Upside Down Mortgage

Posts Tagged ‘subprime primer’

Subprime Prime

Question: If a Prime borrower is late on credit card payments, do they become Subprime borrowers?

If a prime borrower keeps on paying his bills late, do they become a subprime borrower? if yes, where can I get that info or source.

Thank you and God Bless.

Answer: It's not that easy.

It can be a combination of score, payment history or debt to credit ratio that will make a prime buyer into a sub-prime buyer.

Most lenders consider anyone with a score below 625 or anyone with over 2-late payments in the last 6-months to be sub-prime.

As far as debt to credit. I have seen people that have never been late once but all of their credit cards are at 90% and this drops their scores into the high 500 range.

sub-prime mortgage blues

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