Non-Traditional Loans

Alt-A Loans – Any loan that doesn’t meet the Qualified Mortgage requirements imposed in 2014 are Alt-A. Alt-A loans are used with non-traditional guidelines for various reasons. These reasons can be anywhere from low credit to non-traditional income. Because of the realized guidelines, these lenders are a little more restrictive on the limits they lend against the house. Every scenario is a bit different. Please call our experts for answers.

Ability to use Bank statement as income
Stated Income Programs
Rental income programs
Can use with mortgage lates or subpar credit
No mortgage insurance
Fixed and ARM rates
owner occupied, 2nd homes and Non-owner occupied
Flexible credit guidelines
Lower loan to values

Alt-A loans are making a comeback. Banks are realizing that there is a need outside the traditional lending guideline. Yes there are self-employed borrowers that have low disclosed income. Yes there are borrowers who maybe have had a bit of bad luck or an extenuating circumstance in which they got a ding or two on the credit. But they still have every ability to repay a loan. These are the loans that the large commercial banks and mortgage banks shy away from. These are the types of loan that Sierra Home Mortgage can do. Among many other.

Hard Money – These loans are usually short term adjustable. The goal is to pay them back as fast as possible. Hard money isn’t as prevalent as it was prior to the great recession, however there is still a need for hard money and a supply of it. In this situation, you might need to have the loan funded extremely fast as you originate a more permanent solution. Or you have several recent mortgage lates but need an option for a mortgage. Because of the un-orthodox lending scenarios, these loans usually have low loan to values. The one absolute about hard money; you need to have an exit plan. How are you going to pay off the loan with in a couple years? They want to know that you have a plan to repay the money. Every Hard Money scenario is different. Contact our experts about your options.

Fast Fundings
Low Loan to values
Usually no prepayment penalties