Financing in New Hampshire>Question Details

Nickscola, Home Buyer in Concord, NH

Is it possible to find a mortgage with 40-50% down but a credit score of 570?

Asked by Nickscola, Concord, NH Thu Dec 15, 2011

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Best way to find out it to talk to a local lender or mortgage broker. But let me ask you this: If you have so much money to put down, why not use some of that money to help improve your credit score?? Why not pay off, or pay down some of your debt?!
Web Reference: http://www.sallygrenier.com
2 votes Thank Flag Link Thu Dec 15, 2011
Nickscola,
You don't have a down payment because that is the money you owe on your student loans. You will not get a mortgage with student loan charge off. It is considered a federal debt since you are paying SALLIEMAE.
Pay off your student loan. Then save as much as you can for a year. Your credit will go up since you have a satisfied charge off, you no longer owe the feds money and time has passed.
1/3 of the mortgage approval is willingness to pay. You need to be able to prove to an underwriter that you are willing to pay your debts.
1 vote Thank Flag Link Fri Dec 16, 2011
Nick your first step is to have a Local Loan officer pull your credit and look at your other financials. They then can advise you how to proceed, i have a great Loan officer I use that prequailify you at no charge. he can at least give you some direction.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Dec 24, 2011
Chase Financial - Chris Sullivan 614-432-0071 Can do an FHA loan with 10% with a 580 or higher.
0 votes Thank Flag Link Thu Dec 15, 2011
You really should have a mortgage professional look at your credit report. It is true that the damage is done once the accounts appear as charge offs on your report, however there could be other things that you could be doing to improve your credit score. I specialize in improving customer's scores, give me a call.
0 votes Thank Flag Link Thu Dec 15, 2011
Keep that balance to just under 30% of what your limit is and do not pay it to zero. Always keep a small balance even if it's $5. You really need to sit down with a lender that can review your credit report and see what other items can be addressed to help bring your scores up.
0 votes Thank Flag Link Thu Dec 15, 2011
I have one that I have been using and paying on-time.
0 votes Thank Flag Link Thu Dec 15, 2011
Since they are charge-offs the damage has been done. The older it get the less of a negative impact it will have but keep trying to work something out with them. Sometimes it's just a matter of getting the right person on the phone that is not having a bad day.

In the meantime, you have any credit cards debt you can pay down?
0 votes Thank Flag Link Thu Dec 15, 2011
charge offs are not that old, probably less than a year or 2. It's a tough situation because I am making payments on them but was told by sallie mae that they will not update or change the credit reporting until the balance is paid off. Not sure why/how they can do that when I am making payments but that's what I was told several times. Any suggestions on how to handle that?
0 votes Thank Flag Link Thu Dec 15, 2011
How old are those charge-offs?
0 votes Thank Flag Link Thu Dec 15, 2011
Thanks -- The charge offs can be an issue depending on the amount of money owed.
Do you/can you start making payments on them - however small it may be?
If so -- that alone can boost you pretty well.
Also, like Elliott said, if you have other debt-- keep the balances to approx 50-60% of the limit.
That again should bump you well.
Web Reference: http://lendwithjason.com
0 votes Thank Flag Link Thu Dec 15, 2011
Not many options with that score so,pay off debt than scores will rebound. You will not need a large down payment if your scores come up to a 620. I would talk with a local lender to go over options after your debt is paid off.
0 votes Thank Flag Link Thu Dec 15, 2011
Do you have any credit card debt? If so, paying those balances down to just under 30% of your limit is the best way to bring your scores up.
0 votes Thank Flag Link Thu Dec 15, 2011
thank you for the responses. Here is some more info. The reason for the low credit score is because of two charged off private student loans. Other than that there are no problems. Paying them off is not an option as they amount is too much and that would be all my down payment.
0 votes Thank Flag Link Thu Dec 15, 2011
Work on those scores first like Sally suggested.
http://www.trulia.com/blog/elliott_r_oliva/2011/07/credit_10…
0 votes Thank Flag Link Thu Dec 15, 2011
The answer is likely.. but it depends on a few things.
When we are approving a loan/borrower, we look at 4 areas.
1/ Credit (if you are 570, then you are on the lower side of things). Scores range from 350-850.. Also, how much debt do you carry.
2/ Income -- how stable is it? How long have you been there? Are you commission based/salary etc?
3/ Assets -- down payment. You are great in this respect. Also, we look at money left over after you buy.. we call them reserves, and lastly,
4/ Property -- what type of property? Single family, condo, flat, duplex, etc.

If you are buying/refinancing a single family home that you are going to live in (#4), you have a large downpayment (#3), you have a great job and income (#2) -- but your credit is iffy -- then you can be ok.

We lend to borrowers down to 580 (if you are at 570, 580 is a hair away in the lending world -- it is likely quickly achievable) -- and with a large downpayment - you are even that much more of a stronger risk.

Feel free to visit my site at http://www.lendwithjason.com for more info and help.
I have been in lending for 11 years and am based in Bedford, NH.
Thanks, Jason
0 votes Thank Flag Link Thu Dec 15, 2011
I would check with a local area Mortgage Broker or Realtor. Chances are with a down payment that large you could find a private lender or a seller that is willing to carryback paper.
0 votes Thank Flag Link Thu Dec 15, 2011
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