Alabama Real Estate Exam Prep 2026 | Real Estate Practice Questions

Who is likely to be granted a subprime mortgage?

Individuals with excellent credit history First-time homebuyers Individuals with poor credit histories Investors in commercial real estate

Correct Answer:

Individuals with poor credit histories

Explanation:

Individuals with excellent credit history are typically able to secure conventional mortgages at favorable interest rates, so they would not need to apply for a subprime mortgage which is generally associated with higher interest rates. First-time homebuyers may actually qualify for special mortgage programs designed specifically for them, making option B incorrect. Investors in commercial real estate would not be looking to purchase a residential property, so option D is also incorrect. Therefore, option C, individuals with poor credit histories, are most likely to be granted a subprime mortgage.

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