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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?

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

  • Rural property 

  • Recent tax collection issues

What is

Non-Prime Lending?

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.

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