Poor credit: can I get financing with 80-90% down?

Asked by creativeguy504, Dallas, TX Tue Jul 3, 2012

Started a new business a few years ago. Things were very bad the first two years, and my credit suffered. I am paying everything off, and now business is booming, and I have also been able to save quite a bit. My question is: can I get approved for a 130 K house if I put around 105-120K as a down payment?

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Don Tepper, Agent, Burke, VA
Tue Jul 3, 2012
No. And don't do it.

You're not going to find a lender interested in doing a $10,000-$15,000 mortgage. Most have a minimum around $50,000. It's just too much paperwork and hassle to do a mortgage for $15,000.

Second, if you've got $120,000 cash and you're looking at $130,000 homes, then make all-cash offers for $120,000. Use normal negotiating techniques, plus the extra oomph of an all-cash offer.

Or, if your business is booming (congratulations, by the way), then wait a few months. I don't know the timing involved, but if you've accumulated $120,000 in 2 years, that works out to $5,000 a month. Rather than worry about a $15,000 mortgage, just hold off on buying for 3-4 more months, and you'll have all the cash you need.

One other option: Make sure to check your credit today. Maybe, with your recent success, your credit isn't all that bad. In that case, you might consider putting 40%-50% down and getting a mortgage for the $68,000-$75,000. A lender certainly would be willing to do that, even with someone with somewhat weak credit. That'd leave you a nice cash cushion and a reasonable, manageable mortgage. In fact, that's the first thing I'd consider.

Hope that helps.
1 vote
Dallas Texas, Agent, Dallas, TN
Tue Jul 3, 2012
Recommend to speak with a mortgage broker determine if you can OR perhaps a small local banker

Contact my office today where I can show you many amazing homes work with your family specifications.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer

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0 votes
Kelly Fest, Mortgage Broker Or Lender, Austin, TX
Tue Jul 3, 2012
Find your local real estate investment club and they have members who will usually do deals like this.
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Tue Jul 3, 2012
I would just offer to pay 120,000 if you have that much, a seller is more likely to accept less than a lender is to lend any, good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes
Kenneth "Ken…, Agent, Dallas, TX
Tue Jul 3, 2012
It depends on how POOR your credit is. Call any lender of your choice and talk with them. They can pre - qualify you easily. They usually will not charge any fee for this, if they do it will be a small $15 to $20 free for pulling your credit report. No lender can fix your credit, stay away from anyone who says they can, THEY CAN NOT. With the loan amount being so small you might find it hard to get a lender who will take the loan even with such a large down payment and if they do take the loan the interest rate will be very high. If you can put so much down, just pay cash for the whole thing.

You may have to wait and just build your credit again. Getting a home loan now is tough even for people with good credit.

Hope this helps.

Good luck.

0 votes
Dixon Wong, Agent, Dallas, TX
Tue Jul 3, 2012
Hi there,

Yes you will be fine.

I have a few lenders that I worked with should able to help you.

You can email me at dixondfw@gmail.com and I will email you their contact.

0 votes
John Juarez, Agent, Fremont, CA
Tue Jul 3, 2012
I think you will find that most mortgage lenders have little interest in making loans as small as the amount that you will need given the figures that you provided.

Why not:

Save more and pay cash?

Buy a less expensive house and pay cash?
0 votes
Elizabeth Mo…, Agent, McKinney Tx, TX
Tue Jul 3, 2012
Most likely there are lenders who can help.
Please contact me at your convenience & I will email you contact information for mortgage lenders who will be happy to reivew your situation & guide.
0 votes
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