Alernative Mortgage Programs

One thing about mortgage financing and mortgage programs is that what is being offered is always changing. Not only do rates change twice a day but demand on Wall Street will effect the type of loan programs that will be offered. Lenders will always track the performance of the the loans they write to see which segments of the portfolio are performing and which segments are getting in trouble.

This page is dedicated to those alternative loan programs that have been a little out of favor but are seeing some daylight. Keep in mind that mortgage markets fluctuate and when a particular investor sees a niche that they are willing to pursue again, all of a sudden that loan niche comes back.

 This is why I am happy to say that I am seeing some alternative loan programs coming backinto play.

 FHA

In the last fews years the minimum credit score for FHA shot up to 660. That means the middle credit score from the three credit bureaus must be 660 or better. FHA lenders that make accomadations for credit scores will expect to see compensating factors such as good/excellent recent credit history.

Borrowers within the 600-640 range will need to demonstrate at least three trade lines paid on time within the last year. These trade lines can include rent, credit cards, student loans and car loans.

Other problem loans in todays market are:

Manufactured Housing 

No Equity Refinances Go See MortgageProgramsforHomesUnderwater

Hard Equity Loans

No Income Verified Loans

Sub-Prime Loans - Also known as B/C loans. Currently we have A paper loans (Fannie,Freddie and FHA) and D paper loans Hard Equity Loans. I have some FHA lenders that will look at a 560 credit score and above which is similar to a sub-prime loan.

Foreign National Loans- This loan completely disappeared for a while. Now I have two options for this loan that offer 50% financing

Construction/Perm Loans- Construction financing is very unpopular nowadays. Building a home in a state like Florida is almost impossible. Other states still have limited access to these programs

Loans Closing in the name of a corporation - Closing in the name of a corporation makes it more difficult for the bank to foreclose but I still have outlets for these types of loans

Pay Select Option Arms- Known for a high default rate and no longer being offered

Hotel/Motel Loans - Still being done

Gas Station Loans- These loans are always hard but I still have sources writing gas station loans

Condos - Quite often it is the homeowners association that presents the problem

I have created a seperate page for each discussing what is offered with regards to each of these loans. It is very likely that all of these loans will always be there, it is more of a question of what the rate will be and the terms offered.