What does "subprime" mean?

Asked by Trulia Boston, Boston, MA Tue Feb 12, 2013

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Kawain Payne, Agent, Seal Beach, CA
Tue Feb 12, 2013
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SUBPRIME should mean BEWARE VERY DANGEROUS LOAN!!!!

It actually refers to a loan for buyers that are considered high risk. This would include peole with low credit scores, high debt to income raios, or undocumented sources of income.

These loans also usually have rates and terms that are not as favorable to REGULAR rates and terms.

Kawain Payne, Realtor
0 votes
Richard Shap…, , Framingham, MA
Wed Feb 13, 2013
less than good. word used to describe loan products for borrowers with credit issues that can not qualify for a typical loan (Fannie/Freddie/FHA/VA).
0 votes
Mario Pavli, Agent, Boston, MA
Tue Feb 12, 2013
Very high risk loan to people with really low credit score.

Best Of Luck
0 votes
Rafael Herna…, Agent, Roslindale, MA
Tue Feb 12, 2013
This is usually a loan given to someone who could be considered high risk.
0 votes
Meri Galstian, Agent, Boston, MA
Tue Feb 12, 2013
"Subprime" refers to a lending practice where loans are extended to people with high credit risk. This is what primarily caused the housing bubble to burst in the late 2000's.

Meri Galstian
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