Alternative rates are interest rates offered by alternative lenders that cater to clients who may not meet the strict criteria of traditional banks. These lenders often work with borrowers with non-traditional income sources or unique financial situations.

Alternative Rates:

• Are typically higher than conventional rates to account for added risk.

• Often include flexible debt ratios, allowing for higher debt-to-income.

• Are ideal for borrowers who are self-employed or have fluctuating incomes.

Overall, alternative rates provide accessible mortgage options for those who need more flexibility than conventional lenders offer.

To learn more about alternative rates, read our article: Getting Mortgage Approval After the Big Banks Say No

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