If a person has a credit score of 550 to 600, and is looking to purchase a prop. between $50-$100,000.00, what percent of down payment is required?

Couple in their 50's, employed as nurse and industrial mechanic, will mortgage companies take an interest with the correct down payment, if so, who, and would it be high interest special financing?
(0) | asked by: bigh34 | share | 40 months ago | Report

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With a credit score that low, considering todays circumstances, my suggestion would be to get your credit score up before trying to purchase a home. If you have a good job you should be able to start working on your credit to get it up. If you don't, coupled with such a low score, forget about trying to get a loan. That is the simple truth. If anyone tries to tell you differently here,and I am sure they will, then they don't really know what they are talking about. Now you probably would need to put down more than 20% for even a shot at it. and it the loan amount falls below 50,000 then most banks will not loan less than 50,000 for a home. just other things to consider. but get your score up then try to purchase a home. good luck.
(2)   |   by TERRY KRAEMER   |   40 months ago   |   Report
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answer by Daniel Fisher   |   Visit My Website   |   Contact Me
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Good evening, Bigh. I know it has been almost a year since you asked about this. Did you get your loan and your home? If not, 3.5% down would generally be enough, but you also have to consider how you are going to pay for closing costs, which can be upwards of 4% on a lower priced home. The down payment needs to be your own money or a gift from immediate family. If you think you might not have enough down payment or closing costs, there are options for assistance and grants, and we are usually successful in getting Sellers to pay your closing costs. You should research the loans and down payment assistance available via the north carolina housing finance agency at www .nchfa. com (nospaces) Required down payments vary. There are some loan programs where only $100 is required. I know of others that have a $500 and $1,000 minimum, and there are some that require a certain percentage down (3% and 3.5% are common). you might also search the web for naca. org What kind of loan you can qualify for and how much of a down payment you have to put down will depend on your income. For example, if you only qualify for an $80,000 loan and you want to buy a $100,000 home, your required down payment could be 20%. Your credit profile can also affect your required down payment. Right now, lenders require a strong payment history and every borrower on the loan generally must have 12 months of on time payments for every bill that comes in their name. They are also wanting to see a middle credit score over 620 (although I know of a lender funding at 580 and few that are not credit dependent). If you had a major credit event like bankruptcy, foreclosure or a short sale, you need to be at least 2 years past if you were on time with all payments prior to the event or three years if you were in default. With a major credit event, making a larger down payment of 10% or 20% may be required, especially if you are just 2 years past it. The best thing to do is to get with a full time real estate agent who understands finance and can recommend several different financing options based on your specific situation so that we can shape your offer so that if fits your finances and loan approval terms. You also want an agent who understands options for repair financing so that if you find a home you really like but discover that needs repairs, you can still purchase it and get financing to make all the repairs before you move in.
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29 months ago  |   Report   |   share
answer by Vicky Tesh   |   Visit My Website   |   Contact Me
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The amount of down payment depends on the type of loan you qualify for. An example is an FHA loan requires a 3.5% down payment. The best advice I can give you is to go to a lender of your choice and get pre-approved for a loan, this way you will know the amount you will need for down payment and closing costs. Being pre-approved also gives you strength in the negotiation process of purchasing a home, plus it gives you the comfort of knowing what your payment will be so that you will be confident in making the purchase. Let me know if I can be of assistance. Vicky Tesh, First Carolinas Realty, 843-902-4305.
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40 months ago  |   Report   |   share
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