B/C Loans

B/C Loans


Loans that do not meet the borrower credit requirements of Fannie Mae and Freddie Mac are called ‘B’, ‘C’ and ‘D’ paper loans vs. ‘A’ paper conforming loans. B/C loans are offered to borrowers that may have recently filed for bankruptcy, foreclosure, or have had late payments on their credit reports. Their purpose is to offer temporary financing to these applicants until they can qualify for conforming “A” financing. The interest rates and programs vary based upon many factors of the borrower’s financial situation and credit history.