hopeful wrote:I heard a subprime lender say that he would approve anyone with any credit score and no income documentation as long as he had 30% downpayment. With 20% downpayment, he'd approve just about anyone else. Truth is, anything below 600 is now going to require a large downpayment and usually means you can only get an ARM, not a fixed rate.
I think with 25% down, most of the risk is eliminated. If the mortgage company forecloses on the home, then they can sell it and wont lose much if any money.
dazednconfused wrote:I am not trying to stir the pot, nor am I judging, however, I find it hard to believe that with a score of 500, a repo and a foreclosure that someone could get a loan. However, I am not a mortgage professional, so I defer, but again, for curiosity's sake, what kind of interest rate would that be????