Sub-Prime loans are still available and in most cases the
rates are not that much higher than standard prime loans.
Sub-Prime lending allows borrowers to obtain mortgage loans
when they would not be able to qualify for a Prime Loan.
Reasons might include employment history and income, past
credit issues and other factors.
Sub-Prime mortgage loans are
available for refinance and purchase
Available in both fixed and adjustable rates
Up to 90% financing
Full documentation only, no stated income programs
No cash reserves required
Up to 55% debt to income ratio allowed
No mortgage insurance required
Loan amounts from $50,000 to
$1,300,000
Seller may pay closing costs up
to 6% of price
Credit Requirements:
Minimum of 500 credit score for
owner occupied properties (based on middle score)
Liberal consumer credit
guidelines
Co-borrowers do not have to
have a credit score
Chapter 7 bankruptcies must be
dismissed or closed
Less than 80% loans have no
bankruptcy seasoning requirement
Bankruptcy buyouts allowed but
no cash back to borrower
