Whats an Alt-A loan?

Posted on September 05 By MLP Lending Guide

An Alt-A loan, also called an alternative documentation loan, is a loan that holds borrowers with good credit to different approval standards than traditional loans. Those applying for an Alt-A loan need not provide income verification or documentation of assets. Instead, the approval for an Alt-A loan is based primarily on an individual's credit score. People who are great candidates for Alt-A loans include the recently divorced, entrepreneurs, the self-employed, and those who are paid on commission.

Alt-A loans are typically subject to manual underwriting, which may make the process take as long, if not longer, than securing a traditional loan. However, one of the benefits of manual underwriting is the increased flexibility provided to the borrower. Another point about Alt-A loans is that their interest rates are usually slightly higher than traditionally documented loan. This amount is usually less than one percentage point higher than a conventionally documented loan. That being said, many individuals applying for an Alt-A may not qualify for conventional loans because of their unique situations.

There are a number of subtle variations among different Alt-A loans, making it important for borrowers to get all the facts before making any commitments.

This entry is filed under Fha loans . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response.
National Mortgage Rates National Refinance Rates
Compare Local Rates

11 Responses to "Whats an Alt-A loan?"
  1. direct lender loans 13, Aug, 2011

    Great work! This is the type of information that are supposed to be shared across the web. Shame on Google for not positioning this put up higher! Come on over and seek advice from my website . Thanks =)

  2. beachhotel 14, Jul, 2011

    I combined with my friends were viewing the excellent advice on your website and so now, suddenly I had a dreadful feeling I never expressed respect towards blog owner for these products. All of the men appeared consequently glad to read them and now have in effect actually been making the most of these things. I appreciate you for getting simply considerate and then getting varieties of high-quality areas scores of individuals are really required to know about. My honest regret for not producing appreciation to sooner.

  3. John 17, Mar, 2011

    Can an Alt-A loan be modified? I'm currently trying to get my mortgage company to lower my interest rate and their reply is they can't because it is an Alt-a loan.

  4. homes sale 09, Feb, 2011

    Attractive section of content. I just stumbled upon your blog and in accession capital to assert that I acquire actually enjoyed account your blog posts. Any way I will be subscribing to your feeds and even I achievement you access consistently quickly.

  5. Paul Johnson 28, Oct, 2010

    This category of loans should never have been allowed in the first place.

  6. lornetki sklep 29, Dec, 2009

    What blog script do you use on your site ?

  7. Lawyer ATL 14, Dec, 2009

    ALT A loans are a large part of the current crisis. So are the brokers and lenders who let them coast through without proper investigation of the borrower's finances and ability to pay.

  8. VA Real Estate Talk » How Many REO Properties Does the Government Own? 02, Oct, 2009

    [...] an actual decline in REO properties this year the other areas are holding steady. As expected Alt-A loans were the biggest pool of foreclosures that both companies currently [...]

  9. lawyer 19, Jun, 2009

    I found your blog on google, and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.

  10. unsecured loansp 06, Jun, 2009

    Once again an excellent written post from you. Keep it up!


Leave a Comment
Get Mortgage Loan Quotes Now
  • Free Quotes
  • No Hidden Fees
  • No Obligations
  • Refinance
  • New Home Loan
  • Home Equity
  • Debt Consolidation
  • FHA Loan Orientation Guide
  • FHA Loan Orientation Guide

    Use our FHA Guide to find answers to all questions related to FHA loan.

    Click here to Download

Compare Mortgage Rates