Last reviewed 10-31-2026Short-Sale.com Editorialglossary

Subprime Loan

HUD Housing Counselors Glossary

Updated 10-31-2026

Subprime Loan

A type of mortgage with less stringent lending and underwriting terms and conditions, usually offered to borrowers with blemished or limited credit history, low income, and/ or limited documentation. Due to the increased credit risk, subprime loans carry higher interest rates than prime loans.

HUD Housing Counselors Glossary

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