Charles, Another option would be to run your credit, talk to a competant consultant about how and which bills to pay off / bring current; then do a "rapid rescore" on your credit to see if it has improved enough to get traditional financing!

If you have a lot of credit card debt for example, you could pay it off (or down) and put less down on your home and save a ton of money on payments (i.e. trade in credit card debt at 9.9 - 29.9 percent for a mortgage at 5.9)!

Not all lenders are created equal so the key is finding ones that can get creative instead of counting on an automated approval since your loan may take some working on. I have taught "First Time Home Buyer' classes for over 10 years, so would be glad to assist in setting a game plan.

Regarding your credit, yes you need to have it checked and to know your scores. If your scores are below 580 (Idaho Housing) then you will not be able to buy a house with any rgular rates.
Many times buyers who have credit issues can improve their scores with a "rapid rescore" I can do this on my lap top. If you have incorrect entires on your credit (for example) these accounts can be fixed and repull your credit with, hopefully, with higher scores. You need to have your credit issues BEFORE you start shopping for a home.
Do you have any family members who can help you out with qualifing? That could be a wy to go. With 40% down they could buy the home as a rental and a year or 2, after your credit has improved, you could refinance the house into your name. You need a trusted advisor. Below is my link to order credit.

well, what do you mean by great credit..?? If you would have mentioned your credit score then you would have got to the point suggestions... Best bet for you will be to discuss your situation with local lenders... They can provide with all the necessary information you are looking for...

All the best

Definitely, but selectively at the same time! Many lenders are extremely conservative right now, but the good thing about living in America is it is a capitalist society so we just have to team up with lenders that understand the big picture. If $225K is really the fair market value in todays market, there are still lenders (albeit much fewer) that would be willing to lend with a 40% down.

I don't want you to post your personal finances on this site; however if you are not already working with another Realtor, I would be glad to walk you through some of the many options available. I have over 18 years experience in this area.

Jim Paulson
Owner/Broker - Progressive Realty Corporation

Charles,

I believe it is always worthwhile to check things out with lenders. The old saying "if you don't ask, the answer is always no" is really true. You won't know what situation you are in or what it will take to get you into a good situation until you ask those that can give you good straight answers. Take the time to see what you can do. You may be surprised. If you would like contact information for some lenders and then someone to help you make that purchase, I would love to help. You can contact me at 208-484-8384. Good luck.

Sharon Walker

Charles,

I understand your frustration with the tightening guidelines that prevent people like yourself from getting a loan. There is help available though, and I work with an excellent credit restoration specialist in Eagle who can help. His name is Nathan Cooney with PointGain Now at 208-571-9909 (cell.) When he's helped you raise your score to at least 580 then please give me a call and I can help you qualify for the loan.

Lori Hosac, Waterstone Mortgage
(208) 794-7768-cell; lhosac@waterstonemortgage.com

Hello Charles,

Just about every agent will know a "good" lender that can go over your options with you. I have worked with a legitimate Local company who can remove negative items on your credit report. They have had great success with dramatically raising credit scores. The local company does charge a reasonable fee. However paying a little money now will end up saving you thousands of dollars worth of higher interest rates. I am not affiliated with this company. As I Licensed agent I just feel that if I can help you get into a house, then that is 1 less house on the market and 1 small step towards a healthy market. Let me know if you would like their contact info. Jason Mayfield 208 272-0554

Charles,

In the current market where banks are afraid of scrutiny they are having a harder time making decisions based on common sense. If your perception of your credit is not accurate, and you really don't have horrible credit the 40% down may be a compensating factor. You may have other factors, like a a long term employment, or a long term rental history with a landlord that will give you a good reference.

I can recommend some terrific lenders that you could speak to that will allow you to succeed. Another option might be an owner carry or lease purchase with the type of down payment you have many a seller will consider something. Let me know how I can help.

Charles,

It can't hurt to ask. You could probably no doubt find hard money with that kind of down. I'd say you need to consult a mortgage broker and see what they have to say.