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Large down payment but low score

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cha04039
Established Member

Large down payment but low score

my parents and I are buying a house together. Combined we have 150k in cash to put as a down payment. Our scores are about 550-570 we are looking at a house in the 300-350k range. With such a large amount available for downpayment do you think we could do a loan or should we wait it out and keep raising scores?
Message 1 of 4
3 REPLIES 3
foofighter74
Established Contributor

Re: Large down payment but low score

Why are your scores low? If you have high credit card balances, pay them down significantly and your scores should go up.  If you have a lot of lates, and other derogatory items, then clean those up.  The cash on hand won't mean much unless you clean up your credit reports.

Message 2 of 4
webhopper
Moderator Emeritus

Re: Large down payment but low score


@foofighter74 wrote:

Why are your scores low? If you have high credit card balances, pay them down significantly and your scores should go up.  If you have a lot of lates, and other derogatory items, then clean those up.  The cash on hand won't mean much unless you clean up your credit reports.


In some cases, borrowers with low scores and high amounts of cash can get a "hard money" loan from private investors...  the trick is to find these types of lenders.  You do end up paying higher rates.

FICO 9:
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.

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Message 3 of 4
foofighter74
Established Contributor

Re: Large down payment but low score

Yes, that's true.  And certainly an option.

Message 4 of 4
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