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Answer Posted / chaitanya
The term “subprime” refers to the credit status of the
borrower (being less than ideal), not the interest rate on
the loan itself. “sub prime” is any loan that does not meet
“prime” guidelines. If your mid fico score is below 620 and
you have any mortgage rates within 12 months or recent
BK/foreclosure, you are considered “sub prime”.
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