyer
$20,000
Debt
$60,000
Debt
1st Lender
(Includes wrapped
$20,000)
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10. FINANCING
Option
Rental
Land Leases
Creative
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11.  ARM
Key Terms
 Blanket mortgage
 Construction loan
 Equity sharing
 GPM
 Negative amortization
 Option
 Package mortgage
 RAM
 Seller financing
 Wraparound mortgage
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