Alternative Lending Sources

There are numerous alternative lenders. If you are turned down by a bank, chances are there are alternative lenders for you. Keep in mind, the interest rate sometimes will be slightly higher. but it also helps you purchase the house you want now.

Here are a few scenarios and the alternatives matching products:

1. Low credit score

Banks usually become hesitant if your credit is lower than 620 or 600. They will likely ask you to pay a bigger down payment, or simply turn you down. The alternative way is to contact your mortgage specialist for special programs only available through broker channel.

The solution is to borrow for short-term (6 months to 2 year max). Meanwhile, seek help to repair your credit score (see our section for credit score). Consult with your mortgage professional for further advice, or contact us anytime for specific questions and strategies.

2. No income proof

No income scenario may apply to both self-employed or for salaried individuals. The idea is to get around the income proof requirement required by the banks. The solution we recommend is to apply for equity lending. There are only a few lenders out there that do equity lending. Your credit score play a critical role on how much you can borrow. Equity lending does provide good rates, usually at prime rate, and sometimes even matches what bank offers. Note this though, equity lending is not available for purchase/refinance on apartments and condos.

3. Self-Employed with Gifted Down Payments

If you are self-employed and you are unable to proof that the down payment is from your own source (or not able to proof 90 days in your bank account), chances are you will be turned down, especially if you are borrowing at high ratio. The solution to you is to go for an alternative programs offered by either GE, Cove, or Excaliper. These lenders are only available through broker channel so let us know if this situation applies to you.