The SWAN Loan® or Sleep Well At Night Loan is a new "family" of loans that have been developed in conjunction with some of the nation's largest wholesale mortgage investors.  The objective of these loans is to offer a low affordable payment with secure fixed rates for 5, 7, 10, 30, or even 40 years.  There are five "core" products that make-up the SWAN Loans®:

1)   30 year fixed 2-step.  This loan is for the borrower searching for the security of a long term fixed rate because they want to keep the property for 10 years or longer and they want to set down some roots or already have settled in.  For most borrowers a 30 year fixed mortgage is attractive because of the security it offers, but the payments may be more than people can afford or are comfortable with.  The 2-step makes the 30 year fixed mortgage affordable once again.  For the first 10 years borrowers can secure a fixed initial amortized payment rate under 5.00%. Then in years 11-30 the loan will amortize generally at 6.50%.  At no time is there negative amortization and there are NO indexes or margins to be concerned with.  All aspects of the loan are fixed for the life of the loan.  The 2-step is available on conforming or Jumbo loans, purchase or refinance, and even loans with no income verification are available.

2)   5/1 and 7/1 Safe-Flex.  This loan is for borrowers who only need a mortgage for the short term — generally 3-10 years.  The Safe-Flex has both a fixed rate and fixed payments for 5-7 years.  This loan will normally have a fixed interest only payment rate between 4.50% - 4.99% for 5-7 years. This loan may have some deferred interest but the beauty of this program is the deferred interest is strictly limited.  In the past, traditional "neg-am" loans had absurdly low "teaser rates" of 1% with an underlying interest rate that adjusted monthly.  The resulting "negative amortization" was staggering, for some borrowers it amounted to financial suicide.  The Safe-Flex has the flexible payment to defer some interest to a future date (generally no more than about 1.5% of the loan balance annually) but with a safe fixed interest rate.  No more worries on what the rate, payments, and balance will be on your loan in the future months, since the rate and the payments are guaranteed.  The low payments are very attractive for most borrowers, and the fixed rate offers the security most borrowers find reassuring — it is both SAFE and FLEXIBLE.

3)   10 yr. GPM.  This is our Graduated Payment Mortgage.  This loan starts out with an initial payment rate of 3.75%. The payment rate then increases approx .375% per year for 10 years (9 adjustments) until it reaches a maximum rate of 7.25% but not until year 10.  Also after 10 years your balance is not higher than where you started.  This loan is great for borrowers who need lower affordable payments now, but in the future can afford the higher payments because they will have more income or present debt will be paid off. The maximum level cannot be reached until the 10th year.  The payments move up predictably, affordably, and are guaranteed, no matter how fast interest rates go up. All aspects of this loan are set and guaranteed for 30 years. This loan is very attractive to borrowers who are adverse to adjustable rate mortgages (ARM's) that can increase faster than they are comfortable with and/or have lifetime caps at 11% or more.  This loan is very flexible in terms of income requirements (no verification of income needed, no liquid assets needed) and liberal credit scores (even under 600).

4)   30 / 40  year fixed S.M.A.R.T. Loan.  Subsidized Mortgage And Refinance Transaction.  This loan is our answer to the 1977 Congressional Act (12 U.S.C. 2901) legislating below market mortgage rates in selected communities. There may be loan amount limits or income maximums or ethnic minority demographic requirements and property ownership requirements (example, you can not own any other real estate on your tax returns).  Because of the ethnic make-up of California, many communities qualify!!  Imagine 30 year and even 40 year fixed loans under 5.99%!

5)   Fresh Start Loan.  This loan is simply for people who find themselves in a difficult or unusual situation and may think their situation is hopeless.  If so the Fresh Start Mortgage is for you.  These loans are underwritten individually with the personal touch.  We look at your personal situation first, not just your credit and income.  We are confident we can help.

These five loans make up the core of the SWAN Loan® family of mortgages.  These innovative and exciting loans offer a new paradigm in mortgage lending — more secure fixed rates, with flexible and affordable payments. There is no single, perfect loan type for everyone — if there were, every borrower would have it, and every lender would offer it.  The SWAN Loan® may not be for you; in fact it is not for everyone.  Whether you find one appealing, or you prefer a non-SWAN Loan, we encourage you to contact us for a complete menu of loan products to find one that is the perfect fit for YOUR needs.