Mortgage Myth of the Day

Myth:
Borrowers who qualify for prime loans only end up with subprime loans if lenders deceptively steer them into such loans.

Reality:

Many borrowers who might qualify for prime loans knowingly select subprime loans for reasons that include:
  • A desire to put little or no money down.
  • A desire to not have to document income, either to speed up the deal or to defraud the lender.
  • A desire to take out a larger loan than the borrower could qualify for under prime terms.
Source - National Mortgage Bankers Association 1/31/08

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