Borrower Experiences with Subprime Mortgage Loans in Gwinnett County, Georgia.

摘要

When purchasing a home, buyer considerations include price of the home, credit rating, mortgage type, and lending agency. The purpose of this phenomenological study was to explore the loan options successful business leaders consider when shifting loan lending from prime mortgage loans to subprime mortgage loans. Systems theory formed the conceptual framework for the study. A purposive sample of 20 participants from Gwinnett County, Georgia completed semistructured interviews and described their personal experiences. Data analysis incorporated van Kaam's technique to code and cluster information into topics. The following themes emerged from the analysis indicating what these business leaders considered when they established subprime mortgage loans: (a) creditable subprime mortgage lending, (b) preferred subprime mortgage type, (c) length of the approval process, (d) pressures and limited options, and (e) the benefits of a subprime mortgage. The findings indicated these creditworthy subprime borrowers received better loans options. Findings also showed that subprime mortgage borrowers preferred fixed rate mortgages, creditworthiness determined the extent of their subprime process, the number of first time homebuyers increased, and mortgage borrowers with credit problems preferred subprime mortgage loans. The information from this study could assist mortgage borrowers looking for loan options and mortgage lenders looking to build stronger relationships with the borrowers and communities they serve. Implications for positive social change include the possibility to lower foreclosures in Gwinnett County, Georgia and increase the mortgage knowledge of future borrowers.