May 19, 2022

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Articles Tagged With: Credit Check

FHA Mortgage

Are FHA Credit Requirements For Refinancing The Same As Buying A Home?

Are FHA credit requirements the same for refinance loans as they are for buying a new home? Many borrowers want to know if their credit scores, payment history, and other factors will be scrutinized as closely when refinancing. FHA loan rules for refinances vary depending on the nature of the new loan. The rules that govern this area are found in HUD 4000.1, the FHA Single-Family Loan handbook, and lender standards may also apply. The credit requirements we’re discussing here are FHA loan minimum standards. To know what a specific financial institution may require above and beyond these standards, you will need to talk to a participating FHA lender.FHA Loan Credit Check Requirements For Cash-Out Refinance Loans FHA loan rules in HUD 4000.1 state that cash-out and the no cash-out | more...

 
Cash out refinancing

Five Reasons To Buy Your First Real Estate With An FHA Home Loan

FHA home loans are a great way to make your first real estate purchase. Are you looking at homes for sale and trying to decide which is the best mortgage loan for you? If you are a first-time home buyer and feel a bit confused by what your real estate agent finds in MLS listing data while searching for “houses near me”, remember that the FHA mortgage loan option is available to anyone who financially qualifies. If you are talking to a real estate agent, do not forget that FHA loans are not restricted to first-time homebuyers or those who have never owned property before. You can own other property and still buy a home to live in as your primary residence using an FHA loan whether you’ve purchased another | more...

 
FHA loans

Building Credit Before Your FHA Home Loan

If you want to buy a home, especially if you are shopping for a house for the very first time, you may need to build credit in the year or more leading up to your application.  First-time homebuyers who do not have a long credit history do well to consider building credit, which is not quite the same thing as repairing credit. That said, the procedures for building and repairing are often similar. One important thing to remember; you don’t need a credit card to build credit. Some credit reporting agencies give you the option of having recurring payments (such as cell phones, utilities, etc.) added to your credit report.  These recurring payments can help establish a pattern of reliable payments, and you will need to make arrangements with each | more...

 
FHA Home Loans And First Time Home Buyers

Credit Advice Before Applying For A New FHA Mortgage

Do you know how to get your own credit ready for a major loan application like an FHA mortgage? If you want to discuss your home loan options with a participating lender, you’ll want to have worked on your credit for a significant amount of time before your application or pre-qualification process starts. How much time do you need to get your own credit ready to apply for an FHA mortgage? Many sources say at least one year is ideal, and the credit reporting agencies themselves urge borrowers to take matters into their own hands and begin reviewing credit reports and monitoring credit. The shortest answer to the question, “Am I ready to apply for a mortgage” is, “It depends on how long you’ve been working on your credit.” If | more...

 
Buying A Home With A Lower Credit Score

Before You Apply For An FHA Mortgage

One of the biggest worries about buying a home? Having good enough credit to qualify.  Do you know what it takes to raise your credit scores? Do you know what it takes to do so without paying a third party to do things on your behalf? Improving your credit scores ahead of an FHA mortgage loan application requires time, which is why financial advisors say it’s best to start early when planning and saving for your loan. Raising your credit scores means changing some basic habits associated with your payments, and getting into new habits can be an adjustment. But that is not the reason why it takes time to repair your credit.  There are three basic issues you should be concerned with if you want to raise your score. | more...

 
FHA Home Loan

Do FHA Home Loans Have An Income Cap?

Some borrowers learn that FHA mortgage loans are government-backed and guaranteed by the FHA and HUD, which can lead to certain assumptions about the nature of a government-backed mortgage. One of the misconceptions about FHA home loans is that due to their government association have either an income limit, or are otherwise need-based. Some borrowers might be confusing the government-backed USDA loan program with the FAH loan rules. USDA loans ARE need based. However, FHA loan rules in HUD 4000.1 do not specify a maximum income and do not require a specific financial need to qualify. FHA loans do not have a low-income requirement, a household income cap, or a requirement that you be a first-time buyer. These loans are instead designed for those who want to purchase a home | more...

 
New FHA Home Loan

FHA Loan Guidelines For Verifying Your Credit History

FHA loan rules have a lot to say about what the lender needs to look for to verify a potential FHA borrower’s creditworthiness. No matter if you are looking for a condo loan, a mobile home loan, or you want to build a house on your own land with an FHA construction loan, the requirements in the FHA Lender’s Handbook are identical. There are minimum FICO score requirements, instructions to the lender for reviewing the borrower’s record on-time payments (12 months of reliable payments on all financial obligations is strongly recommended), and much more. One area that is also covered in HUD 4000.1 is what the lender should do if collections are included in the borrower’s credit history. The presence of a collection action on a loan applicant’s record may | more...

 
Information You Need To Pre-Qualify Or Get Pre-Approved For A Mortgage

Before You Apply For Your Mortgage Loan

If you are concerned about your ability to qualify for a mortgage, before you get pre-qualified or pre-approved, it’s a good idea to add a few steps to your home loan prep checklist. These steps should be in addition to the usual things you need to do before you apply for the loan, seal pre-approval, approach a seller, or even start working with a real estate agent. One of those things is very important–you need to not only know the contents of your credit report (a Home Loans 101 type piece of advice) but also monitor your credit through the entire planning and purchase process of your home loan.  Knowing your credit score is vital for a mortgage borrower and home buyer, but what happens if your credit report begins | more...

 
Buying a House

Questions To Ask About Your Credit Report

Do you dread the idea of looking at your credit report? Some people delay looking at theirs because they are afraid of what they might see, or afraid they won’t be able to understand what they are reading in their own report. Fortunately, there are some questions you should ask about your credit report that can give you a good start in the right direction–these questions will help you better understand what’s in your report and what a lender looks for when they review yours. When you get your copy of your credit report from Experian, TransUnion, or Equifax, be sure to review the report once “cold”, and then review it again with the following questions: Credit Report Accuracy: Open Accounts? Are the accounts listed in your credit report open? | more...

 
FHA refinance

What You Need To Know About FHA Home Loan Credit Checks

What do first-time home buyers need to understand about the credit check process for getting an FHA mortgage? There are many variables but one thing you can do to get a better understanding of what it takes to be approved for a loan is to start trying to think like a loan officer–their job depends on making sure that you are a good credit risk. How can you help the lender help you? What you don’t know can hurt you in the journey toward buying that first piece of real estate. Before you begin working with a realtor, you should know several things about the credit check process. Credit is a major part of home loan approval and you want to be able to convince your lender you are ready | more...