what is a subprime lender?

A bank that lends money to people with lower credit scores or other "risk" factors, like being self employed. You get a higher interest rate.

There are many out there, mostly called loan sharks! Banks and the big-name mortgage companies are prime lenders. Those other mortgage companies that prey on the helpless are subprime and charge inflated interest rates. Wells Fargo is in the middle between prime and sub prime, as an example. A subprime lender might charge exhorbant interest rates and even stoop to posting your payments a day or two late just to get an added interest charge. If you can, stay away from them.bob

Typically, subprime loans are for persons with blemished or limited credit histories. The loans carry a higher rate of interest than prime loans to compensate for increased credit risk.

www.hud.gov (http://www.hud.gov/offices/fheo/lending/subprime.cfm)