What type of loan might a loan officer deceive the borrower into choosing?

A sub-prime mortgage is often marketed to borrowers with lower credit scores or financial difficulties, making it more appealing to those who may not qualify for better terms. Loan officers might persuade borrowers to choose a sub-prime mortgage due to its access to higher-risk borrowers, but this option typically comes with higher interest rates and less favorable terms than those available through conventional or government-backed loans like FHA or VA loans.

In situations where a borrower is not fully aware of their financial options, a loan officer may prioritize these loans because they can yield higher commissions for the lender. This deceptive practice can trap borrowers in a cycle of debt, as they might end up paying significantly more over the life of the mortgage compared to more conventional alternatives. This choice reflects a potential ethical concern within the lending practices, highlighting why it's crucial for borrowers to have a thorough understanding of their options and for loan officers to act in the best interest of the client.