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Does a 20% down payment guarantee a home loan

by ILBarrett72 from , Texas. Sep 25th 2013 Reply


Joel Lobb (kentuckyloan)
#3 ranked lender in Kentucky - 192 contributions

No it does not. They will review your credit score, income, and other assets to see if you qualify along with an appraisal and title work.

Sep 25th 2013
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John Moran (TheHomeMortgagePro)
#8 ranked lender in Arizona - 658 contributions

20% down is a strong down payment, but your complete credit profile and the ability to repay the loan will be looked at as well as title and appraisal. A borrower with 5% down, great credit, solid income and a satisfactory property will get approved all day long by just about any lender, while a borrower with 20% down and poor credit or insufficient income will have a difficult time finding a lender at all.

Sep 26th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,588 contributions

Putting a large down payment will sweeten the deal, but it's no way a guarantee of obtaining financing.. instead your complete profile is looked at and analyzed.. income, debt, credit history, ratios, etc.. everything is looked at... I hear this a lot from people with bad credit.. if I put 50% down, the bank would be stupid not to finance me.. WRONG... the bank is in the money business, not the real estate business.. When a bank has to foreclose, they will lose money most every time.. and if the home sells for more than what's owed in foreclosure, the law says they have to give that money back to the owner.. they don't get to keep it, so there is no benefit to them taking a chance on someone who has a proven track record of not paying their bills on time.. The lender would benefit the most if you make your minimum payments on time every month.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Sep 26th 2013
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Gregorio Denny (GVDenny)
#256 ranked lender in California - 380 contributions

Not even close. There are so many other factors in play including income, assets, employment and credit. See a licensed loan officer in your state for qualification.

Sep 26th 2013
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Pete Bass (PeteBass)
#31 ranked lender in Connecticut - 476 contributions

No- You will need to be fully qualified- from you credit, Income , assets, etc...when you work with your lender of choice, they will pre qualify you as to whatyou can afford and guide on the path of home ownership

Sep 26th 2013
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Richard Woodward (RichardWoodward)
#40 ranked lender in Texas - 106 contributions

The short answer is NO. With the mortgage meltdown came new rules regarding qualified home mortgages. A large down payment no longer guarantees you a mortgage. My team and I offer mortgages with zero down and conventional mortgages with only 3% down however one has to have decent credit to qualify and verifiable income that meets guidelines. If credit is challenging contact us today and we can help direct you in ways to improve your credit quickly.

Sep 26th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,237 contributions

It's a great start, but it isn't necessarily easier to get a loan with 20% down than with 5%. Lots of other factors come into play. A marginal borrower will likely have an easier time with a large downpayment. Sometimes it makes more sense to make a smaller downpayment and pay off other debt - just depends on your overall qualifications and situation.

Sep 26th 2013
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Mike Silkworth (msilkw_195_870)
#31 ranked lender in Michigan - 527 contributions

No it does not. It does however eliminate the need for Mortgage Insurance (MI). And Mortgage Insurance is many times harder to qualify for than an actual Mortgage Loan. The criteria used to evaluate your ability to obtain a loan are still: DTI (how much your monthly debt payments are compared to your Income), Credit Score, additional Credit History review, Job stability and attributes of the property you'll be borrowing against. So basically, the lender will be evaluating your ability to make your Mortgage Loan payments. The advantages of 20% down are: No MI, lower interest rates and relaxed credit requirements. You really need to speak to a Local Lender about your specific situation - you will want to get a referral from friends, family or the Realtor you are working with.

Sep 26th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

No, you will also need specified income and credit.

Sep 26th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,875 contributions

NO... not even close. The bigger the down payment the better, but even if you put 90% down, you still need to meet all the other criteria, proof of income, credit scores, debt ratios, etc.

Sep 26th 2013
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Jason Vondrak (jvondrak)
#219 ranked lender in California - 1,741 contributions

No, it does not. A 20 percent down payment will help but you also need to meet credit score requirements, debt-to-income ratio and more.

Sep 26th 2013
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If you do not have the credit, call me and I'll get you a private loan with 20 % down guaranteed. (800) 515-0445Sarah MontesSr. Loan OfficerNMLS# 366626

Sep 26th 2013
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No it does not. They also look at credit scores and DTI ratio.

Sep 26th 2013
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