What is a Subprime Mortgage

What Is a Subprime Mortgage?

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Why Subprime Mortgages Exist

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What Makes a Loan Subprime

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Risks Borrowers Should Know

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When It Can Make Sense

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Learn More Before You Decide

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What is a Subprime Mortgage

What Is a Subprime Mortgage?

What Is a Subprime Mortgage?

A subprime mortgage is a home loan made for borrowers with weaker credit profiles. Because lenders take on more risk, these loans usually cost more.

A subprime mortgage is a home loan made for borrowers with weaker credit profiles. Because lenders take on more risk, these loans usually cost more.

Why Subprime Mortgages Exist

Why Subprime Mortgages Exist

Not everyone has perfect credit

Not everyone has perfect credit

Life events can lower scores

Life events can lower scores

Lenders offer access to homeownership

Lenders offer access to homeownership

What Makes a Loan Subprime

What Makes a Loan Subprime

Lower credit score range

Lower credit score range

Larger down payment often required

Larger down payment often required

Higher interest rates

Higher interest rates

Stricter approval guidelines

Stricter approval guidelines

Risks Borrowers Should Know

Risks Borrowers Should Know

Higher monthly payments

Higher monthly payments

Fees may be higher

Fees may be higher

More interest paid long term

More interest paid long term

Foreclosure risk increases

Foreclosure risk increases

When It Can Make Sense

When It Can Make Sense

Credit issues are temporary

Credit issues are temporary

Income is steady

Income is steady

Plan to rebuild credit

Plan to rebuild credit

Refinancing is the goal

Refinancing is the goal

Learn More Before You Decide

Learn More Before You Decide

Read our in-depth blog at ALT Financial to understand subprime mortgages, compare loan options, and make confident home-buying decisions.

Read our in-depth blog at ALT Financial to understand subprime mortgages, compare loan options, and make confident home-buying decisions.