Fearing Subprime Loans 

Subprime loans have been taking a beating in the media lately, which has resulted in many thinking they are a bad thing. They are not, necessarily. They are definitely worse than loans for people with good credit, but the question is not that simple. The issue is not the payment terms of the loan. It is whether you can afford to meet them. This is true of ANY loan. If you can afford to make the payments, then real estate is a good investment. That being said, the simple fact a lender say it will give you a certain amount of money at a certain payment does not mean you should necessarily take that loan. Figure out if you can comfortably make the payments and go from there.