What is Non-Prime Lending?

Non-Prime is a term for loan types that do not fit into restraints of government lending standards known as Prime, Agency, or A-Paper Lending and defined as Qualified Mortgages.

Non-Prime loans are also known as temporary or fixer loans for borrowers who are on their way to Prime but need a little help before they qualify.Non-Prime loans characteristically are made to borrowers who have had a past credit event or events in the form of Foreclosure(s), Bankruptcy(ies), Short Sales(s), late payments(s), collections(s), charge-off(s), etcetera. Additionally, a borrower seeking a Non-Prime loan can use alternative documentation to qualify, in form of bank statements, liquid assets, and other forms of income not typically accepted by government lending criteria.Non-Prime loans usually have increased rates of interest and costs for providing access to capital while providing the ability to participate in the economy and housing market. Non-Prime loans should only be look at as a temporary solution to an immediate need.

What are Business Purpose Loans?

Business Purpose Loan Program Business purpose loans are just that. They are not designed for personal, family or household purposes. Let us simplify this for you; If you have a 1-4 unit,residential Investment home, you can use this loan to take cash out for business purpose use, lower your interest rate or purchase a new investment property. A Business Purpose loan, also referred to as a “DSCR (Debt Service CoverageRatio) loan”, qualifies off the cash flow of the subject property. Meaning, if therental income meets or exceeds the mortgage payment, congratulations, you qualify for the best non-owner loan in America,the NONI. Oh, and if your property cash flow falls short, don’t worry, we still have a program for you, the DSCR.Let’s get you started today!