A & A Non-Prime Loans
Beyond hard money loans in Arizona, we also offer non-prime; often times referred to as "sub-prime" financing in Arizona. Conventional lenders have very rigid underwriting guidelines: if you don’t have the “correct” income Documentation, credit score, pay history, etc. Sub-prime may offer you a more flexible alternative. If you have less than perfect credit, a high debt to income ratio, or lack of income evidence this could be the right loan product for you.
Is Non-Prime or Sub-prime Good for your owner occupied or residential investment property?
Longer Term – options up to 30 years
Lower Rates than Private “Hard” Money
Longer Underwriting & processing times
Harder to Qualify
Full Appraisals required
In most cases, a subprime loan is ideal for anyone who doesn’t have a stellar credit history, someone who doesn’t have sufficient evidence of funds to close, or simply falls out of the norm of A-Paper guidelines,
Some individuals who might fit into this type of loan include the self-employed who have the financial standing to afford a loan but simply cannot provide enough evidence to the bank. These include contractors and small business owners.
Another example would be an individual with a higher debt to income ratio, which is another factor banks consider. The standard approach is to seek an "A-Paper" loan. However, if they can't check their boxes, you won’t likely get approval for an A-Paper loan.
Additionally, investors with multiple properties could also fall into this category. A Sub-Prime loan simply refers to a less than ideal borrower. Even if you do have excellent credit, you may not qualify for a A-Paper loan simply because you don’t meet other criteria according to a bank’s underwriting requirements.
Borrowers seeking home loans with bad credit, high income to debt ratio, and insufficient income documentation can confidently turn to us for ALT-A Subprime loans in Phoenix for the funding they need.
Other common types of turn downs:
Lack of "correct income documentation"
Debt to income ratio too high
Lack of seasoning requirements
Not enough years self employed
Too few trade lines
Recent tax collection issues
Subprime loans are loans offered to individuals who wouldn’t qualify for conventional loans, whether for low income, poor credit history, or a high loan to value ratio. For most home mortgage loans, borrowers are required to provide evidence of a strong credit history and proof of income, at a minimum. Unfortunately, this puts many would-be-borrowers in a precarious position. That’s where subprime lending can help.
Subprime lending is an out-of-the-box approach to mortgage lending—which is why we’ve made it one of our core loan products. Instead of forcing borrowers to provide extensive proof of income or require an A or ALT A credit score, subprime loans offer mortgage loans with a reduced vetting process. ALT A stands for “Alternative A-paper”.
The result is less hassle for you and easier access to the funds you are seeking.
Would You Like to Find Out if An Alt-A, Subprime, or Non-Prime Loan is Right For You?
At A & A, we are proud to assist our clients in securing the funding they need for their properties. Whether you’re an investor with multiple properties, a self-employed individual looking to purchase a home, or have a poor credit history, we’re happy to think outside the box for you. When conventional loans fail, give us a call to learn more about subprime lending in Arizona.