TYPES
OF LOANS
Subprime Loans
Loans that do not meet the borrower credit requirements of
Fannie Mae and Freddie Mac are called Subprime or "B" and
"C" paper loans vs. "A" paper conforming loans. B and C loans
are offered to borrowers that may have recently filed for
bankruptcy, foreclosure, or have had late payments on their
credit reports. Their purpose is to offer temporary financing
to these applicants until they can qualify for conforming
"A" financing. The interest rates and programs vary, based
upon many factors of the borrower's financial situation and
credit history.
|
