Articles Tagged With: Credit History

November 13, 2024

FHA Loans and 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 in 2025? There’s an FHA loan for that. Do you want to build a house on your own land with an FHA construction loan in the new year? 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. However, on paper, FHA loan rules make no distinction between different loan types and the minimum FICO score needed to qualify for maximum | more...

FHA Home Loans And First Time Home Buyers

April 10, 2024

Check Your Credit Before You Apply For An FHA Mortgage

By Joe Wallace

FHA home loans have forgiving credit qualifying requirements compared to some conventional mortgages. But even with more lenient qualification standards, FHA borrowers must still financially qualify for a mortgage. This is done (in part) using the borrower’s FICO scores and credit history information. What can a borrower do to raise FICO scores and improve credit reports before applying for a new home loan? Research Your Options If you haven’t worked on your credit for a while, research the industry before you begin. Credit agencies, including Equifax, Experian, and TransUnion, offer updated consumer credit tools, credit scores, and credit report monitoring services. Did you know you can sign up for electronic credit alerts, credit report monitoring, and other online services through credit reporting agencies? That’s not all. Experian is one credit | more...

December 1, 2023

Home Loans And Your Credit Scores

By Joe Wallace

What can borrowers expect from an American economy trying which is STILL in the process of recovering from the negative financial effects of COVID-19? Some experts are currently talking about the minor gains in mortgage rates and interest rates falling overall but are quick to point out that those with FICO scores below the lender’s typical approval range are experiencing more costly loans. Some house hunters may find it harder to qualify even as rates seem to be cooling somewhat. And certain types of home loans such as cash-out refinances aren’t even on the table for some borrowers until rates cool off even more. What does all this mean for a borrower who isn’t even ready to get pre-qualified yet? The future promises to be unpredictable, financially speaking. We are | more...

October 24, 2023

Get A Free Credit Report Before Applying For An FHA Loan

By Joe Wallace

Are you considering an FHA mortgage, an FHA refinance loan, or even a reverse mortgage? It is essential to take the right amount of time to prepare for your FHA loan before filling out the application, and that means knowing what your credit report says long before you start the process. You want to know the contents of your credit report to ensure there is no identity theft, inaccurate information, or other problems. However, many borrowers don’t know how to get copies of their credit report. Free Credit Report From Major Credit Reporting Agencies All consumers are entitled to a free credit report every 12 months. This report is available from each of the three credit reporting agencies. Those agencies are Equifax, TransUnion, and Experian. The U.S. government’s Consumer Financial | 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...

May 1, 2023

How Important Is My Credit Score For An FHA Home Loan?

By Joe Wallace

How important is my credit score for an FHA home loan? It’s a question many ask, and it’s important to ask as early in the planning stages of your new home loan as possible. What do you need to know about credit scores and home loan approval? Credit Score Requirements Vary Depending On The Lender You will find that some lenders require certain credit score ranges while others have different standards. That’s a given-no two lenders are exactly the same. But did you know that even within a single financial institution there may be varying credit score requirements depending on the type of loan you seek? For example, FHA One-Time Close construction loans may require a different minimum credit score than an existing construction home loan. There are several reasons | more...

April 10, 2023

Buying A Home With A Lower Credit Score

By Bruce Reichstein

What can you do if you know your credit isn’t perfect but need to buy a home with an FHA mortgage? Actively Work On Your Credit The most effective way to change your credit rating and improve it is also the simplest. Make all payments on time for at least one year before your home loan application. This is the first step toward getting yourself ready to be approved for a mortgage loan. Review Your Credit Report If you don’t know what your credit report says, you are not ready for a home loan. It really is as simple as that. Learn How To Understand Your Credit Report A credit report is essentially a record of how you deal with your financial obligations. One of the leading credit reporting agencies, | 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 10, 2023

Credit Monitoring For First-Time Home Buyers

By Joe Wallace

Modern payment gateways, online selling and re-selling, and even digital currencies such as Bitcoin make for a more complicated relationship with credit and personal security; doing business digitally exposes consumers to more risk every day and from a variety of angles. Your account can be hacked individually, it can be compromised as part of a larger “harvest” of personal data and account numbers from a target company, etc. You may have had a credit card “skimmed” by a third-party device secretly installed in a gas pump payment swiper, or you could have been “shoulder surfed” at the ATM while entering your account information. Whatever the approach taken to this sort of crime, the threat to consumers is very real. Today’s news headlines tell us there are too many ways accounts | more...

December 5, 2022

FHA Home Loan Tips: What To Do, What Not To Do

By Joe Wallace

If you are new to the home-buying process, there are some definite things to do and things NOT to do when preparing for your mortgage. Some of these areas may seem obvious, but you might be surprised at the number of people who don’t give themselves enough planning and saving time ahead of the home loan process. FHA Loan Tips: Start Planning Early The moment you realize you want to purchase a home using an FHA mortgage, it is time to begin looking at your finances to see how a new budget can be made. This is because buying a home (no matter what kind of loan you are using) can be an expensive process. You want to start saving immediately for the down payment, but also for the costs | more...