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I have 20,000 for down payment for a home, in today's market do you have to have a high credit score?*

I have 20,000 for a down payment on a 200,000 home 10% - is it possible or do I have to have perfect credit - or put 20% down? Any help would be appreciated!! I make 85,000k no bankruptcy, credit score 620. I have paid off ALL credit cards to 0.

Answers:

1) ..... I'm not going to say you need perfect credit but it will need to be decent to qualify for a prime loan

2) Im sure you will be able to find a company that will finance you. The question will be is the loan you qualify for good. That really all depends on what exactly on your credit file. Circumstances that will determine your exact rate and down payments are if you have filed Bankruptcy? If so how long ago and what chapter did you file? Any public records? Your debt to income ration - What is your monthly income versus your monthly debt obligations? Repos? Credit balances? So im sure you will qualify for a loan. it just depends on what type and whether or not its worth it to you.

3) You'll qualify easily for a loan, but do shop around a lot given the messiness of the current market. Rates can vary a great deal from lender to lender.

4) There are several lenders out there that will give you a loan with the down payment you have, regardless of the credit score. The real trick is to find one with the best rates available to you. Check out your local banks, especially the one you personally bank with, and ask but do not apply until you find the one or two with the best package for you. If you are working with a Realtor he/she may have a couple of other suggestions. Another tip, look for a fixed rate, not an adjustable rate or ARM. The adjustable looks good at first, but in the long run it will cost you more money or lost of the home.

5) Unfortunately, you don't have good credit. 650 is only fair. Plus, you only have 10% downpayment on a house, lenders are looking for people who can put 20% down to get the best rates. You would be better off by paying your bills on time this year, saving more money, and wait for the housing correction to run its course.

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