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Alt-A category? none 04-21-2005
Posted by none on April 21, 2005, 9:27 pm
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I have heard the term "A" borrower and "Sub-prime." What is an "Alt-A?"

Can someone give an example of what type of scores/situation this type
of person would be in?

Thanks


Posted by Jeff Strickland on April 21, 2005, 2:56 pm
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Alt-A is the category that takes Investors, Stated Income, No Income
Verification, etc.

Alt A is available to a wide range of borrowers, the minimum FICO score will
be around 660. There are a wide range of Adjustments for all sorts of
things. If the FICO is high and the L:TV is low, then there can be
substantial rebates on the loan, conversely if the FICO is low and the LTV
is high, the same loan can have substatnial costs.

Can you give a more specific question?

Do you think you can use an Alt A loan?

Call me,
Jeff Strickland
City Mortgage Service
858 217 2449




> I have heard the term "A" borrower and "Sub-prime." What is an "Alt-A?"
>
> Can someone give an example of what type of scores/situation this type
> of person would be in?
>
> Thanks




Posted by Mark Ramirez on April 22, 2005, 10:38 am
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Alt-A also pertains to loan scenarios that are out of the common realm
of standard "A" paper loans. 80/20 loans, High LTV loans with
occupancy other than owner occupied, like second home and investment
properties could also fit nicely into an Alt-A type product. In some
instances, a loan that fits an "A" paper program, may have a better
rate if you put it into an Alt-A product.

Hope this helps.

Mark Ramirez
NationsFirst Lending



Posted by Jeff Strickland on April 22, 2005, 11:11 am
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You are absolutely correct, Mark. Whether or not a borrower takes an A Paper
or an Alt-A depends on many factors. We can better answer the question if
the question was more defined.



> Alt-A also pertains to loan scenarios that are out of the common realm
> of standard "A" paper loans. 80/20 loans, High LTV loans with
> occupancy other than owner occupied, like second home and investment
> properties could also fit nicely into an Alt-A type product. In some
> instances, a loan that fits an "A" paper program, may have a better
> rate if you put it into an Alt-A product.
>
> Hope this helps.
>
> Mark Ramirez
> NationsFirst Lending
>




Posted by none on April 24, 2005, 5:17 pm
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Jeff Strickland wrote:
> Alt-A is the category that takes Investors, Stated Income, No Income
> Verification, etc.
>
> Alt A is available to a wide range of borrowers, the minimum FICO score will
> be around 660. There are a wide range of Adjustments for all sorts of
> things. If the FICO is high and the L:TV is low, then there can be
> substantial rebates on the loan, conversely if the FICO is low and the LTV
> is high, the same loan can have substatnial costs.
>
> Can you give a more specific question?
>
> Do you think you can use an Alt A loan?
>
> Call me,
> Jeff Strickland
> City Mortgage Service
> 858 217 2449
>

I had never heard that term before, and I wondered what it covered. I
am mortgage/home shopping right now, and have some concerns with my
situation. I had a Ch. 7 BK discharged in October 2003, however, I have
established a number of positive accounts since then, and my FICO socres
are - as of last the last broker's pull - 686, 698, & 702. I know that
my scores are good, but the CH. 7 being less than 2 years old hurts me.
I am in Florida, and it seems as though prices just keep going up.
One broker has me approved for a 2/28 first & second mortgage(zero down
for me) up to $170K. He claims my payments would be in the $1200-1300
range. I earn roughly $40k/year and my monthly debt(auto loan and CC)
is $275.

Do those numbers sound right to you? Can you find me a better deal?
How does one in my position qualify to purchase a home that hasn't been
built yet. For example, there is a condo project going up that won't
start construction until June 2005, and completion is expected in June
2006. Talking to the sales center, they are taking 7% down and going
"straight to contract." I know what 7% down means, but does the second
part mean that you are closing immediately? How would/could I qualify
for a new construction loan in my situation. With 7% down, I'd try to
finance roughly $165K to $170K.

I know this turned out to be long. Thanks for any input.



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