Home Buying in Wethersfield>Question Details

Krystalloves…, Home Buyer in Wethersfield, CT

I'm am curious to know, if you don't have good credit how much money would be reasonable to have saved up as a down payment considering

Asked by Krystallovessophias, Wethersfield, CT Sun Feb 17, 2013

home ownership

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Hi! I am a mortgage banker in Wethersfield. I help people like yourself to buy homes with little or no money down. Call me if you would like to schedule an appointment. Lisa Long 860-995-3513 cell
0 votes Thank Flag Link Tue Mar 26, 2013
As long as you have a 620+ credit score and a minimum down payment of 3.5% you're off to a good start. We would need to evaluate your income and monthly liabilities to ensure they meet both FHA and lender specific guidelines. If you'd like to discuss some scenarios I'd be more than happy to shed some light on the neccessary steps needed to obtain home financing.

Kindest regards,

Paul Marzolla
Loan Officer
(201) 957-6768
(201) 203-2266
0 votes Thank Flag Link Thu Feb 21, 2013
Hi Krystallovessophias,
I'm a realtor in here in Wethersfield. You have got some excellent responses to your question. If you would like to come by my office, we can discuss what it would take to get you pre qualified.
0 votes Thank Flag Link Mon Feb 18, 2013
My best advice to you would be to use any money that you thing you can save towards clearing your credit first. A good credit rating is the most important factor in getting any type of loan, whether for a home or a car. Cash would help you only if you are able to pay for a home completely in cash. If that were the case, you should get your credit in order first and then everything else will fall into place! I hope this information helps!
0 votes Thank Flag Link Mon Feb 18, 2013
Hi Krystallovessophias,
I understood you question is how much of a down payment is needed if you don't have good credit. The number one thing a lender will be looking for is income to repay the loan. Credit is an important factor and you will need any past due items to be paid in full. It will not likely be possible to obtain a loan if you still have outstanding past due debts. You will probably also be asked to write a letter explaining what happened. Having a high down payment - even a really high one like 30% or more - will not be enough for most lenders to ignore income and credit factors.

Start by pulling the free credit report to see what is past due and correct any errors.
0 votes Thank Flag Link Mon Feb 18, 2013
3.5% down payment (FHA) + 6 months tax escrow + 1 year home insurance ($1100) to buy the house with a 43% total debt to income ratio. Best to have six months income in reserves as well. Many have done it with less.
0 votes Thank Flag Link Sun Feb 17, 2013
The best place to start would be to check your credit to see where you stand right now. You should be able to obtain free annual copies of your credit reports from the major reporting agencies. There may be things adversely affecting your credit that you can correct quickly and get on track. Keep in mind, buyers with high credit scores get better rates than buyers with low credit scores. Once you are informed, you should speak with a good mortgage broker, your local bank or credit union. They will tell you what you qualify for now or where you need to be and how you can get there. If you need a referral, please let me know. I'd be happy to help.

Brian Takiff
SSG Real Estate
0 votes Thank Flag Link Sun Feb 17, 2013
Josh is correct 20% although you may qualify for CHFA for first-time home-owners. I included a link to their website for more info. Good Luck!
0 votes Thank Flag Link Sun Feb 17, 2013
20% will be the best number.

Best of Luck
0 votes Thank Flag Link Sun Feb 17, 2013
Your credit report is subjective. Depending on the loan program and the lender you speak to. If your credit score is somewhere around 620-640, you shouldn't have too tough of a time getting pre-approved for a FHA 203b. This program offers a low 3.5% down payment, easier qualifying, and low rates. Read my blog below and see if you fit into this category. Next contact a local Realtor in your area and ask for a couple of recommendations or you can search this site. Do your homework, check and compare lenders fees, rates, see their "Recommendations", and if they are a Mortgage Broker or Mortgage Banker. It could make the difference in your case.

Best of Luck!

Web Reference: http://www.AFN-loans.com
0 votes Thank Flag Link Sun Feb 17, 2013
A good place to start would be to talk with your bank or a mortgage loan officer. Most banks want a credit score of at least 620-640. There are also different types of loans or programs that you might quaify for. Some offer 100% financing and low down payments. If you would like a referral or have any questions, feel free to email or call me.

Good Luck,
Jessica Tracy
CG Real Estate
0 votes Thank Flag Link Sun Feb 17, 2013
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