Articles Tagged With: Credit History

September 10, 2018

FHA Mortgage Refinance Checklist

If you are exploring your refinance loan options, FHA refi loans can help with cash out refinancing, rate-and-term refi, or even a refinance loan that lets you rehab or remodel your property. If you want a refinance loan, it’s a very good idea to assemble a checklist in the planning stages so you know where you need to focus to prepare for the new loan. There is more than one area to make checklists for including areas like your credit, your home ownership goals, and the plans you have for your refi loan. FHA Refinance Loan Checklists: Goals And Financial Plans A good checklist includes the reasons for your checklist items in the first place. Ask yourself why you want to refinance your mortgage-make a list of pros and cons | more...

September 5, 2018

Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

By Joe Wallace

Does it make more sense to rent a home or to purchase one and make a mortgage payment rather than a rent payment? A lot depends on the property values in your chosen housing market, the cost of renting in that area versus the cost of purchasing, and the borrower’s financial goals. Are you thinking of making the switch from being a renter to becoming a home owner? Some reports claim that rents have increased as much as 88% in certain markets over time, and some renters choose to put that money into a property they own rather than dealing with the issues of being a long-term renter. Is Buying A Home With An FHA Mortgage Instead Of Renting A Good Idea? The first thing needed to answer this question | 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...

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 16, 2018

FHA Loans And Bankruptcy: Chapter 7

By Joe Wallace

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...

August 15, 2018

FHA Home Loans And The Accuracy Of Your Credit Reports

By Joe Wallace

When you start planning for your FHA home loan and reviewing your credit reports, it’s entirely possible that you could find erroneous information in your reports. Sometimes the credit information for another person with a similar name could wind up accidentally being posted in your report, other times there may be inaccurate data in your credit history about the amount, frequency, or age of your credit account payments. How should a potential FHA borrower deal with these issues? HUD 4000.1 addresses some aspects of this issue, but not all the credit problems a borrower could experience when reviewing a credit report are covered by HUD and FHA home loan rules. HUD 4000.1, the FHA loan handbook, instructs the lender on how to proceed if the lender finds inaccuracy in debt | 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...

July 17, 2018

FHA Home Loans And Your Credit Report: Know Your Rights

By Bruce Reichstein

When you look for advice about getting approved for an FHA home loan, you will find that many encourage potential borrowers for FHA new purchase home loans and FHA cash out refinancing are urged to request a free annual credit report. Free credit reports are your legal right and you are entitled to one free credit report per year from each of the three major credit reporting agencies. Those agencies are TransUnion, Equifax, and Experian. But in addition to the right to a free annual credit report, did you know you have other rights under federal law that apply to your credit reports? All consumers in the United States have the legal right under federal law to contest inaccurate or incomplete information in your credit reports. This right is discussed | more...