Does your credit score mean a lot if you put a certain percentage down on the home you want to purchase?

Asked by Christie January, Saginaw, MI Sat Feb 7, 2009

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Dp2, , Virginia
Sat Feb 7, 2009
Although your credit score is important, the degree to which it will affect the terms of your financing depends on your exit strategy and the type of financing. For example, if you were to purchase several properties for rentals using a commercial, blanket mortgage, then the lender will pay less attention to your credit score and greater attention to the income of each property. Also, if you were to purchase a new home using seller financing, then most likely your credit score won't directly affect the terms of your financing. On the other hand, if you were to purchase a property using conventional financing, then your credit score and size of your down-payment will determine the terms of your financing.
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David Chambe…, , Saint Petersburg, FL
Sun Feb 8, 2009
I created this link the other day for an agent, it shows the adjustments made to interest rates by a lender based on LTV (basically the down payment) and credit score. From the chart we can see that both are a factor in the types of mortgages listed.

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Ken Gettinger, Agent, Fort Walton Beach, FL
Sun Feb 8, 2009
Yes your credit score is very important to show the underwriter that you are capable and willing to pay back the loan in a timely manner. Your score will affect your interest rate. Have a good downpayment definitely helps and also a good job history and income to debt ratio. All these things combined matter in the final decision.

Good Luck and have a great day,
Ken Gettinger
Sea Sotheby's International Realty
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Feb 7, 2009
credit scores mean everything no matter you are purchasing, homes, cars, furniture, or applying for job. Even if you place a large downpayment interest rates are still based on credit scores.
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Pam Miller, Agent, Pearland, TX
Sat Feb 7, 2009
Your credit score is definitely an important factor unless you are paying cash for a home. A good credit score can get you a better interest rate. There is a great 1st time homebuyers tax credit out right now.
You should visit with a loan officer for detailed information.
Happy house hunting!
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Karen Wenzel,…, Agent, Brookfield, WI
Sat Feb 7, 2009
Your Credit score is becoming more and more a factor in any financing. There are different programs that may allow you to put less money down, but there may be additional costs depending on what your credit score is. I have seen some mortgage programs that do require a larger down payment if the credit score is below a certain point.
This is best left to a mortgage lender that can give you a clear picture of what YOUR options are- since this is definitely not one-size-fits-all.

All the Best To You!
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