Alt A program?

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In reference to mortgages/home loans, what is an Alt A program?

  1. Reply
    April 29, 2011 at 9:16 pm

    There are several different types of mortgage programs, i.e. conventional, Alt-A, conforming, non-conforming, etc. Alt-A pertains to the way your income is documented. On a conventional loan, you must fully document your employment history, income, and document your assets. Most underwriters will ask for tax returns, W-2’s, pay stubs, and bank/401K/asset statements to prove your income that you state on your application.

    Alt-A programs have different forms of reduced documentation. There are loans that you can just state how much you make, or how much cash you have in the bank or even loans where nothing whatsoever is verified. These loans require a higher credit score but are great for those folks who are self-employed, have unique commission or tips, etc.

  2. Reply
    Dave C
    April 29, 2011 at 9:59 pm

    There are various levels of loan programs Alt A is one of them.
    The programs are A, Alt A, B, C, these are based soley on credit scores nothing else, therefore rates are better for A & Alt A than B & C. Now all of these have various documentation requirements. Full Doc., Stated Income, Stated Assets, No Income, No Assets, No Doc. etc.. Conventional loans are 1st mortgage loan amounts less than $ 417,000, Non Conventional Loans are larger than $ 417,000

  3. Reply
    Tony M
    April 29, 2011 at 10:00 pm

    Alt A is a mortgage product does doesnt quite fit the box of a conventional loan. Income documentation ranges from full doc (full verifcation) to no income verifcation. High loan amounts, credit scores, income documentation, higher loan to values, & past bankruptcies (2yrs discharged) which cannot qualify for conforming loans usually fit into Alt-A products without the need to provide the borrower with higher costing subprime loans.
    When a borrower do not qualify for a conforming loan, I usually use Alt-A products which are more flexible on their guidelines for approval, while still providing my clients with competitive rates.

  4. Reply
    April 29, 2011 at 10:28 pm

    Alt-A is pretty much between Conforming loans and Subprime loans. If a person doesn’t qualify for conforming, but aren’t such bad borrowers to have to do sub-prime, they usually get an Alt-A loan.

  5. Reply
    jon g
    April 29, 2011 at 11:13 pm


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