Low Credit Wholesale Mortgage Options Expand Bringing Lending Opportunity for Borrowers Outside Agency Guidelines

Alternative wholesale mortgage lenders have been increasingly pursuing borrowers who are largely unable to obtain residential mortgage loans for their new home purchases. Homeownership rates are widely documented as falling, possibly due to non-prime borrowers becoming unable to obtain non-prime mortgage loans. Alternative lending providers hope to turnaround this falling homeownership by increasing provision of safe and effective alternative mortgage lending programs.

Falling homeownership can be partially attributed to foreclosures and short-sales happening even today, resulting from the Great Recession. Though these non-prime mortgage borrowers may be disqualified from applying for mortgage loans with larger banks, alternative lending programs that take into account individual circumstances and creditworthiness can look at beyond a single credit event. Alternative wholesale providers help safely enable homeownership for non-prime borrowers.

Until recently, wholesale mortgage loan providers could not provide any non-prime and sub-prime mortgage loans, even if the borrowers were credit-worthy. Non-prime borrowers were all considered one and the same, and qualifying for mortgage programs became extremely difficult. Non-prime mortgage borrowers seeking alternative lending programs were simply told to wait for their credit to heal. In essence, the subprime wholesale mortgage market stagnated and nearly disappeared. In addition, self-employed borrowers became unintended victims of this unfair halt on alternative lending.

New wholesale lending programs and alternative wholesale lending providers bring opportunity to this non-qualified mortgage market. Top providers issuing wholesale non-prime mortgages bring opportunity to strong mortgage applicants with solid credit and the capability to repay loans. Alternative wholesale lenders can leverage new ways of ascertaining the likelihood of repaying loans through the use of technology and alternative credit measures. Alternative wholesale originators can effectively look past single incidences of negative credit that would otherwise disqualify them from qualifying for a residential mortgage loan despite the otherwise solid credit record. With good residual income, non-prime mortgage borrowers actually offer top wholesale providers very safe and profitable opportunities while presenting a strong mortgage fallout solution.

Meanwhile, by focusing on alternative lending programs, an area blatantly overlooked by big bank mortgage loan providers, top wholesale mortgage providers such as Angel Oak Mortgage Solutions are able to improve the economy as a whole. Non-prime mortgage originators reduce falls in homeownership rates and actually bring about opportunity by connecting non-prime mortgage borrowers and non-agency mortgage providers.

Angel Oak Mortgage Solutions is a non-agency mortgage specialist providing alternative wholesale mortgage opportunities. The Angel Oak Mortgage Solutions Non-Prime Program offers wholesale mortgage loans for non-prime mortgage applicants with low credit scores starting at 500. The 30-year fixed alternative mortgage loans can be up to 90% LTV (loan to value) and 50% DTI (debt to income) with a loan value up to 2 million dollars (or higher). Non-prime loans can be one day out of a foreclosure, one day out of a short sale, one day out of a deed-in-lieu, and one day out of a bankruptcy. For non-prime self-employed mortgage borrowers, an option exists to use bank statements to determine eligibility for a mortgage loan using effective income received. There are no pre-pay penalties on these owner-occupied alternative lending non-prime loans.

Angel Oak Mortgage Solutions offers a number of non-prime wholesale mortgage solutions for low credit borrowers.
Learn more about our non-prime program

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