Alt-A Loans
Are you self-employed and wondering if you qualify for a home loan? Well no need to worry or wonder, Babak has you covered.
B Squared Funding Home Loans understands that everyone has different financial needs. That’s why we offer Alt-A Mortgage loans to help people get the home they want, even if they don’t meet the requirements of a conventional loan. Babak is dedicated to finding you the best mortgage and getting your dream home off on the right foot. Babak is here to help!
You can trust Babak with your financing because he has over 20 years of experience in helping his clients find their perfect homes. Plus, the rates he finds are some of the lowest around – so you know you’re getting an amazing deal when working with him. And if there ever comes a time where you need assistance, just give him a call and he will be there for you every step of the way!
Advantages of a Alt-A Loan
Small businesses and self-employed people have exploded in recent years, so documenting consistent income sources can be a challenge. Alternative-A loans work well for self-employed people because lenders can approve them fast and have less restrictions.
Borrowers who do not or cannot show a lot of income may opt for Alt-A. Self-employed borrowers often have this issue. For example, if you work on a cash basis, you can use your bank accounts to offset your lack of income (how it’s calculated varies). Most of the time, you don’t need to provide tax returns or pay stubs, and retirement accounts (with restrictions) can even be used.
The Alt-A mortgage loan is not bad, it is a way for alternative lenders to compete for funding loans for borrowers not eligible for conventional or government-backed loans.
Advantages of an Alt-A Loan
Get more options on what fits your needs
Higher chances of being approved for a loan
No need to worry about having bad credit
Have access to financial assistance if there are any troubles with monthly payments or mortgage rates
How to get approved for an Alt-A Loan
- The FICO credit score range is 620-840
- A credit score at least 620
- Have stable income
- Good debt-to-income ratios
- Have sufficient cash reserves
How an Alt-A Loan Works
Generally, Alt-A loans are given to people with challenged credit who don’t meet the requirements for Fannie Mae and Freddie Mac loans. Typically small business owners and self-employed borrowers are good candidates for Alt-A loans.
Alt-A loans have higher interest rates than traditional mortgages, but are more likely to be approved if you don’t qualify for traditional loans.
Are Self Employed/Alt A Loans Right for You?
Here are answers to some of the most frequently asked home buyer questions. As a next step, Babak can assist you in selecting the most affordable home loan.
If you recently completed a budget, Babak would like to see it. There are many resources available online and in print that can help create a realistic household spending plan. Please don’t be shy about sharing details such as the monthly rent or mortgage payment on your existing home, any existing credit card balances, current insurance policies, and other debts.
With this information, Babak can help you assess your buying power and guide you toward the home loan package that is right for you.
In order to qualify for an Alt-A loan, the borrower needs to have a minimum credit score of 620 and a minimum of six months of on-time payments.
The borrower also needs to have a somewhat stable income and good debt-to-income ratios, as well as sufficient cash reserves. If you don’t meet these requirements, Babak will work with you to find the perfect solution for you.
An Alt-A mortgage loan is a type of home loan that requires lower documentation and credit score than a conventional mortgage.
For example, in lieu of income or asset documentation, an Alt-A loan may require the borrower to show evidence that he or she has an adequate credit score, has steady employment for at least two years, and an acceptable debt-to-income ratio.
The term “Alt-A” comes from the lending industry categorization of loans on a risk scale. “Alt-A” loans are considered to be less risky than “subprime” loans with higher interest rates than “prime” loans.
Alt-A loans are a form of mortgages that are considered to be an alternative to a traditional mortgage. It is also known as an “alternative A-paper.” The US mortgage market has been dominated by either Fannie Mae or Freddie Mac, but this market has opened up to other lenders in the past few years.
Alt-A loans are usually made to borrowers who have credit scores that are just below what would qualify them for an FHA loan, but still making enough money to make the payments on the loan.