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what happens if you have over 65,000.00 as a down payment but your credit is horrible?

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February 04 - High Point
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It would be wise for you to use some of that money to fix your credit, then purchase a home.

You'll save more money on interest in the long run!
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July 24
Profile picture for PrestonGarrison
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There are still loans you can do with large down payments that don't take your credit into account.  The rates aren't going to be as good, however the fees on them are usually lower.  You could get in the house with one of those loans, have someone repair your credit.  then refinance into a nice low 30 year fixed loan.  We do this sort of thing all the time, for credit challenged borrowers, with good money.

 
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July 24
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Nope your response was the first since February 4th.  Seems like you just want to be on top of a North Carolina thread.

Oh, and you still have to qualify for 'assumable' mortgages. They don't just transfer over as long as the new borrower has a pulse.  Carry on.
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July 24
Profile picture for natewolf
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But another agent posted a response today and brought it back to forefront.

Just wanted to chime in case they still had issues. 6-months can change a lot. And maybe they're ready to purchase now.
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July 24
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Question is from 6 months ago Nate.
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July 24
Profile picture for natewolf
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Don't overlook "Assumable Mortgages" they are making a comeback!

Depending on the purchase price of the home, you should be able to qualify. The main factor is not always the score, but the factors affecting your score. So, WHY is your score in the 500s?
Some of your $65k may best be used to improve your credit worthiness, not just your score. So, what's on your record? FHA is not credit score driven, but it is "on-time payment" driven-- so keep that in mind too.
Post some more info on your situation and we will give better answers-- or contact me directly if you want some more help.
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July 24
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Ouch, that is pretty low. 

What is the purchase price of the house?
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February 04
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not really sure.  I know that my score is atleast in the 500's.  
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February 04
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Your definition of horrible credit, may not be as bad as you think.  What is your score and as Ashley asked, your loan amount.

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February 04
Profile picture for Ashley Blanton
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Well, what is horrible credit? And what is the purchase price of the home?
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February 04
most subprime programs and lenders are gone today, and your down payment is more a function of the percentage of the purchase, rather than the amount. You may find a private money lender (AKA hard money) with more than 30% down payment, or may see if the seller will finance you with a down payment, until you get your credit in decent enough shape to refi FHA.
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February 04
 

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