what is - a paper loan

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what is an (A Paper Loan)

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A loan in which borrower can get very good rate and has lower involved costs because of his good credit and income profile.

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In an "A Paper Loan", the borrower gets rewarded for maintaining his good credit profile. The lower rates they can qualify for are because of the lower risk of defaults. The lender gets assurance from there credit rating and financial stability.

colin · Posted: Tue Feb 27, 2007 1:16 pm Post subject:

Hi Zuckerman,

Welcome to Mortgagefit forum.

Some of the common factors if present will help allow you to get a paper loan are:

You have a good credit score, something in the range of 680 or higher.
The LTV (Loan to Value) ratio for the loan is less than eighty percent.
You have verifiable income.
You have liquid reserves which is equal to 2 months mortgage payments. Such reserves could be checking, investment or savings accounts.
Even if your credit score is 680 or higher, you cannot have any type of outstanding collections on your credit report which are non-medical.

There are often exceptions to the guidelines I have mentioned which are generally followed by lenders but will give you an idea of it.

If you need any other advice, please let me know.

Colin

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