If I am putting 30-50% down on a home purchase, how will my subprime credit affect mortgage approval?
Answers:
Yes, it will. Even though you own placed a large amount down on the home, you still have a considerable amount of debt that requests to be financed. If you haven't done well with credit within smaller amounts, the bank is going to look negatively at your request for a larger amount. Not to say that you won't draw from approved, but you will have a harder time Source(s): TM
That is what the bank want to see, a large down payment. Try FHA for the lower rates...... Source(s): http://1stmdhomes.com
With a subprime lender, your rate tends to be a bit higher than if you have a higher credit rating. Since you are putting such a large amount down, afterwards you shouldn't really have any problems finding a lender depending on how low your score is. Subprime lenders are moving away from towards 100% financing, so you patently have a plus on your side because you are putting money down.
With that typoe of down payment, your credit rack up should not affect you much. When you go to get a mortgage start by proverb you have 20% to put down and then when they present you their lowest rate tall them about putting down the extra money. If you put down 50% you can do abundantly.
You have have a difficult interest rate than someone with a higher FICO ranking. All other terms should remain the same.
-MM
I have no impression.
Based on my understanding of how credit factors into the equation, I regard your credit rating determines what type of interest rate you will get. Also, it may determine which loan programs you qualify for and which ones you don't.
If you have that much brass, maybe you should consider paying off some of your other dept to add to your credit score. It is ok to have some debt, but too much will lower your raiting.
The Credit ranking will affect the interest rate that you get. Don't be fooled into paying down the rate by paying more "points" it is better money spent to lower your debt ratio to improve your credit ranking.
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