Articles Tagged With: Credit History

December 14, 2018

Late Payments Can Hurt Your Home Loan Chances

When you apply for any kind of credit including an FHA home loan, the lender will check your payment history to see what kind of patterns are evident. Are you a responsible borrower? The lender wants to see indications that you are one. A Full Year Of On-Time Payments In general it’s recommended that house hunters come to the FHA loan process with 12 months of on-time payments on all financial obligations. A late or missed payment can require the lender to find reasons to justify the home loan, including making a determination that late or missed payments are not likely to happen be an ongoing problem. Borrowers sometimes make certain assumptions about their credit history that simply are not true. Some believe that if they do not report certain | more...

December 5, 2018

FHA Home Loans For Families

By Bruce Reichstein

FHA home loans for families offer advantages that go beyond the comparatively lower interest rates than for conventional loans (borrower financial qualifications will help determine the actual rate the applicant is able to get from the participating FHA lender). Those advantages are important to remember when comparing FHA loans to conventional equivalents or USDA and VA mortgage loans. What kinds of advantages? They include the ability to be considered for a second FHA mortgage later down the line if job or family requirements have the borrowers thinking they might be outgrowing their home or need to relocate to be closer to a new job. FHA Mortgage Loans Allow Financing And Seller Assistance For Certain Closing Costs Borrowers who need very low out-of-pocket expenses up front will be glad to learn | more...

November 12, 2018

Build Your Dream Home: FHA One-Time Close Construction Mortgages

By Joe Wallace

FHA One-Time Close construction loans, also known as construction-to-permanent mortgages, are a way that borrowers who need a lower down payment and more flexible loan approval guidelines can apply for a home loan that allows the property to be built from scratch. One-Time Close loans, which are sometimes referred to as FHA OTC mortgages, require the borrower to qualify only once for both the construction portion and the mortgage loan. This type of FHA mortgage may vary more among participating lenders because of certain features of the loan including the type of property that can be built, and the loan approval process as it relates to getting construction permits for the project. Some Options Are Available With Some Lenders But Not Others: Shop Around! Your participating lender may not offer | more...

November 6, 2018

FHA Loan Approval And Your Credit Scores

By Joe Wallace

What do you need to know about FHA loan approval and your credit scores? There are some important factors that can help you in the planning stages for your new mortgage loan. Don’t go into the mortgage application process without being armed with this information-you’ll be glad you know before you sign. FHA Minimum FICO Scores And Your FHA Lender FHA minimum FICO score requirements are not necessarily the same as your lender’s requirements. FHA Loan rules establish a minimum for credit scores (580 or higher for maximum financing) but your lender may require higher scores. An average is between 640 and 700, with scores between 640 and 680 being common requirements for the lowest down payment. FICO Score Requirements May Vary Depending On The Type Of FHA Loan Your | more...

October 5, 2018

Five Credit Areas That Affect FHA Loan Approval

By Joe Wallace

There are many areas that can affect the lender’s decision to approve or deny an FHA home loan application. Do you know what these important issues mean and how they can affect millennial home buyers or anyone else examining their affordable housing needs? #5 FHA Home Loan Approval And Your FICO Scores Your FICO score may be well within the FHA minimums for loan approval or even maximum financing, but do you know what the participating FHA lender’s FICO score requirements might be above the FHA minimum? You may find that the FHA loan program’s minimum 580 FICO score for the lowest possible down payment is lower than the FHA lender’s requirements. Check with the lender to see what is required in this area for a better idea of what | more...

October 4, 2018

Are You Ready To Fill Out FHA Home Loan Paperwork?

By Bruce Reichstein

Are you ready to fill out FHA home loan paperwork and start the loan application process? Here are some important things you should think about before getting the forms and starting the loan. Get Ready For An FHA Mortgage Loan By Reducing Your Debt Ratios FHA home loans, like other mortgages, require the borrower to be able to realistically afford the mortgage. If you don’t know how much debt you have going out compared to how much income you have-hypothetical mortgage payments included-you aren’t ready to fill out home loan paperwork. You will need to know what the lender will see when examining your debts and income, and know how much of your income is taken up by your monthly financial obligations. Knowing Your FICO Scores Ahead Of Your FHA | more...

October 2, 2018

FHA Loan Applications And Your Credit Report

By Bruce Reichstein

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...

September 25, 2018

Five Steps To An FHA Home Loan

By Bruce Reichstein

Buying a new home is a process. Do you need an FHA mortgage to purchase the home you’ve been looking for? There are five things you can start doing now without financially obligating yourself to purchase; these steps will definitely help you get ready for your new home. #5: Determine How Much Loan You Can Afford Before You Apply For Your FHA Mortgage Figuring out how much home loan you can afford isn’t just about how much you can afford NOW, but also down the road in light of future pay raises, upward mobility at work, changes in salary or bonuses, etc. The debt to income ratio you have at the moment may be lower six months into the future-it’s a very good idea to look ahead when planning for | 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...