When Should I Consider A Subprime Loan?

If your dream in life is to buy a house, but bad credit is preventing you from making that dream happen, a subprime loan might just be the best choice for you. 

If you’ve considered applying for a subprime mortgage in California, you’d like to know what you’re getting into. We’re going to break down what a subprime loan is and when is the best time to get one.

What Are Subprime Loans?

A subprime loan is actually quite similar to a conventional mortgage at its core: It’s a mortgage from a financial institution that is designed to help buyers purchase a new house.  

The exact credit score that qualifies as subprime may differ among different lenders, but normally a score below 620 would be considered subprime.

If you have more questions about subprime loans, you can reach out to an LA County mortgage professional like Lux Funding for assistance.

Benefits of Subprime Loans

One of the main benefits of subprime loans is that they offer a way to secure a house when you don’t qualify for other loans due to a low credit score. 

There are several other benefits to getting a subprime loan which is listed below:

  • These loans can help borrowers who have to pay off debts by consolidating and making payments smoother.

  • If the borrowers can make monthly payments, then a subprime loan can help improve the borrower’s credit score.

  • Subprime owners have a higher chance of purchasing houses, cars, etc., that they wouldn’t be able to buy on their own.

If you think this type of loan is a good idea, you can apply for a subprime home loan by Lux Funding.

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.