Alternative Loan Programs

The good news is there is a loan program for almost everybody.

The bad news is there is a loan program for almost everybody.

Lenders have terms called B, C, and D paper. These terms refer to loans made to borrowers who do not meet necessary income and credit requirements. Depending on the rate of the loan, a loan in this category might be a good idea for some purchasers. However, many of these loans carry expensive prepayment clauses and the interest rates can range from a percent above market rate to twice market rate. Consult multiple lenders before using this type of loan. A good lender might be able to help a borrower with marginal credit qualify for an FHA or conventional loan, or at the very least tell you how to correct whatever problem might be keeping you from obtaining a loan with a market rate.