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Just curious...if you put 100,000 down with bad credit, do you think someone would finance you?

friendly argument with the hubby..lol

 
Musicmom80

Asked by Musicmom80 at 4:56 PM on Mar. 28, 2011 in Money & Work

Level 36 (80,428 Credits)
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Answers (12)
  • I say, yes. The bank is going to take your $100k down payment and charge a high percentage for the $60k and think to themselves that if you default, they are going to definitely come out on top in this deal.
    slw123

    Answer by slw123 at 2:44 PM on Mar. 29, 2011

  • Even with that size of down payment (which the higher the down payment someone can pay on big purchases like that.........the better in the long run).. You would still need to finance $60k, with bad credit and the new mortgage rules/credit rules that have been implemented since the "meltdown", it may not be possible to get a mortgage for that last $60k. Depending (of course) on how bad the person's credit is, what their income to debt ratio is, and what type of mortgage they are trying to get.
    pixie_trix

    Answer by pixie_trix at 5:02 PM on Mar. 28, 2011

  • All the bank cares about is getting their money back. They have to take into account how likely you are to pay and how much they'd be likely to get for the house if you don't. Of course, with good credit, they know you'll pay. With bad credit, it has a lot more to do with how much they'd get at auction, say. So if you put enough money down, then with the high interest rates you'd be paying and the reduced cost of repossessed houses at auction, if they feel confident enough that they'd get their money back, they would finance you.
    DragonRiderMD

    Answer by DragonRiderMD at 5:12 PM on Mar. 28, 2011

  • Depends on what the total amount you want to borrow is.... As a rule, the more you put down percentage wise, the more likely you'll be approved. Of course, with bad credit, your interest/points rate would be bad.
    Anouck

    Answer by Anouck at 4:57 PM on Mar. 28, 2011

  • It depends. That's alot of equity invested in the home from the get-go, so lenders are more willing to work with you. Your loan rate would probably still be high due to the credit though. On the other hand, there are lenders that finance strictly off of your credit score, regardless of the amount you put down. But I'd be willing to bet that you could find financing with that type of down payment.
    KennsWifey

    Answer by KennsWifey at 5:00 PM on Mar. 28, 2011

  • I have bad credit(650) so does my husband and we put 10k down on a 220k loan. So my answer is yes!
    Anonymous

    Answer by Anonymous at 5:04 PM on Mar. 28, 2011

  • I don't consider 650 as bad credit. We are in the 500s and would love to have a number like that. I'm a different anon than above.
    Anonymous

    Answer by Anonymous at 5:38 PM on Mar. 28, 2011

  • No matter the down payment you're bound to find somebody somewhere that will give you a loan for the house. Now the terms and conditions of the loan might not be very favorable. For example, you might borrow say $60,000 at 255% APR that can be adjusted on a whim. I personally wouldn't sign up for that- but the answer is, yes you could get the loan, you might not want it though.
    Erica_Smerica

    Answer by Erica_Smerica at 8:10 PM on Mar. 28, 2011

  • Down on what? What is the total price? What would be left to pay off after that down payment?

    pixie_trix

    Answer by pixie_trix at 4:57 PM on Mar. 28, 2011

  • say 160,000 on a home..
    Musicmom80

    Comment by Musicmom80 (original poster) at 4:58 PM on Mar. 28, 2011

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