Home Buying in 03842>Question Details

cc, Home Buyer in 03842

Looking for a program that allows for low credit score but requires a large down payment.

Asked by cc, 03842 Wed Oct 6, 2010

I want to buy the home I am renting for 300k in NH. I can put about 40-50 percent down but can not obtain a mortgage with my credit score.

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BEST ANSWER
Christina -

If you have a valid reason for low scores - or an extraordinary event that was temporary in nature and can be explained and documented - you may have options.

Check with a LOCAL bank to see if they will consider a Portfolio loan. This is a loan that is kept by the bank in their portfolio - generally at a higher than market interest rate.

Once your credit gets back on track you can refinance at any time.

Ask a local Realtor for a local bank that does these type of loans - they are out there.
Good Luck!

If you like the answer - please consider making it a "Best Answer" !

Gerard Dunn
Associate Broker
Licensed in Maryland, Virginia and Washington, D.C.

Assisting Homebuyer's and Seller's for 28 years
703-216-9100
0 votes Thank Flag Link Thu Oct 7, 2010
A large down payment is considered a compensatory factor for a mortgage. How low is your FICO and have you had a mortgage officer go over your credit to tell you what you need to do to get it up. That is one service I provide free of charge. Let me know if you need help.
0 votes Thank Flag Link Mon Oct 11, 2010
Christina you definately will want to meet with a local and trusted mortgage company, the loan officer can look at your credit and financials as a whole and let you know if there are any programs that you quailify for. Having the large down payment may quailify you for loans that are not as strcit as those that require PMI.

Please see my blog for more info and tips on obtaining a mortgage
0 votes Thank Flag Link Mon Oct 11, 2010
Hi Christina- I may be able to help. There are still some options out there- with some portfolio lenders. The rate (and fees) will certainly be higher than the market rate- but it may be an option for you. Feel free to contact me.
Thanks and good luck,
Ken
0 votes Thank Flag Link Sat Oct 9, 2010
Christina,
Hi - you are in a fortunate position of having the large down payment.
However, not knowing particulars make it hard to answer correctly, but I suggest you speak with a mortgage professional in New Hampshire.
I use Dave Johnson of Schaeffer Mortgage he and his team can guide you in the right direction.

Steps to take would be to get your credit score up - paying down debt, paying on time for several months.
Some programs allow for a letter of exception written by you.
Bottom line though - you need to get pre-approved by a mortgage professional, unless the owner is willing to finance the property to you themself.

Juli Pelletier

eXp Realty
0 votes Thank Flag Link Thu Oct 7, 2010
Christina,

Is it possible to put part of your large down payment towards debt or something to raise your credit score but still have enough for a decent down payment? You may have already looked at this option... I'm only trying to help.

Good luck
0 votes Thank Flag Link Wed Oct 6, 2010
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