Subprime Home Equity Loan Lenders – Subprime mortgages could rebound in 2023 after disappearing almost entirely immediately after the housing crisis a decade ago. Today, there are many niche subprime mortgage programs to suit your needs. Programs to help the self-employed, people with bad credit, no down payment, bankruptcies, foreclosures and more. If you’re having trouble finding financing, we can help.
We have developed a network of lenders that collectively have all the subprime loan programs you need to finance or refinance your home. We take you through some of the subprime mortgage programs and what our lenders have to offer.
Subprime Home Equity Loan Lenders
Please fill out our loan opportunity form and we will provide you with several mortgage options to review without taking out your loan based on your personal credit criteria.
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Conventional mortgages and some government loans have strict credit requirements to qualify for one of those mortgage programs. When a borrower has extremely poor credit, or a recent credit event
Such as a bankruptcy, foreclosure, or short sale, then they can’t qualify for a conventional mortgage and their alternative will most likely be a subprime mortgage.
Subprime mortgages are for self-employed individuals who may not qualify to use tax benefits due to low net income after deductions. If this applies to you, read our article on self-employment mortgage options.
Below is a list of the top subprime mortgage lenders in no particular order. Among them all, we can help you regardless of your debt and in any state.
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Carrington offers many standard loan programs such as FHA, Conventional, VA, and USDA. Some of their subprime mortgage programs include low credit scores, high loan to income ratios, foreclosures, bankruptcies, short sales and bank statement loans for the self-employed. However, they also offer two exclusive programs called Carrington Advantage and Carrington Advantage plus. These programs offer the following benefits:
At FNBA, they offer many standard loan programs such as FHA, Conventional, VA, and USDA. Some of their subprime programs include bank statement loans for low credit scores, high loan to income ratios, foreclosures, bankruptcies, short sales and self-employed borrowers. Some additional details are as follows:
Angel Oak offers 12-24 month bank statement loans, portfolio loans, bankruptcy, asset depreciation, 1-year tax benefit programs, high DTI and investor cash flow loans. Their bank statement mortgage program is great for self-employed people who can’t document their income with tax returns. Their affiliate programs have some of these features and benefits:
North Star Funding is a North East based company offering a complete range of products. They are currently licensed in about 20 states but are adding more. In addition to all the standard loan products, they also offer some of these niche subprime mortgage programs:
Understanding Mortgage Categories
JMAC Lending offers all traditional loan products and those niche program subprime mortgages you are looking for. They opened for business about a decade ago and have since provided loan funding with some of these creative programs. Some of the salient features of their programs are as follows:
Citadel is a lender that offers a variety of subprime loan options, including bank statement loans up to 90LTV and low credit scores. They will also deal with bankruptcies and foreclosures. They operate in all 50 states. Here are three of their most popular loan programs:
Athas Capital is no longer in business – please complete this short opportunity form and we’ll match you with the best lender.
Athas Capital is a creative subprime lender that offers the following unique programs in addition to all standard programs:
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Quicken offers all traditional products, including investor programs. The extent of their subprime loan offerings is their ability to work with low credit scores. They don’t offer bank statement loans or any of the other creative programs you see here from other lenders. As a result, this is a less than optimal option for you.
JG Wentworth offers all standard loan programs such as FHA, Conventional, VA, and USDA. Some of their programs include low credit scores, high loan to income ratios, foreclosures, bankruptcies and short sales. They have fewer subprime options compared to some of the other lenders we mention here. They have interest only loans, HARP, investor and many more. Based on your submission on our form, we will decide if JG Wentworth is the right lender for you.
Oak Tree is a small lender that operates in several states. Hybrid ARMS offers some unique programs, such as interest-only, graduated payment loans where payments start small and gradually increase over time.
They offer a Platinum Plus program which is a bank statement loan with an LTV of up to 95% but this program requires a credit score of 720 or higher. Oak Tree offers other programs for people with low credit scores, bankruptcy and more. Complete our form online here and we’ll determine if an oak tree makes the most sense for you based on your situation.
Revisiting ‘subprime’ Mortgages
Caliber originates loans in all 50 states. They specialize in subprime loan programs for borrowers who don’t qualify for traditional loan products. Caliber will work with you if you have bankruptcy or foreclosure with a program called the Fresh Start Program. They allow for low credit scores and down payments as low as 15%. You can put up to $1 million in financing for your dream home.
Green Box offers some interesting subprime mortgage programs. They have bank statement loans, programs for people with foreclosures, investor, no job, and even ITIN loans. Below are some examples:
For the most part, if the pros outweigh the cons and you have less than perfect credit, a subprime mortgage may be a good option for you.
If you have bad credit and a recent bankruptcy or foreclosure, there are subprime loan options for you, but with a larger down payment. Subprime lenders will look for a large down payment due to the risk associated with your recent credit history. Lending guidelines for subprime loans are changing so contact us to see what’s available to you.
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If you have bad credit but no bankruptcy, you can get an FHA loan as low as 500 credit scores. If your score is less than 580 the down payment will be only 10%.
If you need help finding a subprime loan with bad credit, call us and we’ll help.
Subprime mortgages are extremely popular with many borrowers today due to credit or income documentation challenges. There are nationally licensed quality subprime lenders today who can help you with your mortgage. Over time, if your credit improves and rates drop, you can always refinance because there are no prepayment penalties on these mortgages.
What credit scores are considered subprime? Generally, any credit score below 620 is considered subprime. In the past if you had a score below 620 you didn’t get a mortgage. Today, there are many options.
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Can I get a subprime loan if I have bankruptcy or foreclosure? Yes, this is why subprime loan programs are created. The down payment requirement varies depending on how long ago your bankruptcy or foreclosure occurred.
Do subprime mortgages have higher interest rates? Subprime mortgages often come with higher interest rates, but not much. Subprime lenders have done a good job of keeping interest rates competitive. In addition to your credit score, your down payment is a key factor in determining your rate. We suggest reading this helpful article on saving for a down payment by Luke Scarr.
The best way to find out what your rate is is to complete our contact form. It will ask some basic questions that will help our lenders figure out what your rate is.
What is a subprime mortgage? Subprime mortgages are loans for people who do not qualify for a conventional loan due to credit or other financial reasons. More people than ever fall into the subprime category.
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Are subprime loans safe? Subprime lenders now have programs designed to protect both lenders and borrowers. They are federally approved lenders and they are completely safe.
Are there subprime mortgages for first-time home buyers? First-time home buyers can get subprime mortgages. These mortgages are available to everyone as long as you have a Social Security number and meet the qualifications.
Are there subprime mortgages for the self-employed? Subprime mortgages are now available and many offer bank statement loans as their subprime option. Bank statement loans have become the primary self-employment mortgage program.
Are subprime loans illegal? No, subprime loans are not illegal at all. They are here to stay and these programs help thousands of business owners every day.
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What is a non-QM mortgage loan? Non-QM means a non-qualified mortgage. If the loan does not conform to conventional standards, it is a
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