Bad Credit Mortgage Loans A bad credit mortgage loan is a specialized mortgage loan designed for customers with credit issues. Bad credit mortgage loans are easier to qualify for than regular mortgage loans, because they have more flexible credit and income requirements. There are various types of bad credit mortgage loan programs, but most of them tend to be adjustable rate mortgage loans as … [Read more...]
How Bad Will Foreclosure Hurt Your Credit?
Ever wonder what would happen to your credit score if you had a 30 day late payment? Or are you deep in debt and wondering what to expect to happen if your credit score if you file for bankruptcy? Or maybe you are thinking about doing debt settlement as a way to possibly try to avoid bankruptcy? Up until recently, financial mistakes were somewhat of a mystery as to what impact they would have … [Read more...]
FHA Streamline Refinance: No Longer Easy?
The FHA Streamline refinance was originally created by HUD to "make it easy" for people who currently had FHA loans to be able to take advantage of lower interest rates when they were available without having to completely re-qualify for a new loan. Recently, many lenders now require credit scores of 620 if you want to do an FHA streamline refinance -- many, but not all. Here is an example … [Read more...]
The FHA Streamline Refinance: Do You Need A 620 Credit Score?
I have had more than one call recently from someone asking me a question similar to: "Do I need a 620 credit score for the FHA streamline program?" And I am happy to report that my answer a.) is accurate as of today and b.) is generally the answer they are looking for. I don't remember the last time that someone with a credit score of 740 called me and asked me "hey, do I need a 620 … [Read more...]
Does FHA Have Minimum FICO Score Requirements?
I hung up the phone with someone yesterday who asked me a few questions about FHA credit score requirements. The answers I gave to the questions she asked were just strange enough that I thought it might be helpful to share with others – because they may have these same questions. Question: Does FHA require that people have minimum credit score requirements? Answer: No, but investors do. And … [Read more...]
If You Have Bad Credit, Can You Still Get A Mortgage?
"If you have bad credit, can you still get a mortgage?" Generally speaking - no. Or maybe I should say "not until you fix your credit". Fix your credit? How does that work? The truth is, I don't really know (how is that for honesty?). But I can say that we work with a small handful of credit repair companies who help people remove inaccurate information from their credit reports … [Read more...]
FHA Mortgage Facts From FHA Outlook
From time to time, I am asked questions about the FHA program or FHA loans by various people such as: "How long does it take to fund an FHA loan?' "What is an average FICO score for someone who gets an FHA loan?" "Is the Hope for Homeowners program real?" "How come I have never heard of the 203k streamline program?" I am sure there are many places to get the answers to the above … [Read more...]
All About Credit Scores (Part 3 of 3)
In our final installment of All About Credit Scores, I thought I would compile some of the Frequently Asked Questions that I have heard in the recent past (that I could remember at least!). "Will paying off a collection account remove it from my credit report?" No. A paid collection account will remain on your credit report for seven years. If I have a collection, should I pay off the … [Read more...]
All About Credit Scores (Part 1 of 3)
Your credit score is a numerical representation of your statistical likelihood to repay credit that is extended to you. Scores range from 350 to 850. Your score is a "snapshot" of a specific moment and can change with new actions and the passage of time. Some things that can help you tip the scales in your favor include: Paying all of your bills on time or early. Even a 30 day late on a … [Read more...]