June 20, 2018

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Articles Tagged With: Credit Issues

Home Loan Anxiety Part 2: Credit Issues Before Applying For An FHA Mortgage

Home Loan Anxiety Part 2: Credit Issues Before Applying For An FHA Mortgage

Do you suffer from “home loan anxiety”? Are you worried about your ability to qualify for an FHA mortgage loan? There are some important issues you should know about that can help reduce your worries about applying. The key is to address your concerns early enough in the planning stages of your new loan to make a real difference. Worried About Your Credit And How It Might Affect Your Home Loan Application? One of the best things any borrower suffering from anxiety over a home loan application can do is to contact the FHA directly at their toll-free number (1-800 CALL FHA) and request a referral to a local, HUD-approved housing counselor who can offer advice on preparing for an FHA loan application. The help of a housing counselor in | more...

 
FHA Cash-Out Refinance Loan Credit Tips

FHA Cash-Out Refinance Loan Credit Tips

If you are considering an FHA Cash-Out Refinance loan, you’re likely wondering what credit tips will help you get closer to loan approval. If you are considering a cash-out refi loan, it’s best to start working on your credit as early as possible in order to make sure the hard work you do is evident when it’s time to fill out the loan application. Evaluate Your Current Budget Reviewing your budget won’t help with credit repair, but it’s an important first step. Why? The lender will be looking at your income compared to your outgoing monthly debt to calculate the debt-to-income ratio for your loan. If your debt is higher than a certain percentage (and lender standards will apply in this area as well as FHA loan rules) your loan | more...

 
FHA Cash-Out Refinance Loan Credit Tips

Common Credit Problems That Can Affect Your FHA Mortgage Loan Application

What are the most common credit issues that may negatively affect your ability to get approved for an FHA home loan? There are several areas you can anticipate in the home loan planning stages; addressing these areas long before you apply for any major line of credit, including a home loan, goes a long way toward helping you get your new home. FHA Loan Credit Issues: On Time Payments The timely payments issue is one of the simplest areas to address, but also one of the most common problems going into a home loan application. In general, borrowers should never apply for a loan with any late or missed payments on their record in the 12 months leading up to the loan paperwork. Anything less than this can seriously compromise | more...

 
Am I Eligible For An FHA Home Loan If I Am In A Credit Counseling Program?

Am I Eligible For An FHA Home Loan If I Am In A Credit Counseling Program?

Are potential FHA borrowers eligible for an FHA home loan if they are participating in a credit counseling program? This is a question on the minds of some borrowers trying to fix credit issues and repair past mistakes or problems associated with their credit. Borrowers should always work on their credit, counseling program or not, before applying for any major line of credit such as a mortgage or auto loan. The FHA and HUD even offer referrals to local, HUD-approved housing counselors for borrowers looking for pre-purchase advice including credit tips. (You can call the FHA directly at their toll-free number, 1-800 CALL FHA for these referrals). Some borrowers choose a formal credit counseling program in order to work on credit repair issues, and there is an understandable concern that | more...

 
FHA Home Loan Credit Issues

FHA Mortgage Credit Issues

FHA mortgage loans require a credit check, but many future FHA borrowers have some kind of credit issue in their past. Some things aren’t enough to derail an FHA home loan application-old credit issues that have since been resolved, disputed accounts that have since been successfully resolved or have had a payment plan created, etc. What do borrowers need to know about credit issues that CAN negatively affect the ability to borrow? For starters, it’s important to know that the most recent 12 months of your credit activity will be very important. It’s crucial to avoid late and missed payments at all costs in those 12 months for best results. Other FHA loan credit issues can affect your loan (or not) depending on the timing, severity, and nature of the | more...

 
More FHA Home Loan FICO Score Questions And Answers

More FHA Credit Score Questions And Answers

In our previous blog post, we examined some common FHA loan FICO score questions and answers. Here are some more things you should know about FHA home loans, the FICO score requirements for them, and more. Is There A FICO Score Too Low To Be Approved For An FHA Loan? Lender standards will apply above and beyond FHA loan rules in this area. Technically speaking an FHA loan applicant with a FICO score of 500 or less is not eligible for an FHA-insured mortgage loan. Lender standards may be higher than this, however, and borrowers with FICO scores in the 500 range should seriously consider calling the FHA directly at their toll-free number 1-800 CALL FHA to get a referral to a local, HUD-approved housing counselor who can assist with | more...

 
Are There Any Income Documentation Rules For FHA Loans? Part Two

FHA Loans, Credit Reports, And Loan Approval

What do you need to know about FHA loans, credit reports, and loan approval? To begin, your credit reports have a big part to play in the lender’s decision to approve your mortgage application. What do you need to know about this approval process and what the lender is looking for? Home Loans Require More Than Good Credit Scores FHA loans, like any other major line of credit, require the lender to determine that the applicant is a good risk for the loan. Your FICO scores may be well within the range the lender needs to approve your loan with maximum financing (that score may vary depending on the lender) but what ELSE does your credit report say? For example, are you carrying the maximum or close to the maximum | more...

 
FHA loan requirements and your credit score

FHA Loan Credit Requirements And Your Credit Scores

FHA loan credit requirements state that the lender must pull your credit information and credit scores to review a borrower’s credit worthiness. But if you are applying for an FHA loan you likely have three credit scores the lender must contend with. Borrowers often want to know how the lender views these three scores-they can be different from one another depending on circumstances-and which of multiple credit scores is actually used to process your home loan. The rules for FHA credit score requirements are found in HUD 4000.1, the FHA loan handbook. Credit scores must come directly from the three credit reporting agencies and cannot be submitted or transmitted to the borrower or another third party then submitted to the lender. Your credit scores must come from the source. FHA | more...

 
Get The Loan! FHA Home Loan Approval Tips

FHA Mortgage Loans: Credit History Counts

When it comes to FHA mortgage loans, or any major line of credit, your credit history counts. Some might focus on the FICO score, but the numbers you get off your credit report are not the only credit qualifications needed to successfully apply for an FHA mortgage. Credit Report Data: The Big Three Many people use the phrase “Big Three” to refer to the three credit reporting agencies themselves; Equifax, Experian, and TransUnion. But here, we’re referring to the Big Three on your credit report itself. Your credit score, credit history, and the amount of credit you carry. The Big Three credit factors all count towards your potential loan approval or denial. Why? The lender is required to establish that you are a good credit risk for the loan. Your | more...

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

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 refinance loans 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 | more...