A subprime loan is a mortgage loan that is made to an individual
with poor or bad credit. These are typically individuals that would have
poor credit scores of 620 and below.
Because of their poor credit scores, subprime borrowers do not qualify for traditional loans or government loans such as FHA and VA loans. And currently, subprime loans represent 15% to 25% of the total mortgage market.
Because of their poor credit scores, subprime borrowers do not qualify for traditional loans or government loans such as FHA and VA loans. And currently, subprime loans represent 15% to 25% of the total mortgage market.