December 10, 2018

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Articles Tagged With: Credit Scores

FHA home loans for families

Don’t Apply For An FHA Home Loan And An Auto Loan At The Same Time

Plenty of websites, books, and financial podcasts warn about managing your credit properly during the home loan application process. One bit of advice from many of these sites? Don’t apply for a car loan at the same time or just before a home loan. Why? There are several reasons, one of the most important being that your debt-to-income ratio is negatively affected by any new line of credit and a home loan lender will be required to consider that when deciding whether or not to approve your mortgage loan. The minimum payment required each month on the car loan will be factored in with the rest of your debt, and if you significantly change your debt ratio during the home loan process-even if the loan is initially approved-it could affect | more...

 
Five Reasons Lenders May Deny Your Home Loan Application

FHA Home Loans And Your Free Credit Report

There is a great deal of advice about preparing for a home loan application. If you are considering an FHA mortgage, FHA refinance loan, or even a reverse mortgage, you will need to take time to prepare for your FHA loan before filling out the application paperwork. Part of that preparation involves pulling your credit report to make sure there is no identity theft, inaccurate information, etc. But how do you get copies of your credit report? All consumers are entitled to a free credit report every 12 months. This report is available from each of the three credit reporting agencies; Equifax, TransUnion, and Experian. The government consumer watchdog agency, the Consumer Financial Protection Bureau (CFPB), advises borrowers to apply for these credit reports via AnnualCreditReport.com. You are entitled to | more...

 
FHA Home Loans For Manufactured Housing

FHA Home Loans For Manufactured Housing

FHA home loans are for a variety of different property types. Manufactured homes are one of the property types you can purchase with an FHA mortgage, but like most other home loans the home you want to buy must meet FHA standards. FHA Home Loans For Mobile Homes: Find A Participating Lender FHA mortgages for mobile homes and manufactured homes are not always available since some participating FHA lenders choose not to offer them. The nature of a given housing market, buying or selling trends, and the quality of the manufactured homes / mobile homes in the area may all contribute to a lender’s decision to offer or not offer a mobile home loan. You may need to shop around for a participating lender who can help. You can also | more...

 
FHA Loans And Bankruptcy: Chapter 7

FHA Loans And Bankruptcy: Chapter 7

Getting an FHA home loan following a Chapter 7 bankruptcy is not impossible; borrowers who handle their finances and credit responsibly after filing bankruptcy will find FHA home loan rules are more favorable to them than it may seem. Some assume that bankruptcy means never being able to own a home again or that it may take seven to ten years to recover from such a circumstance. FHA loan rules say otherwise, and while additional lender standards may apply the borrower does not necessarily have to wait such a long time to be considered for a new home loan. FHA Loan Requirements For Applying For A Mortgage After Chapter 7 Bankruptcy FHA loan rules in HUD 4000.1 state clearly that a Chapter 7 bankruptcy is not a barrier to a | more...

 
FHA Loans And Your Credit Report: Check Ahead Of Time

Bad Credit Scores And FHA Home Loans

Bad credit scores and FHA home loans-do you know what the rules are for FHA credit requirements? FHA loan minimums and FHA lender standards may not be exactly the same, so it’s important to remember that the issues we discuss here are based around FHA minimum guidelines and that you’ll need to talk to a participating lender to see what other requirements must be met. Is There A Bad Credit FHA Home Loan? FHA loan rules require a 500 FICO score at the absolute minimum in order to qualify. Those who apply for an FHA loan with credit scores between 500 and 579 are required to make a higher down payment (10% of the adjusted value of the home) than those who apply with FICO scores 580 or higher. Remember, | more...

 
Mistakes To Avoid When Buying A Home With Your FHA Loan

Am I Eligible For An FHA Loan Even Though I Have Had Credit Problems?

Am I eligible for an FHA loan even though I have had credit problems? Borrowers often worry their credit scores or credit history aren’t good enough to qualify for an FHA mortgage loan, but what is the reality? What do FHA loan rules say about credit and your ability to borrow? FHA Loans For Borrowers After Bankruptcy FHA home loans are possible for those who have a bankruptcy on their credit history, but there is a mandatory waiting period and the duration of that wait depends on the nature of your filing. The mandatory waiting period begins when the bankruptcy is discharged, NOT when it is initially filed. FHA Loans For Borrowers After Foreclosure, Deed-In-Lieu Of Foreclosre, Or Short Sale Borrowers with foreclosure or short sale activity on their credit | more...

 
Five Things You Should Know About FHA Refinance Loans

Credit Score Issues and FHA Loans

Do you know how credit score issues affect your FHA home loan application? For most borrowers, there’s no such thing as a new purchase loan with no credit check; The FHA loan handbook (HUD 4000.1) instructs the lender that credit score checks for FHA mortgage loan applications are mandatory except in certain instances such as for FHA Streamline Refinance loans, and other transactions as described on page 158: “The Mortgagee must review the credit report to determine the Borrower’s Minimum Decision Credit Score (MDCS), except for Mortgages to be insured under Section 247, Section 248, Streamline Refinances, and Assumptions. The MDCS will be used to determine the maximum insured financing available to a Borrower with traditional credit.” HUD 4000.1 adds that FHA loan applicants who have non-traditional or insufficient credit | more...

 
What does my FHA lender look for in my credit report?

What Does My FHA Lender Look For In My Credit Report?

What does my FHA lender look for in my credit report? That is a very good question to ask, and the earlier in the home loan planning stages you ask, the better off you’ll be. It’s highly recommended that home loan borrowers get copies of their credit reports in the year leading up to a home loan application. You want to know what your credit history says about you before you submit that information to your loan officer. FHA Loan Rules For Credit Reports Your lender is required by the FHA loan program to pull your credit reports, and to use “traditional” credit reporting wherever available. Some borrowers do not have credit, or have non-traditional credit histories. According to the FHA loan handbook, HUD 4000.1, the lender is required to | more...

 
Happy New Year 2018

What Is An FHA Loan And How Does It Work?

What is an FHA loan and how does it work? There are many differences between conventional and FHA mortgages, and those differences could mean significant savings depending on your home buying needs and goals. What An FHA Loan Is Not An FHA loan is a mortgage loan, first and foremost. It is intended to buy or refinance a property. An FHA “forward mortgage” or new home loan not intended to act as a personal loan, with cash back to the borrower at closing time. FHA loan rules don’t permit the borrower to apply for a loan greater than the adjusted value of the property plus additional costs that may be rolled into the loan. While your FHA mortgage may be greater than the total adjusted value of the property, you | more...

 
Get The Loan! FHA Home Loan Approval Tips

What Is The Average Credit Score Needed To Buy A House?

If you are a first-time home buyer, you’re likely asking a very common (and very important) question. What is the average credit score needed to buy a house? To get the answer, we decided to see what one of the three major credit reporting agencies, Experian, has to say on this subject. On the official Experian website, the answer to this question might surprise you: “There is no set minimum score to buy a house.” That’s right, you just read a direct quote from the official site of the credit reporting agency, Experian. But that statement does NOT mean there are no FICO score or credit score standards. Each lender has a set of credit score ranges it uses to determine creditworthiness. And many federally insured or guaranteed home loan | more...