Is it possible to get 100% financing for a mortgage with a credit score of 587?


Well, it can be possible depending on which lender you chose. Your interest rate would be very high causing your monthly payment to probably not be very affordable or worth financing 100%. You can also do a balloon loan which is two different loans the first is 80% of the mortage amount and the 2nd mortgage is 20$ of the mortgage amount. But again… the payments might be very high!

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5 Comments.

  1. No
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    I’m a manager at the Midwest’s largest private mortgage bank

  2. No, have you heard about the credit scrunch lately. The lenders are even looking at the house value for the next 6 month (which most likely will go DOWN), so 20% down payment required even with awesome credit score. You need to improve your credit score drastically and save up for 20% down payment.
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  3. Not in today’s market. It will be difficult for you to get a loan period since the subprime market is basically gone and you will at least need 20% down, high income (for low debt ratio) and assets
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  4. No, they will not offer you that. In order to get financing like that you have to have excellent credit.
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  5. Well, it can be possible depending on which lender you chose. Your interest rate would be very high causing your monthly payment to probably not be very affordable or worth financing 100%. You can also do a balloon loan which is two different loans the first is 80% of the mortage amount and the 2nd mortgage is 20$ of the mortgage amount. But again… the payments might be very high!
    References :

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