Back to Glossary
Subprime Mortgage
Updated
January 19, 2023
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.
Related Topics
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual
How Much of a Mortgage Payment Goes to Principal
What Do Underwriters Do?
What Does Loan Underwriting Mean
Loan To Value and Down Payments
What is Underwriting in Real Estate?
Homeowner's Guide: DIY Home Improvement