Will a car repossession keep you from buying a home?

Answer by  John (9008)

It will greatly hurt your credit score, which will make it much harder to get a mortgage. It will still be possible to buy a house, but a lot harder. You will have to have a bigger down payment, and you will pay a higher interest rate on your mortgage.

Answer by  amariejackson (35)

No, repossession of property will not prevent you from buying a house. It will however, negatively affect your credit score, making it more difficult to get financing for a house. Worst case, you will be financed but will need a substantial down payment and at higher interest rates.

Answer by  gcmeyer2 (787)

A repo is a major ding on your credit file. It can absolutely keep you from getting a home loan. But really it depends on the creditor and their comfort level with the rest of your credit file.

Answer by  tamarawilhite (17883)

Yes, if the car repossession has been within the past 5 years. If you could not pay for a car, it is considered unlikely you can keep up house payments.