Q&A: Am I likely to receive a loan on a house if I have no credit established, but pay a large portion up front?
Question by Oliver: Am I likely to recieve a loan on a house if I have no credit established, but pay a large portion up front?
For example: if the house were around 90k, and I placed 40k down, would I be likely to receive the loan for the remaining 50? (30 year fixed)
Best answer:
Answer by Ocean Queen
With a big down payment like that you can get approved, but if your credit is in bad shape you can be looking at higher interest rates and higher monthly payments. Make sure to ask all these questions prior. The market is slow so it can go either way. Good luck.
Know better? Leave your own answer in the comments!
No
what is your annual income?
how long have you been working at current job?
no credit history at all, is very unlikely to get approved? how does anyone save that much money with never having had credit? did you pay cash for all your cars? never had a credit card?
as long as you income is decent and since you are first time home buyer your states first time home buyer program if you qualify is a great deal. but anyone should accept you
Actually, if you have NO credit, you can get approved for a mortgage. If you have BAD credit, that’s an entirely different story. That’s the good news.
The bad news is that it’s going to take a lot more work. You’ll have to shop around several banks before you find one that does what is called “manual underwriting.’ This is where they actually look at your application and use that to make a decision. Many banks will simply pull your credit report, and look at your score. If your report returns a zero score (or actually “not enough information to generate a score”) they won’t bother with you.
So, what you need to do is go to your bank, and ask to speak with a loan officer. Explain that you are interested in buying a house, and you have a large downpayment, but you have no credit history. Ask if they can help you. If not, go to another bank and try again. Eventually, you’ll find one that will help you.
Now, with all of that said, you need to realize something. Your credit history is a very small part of getting approved for a mortgage. There are so many other things that have more of an effect on whether or not you get approved. For example, your income needs to be over a certain percentage of the cost of the home, you need to have been employed for a certain amount of time. These are just two of the things the are looked at.