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An Alt-A Private Money Program – for Borrowers Who Miss the Mark

Jan 11, 2022  , , , , , , ,

Ken Ari Walker Sun Pacific Mortgage Family Team

Here at Sun Pacific Mortgage, we have instituted an alternative program for Borrowers who fall short of qualifying for a conventional loan – or what some refer to as an “A-Paper loan”.

We found that this niche was not being serviced by a regular private money loan program so we created our own. While a Borrower’s qualifications for a conventional loan are more stringent and not always met, this new program was a viable and appealing option for a Private Money Lender.

The rates on this type of loan range between 6%-8.5%. While still higher than a conventional loan, they are significantly lower than most Private money loans.

To qualify for an Alt-A loan, the property needs to be in good condition, credit score above 650 and the loan would have a 60% loan to value or less.

If this loan is being taken out for a consumer purpose rather than a business purpose, the term of the loan may be from 11 months minimally to 15 years maximumly. If the loan is a business loan, the term of the loan will be from 1-5 years. For a consumer type loan there is no prepayment penalty, but for a business purpose loan there is a minimal prepayment penalty.

This has been an extremely popular program since we created it two years ago. There appears to be Borrowers who would rather not wait to qualify for a conventional loan, or who need a fast close and are willing to get into a property with a higher rate knowing they can refinance in a year.

If this program looks like a solution to your borrowing needs, give us a call at 707-523-2099 to see what we can do for you.




The content of this blog contains general advice only and does not consider individual financial circumstances, desired loan amounts or existing real estate or lending transactions. This information is intended for licensed Real Estate Agents and licensed Lenders/Mortgage Brokers and is posted on our company website and specific blog sites with the express purpose of reaching such licensed individuals.

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