Randy Wagner, Hawaii Licensed Loan Officer

Small Business Loans
SBA or what most people call "small business loans" are loans that are from a lender but the government guaranty’s a portion of the loan. There is a variety of SBA loans available for many different types of business situations. To discuss your loan scenario call or contact us today. For more information try the www.sba.gov website. There are also lenders that will do Lease Purchase for equipment or give loans on future credit sales.

Commercial Loans
The lenders that do commercial loans will make loans on “sticks and stones” meaning if you are purchasing a building, or property to build a commercial building. There are also lenders that will do Lease Purchase for equipment or give loans on future credit sales.

Hard Money Loans - Equity rich but Credit poor?
This type of loan is for those people that make a good income but for various reasons have low credit scores. They are also a good solution for special opportunity purchases, as investors who need to create cash flow for a short term issue.

Fixed Rate Loans
Both interest rate and payment remain the same over the term of the loan. Loans can be amortized over the following terms: 10, 15, 20, 25, and 30 years. The advantage of a fixed rate program is that it allows you to get a fixed rate, over a specified period, without being concerned about market fluctuations. This type of financing is recommended for borrowers who intend to stay in their house for a long period of time.

Interest Only
This type of loan is recommended for people who plan to move out of their house within 3-7 yrs. With this loan you make an interest only payment every month. If you make a payment to the principle it will change your interest payment for the following month. This is a very advantageous loan for the disciplined borrower.

Adjustable Rate Mortgage (ARM)
Both interest rate and payment remain the same for a fixed time period, usually 1, 3, 5, 7, or 10 years. At the end of that period the rate can rise at fixed intervals. The amount the rate can rise, or margin, is predetermined (normally 1/2% to 2% per rise). The intervals are normally 1, 3, 6, or 12 months. Typically there is a cap on the margin, which determines the highest the rate could ever go. The advantage of an ARM is that it allows you to get a lower rate, for a known period of time, while you watch the market to see if and when fixed rates get better. Some feel that although they may have gotten a better rate with a balloon, an ARM will adjust at the end of the "fixed period", whereas a "Balloon" has to be refinanced or paid in full. ARMs are recommended for those borrowers who intend to stay in their house for a fixed period and have taken the time to factor in the margin, to determine that they would not be better off with a Fixed Balloon or even a Fixed Rate.

FHA/VA
The two types of government loans are: Federal Housing Administration (FHA) loans, and Veterans Administration (VA) loans. The advantages of financing using FHA loans are that they are easier to qualify for and allow a borrower to finance more of the loan amount than non-government loans. Whereas with a Conforming loan a borrower may only be able to finance 80% of the loan amount, a FHA loan allows a borrower to finance 97% of the loan amount. FHA loans are recommended for those borrowers who are first-time buyers, have little money to put down, have a short credit history, or are having trouble qualifying for a Conforming loan. The two main advantages of financing using VA loans are that the VA allows borrowers to finance 100% of the loan amount, and that, the VA only requires proof of veteran status to qualify for the loan. The only drawback to government loans is that mortgage insurance is required at all loan to values (LTV), unlike Conventional and Jumbo loans where payment of mortgage insurance is determined by the amount of equity a borrower has in his home.

Investment Properties (Non-Owner Occupied)
These types of homes are normally acquired specifically for investment purposes or are owned as a result of moving to a new house without selling or being able to sell the old house. Financing for investment properties can be achieved using any of the above described programs. Typically, the rates for financing on investment properties are higher than owner occupied homes and the LTVs allowed are lower, due to the fact that default rates tend to be higher on these types of loans.

No Document or Low Document Loans
In certain situations it is either difficult or impossible for potential borrowers to show a lender their income on paper. Also in some instances it is hard to verify assets. We have loans that do not require documentation to verify income or assets. These loans offered tend to be slightly higher. This type of financing is recommended for self-employed borrowers or borrowers who have difficulty showing their income on paper, for one reason or another.

Refinance
Occasionally, when refinancing a first trust, a borrower wants to "cash out" some of the equity that has been built into the loan. Under specific conditions, established by the lender, a borrower can actually receive a check for an amount of money that meets those conditions. A cash-out refinance is not normally limited to any type of loan program, it can be done with most of the described programs. Another refinance loan is rate and term. This is were the owner will refinance the property to get a lower interest rate which will reduce his overall monthly payment.