Franz asks Gateway Mortgage Credit for a loan to pay for the purchase of a home. With a poor credit score and a high current debt-to-income ratio, Franz does not qualify for a standard mortgage. Gateway is most likely to provide

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Given Franz's poor credit score and high debt-to-income ratio, he is considered a high-risk borrower, and therefore, Gateway Mortgage Credit is likely to offer him a subprime mortgage. Subprime mortgages are loans designed specifically for borrowers who have a low credit score or a high debt-to-income ratio. They usually come with higher interest rates to offset the risk of default, making them more expensive than standard mortgages. A deed in lieu of foreclosure is a transfer of ownership of a property to the lender in case of default, while a home equity loan requires the borrower to have equity in the property, neither of which is likely to be suitable for Franz's situation. A workout agreement might involve a modification of the loan terms to make them more affordable for the borrower, but it is not clear if Franz's situation would qualify for such an agreement.

Franz Asks Gateway Mortgage Credit for a Loan to Pay