Sometimes refered to as B/C Loan.

It is basicaly a loan for less than perfect credit, self employed, not able to verify income etc.

These days, even people with less-than-stellar credit can buy homes, as long as they're willing to pay up for so-called subprime mortgages. These loans have higher rates and more onerous terms than conventional loans, but they can help bruised-credit borrowers reap the benefits of homeownership just like their more creditworthy cousins.

Pro: Opportunity for those who can't prove income, have low credit scores, bankruptcies, too much credit or need a higher-than-normal loan-to-value ratio on property.

Con: No consistency. Rates, fees and underwriting guidelines vary drastically. Borrowers need to shop more to find best rate.

Anything below A-minus credit score is considered a subprime loan. In addition to paying higher interest rates, subprime borrowers often pay heftier fees at closing, higher late-payment fees, prepayment penalties and credit life insurance so that the bank gets paid if the borrower dies. Banking isn't a business for sentimental types.

• Conforming Loans
• Non-Conforming Loans
• FHA/VA Loans
• Subprime Loans
• Jumbo Loans
• Home Construction Loans
• Home Equity Loans
• 100% Financing Loans
• Refinancing Loans
• Also check out Credit Score