Borrowers who seek out these products are more likely to have atypical income streams, which can be harder to establish in a traditional mortgage application. Alternative investments or self-employment arrangements that allow the borrower to decrease income reporting for tax purposes are examples. Lenders looking at these loans are more likely to look at the applicant's credit score, ability to make a larger-than-average down payment, and atypical paperwork such as bank statements. The interest rates on these loans are typically higher than those on standard mortgages.
