Home loans made to lenders perceived as riskier,that have substantially higher interest rates and sometimes less favorable terms than more conventional loans are called:

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Subprime loans are home loans made to borrowers who are perceived as riskier and have lower credit scores than conventional borrowers. These loans usually have higher interest rates, fees, and less favorable terms. They are known as subprime because they are considered to be non-prime loans that fall outside the conventional lending criteria. The term "subprime" became infamous during the 2008 financial crisis when many of these loans were defaulted on, leading to a collapse of the housing market.

Home Loans Made to Lenders Perceived as Riskier,that Have Substantially