kimo77

Mortgage with large down payment

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My situation is a little unique. There is a possibility of a commercial buyout of our subdivision. If it were to go through, we stand to make a good bit more than our house is worth. We should be able to payoff our mortgage plus some outstanding debt and still have a good chunk of cash left over to use as a downpayment on our next house.

Currently, our credit is very poor and I'm sure we would find it difficult to get a new mortgage to purchase a new home if we were putting 5%, 10% or even 20% down. My question is what is the impact of putting 50% or more down? Does it negate the credit sins of my past?

I'm just curious to know what I might be up against should the deal with the commercial developer move forward. Any input would be greatly appreciated.

Kimo

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Through my credit union with a 20% down payment I was able to get a mortgage with 7%. Two months out of BK7 that is. They are out there. The bigger down, the better.

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I am sort of in the same situation -- just that I've owned my house since I was in my early 20's and now am in my mid 30's. The house has gained so much value since then.

I've been looking at several different options. My credit is alright -- not the greatest, not the worst. I'm able to put down at least 50%, and possibly as much as 75% depending on the cost of the home. Brokers I have spoken to said this was a huge positive for me -- only thing holding me back is that I am self-employed. I am working on getting over that hump right now.

As far as I can tell, the more down the better.

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A good rule of thumb is that anytime you can put down 35% or more on a purchase you can get a loan. Even with 2 120 lates and 2 60 day lates in the past year-to give you an example of how much of a difference it makes.

Also, if you have 20% down and a low score (like 500) and you are self employed you can get a loan.

Charles

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