Sub Prime / Alternative Mortgages are names the average person had not heard of until 2004. With today’s credit issues facing many people, Sub Prime mortgages could allow them to enter the housing market. Generally the product is designed for a 1-3 year time period to enable the client to repair their credit and enter back into the “A” or regular mortgage stream and rates.
Each case is individual and is assessed as such, but here are a few of the guidelines that one may find:
- Borrowers re-establishing credit (ie. After bankruptcy)
- Self Employed showing minimal income purchasing rental or owner occupied property
- Client has been declined by CMHC, Genworth or AIG for a purchase or refinance
- Investor: CMHC, Genworth or AIG has declined your rental property, refinance or purchase