There is typically a "story" to accompany a sub-prime loan. In other words, the borrowers looking for such loans typically desire cash out for debt consolodation, credit card payoffs, home repairs, divorce settlements, etc... For one reason or another, the equity built on these homes, for refinances, become a potential solution for short term cash requirements.

Some subprime borrowers have good credit but have difficulty proving all of their employment, income, or assets. Subprime niche lenders often have specialized programs tailored to meeting these borrowers needs.

In the subprime market there are many lenders who have a special niche that they are able to serve better than anyone else. If you have unique challenges due to your credit history, employment situation, etc a qualified broker will be able to find the lender that will be the best fit given your personal situation.

Some typical subprime lenders include First Franklin, Argent, Option One, Decision One, and Delta Funding.

Its not the borrower that is subprime but the loan they take.

Just because you happen to fit into the "subprime" category, doesn’t mean you should be gouged with excesses fees to do your loan. But please keep in mind your loan will be more expensive than most to do however, because the loan requires many more hours of work for your mortgage professional to find, place, and complete the process.