Mortgage Blog
Everything about B lender or Alternative Lender
June 20, 2024 | Posted by: Sarabjit Dhuna
Since several years home price and Mortgage rate have been increasing and because of that its really difficult to qualify from bank for the mortgage. Bank or traditional Mortgage has strict policy to qualify for mortgages like steady and high-income source and excellent credit score.
Alternative Lender
Alternative lender also known as B type lender offers solutions for clients who can’t be qualified for traditional or bank mortgage. Alternative lender or b lender offers more flexibility in details. In addition, they focus more on home equity.
Alterative lender has important role in Canadian economy as homeowners will get more options and flexibility for getting or keeping home.
Alternative lender’s mortgage rate
Lender takes higher risk and offers more customization compared to traditional or bank lender. So, mortgage rates and fees are higher.
Alternative lender benefits
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Alternative Lender offers you opportunity to buy or keep home if your details are complex like bad credit etc.
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They will offer you to increase credit or income and work towards lower rates.
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They also offer you short term solution like consolidation of debts etc.
When you have to go to Alternative lender for mortgage solution
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When you need bridge loan to buy or sell your house
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When you consolidate your debts in to lower rate HELOC
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When you have inconsistent income like self-employed, business man etc.
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When you want to improve your credit score
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When you want to add 2nd and 3rd mortgage instead of refinance
Alternative lender’s minimum requirements
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Minimum 500 Credit score
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20% down payment or depending on purchase price
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LTV should be 85% or lower
Can you get Mortgage with bad credit
Yes, you can get mortgage with bad credit. It depends on your equity, LTV ratio and location of your property.
If you are looking for mortgage then contact Sarabjit or visit our website centum united mortgage for more information
If you are looking for pre-construction condos and house then visit our website own Ontario home for latest projects.
