Should you get a subprime mortgage?

If you’re not in a rush for housing, it’s probably better to improve your credit instead of getting a subprime loan.
Borrowers may be offered a subprime mortgage their FICO credit score falls below 670.
Subprime mortgages come with higher interest rates and fees, reflecting greater risk to lenders.
Alternatives to a subprime mortgage include FHA, VA, or USDA loans if you qualify.

Not all borrowers qualify for a regular or “prime” mortgage loan, typically due to some form of credit impairment. If a lender considers you to have a greater risk of default than other borrowers, you might qualify for what is known as a subprime mortgage.

Because of their role in the 2008-2009 financial crisis, subprime mortgages have a less than stellar reputation. It’s important for would-be borrowers to understand how subprime mortgages work and how to self-evaluate before agreeing to take one out.

What is a subprime mortgage? 

A subprime mortgage is an alternative offered to borrowers with low credit…

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This article was written by Jim Probasco and originally published on