March 21, 2015
A reader asks, “Do you know what kind of things I can do to make my FICO score better to get a FHA loan? I tried to get my first house and was denied the loan because of “negative credit marks”. I really want to be able to support my family. I’ve been following this guide to improve my standing:
(finance guide name deleted)
Do you know if all that stuff is correct? Is there anything else I can do? Right now I don’t have the money to pay a professional, so I’m reading as much as I can to do it on my ownn
We couldn’t comment on the guide the borrower mentions in the question–we haven’t read it and we aren’t experts on improving credit scores. How to improve FICO scores is a subject outside the scope of this blog except as it pertains to FHA home loans.
In general, a borrower should try to come to the FHA loan application process with a minimum of 12 months of on-time payments on all financial obligations. That will, in a general sense, go a long way toward helping a borrower’s credit score improve.
The reader question mentions being unable to afford a professional. This reader should call the FHA at their toll-free number to request a referral to an FHA/HUD approved housing counselor in the reader’s local area who can help with advice on improving credit, planning for a new home loan, budgeting and other advice related to getting ready for a home purchase.
Pre-purchase counseling is always a good idea; borrowers may have questions or concerns not addressed by the research they’ve done in preparing for the home loan. The counseling may also raise issues a borrower had not thought of previously.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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