This document discusses various types of financing for real estate, including adjustable rate mortgages, affordable housing loans, seller financing, and other options like construction loans, blanket mortgages, and wraparound mortgages. It provides information on key terms for adjustable rate mortgages and highlights factors like interest rates, adjustment periods, and payment caps. The document also briefly outlines several alternative financing methods beyond traditional loans.

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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