Northlawn Financial, Inc.

 

Loans that do not meet the credit requirements of Fannie Mae and Freddie Mac may be approvable as Sub-Prime loans. They are sometimes also referred to as 'B', 'C', or 'D' paper loans (Conforming are considered 'A' paper). Sub-prime loans may be offered to borrowers that have filed bankruptcy, foreclosure or have had other substantial credit delinquencies. Their purpose is to offer temporary financing to these applicants until they can qualify for conforming financing. The interest rates and programs vary, depending on the specific factors of the borrower's financial and credit situation.