Alt-A borrowers are people who “just miss the traditional credit requirements of their bank,” says Pino Decina, EVP of Residential Mortgage Lending at Home Trust.
One example he provides is a self-employed client who is waiting to receive his/her current year’s Notice of Assessment, or finalizing Business Financials. That person may not meet the two- or three-year documentation requirements of his or her bank.
“This product is also a perfect solution for salaried individuals, who may have additional income derived from sources such as commissions, bonuses, overtime, etc., and again may not currently meet the income documentation requirements of their bank.”
“In all cases, we find these borrowers to be of a high credit quality,” Decina says. “They simply require a short term mortgage solution until they fully meet their bank’s credit requirements…”
The Classic Ace 6-Month Convertible is flexible in that it lets customers convert at any time into a 1- to 5-year term. There’s no penalty to convert, but there is a fee (up to $500 according to Home’s Fee Schedule). Customers can even convert into Home Trust’s prime Accelerator line of mortgages, if they qualify.
Here are more key details:
- Term: Six months
- Approximate Rate: 3.49% (+0.25% for high-rise condos)
- Rate Hold: 90 days
- Max. Loan-to-Value: 80%
- Max. Loan: $750,000
- Lender Fee: 50 bps (lender fees are common for non-prime financing)
- Minimum Credit Score: 620 (exceptions may be available)
- Penalty: Open on payment of 3 months interest
- Property: Owner-occupied or owner-occupied and rental
- Available Through: Brokers
Other conditions apply. Chat with a mortgage professional if you require details.
Rob McLister, CMT