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I have a low score, but I have 20% to put down on a home. Do I have a chance?

I have a low score, but I have 20% to put down on a home. Do I have a chance at buying the home that I am looking at?
  • July 22 2013 - Batavia
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Answers (4)

Hi!  Ok, first for other readers, I am licensed in Ohio only.



User 558018, I know there are other lenders out there like me who offer this program. It's not only about the money you put down. Where did the money come from, did you save it up yourself or was it a gift/grant/loan? These are questions I have to ask or information your credit report will show.  Is your mid score over 530? Have you had any new collections/charge offs/judgments or late payments to creditors in the last  6 months? How about the last 12 months? Can you verify your housing history (cancelled checks if renting from private individual)? I could go on and on with the questions but here's the basics: no late payments in the last 6 preferably (for better odds of closing) last 12 months; housing history verified. If you don't have creditors you pay who report to credit then we can build non-traditional if we cannot build 3 non-traditional accounts with a clean 12 month history then we should be able to make it work. Instead of putting 20% down we'd put 10% down (because you'll pay mortgage insurance either way on an FHA loan, which is all you have an option to qualify for). We'd make sure you kept 10% in the bank (hopefully equally 6 months reserves). If this sounds like you, you should be able to qualify for a mortgage. If not, then work on the items I've mentioned as they are the biggest reasons for denials. If you have add'l questions, I'd be happy to help. Best wishes, Kim Lawson, (licensed in Ohio only) Licensing and contact information can be found on my profile.
  • July 22 2013
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What is your " low score"? No one can answer your question without knowing your mid score.
  • July 22 2013
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Profile picture for sunnyview
It depends how low your score is. If your score is below 580, you will have trouble finding a lender even with 20% down. Wells Fargo did have a program that accepted lower scores with a higher down based on a sliding down payment depending on your score.
  • July 22 2013
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Profile picture for user1598751
well, you could try applying for a loan instead of asking random strangers on the web...

just a thought...
  • July 22 2013
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