Loans to home buyers who do not qualify for a standard mortgage are called _____ mortgages.
A)subsidized
B)subprime
C)government-guaranteed
D)shadow

Question

Quizplus · Accepted Answer

Subprime mortgages are loans given to home buyers who do not meet the criteria for a standard mortgage due to poor credit history or low income. These loans often come with higher interest rates and fees compared to standard mortgages, which increase the risk of default for the borrower. The subprime mortgage crisis in 2008 led to a significant economic downturn, as many borrowers defaulted on their loans, leading to widespread foreclosures and financial instability.

Loans to Home Buyers Who Do Not Qualify for a Standard