March 4, 2021

Vimeo Channel YouTube Channel

Articles Tagged With: Credit History

Buying A Home With A Lower Credit Score

FHA Loans: The Credit Check

FHA loan rules in HUD 4000.1 give instructions to the lender on how to establish an FHA borrower’s creditworthiness. FHA loan rules tend to be more flexible on credit issues than their conventional equivalents, but borrowers are still required to financially qualify. Are you looking for a condo loan, a mobile home loan? There’s an FHA loan for that. Do you want to build a house on your own land with an FHA construction loan? Some don’t realize the credit requirements in the FHA Lender’s Handbook are identical. For construction loans, borrowers should expect slightly higher credit requirements from the lender. But on paper, FHA loan rules make no distinction between different loan types and the minimum FICO score needed to qualify for maximum financing. One area that is also | more...

 
FHA loans

The Four Keys To Fixing Your Credit Before Your Home Loan

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 items in the “Don’t” category you should consider doing as early as possible before you apply 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 | more...

 
Bad Credit Home Loans

Bad Credit Home Loans

You’ll find a lot of information on the internet about bad credit home loans. Lists of bad credit-friendly lenders abound, but what do you need to know about these home loans and their alternatives? The first thing to remember is that bad credit is a potential barrier to new credit for a reason–your lender is required to justify the loan and make sure you are a good credit risk. And if your credit scores and credit history show that you haven’t been as reliable about making on-time payments and meeting your credit obligations? Your lender has two options. One is to deny you the loan. This is what usually happens in cases where the lender cannot justify approving your loan due to credit issues. Each lender has their own standards | more...

 
FHA Loan Limits: Where To Find Them

Getting A Mortgage With A Low Credit Score

Lots of potential home owners want to know if it is possible to get a mortgage with a low credit score. The answer to this kind of question may surprise you, but much depends on both FHA loan rules AND participating lender standards. What do you need to know to get started looking for a home loan with a low credit score? Start Working On Your Credit Today What some borrowers don’t understand is that there are things you can do in the planning stages of your home loan journey to improve credit scores and they are steps you do not have to pay someone else to do for you. One of the first of these is to pull your credit report from the three major credit reporting agencies Equifax, | more...

 
FHA Mortgage Loan Issues: "Identity Of Interest"

When You Apply For Your Mortgage Loan

When you apply for a home loan, whether it’s an FHA mortgage, conventional loan, or any other type of “forward mortgage” used to purchase, your lender is required to check your employment, income, and credit information to make sure you are a good credit risk. Some borrowers assume the lender is only interested in FICO scores–the numbers assigned to you based on your credit patterns, repayment history, and other variables. But that is NOT true–the score is important, yes. But it’s not the only factor that goes into loan approval decisions. And it’s key to understand the factors that go into determining your credit score as those factors are of interest to your lender. TransUnion, one of the “big three” credit reporting agencies, advises consumers that credit scores are determined | more...

 
FHA Refinance Loans And Current Interest Rates

Planning A Home Loan? Beware Holiday Credit Card Use

A borrower’s debt-to-income ratio is an important part of the financial qualifications your lender will look at when trying to decide to approve or deny your mortgage loan application. Some future borrowers don’t help themselves out in this regard during holiday time and as we approach November and December, those in the planning stages of their mortgage loan journey should beware of opening new credit or increasing credit card use on existing accounts. Why? Credit Card Use Spikes At Holiday Time Traditionally, American consumers tend to increase credit use during the holiday season and it never pays to ignore this factor–take your potential holiday spending into account when planning for a new mortgage loan. In some cases the amount of the credit card debt isn’t the problematic factor–timely payments is | more...

 
Getting Ready For Your Home Loan

Getting Ready For Your Home Loan

Are you considering your home loan options? FHA mortgage loans have more flexible credit requirements more consumer-friendly loan options, but even with more lenient credit guidelines (compared to some conventional mortgages) there are a number of areas to consider in the preparation stages of your loan. Some are already ahead of the curve when it comes to getting financially ready for a major loan application, others are really starting from ground zero. Do you know how ready you are to fill out that mortgage loan application? Having Enough Preparation Time Is Important It does cost money to buy a home–there are plenty of up-front costs including appraisals and the home inspection, etc. Financial experts advise taking at least a full year to save, budget, and even to research the new | more...

 
Buying A Home With An FHA Loan: What's Allowed, What's Now

Buying A Home With An FHA Loan: What’s Allowed, What’s Not

FHA mortgages are great for borrowers who want a lower down payment, no early repayment penalties, and more flexible home loan approval guidelines than some conventional counterparts. But the tradeoff comes where certain kinds of property and other loan details are concerned. If you want a home as opposed to an investment, an FHA mortgage is right for you. That includes those who want to build a home from the ground up instead of buying someone else’s property. Whether you want a traditional suburban home, a mobile home, a condominium, or even a duplex or multi-family unit, there’s an FHA mortgage for those purposes. But what about those who want to buy a house they can rent out to others, or those who want a mixed-use property that can handle | more...

 
What Credit Score Is Needed For An FHA Mortgage?

What Credit Score Is Needed For An FHA Mortgage?

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...

 
Is Your Credit Report Hurting Your Chances At Loan Approval?

Is Your Credit Report Hurting Your Chances At Loan Approval?

American consumers are entitled by law to a free credit report from each of the three credit reporting agencies. This is a valuable resource all potential home loan applicants should take advantage of as early as possible in the home loan planning stages. However, this is only a first step into a larger world. Credit monitoring is, in the age of hackers and rampant identity theft, a necessity for borrowers who want to make certain their credit will be enough to justify home loan approval. And credit monitoring is not the sort of thing you want to start late in the game–you’ll want to give yourself plenty of time to review your credit and work on it during the planning stages. How long should that planning be? Your home loan | more...