Non-Prime or Alternate Loans (Alt A) loans are the middle ground between Conventional Loans and Private Money Loans. They are either based on stated income or bank deposits and are typically used for self-employed borrowers not showing sufficient net income on their taxes to qualify for Conventional Loans.
Typical Loan Features – Alternate Loans
- Lower Credit Requirements from $500 – 700+
- For Owner Occupied or Non Owner Occupied property
- Appraisals are required.
- Interest rates are higher than Conventional Loans but lower than Private Money Loans.
- Loan to Values (LTVs) are lower than conventional at 90% – 65% depending on the credit score
- Alt A Loans can fund in 4-6 weeks, depending on the appraisal time.
- Debt ratios up to 50% are allowed.
Typical Loan Requirements – Alternate Loans
- Borrower acceptance of higher interest rates
- Borrower must either provide 12 or 24 months of bank statements showing deposit income or state their income