 | The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject.(December 2010) |
In the mortgage industry of the United States, A-paper is a term to describe a mortgage loan (or a Prime loan) [1] for which the asset and borrower meet the following criteria:
- In the United States, the borrower has a credit score of 680 or higher
- The borrower fully documents their income and assets
- The borrower's debt to income ratio does not exceed 35%
- The borrower retains 2 months of mortgage payments in reserves after closing
- The borrower injects at least 20% equity
Furthermore, there are some criteria that are guiding factors, such as the borrower having stability in the line of work and/or living in the same property for two or more years. [2]
