Menus for Articles
Specialty Loan Types
Subprime Mortgage Loans
Subprime mortgage loans are back and AmeriFund offers the full range of available subprime loan programs.
Borrowers seeking financing on transactions that satisfy agency underwriting requirements receive the best possible financing terms. These types of loans have minimum credit score requirements. An FHA loan requires a median credit score of at least 560. Conforming loans require a median credit score of at least 620. These types of loans also have maximum debt to income ratio requirements and maximum loan amount limitations. Because they have lower interest rates and closing costs they are sometimes referred to as “prime” mortgage loans.
Loan programs that enable borrowers who cannot meet these agency underwriting requirements are often referred to as a subprime mortgage loans.
Typical examples of subprime mortgage loans:
- Credit scores below 500 (requires 40% down and has other strict program limitations)
- No tax returns or W-2s required for self-employed borrowers (income based on average bank account deposits)
- No waiting period after a bankruptcy or foreclosure
AmeriFund offers financing on these types of transactions at a higher rate and with higher costs than what a borrower could receive on a conforming “prime” loan.