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The New Non-Prime: A Safer Non-Agency Wholesale Mortgage Solution

Many myths currently surround non-prime mortgage solutions. Many of these myths linger from the sub-prime mortgage era where indiscriminate lending led to unsustainable mortgage volumes. Contrary to these myths, today’s non-prime mortgages are structured quite differently and in many ways offer a very safe mortgage lending product. Compared to the sub-prime mortgages of the past and even some conventional mortgage loans offered today, non-prime mortgages are designed for and meant for more capable borrowers.

The alternative mortgage lending industry learned many key lessons, and today’s alternative mortgage lenders look to protect both themselves and their borrowers when issuing mortgage loans. Wholesale non-prime mortgage lenders such as Angel Oak Mortgage Solutions for example require borrowers to be able to repay their mortgage loans and look at income to verify that loan volumes and monthly payment amounts will not be an issue. Furthermore, non-prime mortgage originators tend to require higher down payment amounts than conventional mortgage loan brokers.

While some conventional residential mortgage loans require as little as 3.5% down, Angel Oak Mortgage Solutions and other non-prime lenders often require 10-20%, if not more. This “skin in the game” forces non-prime borrowers to carefully consider the impact of any defaults or delinquencies. For many non-prime borrowers, high down payment amounts represent a large portion of a borrower’s life savings. Losing one’s house would mean losing these savings, giving non-prime borrowers a strong incentive to prioritize the repaying of their mortgages.

The purpose of non-prime mortgage programs is to help those who have had recent credit events and may not qualify for mortgage loans because of them to obtain the mortgages they deserve. Angel Oak Mortgage Solutions is a wholesale mortgage lender that evaluates mortgage loans based on their ability of borrowers to repay their mortgage loans. This is a different approach from most mortgage lenders, where credit score is a major driving factor. By using the approach of evaluating borrowers based on their ability to repay their mortgage, Angel Oak Mortgage Solutions brings a lot of opportunity to non-prime borrowers and self-employed borrowers. Non-prime borrowers have difficulty obtaining mortgage loans through traditional means, but that does not mean they are necessarily risky borrowers. They often present less risk to mortgage originators than would initially be perceived. Angel Oak Mortgage Solutions is a wholesale non-prime mortgage lender looking to fill this void in the market.

Angel Oak Mortgage Solutions and other top alternative wholesale mortgage lenders understand the concerns brokers and their clients have and work to help them make the best possible decisions across a range of lending needs. The non-prime mortgages Angel Oak Home Loans offers are a much safer mortgage product than the sub-prime mortgages of the past. Take a look at the infographic below to see some of the many ways non-prime mortgages today differ.

Angel Oak Mortgage Solutions offers a number of non-prime wholesale mortgage solutions for low credit borrowers.