Types of Real Estate Loans

Alt-A "Almost perfect" loans

Alt-A or Alternative "A" paper products are for people who have good credit, or almost good credit, that maybe have a situation that just keeps them out of conforming conventional loans. Maybe the income documentation is a little out of the ordinary, or the employment history is just a bit outside the guidelines, there may be an Alt-A program that can help.  While the rates may be a little higher than conforming loans, the guidelines may be different enough to get the loan, often at a reasonable rate.  Just a few years ago, the same person might have had to pay a steep premium for their individuality, but with so many investors now competing in this arena there is a good chance that we can get the job done.

Also, the credit interpretation guidelines are different.  A missed payment on a mortgage will generate many 30 day lates, which would pretty much automatically cause a conforming loan to be declined.  An Alt- A or sub-prime investor might look at that missed payment as one late, allowing them to be graded much higher.  They may also be able to ignore credit card or auto payments lates, if the mortgage has been on time for the last few years.

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