May 20, 2019

Vimeo Channel YouTube Channel

Articles Tagged With: Credit History

FHA Loan Credit Advice

FHA Loan Credit Advice

First-time home buyers and experienced home owners alike sometimes need help understanding what it takes to be approved for a major line of credit like an FHA home loan. What does it take to financially qualify for the mortgage and get on the road to home ownership? Buying real estate with an FHA mortgage means making a serious investment of time and money. And that usually begins with budgeting, saving, and working on your credit. Preparing your credit a year in advance or more is a very good way to prepare for the home loan application process. Why? Your lender needs to see at least 12 months of on-time payments on ALL financial responsibilities prior to your applying for the home loan. Anything less than this can hurt your chances | more...

 
Things That Keep You From Getting An FHA Mortgage

Things That Keep You From Getting An FHA Mortgage

What keeps some borrowers from getting an FHA home loan or refinance loan? In some cases the answers are easy, in others they are more complicated. Learn what some of the red flags are for lenders and prepare yourself to get the FHA home loan you need. Automatic Denial Of FHA Home Loans: When Does It Happen? FHA home loans are automatically denied for a variety of reasons. Borrowers with FICO scores lower than 500 are automatically denied, as are borrowers who have applied for a mortgage while they are in a bankruptcy that has not been discharged yet. U.S. citizenship is not required for an FHA home loan, but those who apply without legal standing of some kind (anyone in the country illegally) is automatically turned down for the | more...

 
FHA Loans For First-Time Borrowers

FHA Loans For First-Time Borrowers: Debt Ratios

One area that is just as important as FICO scores and credit reports to first-time borrowers? The amount of debt versus the amount of monthly income. This is known as a debt-to-income ratio or debt ratio for short; this is just as crucial for a borrower as their FICO scores. Many borrowers already know this; they have spoken to a lender or a housing counselor, or they have done their research already and fully understand that if you have too much outgoing debt and not enough monthly income, your home loan chances are in jeopardy. But what is not as well-known? The fact that there are actually TWO debt ratios the lender will look at. Yes, there are two calculations and if you don’t anticipate the second one you may | more...

 
FHA Home Loans: Things To Do, Things Not To Do

FHA Home Loans: Things To Do, Things Not To Do

FHA home loans, like all mortgages, represent a major investment for a borrower. There are things you should do in the FHA home loan process to get closer to loan approval, and there are things you should definitely NOT do as a new home buyer. Do you know what they are? FHA Loans: DO Work On Your Credit As Early As Possible Your FICO scores will determine the interest rate you are offered and the amount of the down payment required. It’s best to examine your credit report at least a year ahead of your loan application to make sure you have plenty of time to work on credit issues. FHA Home Loans: DO NOT Run Up More Debt Prior To Your Home Loan Opening new credit cards, adding more | more...

 
FHA Credit Score Eligibility: FICO Scores You Need To Qualify For A Loan

FHA Credit Score Eligibility: FICO Scores You Need To Qualify For A Loan

How low can your credit score go before you are not eligible for an FHA home loan? Borrowers get confused on this point but there is an easy way to remember what it takes to qualify for an FHA mortgage when it comes to the FICO score numbers. There are two requirements-that is what confuses many first-time home buyers. They hear that FHA home loan rules say one thing, and assume that is the final word on the matter. But it’s not. FHA loan rules state that borrowers with credit scores starting at 500 or better are technically eligible for an FHA home loan. Those with FICO scores between 500 and 579 are required by the FHA to make a 10% down payment. Those with FICO scores at 580 or | more...

 
Can I Buy A Home With An FHA Mortgage After Foreclosure?

Can I Buy A Home With An FHA Mortgage After Foreclosure?

After a major negative credit event like a foreclosure, some home owners assume they may never be able to get a lender to take them seriously for a home loan ever again. Is this true? At first glance, FHA home loan rules in HUD 4000.1 might lead a potential borrower to think that it is. “A Borrower is generally not eligible for a new FHA-insured Mortgage if the Borrower had a foreclosure or a DIL of foreclosure in the three-year period prior to the date of case number assignment.” The abberviation DIL stands for deed-in-lieu of foreclosure. Note that the above does NOT say the borrower can NEVER get a home loan again. There is a three-year waiting period required but it IS possible. And later in HUD 4000.1, we | more...

 
Home Flipping and FHA Loan Rules

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? 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. FHA Home Loan Credit Check Rules Your lender is required to pull your credit reports in order to approve or deny the mortgage. Your lender will review the following: Payment history Credit limits and how close the borrower is to those limits Overall patterns of credit use Date of the last late or missed payments where applicable FICO scores What Else The Lender Is Looking For Credit scores are not the only thing the lender is interest | more...

 
Home Flipping and FHA Loan Rules

How To Get A Lower Home Loan Interest Rate

Home loan interest rates are a tricky issue, and if you are working with a real estate agent to find your first home, knowing as much as you can about rates going into the home loan application process is a very good idea. How can you get a lower rate when shopping for a home? There are some strategies to consider but many of them involve starting as early as possible in the planning stages. Getting A Lower FHA Home Loan Interest Rate By Shopping Around As you would never buy a used car from the first person you meet selling one, it’s important to shop around for a home loan lender offering the most competitive interest rates and terms. If you are a first-time home buyer, shop around for | more...

 
FHA Loans After Bankruptcy

FHA Loan Qualifying Credit Scores

FICO scores are a big part of getting your home loan approved as a first time home buyer or repeat borrower alike. One of the first questions someone purchasing their first home with an FHA loan will ask is what FICO scores qualify for the mortgage. And that’s not surprising; FHA loan credit qualifications do specify a minimum FICO score for all borrowers. And believe it or not, it’s the same credit score ranges for both first-time borrowers and those who have purchased real estate before. The FICO score minimums for the lowest down payment are set by the FHA and HUD, with these minimums often being increased by participating lenders based on that financial institution’s standard. So what you read below about qualifying FICO scores is the baseline score | more...

 
What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

What You Should Know About FHA Home Loan Credit Checks As A First-Time Home Buyer

Before you get FHA home loan approval on that piece of real estate you have your eyes on, your mortgage loan application process will include a credit check. Your lender will need to determine your creditworthiness, and also verify your employment and income. Most borrowers expect this process and thanks to having other kinds of credit applications including credit cards, auto loans, and student loans, have a basic idea of what will happen. But not everyone expects that their initial credit check for the home loan they are applying for will NOT be the last one the lender does before the loan closes. You might not get the down-low on this from your real estate agent or your lender, but this is one of the “secret” things about the home | more...