borrowers with adverse credit are sometimes referred to as "sub-prime" by lenders.

A sub-prime loan is any loan in which the borrower has challenges in obtaining mortgage financing because of poor credit, hard to document income or assets, or any unique situation that would prevent them from obtaining funding through "conforming" lenders.

Sub-prime, also known as non-prime, is the designation given to consumers with less than perfect credit ratings. Such ratings may be the result of limited credit histories, past credit difficulties, high debt-to-income ratio or other factors.