Subprime Loan
Last updated 2026-08-01
HUD Housing Counselors Glossary
Updated 2026-08-01
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
pp. 22–24
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