FHA Loan Tips for Improving Credit
Track Your Credit Score and Stay on Top of Problems
While FHA loans are known as a great service for people looking for help buying a house, applicants can make the process even easier if they take steps toward ensuring their credit history is in tip-top shape. The agency advises prospective home buyers to approach FHA loans with their best possible credit history to eliminate any potential risk of not qualifying.
Whether you're looking for a loan to mortgage a new house or to refinance a house you already own, it makes the most sense open up all your options with an optimal credit rating. The FHA recommends having a satisfactory payment history of at least one year before applying for a loan.
Credit Tips for Your FHA Loan
Here are some tips to help you on your way:
- Take a Close Look at Your Credit Reports
You don't know what could be hurting your credit score unless you actually check. Get your credit reports from the three national credit bureaus--Experian, Equifax and TransUnion--at no cost and comb them over for anything suspicious or questionable. - Dispute Inaccuracies
If you find errors on your credit report, notify the reporting bureau in writing so you have a record. Provide any additional records or evidence you have to support your dispute. - Find Professional Help
The FHA recommends applicants with credit problems get help from a Consumer Credit Counseling program. A credit counselor can help you get back on track. - Bankruptcy / Foreclosure
If you've suffered from a bankruptcy or foreclosure in the past few years, you might still be able to qualify for an FHA loan. Develop a satisfactory payment history, re-establish good credit and meet the other FHA requirements.
While your credit history is just one of the many factors that make up your eligibility for an FHA loan, it is no doubt one of the most important. Having a higher score not only helps you qualify, you can also benefit from the low 3.5 percent down payment on mortgage loans available to applicants with a FICO score over 580. FHA approved lenders don't take your credit history lightly, and neither should you.
Helpful Advice - Credit Scores and Loans
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FHA Loan Articles and Mortgage News
May 20, 2019 - In a tough economy borrowers worry about bankruptcy, foreclosure, and the effects such issues can have on the ability to borrow. So, what is the required waiting period for new FHA home loans after filing bankruptcy or foreclosure?
May 14, 2019 - Borrowers who want to apply for an FHA One-Time Close construction loan may, depending on the lender and circumstances, find that certain credit issues must be satisfactorily addressed as a condition of loan approval.
May 12, 2019 - Any property, tiny or not, that is not on a permanent foundation or will not be affixed to a permanent foundation as a condition of the loan will never be approved for an FHA mortgage loan. The reason for this is simple; if your home is on wheels, it cannot be classified as real estate.
May 11, 2019 - FHA cash-out refinance loans do require an appraisal, and borrowers who live in housing markets that are on the rise should check to see how far property values have increased since the last appraisal.
May 10, 2019 - First-time borrowers may wonder what steps they can take in the months leading up to a loan application that will help them get closer to loan approval. What does it take to get a lender to approve your mortgage loan application and put you on the road to owning your first real estate?
FHA.com Reviews
FHA.com is a one-stop resource for homebuyers who want to make the best decisions when it comes to their mortgage. With our detailed, mobile-friendly site, individuals can access information about different FHA products, the latest loan limits, and numerous other resources to make their homebuying experience easier. Take a look at some of the reviews from other FHA.com visitors!
