Loan Options
We're not your normal Mortgage Company!
Each client might require a different type of loan. Here at Serralles Mortgage Group, we can help you decide which loan option is the right fit for you.
We have 4 buckets of money. A Paper, B Paper, C Paper & Hard Money.
If the deal makes sense, we have the money to loan. We have over 30 years' experience in lending in rough neighborhoods during rough economic markets. We specialize in loans for older homes.
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Creative Financing Specialist
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Investor Friendly Loan
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Purchases
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Re-Financing
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Conventional
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Reverse Mortgages
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Adjustable-Rate Mortgage
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30 Year Fixed
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15 Year Fixed
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FHA Loan
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VA Loan
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USDA Loan
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Jumbo Loan
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Hard Money
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B/C Money
Serralles Mortgage Group uses 4 buckets of money which are described below.
"A" paper loan
An "A paper loan" is just as it sounds; a loan with the highest credit grade possible. It normally is going to have the best interest rate, lowest cost, and least amount of non-desirable features when compared to B (often referred to as "Alt-A") and C (or "subprime"). Banks give loans with an A paper grade all of this due to a number of factors. The primary being the low risk of an A paper borrower in defaulting on the loan.
These are not absolutes but an A Paper loan usually falls under these guidelines....
1.) The borrower has a 680 mid-FICO score or higher
2.) The borrower has verifiable income and the loan's Debt-to-Income ratio is less than 35%
3.) The loan's Loan-to-Value ratio is less than 80%
4.) An A Paper borrower normally has at least two months mortgage payments in "liquid reserves". This can be in a checking, savings, investment, or even retirement accounts at any financial institution
5.) The borrower's credit report can not have any (non-medical) outstanding collections. Even if their credit score is above 680.
"B" paper aka "Alt-A" loan
"B" Loan or "B" Paper: FICO scores from 620 - 659. Factors include two 30 day late mortgage payments and two to three 30 day late installment loan payments in the last 12 months. No delinquencies over 60 days are allowed. Should be two to four years since a bankruptcy. Also referred to as Sub-Prime.
"C" paper aka "Subprime" loan
"C" Loan or "C" Paper: FICO scores typically from 580 to 619. Factors include three to four 30 day late mortgage payments and four to six 30 day late installment loan payments or two to four 60 day late payments. Should be one to two years since bankruptcy. Also referred to as Sub - Prime
"Hard Money" loan
A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk and shorter duration of the loan.