C.M.
Let me just tell you that absolutely NOTHING is the way it used to be in the Lending industry now. I've been a mortgage broker/banker for over 11 years and my husband for 25 yrs. Simply putting 50% down, in absolutely no way, qualifies you for a new loan.
You must meet all of the Lender's guidelines in addition to the down payment. The other criteria are, but not limited to:
- income qualifying (you must prove that you have a stable, verifiable source of income that has been consistent for at least 2 years)
- Credit (bad credit, or no credit just simply doesn't fly in this market)
- Assets after closing (most loans require you to have reserves after the down payment)
- Debt to income ratios (you new payment, combined with your existing debts must be within certain tolerable levels)
The best thing you can do is take the same money you would put down and correct your credit problems. Then, in a few years, you'll be able to actually get a loan.
Sorry if this comes off harsh, but there is so much mis-information out there, and so many desperate loan officers trying to get business that will tell you anything, that I think it's worthwhile for you to have the truth...
I'm happy to answer any questions you may have.
C.