Subprime Mortgage
Updated 04/29/2024

A subprime mortgage is a form of loan given to people with low credit scores—640 or less, and commonly less than 600—who would be unable to qualify for conventional mortgages due to their bad credit histories. Any subprime mortgage carries a significant degree of risk. The word “subprime” refers to the borrowers and their financial status, not the loan itself. Borrowers with subprime credit are more likely to default than those with good credit ratings.

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