Will it get harder to get credit?

[Cali]

There are people that have put down a hefty down payment(more than 10-205) and they still lost money. Stats are used to support the outcome they want to support. It isn't hard to do that.

Statistics say that the more an owner puts down, the less likely they are to default, hence getting better rates with a larger down payment, etc... It's not just me saying this. It's a fact. This was explained to me when we bought our home. Everyone was telling us to go 0% down and I talked to several experts and decided to go w/ a larger down payment. We got a better rate. And, when we had to sell our home b/c of our finances, if we would not haver made the down payment, we would have lost money, despite the fact that our house went up in value. After real estate fees and having to get the house perfect to show and pass inspection, we would have owed on a house we didn't own.

After looking back and figuring it out, we figured that we would have been WAY better off renting a nice apartment and putting all of the upkeep $$$ into the bank anyway. We would have had way more $$ than we made off the house, plus we would have still have had our downpayment.This is where we will be going now. Renting for a while and saving for a VERY large down payment, and emergency fund.

[Cali]

I do think companies shouldn't charge crazy rates for credit. But I also think the people getting the credit should also take responsibility, because no one makes you get credit.

Our credit limits were very high, but we had the income to support those limits. Now we don't and we had to file. None of our cards were maxed. The companies thought it would be nice to up rates w/ no late payments because of the amount of credit we had. And once one company ups rates the rest follow. Or they CLD you which makes it look like you are maxed.

[PoorGrammyinBK7]

We have excellent credit - today - in the mid 700's. Have had several mortgage loans over the years - some were 20% down, some were 10% and one was 0% (VA). The best interest rate we have ever gotten is the one we have now and it was just 5% down. We have never defaulted in any of them, nor a car loan or anything. Yes, we have been over 30 days a couple of times in credit card payments - due to moving or something, but nothing major at all. We will be filing BK tomorrow at almost 60 years old and why? Because we had the audacity of hope and tried to start a business in 2002 and one of the partners, who was in charge at the time, closed the doors without telling the others, thereby breaching the lease - landlord changed the locks and that is where it began....

After today, our always good credit will be shot to h--- and we may never recover it at our age and with our various heath problems.....

[sisterfunkhaus]

Stats are used to support the outcome they want to support. It isn't hard to do that.

What would be the motivation for financial experts to say that that having equity in a house makes people more likely to make their payments? And at least if they have to sell it and have equity, there is a FAR smaller chance they would have to do a short sell.

[TEW]

Statistics say that the more an owner puts down, the less likely they are to default, hence getting better rates with a larger down payment, etc... It's not just me saying this. It's a fact. This was explained to me when we bought our home. Everyone was telling us to go 0% down and I talked to several experts and decided to go w/ a larger down payment. We got a better rate. And, when we had to sell our home b/c of our finances, if we would not haver made the down payment, we would have lost money, despite the fact that our house went up in value. After real estate fees and having to get the house perfect to show and pass inspection, we would have owed on a house we didn't own.

After looking back and figuring it out, we figured that we would have been WAY better off renting a nice apartment and putting all of the upkeep $$$ into the bank anyway. We would have had way more $$ than we made off the house, plus we would have still have had our downpayment.This is where we will be going now. Renting for a while and saving for a VERY large down payment, and emergency fund.

Can you give us a link to the Statistics you are talking about?
This is my fifth house the first one i bought was with my VA loan NO down payment. The second was an FHA REPO the others I bought fixed up and sold with very little down.
I am losing the one I am in now after my 30% down after I retired and my wife lost her job that put us behind I have always been very careful not to overspend my income. but unforeseen thing have happened.
I'm not sure how much more I could have done or what I could have done differently to prevent this bankruptcy.

[hlgee]

it will but not a whole lot because in order to stay in business, banks have to keep lending.

[xuanlu425]

xuanlu

I support author's viewpoint, hoped that will have later also more better articles, wow gold will read the first time, thank!