How Low Can You Go…Depends on Your Down Payment

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Here are some credit score/loan-to-value figures I just received from a subprime lender for "full doc" mortgages:

  • 90% – 580 Mid Score
  • 85% – 540 Mid Score
  • 80% – 520 Mid Score

The rates were not provided but I can assure they would not be attractive.  We’re probably talking double digits for a 3 year balloon with a prepayment penalty.   I strongly recommend using FHA over this type of financing.  (FHA is not credit score driven; you do need to have a good credit history over the past year). 

If you cannot qualify for FHA, then I encourage you to work with a Mortgage Professional to develop a plan to get on track for buying a home or refinancing.

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