If I am putting 30-50% down on a home purchase, how will my subprime credit affect mortgage approval?

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  • Anonymous
    1 decade ago
    Best Answer

    You have have a higher interest rate than someone with a higher FICO score. All other terms should remain the same.

    -MM

  • 1 decade ago

    With a subprime lender, your rate tends to be a bit higher than if you had a higher credit rating. Since you are putting such a large amount down, then 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 definitely have a plus on your side because you are putting money down.

  • 1 decade ago

    Yes, it will. Even though you have placed a large amount down on the home, you still have a considerable amount of debt that needs to be financed. If you haven't done well with credit in smaller amounts, the bank is going to look negatively at your request for a larger amount. Not to say that you won't get approved, but you will have a harder time

    Source(s): TM
  • 1 decade ago

    With that typoe of down payment, your credit score should not affect you much. When you go to get a mortgage start by saying you have 20% to put down and then when they give you their lowest rate tall them about putting down the extra money. If you put down 50% you can do a lot.

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  • 1 decade ago

    If you have that much cash, maybe you should consider paying off some of your other dept to improve your credit score. It is ok to have some debt, but too much will lower your raiting.

    The Credit score 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 score.

  • 1 decade ago

    Based on my understanding of how credit factors into the equation, I think 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.

  • Anonymous
    1 decade ago

    That is what the banks want to see, a large down payment. Try FHA for the lower rates......

  • 1 decade ago

    I have no idea.

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