Eagertobuy, Home Buyer in Monticello, IL

What are the chances to get approved through the bank on down payment of 5%?

Asked by Eagertobuy, Monticello, IL Tue May 31, 2011

First time home owner with great debt to income ratio but not a credit score of 620. Can't afford to put 20% down on a home, Agent is suggesting asking the bank board for approval with just 5% down. What are the chances of this being accepted?

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5
Michael Cline, , Chicago, IL
Tue May 31, 2011
Eagertobuy,

We can provide a mortgage as long as you have at least a 600 credit score. There is no need to put down 20%. Due to the lower scores, you may have to jump through a few extra hoops to get approved, but it's better than waiting months and months for the credit scores to improve on their own. I can let you know if you'd be approved within a few minutes. If you'd like to know for sure, feel free to me a call and we can discuss. Thanks and good luck.

Mike. 708-257-7058
mcline@waterstonemortgage.com
0 votes
Eagertobuy, Home Buyer, Monticello, IL
Tue May 31, 2011
Our debt to income ratio is 13%, which the bank states is very low. Credit score is low based on past mistakes. How low will it take to raise my credit score?
0 votes
Annette Levi…, , New York, NY
Tue May 31, 2011
You should be applying for a FHA mortgage. It only requires 3.5% down. You may be dinged (pay higher) for a low FICO score. If your bank does not do FHA mortgages then look for one that does.
0 votes
Molly Hay -…, Agent, Columbus, OH
Tue May 31, 2011
My lender offers a 5% down program but you need to have a 720 credit score or higher. You may be able to find a lender that can do a FHA loan with that score but you will need to pay down some debts. FHA debt to ratio income requirements are 43%. If nothing else, pay off some debt and wait for your scores to increase. That may only take 2 months to increase to 640?!?! Just a suggestion! Good Luck
0 votes
David Burnham, , Washington, DC
Tue May 31, 2011
There are lots of lenders that will give you a loan for only 5% down, but if you have high debt and a FICO score below 620, you will probably struggle. It might be a better option to take a fe months, pay down your debt, and square off your credit a little. You will find it easier to q qualify and probably get a better rate.
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