Home Buying in Inman>Question Details

Brooke Mulaw…, Home Buyer in Inman, SC

If I do not have a great credit score, can I still buy a home with a large downpayment?

Asked by Brooke Mulawka, Inman, SC Wed Aug 17, 2011

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Actually, one does not have to be "in state" to give an informed answer. Conforming guidelines are not state specific. An out of state licensed MLO that is up on guidelines is worth 10 in state RE agents when it comes to questions of mortgage financing.

Therefore, in general, increased down payment will not negate bad credit. One needs to meet minimum credit guidelines regardless of loan to value. An example would be Fannie Mae requiring a 620 credit score for conforming financing. You can put down 90% and still be denied because of credit score. This will be true for any type of traditional financing such as conforming conventional or FHA.

Regarding non-traditional financing, then anything goes and you may find seller financing or private money that would certainly take your down payment into consideration.
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1 vote Thank Flag Link Wed Aug 17, 2011
Hi Brooke,

You have 2 great answers already, BUT they are out of state. You need to talk to a local mortgage person and I have some great people for you to talk to. If your downpayment is over 20% of sales price, there could be some options, there is no giving a specific answer until you make that appointment and your credit history is reviewed. I would love to help you, so please don't hesitate to call me for help.

Sincerely
Berniece Hurley
864-415-3681
0 votes Thank Flag Link Wed Aug 17, 2011
There are other factors besides credit that determine qualification, therefore visit with any loan officer; after reviewing your overall financial information a determination can be made; if you don't yet qualify, your loan officer may offer great suggestions as to what needs to be done in order to be eligible in the near future....
0 votes Thank Flag Link Wed Aug 17, 2011
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