A blemished borrower is a borrower that has one or more of the following risk factors:

• can only make a very small or no down payment
• cannot fully document their income and assets having to do a stated loan
• their property is something other than a single-family home, such as a mobile or manufactured home
• their loan is intended to raise cash or to purchase an investment property
• have low credit scores due to blemishes on their credit
• their income is low relative to their expected total obligations

and their mortgage carries an adjustable rate that will result in substantially higher payments in usually 2 to 7 years depending on the loan.