Articles Tagged With: Credit Check

October 2, 2018

FHA Loan Applications And Your Credit Report

When you apply for an FHA mortgage, your lender is required to check your FICO scores and credit history. But do you know what the lender must gather to determine whether or not to approve your mortgage loan? This process is a mystery to some home buyers and knowing what’s involved can help you plan for your mortgage loan long before you ever contact a lender. FHA Loan Requirements For Checking Credit Scores And Credit History The rules that govern this process are found in HUD 4000.1, the FHA Single-Family Loan handbook. It instructs the lender to use a traditional credit report whenever possible-some borrowers may have little to no credit history and a non-traditional credit report may be needed. But in cases where the lender is able to obtain | more...

September 26, 2018

FHA Loans And Your Credit Report: Check Ahead Of Time

By Joe Wallace

It’s generally advised for borrowers to check their credit reports a year ahead of time before applying for a home loan. One of the reasons for the early start has to do with the amount of time it could take to dispute items on your report; outdated information, errors, evidence of stolen identity, etc. But when you are pulling your credit report, what should you be looking for? There are plenty of items you should compile a credit report checklist and include in that list. Check The Basics Before Applying For Your FHA Mortgage Or Refinance Loan The first thing to do when pulling your credit report is to make sure all of your vital information is accurate. Your name should be correctly spelled, your Social Security Number should be | more...

Rehab Refinance Loans, reverse mortgages

September 21, 2018

FHA Home Loan Credit Questions And Answers

By Joe Wallace

There are lots of questions about how the FHA home loan process works, but among the most common are on the subject of credit, and how you qualify for a home loan with your credit scores and credit history. Here are some of the most frequently asked questions about home loans and credit. What FICO Scores Are Able To Qualify For An FHA Home Loan? There are two standards; FHA loan minimum requirements and the lender’s individual FICO score rules. FHA minimums are NOT the same as your lender’s standards; the FHA FICO scores are the minimum required to be approved. FHA loan rules say borrowers with FICO scores between 500 and 579 technically qualify for an FHA mortgage, but at a higher down payment than those who qualify for | more...

August 30, 2018

FHA Refinance Loans: Is There A No-Credit Check Refi?

By Bruce Reichstein

Some borrowers need to know: is there an FHA refinance loan that has no credit check? This question is more common than you might think and the answer depends on several variables. FHA Refinance Loans That Require Credit Checks There are many FHA mortgage loans that require both a new credit check and a new appraisal. Cash-out refinance loans are in this category, as are FHA reverse mortgages also known as Home Equity Conversion Mortgages (FHA HECM). The lender is tasked with making sure the borrower can afford the new loan and that the borrower is an acceptable credit risk. After all, cash is going back to the borrower in the case of both an FHA reverse mortgage and an FHA Cash-Out Refinance loan and the financial institution will need | more...

August 28, 2018

Credit Mistakes People Make Before Applying For Home Loans

By Bruce Reichstein

There are some common credit mistakes home loan applicants make before filling out loan application paperwork that can hurt them later when it comes time for the lender to decide whether to approve the mortgage loan. Avoiding these mistakes can go a long way toward loan approval. If you are applying for an FHA mortgage in the next year, consider these issues carefully! FHA Home Loans Have A Down Payment Requirement: Start Preparing Early Your FICO scores will help determine whether you are eligible for maximum FHA loan financing and the lowest down payment. If you do not work on improving your credit scores over the course of the year leading up to your FHA loan application, you may find yourself unable to get the most advantageous rates and terms. | more...

FHA Home Loan Credit Score Requirements: FICO Scores And More

August 27, 2018

Four Questions To Ask About FHA Mortgage Loans

By Joe Wallace

If you are interested in buying a home with an FHA mortgage, there are four basic questions you should ask a participating lender when you shop around for the best terms and conditions for your loan. It pays to compare lenders, and it also pays to compare the requirements and costs of your FHA mortgage with conventional equivalents to see where the FHA mortgage will be an advantage to you. #4. How Much Down Payment Is Required Based On My FICO Scores And Credit History? Ask a loan officer to give you the down payment requirements for both a conventional loan and an FHA mortgage loan on the same property or price range. If you do not have a specific sale price in hand when you ask, be prepared for | more...

August 17, 2018

FHA Loans After Chapter 13 Bankruptcy

By Bruce Reichstein

FHA home loans are more forgiving where a borrower’s credit is concerned; while participating lender standards are also an important part of the loan approval process, the FHA loan program rules in HUD 4000.1 allow borrowers with lower credit scores and past credit issues a chance at loan approval. This is even true in the case of Chapter 13 bankruptcy. Some assume that filing for bankruptcy means that a new home loan is quite out of reach, but FHA loan rules say otherwise. Chapter 13 bankruptcy is described by some as a “wage earner’s plan” for repayment of debts to creditors. Installment payments may be made over a period of years. This type of bankruptcy may feature a cap on the amount of debt that can be addressed under the | more...

August 13, 2018

Who Needs Credit Repair Before Applying For An FHA Mortgage?

By Joe Wallace

Who needs credit repair before applying for an FHA mortgage? If you are worried about your ability to qualify for a home loan because of past financial issues, credit mistakes, or even identity theft, it’s important to begin reviewing your credit and working on raising your credit scores as early as possible before committing to a mortgage loan application. Don’t wait to start working on your credit, begin today! What Kind Of Credit Repair Is Needed? There are many different things you can do to work on your credit rating and credit history but what we NOT suggesting is that you pay a third party offering to “remove all negative credit information” from your credit report or other things that are not actually possible. The best way to begin working | more...

August 8, 2018

Need To Fix Your Credit Before Your FHA Home Loan?

By Joe Wallace

Do you need to work on your credit before applying for an FHA home loan? If you are worried that your FICO scores or credit history might not be good enough to be approved for a home loan, keep reading. Prepare For Your FHA Home Loan Application As Early As Possible One of the most important things you can do to start working on credit repair or just getting ready for the home loan in general is to start looking at your credit reports as early as possible. It will take time to improve a credit rating and credit history-do not delay! The earlier you start working on your credit issues, the better off you will be at loan application time. Work On Your Credit Yourself Yes, you can pay | more...

July 26, 2018

What To Do If Your Credit Score Isn’t Perfect But You Are Still Buying A Home

By Joe Wallace

Do you know what to do if your credit score isn’t perfect but you are still buying a home? There are some steps you can take that have nothing to do with paying a third party to try to fix your credit rating, or paying someone else to do things you should be doing for free where credit repair is needed. Start Reviewing Your Credit Rating Early In Your FHA Home Loan Process This means reviewing and working on your credit before you decide it’s time to fill out application paperwork for an FHA mortgage loan or FHA refinance loan. You need to know your credit scores long before you start house hunting. You can request free copies of your credit report (one per year from each of the major | more...