- Alt A Loans:
- Alt A Loans do not meet the credit requirements of Fannie Mae and Freddie Mac. They are known as B, C and D paper loans. Loan applicants typically have a bad credit history, have filed for bankruptcy, or have had a property in foreclosure. Alt A Loans are often issued as temporary loans until the applicant can restore credit and qualify for conforming “A” loans. Interest rates on Alt A Loans are generally higher than for conforming “A” loans.