Asked by SIMNIKIWE MASIKITI on Jul 23, 2024
Verified
When a borrower does not qualify for a conventional mortgage,he will automatically qualify for a subprime loan.
Subprime Loan
A type of loan offered to individuals with poor credit scores or limited credit history, typically at higher interest rates due to perceived increased risk.
Conventional Mortgage
A mortgage that involves no government backing by either insurance or guarantee.
- Understand the basic principles of different mortgage types and their characteristics.
Verified Answer
JR
Jadia RobinsonJul 28, 2024
Final Answer :
False
Explanation :
Not qualifying for a conventional mortgage does not guarantee qualification for a subprime loan. Subprime loans typically involve higher interest rates and fees, and may come with stricter eligibility requirements.
Learning Objectives
- Understand the basic principles of different mortgage types and their characteristics.