Quote:
Originally Posted by joey2665
I understand the strategy but it is a financial error. It’s pretty easy to be approved for a mortgage when your putting 50-60% down.
Sent from my iPhone using Winnipesaukee Forum mobile app |
Not necessarily.
Mortgage approvals are based on the debt to income ratio of the applicant. Your credit score and cash flow are most important. That is how all of the loans sold in the secondary market to banks like Bank of America, GMAC, Etc work.
If you put 60% down but have a debt to income ratio in the 60% range there is no way you will get a mortgage.
The guidelines don't care how much you put down or how much you have in the bank. If you put 50% down and have two million in the bank you would not qualify unless your $2 million was invested at a rate of return that would qualify you or you have other sources of income..