Subprime
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Subprime refers to mortgages offered to borrowers with weaker credit, usually carrying higher interest rates and fees to offset the added lending risk.
What Subprime means
Before the 2008 crisis, loosely underwritten subprime loans were common. Today's version is tighter and often labeled non-QM, with documented income and meaningful down payments. The label still signals credit challenges and pricing above prime market rates.
Florida example
A Miami buyer with a 580 score and a recent late payment financed through a non-QM product at a rate about two points above prime, with plans to refinance once credit recovered.
What it means
Subprime describes loans made to borrowers with lower credit scores. They carry higher rates to offset the added risk.
The term became well known after the 2008 crisis.
Better options today
Today, programs like FHA and non-QM often serve credit-challenged buyers with fairer terms. There are safer paths than old subprime loans.
We find responsible options for every credit level. Reach out and we will match you to a fair loan.
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