Articles Tagged With: Credit Reports

November 22, 2023

Planning A Mortgage: Credit Resources You Need

Are you planning a home loan? Are you in the budgeting and saving stages of your home loan journey? If so, there are some necessary resources you should explore before you apply for an FHA mortgage. It’s important to give yourself enough time to plan and save for your home loan and that includes paying more attention to and working on your credit. Credit resources can be a huge help in this regard–don’t pass on the chance to improve your FICO scores, get your payment history into good shape, and prevent identity theft or other problems from stopping your mortgage loan in its tracks. The first resource you should consider is the offer made by the FHA and HUD to give free referrals to a HUD-approved housing counselor. You can | more...

May 19, 2023

FHA Loans and Your Credit

By Bruce Reichstein

Lots of people want to know what credit issues will affect the approval of FHA loans. The shortest answer is that it’s a combination of FICO scores, your repayment habits on all financial obligations (not just credit cards or revolving debt), and the amount of debt you pay on each month versus how much income you have. But there are some hard numbers to look at, too. FHA minimum requirements for credit include FICO score requirements for maximum financing. If your FICO scores are 580 or above, you technically qualify for maximum financing, which means only a 3.5% down payment. But FHA FICO minimums are not the only FICO score requirements you’ll need to meet. Credit requirements at your chosen lender can be, and often are, higher. You may find | more...

March 17, 2023

The Four Keys To Fixing Your Credit Before Your Home Loan

By Joe Wallace

A lot of borrowers want to buy a home but worry that they have credit problems that might keep them from getting their mortgage loan approved. Any borrower worried in this way should do four important things starting about a year away from the day you want to apply for the loan. What are the four keys to credit repair ahead of your home loan? There are two items in the “Do” category and two in the “Don’t” category you should consider doing as early as possible before applying for best results. #1 Credit Repair Hack For Home Loan Applicants The number one credit repair hack any consumer can try begins with knowing the contents of your credit report. It’s that simple, really. And everything else you do going forward | more...

February 24, 2023

What Credit Score Is Needed For An FHA Mortgage?

By Bruce Reichstein

What is the minimum credit score required to get approved for an FHA mortgage loan? Readers ask questions about this issue all the time, sending in questions asking if it is possible to still get an FHA mortgage with a low credit score. FHA loan rules establish a minimum credit score for loan eligibility but lender standards also apply so this is a harder question to answer than you might think. What is best in these situations is to know that FHA loan rules are the baseline, the minimum. The lender’s requirements are also applicable so you will need to discuss what FICO scores qualify. In general, FHA loan rules in the FHA lender’s handbook say FHA borrowers with credit scores at 580 or higher are eligible for maximum financing | more...

September 23, 2022

FHA Loan Credit Issues To Think About

By Joe Wallace

Credit scores are a very important part of qualifying for an FHA mortgage, but they are not the only factor to pay attention to. What follows is information about the other credit-related factors your lender will consider. To be sure, these factors may affect your FICO scores, but they are also viewed apart from your scores to determine your ability to realistically afford your mortgage. What are these factors? On-Time Payments Your participating FHA lender will review your credit report to see if there are late or missed payments, how many, and when they occurred. In general–and this is advice you will read on any mortgage blog or bank official site–if you have late or missed payments in the last 12 months, it can hurt your ability to get a | more...

February 14, 2022

Getting Your Credit Ready For A Mortgage

By Joe Wallace

FHA mortgages generally have more forgiving credit score requirements than some of their conventional counterparts. If you are thinking of applying for a mortgage you definitely want to start reviewing your credit far in advance of the application–that’s advice we give out here on a regular basis and is fairly “Home Loans 101” type information. Newcomers quickly learn that starting work on their credit as early as possible is the best move they can make in the planning stages of the loan. But what isn’t so entry-level advice? What some credit reporting agencies advise on managing your credit with or without a home loan to plan for. The implications of this advice are basically that credit is not a “set and forget” type of issue; for best results, you’ll want | more...

October 26, 2021

What You Need To Know About FHA Loans And Your FICO Score

By Joe Wallace

FHA home loan approval depends on a number of things–your payment history on your financial obligations, your employment, and your FICO scores. Credit scores are a big worry for some home loan applicants. Do you have thin credit? Have you had poor credit habits in the past that you are trying to fix? Remember, more consumers than you realize have had similar issues in the past–there is no shame in trying to correct your past mistakes and get back on track with your credit. Too many people feel a sense of shame about their past credit issues–and that shame can prevent people from taking constructive steps to help themselves. Did you know that you can begin repairing your own credit by making consistent on-time payments and lowering your balances on | more...

September 30, 2021

Before You Apply For An FHA Mortgage

By Joe Wallace

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...

August 11, 2021

Questions To Ask About Your Credit Report

By Joe Wallace

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...

June 17, 2021

FHA Loan Minimum Credit Scores: Tips That Can Help You

By Joe Wallace

Are you concerned that your FICO score isn’t high enough to meet the minimum credit scores for the lowest down payment possible on an FHA home loan? On paper, FHA loan minimums for credit scores begin at 580 or better to qualify for the lowest down payment. Your participating lender may require a higher score but in general FICO score requirements for FHA home loans may be more competitive than some conventional equivalents. There is some good credit score advice should you take ahead of your home loan–it starts with pulling your credit reports to see what’s lurking in there, then checking your credit often and monitoring it. Being told to check your credit report is obvious advice. You will find that in just about any credit repair article. But | more...