Is Sub-Prime lending dead? I would say not really judging by the last deal that I closed. Don't get me wrong the borrowers were good borrowers. They had a score in the 500's and put 5% down and bought a really nice home in a great neigborhood. In the old days that loan would have been called "sub-prime." The funny thing is, that loan was insured by none other than out Government under the FHA guarantee program. I am also seeing a big come back on Jumbo loan product and low down payment mortgage products. Right now you can do 10% down up to $1,500,000 believe it or not. Those borrowers on the fence who are now paying rent take a jump into home ownership while the iron is hot and before it gets hotter.