2006-12-03 07:41:07 · 6 answers · asked by LUIS C 2 in Business & Finance ➔ Credit
As a former mortgage company owner:
You would need to have very, very bad credit in order not to qualify for a good rate with 20% down.
Unless you live in a volitle area like Miami and are looking for a house in excess of $250,000, 20% down should get you regular conforming rates.
Contrary to popular belief, 20% down is very rare. Of the people I have worked with in the past, I would say less than 2% of them actually put this much money down. That said, I think even with bad credit and a verifiable income, you should be able to get conforming rates.
See your local bank or mortgage broker, but do NOT tell them you think you have bad credit. Just approach it with 20% down and they will salivate to get your business. They DO have descretion as to what you are charged, so if they think you believe your credit is bad you'll probably get a higher rate. (Maybe .25% more than you should).
All that said: I haven't run into a single customer with this much saved and bad credit. You are likely being hard on yourself!
Best of luck.
2006-12-03 09:09:25 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The answer depends on just how bad your credit is. You may be eligible for a higher interest loan, but the creditors will probably also look at your income to debt ratio, and how you paid your last major bank loan or mortgage.
2006-12-03 07:56:47 · answer #2 · answered by RedSoxFan 4 · 0⤊ 0⤋
Yes--there are all sorts of programs out there (even for bad credit)...and since you have 20% to put down, you are in even better shape. However, keep in mind that the lower your credit score, the higher your interest rate.
2006-12-03 07:52:39 · answer #3 · answered by iansmommy818 2 · 0⤊ 0⤋
All lenders have minimum credit score requirements for financing. You would need a minimum of a 500 credit score to qualify.
Your interest rate would depend upon all the factors in the loan including; credit profile, employment, income, assets, down payment, etc. I hope that this helps.
2006-12-07 06:39:50 · answer #4 · answered by Mama of Four 4 · 0⤊ 0⤋
If you have bad credit you probably couldn't get any loan no matter how much you put down.
2006-12-06 14:47:27 · answer #5 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
It really all depends on the bank you're borrowing the money from. Just talk to your bank and find out your options.
2006-12-03 07:53:28 · answer #6 · answered by Renee W 2 · 0⤊ 0⤋