First Time Home Buyer in NY w/ bad credit but large down payment needs help!!!?

my fiance and I are first time homebuyers with horrible credit (me=555, he=559). We like a house and the asking price is $89,000. We have $20,000 for a down payment. We have a combined income of $60,000. Will a lender look over bad credit with a large down payment? This house is located in Niagara Falls, NY. Would a co-signer help us in securing a lower interest rate? Do you thik we would qualify for any first time homebuyer programs?

12 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    FHA usually goes down to 500 scores.

    they require 3% will have no problem getting that loan.

  • 1 decade ago

    A year ago, you wouldn't have had a problem as there were "stated income" loans and loans for risky buyers. All of that has changed since the mortgage melt-down. No lender is willing to take any risk in this stage of the game. Also, their loan conditions are very strict right now. They are taking the appraised value of a home and knocking the appraisal down so you are required to put more cash into the deal. That gives them a little bit more of a buffer. What I'd suggest is that you get a co-signer with a FICO score above 680. They will be the primary on the loan. In the meantime, FIX YOUR CREDIT. Once you and your fiance have your FICO scores above 630 each, you can refinance in your own names and let the co-signer off the hook.

    Check out The OC Coastal Blog for current mortgage information at

    Good luck

  • Anonymous
    1 decade ago

    Don't lose hope if you're looking to buy a home. There are so many different ways to fund a home now, just about anyone with any kind of credit can get into a home, regardless of credit situation.

    Of course, some will cost you more money in the long run, but a home it's still one of the best investments that you can make, so, in many cases, it's worth it, especially for the first year of ownership.

    You should shop around, and ask different lenders what kind of programs they have, and if they can help. Try to find a lender that specializes in bad credit mortgages. You can find some bad credit mortgage lenders listed on this page on and off:

  • Anonymous
    1 decade ago

    Probably not in the market today. $20K is a substantial down payment but not a huge one. It's only 22% of the asking price and I assume that you will also have to use some of this money for closing costs or add them to the loan which will decrease your percentage. You might qualify but your score under 600 hurts badly. Look at your credit report and see if there are things that you can do to raise them quickly, ie. a small judgement that you can pay off might be worth 25 points. Making sure your credit card balances are less that 20% of the limit would be worth points, etc.

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  • Chris
    Lv 6
    1 decade ago

    With that large of a down payment you definately have some options! If you can go full doc (ie prove your income with W2's and pay stubs) you should be able to get DU approved through a lender like SunTrust.

    What that means to you is that you very well could get approved for an awesome loan on a program that's not FICO driven if you have enough other postitive factors. Find a broker you trust - ask who your friends and family used in the past - and sit down to discuss your options. In this current market each and every loan program must be customized for each borrower - it's the only way to get accurate information.

    Good luck and congradulations on buying your first home! :)

    Source(s): I'm a partner in a mortgage brokerage and a senior mortgage specialist.
  • 1 decade ago

    I would check with the lenders in your area and ask about first time buyer programs. Most states have bond programs to help low to mid income first time home buyers. Go with a big bank or lender (one that is known throughout the country, like Wells Fargo). Credit is an issue but other factors have a large influence like debt to income ratio, cost of the home, down payment, etc. With any luck you should be fine.

  • 1 decade ago

    With credit scores that, 20% down should get you in the door. There are loans that dont look at credit score, so your capacity to pay will work to your benefit. The first-time homebuyer program I went through required a 600 score, but you won't need it since you have over 20% down. Unless you have some tax liens or something, you can defintiely get a loan.

    Source(s): mortgage broker
  • 1 decade ago

    Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing office<!--in the county in which you reside.If these offices don't have the programs you are seeking they will be able to tell you what agency in their jurisdiction has them.

    Once you have located the first time home buyers program and who operate it, that agency normally have a list of lenders, banks-->mortgage brokers or institutions that are authorize to administer the program. These agencies are normally listed on a pamphlet.

  • call a mortgage broker. It was possible before, but things have changed. You should be able to increase your credit score by paying some debt (unless you have an enormous debt load). Follow their advice, and do not listen to some yahoo on Yahoo.

  • 1 decade ago

    I think since you have a big down payment it would help alot. Money talks! I think a co-signer will help a lot as well.

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