Posted by Max-Va on June 08, 2006 at 21:36:15:
I believe you are confusing the two types of lenders.
A true HML does base the loan on the deal. Subprime lenders look at credit scores.
Here is the difference: there are exceptions of course
HML’s are investors with cash that most no longer want the headaches of landlording, or rehabs. They make their money with points and high interest and turn loans short term (6-12 months. HML’s will sometimes look at credit just to get a feel of who they are dealing with unless they know you. As HML’s are indivaduals each one will have a different lending criteria as he sees fit. Your local REI group should have some in attendance.
Sub-prime lenders are like traditional lenders that deal with non-conforming situtations, credit score, high debt to income, NOO, and a variaty of conditions.