Lower Credit Score Requirements
It’s possible now to get approved for an FHA loan if your credit score is between 600 and 619. Most mainstream lenders have had the credit score limit of 620 for at least a couple years now. This is great news! Rates are still extremely low and combined with pricing there really isn’t a better time to buy. Of course, there are stipulations to obtaining a mortgage with the lower credit score. You’d have to inquire with a reputable mortgage lender to get all the details. Let me know if you have questions, I can direct you to a qualified, trustworthy, professional for help.
Short Sale vs. Foreclosure
Wondering if a short sale is right for you? This chart has all the advantages and disadvantages spelled out for you. More and more homeowners that are facing foreclosure are going the short sale route. Much less impact on your credit and ablity to purchase in years to come.
Credit Report Basics
I just read an article stating that “americans are clueless about their credit”. Because I recently took the time to understand my credit report, I thought I’d share with you what I learned. A “FICO” score stands for Fair Isaac Corporation who developed software to determine the “score” using a complex mathematical formula. FICO score is a number between 300 and 850 produced by the “BIG 3″ credit bureaus… Equifax, Experian, Trans Union. So how is your FICO score determined?
Payment History – 35%
Outstanding Debt – 30%
Length of Credit History – 15%
New Credit – 10%
Types of Credit Used – 10%
Very often when a client of mine talks with a lender they are surprised to find errors on their credit report. It’s a good idea to take the time to check and monitor your credit report because of this. Remember to watch out for companies that claim to clean up your credit for an upfront fee. According to the Fair Trade Commission, no one can remove accurate negative information from your credit report – it’s illegal. The only website to use to check your credit report is www.annualcreditreport.com.