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what is a subprime loan?

by overbom915 from Dillon, South Carolina. Mar 11th 2019 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Basically, a subprime loan is a loan that is given to a borrower at higher rates and fees because they do not qualify for a "Prime" rate loan. low credit is one of the area's where a borrower might not qualify if the score is not high enough. But the largest group of people who get subprime loans are those who don't show enough income... So they are forced to get with lenders who use alternative documentation (Primarily bank statements.. to validate your income. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Mar 11th 2019
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,476 contributions

Sub-prime, alternative, non-conforming, no doc, stated income - these are all terms that essentially refer to the same thing. A loan you can get for people who do not qualify for the standard traditional loans. Reasons for these loans are many; poor credit, recent bankruptcy, or unable to document income in the traditional way. Because of whatever the person's issue is, they may still be able to get a loan, but expect higher interest rates than traditional loans, and generally bigger down payment requirements to. These loans have gotten a bad rap by many uninformed people. They are not, and have no ever been designed for you to keep for 30-years. They are designed to get you in the home today, and you are supposed to work on fixing your issue so you can get a regular loan as soon as possible. I lend on these loan types for properties in MN, WI, and SD. Visit me at NMLS 274132

Mar 13th 2019
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