What does a borrower likely not qualify for if offered a sub-prime mortgage?

A borrower likely does not qualify for a conventional loan if offered a sub-prime mortgage due to the differences in criteria and risk assessments associated with these types of loans. Conventional loans typically have stricter credit score requirements, stable income verification, and lower debt-to-income ratios compared to sub-prime loans.

Sub-prime mortgages are designed for borrowers with lower credit scores or a less-than-ideal credit history; thus, they often come with higher interest rates to mitigate the risk to lenders. Because conventional loans require higher creditworthiness, a borrower who qualifies for a sub-prime loan is generally not able to meet the more stringent requirements of a conventional loan.

In contrast, other types of loans, such as home equity loans, government-backed loans, and bridge loans, can have varying eligibility requirements that may accommodate borrowers with lower credit ratings or financial backgrounds. This is the primary reason why a sub-prime borrower is less likely to qualify for a conventional loan.