April 9, 2020

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Articles in Category: Credit Issues

Protect Your Credit Score During The Coronavirus Outbreak

Protect Your Credit Score During The Coronavirus Outbreak

The economic effects of the coronavirus / COVID-19 are being felt in every sector of the American economy, including the real estate market and the housing industry. With trillions of dollars in economic stimulus promised, but in various stages of delivery (or non-delivery as the case may be), Americans are still facing economic pain that may not have a short-term fix. In spite of that uncertainty, one thing remains clear. Consumer credit scores are going to have a lot more weight in the credit approval decision process in the days following the peak of the coronavirus emergency in America. It’s going to take time to begin a full move toward recovering from the crisis, but those who take steps now (and later) to protect their credit will fare better than | more...

 
Protect Your Credit During The COVID-19 Emergency

Protect Your Credit During The COVID-19 Emergency

What can you do to protect your credit during the coronavirus pandemic? Millions of Americans have applied for unemployment, foreclosure relief, and other measures, but what do consumers need to know about protecting credit during a time of dramatically reduced income? Check Your Credit There is plenty of time during a shelter-in-place order to apply for the free copies of your credit report you are entitled to each year. You can get a copy of your credit report for free from the government’s official source for Americans to get those free credit reports, AnnualCreditReport.com. Review your credit report for errors, identity theft, and outdated information. You must dispute any inaccurate information on your report to improve your credit scores (which may have been lowered as a result of that inaccurate | more...

 
How To Avoid Mortgage Default And Foreclosure During The Coronavirus

Don’t Fall Victim To Mortgage Default And Foreclosure During The Coronavirus

Are you worried about losing your home during the financial trouble caused by COVID-19 and the global coronavirus outbreak? There are some important steps you can take to save your home and avoid foreclosure. FHA borrowers should know that the FHA and HUD have issued a 60-day moratorium for eviction and foreclosure action associated with FHA mortgages. But that is a TEMPORARY delay and borrowers should not expect to avoid foreclosure without making arrangements with their lender. If you are in trouble with your mortgage, there are important steps you can take to avoid foreclosure after the 60-day delay in FHA loan foreclosure action has expired. What are they? Contact your lender as soon as you know you are having financial trouble. Make arrangements with your loan officer and see | more...

 
Corona Virus Headlines And FHA Mortgage Rates

Corona Virus Headlines And FHA Mortgage Rates

The headlines recently have said it all; “Coronavirus fears cause mortgage rates to plunge to 8-year low”. That’s courtesy of CNBC, not one of the many many amateur finance blogs or fly-by-night junk stock purveyors. What’s the reality behind the headline? FHA and VA home loan rates for Monday, February 25 2020 were reported at 3.25%, which is definitely one of the lowest points the rates have fallen to in the last several years.  There is speculation that rates might broach new territory where historic lows are concerned; whether this actually happens or not remains to be seen. Why do interest rates move higher and lower? There is no single factor, just as there is no single factor that goes into a home loan transaction; it’s a complex operation featuring | more...

 
FHA Home Loans For Borrowers With Thin Credit

FHA Home Loans For Borrowers With Thin Credit

Some borrowers worry their FICO scores aren’t high enough to be approved for a home loan. Other borrowers worry that they don’t have a long enough credit history. There are ways you can raise your FICO score, increase your credit file, and make yourself a better credit risk for an FHA home loan, FHA rehab loan, or even a construction loan to build your own house on your own lot. If you apply for a home loan with thin credit non-traditional credit or no credit, your lender will ask for any evidence you have made recurring payments of some kind. That’s a good place to start when it’s time to review your credit. Your lender will want to see that for any financial obligation you do carry, that on-time payments | more...

 
Buying A Home With A Lower Credit Score

Buying A Home With A Lower Credit Score

Some of our most popular blog posts and articles have to do with buying a home with a low credit score. What can you do if you know your credit isn’t perfect but need to buy a home with an FHA mortgage? Actively Work On Your Credit The most effective way to change your credit rating and improve it is also the simplest. Make all payments on time for at least one year leading up to your home loan application. This is the first step toward getting yourself ready to actually be approved for a mortgage loan. Review Your Credit Report If you don’t know what your credit report says, you are not ready for a home loan. It really is as simple as that. Learn How To Understand Your | more...

 
FHA Loans And Your Credit Report

FHA Loans And Your Credit Report

Do you need to fix your credit? Do you need to fix your credit REPORT? Some of our most popular articles here involve what to do about bad credit issues ahead of a home loan application. The usual advice about paying on time and making sure you cut your outgoing debt as much as possible always apply, but there is an equally important step in getting your credit ready for a new loan; checking your credit report for accuracy. How To Get Your Free Credit Report From A Government-Approved Source To order the free credit report you are entitled to by law, visit annualcreditreport.com. You can also call 1-877-322-8228 or download and complete the Annual Credit Report Request Form and mail it in: Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA | more...

 
FHA Home Loans and Your Income: 5 Tips

FHA Loan Credit Score Issues

If you do not know your credit score when you start reading this article, it’s best to plan to pull your credit reports as soon as possible after reading. If you want to get properly ready for a home loan application, you should know your credit score, the contents of your credit report, and whether you need to challenge or correct information on your credit reports. FHA Loan Credit Standards FHA loan rules for credit and FICO scores are minimum requirements. The minimums acceptable to the FHA are a baseline for the lender who may add higher credit score requirements depending on a variety of circumstances. What we’re discussing here are the FHA rules, lender requirements will vary. The FHA “Minimum Decision Credit Score” (MDCS) HUD 4000.1 is the FHA | more...

 
How To Avoid Foreclosure During The Coronavirus

Home Loans After A Bankruptcy

Are you interested in a new home loan but are worried about a past negative credit event such as a bankruptcy? Borrowers sometimes have many questions about FHA mortgages and bankruptcy. One of the most common scenarios asked about include borrowers who are about to be discharged from their bankruptcy and are contemplating a home loan. With low credit scores and a recent bankruptcy, what is a borrower to do in order to become eligible for a home loan once more? In such cases, you need to know the FHA loan rules in HUD 4000.1 which require a minimum waiting time or seasoning period before a borrower can apply for an FHA mortgage once more. The waiting time begins at the time the bankruptcy is discharged. Note that it does | more...

 
Repair Your Credit Before Your Home Loan

Home Loan Approval: Why FICO Scores Matter

If you want to buy a home, you will need to become well-read about credit, credit scores, and how your credit report affects your ability to apply for a mortgage loan. There are three major credit reporting agencies, Equifax, TransUnion, Experian. The fact that there are three agencies is one good reason why credit experts encourage borrowers to check their credit reports as early as possible prior to applying for an FHA mortgage or any other major line of credit. One credit report could have discrepancies another one does not reflect, etc. A borrower should always know what their lender is going to see on the report before the application is completed. FICO scores are indeed an important part of FHA loan approval, and borrowers should respect FICO scores and | more...