Articles Tagged With: Credit History

April 29, 2020

Protect Your Credit With Free Weekly Credit Reports Until 2021

COVID-19 has created an economic situation that has forced millions into unemployment, and literally millions of home loans are now in forbearance. Those who act to protect their home loans early have the most options, but even for those late to the process, catching up on home loan payments, cutting back on new credit use, and other measures can help soften the economic blow in the long run. Coronavirus outbreak containment measures, while absolutely necessary, have put a massive strain on the economy. Now, more than ever, knowing your credit report is essential, especially if you have plans to buy a home in the near to mid-term future. Credit will likely be harder to come by in the coming months. borrowers who understand the importance of this will be pulling | more...

April 7, 2020

Protect Your Credit Score During The Coronavirus Outbreak

By Bruce Reichstein

The economic effects of the coronavirus / COVID-19 are being felt in every sector of the American economy, including the real estate market and the housing industry. With trillions of dollars in economic stimulus promised, but in various stages of delivery (or non-delivery as the case may be), Americans are still facing economic pain that may not have a short-term fix. In spite of that uncertainty, one thing remains clear. Consumer credit scores are going to have a lot more weight in the credit approval decision process in the days following the peak of the coronavirus emergency in America. It’s going to take time to begin a full move toward recovering from the crisis, but those who take steps now (and later) to protect their credit will fare better than | more...

April 3, 2020

Protect Your Credit During The COVID-19 Emergency

By Bruce Reichstein

What can you do to protect your credit during the coronavirus pandemic? Millions of Americans have applied for unemployment, foreclosure relief, and other measures, but what do consumers need to know about protecting credit during a time of dramatically reduced income? Check Your Credit There is plenty of time during a shelter-in-place order to apply for the free copies of your credit report you are entitled to each year. You can get a copy of your credit report for free from the government’s official source for Americans to get those free credit reports, AnnualCreditReport.com. Review your credit report for errors, identity theft, and outdated information. You must dispute any inaccurate information on your report to improve your credit scores (which may have been lowered as a result of that inaccurate | more...

March 31, 2020

FHA and HUD Change Loan Approval Requirements For Coronavirus

By Joe Wallace

The FHA and HUD have announced short-term alterations to appraisal and approval policies for single-family forward mortgages during the coronavirus outbreak. The changes, originally set to expire on May 17, 2020, address issues involving how appraisers review their properties, and how lenders must reverify borrower financial data before closing time. The changes to appraisal requirements (exterior-only inspections allowing the appraiser to work without being at risk of infection) were a big part of that, but not the whole substance of the policy changes. Reducing the risk to appraisers is one thing, but some of the measures are intended to streamline loan approval in a time of crisis. The FHA/HUD official site press release explains that certain measures were needed to, “maintain the stability” of the FHA Single-Family Home Loan program, | more...

March 27, 2020

Mortgage Loan Approval During The Coronavirus

By Joe Wallace

Buying a home is more complicated in the era of the coronavirus. Borrowers face social lockdowns, restricted movement, and fears of infection. And the economy is feeling the effects of this, making markets more volatile, interest rates fluctuating daily (far more than usual), and other issues. There is a lot of speculation about the future of the mortgage industry, not so much a question of how it will survive (it will), but more about how the industry will look going forward. How hard will it be to qualify for a home loan or any major line of credit. Will FHA borrowers of the future need to bring higher credit scores and more dependable-looking credit history to the loan application process? To quote the old Magic 8-Ball toy, “Signs point to | more...

February 20, 2020

FHA Home Loans For Borrowers With Thin Credit

By Bruce Reichstein

Some borrowers worry their FICO scores aren’t high enough to be approved for a home loan. Other borrowers worry that they don’t have a long enough credit history. There are ways you can raise your FICO score, increase your credit file, and make yourself a better credit risk for an FHA home loan, FHA rehab loan, or even a construction loan to build your own house on your own lot. If you apply for a home loan with thin credit non-traditional credit or no credit, your lender will ask for any evidence you have made recurring payments of some kind. That’s a good place to start when it’s time to review your credit. Your lender will want to see that for any financial obligation you do carry, that on-time payments | more...

February 19, 2020

For Borrowers Who Need Down Payment Help

By Joe Wallace

Buying a home is a major investment. And unless you are applying for a need-based loan such as a USDA mortgage, or if you are a qualifying veteran or military member applying for a VA mortgage, you will need to come up with a down payment. Borrowers who use conventional loans typically make larger down payments than those who use government-backed mortgage loans like FHA loans. Why? Because government-backed mortgages carry an advantage for the lender; they are guaranteed against loan default and foreclosure. Should the worst happen after the loan has closed, the government pays the lender a portion of the mortgage. It’s called a claim when this happens, and such claims are a risk of doing business in the mortgage market. Reduced risk for the lender is a | more...

January 10, 2020

FHA Loans And Your Credit Report

By Joe Wallace

Do you need to fix your credit? Do you need to fix your credit REPORT? Some of our most popular articles here involve what to do about bad credit issues ahead of a home loan application. The usual advice about paying on time and making sure you cut your outgoing debt as much as possible always apply, but there is an equally important step in getting your credit ready for a new loan; checking your credit report for accuracy. How To Get Your Free Credit Report From A Government-Approved Source To order the free credit report you are entitled to by law, visit annualcreditreport.com. You can also call 1-877-322-8228 or download and complete the Annual Credit Report Request Form and mail it in: Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA | more...

December 30, 2019

Where To Find An FHA Home Loan

By Joe Wallace

Where do you get an FHA home loan? The simplest answer is that you get one from a participating FHA lender. Not all banks or financial institutions support FHA home loans, and those that choose to do so must be vetted and approved by the government first. FHA Loans Are Offered By Participating Lenders As mentioned above, not all lenders participate in the FHA loan program–but did you know some are not permitted to participate, and some may not be certified by the FHA yet? Your search for a lender may seem daunting, but you can be matched with a participating lender online and do the initial loan screening online, too. You’ll need a variety of information including your estimated budget for the purchase, the desired term of the loan | more...

December 10, 2019

Higher FHA Home Loan Limits For 2020

By Bruce Reichstein

In 2019, the FHA and HUD announced higher loan limits, giving borrowers in most counties additional borrowing power to purchase, build, repair, or refinance an owner-occupied home. The uptick in FHA loan limits for 2019 led some to believe that it might be possible to see another year of higher loan limits, while others speculated that higher limits may not be a trend, but simply a typical course correction for home loan limits. Regardless of which camp 2020 borrowers were in back then, it seems there is another year to contemplate higher loan limits; the Department of Housing and Urban Development has released the FHA loan limits for 2020 and they are indeed higher in most areas. The HUD announcement discussing the overall increase in the FHA loan limit for | more...