Credit History and Score Requirements
For those interested in applying for an FHA loan, applicants are now required to have a minimum FICO score of 580 to qualify for the low down payment advantage, which is currently at around 3.5 percent.
If your credit score is below 580, however, you aren't necessarily excluded from FHA loan eligibility. Applicants with lower credit scores will have to put down a 10 percent down payment if they want to qualify for a loan.
So if you're planning to buy a house, and your credit score doesn't meet the minimum, you should weigh the advantages and disadvantages of putting down a larger down payment or using those funds to try and improve your credit score first.
By Stephen Webber Retired After 34 Years of Real Estate For First Time Home Buyers
Most importantly donâ€™t do anything until your loan officer looks it over with you. So many times people do what would seem like a good idea; pay off a past due or pay off a credit card and close the account to later discover they actually lowered their rating.
Loan officers work with credit continually and many times can suggest a notification or two and presto the rating is up. Maybe there is a late pay that didnâ€™t happen or maybe should have fallen of the report months earlier.
They have a very strong incentive. They canâ€™t make a loan unless the credit is acceptable so the experienced loan officers know their stuff.
An article that will serve you well is '#13 Consultation Interviewing Loan Officers' at Your Road Home.com. Also article #5 Your Credit and Financing Your Home.
Choose your loan officer before you allow anyone to fix or monitor your credit. Your loan type will dictate the required rating. Once you know exactly what needs to happen you can direct the requirements, establish a time line and plan your next step.
The shortest path to owning your home.
Donâ€™t let anything or anyone deter you from your goal of owning your home.
Best of Luck, Stephen Webber Retired After 34 Years of Real Estate For First Time Home Buyers
Here are Ten tips for repairing your credit history, raising score http://goo.gl/INE80 , Following these steps works! You might also want to review the Trulia Blog "I have bad credit and no savings. Can I get a home or am I stuck renting?" in the link below. Once you have read these, I suggest that you talk to a mortgage banker for a lender who is making loans to borrowers with middle credit scores of 600+ FICO. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
We have some great tips listed at the link below. You may also want to find a great mortgage broker that you trust - I can refer you to someone, or you may already know of someone. A good mortgage broker can often be very helpful in letting you know what you qualify for, and if you don't currently qualify - what steps you need to take. Please let me know if my team can be of further assistance.
Torri Jacobsen, Realtor
Military Homes of Charleston
Exit Realty Charleston Group
This is a pretty broad question. The first question for you is what is making your credit shot? It all depends on what is on there to answer how long it will take to "repair" it. If you have judgements, most likely they will need to be satisfied before you can get a loan. If it takes you more than "90 days" to do that than I don't see as how your credit will be fixed by then. Are there any repo's, foreclosures, collections? Is it just late pays? I don't see how anyone can tell you that your credit can be "clean" in a matter of a certain time without knowing what's on there and what resources you have to work with.
your best bet would be to get with a lender and have them run your credit. They will tell you exactly what you need to do and what is holding you back.
I would shy away from the quick fix credit repair companies. Remember if an item has the right to be on your report..it will be on your report. Even if someone can get it removed temporarily, it will come back. Do it the right way. Make your payments on time, Pay your balances down. Pay off your collection accounts and judgements.
I think it's a mistake to put such heavy stips on yourself such as "6-7 months" I can't think of such an emergency that would make someone NEED to buy a home in that time.
The very first step for you is to get you credit report in front of you and take inventory. I will tell you one of the biggest factors in lowering a credit score is a high balance on a credit card. For example:
$5000 Credit card limit
$4500 in charges
= low credit score
The way the banks look at it is...Credit is not being handled responsibly. It does not matter if you make the minimum payments on time it counts for 30% of your total score (See below)
I hope this helps!
Remax / Lakeland
It all depends on what is on the credit report and length of time . If less than two years old you will have little to no hope clear credit issues. If over 2 years old negative issues would be hope. However if issues are more than 5 years COULD be not to touch those files
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors