Alt-A
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The term Alt-A is used to refer to a (mortgage loan) level of risk between "prime" (A-paper) and Subprime.
Some reasons a person might choose to file an Alt-A is a person who would normally qualify for an A-Paper loan but prefers or is unable to come up with the necessary documentation to do so. For example a tip-earner may have no way to prove his or her income with bank statements so he or she goes "stated income" Alt-A and thus is able to qualify for a loan at a slightly higher rate than a prime rate. However this is one example, there are others.
Problems associated with Alt-A loans is the lack of necessary proof or documentation needed to be approved for a loan and thus borrowers may be inclined to lie about their incomes or assets in order to qualify for a larger loan and in the long run turn out to not be able to afford their payments. See: Adjustable Rate Mortgage