The subprime division of the mortgage market caters to people with less-than-perfect credit records. Foreclosures have skyrocketed in the past year due to a rise in the interest on adjustable rate mortgages, which left many subprime borrowers unable to make their payments.
Not surprisingly, the shakeout in the subprime loan market has forced many people to look for better ways to borrow. Federal Housing Administration loans, as well as mortgage loans established with community banks and housing advocacy groups, have proven to be savvy alternatives to conventional mortgages. And Islamic loans forbid the charging of interest. Intriguing.
So tell us: Have you used any of these alternative ways to borrow? How did they work?