Posted on: 30th Aug, 2012 01:15 am
I am trying to improve our credit, but it takes time. With my credit scores being rather low and my wife's a little lower I realize we probably couldn't get a mortgage. Does having a good down payment and good collateral counter the bad scores? We had our property appraised and it is worth very close to the same amount as our house will cost.
Hi Norman!
Welcome to forums!
A good down payment and good collateral won't lower the negative affects of having a bad credit. Unless you have the required credit scores, the lender won't be ready to give you a loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
A good down payment and good collateral won't lower the negative affects of having a bad credit. Unless you have the required credit scores, the lender won't be ready to give you a loan.
Feel free to ask if you've further queries.
Sussane
Above poster is correct. I would like to add, if you have a 620 or so credit score, and you can put down 20%, then you should be able to get a loan. If you have similar credit, you can go FHA with 3.5% down...FHA must have no open collections, so if that is the case, get them paid...Putting larger down, having 12 months reserves, a lower debt to income ratio will all be considered compensating factors, which will strenghten your loan application.
A ggod down payment and good collateral will not improve your credit score. But, these can influence the lenders to offer you the loan.