Citadel Servicing Corporation is a wholesale non-prime mortgage lender focused on borrowers who cannot qualify for conventional, government, or standard non-QM programs due to significant credit history issues. Their programs are designed for borrowers who are otherwise creditworthy but have recent derogatory credit events that disqualify them from conventional channels.
Non-Prime vs. Non-QM: The Distinction
Non-QM and non-prime are not the same thing. Non-QM refers to loan programs that do not meet the Qualified Mortgage definition under Dodd-Frank, typically because of documentation type (bank statement, DSCR) rather than credit impairment. Non-prime refers to programs designed for borrowers with significant credit derogatory history: foreclosures, short sales, bankruptcies, and mortgage lates. Citadel serves the non-prime segment, accepting borrowers with recent major credit events at shorter waiting periods than conventional and FHA require.
Program Parameters
- ✦FICO floor: Citadel programs accept lower minimum FICO scores than standard non-QM products, including FICO scores below 600 for certain programs
- ✦Waiting periods: shorter seasoning requirements after bankruptcy, foreclosure, short sale, and deed-in-lieu compared to FHA and conventional
- ✦LTV: maximums are lower than conventional to compensate for higher credit risk, and vary by credit event type and seasoning
- ✦Documentation: full doc and alternative documentation options available depending on the program tier
How Broker Submissions Work
- ✦Brokers must be approved to submit through the Citadel wholesale channel
- ✦Scenario desk support is available before formal submission to confirm program fit
- ✦Pricing is risk-based and reflects the non-prime credit profile: rates are higher than agency or standard non-QM
- ✦Prepayment penalties apply on most non-prime investor products
When to Use Non-Prime Programs
- ✦Borrower has a foreclosure or bankruptcy within the past 1 to 3 years and does not meet agency seasoning requirements
- ✦Borrower has multiple mortgage lates in the most recent 12 to 24 months that disqualify them from FHA and conventional
- ✦Client needs financing now and cannot wait out the full conventional waiting period
- ✦Borrower has recovered financially but their credit history does not yet reflect that recovery
Aria can review a borrower's credit event history and identify which non-prime or non-QM programs are available based on waiting period requirements. Ask at vicariointel.com.
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