Home Buying in 75216>Question Details

Doris Lloyd, Home Buyer in Orlando, FL

MY QUESTION: why is it that if you have good, no better then good credit you have to put more money down then somone with very bad credit..

Asked by Doris Lloyd, Orlando, FL Tue Aug 13, 2013

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Susie Kay’s answer
Doris,

Talk to a few lenders and see what options they provide to you. That's the best thing to compare as everyone situations is different.

Let me know if you need a lender or two to help you.

Susie Kay, Realtor®
GRI, CHMS, SFR
Residential/Commercial/Investment
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United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
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0 votes Thank Flag Link Tue Aug 13, 2013
BEST ANSWER
You are comparing APPLES with ORANGES:
There are many different Banks and Lending companies out there, with different requirements and policies.
There are many PROGRAMS out there; FHA, FHA 203, USDA, VA, Conventional Homepath, HUD, etc.
There are many different details in each persons Credit Report; details that you would not have access to: You cannot compare your Credit to someone else's.
You should be comparing 2 or 3 Lenders; what each lender can do for YOU. Look at the GFE's.
1 vote Thank Flag Link Tue Aug 13, 2013
Thank You . I appericiate that.
Flag Tue Aug 13, 2013
Each file is different depends on lender specifications. No 2 families are the same when they qualify for any loan

You would to compare item by item than just a general overview. Plus understand the "back of house" how everything is processed to qualify a family for any loan

Lynn911 Dallas Realtor & Consultant
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972-699-9111
http://www.lynn911.com 100's of Dallas homes listed for sale or lease

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1 vote Thank Flag Link Tue Aug 13, 2013
Thank You. I appericiate it.
Flag Tue Aug 13, 2013
Hi Doris, I am a mortgage Banker and these questions come up often when working with my clients. If you are purchasing your home as a primary residence, you should qualify for programs such as FHA, VA or USDA, which require very little or no down payment. These programs are more flexible on credit. You need to talk to a lender in your area who offers these programs. If you are purchasing an investment home or a second home, a much higher down payment and higher credit scores are required.

Thank you,
Cesar
The MortgageAbility.
0 votes Thank Flag Link Sat Aug 17, 2013
Hi Doris,

There are a lot of factors on downpayment amount. Some people just simply putting more down to get a lower rate.

If you need a lender to compares rate with. Please feel free to contact me

Dixon
Realtor
http://www.findyourtexashome.com
0 votes Thank Flag Link Tue Aug 13, 2013
It all depends on your lender and mortgage company. Things have changed very big the last few years. People with poor credit can not longer or almost impossibly able to buy homes even with larger down payments.
0 votes Thank Flag Link Tue Aug 13, 2013
This question should be directed to your/a lender. Everything is credit score driven and suppliers of credit have guidelines that must be adhered to. Moderate exceptions such as medical may be available but will require verifiable conditions. Recommend checking with Bank America, Wells Fargo or Chase Bank.
0 votes Thank Flag Link Tue Aug 13, 2013
The down payment is determined by many factors: loan type, credit score, and debt ratios are the most typical. Someone with lower credit might still qualify for the FHA loan, and put 3.5% down, if they meet the debt ratio requiements. If you were going conventional, or perhaps were not meeting qualifying ratios for the FHA loan, your down payment would be higher in order to meet the guidelines of that loan type. Without knowing the specifics of your situation, we can't really say much more.

Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans ALL Over Texas!
0 votes Thank Flag Link Tue Aug 13, 2013
What you are saying is not true. If you are looking at FHA there is virtually no difference between borrowers of excellent credit or good to fair credit in what they can obtain. Now on conventional loans your credit is a much bigger factor and a borrower with fair to marginal credit would be required to put more money down as compared to a borrower with good credit and a low debt ratio.

Hope this helps you understand the process a little. The amount of down payment will vary depending on the loan program and how that program evaluates a borrowers credit and debt obligations.



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Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com

(If my answer is helpful indicate by THUMBS UP or BEST ANSWER. Thank you )
0 votes Thank Flag Link Tue Aug 13, 2013
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