We are looking to buy a house that cost about $120,000 and have $100,000 to put down on the house. Could we get approved for a mortgage for the balance even though our credit is really bad?
10 Comment(s)
With that much downpayment, you can probably find financing for the balance. Shop around for mortgage companies.
Frankly, any reputable bank or mortgage company these days will not give a loan to poor credit borrowers. But if you already have the first $100,000 have you tried just getting the seller to lower the price? Try to present it to a company as a $120,000 mortgage with $100K down, but I really don’t think they’d go for it….
Wow…that’s a ton of money down…..so you’ll get a mortgage for sure. Since you have so much money down already…see if you can’t just save up for the rest rather than taking a mortgage which may still have high interest rates because of your poor credit and buy the whole house cash….that’ll be sweet.
You are probably better off just borrowing 20K from somewhere else and putting all $120K down on the house. It’s getting tougher to get mortgages after that industry (temporarily) sunk the majority of the world’s economy.
short answer is absolutly.
Lending is all based upon risk.
If you have 90% of the value of the house from your own money the risk of you just leaving and walking away from that home is virtually non-existent.
Same would go if you put down 70%, which is what i would recomened.
Shop around several mortgage companies and get various quotes on 90% down, 70% down and 50% down and see what they tell you.
I can assure you, you will be approved and your interest rate will be good.
Its about: Loan to value, credit rating and debt to income. and 2 out of 3 is just fine.
Sure the interest will be huge but if you make larger than minimum payments you can save some of that interest by rapid prepay – just make sure there is no prepayment penalty. Talk to a major bank like Bank of America, Wells Fargo, Citi Bank, etc since they are National banks you will get a better deal than with a broker who will sell your mortgage and you can wind up with a very bad loan in the long run. Good Luck!
Look for a mortgage lender that does manual underwriting, if you pay your rent, bills on time, have a job and you can prove you have the money in your account you can get a loan that don’t require a credit score.
Some lenders will provide you 100% financing, even though your credit scores are low. But if you are ready to make a down payment of even 3-5%, the interest rate will reduce drastically. Try to save as much as you can to make the down payment. At times, waiting for few months before going for a new home loan to collect the required amount for down payment is advisable. This means the interest rate will be slightly lower. But if you choose not to opt for down payment now, refinancing at cheaper interest rate can be done later on.
I think you should check out this site you will save thousands . I found this website it gives you all kinds of info and all the forms i need to raise my credit about 65 points so far for me. The cost is only $19.95 and it work compaired to paying someone else to do it it was easy
With that much downpayment, you can probably find financing for the balance. Shop around for mortgage companies.
bdancer222 | Nov 6, 2009 | Reply
Frankly, any reputable bank or mortgage company these days will not give a loan to poor credit borrowers. But if you already have the first $100,000 have you tried just getting the seller to lower the price? Try to present it to a company as a $120,000 mortgage with $100K down, but I really don’t think they’d go for it….
Megan M | Nov 8, 2009 | Reply
Wow…that’s a ton of money down…..so you’ll get a mortgage for sure. Since you have so much money down already…see if you can’t just save up for the rest rather than taking a mortgage which may still have high interest rates because of your poor credit and buy the whole house cash….that’ll be sweet.
Anjell | Nov 11, 2009 | Reply
You are probably better off just borrowing 20K from somewhere else and putting all $120K down on the house. It’s getting tougher to get mortgages after that industry (temporarily) sunk the majority of the world’s economy.
Joker | Nov 13, 2009 | Reply
short answer is absolutly.
Lending is all based upon risk.
If you have 90% of the value of the house from your own money the risk of you just leaving and walking away from that home is virtually non-existent.
Same would go if you put down 70%, which is what i would recomened.
Shop around several mortgage companies and get various quotes on 90% down, 70% down and 50% down and see what they tell you.
I can assure you, you will be approved and your interest rate will be good.
Its about: Loan to value, credit rating and debt to income. and 2 out of 3 is just fine.
robert k | Nov 14, 2009 | Reply
Sure the interest will be huge but if you make larger than minimum payments you can save some of that interest by rapid prepay – just make sure there is no prepayment penalty. Talk to a major bank like Bank of America, Wells Fargo, Citi Bank, etc since they are National banks you will get a better deal than with a broker who will sell your mortgage and you can wind up with a very bad loan in the long run. Good Luck!
Walking on Sunshine | Nov 14, 2009 | Reply
you may do but talk to your bank first they may help you or talk to a financial advisor
rennickelizabe | Nov 16, 2009 | Reply
Look for a mortgage lender that does manual underwriting, if you pay your rent, bills on time, have a job and you can prove you have the money in your account you can get a loan that don’t require a credit score.
pagodaboy2001 | Nov 19, 2009 | Reply
Some lenders will provide you 100% financing, even though your credit scores are low. But if you are ready to make a down payment of even 3-5%, the interest rate will reduce drastically. Try to save as much as you can to make the down payment. At times, waiting for few months before going for a new home loan to collect the required amount for down payment is advisable. This means the interest rate will be slightly lower. But if you choose not to opt for down payment now, refinancing at cheaper interest rate can be done later on.
Juy D | Nov 20, 2009 | Reply
I think you should check out this site you will save thousands . I found this website it gives you all kinds of info and all the forms i need to raise my credit about 65 points so far for me. The cost is only $19.95 and it work compaired to paying someone else to do it it was easy
D. P | Nov 22, 2009 | Reply