A subprime mortgage is a type of home loan offered to borrowers with lower credit scores or limited credit histories. These loans typically come with higher interest rates compared to prime mortgages, reflecting the increased risk to lenders. Subprime mortgages can help individuals who may not qualify for traditional loans to purchase a home. However, subprime mortgages can also lead to financial difficulties for borrowers. If they cannot keep up with the higher payments, they may face foreclosure, which is when the lender takes back the property. This situation was a significant factor in the 2008 financial crisis, which involved many subprime mortgage defaults.