Sub-Prime Borrower

Sub-Prime Borrower

A borrower who does not meet the underwriting requirements of mainstream lenders.

Sub-prime borrowers pay more than prime borrowers and are sometimes taken advantage of. See Predatory Lending.

References in periodicals archive ?
If you are considered a sub-prime borrower, you will likely pay 3 percent more on a mortgage loan than someone with excellent credit and will likely pay double-digit interest rates on a home equity loan or a line of credit.
That doesn't turn them into a sub-prime borrower - we are just pitching it somewhere in the middle.
There was the sub-prime borrower (the King), a lack of liquidity and runs on the bank, eventually resulting in the seizure of foreign assets and international turmoil.
Lett said, "Our historic and current asset quality, lower exposure to developer and investor land acquisition and construction loans, and the avoidance of exotic residential mortgage products (on a prime or sub-prime borrower basis) continues to differentiate us.
Virinchi's deep and extensive experience in underwriting sub-prime borrowers has allowed them to build a structured and analytical underwriting engine to assess its customers' credit risk.
Sub-prime borrowers are those people with a credit score below 640.
As we know a big portion of the growth in sales we're seeing is related to the fact that there's zero percent financing available; even sub-prime borrowers can get away with 3 to 4 percent on a loan on a new car," Alec Gutierrez, senior market analysts for automotive pricing company Kelley Blue Book Co.
This deal could well provide added buying power for sub-prime borrowers.
The pressure on sub-prime borrowers was revealed in rising impairment charges at Provident's consumer credit arm and its Vanquis Bank credit card offering.
uk, there were 2,030 mortgages for mainstream buyers and 1,252 for sub-prime borrowers.
Shelter says thousands of sub-prime borrowers face a big shock when their existing deals end.
THE recent financial turmoil is forcing people to become more responsible when it comes to handling their money, research has shown One in five people who are classed as sub-prime borrowers, suggesting there is a higher risk that they will default on their debt, said they had resolved to try to improve their credit ratings in the coming months.