How hard would it be to get a $66,000 mortgage loan on a $200,000 property?

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I’m putting down $ 134,000 down payment.
I’m self-employed. No debt. 750 credit score. My business sales are pretty high but actual profit probably averages 20,000/year, with some years at a loss some years at $ 36,000. Will it be a strugle to get a mortgage with even that much money down or will it be easy because of it?
My income history isn’t that great, but is it good enough to be considered or should I just look at cheaper properties?
What about more down or a lower mortgage, will that matter any?

7 Comments
  1. Reply
    Realtyyoudefine
    May 16, 2011 at 5:57 am

    If you can afford to put more down, why not just pay cash and not worry about the mortgage?

    Regardless, unless there is something you are not telling us, a lender should be more than willing to approve a loan with 33% LTV.

    Speak with a lender for the final answer.

  2. Reply
    Landlord
    May 16, 2011 at 6:41 am

    You will need to show the last 2 years of income exceeding 35k a year.

  3. Reply
    Jason j
    May 16, 2011 at 7:15 am

    It would be very easy to get a private mortgage. A private lender would see that there is no risk involved in lending you the money since you are putting so much money down. If you stopped making payments and the lender foreclosed you would lose your $ 134,000 down payment and the lender would get a $ 200,000 house for $ 66,000. So there is no risk to the lender in this situation. If you were in my town I know lenders that would make this loan to you.

  4. Reply
    the kid
    May 16, 2011 at 8:04 am

    you should be fine. Given the value of the house vs. the debt, they won’t be too worried about recouping money if you default.

  5. Reply
    msi_cord
    May 16, 2011 at 8:27 am

    If you are putting $ 134,000 down, I think there would be little risk in giving you the mortgage. Having no debt and good credit history helps your cause as well. I think you should be able to get a mortgage.

  6. Reply
    Bob
    May 16, 2011 at 8:40 am

    You have to be able to demonstrate you can afford the payments to get an approval in 2010. The bank doesn’t want your house, they want your money. They will do a cash flow analysis of your last two years Federal tax returns in which they will add back non-cash expenses like depreciation and it could allow them to count a higher amount of your income than the $ 20K average profit you mentioned. Since you have no additional debt you will qualify based on the $ 20K. Taxes and insurance can vary depending on the area but I estimated your total payment at about $ 750 which puts your debt ratio at 45%. These days with a 750 score and 67% down a 45% (even a bit higher) debt ratio gets approved. If necessary, they could also consider your income over a longer period if you can demonstrate a history of earnings and one of the past two years was not typical.
    Enjoy your new home.

  7. Reply
    CountryGirlDeputy
    May 16, 2011 at 9:34 am

    You might be able to get approved depending which bank you use. I’d suggest going to one and sit down and talk to the bank. I’d start with the bank you have your money with since you already establish an relationship with that bank. If you can’t get approved with employment history, just buy a house with the down payment cash you have.

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