APPROXIMATELY, HOW MUCH DOWN PAYMENT DOES ONE NEED TO BUY A HOUSE WITH BAD CREDIT?
It is entirely possible to purchase a house with poor credit, however the down payment will depend upon how poor the credit rating is. You could potentially pay nothing down, if your bad credit is reasonably far in your past, and depending on how bad it really is. If it’s very bad, Expect to pay from 20 to 35 percent with a hard money lender, and from 10 to 20 with a sub prime lender. These rates can, of course, vary enormously depending on the current financial climate. For people who have recently declared bankruptcy, it’s really necessary to wait four years after a bankruptcy before you apply unless you want to pay 20 to 35 percent down with a hard money lender. At that 4 year post bankruptcy point, assuming decent credit has been built, Sub-prime lenders (not to be confused with hard-money lenders) can make 100% loans after a reasonable seasoning period, if your FICO is at least 580. This translates to NO down payment. However, for those who are struggling with bad credit, and the
