"A" lending Vs. Sub prime Market

A lending:

  • CMHC, GENWOTH, AIG Insured
  • Minimum Beacon Sore of 650 - 680
  • 1 year job stability
  • No derogatory creit information
  • No appraisal
  • Fees up to 2.75%/ higher on longer amortizations
  • GDSR TDSR 32% - 42%
  • Subject to Confirmation of various items
  • Income, support, alimony
  • Down payment - may be saved, borrowed or gifted depending on beacon

B Lending (alternative Financing) Sub Prime Market

  • Rate is Beacon Sore Driven 600 - 8.25% 560 - 9.50%  4%fee
  • TDSR as high as 50%
  • Business for self up to 85% LTV Clients with 9 Sin#'s
  • An appraisal must be ordered at all times
  • appraisal must be reviewed/ approved by lender /results in delays requiring more time for financing condition

Information by Barbara Grumme