Sub Prime Lenders

In finance subprime lending also referred to as near prime subpar non prime and second chance lending is the provision of loans to people who may have difficulty maintaining the repayment schedule.

Sub prime lenders. A type of lender that specializes in lending to borrowers with a tainted or limited credit history. Top 5 subprime mortgage lenders. Subprime lending is more concentrated in a smaller number of large lenders than. If a borrower is delinquent in making timely mortgage payments to the loan servicer a bank or other financial firm the lender may take possession of the property in a process called foreclosure.

Subprime loans have a higher risk of default than loans to prime borrowers. While the current loan products are not quite like the pre recession subprime mortgage programs they are increasingly becoming available to borrowers with lower credit scores the self employed and other types of borrowers that have been left out from getting a mortgage for almost a decade. Historically subprime borrowers were defined as having fico scores below 600 although this threshold has varied over time. Quite often subprime borrowers have been turned down by traditional lenders.

These loans are characterized by higher interest rates poor. Subprime lenders provide a means for people to afford a house or a car given their current financial standing. While most loan providers deal with so called prime borrowers there is a particular segment that caters to those with less than perfect credit or no credit at all. Called subprime mortgages these poor credit home loans are designed to offer homeownership opportunities to consumers whose credit score may not meet the minimum standard of a traditional lender or who might have a higher debt to income ratio.