Subprime Loans

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January 1, 1 6 min read Definitions

FICO Scores Credit Risk Mortgage Underwriting Loan Approval Credit History Credit Rating Subprime Loans Down Payment

FICO scores measure borrower credit risk and are commonly used by mortgage underwriters when originating loans on owner-occupied homes. The score is based on the applicant’s credit history and credit usage patterns, expressed as a number between 300 and 850. This score determines loan approval and terms offered.