Alternative lending - often known as B lending. We see those sources everyday without even realizing them. As an example - You want to buy an electronic but you do not have money. You go to your father and asked for 200$. He gave you that money on a condition that - you will return the money after 10 days and mow the lawn for two days. That was a quick alternative source of money other than the regular banks.

Most of the banks has arms which deals with B side lending but the reason is different there. Usually when a client does not qualify for money under regular mortgage underwriting guideline then the client gets reffered to a special guideline. That is called B side. The guidelines are a bit relaxed but the interest rates are high. There is a difference between this and second mortgage. This is still a first mortgage we are talking about and the rate is higher. This is because that the cliens has more risk.

• Pay-day lenders
• Relatives
• Peers
• Privet lenders
• Banks
• Different funds
• Many types of home equity loans